[Congressional Record (Bound Edition), Volume 146 (2000), Part 7]
[House]
[Pages 9170-9213]
[From the U.S. Government Publishing Office, www.gpo.gov]



  CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 
                                  2000

  Mr. COMBEST submitted the following conference report and statement 
on the bill (H.R. 2559) to amend the Federal Crop Insurance Act to 
strengthen the safety net for agricultural producers by providing 
greater access to more affordable risk management tools and improved 
protection from production and income loss, to improve the efficiency 
and integrity of the Federal crop insurance program, and for other 
purposes.

                  Conference Report (H. Rept. 106-639)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2559), to amend the Federal Crop Insurance Act to strengthen 
     the safety net for agricultural producers by providing 
     greater access to more affordable risk management tools and 
     improved protection from production and income loss, to 
     improve the efficiency and integrity of the Federal crop 
     insurance program, and for other purposes, having met, after 
     full and free conference, have agreed to recommend and do 
     recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agricultural Risk Protection Act of 2000''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

                    TITLE I--CROP INSURANCE COVERAGE

                  Subtitle A--Crop Insurance Coverage

Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Catastrophic risk protection.
Sec. 104. Administrative fee for additional coverage.
Sec. 105. Assigned yields and actual production history adjustments.
Sec. 106. Review and adjustment in rating methodologies.
Sec. 107. Quality adjustment.
Sec. 108. Double insurance and prevented planting.
Sec. 109. Noninsured crop disaster assistance program.

                Subtitle B--Improving Program Integrity

Sec. 121. Improving program compliance and integrity.
Sec. 122. Protection of confidential information.
Sec. 123. Good farming practices.
Sec. 124. Records and reporting.

                Subtitle C--Research and Pilot Programs

Sec. 131. Research and development.
Sec. 132. Pilot programs.
Sec. 133. Education and risk management assistance.
Sec. 134. Options pilot program.

                       Subtitle D--Administration

Sec. 141. Relation to other laws.
Sec. 142. Management of Corporation.
Sec. 143. Contracting for rating of plans of insurance.
Sec. 144. Electronic availability of crop insurance information.
Sec. 145. Adequate coverage for States.
Sec. 146. Submission of policies and materials to Board.
Sec. 147. Funding.
Sec. 148. Standard Reinsurance Agreement.

                       Subtitle E--Miscellaneous

Sec. 161. Limitation on revenue coverage for potatoes.
Sec. 162. Crop insurance coverage for cotton and rice.
Sec. 163. Indemnity payments for certain producers.
Sec. 164. Sense of Congress regarding the Federal crop insurance 
              program.
Sec. 165. Sense of Congress on rural America, including minority and 
              limited-resource farmers.

             Subtitle F--Effective Dates and Implementation

Sec. 171. Effective dates.
Sec. 172. Regulations.
Sec. 173. Savings clause.

                   TITLE II--AGRICULTURAL ASSISTANCE

                   Subtitle A--Market Loss Assistance

Sec. 201. Market loss assistance.
Sec. 202. Oilseeds.
Sec. 203. Specialty crops.
Sec. 204. Other commodities.
Sec. 205. Payments in lieu of loan deficiency payments.
Sec. 206. Expansion of producers eligible for loan deficiency payments.

                        Subtitle B--Conservation

Sec. 211. Conservation assistance.
Sec. 212. Condition on development of Little Darby National Wildlife 
              Refuge, Ohio.

                          Subtitle C--Research

Sec. 221. Carbon cycle research.
Sec. 222. Tobacco research for medicinal purposes.
Sec. 223. Research on soil science and forest health management.
Sec. 224. Research on waste streams from livestock production.
Sec. 225. Improved storage and management of livestock and poultry 
              waste.
Sec. 226. Ethanol research pilot plant.
Sec. 227. Bioinformatics Institute for Model Plant Species.

                   Subtitle D--Agricultural Marketing

Sec. 231. Value-added agricultural product market development grants.

                     Subtitle E--Nutrition Programs

Sec. 241. Calculation of minimum amount of commodities for school lunch 
              requirements.
Sec. 242. School lunch data.
Sec. 243. Child and adult care food program integrity.
Sec. 244. Adjustments to WIC program.

                       Subtitle F--Other Programs

Sec. 251. Authority to provide loan in connection with boll weevil 
              eradication.
Sec. 252. Animal disease control.
Sec. 253. Emergency loans for seed producers.
Sec. 254. Temporary suspension of authority to combine certain offices.
Sec. 255. Farm operating loan eligibility.
Sec. 256. Water systems for rural and Native villages in Alaska.
Sec. 257. Crop and pasture flood compensation program.
Sec. 258. Flood mitigation near Pierre, South Dakota.
Sec. 259. Restoration of eligibility for crop loss assistance.

                       Subtitle G--Administration

Sec. 261. Funding.
Sec. 262. Obligation period.

[[Page 9171]]

Sec. 263. Regulations.
Sec. 264. Paygo adjustment.
Sec. 265. Commodity Credit Corporation reimbursement.

        TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Definitions.
Sec. 304. Cooperation and coordination in biomass research and 
              development.
Sec. 305. Biomass Research and Development Board.
Sec. 306. Biomass Research and Development Technical Advisory 
              Committee.
Sec. 307. Biomass Research And Development Initiative.
Sec. 308. Administrative support and funds.
Sec. 309. Reports.
Sec. 310. Termination of authority.

                     TITLE IV--PLANT PROTECTION ACT

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. Definitions.

                      Subtitle A--Plant Protection

Sec. 411. Regulation of movement of plant pests.
Sec. 412. Regulation of movement of plants, plant products, biological 
              control organisms, noxious weeds, articles, and means of 
              conveyance.
Sec. 413. Notification and holding requirements upon arrival.
Sec. 414. General remedial measures for new plant pests and noxious 
              weeds.
Sec. 415. Declaration of extraordinary emergency and resulting 
              authorities.
Sec. 416. Recovery of compensation for unauthorized activities.
Sec. 417. Control of grasshoppers and mormon crickets.
Sec. 418. Certification for exports.

                 Subtitle B--Inspection and Enforcement

Sec. 421. Inspections, seizures, and warrants.
Sec. 422. Collection of information.
Sec. 423. Subpoena authority.
Sec. 424. Penalties for violation.
Sec. 425. Enforcement actions of attorney general.
Sec. 426. Court jurisdiction.

                  Subtitle C--Miscellaneous Provisions

Sec. 431. Cooperation.
Sec. 432. Buildings, land, people, claims, and agreements.
Sec. 433. Reimbursable agreements.
Sec. 434. Regulations and orders.
Sec. 435. Protection for mail handlers.
Sec. 436. Preemption.
Sec. 437. Severability.
Sec. 438. Repeal of superseded laws.

              Subtitle D--Authorization of Appropriations

Sec. 441. Authorization of appropriations.
Sec. 442. Transfer authority.

                      TITLE V--INSPECTION ANIMALS

Sec. 501. Civil penalty.
Sec. 502. Subpoena authority.
                        TITLE I--CROP INSURANCE
                  Subtitle A--Crop Insurance Coverage

     SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.

       (a) Expected Market Price.--Section 508(c) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking 
     paragraph (5) and inserting the following:
       ``(5) Expected market price.--
       ``(A) Establishment or approval.--For the purposes of this 
     title, the Corporation shall establish or approve the price 
     level (referred to in this title as the `expected market 
     price') of each agricultural commodity for which insurance is 
     offered.
       ``(B) General rule.--Except as otherwise provided in 
     subparagraph (C), the expected market price of an 
     agricultural commodity shall be not less than the projected 
     market price of the agricultural commodity, as determined by 
     the Corporation.
       ``(C) Other authorized approaches.--The expected market 
     price of an agricultural commodity--
       ``(i) may be based on the actual market price of the 
     agricultural commodity at the time of harvest, as determined 
     by the Corporation;
       ``(ii) in the case of revenue and other similar plans of 
     insurance, may be the actual market price of the agricultural 
     commodity, as determined by the Corporation;
       ``(iii) in the case of cost of production or similar plans 
     of insurance, shall be the projected cost of producing the 
     agricultural commodity, as determined by the Corporation; or
       ``(iv) in the case of other plans of insurance, may be an 
     appropriate amount, as determined by the Corporation.''.
       (b) Premium Amounts.--Section 508(d) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(d)) is amended--
       (1) in paragraph (2), by striking subparagraphs (B) and (C) 
     and inserting the following:
       ``(B) In the case of additional coverage equal to or 
     greater than 50 percent of the recorded or appraised average 
     yield indemnified at not greater than 100 percent of the 
     expected market price, or a comparable coverage for a policy 
     or plan of insurance that is not based on individual yield, 
     the amount of the premium shall--
       ``(i) be sufficient to cover anticipated losses and a 
     reasonable reserve; and
       ``(ii) include an amount for operating and administrative 
     expenses, as determined by the Corporation, on an industry-
     wide basis as a percentage of the amount of the premium used 
     to define loss ratio.''; and
       (2) by adding at the end the following:
       ``(3) Performance-based discount.--The Corporation may 
     provide a performance-based premium discount for a producer 
     of an agricultural commodity who has good insurance or 
     production experience relative to other producers of that 
     agricultural commodity in the same area, as determined by the 
     Corporation.''.
       (c) Payment Schedule.--Section 508(e)(2) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended--
       (1) in the matter preceding the subparagraphs, by striking 
     ``The amount'' and inserting ``Subject to paragraph (4), the 
     amount''; and
       (2) by striking subparagraphs (B) and (C) and inserting the 
     following:
       ``(B) In the case of additional coverage equal to or 
     greater than 50 percent, but less than 55 percent, of the 
     recorded or appraised average yield indemnified at not 
     greater than 100 percent of the expected market price, or a 
     comparable coverage for a policy or plan of insurance that is 
     not based on individual yield, the amount shall be equal to 
     the sum of--
       ``(i) 67 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(C) In the case of additional coverage equal to or 
     greater than 55 percent, but less than 65 percent, of the 
     recorded or appraised average yield indemnified at not 
     greater than 100 percent of the expected market price, or a 
     comparable coverage for a policy or plan of insurance that is 
     not based on individual yield, the amount shall be equal to 
     the sum of--
       ``(i) 64 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(D) In the case of additional coverage equal to or 
     greater than 65 percent, but less than 75 percent, of the 
     recorded or appraised average yield indemnified at not 
     greater than 100 percent of the expected market price, or a 
     comparable coverage for a policy or plan of insurance that is 
     not based on individual yield, the amount shall be equal to 
     the sum of--
       ``(i) 59 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(E) In the case of additional coverage equal to or 
     greater than 75 percent, but less than 80 percent, of the 
     recorded or appraised average yield indemnified at not 
     greater than 100 percent of the expected market price, or a 
     comparable coverage for a policy or plan of insurance that is 
     not based on individual yield, the amount shall be equal to 
     the sum of--
       ``(i) 55 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(F) In the case of additional coverage equal to or 
     greater than 80 percent, but less than 85 percent, of the 
     recorded or appraised average yield indemnified at not 
     greater than 100 percent of the expected market price, or a 
     comparable coverage for a policy or plan of insurance that is 
     not based on individual yield, the amount shall be equal to 
     the sum of--
       ``(i) 48 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.
       ``(G) Subject to subsection (c)(4), in the case of 
     additional coverage equal to or greater than 85 percent of 
     the recorded or appraised average yield indemnified at not 
     greater than 100 percent of the expected market price, or a 
     comparable coverage for a policy or plan of insurance that is 
     not based on individual yield, the amount shall be equal to 
     the sum of--
       ``(i) 38 percent of the amount of the premium established 
     under subsection (d)(2)(B)(i) for the coverage level 
     selected; and
       ``(ii) the amount determined under subsection (d)(2)(B)(ii) 
     for the coverage level selected to cover operating and 
     administrative expenses.''.
       (d) Temporary Prohibition on Continuous Coverage.--Section 
     508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
     is amended by striking paragraph (4) and inserting the 
     following:
       ``(4) Temporary prohibition on continuous coverage.--
     Notwithstanding paragraph (2), during each of the 2001 
     through 2005 reinsurance years, additional coverage under 
     subsection (c) shall be available only in 5 percent 
     increments beginning at 50 percent of the recorded or 
     appraised average yield.''.
       (e) Premium Payment Disclosure.--Section 508(e) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by 
     adding at the end the following:
       ``(5) Premium payment disclosure.--Each policy or plan of 
     insurance under this title shall prominently indicate the 
     dollar amount of the portion of the premium paid by the 
     Corporation.''.
       (f) Conforming Amendment.--Section 508(g)(2)(D) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is 
     amended by striking ``(as provided in subsection (e)(4))''.

     SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.

       (a) Premium Schedule.--Section 508(h) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(h)) is amended--

[[Page 9172]]

       (1) in paragraph (2), by striking the second sentence; and
       (2) by striking paragraph (5) and inserting the following:
       ``(5) Premium schedule.--
       ``(A) Payment by corporation.--In the case of a policy or 
     plan of insurance developed and approved under this 
     subsection or section 522, or conducted under section 523 
     (other than a policy or plan of insurance applicable to 
     livestock), the Corporation shall pay a portion of the 
     premium of the policy or plan of insurance that is equal to--
       ``(i) the percentage, specified in subsection (e) for a 
     similar level of coverage, of the total amount of the premium 
     used to define loss ratio; and
       ``(ii) an amount for administrative and operating expenses 
     determined in accordance with subsection (k)(4).
       ``(B) Transitional schedule.--Effective only during the 
     2001 reinsurance year, in the case of a policy or plan of 
     insurance developed and approved under this subsection or 
     section 522, or conducted under section 523 (other than a 
     policy or plan of insurance applicable to livestock), and 
     first approved by the Board after the date of enactment of 
     this subparagraph, the payment by the Corporation of a 
     portion of the premium of the policy may not exceed the 
     dollar amount that would otherwise be authorized under 
     subsection (e) (consistent with subsection (c)(5), as in 
     effect on the day before the date of enactment of this 
     subparagraph).''.
       (b) Reimbursement Rate.--Section 508(k)(4) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding 
     at the end the following:
       ``(C) Other reductions.--Beginning with the 2002 
     reinsurance year, in the case of a policy or plan of 
     insurance approved by the Board that was not reinsured during 
     the 1998 reinsurance year but, had it been reinsured, would 
     have received a reduced rate of reimbursement during the 1998 
     reinsurance year, the rate of reimbursement for 
     administrative and operating costs established for the policy 
     or plan of insurance shall take into account the factors used 
     to determine the rate of reimbursement for administrative and 
     operating costs during the 1998 reinsurance year, including 
     the expected difference in premium and actual administrative 
     and operating costs of the policy or plan of insurance 
     relative to an individual yield policy or plan of insurance 
     and other appropriate factors, as determined by the 
     Corporation.''.

     SEC. 103. CATASTROPHIC RISK PROTECTION.

       (a) Alternative Coverage.--Section 508(b) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking 
     paragraph (3) and inserting the following:
       ``(3) Alternative catastrophic coverage.--Beginning with 
     the 2001 crop year, the Corporation shall offer producers of 
     an agricultural commodity the option of selecting either of 
     the following:
       ``(A) The catastrophic risk protection coverage available 
     under paragraph (2)(A).
       ``(B) An alternative catastrophic risk protection coverage 
     that--
       ``(i) indemnifies the producer on an area yield and loss 
     basis if such a policy or plan of insurance is offered for 
     the agricultural commodity in the county in which the farm is 
     located;
       ``(ii) provides, on a uniform national basis, a higher 
     combination of yield and price protection than the coverage 
     available under paragraph (2)(A); and
       ``(iii) the Corporation determines is comparable to the 
     coverage available under paragraph (2)(A) for purposes of 
     subsection (e)(2)(A).''.
       (b) Administrative Fee.--
       (1) Revised fee.--Section 508(b)(5) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(b)(5)) is amended--
       (A) in subparagraph (A), by striking ``$50'' and inserting 
     ``$100'';
       (B) by striking subparagraph (B); and
       (C) in subparagraph (C), by striking ``amounts required 
     under subparagraphs (A) and (B)'' and inserting 
     ``administrative fee required by this paragraph''.
       (2) Conforming amendment.--Section 748 of the Agriculture, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1999 (as contained in section 
     101(a) of division A of Public Law 105-277; 7 U.S.C. 1508 
     note), is amended by striking ``$50'' and inserting ``$100''.
       (c) Payment of Administrative Fee on Behalf of Producers.--
     Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(b)(5)), as amended by subsection (b)(1)(B), is amended 
     by inserting after subparagraph (A) the following:
       ``(B) Payment on behalf of producers.--
       ``(i) Payment authorized.--If State law permits a licensing 
     fee or other payment to be paid by an insurance provider to a 
     cooperative association or trade association and rebated to a 
     producer with catastrophic risk protection or additional 
     coverage, a cooperative association or trade association 
     located in that State may pay, on behalf of a member of the 
     association in that State or a contiguous State who consents 
     to be insured under such an arrangement, all or a portion of 
     the administrative fee required by this paragraph for 
     catastrophic risk protection.
       ``(ii) Treatment of licensing fees.--A licensing fee or 
     other payment made by an insurance provider to the 
     cooperative association or trade association in connection 
     with the issuance of catastrophic risk protection or 
     additional coverage to members of the cooperative association 
     or trade association shall be subject to the laws regarding 
     rebates of the State in which the fee or other payment is 
     made.
       ``(iii) Selection of provider.--Nothing in this 
     subparagraph limits the option of a producer to select the 
     licensed insurance agent or other approved insurance provider 
     from whom the producer will purchase a policy or plan of 
     insurance or to refuse coverage for which a payment is 
     offered to be made under clause (i).
       ``(iv) Delivery of insurance.--A policy or plan of 
     insurance for which a payment is made under clause (i) shall 
     be delivered by a licensed insurance agent or other approved 
     insurance provider.
       ``(v) Additional coverage encouraged.--A cooperative 
     association or trade association, and any approved insurance 
     provider with whom a licensing fee or other arrangement under 
     this subparagraph is made, shall encourage producer members 
     to purchase appropriate levels of additional coverage in 
     order to meet the risk management needs of the member 
     producers.
       ``(vi) Report.--Not later than April 1, 2002, 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 evaluates--

       ``(I) the operation of this subparagraph; and
       ``(II) the impact of this subparagraph on participation in 
     the Federal crop insurance program, including the impact on 
     levels of coverage purchased.''.

       (d) Reimbursement Rate Change.--Section 508(b)(11) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended 
     by striking ``11 percent'' and inserting ``8 percent''.

     SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE.

       Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(c)) is amended by striking paragraph (10) and inserting 
     the following:
       ``(10) Administrative fee.--
       ``(A) Fee required.--If a producer elects to purchase 
     coverage for a crop at a level in excess of catastrophic risk 
     protection, the producer shall pay an administrative fee for 
     the additional coverage of $30 per crop per county.
       ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of 
     subsection (b)(5) shall apply with respect to the collection 
     and use of administrative fees under this paragraph.''.

     SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY 
                   ADJUSTMENTS.

       (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended--
       (1) by striking ``assigned a yield'' and inserting 
     ``assigned--
       ``(i) a yield'';
       (2) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(ii) a yield determined by the Corporation, in the case 
     of--

       ``(I) a producer that has not had a share of the production 
     of the insured crop for more than 2 crop years, as determined 
     by the Secretary;
       ``(II) a producer that produces an agricultural commodity 
     on land that has not been farmed by the producer; or
       ``(III) a producer that rotates a crop produced on a farm 
     to a crop that has not been produced on the farm.''.

       (b) Actual Production History Adjustments.--Section 508(g) 
     of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is 
     amended by adding at the end the following:
       ``(4) Adjustment in actual production history to establish 
     insurable yields.--
       ``(A) Application.--This paragraph shall apply whenever the 
     Corporation uses the actual production records of the 
     producer to establish the producer's actual production 
     history for an agricultural commodity for any of the 2001 and 
     subsequent crop years.
       ``(B) Election to use percentage of transitional yield.--
     If, for 1 or more of the crop years used to establish the 
     producer's actual production history of an agricultural 
     commodity, the producer's recorded or appraised yield of the 
     commodity was less than 60 percent of the applicable 
     transitional yield, as determined by the Corporation, the 
     Corporation shall, at the election of the producer--
       ``(i) exclude any of such recorded or appraised yield; and
       ``(ii) replace each excluded yield with a yield equal to 60 
     percent of the applicable transitional yield.
       ``(C) Premium adjustment.--In the case of a producer that 
     makes an election under subparagraph (B), the Corporation 
     shall adjust the premium to reflect the risk associated with 
     the adjustment made in the actual production history of the 
     producer.
       ``(5) Adjustment to reflect increased yields from 
     successful pest control efforts.--
       ``(A) Situations justifying adjustment.--The Corporation 
     shall develop a methodology for adjusting the actual 
     production history of a producer when each of the following 
     apply:
       ``(i) The producer's farm is located in an area where 
     systematic, area-wide efforts have been undertaken using 
     certain operations or measures, or the producer's farm is a 
     location at which certain operations or measures have been 
     undertaken, to detect, eradicate, suppress, or control, or at 
     least to prevent or retard the spread of, a plant disease or 
     plant pest, including a plant pest (as defined in section 102 
     of the Department of Agriculture Organic Act of 1944 (7 
     U.S.C. 147a)).
       ``(ii) The presence of the plant disease or plant pest has 
     been found to adversely affect the yield of the agricultural 
     commodity for which the producer is applying for insurance.
       ``(iii) The efforts described in clause (i) have been 
     effective.

[[Page 9173]]

       ``(B) Adjustment amount.--The amount by which the 
     Corporation adjusts the actual production history of a 
     producer of an agricultural commodity shall reflect the 
     degree to which the success of the systematic, area-wide 
     efforts described in subparagraph (A), on average, increases 
     the yield of the commodity on the producer's farm, as 
     determined by the Corporation.''.

     SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.

       Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(i)) is amended--
       (1) by striking ``The Corporation'' and inserting the 
     following:
       ``(1) In general.--The Corporation''; and
       (2) by adding at the end the following:
       ``(2) Review of rating methodologies.--To maximize 
     participation in the Federal crop insurance program and to 
     ensure equity for producers, the Corporation shall 
     periodically review the methodologies employed for rating 
     plans of insurance under this title consistent with section 
     507(c)(2).
       ``(3) Analysis of rating and loss history.--The Corporation 
     shall analyze the rating and loss history of approved 
     policies and plans of insurance for agricultural commodities 
     by area.
       ``(4) Premium adjustment.--If the Corporation makes a 
     determination that premium rates are excessive for an 
     agricultural commodity in an area relative to the 
     requirements of subsection (d)(2) for that area, then, for 
     the 2002 crop year (and as necessary thereafter), the 
     Corporation shall make appropriate adjustments in the premium 
     rates for that area for that agricultural commodity.''.

     SEC. 107. QUALITY ADJUSTMENT.

       Section 508 of the Federal Crop Insurance Act (7 U.S.C. 
     1508) is amended by striking subsection (m) and inserting the 
     following:
       ``(m) Quality Loss Adjustment Coverage.--
       ``(1) Effect of coverage.--If a policy or plan of insurance 
     offered under this title includes quality loss adjustment 
     coverage, the coverage shall provide for a reduction in the 
     quantity of production of the agricultural commodity 
     considered produced during a crop year, or a similar 
     adjustment, as a result of the agricultural commodity not 
     meeting the quality standards established in the policy or 
     plan of insurance.
       ``(2) Additional quality loss adjustment.--
       ``(A) Producer option.--Notwithstanding any other provision 
     of law, in addition to the quality loss adjustment coverage 
     available under paragraph (1), the Corporation shall offer 
     producers the option of purchasing quality loss adjustment 
     coverage on a basis that is smaller than a unit with respect 
     to an agricultural commodity that satisfies each of the 
     following:
       ``(i) The agricultural commodity is sold on an identity-
     preserved basis.
       ``(ii) All quality determinations are made solely by the 
     Federal agency designated to grade or classify the 
     agricultural commodity.
       ``(iii) All quality determinations are made in accordance 
     with standards published by the Federal agency in the Federal 
     Register.
       ``(iv) The discount schedules that reflect the reduction in 
     quality of the agricultural commodity are established by the 
     Secretary.
       ``(B) Basis for adjustment.--Under this paragraph, the 
     Corporation shall set the quality standards below which 
     quality losses will be paid based on the variability of the 
     grade of the agricultural commodity from the base quality for 
     the agricultural commodity.
       ``(3) Review of criteria and procedures.--The Corporation 
     shall contract with a qualified person to review the quality 
     loss adjustment procedures of the Corporation so that the 
     procedures more accurately reflect local quality discounts 
     that are applied to agricultural commodities insured under 
     this title. Based on the review, the Corporation shall make 
     adjustments in the procedures, taking into consideration the 
     actuarial soundness of the adjustment and the prevention of 
     fraud, waste, and abuse.''.

     SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.

       The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is 
     amended by inserting after section 508 (7 U.S.C. 1508) the 
     following:

     ``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.

       ``(a) Definitions.--In this section:
       ``(1) First crop.--The term `first crop' means the first 
     crop of the first agricultural commodity planted for harvest, 
     or prevented from being planted, on specific acreage during a 
     crop year and insured under this title.
       ``(2) Second crop.--The term `second crop' means a second 
     crop of the same agricultural commodity as the first crop, or 
     a crop of a different agricultural commodity following the 
     first crop, planted on the same acreage as the first crop for 
     harvest in the same crop year, except the term does not 
     include a replanted crop.
       ``(3) Replanted crop.--The term `replanted crop' means any 
     agricultural commodity replanted on the same acreage as the 
     first crop for harvest in the same crop year if the 
     replanting is required by the terms of the policy of 
     insurance covering the first crop.
       ``(b) Double Insurance.--
       ``(1) Options on loss to first crop.--Except as provided in 
     subsections (d) and (e), if a first crop insured under this 
     title in a crop year has a total or partial insurable loss, 
     the producer of the first crop may elect 1 of the following 
     options:
       ``(A) No second crop planted.--The producer may--
       ``(i) elect to not plant a second crop on the same acreage 
     for harvest in the same crop year; and
       ``(ii) collect an indemnity payment that is equal to 100 
     percent of the insurable loss for the first crop.
       ``(B) Second crop planted.--The producer may--
       ``(i) plant a second crop on the same acreage for harvest 
     in the same crop year; and
       ``(ii) collect an indemnity payment established by the 
     Corporation for the first crop, but not to exceed 35 percent 
     of the insurable loss for the first crop.
       ``(2) Effect of no loss to second crop.--If a producer 
     makes an election under paragraph (1)(B) and the producer 
     does not suffer an insurable loss to the second crop, the 
     producer may collect an indemnity payment for the first crop 
     that is equal to--
       ``(A) 100 percent of the insurable loss for the first crop; 
     less
       ``(B) the amount previously collected under paragraph 
     (1)(B)(ii).
       ``(3) Premium for first crop if second crop planted.--
       ``(A) Initial premium.--If a producer makes an election 
     under paragraph (1)(B), the producer shall be responsible for 
     a premium for the first crop that is commensurate with the 
     indemnity paid under paragraph (1)(B)(ii). The Corporation 
     shall adjust the total premium for the first crop to reflect 
     the reduced indemnity.
       ``(B) Effect of no loss to second crop.--If the producer 
     makes an election under paragraph (1)(B) and the producer 
     does not suffer an insurable loss to the second crop, the 
     producer shall be responsible for a premium for the first 
     crop that is equal to--
       ``(i) the full premium owed by the producer for the first 
     crop; less
       ``(ii) the amount of premium previously paid under 
     subparagraph (A).
       ``(c) Prevented Planting Coverage.--
       ``(1) Options on loss to first crop.--Except as provided in 
     subsections (d) and (e), if a first crop insured under this 
     title in a crop year is prevented from being planted, the 
     producer of the first crop may elect 1 of the following 
     options:
       ``(A) No second crop planted.--The producer may--
       ``(i) elect to not plant a second crop on the same acreage 
     for harvest in the same crop year; and
       ``(ii) subject to paragraph (4), collect an indemnity 
     payment that is equal to 100 percent of the prevented 
     planting guarantee for the acreage for the first crop.
       ``(B) Second crop planted.--The producer may--
       ``(i) plant a second crop on the same acreage for harvest 
     in the same crop year; and
       ``(ii) subject to paragraphs (4) and (5), collect an 
     indemnity payment established by the Corporation for the 
     first crop, but not to exceed 35 percent of the prevented 
     planting guarantee for the acreage for the first crop.
       ``(2) Premium for first crop if second planted.--If the 
     producer makes an election under paragraph (1)(B), the 
     producer shall pay a premium for the first crop that is 
     commensurate with the indemnity paid under paragraph 
     (1)(B)(ii). The Corporation shall adjust the total premium 
     for the first crop to reflect the reduced indemnity.
       ``(3) Effect on actual production history.--Except in the 
     case of double cropping described in subsection (d), if a 
     producer make an election under paragraph (1)(B) for a crop 
     year, the Corporation shall assign the producer a recorded 
     yield for that crop year for the first crop equal to 60 
     percent of the producer's actual production history for the 
     agricultural commodity involved, for purposes of determining 
     the producer's actual production history for subsequent crop 
     years.
       ``(4) Area conditions required for payment.--The 
     Corporation shall limit prevented planting payments for 
     producers to those situations in which other producers, in 
     the area where a first crop is prevented from being planted 
     is located, are also generally affected by the conditions 
     that prevented the first crop from being planted.
       ``(5) Planting date.--If a producer plants the second crop 
     before the latest planting date established by the 
     Corporation for the first crop, the Corporation shall not 
     make a prevented planting payment with regard to the first 
     crop.
       ``(d) Exception for Established Double Cropping 
     Practices.--A producer may receive full indemnity payments on 
     2 or more crops planted for harvest in the same crop year and 
     insured under this title if each of the following conditions 
     are met:
       ``(1) There is an established practice of planting 2 or 
     more crops for harvest in the same crop year in the area, as 
     determined by the Corporation.
       ``(2) An additional coverage policy or plan of insurance is 
     offered with respect to the agricultural commodities planted 
     on the same acreage for harvest in the same crop year in the 
     area.
       ``(3) The producer has a history of planting 2 or more 
     crops for harvest in the same crop year or the applicable 
     acreage has historically had 2 or more crops planted for 
     harvest in the same crop year.
       ``(4) The second or more crops are customarily planted 
     after the first crop for harvest on the same acreage in the 
     same year in the area.
       ``(e) Subsequent Crops.--Except in the case of double 
     cropping described in subsection (d), if a producer elects to 
     plant a crop (other than a replanted crop) subsequent to a 
     second crop on the same acreage as the first crop and second 
     crop for harvest in the same crop year, the producer shall 
     not be eligible for insurance under

[[Page 9174]]

     this title, or noninsured crop assistance under section 196 
     of the Agricultural Market Transition Act (7 U.S.C. 7333), 
     for the subsequent crop.''.

     SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

       (a) Operation and Administration of Program.--Section 
     196(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 
     7333(a)(2)) is amended by adding at the end the following:
       ``(C) Combination of similar types or varieties.--At the 
     option of the Secretary, all types or varieties of a crop or 
     commodity, described in subparagraphs (A) and (B), may be 
     considered to be a single eligible crop under this 
     section.''.
       (b) Timely Application.--Section 196(b)(1) of the 
     Agricultural Market Transition Act (7 U.S.C. 7333(b)(1)) is 
     amended in the second sentence by striking ``at such time as 
     the Secretary may require'' and inserting ``not later than 30 
     days before the beginning of the coverage period, as 
     determined by the Secretary''.
       (c) Records and Reports.--Section 196(b) of the 
     Agricultural Market Transition Act (7 U.S.C. 7333(b)) is 
     amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Records.--To be eligible for assistance under this 
     section, a producer shall provide annually to the Secretary 
     records of crop acreage, acreage yields, and production for 
     each crop, as required by the Secretary.''; and
       (2) in paragraph (3), by inserting ``annual'' after ``shall 
     provide''.
       (d) Loss Requirements.--Section 196 of the Agricultural 
     Market Transition Act (7 U.S.C. 7333) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Loss Requirements.--
       ``(1) Cause.--To be eligible for assistance under this 
     section, a producer of an eligible crop shall have suffered a 
     loss of a noninsured commodity as the result of a cause 
     described in subsection (a)(3).
       ``(2) Assistance.--On making a determination described in 
     subsection (a)(3), the Secretary shall provide assistance 
     under this section to producers of an eligible crop that have 
     suffered a loss as a result of the cause described in 
     subsection (a)(3).
       ``(3) Prevented planting.--Subject to paragraph (1), the 
     Secretary shall make a prevented planting noninsured crop 
     disaster assistance payment if the producer is prevented from 
     planting more than 35 percent of the acreage intended for the 
     eligible crop because of drought, flood, or other natural 
     disaster, as determined by the Secretary.
       ``(4) Area trigger.--The Secretary shall provide assistance 
     to individual producers without any requirement of an area 
     loss.''.
       (e) Service Fee.--Section 196 of the Agricultural Market 
     Transition Act (7 U.S.C. 7333) is amended by adding at the 
     end the following:
       ``(k) Service Fee.--
       ``(1) In general.--To be eligible to receive assistance for 
     an eligible crop for a crop year under this section, a 
     producer shall pay to the Secretary (at the time at which the 
     producer submits the application under subsection (b)(1)) a 
     service fee for the eligible crop in an amount that is equal 
     to the lesser of--
       ``(A) $100 per crop per county; or
       ``(B) $300 per producer per county, but not to exceed a 
     total of $900 per producer.
       ``(2) Waiver.--The Secretary shall waive the service fee 
     required under paragraph (1) in the case of a limited 
     resource farmer, as defined by the Secretary.
       ``(3) Use.--The Secretary shall deposit service fees 
     collected under this subsection in the Commodity Credit 
     Corporation Fund.''.
                Subtitle B--Improving Program Integrity

     SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.

       (a) Additional Methods of Ensuring Program Compliance and 
     Integrity.--Section 515 of the Federal Crop Insurance Act (7 
     U.S.C. 1514) is amended to read as follows:

     ``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.

       ``(a) Purpose.--
       ``(1) In general.--The purpose of this section is to 
     improve compliance with, and the integrity of, the Federal 
     crop insurance program.
       ``(2) Role of insurance providers.--The Corporation shall 
     work actively with approved insurance providers to address 
     program compliance and integrity issues as such issues 
     develop.
       ``(b) Notification of Compliance Problems.--
       ``(1) Notification of errors, omissions, and failures.--The 
     Corporation shall notify in writing an approved insurance 
     provider of any error, omission, or failure to follow 
     Corporation regulations or procedures for which the approved 
     insurance provider may be responsible and which may result in 
     a debt owed the Corporation.
       ``(2) Time for notification.--Notice under paragraph (1) 
     shall be given within 3 years after the end of the insurance 
     period during which the error, omission, or failure is 
     alleged to have occurred, except that this time limitation 
     shall not apply with respect to an error, omission, or 
     procedural violation that is willful or intentional.
       ``(3) Effect of failure to timely notify.--Except as 
     provided in paragraph (2), the failure to timely provide the 
     notice required under this subsection shall relieve the 
     approved insurance provider from the debt owed the 
     Corporation.
       ``(c) Reconciling Producer Information.--The Secretary 
     shall develop and implement a coordinated plan for the 
     Corporation and the Farm Service Agency to reconcile all 
     relevant information received by the Corporation or the Farm 
     Service Agency from a producer who obtains crop insurance 
     coverage under this title. Beginning with the 2001 crop year, 
     the Secretary shall require that the Corporation and the Farm 
     Service Agency reconcile such producer-derived information on 
     at least an annual basis in order to identify and address any 
     discrepancies.
       ``(d) Identification and Elimination of Fraud, Waste, and 
     Abuse.--
       ``(1) FSA monitoring program.--The Secretary shall develop 
     and implement a coordinated plan for the Farm Service Agency 
     to assist the Corporation in the ongoing monitoring of 
     programs carried out under this title, including--
       ``(A) at the request of the Corporation or, subject to 
     paragraph (2), on its own initiative if the Farm Service 
     Agency has reason to suspect the existence of program fraud, 
     waste, or abuse, conducting fact finding relative to 
     allegations of program fraud, waste, or abuse;
       ``(B) reporting to the Corporation, in writing in a timely 
     manner, the results of any fact finding conducted pursuant to 
     subparagraph (A), any allegation of fraud, waste, or abuse, 
     and any identified program vulnerabilities; and
       ``(C) assisting the Corporation and approved insurance 
     providers in auditing a statistically appropriate number of 
     claims made under any policy or plan of insurance under this 
     title.
       ``(2) FSA inquiry.--If, within 5 calendar days after 
     receiving a report submitted under paragraph (1)(B), the 
     Corporation does not provide a written response that 
     describes the intended actions of the Corporation, the Farm 
     Service Agency may conduct its own inquiry into the alleged 
     program fraud, waste, or abuse on approval from the State 
     director of the Farm Service Agency of the State in which the 
     alleged fraud, waste, or abuse occurred. If as a result of 
     the inquiry, the Farm Service Agency concludes further 
     investigation is warranted, but the Corporation declines to 
     proceed with the investigation, the Farm Service Agency may 
     refer the matter to the Inspector General of the Department 
     of Agriculture.
       ``(3) Use of field infrastructure.--The plan required by 
     paragraph (1) shall provide for the use of the field 
     infrastructure of the Farm Service Agency. The Secretary 
     shall ensure that relevant Farm Service Agency personnel are 
     appropriately trained for any responsibilities assigned to 
     the personnel under the plan. At a minimum, the personnel 
     shall receive the same level of training and pass the same 
     basic competency tests as required of loss adjusters of 
     approved insurance providers.
       ``(4) Maintenance of provider effort.--
       ``(A) In general.--The activities of the Farm Service 
     Agency under this subsection do not affect the responsibility 
     of approved insurance providers to conduct any audits of 
     claims or other program reviews required by the Corporation.
       ``(B) Notification of providers.--The Corporation shall 
     notify the appropriate approved insurance provider of a 
     report from the Farm Service Agency regarding alleged program 
     fraud, waste, or abuse, unless the provider is suspected to 
     be included in, or a party to, the alleged fraud, waste, or 
     abuse.
       ``(C) Response.--An approved insurance provider that 
     receives a notice under subparagraph (B) shall submit a 
     report to the Corporation, within an appropriate time period 
     determined by the Secretary, describing the actions taken by 
     the provider to investigate the allegations of program fraud, 
     waste, or abuse contained in the notice.
       ``(5) Corporation response to provider reports.--
       ``(A) Prompt response.--If an approved insurance provider 
     reports to the Corporation that the approved insurance 
     provider suspects intentional misrepresentation, fraud, 
     waste, or abuse, the Corporation shall make a determination 
     and provide, within 90 calendar days after receiving the 
     report, a written response that describes the intended 
     actions of the Corporation.
       ``(B) Cooperative effort.--The approved insurance provider 
     and the Corporation shall take coordinated action in any case 
     where misrepresentation, fraud, waste, or abuse is alleged.
       ``(C) Failure to timely respond.--If the Corporation fails 
     to respond as required by subparagraph (A), an approved 
     insurance provider may request the Farm Service Agency to 
     assist the provider in an inquiry into the alleged program 
     fraud, waste, or abuse.
       ``(e) Consultation with State FSA Committees.--The 
     Secretary shall establish procedures under which the 
     Corporation shall consult with the State committee of the 
     Farm Service Agency for a State with respect to policies, 
     plans of insurance, and material related to such policies or 
     plans of insurance (including applicable sales closing dates, 
     assigned yields, and transitional yields) offered in that 
     State under this title.
       ``(f) Detection of Disparate Performance.--
       ``(1) Covered activities.--The Secretary shall establish 
     procedures under which the Corporation will be able to 
     identify the following:
       ``(A) Any agent engaged in the sale of coverage offered 
     under this title where the loss claims associated with such 
     sales by the agent are equal to or greater than 150 percent 
     (or an appropriate percentage specified by the Corporation) 
     of the mean for all loss claims associated with such sales by 
     all other agents operating in the same area, as determined by 
     the Corporation.
       ``(B) Any person performing loss adjustment services 
     relative to coverage offered under this

[[Page 9175]]

     title where such loss adjustments performed by the person 
     result in accepted or denied claims equal to or greater than 
     150 percent (or an appropriate percentage specified by the 
     Corporation) of the mean for accepted or denied claims (as 
     applicable) for all other persons performing loss adjustment 
     services in the same area, as determined by the Corporation.
       ``(2) Review.--
       ``(A) Review required.--The Corporation shall conduct a 
     review of any agent identified pursuant to paragraph (1)(A), 
     and any person identified pursuant to paragraph (1)(B), to 
     determine whether the higher loss claims associated with the 
     agent or the higher number of accepted or denied claims (as 
     applicable) associated with the person are the result of 
     fraud, waste, or abuse.
       ``(B) Remedial action.--The Corporation shall take 
     appropriate remedial action with respect to any occurrence of 
     fraud, waste, or abuse identified in a review conducted under 
     this paragraph.
       ``(3) Oversight of agents and loss adjusters.--The 
     Corporation shall develop procedures to require an annual 
     review by an approved insurance provider of the performance 
     of each agent and loss adjuster used by the approved 
     insurance provider. The Corporation shall oversee the conduct 
     of annual reviews and may consult with an approved insurance 
     provider regarding any remedial action that is determined to 
     be necessary as a result of the annual review of an agent or 
     loss adjuster.
       ``(g) Submission of Information to Corporation to Support 
     Compliance Efforts.--
       ``(1) Types of information required.--The Secretary shall 
     establish procedures under which approved insurance providers 
     shall submit to the Corporation the following information 
     with respect to each policy or plan of insurance offered 
     under this title:
       ``(A) The name and identification number of the insured.
       ``(B) The agricultural commodity to be insured.
       ``(C) The elected coverage level, including the price 
     election, of the insured.
       ``(2) Time for submission.--The information required by 
     paragraph (1) with respect to a policy or plan of insurance 
     shall be submitted so as to ensure receipt by the Corporation 
     not later than the Saturday of the week containing the 
     calendar day that is 30 days after the applicable sales 
     closing date for the crop to be insured.
       ``(h) Sanctions for Program Noncompliance and Fraud.--
       ``(1) False information.--A producer, agent, loss adjuster, 
     approved insurance provider, or other person that willfully 
     and intentionally provides any false or inaccurate 
     information to the Corporation or to an approved insurance 
     provider with respect to a policy or plan of insurance under 
     this title may, after notice and an opportunity for a hearing 
     on the record, be subject to 1 or more of the sanctions 
     described in paragraph (3).
       ``(2) Compliance.--A person may, after notice and an 
     opportunity for a hearing on the record, be subject to 1 or 
     more of the sanctions described in paragraph (3) if the 
     person is a producer, agent, loss adjuster, approved 
     insurance provider, or other person that willfully and 
     intentionally fails to comply with a requirement of the 
     Corporation.
       ``(3) Authorized sanctions.--If the Secretary determines 
     that a person covered by this subsection has committed a 
     material violation under paragraph (1) or (2), the following 
     sanctions may be imposed:
       ``(A) Civil fines.--A civil fine may be imposed for each 
     violation in an amount not to exceed the greater of--
       ``(i) the amount of the pecuniary gain obtained as a result 
     of the false or inaccurate information provided or the 
     noncompliance with a requirement of this title; or
       ``(ii) $10,000.
       ``(B) Producer disqualification.--In the case of a 
     violation committed by a producer, the producer may be 
     disqualified for a period of up to 5 years from receiving any 
     monetary or nonmonetary benefit provided under each of the 
     following:
       ``(i) This title.
       ``(ii) The Agricultural Market Transition Act (7 U.S.C. 
     7201 et seq.), including the noninsured crop disaster 
     assistance program under section 196 of that Act (7 U.S.C. 
     7333).
       ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et 
     seq.).
       ``(iv) The Commodity Credit Corporation Charter Act (15 
     U.S.C. 714 et seq.).
       ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1281 et seq.).
       ``(vi) Title XII of the Food Security Act of 1985 (16 
     U.S.C. 3801 et seq.).
       ``(vii) The Consolidated Farm and Rural Development Act (7 
     U.S.C. 1921 et seq.).
       ``(viii) Any law that provides assistance to a producer of 
     an agricultural commodity affected by a crop loss or a 
     decline in the prices of agricultural commodities.
       ``(C) Disqualification of other persons.--In the case of a 
     violation committed by an agent, loss adjuster, approved 
     insurance provider, or other person (other than a producer), 
     the violator may be disqualified for a period of up to 5 
     years from participating in any program, or receiving any 
     benefit, under this title.
       ``(4) Assessment of sanction.--The Secretary shall consider 
     the gravity of the violation of the person covered by this 
     subsection in determining--
       ``(A) whether to impose a sanction under this subsection; 
     and
       ``(B) the type and amount of the sanction to be imposed.
       ``(5) Disclosure of sanctions.--Each policy or plan of 
     insurance under this title shall provide notice describing 
     the sanctions prescribed under paragraph (3) for willfully 
     and intentionally--
       ``(A) providing false or inaccurate information to the 
     Corporation or to an approved insurance provider; or
       ``(B) failing to comply with a requirement of the 
     Corporation.
       ``(6) Insurance fund.--Any funds collected under this 
     subsection shall be deposited into the insurance fund 
     established under section 516(c).
       ``(i) Annual Report on Program Compliance and Integrity 
     Efforts.--
       ``(1) Report required.--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 describing the operation of this 
     section during the preceding year and efforts undertaken by 
     the Secretary and the Corporation to carry out this section.
       ``(2) Information regarding fraud, waste, and abuse.--The 
     report shall identify specific occurrences of waste, fraud, 
     or abuse and contain an outline of actions that have been or 
     are being taken to eliminate the identified waste, fraud, or 
     abuse.
       ``(j) Information Management.--
       ``(1) Systems upgrades.--The Secretary shall upgrade the 
     information management systems of the Corporation used in the 
     administration and enforcement and this title. In upgrading 
     the systems, the Secretary shall ensure that new hardware and 
     software are compatible with the hardware and software used 
     by other agencies of the Department to maximize data sharing 
     and promote the purpose of this section.
       ``(2) Use of available information technologies.--The 
     Secretary shall use the information technologies known as 
     data mining and data warehousing and other available 
     information technologies to administer and enforce this 
     title.
       ``(3) Use of private sector.--The Secretary may enter into 
     contracts to use private sector expertise and technological 
     resources in implementing this subsection.
       ``(k) Funding.--
       ``(1) Available funds.--To carry out this section and 
     sections 502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the 
     Corporation may use, from amounts made available from the 
     insurance fund established under section 516(c), not more 
     than $23,000,000 during the period of fiscal years 2001 
     through 2005, of which not more than $9,000,000 shall be 
     available for fiscal year 2001.
       ``(2) Prohibition.--None of the funds made available under 
     paragraph (1) may be used to pay the salaries of employees of 
     the Corporation.''.
       (b) Conforming Amendment.--Section 506 of the Federal Crop 
     Insurance Act (7 U.S.C. 1506) is amended--
       (1) by striking subsection (q); and
       (2) by redesignating subsections (r) and (s) as subsections 
     (q) and (r), respectively.

     SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION.

       Section 502 of the Federal Crop Insurance Act (7 U.S.C. 
     1502) is amended by adding at the end the following:
       ``(c) Protection of Confidential Information.--
       ``(1) General prohibition against disclosure.--Except as 
     provided in paragraph (2), the Secretary, any other officer 
     or employee of the Department or an agency thereof, an 
     approved insurance provider and its employees and 
     contractors, and any other person may not disclose to the 
     public information furnished by a producer under this title.
       ``(2) Authorized disclosure.--
       ``(A) Disclosure in statistical or aggregate form.--
     Information described in paragraph (1) may be disclosed to 
     the public if the information has been transformed into a 
     statistical or aggregate form that does not allow the 
     identification of the person who supplied particular 
     information.
       ``(B) Consent of producer.--A producer may consent to the 
     disclosure of information described in paragraph (1). The 
     participation of the producer in, and the receipt of any 
     benefit by the producer under, this title or any other 
     program administered by the Secretary may not be conditioned 
     on the producer providing consent under this paragraph.
       ``(3) Violations; penalties.--Section 1770(c) of the Food 
     Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with 
     respect to the release of information collected in any manner 
     or for any purpose prohibited by this subsection.''.

     SEC. 123. GOOD FARMING PRACTICES.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) is amended by striking paragraph (3) and inserting 
     the following:
       ``(3) Exclusion of losses due to certain actions of 
     producer.--
       ``(A) Exclusions.--Insurance provided under this subsection 
     shall not cover losses due to--
       ``(i) the neglect or malfeasance of the producer;
       ``(ii) the failure of the producer to reseed to the same 
     crop in such areas and under such circumstances as it is 
     customary to reseed; or
       ``(iii) the failure of the producer to follow good farming 
     practices, including scientifically sound sustainable and 
     organic farming practices.
       ``(B) Good farming practices.--
       ``(i) Informal administrative process.--A producer shall 
     have the right to a review of a determination regarding good 
     farming practices

[[Page 9176]]

     made under subparagraph (A)(iii) in accordance with an 
     informal administrative process to be established by the 
     Corporation.
       ``(ii) Administrative review.--

       ``(I) No adverse decision.--The determination shall not be 
     considered an adverse decision for purposes of subtitle H of 
     the Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6991 et seq.).
       ``(II) Reversal or modification.--Except as provided in 
     clause (i), the determination may not be reversed or modified 
     as the result of a subsequent administrative review.

       ``(iii) Judicial review.--

       ``(I) Right to review.--A producer shall have the right to 
     judicial review of the determination without exhausting any 
     right to a review under clause (i).
       ``(II) Reversal or modification.--The determination may not 
     be reversed or modified as the result of judicial review 
     unless the determination is found to be arbitrary or 
     capricious.''.

     SEC. 124. RECORDS AND REPORTING.

       (a) Condition of Obtaining Coverage.--Section 508(f)(3) of 
     the Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)) is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A) provide annually records acceptable to the Secretary 
     regarding crop acreage, acreage yields, and production for 
     each agricultural commodity insured under this title or 
     accept a yield determined by the Corporation; and''.
       (b) Additional General Power.--Section 506 of the Federal 
     Crop Insurance Act (7 U.S.C. 1506) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Collection and Sharing of Information.--
       ``(1) Surveys and investigations.--The Corporation may 
     conduct surveys and investigations relating to crop 
     insurance, agriculture-related risks and losses, and other 
     issues related to carrying out this title.
       ``(2) Data collection.--The Corporation shall assemble data 
     for the purpose of establishing sound actuarial bases for 
     insurance on agricultural commodities.
       ``(3) Sharing of records.--Notwithstanding section 502(c), 
     records submitted in accordance with this title and section 
     196 of the Agricultural Market Transition Act (7 U.S.C. 7333) 
     shall be available to agencies and local offices of the 
     Department, appropriate State and Federal agencies and 
     divisions, and approved insurance providers for use in 
     carrying out this title, such section 196, and other 
     agricultural programs.''.
                Subtitle C--Research and Pilot Programs

     SEC. 131. RESEARCH AND DEVELOPMENT.

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

     ``SEC. 522. RESEARCH AND DEVELOPMENT.

       ``(a) Definition of Policy.--In this section, the term 
     `policy' means a policy, plan of insurance, provision of a 
     policy or plan of insurance, and related materials.
       ``(b) Reimbursement of Research, Development, and 
     Maintenance Costs.--
       ``(1) Research and development reimbursement.--The 
     Corporation shall provide a payment to reimburse an applicant 
     for research and development costs directly related to a 
     policy that is--
       ``(A) submitted to the Board and approved by the Board 
     under section 508(h) for reinsurance; and
       ``(B) if applicable, offered for sale to producers.
       ``(2) Existing plans.--The Corporation shall reimburse 
     costs associated with research and development costs directly 
     related to a policy that was approved by the Board prior to 
     the date of enactment of this section.
       ``(3) Marketability.--The Corporation shall approve a 
     reimbursement under paragraph (1) or (2) only after 
     determining that the policy is marketable based on a 
     reasonable marketing plan, as determined by the Board.
       ``(4) Maintenance payments.--
       ``(A) Requirement.--The Corporation shall reimburse 
     maintenance costs associated with the annual cost of 
     underwriting for a policy described in paragraphs (1) and 
     (2).
       ``(B) Duration.--Payments with respect to maintenance costs 
     may be provided for a period of not more than 4 reinsurance 
     years subsequent to Board approval for payment under this 
     subsection.
       ``(C) Options for maintenance.--On the expiration of the 4-
     year period described in subparagraph (B), the approved 
     insurance provider responsible for maintenance of the policy 
     may--
       ``(i) maintain the policy and charge a fee to approved 
     insurance providers that elect to sell the policy under this 
     subsection; or
       ``(ii) transfer responsibility for maintenance of the 
     policy to the Corporation.
       ``(D) Fee.--
       ``(i) Amount.--Subject to approval by the Board, the amount 
     of the fee that is payable by an approved insurance provider 
     that elects to sell the policy shall be an amount that is 
     determined by the approved insurance provider maintaining the 
     policy.
       ``(ii) Approval.--The Board shall approve the amount of a 
     fee determined under clause (i) for maintenance of the policy 
     unless the Board determines that the amount of the fee--

       ``(I) is unreasonable in relation to the maintenance costs 
     associated with the policy; or
       ``(II) unnecessarily inhibits the use of the policy.

       ``(5) Treatment of payment.--Payments made under this 
     subsection for a policy shall be considered as payment in 
     full by the Corporation for the research and development 
     conducted with regard to the policy and any property rights 
     to the policy.
       ``(6) Reimbursement amount.--The Corporation shall 
     determine the amount of the payment under this subsection for 
     an approved policy based on the complexity of the policy and 
     the size of the area in which the policy or material is 
     expected to be sold.
       ``(c) Research and Development Contracting Authority.--
       ``(1) Authority.--The Corporation may enter into contracts 
     to carry out research and development to--
       ``(A) increase participation in States in which the 
     Corporation determines that--
       ``(i) there is traditionally, and continues to be, a low 
     level of Federal crop insurance participation and 
     availability; and
       ``(ii) the State is underserved by the Federal crop 
     insurance program;
       ``(B) increase participation in areas that are underserved 
     by the Federal crop insurance program; and
       ``(C) increase participation by producers of underserved 
     agricultural commodities, including specialty crops.
       ``(2) Underserved agricultural commodities and areas.--
       ``(A) Authority.--The Corporation may enter into contracts 
     under procedures prescribed by the Corporation with qualified 
     persons to carry out research and development for policies 
     that promote the purposes of paragraph (1).
       ``(B) Consultation.--Before entering into a contract under 
     subparagraph (A), the Corporation shall consult with groups 
     representing producers of agricultural commodities that would 
     be served by the policies that are the subject of the 
     research and development.
       ``(3) Qualified persons.--A person with experience in crop 
     insurance or farm or ranch risk management (including a 
     college or university, an approved insurance provider, and a 
     trade or research organization), as determined by the 
     Corporation, shall be eligible to enter into a contract with 
     the Corporation under this subsection.
       ``(4) Types of contracts.--A contract under this subsection 
     may provide for research and development regarding new or 
     expanded policies, including policies based on adjusted gross 
     income, cost-of-production, quality losses, and an 
     intermediate base program with a higher coverage and cost 
     than catastrophic risk protection.
       ``(5) Use of resulting policies.--The Corporation may offer 
     any policy developed under this subsection that is approved 
     by the Board.
       ``(6) Research and development priorities.--The Corporation 
     shall establish as 1 of the highest research and development 
     priorities of the Corporation the development of a pasture, 
     range, and forage program.
       ``(7) Study of multiyear coverage.--
       ``(A) In general.--The Corporation shall contract with a 
     qualified person to conduct a study to determine whether 
     offering policies that provide coverage for multiple years 
     would reduce fraud, waste, and abuse by persons that 
     participate in the Federal crop insurance program.
       ``(B) Report.--Not later than 1 year after the date of 
     enactment of this section, the Corporation 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 
     conducted under subparagraph (A).
       ``(8) Contract for revenue coverage plans.--The Corporation 
     shall enter into a contract for research and development 
     regarding 1 or more revenue coverage plans that are designed 
     to enable producers to take maximum advantage of fluctuations 
     in market prices and thereby maximize revenue realized from 
     the sale of an agricultural commodity. A revenue coverage 
     plan may include the use of existing market instruments or 
     the development of new market instruments. Not later than 15 
     months after the date of the enactment of this section, the 
     Corporation 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 contract entered into under 
     this paragraph.
       ``(9) Contract for cost of production policy.--
       ``(A) Authority.--The Corporation shall enter into a 
     contract for research and development regarding a cost of 
     production policy.
       ``(B) Research and development.--The research and 
     development shall--
       ``(i) take into consideration the differences in the cost 
     of production on a county-by-county basis; and
       ``(ii) cover as many commodities as is practicable.
       ``(10) Relation to limitations.--A policy developed under 
     this subsection may be prepared without regard to the 
     limitations of this title, including--
       ``(A) the requirement concerning the levels of coverage and 
     rates; and
       ``(B) the requirement that the price level for each insured 
     agricultural commodity must equal the expected market price 
     for the agricultural commodity, as established by the Board.
       ``(d) Partnerships for Risk Management Development and 
     Implementation.--
       ``(1) Purpose.--The purpose of this subsection is to 
     authorize the Corporation to enter into partnerships with 
     public and private entities for the purpose of increasing the 
     availability of loss mitigation, financial, and other risk 
     management tools for producers, with a priority given

[[Page 9177]]

     to risk management tools for producers of agricultural 
     commodities covered by section 196 of the Agricultural Market 
     Transition Act (7 U.S.C. 7333), specialty crops, and 
     underserved agricultural commodities.
       ``(2) Authority.--The Corporation may enter into 
     partnerships with the Cooperative State Research, Education, 
     and Extension Service, the Agricultural Research Service, the 
     National Oceanic Atmospheric Administration, and other 
     appropriate public and private entities with demonstrated 
     capabilities in developing and implementing risk management 
     and marketing options for producers of specialty crops and 
     underserved agricultural commodities.
       ``(3) Objectives.--The Corporation may enter into a 
     partnership under paragraph (2)--
       ``(A) to enhance the notice and timeliness of notice of 
     weather conditions that could negatively affect crop yields, 
     quality, and final product use in order to allow producers to 
     take preventive actions to increase end product profitability 
     and marketability and to reduce the possibility of crop 
     insurance claims;
       ``(B) to develop a multifaceted approach to pest management 
     and fertilization to decrease inputs, decrease environmental 
     exposure, and increase application efficiency;
       ``(C) to develop or improve techniques for planning, 
     breeding, planting, growing, maintaining, harvesting, 
     storing, shipping, and marketing that will address quality 
     and quantity challenges associated with year-to-year and 
     regional variations;
       ``(D) to clarify labor requirements and assist producers in 
     complying with requirements to better meet the physically 
     intense and time-compressed planting, tending, and harvesting 
     requirements associated with the production of specialty 
     crops and underserved agricultural commodities;
       ``(E) to provide assistance to State foresters or 
     equivalent officials for the prescribed use of burning on 
     private forest land for the prevention, control, and 
     suppression of fire;
       ``(F) to provide producers with training and informational 
     opportunities so that the producers will be better able to 
     use financial management, crop insurance, marketing 
     contracts, and other existing and emerging risk management 
     tools; and
       ``(G) to develop other risk management tools to further 
     increase economic and production stability.
       ``(e) Funding.--
       ``(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 $10,000,000 for each of fiscal 
     years 2001 and 2002 and not more than $15,000,000 for fiscal 
     year 2003 and each subsequent fiscal year.
       ``(2) Contracting.--
       ``(A) Authority.--Of the amounts made available from the 
     insurance fund established under section 516(c), the 
     Corporation may use to carry out contracting and partnerships 
     under subsections (c) and (d) not more than $20,000,000 for 
     each of fiscal years 2001 through 2003 and not more than 
     $25,000,000 for fiscal year 2004 and each subsequent fiscal 
     year.
       ``(B) Underserved states.--Of the amount made available 
     under subparagraph (A) for a fiscal year, the Corporation 
     shall use not more than $5,000,000 for the fiscal year to 
     carry out contracting for research and development to carry 
     out the purpose described in subsection (c)(1)(A).
       ``(3) Unused funding.--If the Corporation determines that 
     the amount available to provide either reimbursement payments 
     or contract payments under this section for a fiscal year is 
     not needed for such purposes, the Corporation may use the 
     excess amount to carry out another function authorized under 
     this section.
       ``(4) Prohibited research and development by corporation.--
       ``(A) New policies.--Notwithstanding subsection (d), on and 
     after October 1, 2000, the Corporation shall not conduct 
     research and development for any new policy for an 
     agricultural commodity offered under this title.
       ``(B) Existing policies.--Any policy developed by the 
     Corporation under this title before that date may continue to 
     be offered for sale to producers.''.

     SEC. 132. PILOT PROGRAMS.

       (a) Authority.--The Federal Crop Insurance Act (7 U.S.C. 
     1501 et seq.), as amended by section 131, is amended by 
     adding at the end the following:

     ``SEC. 523. PILOT PROGRAMS.

       ``(a) General Provisions.--
       ``(1) Authority.--Except as otherwise provided in this 
     section, the Corporation may conduct a pilot program 
     submitted to and approved by the Board under section 508(h), 
     or that is developed under subsection (b) or section 522, to 
     evaluate whether a proposal or new risk management tool 
     tested by the pilot program is suitable for the marketplace 
     and addresses the needs of producers of agricultural 
     commodities.
       ``(2) Private coverage.--Under this section, the 
     Corporation shall not conduct any pilot program that provides 
     insurance protection against a risk if insurance protection 
     against the risk is generally available from private 
     companies.
       ``(3) Covered activities.--The pilot programs described in 
     paragraph (1) may include pilot programs providing insurance 
     protection against losses involving--
       ``(A) reduced forage on rangeland caused by drought or 
     insect infestation;
       ``(B) livestock poisoning and disease;
       ``(C) destruction of bees due to the use of pesticides;
       ``(D) unique special risks related to fruits, nuts, 
     vegetables, and specialty crops in general, aquacultural 
     species, and forest industry needs (including appreciation);
       ``(E) after October 1, 2001, wild salmon, except that--
       ``(i) any pilot program with regard to wild salmon may be 
     carried out without regard to the limitations of this title; 
     and
       ``(ii) the Corporation shall conduct all wild salmon 
     programs under this title so that, to the maximum extent 
     practicable, all costs associated with conducting the 
     programs are not expected to exceed $1,000,000 for fiscal 
     year 2002 and each subsequent fiscal year.
       ``(4) Scope of pilot programs.--The Corporation may--
       ``(A) approve a pilot program under this section to be 
     conducted on a regional, State, or national basis after 
     considering the interests of affected producers and the 
     interests of, and risks to, the Corporation;
       ``(B) operate the pilot program, including any 
     modifications of the pilot program, for a period of up to 4 
     years;
       ``(C) extend the time period for the pilot program for 
     additional periods, as determined appropriate by the 
     Corporation; and
       ``(D) provide pilot programs that would allow producers--
       ``(i) to receive a reduced premium for using whole farm 
     units or single crop units of insurance; and
       ``(ii) to cross State and county boundaries to form 
     insurable units.
       ``(5) Evaluation.--
       ``(A) Requirement.--After the completion of any pilot 
     program under this section, the Corporation shall evaluate 
     the pilot program and submit to the Committee on Agriculture 
     of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     on the operations of the pilot program.
       ``(B) Evaluation and recommendations.--The report shall 
     include an evaluation by the Corporation of the pilot program 
     and the recommendations of the Corporation with respect to 
     implementing the program on a national basis.
       ``(b) Livestock Pilot Programs.--
       ``(1) Definition of livestock.--In this subsection, the 
     term `livestock' includes, but is not limited to, cattle, 
     sheep, swine, goats, and poultry.
       ``(2) Programs required.--Subject to paragraph (7), the 
     Corporation shall conduct 2 or more pilot programs to 
     evaluate the effectiveness of risk management tools for 
     livestock producers, including the use of futures and options 
     contracts and policies and plans of insurance that protect 
     the interests of livestock producers and that provide--
       ``(A) livestock producers with reasonable protection from 
     the financial risks of price or income fluctuations inherent 
     in the production and marketing of livestock; or
       ``(B) protection for production losses.
       ``(3) Purpose of programs.--To the maximum extent 
     practicable, the Corporation shall evaluate the greatest 
     number and variety of pilot programs described in paragraph 
     (2) to determine which of the offered risk management tools 
     are best suited to protect livestock producers from the 
     financial risks associated with the production and marketing 
     of livestock.
       ``(4) Timing.--The Corporation shall begin conducting 
     livestock pilot programs under this subsection during fiscal 
     year 2001.
       ``(5) Relation to other limitations.--Any policy or plan of 
     insurance offered under this subsection may be prepared 
     without regard to the limitations of this title.
       ``(6) Assistance.--As part of a pilot program under this 
     subsection, the Corporation may provide reinsurance for 
     policies or plans of insurance and subsidize the purchase of 
     futures and options contracts or policies and plans of 
     insurance offered under the pilot program.
       ``(7) Private insurance.--No action may be undertaken with 
     respect to a risk under this subsection if the Corporation 
     determines that insurance protection for livestock producers 
     against the risk is generally available from private 
     companies.
       ``(8) Location.--The Corporation shall conduct the 
     livestock pilot programs under this subsection in a number of 
     counties that is determined by the Corporation to be adequate 
     to provide a comprehensive evaluation of the feasibility, 
     effectiveness, and demand among producers for the risk 
     management tools evaluated in the pilot programs.
       ``(9) Eligible producers.--Any producer of a type of 
     livestock covered by a pilot program under this subsection 
     that owns or operates a farm or ranch in a county selected as 
     a location for that pilot program shall be eligible to 
     participate in that pilot program.
       ``(10) Limitation on expenditures.--The Corporation shall 
     conduct all livestock programs under this title so that, to 
     the maximum extent practicable, all costs associated with 
     conducting the livestock programs (other than research and 
     development costs covered by section 522) are not expected to 
     exceed the following:
       ``(A) $10,000,000 for each of fiscal years 2001 and 2002.
       ``(B) $15,000,000 for fiscal year 2003.
       ``(C) $20,000,000 for fiscal year 2004 and each subsequent 
     fiscal year.
       ``(c) Revenue Insurance Pilot Program.--
       ``(1) In general.--Subject to section 522(e)(4), the 
     Secretary shall carry out a pilot program in a limited number 
     of counties, as determined by the Secretary, for crop years 
     1997 through 2001, under which a producer of wheat, feed 
     grains, soybeans, or such other commodity as the Secretary 
     considers appropriate may elect to receive

[[Page 9178]]

     insurance against loss of revenue, as determined by the 
     Secretary.
       ``(2) Administration.--Revenue insurance under this 
     subsection shall--
       ``(A) be offered through reinsurance arrangements with 
     private insurance companies;
       ``(B) offer at least a minimum level of coverage that is an 
     alternative to catastrophic crop insurance;
       ``(C) be actuarially sound; and
       ``(D) require the payment of premiums and administrative 
     fees by an insured producer.
       ``(d) Premium Rate Reduction Pilot Program.--
       ``(1) Purpose.--The purpose of the pilot program 
     established under this subsection is to determine whether 
     approved insurance providers will compete to market policies 
     or plans of insurance with reduced rates of premium, in a 
     manner that maintains the financial soundness of approved 
     insurance providers and is consistent with the integrity of 
     the Federal crop insurance program.
       ``(2) Establishment.--
       ``(A) In general.--Beginning with the 2002 crop year, the 
     Corporation shall establish a pilot program under which 
     approved insurance providers may propose for approval by the 
     Board policies or plans of insurance with reduced rates of 
     premium--
       ``(i) for 1 or more agricultural commodities; and
       ``(ii) within a limited geographic area, as proposed by the 
     approved insurance provider and approved by the Board.
       ``(B) Determination by board.--The Board shall approve a 
     policy or plan of insurance proposed under this subsection 
     that involves a premium reduction if the Board determines 
     that--
       ``(i) the interests of producers are adequately protected 
     within the pilot area;
       ``(ii) rates of premium are actuarially appropriate, as 
     determined by the Board;
       ``(iii) the size of the proposed pilot area is adequate;
       ``(iv) the proposed policy or plan of insurance would not 
     unfairly discriminate among producers within the proposed 
     pilot area;
       ``(v) if the proposed policy or plan of insurance were 
     available in a geographic area larger than the proposed pilot 
     area, the proposed policy or plan of insurance would--

       ``(I) not have a significant adverse impact on the crop 
     insurance delivery system;
       ``(II) not result in a reduction of program integrity;
       ``(III) be actuarially appropriate; and
       ``(IV) not place an additional financial burden on the 
     Federal Government; and

       ``(vi) the proposed policy or plan of insurance meets other 
     requirements of this title determined appropriate by the 
     Board.
       ``(C) Time limitations and procedures.--The time 
     limitations and procedures of the Board established under 
     section 508(h) shall apply to a proposal submitted under this 
     subsection.''.
       (b) Conforming Amendments.--Section 518 of the Federal Crop 
     Insurance Act (7 U.S.C. 1518) is amended--
       (1) by striking ``livestock and'' after ``commodity, 
     excluding''; and
       (2) by striking ``under subsection (a) or (m) of section 
     508 of this title''.

     SEC. 133. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

       The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), as 
     amended by section 132(a), is amended by adding at the end 
     the following:

     ``SEC. 524. EDUCATION AND RISK MANAGEMENT ASSISTANCE.

       ``(a) Education Assistance.--
       ``(1) In general.--Subject to the amounts made available 
     under paragraph (4)--
       ``(A) the Corporation shall carry out the program 
     established under paragraph (2); and
       ``(B) the Secretary, acting through the Cooperative State 
     Research, Education, and Extension Service, shall carry out 
     the program established under paragraph (3).
       ``(2) Education and information.--The Corporation shall 
     establish a program under which crop insurance education and 
     information is provided to producers in States in which (as 
     determined by the Secretary)--
       ``(A) there is traditionally, and continues to be, a low 
     level of Federal crop insurance participation and 
     availability; and
       ``(B) producers are underserved by the Federal crop 
     insurance program.
       ``(3) Partnerships for risk management education.--
       ``(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, cooperative extension services, and colleges 
     or universities), as determined by the Secretary, for the 
     purpose of educating agricultural producers 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.
       ``(B) Basis for grants.--A grant under this paragraph shall 
     be awarded on the basis of merit and shall be subject to peer 
     or merit review.
       ``(C) Obligation period.--Funds for a grant under this 
     paragraph shall be available to the Secretary for obligation 
     for a 2-year period.
       ``(D) Administrative costs.--The Secretary may use not more 
     than 4 percent of the funds made available for grants under 
     this paragraph for administrative costs incurred by the 
     Secretary in carrying out this paragraph.
       ``(4) Funding.--From the insurance fund established under 
     section 516(c), there is transferred--
       ``(A) for the education and information program established 
     under paragraph (2), $5,000,000 for fiscal year 2001 and each 
     subsequent fiscal year; and
       ``(B) for the partnerships for risk management education 
     program established under paragraph (3), $5,000,000 for 
     fiscal year 2001 and each subsequent fiscal year.
       ``(b) Agricultural Management Assistance.--
       ``(1) Authority.--The Secretary shall provide cost share 
     assistance to producers, in a manner determined by the 
     Secretary, in not less than 10, nor more than 15, States in 
     which participation in the Federal crop insurance program is 
     historically low, as determined by the Secretary.
       ``(2) Uses.--A producer may use cost share assistance 
     provided under this subsection to--
       ``(A) construct or improve--
       ``(i) watershed management structures; or
       ``(ii) irrigation structures;
       ``(B) plant trees to form windbreaks or to improve water 
     quality;
       ``(C) mitigate financial risk through production 
     diversification or resource conservation practices, 
     including--
       ``(i) soil erosion control;
       ``(ii) integrated pest management; or
       ``(iii) transition to organic farming;
       ``(D) enter into futures, hedging, or options contracts in 
     a manner designed to help reduce production, price, or 
     revenue risk;
       ``(E) enter into agricultural trade options as a hedging 
     transaction to reduce production, price, or revenue risk; or
       ``(F) conduct any other activity related to the activities 
     described in subparagraphs (A) through (E), as determined by 
     the Secretary.
       ``(2) Payment limitation.--The total amount of payments 
     made to a person (as defined in section 1001(5) of the Food 
     Security Act (7 U.S.C. 1308(5))) under this subsection for 
     any year may not exceed $50,000.
       ``(3) Commodity credit corporation.--
       ``(A) In general.--The Secretary shall carry out this 
     subsection through the Commodity Credit Corporation.
       ``(B) Funding.--The Commodity Credit Corporation shall make 
     available to carry out this subsection $10,000,000 for fiscal 
     year 2001 and each subsequent fiscal year.''.

     SEC. 134. OPTIONS PILOT PROGRAM.

       Section 191 of the Agricultural Market Transition Act (7 
     U.S.C. 7331) is amended--
       (1) in the first sentence of subsection (b), by striking 
     ``100 counties, except that not more than 6'' and inserting 
     ``300 counties, except that not more than 25'';
       (2) in subsection (c)(2), by inserting before the semicolon 
     the following: ``during any calendar year in which a county 
     in which the farm of the producer is located is included in 
     the pilot program''; and
       (3) in the first sentence of subsection (h), by inserting 
     before the period at the end the following: ``, except that 
     the amount of Commodity Credit Corporation funds used to 
     carry out this section shall not exceed, to the maximum 
     extent practicable, $9,000,000 for fiscal year 2001, 
     $15,000,000 for fiscal year 2002, and $2,000,000 for fiscal 
     year 2003''.
                       Subtitle D--Administration

     SEC. 141. RELATION TO OTHER LAWS.

       Section 502 of the Federal Crop Insurance Act (7 U.S.C. 
     1502), as amended by section 122, is amended by adding at the 
     end the following:
       ``(d) Relation to Other Laws.--
       ``(1) Terms and conditions of policies and plans.--The 
     terms and conditions of any policy or plan of insurance 
     offered under this title that is reinsured by the Corporation 
     shall not--
       ``(A) be subject to the jurisdiction of the Commodity 
     Futures Trading Commission or the Securities and Exchange 
     Commission; or
       ``(B) be considered to be accounts, agreements (including 
     any transaction that is of the character of, or is commonly 
     known to the trade as, an `option', `privilege', `indemnity', 
     `bid', `offer', `put', `call', `advance guaranty', or 
     `decline guaranty'), or transactions involving contracts of 
     sale of a commodity for future delivery, traded or executed 
     on a contract market for the purposes of the Commodity 
     Exchange Act (7 U.S.C. 1 et seq.).
       ``(2) Effect on cftc and commodity exchange act.--Nothing 
     in this title affects the jurisdiction of the Commodity 
     Futures Trading Commission or the applicability of the 
     Commodity Exchange Act (7 U.S.C. 1 et seq.) to any 
     transaction conducted on a contract market under that Act by 
     an approved insurance provider to offset the approved 
     insurance provider's risk under a plan or policy of insurance 
     under this title.''.

     SEC. 142. MANAGEMENT OF CORPORATION.

       (a) Board of Directors of Corporation.--
       (1) Change in composition.--Section 505 of the Federal Crop 
     Insurance Act (7 U.S.C. 1505) is amended by striking the 
     section heading, ``Sec. 505.'', and subsection (a) and 
     inserting the following:

     ``SEC. 505. MANAGEMENT OF CORPORATION.

       ``(a) Board of Directors.--
       ``(1) Establishment.--The management of the Corporation 
     shall be vested in a Board of Directors subject to the 
     general supervision of the Secretary.
       ``(2) Composition.--The Board shall consist of only the 
     following members:
       ``(A) The manager of the Corporation, who shall serve as a 
     nonvoting ex officio member.

[[Page 9179]]

       ``(B) The Under Secretary of Agriculture responsible for 
     the Federal crop insurance program.
       ``(C) 1 additional Under Secretary of Agriculture (as 
     designated by the Secretary).
       ``(D) The Chief Economist of the Department of Agriculture.
       ``(E) 1 person experienced in the crop insurance business.
       ``(F) 1 person experienced in reinsurance or the regulation 
     of insurance.
       ``(G) 4 active producers who are policy holders, are from 
     different geographic areas of the United States, and 
     represent a cross-section of agricultural commodities grown 
     in the United States, including at least 1 specialty crop 
     producer.
       ``(3) Appointment of private sector members.--The members 
     of the Board described in subparagraphs (E), (F), and (G) of 
     paragraph (2)--
       ``(A) shall be appointed by, and hold office at the 
     pleasure of, the Secretary;
       ``(B) shall not be otherwise employed by the Federal 
     Government;
       ``(C) shall be appointed to staggered 4-year terms, as 
     determined by the Secretary; and
       ``(D) shall serve not more than 2 consecutive terms.
       ``(4) Chairperson.--The Board shall select a member of the 
     Board to serve as Chairperson.''.
       (2) Implementation.--The initial members of the Board of 
     Directors of the Federal Crop Insurance Corporation required 
     to be appointed under section 505(a)(3) of the Federal Crop 
     Insurance Act (as amended by paragraph (1)) shall be 
     appointed during the period beginning February 1, 2001, and 
     ending April 1, 2001.
       (3) Effect on existing board.--A member of the Board of 
     Directors of the Federal Crop Insurance Corporation on the 
     date of enactment of this Act may continue to serve as a 
     member of the Board until the members referred to in 
     paragraph (2) are first appointed.
       (b) Expert Review of Policies, Plans of Insurance, and 
     Related Material.--Section 505 of the Federal Crop Insurance 
     Act (7 U.S.C. 1505) is amended by adding at the end the 
     following:
       ``(e) Expert Review of Policies, Plans of Insurance, and 
     Related Material.--
       ``(1) Review by experts.--The Board shall establish 
     procedures under which any policy or plan of insurance, as 
     well as any related material or modification of such a policy 
     or plan of insurance, to be offered under this title shall be 
     subject to independent reviews by persons experienced as 
     actuaries and in underwriting, as determined by the Board.
       ``(2) Review of corporation policies and plans.--Except as 
     provided in paragraph (3), the Board shall contract with at 
     least 5 persons to each conduct a review of the policy or 
     plan of insurance, of whom--
       ``(A) not more than 1 person may be employed by the Federal 
     Government; and
       ``(B) at least 1 person must be designated by approved 
     insurance providers pursuant to procedures determined by the 
     Board.
       ``(3) Review of private submissions.--If the reviews under 
     paragraph (1) cover a policy or plan of insurance, or any 
     related material or modification of a policy or plan of 
     insurance, submitted under section 508(h)--
       ``(A) the Board shall contract with at least 5 persons to 
     each conduct a review of the policy or plan of insurance, of 
     whom--
       ``(i) not more than 1 person may be employed by the Federal 
     Government; and
       ``(ii) none may be employed by an approved insurance 
     provider; and
       ``(B) each review must be completed and submitted to the 
     Board not later than 30 days prior to the end of the 120-day 
     period described in section 508(h)(4)(D).
       ``(4) Consideration of reviews.--The Board shall include 
     reviews conducted under this subsection as part of the 
     consideration of any policy or plan or insurance, or any 
     related material or modification of a policy or plan of 
     insurance, proposed to be offered under this title.
       ``(5) Funding of reviews.--Each contract to conduct a 
     review under this subsection shall be funded from amounts 
     made available under section 516(b)(2)(A)(ii).
       ``(6) Relation to other authority.--The contract authority 
     provided in this subsection is in addition to any other 
     contracting authority that may be exercised by the Board 
     under section 506(l).''.

     SEC. 143. CONTRACTING FOR RATING OF PLANS OF INSURANCE.

       Section 507(c)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1507(c)(2)) is amended--
       (1) by striking ``actuarial, loss adjustment,'' and 
     inserting ``actuarial services, services relating to loss 
     adjustment and rating plans of insurance,''; and
       (2) by inserting after ``private sector'' the following: 
     ``and to enable the Corporation to concentrate on regulating 
     the provision of insurance under this title and evaluating 
     new products and materials submitted under section 508(h) or 
     523''.

     SEC. 144. ELECTRONIC AVAILABILITY OF CROP INSURANCE 
                   INFORMATION.

       Section 508(a)(5) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(a)(5)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and moving such clauses 2 ems to 
     the right;
       (2) by striking ``The Corporation'' and inserting the 
     following:
       ``(A) Available information.--The Corporation''; and
       (3) by adding at the end the following:
       ``(B) Use of electronic methods.--
       ``(i) Dissemination by corporation.--The Corporation shall 
     make the information described in subparagraph (A) available 
     electronically to producers and approved insurance providers.
       ``(ii) Submission to corporation.--To the maximum extent 
     practicable, the Corporation shall allow producers and 
     approved insurance providers to use electronic methods to 
     submit information required by the Corporation.''.

     SEC. 145. ADEQUATE COVERAGE FOR STATES.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)) is amended by adding at the end the following:
       ``(7) Adequate coverage for states.--
       ``(A) Definition of adequately served.--In this paragraph, 
     the term `adequately served' means having a participation 
     rate that is at least 50 percent of the national average 
     participation rate.
       ``(B) Review.--The Board shall review the policies and 
     plans of insurance that are offered by approved insurance 
     providers under this title to determine if each State is 
     adequately served by the policies and plans of insurance.
       ``(C) Report.--
       ``(i) In general.--Not later than 30 days after completion 
     of the review under subparagraph (B), the Board shall submit 
     to Congress a report on the results of the review.
       ``(ii) Recommendations.--The report shall include 
     recommendations to increase participation in States that are 
     not adequately served by the policies and plans of 
     insurance.''.

     SEC. 146. SUBMISSION OF POLICIES AND MATERIALS TO BOARD.

       (a) Persons Authorized To Submit.--Section 508(h)(1) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended 
     by inserting after ``a person'' the following: ``(including 
     an approved insurance provider, a college or university, a 
     cooperative or trade association, or any other person)''.
       (b) Sale by Approved Insurance Providers.--Section 
     508(h)(3) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(h)(3)) is amended in the first sentence by inserting 
     after ``for sale'' the following: ``by approved insurance 
     providers''.
       (c) Guidelines for Submission and Review.--Section 
     508(h)(4) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(h)(4)) is amended--
       (1) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Confidentiality.--
       ``(i) In general.--A proposal submitted to the Board under 
     this subsection (including any information generated from the 
     proposal) shall be considered to be confidential commercial 
     or financial information for the purposes of section 
     552(b)(4) of title 5, United States Code.
       ``(ii) Standard of confidentiality.--If information 
     concerning a proposal could be withheld by the Secretary 
     under the standard for privileged or confidential information 
     pertaining to trade secrets and commercial or financial 
     information under section 552(b)(4) of title 5, United States 
     Code, the information shall not be released to the public.
       ``(iii) Application.--This subparagraph shall apply with 
     respect to a proposal only during the period preceding any 
     approval of the proposal by the Board.'';
       (2) in subparagraph (B), by inserting ``Personal 
     presentation.--'' before ``The''; and
       (3) by striking subparagraphs (C) and (D) and inserting the 
     following:
       ``(C) Notification of intent to disapprove.--
       ``(i) Time period.--The Board shall provide an applicant 
     with notification of intent to disapprove a proposal not 
     later than 30 days prior to making the disapproval.
       ``(ii) Modification of application.--

       ``(I) Authority.--An applicant that receives the 
     notification may modify the application, and such 
     application, as modified, shall be considered by the Board in 
     the manner provided in subparagraph (D) within the 30-day 
     period beginning on the date the modified application is 
     submitted.
       ``(II) Time period.--Clause (i) shall not apply to the 
     Board's consideration of the modified application.

       ``(iii) Explanation.--Any notification of intent to 
     disapprove a policy or other material submitted under this 
     subsection shall be accompanied by a complete explanation as 
     to the reasons for the Board's intention to deny approval.
       ``(D) Determination to approve or disapprove policies or 
     materials.--
       ``(i) Time period.--Not later than 120 days after a policy 
     or other material is submitted under this subsection, the 
     Board shall make a determination to approve or disapprove the 
     policy or material.
       ``(ii) Explanation.--Any determination by the Board to 
     disapprove any policy or other material shall be accompanied 
     by a complete explanation of the reasons for the Board's 
     decision to deny approval.
       ``(iii) Failure to meet deadline.--Notwithstanding any 
     other provision of this title, if the Board fails to make a 
     determination within the prescribed time period, the 
     submitted policy or other material shall be deemed approved 
     by the Board for the initial reinsurance year designated for 
     the policy or material, unless the Board and the applicant 
     agree to an extension.''.
       (d) Technical Amendments.--Section 508(h) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(h)) is amended--
       (1) by striking paragraphs (6), (8), (9), and (10); and
       (2) by redesignating paragraph (7) as paragraph (6).

[[Page 9180]]



     SEC. 147. FUNDING.

       (a) Authorization of Appropriations.--Section 516(a)(2) of 
     the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is 
     amended--
       (1) by striking ``years--'' and inserting ``years the 
     following:'';
       (2) by capitalizing the first letter of the first word of 
     each subparagraph;
       (3) by striking ``; and'' at the end of subparagraph (A) 
     and inserting a period; and
       (4) by adding at the end the following:
       ``(C) Costs associated with the conduct of livestock and 
     wild salmon pilot programs carried out under section 523, 
     subject to the limitations in subsections (a)(3)(E)(ii) and 
     (b)(10) of section 523.
       ``(D) Costs associated with the reimbursement, contracting, 
     and partnerships for research and development under section 
     522.''.
       (b) Payment of General Corporation Expenses From Insurance 
     Fund.--Section 516(b)(1) of the Federal Crop Insurance Act (7 
     U.S.C. 1516(b)(1)) is amended--
       (1) by striking ``including--'' and inserting ``including 
     the following:'';
       (2) by capitalizing the first letter of the first word of 
     each subparagraph;
       (3) by striking the semicolon at the end of subparagraph 
     (A) and inserting a period;
       (4) by striking ``; and'' at the end of subparagraph (B) 
     and inserting a period; and
       (5) by adding at the end the following:
       ``(D) Costs associated with the conduct of livestock and 
     wild salmon pilot programs carried out under section 523, 
     subject to the limitations in subsections (a)(3)(E)(ii) and 
     (b)(10) of section 523.
       ``(E) Costs associated with the reimbursement, contracting, 
     and partnerships for research and development under section 
     522.''.
       (c) Expedited Consideration and Implementation of Policies, 
     Plans of Insurance, and Related Materials.--Section 516(b)(2) 
     of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)) is 
     amended--
       (1) by striking ``Research and development expenses.--'' 
     and inserting ``Policy consideration and implementation.--'';
       (2) in subparagraph (A)--
       (A) by striking ``may pay from'' and inserting ``may use'';
       (B) by striking ``research and development expenses of the 
     Corporation''; and
       (C) by striking the period at the end and inserting the 
     following: ``, to pay the following:
       ``(i) Costs associated with the consideration and 
     implementation of policies, plans of insurance, and related 
     materials submitted under section 508(h) or developed under 
     section 522 or 523.
       ``(ii) Costs to contract for the review of policies, plans 
     of insurance, and related materials under section 505(e) and 
     to contract for other assistance in considering policies, 
     plans of insurance, and related materials.''; and
       (3) in subparagraph (B), by striking ``research and 
     development''.
       (d) Deposits to Insurance Fund.--Section 516(c)(1) of the 
     Federal Crop Insurance Act (7 U.S.C. 1516(c)(1)) is amended--
       (1) by striking ``income and'' and inserting ``income,''; 
     and
       (2) by inserting ``, and civil fines collected under 
     section 515(h)'' after ``(a)(2)''.

     SEC. 148. STANDARD REINSURANCE AGREEMENT.

       Notwithstanding section 536 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 1506 
     note; Public Law 105-185), the Federal Crop Insurance 
     Corporation may renegotiate the Standard Reinsurance 
     Agreement once during the 2001 through 2005 reinsurance 
     years.
                       Subtitle E--Miscellaneous

                      CHAPTER 1--OTHER PROVISIONS

     SEC. 161. LIMITATION ON REVENUE COVERAGE FOR POTATOES.

       Section 508(a)(3) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(a)(3)), as amended by section 123, is amended by 
     adding at the end the following:
       ``(C) Limitation on revenue coverage for potatoes.--No 
     policy or plan of insurance provided under this title 
     (including a policy or plan of insurance approved by the 
     Board under subsection (h)) shall cover losses due to a 
     reduction in revenue for potatoes except as covered under a 
     whole farm policy or plan of insurance, as determined by the 
     Corporation.''.

     SEC. 162. CROP INSURANCE COVERAGE FOR COTTON AND RICE.

       Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 
     1508(a)), as amended by 145, is amended by adding at the end 
     the following:
       ``(8) Special provisions for cotton and rice.--
     Notwithstanding any other provision of this title, beginning 
     with the 2001 crops of upland cotton, extra long staple 
     cotton, and rice, the Corporation shall offer plans of 
     insurance, including prevented planting coverage and 
     replanting coverage, under this title that cover losses of 
     upland cotton, extra long staple cotton, and rice resulting 
     from failure of irrigation water supplies due to drought and 
     saltwater intrusion.''.

     SEC. 163. INDEMNITY PAYMENTS FOR CERTAIN PRODUCERS.

       (a) In General.--Except as otherwise provided in this 
     section, notwithstanding section 508(c)(5) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(c)(5)), a producer that 
     purchased a 1999 Crop Revenue Coverage policy for a commodity 
     covered by Bulletin MGR-99-004 (as in effect before being 
     voided by subsection (d)) by the sales closing date 
     prescribed in the actuarial documents in the county where the 
     policy was sold shall receive an indemnity payment in 
     accordance with the policy.
       (b) Base and Harvest Prices.--The base price and harvest 
     price under the policy for a commodity described in 
     subsection (a) shall be determined in accordance with the 
     Commodity Exchange Endorsement published by the Federal Crop 
     Insurance Corporation on July 14, 1998 (63 Fed. Reg. 37829).
       (c) Reinsurance.--Subject to subsection (b), 
     notwithstanding section 508(c)(5) of the Federal Crop 
     Insurance Act (7 U.S.C. 1508(c)(5)), the Corporation shall 
     provide reinsurance with respect to the policy in accordance 
     with the Standard Reinsurance Agreement.
       (d) Voiding of Bulletin.--Bulletin MGR-99-004, issued by 
     the Administrator of the Risk Management Agency of the 
     Department of Agriculture, is void.
       (e) Effective Date.--This section takes effect on October 
     1, 2000.

     SEC. 164. SENSE OF CONGRESS REGARDING THE FEDERAL CROP 
                   INSURANCE PROGRAM.

       It is the sense of Congress that--
       (1) farmer-owned cooperatives play a valuable role in 
     achieving the purposes of the Federal Crop Insurance Act (7 
     U.S.C. 1501 et seq.) by--
       (A) encouraging producer participation in the Federal crop 
     insurance program;
       (B) improving the delivery system for crop insurance; and
       (C) helping to develop new and improved insurance products;
       (2) the Risk Management Agency, through its regulatory 
     activities, should encourage efforts by farmer-owned 
     cooperatives to promote appropriate risk management 
     strategies among their membership;
       (3) partnerships between approved insurance providers and 
     farmer-owned cooperatives provide opportunity for 
     agricultural producers to obtain needed insurance coverage on 
     a more competitive basis and at a lower cost;
       (4) the Risk Management Agency is following an appropriate 
     regulatory process to ensure the continued participation by 
     farmer-owned cooperatives in the delivery of crop insurance;
       (5) efforts by the Risk Management Agency to finalize 
     regulations that would incorporate the currently approved 
     business practices of cooperatives participating in the 
     Federal crop insurance program should be commended; and
       (6) not later than 180 days after the date of enactment of 
     this Act, the Federal Crop Insurance Corporation should 
     complete promulgation of the proposed rule entitled ``General 
     Administrative Regulations; Premium Reductions; Payment of 
     Rebates, Dividends, and Patronage Refunds; and Payments to 
     Insured-Owned and Record-Controlling Entities'', published by 
     the Federal Crop Insurance Corporation on May 12, 1999 (64 
     Fed. Reg. 25464), in a manner that--
       (A) effectively responds to comments received from the 
     public during the rulemaking process;
       (B) provides an effective opportunity for farmer-owned 
     cooperatives to assist the members of the cooperatives to 
     obtain crop insurance and participate most effectively in the 
     Federal crop insurance program;
       (C) incorporates the currently approved business practices 
     of farmer-owned cooperatives participating in the Federal 
     crop insurance program; and
       (D) protects the interests of agricultural producers.

     SEC. 165. SENSE OF CONGRESS ON RURAL AMERICA, INCLUDING 
                   MINORITY AND LIMITED-RESOURCE FARMERS.

       It is the sense of Congress that--
       (1) rural America, including minority and limited resource 
     farmers, has not experienced this recent period of economic 
     prosperity;
       (2) as a result of sustained low commodity prices, they 
     face significant challenges, including--
       (A) a depressed farm economy;
       (B) a loss of business and jobs on rural main streets;
       (C) a reduction of capital investment; and
       (D) a loss of independent farmers;
       (3) Congress applauds American farmers and rural advocates, 
     including the organizers of the Rally for Rural America, for 
     their efforts in calling this situation to the public's 
     attention; and
       (4) Congress is committed to responding to the concerns of 
     rural America and pledges to devote full attention to making 
     necessary changes to Federal agricultural programs in a 
     manner that will--
       (A) alleviate the agricultural price crisis;
       (B) ensure competitive markets by empowering farm families;
       (C) ensure that all farmers, including minority and 
     limited-resource farmers, participate fully in the benefits 
     of those programs;
       (D) invest in rural education and health;
       (E) increase resources for outreach and technical farming 
     assistance;
       (F) conserve our natural resources for future generations; 
     and
       (G) ensure a safe and secure food supply for all.
             Subtitle F--Effective Dates and Implementation

     SEC. 171. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), this 
     Act and the amendments made by this Act take effect on the 
     date of enactment of this Act.
       (b) Exceptions.--
       (1) 2001 fiscal year.--The following provisions and the 
     amendments made by the provisions take effect on October 1, 
     2000:
       (A) Subtitle C.

[[Page 9181]]

       (B) Section 146.
       (C) Section 163.
       (2) 2001 crop year.--The amendments made by the following 
     provisions apply beginning with the 2001 crop of an 
     agricultural commodity:
       (A) Subsections (a), (b), and (c) of section 101.
       (B) Section 102(a).
       (C) Subsections (a), (b), and (c) of section 103.
       (D) Section 104.
       (E) Section 105(b).
       (F) Section 108.
       (G) Section 109.
       (H) Section 162.
       (3) 2001 reinsurance year.--The amendments made by the 
     following provisions apply beginning with the 2001 
     reinsurance year:
       (A) Section 101(d).
       (B) Section 102(b).
       (C) Section 103(d).

     SEC. 172. REGULATIONS.

       Not later than 120 days after the date of enactment of this 
     Act, the Secretary of Agriculture shall promulgate 
     regulations to carry out this Act and the amendments made by 
     this Act.

     SEC. 173. SAVINGS CLAUSE.

       The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and 
     section 196 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7333), as in effect on day before the 
     date of the enactment of this Act, shall--
       (1) continue to apply with respect to the 1999 crop year; 
     and
       (2) apply with respect to the 2000 crop year, to the extent 
     the application of an amendment made by this Act is delayed 
     under section 171(b) or by the terms of the amendment.
                   TITLE II--AGRICULTURAL ASSISTANCE
                   Subtitle A--Market Loss Assistance

     SEC. 201. MARKET LOSS ASSISTANCE.

       (a) In General.--The Secretary of Agriculture (referred to 
     in this title as the ``Secretary'') shall use funds of the 
     Commodity Credit Corporation to provide assistance in the 
     form of a market loss assistance payment to owners and 
     producers on a farm that are eligible for a final payment for 
     fiscal year 2000 under a production flexibility contract for 
     the farm under the Agricultural Market Transition Act (7 
     U.S.C. 7201 et seq.).
       (b) Amount and Manner.--In providing payments under this 
     section, the Secretary shall--
       (1) use the same contract payment rates as are used under 
     section 802(b) of the Agriculture, Rural Development, Food 
     and Drug Administration, and Related Agencies Appropriations 
     Act, 2000 (7 U.S.C. 1421 note; Public Law 106-78); and
       (2) provide the payments in a manner that is consistent 
     with section 802(c) of that Act.
       (c) Timing.--The Secretary shall make the payments required 
     by this section not earlier than September 1, 2000, and not 
     later than September 30, 2000.

     SEC. 202. OILSEEDS.

       (a) In General.--The Secretary shall use $500,000,000 of 
     funds of the Commodity Credit Corporation to make payments to 
     producers of the 2000 crop of oilseeds that are eligible to 
     obtain a marketing assistance loan under section 131 of the 
     Agricultural Market Transition Act (7 U.S.C. 7231).
       (b) Computation.--A payment to producers on a farm under 
     this section for an oilseed shall be equal to the product 
     obtained by multiplying--
       (1) a payment rate determined by the Secretary;
       (2) the acreage of the producers on the farm for the 
     oilseed, as determined under subsection (c); and
       (3) the yield of the producers on the farm for the oilseed, 
     as determined under subsection (d).
       (c) Acreage.--
       (1) In general.--Except as provided in paragraph (2), the 
     acreage of the producers on the farm for an oilseed under 
     subsection (b)(2) shall be equal to the number of acres 
     planted to the oilseed by the producers on the farm during 
     the 1997, 1998, or 1999 crop year, whichever is greatest, as 
     reported by the producers on the farm to the Secretary 
     (including any acreage reports that are filed late).
       (2) New producers.--In the case of producers on a farm that 
     planted acreage to an oilseed during the 2000 crop year but 
     not the 1997, 1998, or 1999 crop year, the acreage of the 
     producers for the oilseed under subsection (b)(2) shall be 
     equal to the number of acres planted to the oilseed by the 
     producers on the farm during the 2000 crop year, as reported 
     by the producers on the farm to the Secretary (including any 
     acreage reports that are filed late).
       (d) Yield.--
       (1) Soybeans.--Except as provided in paragraph (3), in the 
     case of soybeans, the yield of the producers on a farm under 
     subsection (b)(3) shall be equal to the greatest of--
       (A) the average county yield per harvested acre for each of 
     the 1995 through 1999 crop years, excluding the crop year 
     with the highest yield per harvested acre and the crop year 
     with the lowest yield per harvested acre; or
       (B) the actual yield of the producers on the farm for the 
     1997, 1998, or 1999 crop year.
       (2) Other oilseeds.--Except as provided in paragraph (3), 
     in the case of oilseeds other than soybeans, the yield of the 
     producers on a farm under subsection (b)(3) shall be equal to 
     the greatest of--
       (A) the average national yield per harvested acre for each 
     of the 1995 through 1999 crop years, excluding the crop year 
     with the highest yield per harvested acre and the crop year 
     with the lowest yield per harvested acre; or
       (B) the actual yield of the producers on the farm for the 
     1997, 1998, or 1999 crop year.
       (3) New producers.--In the case of producers on a farm that 
     planted acreage to an oilseed during the 2000 crop year but 
     not the 1997, 1998, or 1999 crop year, the yield of the 
     producers on a farm under subsection (b)(3) shall be equal to 
     the greater of--
       (A) the average county yield per harvested acre for each of 
     the 1995 through 1999 crop years, excluding the crop year 
     with the highest yield per harvested acre and the crop year 
     with the lowest yield per harvested acre; or
       (B) the actual yield of the producers on the farm for the 
     2000 crop.
       (4) Data source.--To the maximum extent available, the 
     Secretary shall use data provided by the National 
     Agricultural Statistics Service to carry out this subsection.

     SEC. 203. SPECIALTY CROPS.

       (a) Replenishment of Perishable Agricultural Commodities 
     Act Fund.--Of the amount made available under section 
     261(a)(2), $30,450,000 shall--
       (1) be deposited in the Perishable Agricultural Commodities 
     Act Fund established by section 3(b)(5) of the Perishable 
     Agricultural Commodities Act, 1930 (7 U.S.C. 499c(b)(5));
       (2) be merged with other amounts in the Perishable 
     Agricultural Commodities Act Fund; and
       (3) be available for the same purposes and for the same 
     time period as other amounts in the Perishable Agricultural 
     Commodities Act Fund.
       (b) Replenishment of Trust Funds for Services under 
     Agricultural Marketing Act of 1946.--Of the amount made 
     available under section 261(a)(2), $29,000,000 shall--
       (1) be deposited in the trust fund account established to 
     cover the cost of inspection, certification, and 
     identification services provided under section 203(h) of the 
     Agricultural Marketing Act of 1946 (7 U.S.C. 1622(h));
       (2) be merged with other amounts in the trust fund account; 
     and
       (3) be available for the same purposes and for the same 
     time period as other amounts in the trust fund account.
       (c) Inspection Services Improvements.--Of the amount made 
     available under section 261(a)(2), $11,550,000 shall be used 
     by the Secretary to improve the infrastructure and system 
     used for inspecting fruits and vegetables, including 
     improving--
       (1) the program used to train inspectors, including the 
     establishment of an inspector training center;
       (2) the technological resources used by inspectors;
       (3) the use of digital imaging by inspectors; and
       (4) the office space and grading tables used by inspectors.
       (d) Surplus Crop Purchases.--
       (1) Purchases.--Of the amount made available under section 
     261(a)(2), $200,000,000 shall be used by the Secretary to 
     purchase specialty crops that have experienced low prices 
     during the 1998 or 1999 crop years, including apples, black-
     eyed peas, cherries, citrus, cranberries, onions, melons, 
     peaches, and potatoes.
       (2) Displacement.--The Secretary shall ensure that 
     purchases of specialty crops under this subsection will not 
     displace purchases by the Secretary under any other law.
       (e) Grower Compensation.--
       (1) Compensation.--Of the amount made available under 
     section 261(a)(2), $25,000,000 shall be used by the Secretary 
     to compensate--
       (A) growers covered by the Secretary's Declaration of 
     Extraordinary Emergency published on March 2, 2000 (65 Fed. 
     Reg. 11280), regarding the plum pox virus;
       (B) growers for losses due to Pierce's disease; and
       (C) commercial producers for losses due to citrus canker.
       (2) Report.--Not later than July 19, 2000, the Secretary, 
     in coordination with the Inspector General of the Department 
     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 analyzes--
       (A) the economic losses to the produce industry as a result 
     of allegations of false inspection certificates prepared by 
     graders of the Department of Agriculture at Hunts Point 
     Terminal Market, Bronx, New York; and
       (B) the restitution by the Secretary for persons damaged as 
     a result of losses described in subparagraph (A).
       (f) Apple Loans.--
       (1) Requirement.--The Secretary, acting through the Farm 
     Service Agency, shall use funds of the Commodity Credit 
     Corporation to make loans to producers of apples that are 
     suffering economic loss as the result of low prices for 
     apples.
       (2) Term.--The term of a loan made under this subsection 
     shall be not more than 3 years.
       (3) Interest rate.--The interest rate for a loan made under 
     this subsection shall be at a rate equal to the then current 
     cost of money to the Government of the United States for 
     loans of similar maturity.
       (4) Security.--The Secretary may require a loan made under 
     this subsection to be secured by real property or such other 
     collateral as the Secretary considers appropriate and 
     protects the interests of the Federal Government.
       (5) Limitation.--The cost of all loans made under this 
     subsection shall not exceed $5,000,000.

     SEC. 204. OTHER COMMODITIES.

       (a) Peanuts.--
       (1) In general.--The Secretary shall use funds of the 
     Commodity Credit Corporation to provide payments to producers 
     of quota peanuts or additional peanuts to partially 
     compensate

[[Page 9182]]

     the producers for continuing low commodity prices, and 
     increasing costs of production, for the 2000 crop year.
       (2) Amount.--The amount of a payment made to producers on a 
     farm of quota peanuts or additional peanuts under paragraph 
     (1) shall be equal to the product obtained by multiplying--
       (A) the quantity of quota peanuts or additional peanuts 
     produced or considered produced by the producers; and
       (B) a payment rate equal to--
       (i) in the case of quota peanuts, $30.50 per ton; and
       (ii) in the case of additional peanuts, $16.00 per ton.
       (b) Tobacco.--
       (1) Definitions.--In this subsection:
       (A) Eligible person.--The term ``eligible person'' means a 
     person that owns or operates, or produces eligible tobacco 
     on, a farm--
       (i) for which the quantity of quota of eligible tobacco 
     allotted to the farm under part I of subtitle B of title III 
     of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et 
     seq.) was reduced from the 1999 crop year to the 2000 crop 
     year; and
       (ii) that is used for the production of eligible tobacco 
     during the 2000 crop year.
       (B) Eligible tobacco.--The term ``eligible tobacco'' means 
     each of the following kinds of tobacco:
       (i) Flue-cured tobacco, comprising types 11, 12, 13, and 
     14.
       (ii) Fire-cured tobacco, comprising type 21.
       (iii) Burley tobacco, comprising type 31.
       (iv) Cigar-filler and cigar-binder tobacco, comprising 
     types 42, 43, 44, 54, and 55.
       (2) Payments.--Effective beginning October 1, 2000, the 
     Secretary shall use $340,000,000 of funds of the Commodity 
     Credit Corporation to make payments to eligible persons.
       (3) Allocation of funds among states.--The funds made 
     available for eligible persons under paragraph (2) shall be 
     allocated among States in the following dollar amounts:

Alabama.......................................................$100,000 
Arkansas.........................................................1,000 
Florida......................................................2,500,000 
Georgia.....................................................13,000,000 
Indiana......................................................5,400,000 
Kansas..........................................................23,000 
Kentucky...................................................140,000,000 
Missouri.....................................................2,000,000 
North Carolina.............................................100,000,000 
Ohio.........................................................6,000,000 
Oklahoma.........................................................1,000 
South Carolina..............................................15,000,000 
Tennessee...................................................35,000,000 
Virginia....................................................19,000,000 
Wisconsin......................................................675,000 
West Virginia................................................1,300,000.

       (4) Allocation of funds among farms in a state.--The 
     Secretary shall divide the amount allocated to a State under 
     paragraph (3) among farms in the State based on the quota of 
     eligible tobacco available to each farm of an eligible person 
     for the 2000 crop year.
       (5) Division of farm payments among eligible persons in a 
     state.--Not later than October 20, 2000, the Secretary shall 
     divide amounts made available to farms in a State under 
     paragraph (4) among eligible persons who are quota owners, 
     quota lessees, and tobacco producers on farms in the State, 
     and make payments to the eligible persons, on the basis of--
       (A) in the case of a State that is a party to the National 
     Tobacco Grower Settlement Trust, the formula in the Trust 
     used to allocate funds among quota owners, quota lessees, and 
     tobacco producers on farms in the State, with such 
     adjustments as the Secretary determines are necessary to 
     enable the payments to be made by October 20, 2000; or
       (B) in the case of a State that is not a party to the 
     National Tobacco Grower Settlement Trust, a formula 
     established by the Secretary.
       (6) Payments to eligible persons in georgia.--The Secretary 
     shall use the amount allocated to the State of Georgia under 
     paragraph (3) to make payments to eligible persons in Georgia 
     only if the State of Georgia agrees to use an equal amount 
     (not to exceed $13,000,000) to make payments at the same 
     time, or subsequently, to the same eligible persons in the 
     same manner as provided for the Federal payment under 
     paragraphs (4) and (5).
       (7) Use for administrative costs.--None of the funds made 
     available under paragraphs (1) through (7) may be used to pay 
     administrative costs incurred in carrying out those 
     paragraphs.
       (8) Transfer of allotments.--Section 318 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1314d) is 
     amended by striking subsection (g) and inserting the 
     following:
       ``(g) Transfer of Allotments.--Under this section, the 
     total acreage allotted to any farm after any transfer shall 
     not exceed 50 percent of the acreage of cropland on the 
     farm.''.
       (9) Burley tobacco inventories of producer associations.--
     Section 319(c)(3) of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1314e(c)(3)) is amended--
       (A) in subparagraph (B), by striking ``In'' and inserting 
     ``Except as provided in subparagraph (D), in''; and
       (B) by adding at the end the following:
       ``(D) Nonapplicability of downward adjustment.--If the 
     Secretary determines for any of the 2001 or subsequent crop 
     years that noncommitted pool stocks of Burley tobacco are 
     equal to or less than the reserve stock level established 
     under this paragraph, subparagraph (B) shall not apply to the 
     crop year for which the determination is made and all 
     subsequent crop years.''.
       (10) Limitations on burley tobacco quota adjustments.--
       (A) Carry forward adjustment.--Section 319(e) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e(e)) is 
     amended in the fifth sentence--
       (i) by striking ``: Provided, That'' and inserting ``, 
     except that (1)''; and
       (ii) by inserting before the period at the end the 
     following: ``, and (2) the aggregate of such increases for 
     all farms for any crop year may not exceed 10 percent of the 
     national basic quota for the preceding crop year''.
       (B) Lease and transfer of quota due to natural disasters.--
     Section 319(k) of the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1314e(k)) is amended by adding at the end the 
     following:
       ``(3) Limitation.--The total quantity of quota leased or 
     transferred to a farm during a crop year under this 
     subsection may not exceed 15 percent of the quota on the farm 
     that existed prior to any such lease or transfer for the crop 
     year.''.
       (11) Lease and transfer of burley tobacco quota.--Section 
     319 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1314e) is amended by striking subsection (l) and inserting 
     the following:
       ``(l) Lease and Transfer of Burley Tobacco Quota.--
       ``(1) Approval by producers.--Notwithstanding any other 
     provision of this section, the Secretary may permit the lease 
     and transfer of a burley tobacco quota from 1 farm in a State 
     to any other farm in the State if, in a statewide referendum 
     conducted by the Secretary, a majority of the active burley 
     tobacco producers voting in the referendum approve the use of 
     that type of lease and transfer.
       ``(2) Application.--This subsection shall apply only to the 
     States of Tennessee, Ohio, Indiana, Kentucky, and 
     Virginia.''.
       (12) Recordkeeping and sale of burley tobacco quota and 
     acreage.--Section 319 of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1314e) is amended by adding at the end the 
     following:
       ``(m) Computerized Recordkeeping System for Burley Tobacco 
     Quota and Acreage.--
       ``(1) Producer reports.--Each person that owns a farm for 
     which a Burley tobacco marketing quota is established under 
     this Act shall annually file with the Secretary a report 
     describing the acreage planted to Burley tobacco on the farm.
       ``(2) Computerized recordkeeping system.--Not later than 
     180 days after the date of enactment of this subsection, the 
     Secretary shall establish a computerized recordkeeping system 
     that contains all information reported under paragraph (1) 
     and related records, as determined by the Secretary.
       ``(n) Sale of Burley Tobacco Quota.--Notwithstanding any 
     other provision of this section, if a person that owns a farm 
     for which a Burley tobacco marketing quota is established 
     under this Act sells all or part of the acreage on the farm 
     to a buyer, the Secretary shall permit the seller and buyer 
     of the acreage to determine the percentage of the quota that 
     is transferred with the acreage sold.''.
       (c) Honey.--
       (1) In general.--The Secretary shall use funds of the 
     Commodity Credit Corporation to make available recourse loans 
     to producers of the 2000 crop of honey on fair and reasonable 
     terms and conditions, as determined by the Secretary.
       (2) Loan rate.--The loan rate for a loan under paragraph 
     (1) shall be equal to 85 percent of the average price of 
     honey during the 5-crop year period preceding the 2000 crop 
     year, excluding the crop year in which the average price of 
     honey was the highest and the crop year in which the average 
     price of honey was the lowest in the period.
       (d) Wool and Mohair.--
       (1) In general.--The Secretary shall use funds of the 
     Commodity Credit Corporation to make payments to producers of 
     wool, and producers of mohair, for the 1999 marketing year
       (2) Payment rate.--The payment rate for payments made to 
     producers under paragraph (1) shall be equal to--
       (A) in the case of wool, 20 cents per pound; and
       (B) in the case of mohair, 40 cents per pound.
       (e) Cottonseed.--The Secretary shall use $100,000,000 of 
     funds of the Commodity Credit Corporation to provide 
     assistance to producers and first-handlers of the 2000 crop 
     of cottonseed.

     SEC. 205. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS.

       (a) Eligible Producers.--Effective for the 2001 crop year, 
     in the case of a producer that would be eligible for a loan 
     deficiency payment under section 135 of the Agricultural 
     Market Transition Act (7 U.S.C. 7235) for wheat, barley, or 
     oats, but that elects to use acreage planted to the wheat, 
     barley, or oats for the grazing of livestock, the Secretary 
     shall make a payment to the producer under this section if 
     the producer enters into an agreement with the Secretary to 
     forgo any other harvesting of the wheat, barley, or oats on 
     that acreage.
       (b) Payment Amount.--The amount of a payment made to a 
     producer on a farm under this section shall be equal to the 
     amount determined by multiplying--
       (1) the loan deficiency payment rate determined under 
     section 135(c) of the Agricultural Market Transition Act (7 
     U.S.C. 7235(c)) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       (2) the payment quantity determined by multiplying--
       (A) the quantity of the grazed acreage on the farm with 
     respect to which the producer elects

[[Page 9183]]

     to forgo harvesting of wheat, barley, or oats; and
       (B) the greater of--
       (i) the established yield for the crop on the farm; or
       (ii) the average county yield per harvested acre of the 
     crop, as determined by the Secretary.
       (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 of the 
     Agricultural Market Transition Act (7 U.S.C. 7235), except 
     that the payment shall be made not later than September 30, 
     2001.
       (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, barley, and oats established by the Secretary for 
     marketing assistance loans authorized by subtitle C of the 
     Agricultural Market Transition Act (7 U.S.C. 7231 et seq.).
       (d) Regulations.--The Secretary shall promulgate under 
     section 263 such regulations as are necessary to administer 
     the payments authorized by this section in a fair and 
     equitable manner with respect to producers of wheat and feed 
     grains that do not receive a payment under this section.
       (e) Funding.--The Secretary shall use funds of the 
     Commodity Credit Corporation to carry out this section.

     SEC. 206. EXPANSION OF PRODUCERS ELIGIBLE FOR LOAN DEFICIENCY 
                   PAYMENTS.

       (a) Eligible Producers.--Section 135(a) of the Agricultural 
     Market Transition Act (7 U.S.C. 7235(a)) is amended--
       (1) by striking ``to producers'' and inserting ``to--
       ``(1) producers'';
       (2) by striking the period at the end and inserting ``; 
     and''; and
       (3) by adding at the end the following:
       ``(2) effective only for the 2000 crop year, producers 
     that, although not eligible to obtain such a marketing 
     assistance loan under section 131, produce a contract 
     commodity.''.
       (b) Calculation.--Section 135(b)(2) of the Agricultural 
     Market Transition Act (7 U.S.C. 7235(b)(2)) is amended by 
     striking ``that the producers'' and all that follows through 
     the period at the end and inserting the following: ``produced 
     by the eligible producers, excluding any quantity for which 
     the producers obtain a loan under section 131.''.
       (c) Transition; Beneficial Interest.--Section 135 of the 
     Agricultural Market Transition Act (7 U.S.C. 7235) is amended 
     by adding at the end the following:
       ``(e) Transition.--A payment to a producer eligible for a 
     payment under subsection (a)(2) that harvested a commodity on 
     or before the date that is 30 days after the promulgation of 
     the regulations implementing subsection (a)(2) shall be 
     determined as the date the producer lost beneficial interest 
     in the commodity, as determined by the Secretary.
       ``(f) Beneficial Interest.--Subject to subsection (e), a 
     producer shall be eligible for a payment under this section 
     only if the producer has a beneficial interest in the 
     commodity, as determined by the Secretary.''.
                        Subtitle B--Conservation

     SEC. 211. CONSERVATION ASSISTANCE.

       (a) Farmland Protection.--For the purposes described in 
     section 388 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (16 U.S.C. 3830 note; Public Law 104-127), the 
     Secretary shall use $10,000,000 of funds of the Commodity 
     Credit Corporation to make payments to--
       (1) any agency of any State or local government, or 
     federally recognized Indian tribe, including farmland 
     protection boards and land resource councils established 
     under State law; and
       (2) any organization that--
       (A) 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;
       (B) is an organization described in section 501(c)(3) of 
     that Code that is exempt from taxation under section 501(a) 
     of that Code;
       (C) is described in section 509(a)(2) of that Code; or
       (D) is described in section 509(a)(3) of that Code and is 
     controlled by an organization described in section 509(a)(2) 
     of that Code.
       (b) Soil and Water Conservation Assistance.--
       (1) Establishment.--The Secretary shall use $40,000,000 of 
     funds of the Commodity Credit Corporation to provide 
     financial assistance to farmers and ranchers to--
       (A) address threats to soil, water, and related natural 
     resources, including grazing land, wetland, and wildlife 
     habitat;
       (B) comply with Federal and State environmental laws; and
       (C) make beneficial, cost-effective changes to cropping 
     systems, grazing management, manure, nutrient, pest, or 
     irrigation management, land uses, or other measures needed to 
     conserve and improve soil, water, and related natural 
     resources.
       (2) Type of assistance.--Assistance under this subsection 
     may be made in the form of cost share payments or incentive 
     payments, as determined by the Secretary.
       (3) Areas.--The Secretary shall provide assistance under 
     this subsection to areas that are not designated under 
     section 1230(c) of the Food Security Act of 1985 (16 U.S.C. 
     3830(c)).

     SEC. 212. CONDITION ON DEVELOPMENT OF LITTLE DARBY NATIONAL 
                   WILDLIFE REFUGE, OHIO.

       The Secretary of the Interior, acting through the Director 
     of the United States Fish and Wildlife Service, shall prepare 
     an environmental impact statement pursuant to the National 
     Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
     before proceeding with any further development of the Little 
     Darby National Wildlife Refuge in Madison and Union Counties, 
     Ohio.
                          Subtitle C--Research

     SEC. 221. CARBON CYCLE RESEARCH.

       (a) In General.--Of the amount made available under section 
     261(a)(2), the Secretary shall use $15,000,000 to provide a 
     grant to the Consortium for Agricultural Soils Mitigation of 
     Greenhouse Gases, acting through Kansas State University, to 
     develop, analyze, and implement, through the land grant 
     universities described in subsection (b), carbon cycle 
     research at the national, regional, and local levels.
       (b) Land Grant Universities.--The land grant universities 
     referred to in subsection (a) are the following:
       (1) Colorado State University.
       (2) Iowa State University.
       (3) Kansas State University.
       (4) Michigan State University.
       (5) Montana State University.
       (6) Purdue University.
       (7) Ohio State University.
       (8) Texas A & M University.
       (9) University of Nebraska.
       (c) Use.--Land grant universities described in subsection 
     (b) shall use funds made available under this section--
       (1) to conduct research to improve the scientific basis of 
     using land management practices to increase soil carbon 
     sequestration, including research on the use of new 
     technologies to increase carbon cycle effectiveness, such as 
     biotechnology and nanotechnology;
       (2) to enter into partnerships to identify, develop, and 
     evaluate agricultural best practices, including partnerships 
     between--
       (A) Federal, State, or private entities; and
       (B) the Department of Agriculture;
       (3) to develop necessary computer models to predict and 
     assess the carbon cycle;
       (4) to estimate and develop mechanisms to measure carbon 
     levels made available as a result of--
       (A) voluntary Federal conservation programs;
       (B) private and Federal forests; and
       (C) other land uses;
       (5) to develop outreach programs, in coordination with 
     Extension Services, to share information on carbon cycle and 
     agricultural best practices that is useful to agricultural 
     producers; and
       (6) to collaborate with the Great Plains Regional Earth 
     Science Application Center to develop a space-based carbon 
     cycle remote sensing technology program to--
       (A) provide, on a near-continual basis, a real-time and 
     comprehensive view of vegetation conditions;
       (B) assess and model agricultural carbon sequestration; and
       (C) develop commercial products.
       (d) Administrative Costs.--Not more than 3 percent of the 
     funds made available under subsection (a) may be used by the 
     Secretary to pay administrative costs incurred in carrying 
     out this section.

     SEC. 222. TOBACCO RESEARCH FOR MEDICINAL PURPOSES.

       (a) Assistance.--Of the amount made available under section 
     261(a)(2), the Secretary, acting through the Cooperative 
     State Research, Education, and Extension Service, shall use 
     $3,000,000 to provide a grant jointly to Georgetown 
     University and North Carolina State University to conduct 
     research regarding the extraction and purification of 
     proteins from genetically altered tobacco that may be used as 
     a vaccine for cervical cancer.
       (b) Relation to Other Law.--The Secretary may make the 
     grant described in subsection (a) notwithstanding any general 
     prohibition on the use of appropriated funds to carry out 
     research related to the production, processing, or marketing 
     of tobacco or tobacco products.

     SEC. 223. RESEARCH ON SOIL SCIENCE AND FOREST HEALTH 
                   MANAGEMENT.

       Of the amount made available under section 261(a)(2), the 
     Secretary shall use $10,000,000 to provide a grant to the 
     University of Nebraska in Lincoln, Nebraska, for laboratories 
     and equipment for research on soil science and forest health 
     and management.

     SEC. 224. RESEARCH ON WASTE STREAMS FROM LIVESTOCK 
                   PRODUCTION.

       Of the amount made available under section 261(a)(2), the 
     Secretary shall use $3,500,000 to expand current research 
     related to technologies for--
       (1) reducing, modifying, recycling, and using waste streams 
     from livestock production; and
       (2) eliminating associated air, water, and soil quality 
     problems.

     SEC. 225. IMPROVED STORAGE AND MANAGEMENT OF LIVESTOCK AND 
                   POULTRY WASTE.

       (a) Assistance.--Of the amount made available under section 
     261(a)(2), the Secretary shall use $5,000,000--
       (1) to review and assess the actual or potential failure of 
     waste storage and handling systems used in livestock or 
     poultry production and the environmental damages associated 
     with the failure of the systems; and
       (2) to study and demonstrate appropriate market-oriented 
     mechanisms to assist livestock producers and poultry 
     producers to prevent the failure of the systems and rectify 
     environmental

[[Page 9184]]

     damages associated with the failure of the systems.
       (b) Implementation.--The Secretary shall carry out this 
     section through grants, contracts, and cooperative agreements 
     with livestock producers, poultry producers, associations of 
     such producers, and foundations supported by such producers.

     SEC. 226. ETHANOL RESEARCH PILOT PLANT.

       Of the amount made available under section 261(a)(2), the 
     Secretary shall use $14,000,000 to provide a grant to the 
     State of Illinois to complete the construction of a corn-
     based ethanol research pilot plant (agreement #59-3601-7-078) 
     at Southern Illinois University, Edwardsville, Illinois.

     SEC. 227. BIOINFORMATICS INSTITUTE FOR MODEL PLANT SPECIES.

       (a) Establishment and Purpose.--The Secretary, acting 
     through the Agricultural Research Service, may enter into a 
     cooperative agreement with the National Center for Genome 
     Resources in Santa Fe, New Mexico, New Mexico State 
     University, and Iowa State University, for the establishment 
     and operation of an institute (to be known as the 
     ``Bioinformatics Institute for Model Plant Species'') in 
     Santa Fe, New Mexico, for the purpose of enhancing the 
     accessibility and utility of genomic information for plant 
     genetic research.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section--
       (1) $3,000,000 for the purpose of establishing the 
     Institute under subsection (a); and
       (2) such sums as may be necessary for each fiscal year to 
     carry out the cooperative agreement authorized by subsection 
     (a).
                   Subtitle D--Agricultural Marketing

     SEC. 231. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT 
                   GRANTS.

       (a) Grant Program.--
       (1) Establishment and purposes.--Of the amount made 
     available under section 261(a)(2), $15,000,000 shall be used 
     by the Secretary to award competitive grants to eligible 
     independent producers (as determined by the Secretary) of 
     value-added agricultural commodities and products of 
     agricultural commodities to assist an eligible producer--
       (A) to develop a business plan for viable marketing 
     opportunities for a value-added agricultural commodity or 
     product of an agricultural commodity; or
       (B) to develop strategies for the ventures that are 
     intended to create marketing opportunities for the producers.
       (2) Amount of grant.--The total amount provided under this 
     subsection to a grant recipient may not exceed $500,000.
       (3) Producer strategies.--A producer that receives a grant 
     under paragraph (1) 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 commodity or product of an 
     agricultural commodity; or
       (B) to provide capital to establish alliances or business 
     ventures that allow the producer to better compete in 
     domestic or international markets.
       (b) Agricultural Marketing Resource Center Pilot Project.--
       (1) Establishment.--Notwithstanding the limitation on 
     grants in subsection (a)(2), the Secretary shall not use more 
     than $5,000,000 of the funds made available under subsection 
     (a) to establish a pilot project (to be known as the 
     ``Agricultural Marketing Resource Center'') at an eligible 
     institution described in paragraph (2) that will--
       (A) develop a resource center with electronic capabilities 
     to coordinate and provide to independent producers and 
     processors (as determined by the Secretary) of value-added 
     agricultural commodities and products of agricultural 
     commodities information regarding research, business, legal, 
     financial, or logistical assistance; and
       (B) develop a strategy to establish a nationwide market 
     information and coordination system.
       (2) Eligible institution.--To be eligible to receive 
     funding to establish the Agricultural Marketing Resource 
     Center, an applicant shall demonstrate to the Secretary--
       (A) the capacity and technical expertise to provide the 
     services described in paragraph (1)(A);
       (B) an established plan outlining support of the applicant 
     in the agricultural community; and
       (C) the availability of resources (in cash or in kind) of 
     definite value to sustain the Center following establishment.
       (c) Matching Funds.--A recipient of funds under subsection 
     (a) or (b) shall contribute an amount of non-Federal funds 
     that is at least equal to the amount of Federal funds 
     received.
       (d) Limitation.--Funds provided under this section may not 
     be used for--
       (1) planning, repair, rehabilitation, acquisition, or 
     construction of a building or facility (including a 
     processing facility); or
       (2) the purchase, rental, or installation of fixed 
     equipment.
                     Subtitle E--Nutrition Programs

     SEC. 241. CALCULATION OF MINIMUM AMOUNT OF COMMODITIES FOR 
                   SCHOOL LUNCH REQUIREMENTS.

       (a) Fiscal Year 2000.--Notwithstanding any other provision 
     of law, in addition to any assistance provided under any 
     other provision of law, of the amount made available under 
     section 261(a)(1), the Secretary shall use $34,000,000 in 
     fiscal year 2000 to purchase commodities of the type provided 
     under section 6 of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1755) for distribution to schools 
     participating in the school lunch program established under 
     that Act (42 U.S.C. 1751 et seq.).
       (b) Fiscal Year 2001.--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 ``2000'' and inserting ``2001''.
       (c) Additional Commodities in Fiscal Year 2001.--
     Notwithstanding any other provision of law, in addition to 
     any assistance provided under any other provision of law 
     (including the amendment made by subsection (b)), of the 
     amount made available under section 261(a)(2), the Secretary 
     shall use $21,000,000 in fiscal year 2001 to purchase 
     commodities of the type provided under section 6 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1755) 
     for distribution to schools participating in the school lunch 
     program established under that Act (42 U.S.C. 1751 et seq.).
       (d) Distribution to Schools.--The commodities purchased 
     under subsections (a) and (c) shall, to the maximum extent 
     practicable, be distributed in the same manner as commodities 
     are distributed under section 6 of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1755).

     SEC. 242. SCHOOL LUNCH DATA.

       (a) Limited Waiver of Confidentiality Requirement.--
       (1) In general.--Section 9(b)(2)(C)(iii) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 
     1758(b)(2)(C)(iii)) is amended--
       (A) in subclause (II), by striking ``and'' at the end;
       (B) in subclause (III), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:

       ``(IV) a person directly connected with the administration 
     of the State medicaid program under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.) or the State children's 
     health insurance program under title XXI of that Act (42 
     U.S.C. 1397aa et seq.) solely for the purpose of identifying 
     children eligible for benefits under, and enrolling children 
     in, such programs, except that this subclause shall apply 
     only to the extent that the State and the school food 
     authority so elect.''.

       (2) Certification and notification.--Section 9(b)(2)(C) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1758(b)(2)(C)) is amended by adding at the end the following:
       ``(vi) Requirements for waiver of confidentiality.--A State 
     that elects to exercise the option described in clause 
     (iii)(IV) shall ensure that any school food authority acting 
     in accordance with that option--

       ``(I) has a written agreement with the State or local 
     agency or agencies administering health insurance programs 
     for children under titles XIX and XXI of the Social Security 
     Act (42 U.S.C. 1396 et seq., 1397aa et seq.) that requires 
     the health agencies to use the information obtained under 
     clause (iii) to seek to enroll children in those health 
     insurance programs; and
       ``(II)(aa) notifies each household, the information of 
     which shall be disclosed under clause (iii), that the 
     information disclosed will be used only to enroll children in 
     health programs referred to in clause (iii)(IV); and
       ``(bb) provides each parent or guardian of a child in the 
     household with an opportunity to elect not to have the 
     information disclosed.

       ``(vii) Use of disclosed information.--A person to which 
     information is disclosed under clause (iii)(IV) shall use or 
     disclose the information only as necessary for the purpose of 
     enrolling children in health programs referred to in clause 
     (iii)(IV).''.
       (b) Demonstration Project.--
       (1) In general.--Section 17 of the Child Nutrition Act of 
     1966 (42 U.S.C. 1786) is amended by adding at the end the 
     following:
       ``(r) Demonstration Project Relating to Use of the WIC 
     Program for Identification and Enrollment of Children in 
     Certain Health Programs.--
       ``(1) In general.--In accordance with paragraph (2), the 
     Secretary shall establish a demonstration project in at least 
     20 local agencies in 1 State under which costs of nutrition 
     services and administration (as defined in subsection (b)(4)) 
     shall include the costs of identification of children 
     eligible for benefits under, and the provision of enrollment 
     assistance for children in--
       ``(A) the State medicaid program under title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.); and
       ``(B) the State children's health insurance program under 
     title XXI of that Act (42 U.S.C. 1397aa et seq.).
       ``(2) State-related requirements.--The State in which a 
     demonstration project is established under paragraph (1)--
       ``(A) shall operate not fewer than 20 pilot site locations;
       ``(B) as of the date of establishment of the demonstration 
     project--
       ``(i) with respect to the programs referred to in 
     subparagraphs (A) and (B) of paragraph (1)--

       ``(I) shall have in use a simplified application form with 
     a length of not more than 2 pages;
       ``(II) shall accept mail-in applications; and
       ``(III) shall permit enrollment in the program in a variety 
     of locations; and

       ``(ii) shall have served as an original pilot site for the 
     program under this section; and
       ``(C) as of December 31, 1998, shall have had--
       ``(i) an infant mortality rate that is above the national 
     average; and
       ``(ii) an overall rate of age-appropriate immunizations 
     against vaccine-preventable diseases that is below 80 
     percent.

[[Page 9185]]

       ``(3) Termination of authority.--The authority provided by 
     this subsection terminates September 30, 2003.''.
       (2) Technical amendments.--Section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786) is amended--
       (A) in subsection (b)(4), by striking ``(4)'' and all that 
     follows through ``means'' and inserting ``(4) `Costs of 
     nutrition services and administration' or `nutrition services 
     and administration' means''; and
       (B) in subsection (h)(1)(A), by striking ``costs incurred 
     by State and local agencies for nutrition services and 
     administration'' and inserting ``costs of nutrition services 
     and administration incurred by State and local agencies''.
       (3) Grant for demonstration project.--Section 12 of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 1760) 
     is amended by adding at the end the following:
       ``(p) Grant for Demonstration Project.--
       ``(1) Use of funds for wic demonstration project.--
       ``(A) In general.--The Secretary shall make grants of funds 
     under this subsection to a State--
       ``(i) for purposes that include carrying out the 
     demonstration project under section 17(r) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(r)); and
       ``(ii) for the purpose described in clause (i), in amounts 
     not to exceed $10,000 for each fiscal year for each site in 
     the State.
       ``(B) Apportionment.--A State that receives a grant under 
     subparagraph (A) shall apportion the funds received to ensure 
     that each site in the State receives not more than $10,000 
     for any fiscal year.
       ``(2) Evaluations of demonstration project.--The Secretary 
     shall conduct an evaluation of the demonstration project and 
     grant program for identification and enrollment efforts 
     funded under this subsection that include a determination 
     of--
       ``(A) the number of children enrolled as a result of the 
     enactment of this subsection;
       ``(B) the income levels of the families of enrolled 
     children;
       ``(C) the cost of identification and enrollment assistance 
     services provided under the project or grant program;
       ``(D) the effect on the caseloads of local agencies that 
     carry out the special supplemental nutrition program for 
     woman, infants, and children established under section 17 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786); and
       ``(E) such other factors as the Secretary determines to be 
     appropriate.
       ``(3) Funding.--
       ``(A) In general.--Out of any moneys in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     provide to the Secretary to carry out this subsection 
     $1,000,000 for the period of fiscal years 2001 through 2004, 
     to remain available until expended but not later than 
     September 30, 2004.
       ``(B) Receipt and acceptance.--The Secretary shall be 
     entitled to receive the funds and shall accept the funds 
     provided under subparagraph (A), without further 
     appropriation.''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2000.

     SEC. 243. CHILD AND ADULT CARE FOOD PROGRAM INTEGRITY.

       (a) Definition of Institution; Exclusion of Seriously 
     Deficient Institutions.--Section 17(a) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766(a)) is 
     amended--
       (1) by striking ``(a) The Secretary'' and inserting the 
     following:
       ``(a) Grant Authority and Institution Eligibility.--
       ``(1) Grant authority.--The Secretary'';
       (2) by striking the second and third sentences and 
     inserting the following:
       ``(2) Definition of institution.--In this section, the term 
     `institution' means--
       ``(A) any public or private nonprofit organization 
     providing nonresidential child care or day care outside 
     school hours for school children, including any child care 
     center, settlement house, recreational center, Head Start 
     center, and institution providing child care facilities for 
     children with disabilities;
       ``(B) any other private organization providing 
     nonresidential child care or day care outside school hours 
     for school children for which the organization receives 
     compensation from amounts granted to the States under title 
     XX of the Social Security Act (42 U.S.C. 1397 et seq.) (but 
     only if the organization receives compensation under that 
     title for at least 25 percent of its enrolled children or 25 
     percent of its licensed capacity, whichever is less);
       ``(C) any public or private nonprofit organization acting 
     as a sponsoring organization for 1 or more of the 
     organizations described in subparagraph (A) or (B) or for an 
     adult day care center (as defined in subsection (o)(2));
       ``(D) any other private organization acting as a sponsoring 
     organization for, and that is part of the same legal entity 
     as, 1 or more organizations that are--
       ``(i) described in subparagraph (B); or
       ``(ii) proprietary title XIX or title XX centers (as 
     defined in subsection (o)(2));
       ``(E) any public or private nonprofit organization acting 
     as a sponsoring organization for 1 or more family or group 
     day care homes; and
       ``(F) any emergency shelter (as defined in subsection 
     (t)).'';
       (3) by striking ``Except as provided in subsection (r),'' 
     and inserting the following:
       ``(3) Age limit.--Except as provided in subsection (r),'';
       (4) by striking ``The Secretary may establish separate 
     guidelines'' and inserting the following:
       ``(4) Additional guidelines.--The Secretary may establish 
     separate guidelines'';
       (5) by striking ``For purposes of determining'' and all 
     that follows through ``an institution'' and inserting the 
     following:
       ``(5) Licensing.--In order to be eligible, an 
     institution''; and
       (6) by striking ``standards; and'' and inserting 
     ``standards.'';
       (7) by striking ``(2) no institution'' and inserting the 
     following:
       ``(6) Eligibility criteria.--No institution''; and
       (8) in paragraph (6) (as so designated)--
       (A) in subparagraph (B), by inserting ``, or has not been 
     determined to be ineligible to participate in any other 
     publicly funded program by reason of violation of the 
     requirements of the program'' before ``, for a period'';
       (B) in subparagraph (C)--
       (i) by inserting ``(i)'' after ``(C)''; and
       (ii) by adding at the end the following:
       ``(ii) in the case of a sponsoring organization, the 
     organization shall employ an appropriate number of monitoring 
     personnel based on the number and characteristics of child 
     care centers and family or group day care homes sponsored by 
     the organization, as approved by the State (in accordance 
     with regulations promulgated by the Secretary), to ensure 
     effective oversight of the operations of the child care 
     centers and family or group day care homes; and'';
       (C) in subparagraph (D), by striking the period and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(E) in the case of a sponsoring organization, the 
     organization has in effect a policy that restricts other 
     employment by employees that interferes with the 
     responsibilities and duties of the employees of the 
     organization with respect to the program; and
       ``(F) in the case of a sponsoring organization that applies 
     for initial participation in the program on or after the date 
     of the enactment of this subparagraph and that operates in a 
     State that requires such institutions to be bonded under 
     State law, regulation, or policy, the institution is bonded 
     in accordance with such law, regulation, or policy.''.
       (b) Institution Approval and Applications.--
       (1) In general.--Section 17(d) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(d)) is amended by 
     striking the subsection designation and all that follows 
     through the end of paragraph (1) and inserting the following:
       ``(d) Institution Approval and Applications.--
       ``(1) Institution approval.--
       ``(A) Administrative capability.--Subject to subparagraph 
     (B) and except as provided in subparagraph (C), the State 
     agency shall approve an institution that meets the 
     requirements of this section for participation in the child 
     and adult care food program if the State agency determines 
     that the institution--
       ``(i) is financially viable;
       ``(ii) is administratively capable of operating the program 
     (including whether the sponsoring organization has business 
     experience and management plans appropriate to operate the 
     program) described in the application of the institution; and
       ``(iii) has internal controls in effect to ensure program 
     accountability.
       ``(B) Approval of private institutions.--
       ``(i) In general.--In addition to the requirements 
     established by subparagraph (A) and subject to clause (ii), 
     the State agency shall approve a private institution that 
     meets the requirements of this section for participation in 
     the child and adult care food program only if--

       ``(I) the State agency conducts a satisfactory visit to the 
     institution before approving the participation of the 
     institution in the program; and
       ``(II) the institution--

       ``(aa) has tax exempt status under the Internal Revenue 
     Code of 1986;
       ``(bb) is operating a Federal program requiring nonprofit 
     status to participate in the program; or
       ``(cc) is described in subsection (a)(2)(B).
       ``(ii) Exception for family or group day care homes.--
     Clause (i) shall not apply to a family or group day care 
     home.
       ``(C) Exception for certain sponsoring organizations.--
       ``(i) In general.--The State agency may approve an eligible 
     institution acting as a sponsoring organization for 1 or more 
     family or group day care homes or centers that, at the time 
     of application, is not participating in the child and adult 
     care food program only if the State agency determines that--

       ``(I) the institution meets the requirements established by 
     subparagraphs (A) and (B); and
       ``(II) the participation of the institution will help to 
     ensure the delivery of benefits to otherwise unserved family 
     or group day care homes or centers or to unserved children in 
     an area.

       ``(ii) Criteria for selection.--The State agency shall 
     establish criteria for approving an eligible institution 
     acting as a sponsoring organization for 1 or more family or 
     group day care homes or centers that, at the time of 
     application, is not participating in the child and adult care 
     food program for the purpose of determining if the 
     participation of the institution will help ensure the 
     delivery of benefits to otherwise unserved family or group 
     day care homes or centers or to unserved children in an area.
       ``(D) Notification to applicants.--Not later than 30 days 
     after the date on which an applicant institution files a 
     completed application

[[Page 9186]]

     with the State agency, the State agency shall notify the 
     applicant institution whether the institution has been 
     approved or disapproved to participate in the child and adult 
     care food program.''.
       (2) Site visits.--Section 17(d)(2)(A) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766(d)(2)(A)) 
     is amended--
       (A) in clause (i), by striking ``; and'' and inserting a 
     semicolon;
       (B) by redesignating clause (ii) as clause (iii); and
       (C) by inserting after clause (i) the following:
       ``(ii)(I) requires periodic unannounced site visits at not 
     less than 3-year intervals to sponsored child care centers 
     and family or group day care homes to identify and prevent 
     management deficiencies and fraud and abuse under the 
     program;
       ``(II) requires at least 1 scheduled site visit each year 
     to sponsored child care centers and family or group day care 
     homes to identify and prevent management deficiencies and 
     fraud and abuse under the program and to improve program 
     operations; and
       ``(III) requires at least 1 scheduled site visit at not 
     less than 3-year intervals to sponsoring organizations and 
     nonsponsored child care centers to identify and prevent 
     management deficiencies and fraud and abuse under the program 
     and to improve program operations; and''.
       (3) Conforming amendment.--Section 17(d)(2)(B) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1766(d)(2)(B)) is amended by striking ``subsection (a)(1)'' 
     and inserting ``subsection (a)(5)''.
       (4) Program information.--
       (A) In general.--Section 17(d) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(d)) is amended by 
     adding at the end the following:
       ``(3) Program information.--
       ``(A) In general.--On enrollment of a child in a sponsored 
     child care center or family or group day care home 
     participating in the program, the center or home (or its 
     sponsoring organization) shall provide to the child's parents 
     or guardians--
       ``(i) information that describes the program and its 
     benefits; and
       ``(ii) the name and telephone number of the sponsoring 
     organization of the center or home and the State agency 
     involved in the operation of the program.
       ``(B) Form.--The information described in subparagraph (A) 
     shall be in a form and, to the maximum extent practicable, 
     language easily understandable by the child's parents or 
     guardians.''.
       (B) Effective date.--In the case of a child that is 
     enrolled in a sponsored child care center or family or group 
     day care home participating in the child and adult care food 
     program under section 17 of the Richard B. Russell National 
     School Lunch Act (42 U.S.C. 1766) before the date of the 
     enactment of this Act, the center or home shall provide 
     information to the child's parents or guardians pursuant to 
     section 17(d)(3) of that Act, as added by subparagraph (A), 
     not later than 90 days after the date of the enactment of 
     this Act.
       (5) Allowable administrative expenses for sponsoring 
     organizations.--Section 17(d) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(d)), as amended by 
     paragraph (4)(A), is amended by adding at the end the 
     following:
       ``(4) Allowable administrative expenses for sponsoring 
     organizations.--In consultation with State agencies and 
     sponsoring organizations, the Secretary shall develop, and 
     provide for the dissemination to State agencies and 
     sponsoring organizations of, a list of allowable reimbursable 
     administrative expenses for sponsoring organizations under 
     the program.''.
       (c) Termination or Suspension of Participating 
     Organizations.--Section 17(d) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(d)), as amended by 
     subsection (b)(5), is amended by adding at the end the 
     following:
       ``(5) Termination or suspension of participating 
     organizations.--
       ``(A) In general.--The Secretary shall establish procedures 
     for the termination of participation by institutions and 
     family or group day care homes under the program.
       ``(B) Standards.--Procedures established pursuant to 
     subparagraph (A) shall include standards for terminating the 
     participation of an institution or family or group day care 
     home that--
       ``(i) engages in unlawful practices, falsifies information 
     provided to the State agency, or conceals a criminal 
     background; or
       ``(ii) substantially fails to fulfill the terms of its 
     agreement with the State agency.
       ``(C) Corrective action.--Procedures established pursuant 
     to subparagraph (A)--
       ``(i) shall require an entity described in subparagraph (B) 
     to undertake corrective action; and
       ``(ii) may require the immediate suspension of operation of 
     the program by an entity described in subparagraph (B), 
     without the opportunity for corrective action, if the State 
     agency determines that there is imminent threat to the health 
     or safety of a participant at the entity or the entity 
     engages in any activity that poses a threat to public health 
     or safety.
       ``(D) Hearing.--An institution or family or group day care 
     home shall be provided a fair hearing in accordance with 
     subsection (e)(1) prior to any determination to terminate 
     participation by the institution or family or group day care 
     home under the program.
       ``(E) List of disqualified institutions and individuals.--
       ``(i) In general.--The Secretary shall maintain a list of 
     institutions, sponsored family or group day care homes, and 
     individuals that have been terminated or otherwise 
     disqualified from participation in the program.
       ``(ii) Availability.--The Secretary shall make the list 
     available to State agencies for use in approving or renewing 
     applications by institutions, sponsored family or group day 
     care homes, and individuals for participation in the 
     program.''.
       (d) Recovery of Amounts From Institutions.--Section 
     17(f)(1) of the Richard B. Russell National School Lunch Act 
     (42 U.S.C. 1766(f)(1)) is amended--
       (1) by striking ``(f)(1) Funds paid'' and inserting the 
     following:
       ``(f) State Disbursements to Institutions.--
       ``(1) In general.--
       ``(A) Requirement.--Funds paid''; and
       (2) by adding at the end the following:
       ``(B) Fraud or abuse.--
       ``(i) In general.--The State may recover funds disbursed 
     under subparagraph (A) to an institution if the State 
     determines that the institution has engaged in fraud or abuse 
     with respect to the program or has submitted an invalid claim 
     for reimbursement.
       ``(ii) Payment.--Amounts recovered under clause (i)--

       ``(I) may be paid by the institution to the State over a 
     period of 1 or more years; and
       ``(II) shall not be paid from funds used to provide meals 
     and supplements.

       ``(iii) Hearing.--An institution shall be provided a fair 
     hearing in accordance with subsection (e)(1) prior to any 
     determination to recover funds under this subparagraph.''.
       (e) Limitation on Administrative Expenses for Certain 
     Sponsoring Organizations.--Section 17(f)(2) of the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1766(f)(2)) is 
     amended by adding at the end the following:
       ``(C) Limitation on administrative expenses for certain 
     sponsoring organizations.--
       ``(i) In general.--Except as provided in clause (ii), a 
     sponsoring organization of a day care center may reserve not 
     more than 15 percent of the funds provided under paragraph 
     (1) for the administrative expenses of the organization.
       ``(ii) Waiver.--A State may waive the requirement in clause 
     (i) with respect to a sponsoring organization if the 
     organization provides justification to the State that the 
     organization requires funds in excess of 15 percent of the 
     funds provided under paragraph (1) to pay the administrative 
     expenses of the organization.''.
       (f) Limitations on Ability of Family or Group Day Care 
     Homes to Transfer Sponsoring Organizations.--Section 17(f)(3) 
     of the Richard B. Russell National School Lunch Act (42 
     U.S.C. 1766(f)(3)) is amended by striking subparagraph (D) 
     and inserting the following:
       ``(D) Limitations on ability of family or group day care 
     homes to transfer sponsoring organizations.--
       ``(i) In general.--Subject to clause (ii), a State agency 
     shall limit the ability of a family or group day care home to 
     transfer from a sponsoring organization to another sponsoring 
     organization more frequently than once a year
       ``(ii) Good cause.--The State agency may permit or require 
     a family or group day care home to transfer from a sponsoring 
     organization to another sponsoring organization more 
     frequently than once a year for good cause (as determined by 
     the State agency), including circumstances in which the 
     sponsoring organization of the family or group day care home 
     ceases to participate in the child and adult care food 
     program.''.
       (g) Statewide Demonstration Projects Involving Private For-
     Profit Organizations That Provide Nonresidential Day Care 
     Services.--
       (1) In general.--Section 17(p) of the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1766(p)) is amended--
       (A) in the first sentence of paragraph (1), by striking ``2 
     statewide demonstration projects'' and inserting ``statewide 
     demonstration projects in 3 States''; and
       (B) in paragraph (3)--
       (i) by inserting ``in'' after ``subsection'';
       (ii) in subparagraph (A), by striking ``and'' at the end;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) 1 other State--
       ``(i) with fewer than 60,000 children below 5 years of age;
       ``(ii) that serves more than the national average 
     proportion of children potentially eligible for assistance 
     provided under the Child Care and Development Fund (as 
     indicated in data published by the Department of Health and 
     Human Services in October 1999);
       ``(iii) that exempts all families from cost sharing 
     requirements under programs funded by the Child Care and 
     Development Fund; and
       ``(iv) in which State spending represents more than 50 
     percent of total expenditures made under the Child Care and 
     Development Fund.''.
       (2) Effective date.--The Secretary may carry out 
     demonstration projects in the State described in section 
     17(p)(3)(C) of the Richard B. Russell National School Lunch 
     Act, as added by paragraph (1)(B)(iv), beginning not earlier 
     than October 1, 2001.
       (h) Technical and Training Assistance for Identification 
     and Prevention of Fraud and Abuse.--Section 17(q) of the 
     Richard B. Russell National School Lunch Act (42 U.S.C. 
     1766(q)) is amended--

[[Page 9187]]

       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following:
       ``(2) Technical and training assistance for identification 
     and prevention of fraud and abuse.--As part of training and 
     technical assistance provided under paragraph (1), the 
     Secretary shall provide training on a continuous basis to 
     State agencies, and shall ensure that such training is 
     provided to sponsoring organizations, for the identification 
     and prevention of fraud and abuse under the program and to 
     improve management of the program.''.
       (i) Program for At-Risk School Children.--Section 17(r) of 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1766(r)) is amended--
       (1) in paragraph (2), by inserting ``meals or'' before 
     ``supplements'';
       (2) in paragraph (4)--
       (A) in the heading, by striking ``Supplement'' and 
     inserting ``Meal and supplement'';
       (B) in subparagraph (A)--
       (i) by striking ``only for'' and all that follows through 
     ``(i) a supplement'' and inserting ``only for 1 meal per 
     child per day and 1 supplement per child per day'';
       (ii) by striking ``; and'' and inserting a period; and
       (iii) by striking clause (ii);
       (C) in subparagraph (B), by striking ``Rate.--A 
     supplement'' and inserting the following: ``Rates.--
       ``(i) Meals.--A meal shall be reimbursed under this 
     subsection at the rate established for free meals under 
     subsection (c).
       ``(ii) Supplements.--A supplement''; and
       (D) in subparagraph (C), by inserting ``meal or'' before 
     ``supplement''; and
       (3) by adding at the end the following:
       ``(5) Limitation.--The Secretary shall limit reimbursement 
     under this subsection for meals served under a program to 
     institutions located in 6 States, of which 4 States shall be 
     Pennsylvania, Missouri, Delaware, and Michigan and 2 States 
     shall be approved by the Secretary through a competitive 
     application process.''.
       (j) Withholding of Funds for Failure to Provide Sufficient 
     Training, Technical Assistance, and Monitoring.--Section 
     7(a)(9)(A) of the Child Nutrition Act of 1966 (42 U.S.C. 
     1776(a)(9)(A)) is amended by inserting after ``the Richard B. 
     Russell National School Lunch Act (42 U.S.C. 1751 et seq.)'' 
     the following: ``(including any requirement to provide 
     sufficient training, technical assistance, and monitoring of 
     the child and adult care food program under section 17 of 
     that Act (42 U.S.C. 1766))''.

     SEC. 244. ADJUSTMENTS TO WIC PROGRAM.

       (a) Definition.--Section 17(b) of the Child Nutrition Act 
     of 1966 (42 U.S.C. 1786(b)) is amended by adding at the end 
     the following:
       ``(21) Remote indian or native village.--The term `remote 
     Indian or Native village' means an Indian or Native village 
     that--
       ``(A) is located in a rural area;
       ``(B) has a population of less than 5,000 inhabitants; and
       ``(C) is not accessible year-around by means of a public 
     road (as defined in section 101 of title 23, United States 
     Code).''.
       (b) Cost-of-Living Allowances for Members of Uniformed 
     Services.--Section 17(d)(2)(B) of the Child Nutrition Act of 
     1966 (42 U.S.C. 1786(d)(2)(B)) is amended--
       (1) by striking ``income any'' and inserting ``income--
       ``(i) any'';
       (2) by striking ``quarters'' and inserting ``housing'';
       (3) by striking the period at the end and inserting ``; 
     and''; and
       (4) by adding at the end the following:
       ``(ii) any cost-of-living allowance provided under section 
     405 of title 37, United States Code, to a member of a 
     uniformed service who is on duty outside the continental 
     United States.''.
       (c) Proof of Residency.--Section 17(d)(3) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(d)(3)) is amended by 
     adding at the end the following:
       ``(F) Proof of residency.--An individual residing in a 
     remote Indian or Native village or an individual served by an 
     Indian tribal organization and residing on a reservation or 
     pueblo may, under standards established by the Secretary, 
     establish proof of residency under this section by providing 
     to the State agency the mailing address of the individual and 
     the name of the remote Indian or Native village.''.
       (d) Adjustment of Grant.--Section 17(h)(1)(B) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(h)(1)(B)) is amended--
       (1) in clause (i), by striking ``the fiscal year 1987'' and 
     inserting ``the preceding fiscal year''; and
       (2) in clause (ii)--
       (A) by striking ``the fiscal year 1987'' and inserting 
     ``the preceding fiscal year''; and
       (B) by striking subclause (I) and inserting the following:
       ``(I) the value of the index for State and local government 
     purchases, 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''.
       (e) Allocation of Funds.--Section 17(h)(5) of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786(h)(5)) is amended by 
     adding at the end the following:
       ``(D) Remote indian or native villages.--For noncontiguous 
     States containing a significant number of remote Indian or 
     Native villages, a State agency may convert amounts allocated 
     for food benefits for a fiscal year to the costs of nutrition 
     services and administration to the extent that the conversion 
     is necessary to cover expenditures incurred in providing 
     services (including the full cost of air transportation and 
     other transportation) to remote Indian or Native villages and 
     to provide breastfeeding support in remote Indian or Native 
     villages.''.
       (f) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section take effect on the date of 
     enactment of this Act.
       (2) Allocation of funds.--The amendments made by 
     subsections (d) and (e) take effect on October 1, 2000.
                       Subtitle F--Other Programs

     SEC. 251. AUTHORITY TO PROVIDE LOAN IN CONNECTION WITH BOLL 
                   WEEVIL ERADICATION.

       (a) Loan Authority.--Notwithstanding any other provision of 
     law, the Secretary, acting through the Farm Service Agency, 
     shall use $10,000,000 of funds of the Commodity Credit 
     Corporation to make a loan to the Texas Boll Weevil 
     Eradication Foundation, Inc., to enable the Foundation to 
     retire certain debt associated with boll weevil eradication 
     zones which have ended their participation, in whole or in 
     part, in the federally funded boll weevil eradication 
     program.
       (b) Repayment Terms and Conditions.--The loan provided 
     under subsection (a) shall be subject to the following terms 
     and conditions:
       (1) Repayment shall be scheduled to begin on January 1 of 
     the year following the first year during which the boll 
     weevil eradication zone, or any part thereof, responsible for 
     the debt retired using the loan resumes participation in any 
     federally funded boll weevil eradication program.
       (2) No interest shall be charged.
       (c) Limitation.--The cost of the loan made under this 
     section shall not exceed the loan subsidy sufficient to make 
     the loan.

     SEC. 252. ANIMAL DISEASE CONTROL.

       (a) Pseudorabies.--Of the amount made available under 
     section 261(a)(2), the Secretary shall use $7,000,000 to 
     cover pseudorabies vaccination costs incurred by pork 
     producers.
       (b) Bovine Tuberculosis.--Of the amount made available 
     under section 261(a)(2), the Secretary shall use $6,000,000 
     to respond to bovine tuberculosis in the State of Michigan. 
     The funds shall be available for the following purposes:
       (1) The surveillance and testing of cattle and wildlife.
       (2) Research regarding bovine tuberculosis, to be conducted 
     by the Agricultural Research Service and Michigan State 
     University.
       (3) The provision of increased indemnity payments to 
     encourage the depopulation of infected herds.
       (4) The performance of diagnostic testing and treatment of 
     humans affected by bovine tuberculosis.
       (5) Slaughter surveillance.
       (6) The control and prevention of the exposure of livestock 
     to infected wildlife, including the installation of fencing 
     to minimize contact between livestock and wildlife.
       (7) The distribution of information regarding the risk and 
     control of bovine tuberculosis, including technological 
     improvements to enhance communication.

     SEC. 253. EMERGENCY LOANS FOR SEED PRODUCERS.

       (a) In General.--Of the amount made available under section 
     261(a)(2), the Secretary shall use $35,000,000, plus $200,000 
     for payment of administrative costs, to make no-interest 
     loans to producers of the 1999 crop of grass, forage, 
     vegetable, and sorghum seed that have not received payments 
     from AgriBiotech for the seed as a result of bankruptcy 
     proceedings involving AgriBiotech (referred to in this 
     section as the ``bankruptcy proceedings'').
       (b) Loans.--
       (1) In general.--The amount of the loan made to a seed 
     producer under this section shall be not more than 65 percent 
     of the amount owed by AgriBiotech to the seed producer for 
     the 1999 seed crop, as determined by the Secretary.
       (2) Eligibility.--To be eligible for a loan under this 
     section, the claim of a seed producer in the bankruptcy 
     proceedings must have arisen from a contract to grow seeds in 
     the United States.
       (3) Control.--In determining the amount owed by AgriBiotech 
     to a seed producer under paragraph (1), the Secretary shall 
     consider whether the seed producer has relinquished control 
     of the seed to AgriBiotech or has the seed in inventory 
     waiting to be sold.
       (4) Security.--A loan to a seed producer under this section 
     shall be secured in part by the claim of the seed producer in 
     the bankruptcy proceedings.
       (5) Repayment.--Each seed producer shall repay to the 
     Secretary, for deposit in the Treasury, the amount of the 
     loan made to the seed producer on the earlier of--
       (A) the date of settlement of, completion of, or final 
     distribution of assets in the bankruptcy proceedings 
     involving AgriBiotech; or
       (B) the date that is 18 months after the date on which the 
     loan was made to the seed producer.
       (c) Additional Terms.--
       (1) Shortfall in amount received from bankruptcy 
     proceedings.--If the amount that the seed producer receives 
     as a result of the proceedings described in subsection 
     (b)(5)(A) is less than the amount of the loan made to the 
     seed producer under subsection (b)(1), the seed producer 
     shall be eligible to have the balance of the loan converted, 
     but not refinanced, to a loan that has the same terms and 
     conditions as an operating loan under subtitle B of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1941 et 
     seq.).

[[Page 9188]]

       (2) Lengthy bankruptcy proceedings.--If a seed producer is 
     required to repay a loan under subsection (b)(5)(B), the seed 
     producer shall be eligible to have the balance of the loan 
     converted, but not refinanced, to a loan that has the same 
     terms and conditions as an operating loan under subtitle B of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1941 et seq.).
       (d) Limitation.--The cost of all loans made under this 
     section shall not exceed $15,000,000.

     SEC. 254. TEMPORARY SUSPENSION OF AUTHORITY TO COMBINE 
                   CERTAIN OFFICES.

       (a) Suspension.--During the period beginning on the date of 
     enactment of this Act and ending on June 1, 2001, the 
     Secretary may not combine or take any action to combine, at 
     the State level, offices of the agencies specified in 
     subsection (b) unless the offices are located in the same 
     county as of the date of enactment of this Act.
       (b) Covered Offices.--Subsection (a) applies to an office 
     of any of the following agencies:
       (1) The Farm Service Agency.
       (2) The Natural Resources Conservation Service.
       (3) The Rural Utilities Service.
       (4) The Rural Housing Service.
       (5) The Rural Business-Cooperative Service.
       (c) Report.--Not later than April 1, 2001, 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 any proposed 
     combination of offices specified in subsection (b) that 
     includes a certification that the proposed combination would 
     result in the lowest cost to the Federal Government over the 
     long term.

     SEC. 255. FARM OPERATING LOAN ELIGIBILITY.

       During the period beginning on the date of enactment of 
     this Act and ending on December 31, 2002--
       (1) sections 311(c) and 319 of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1941(c), 1949) shall have no 
     force or effect; and
       (2) in making direct loans under subtitle B of that Act (7 
     U.S.C. 1941 et seq.), the Secretary shall give priority to a 
     qualified beginning farmer or rancher who has not operated a 
     farm or ranch, or who has operated a farm or ranch for not 
     more than 5 years.

     SEC. 256. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

       Section 306D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1926d) is amended by striking subsection (d) 
     and inserting the following:
       ``(d) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $30,000,000 for each of fiscal 
     years 2001 and 2002.
       ``(2) Training and technical assistance.--Not more than 2 
     percent of the amount made available under paragraph (1) for 
     a fiscal year may be used by the State of Alaska for training 
     and technical assistance programs relating to the operation 
     and management of water and waste disposal services in rural 
     and Native villages.
       ``(3) Availability.--Funds appropriated pursuant to the 
     authorization of appropriations in paragraph (1) shall be 
     available until expended.''.

     SEC. 257. CROP AND PASTURE FLOOD COMPENSATION PROGRAM.

       (a) Definition of Covered Land.--In this section:
       (1) In general.--The term ``covered land'' means land 
     that--
       (A) was unusable for agricultural production during the 
     2000 crop year as the result of flooding;
       (B) was used for agricultural production during at least 1 
     of the 1992 through 1999 crop years;
       (C) is a contiguous parcel of land of at least 1 acre; and
       (D) is located in a county in which producers were eligible 
     for assistance under the 1998 Flood Compensation Program 
     established under part 1439 of title 7, Code of Federal 
     Regulations.
       (2) Exclusions.--The term ``covered land'' excludes any 
     land for which a producer is insured, enrolled, or assisted 
     during the 2000 crop year under--
       (A) a policy or plan of insurance authorized under the 
     Federal Crop Insurance Act (7 U.S.C. 1501 et seq.);
       (B) the noninsured crop assistance program operated under 
     section 196 of the Agricultural Market Transition Act (7 
     U.S.C. 7333);
       (C) any crop disaster program established for the 2000 crop 
     year;
       (D) the conservation reserve program established under 
     subchapter B of chapter 1 of subtitle D of the Food Security 
     Act of 1985 (16 U.S.C. 3831 et seq.);
       (E) the wetlands reserve program established under 
     subchapter C of chapter 1 of subtitle D of the Food Security 
     Act of 1985 (16 U.S.C. 3837 et seq.);
       (F) any emergency watershed protection program or Federal 
     easement program that prohibits crop production or grazing; 
     or
       (G) any other Federal or State water storage program, as 
     determined by the Secretary.
       (b) Compensation.--The Secretary shall use not more than 
     $24,000,000 of funds of the Commodity Credit Corporation to 
     compensate producers with covered land described with respect 
     to losses from long-term flooding.
       (c) Payment Rate.--The payment rate for compensation 
     provided to a producer under this section shall equal the 
     average county cash rental rate per acre established by the 
     National Agricultural Statistics Service for the 2000 crop 
     year.
       (d) Payment Limitation.--The total amount of payments made 
     to a person (as defined in section 1001(5) of the Food 
     Security Act (7 U.S.C. 1308(5))) under this section may not 
     exceed $40,000.
       (e) Conforming Amendment.--H.R. 3425 of the 106th Congress 
     (as enacted into law by section 1000(a)(5) of Public Law 106-
     113 (113 Stat. 1535) and included as Appendix E of that 
     Public Law (113 Stat. 1501A-289)) is amended in section 207 
     (113 Stat. 1501A-294) by inserting ``or Lake'' after 
     ``Harney''.

     SEC. 258. FLOOD MITIGATION NEAR PIERRE, SOUTH DAKOTA.

       (a) Requirement.--Subject to subsection (b), as soon as 
     practicable after the date of enactment of this Act, with 
     respect to land and property described in the Flood 
     Mitigation Study and Project Implementation Plan for the 
     Missouri River near Pierre, South Dakota, prepared by the 
     Omaha District Corps of Engineers, dated August 12, 1999, the 
     Secretary of the Army shall--
       (1) acquire the land and property from willing sellers; and
       (2)(A) floodproof the land;
       (B) relocate individuals located on the land;
       (C) improve infrastructure on the land; or
       (D) take other measures determined by the Secretary.
       (b) Releases.--
       (1) In general.--The Secretary shall not proceed with full 
     wintertime Oahe Powerplant releases until the Secretary 
     amends the economic analysis in effect on the date of 
     enactment of this Act to include an assumption that the 
     Federal Government is responsible for mitigating any existing 
     ground water flooding to the land and property described in 
     subsection (a).
       (2) Reduction.--To the extent the Secretary identifies 
     benefits of mitigating any existing ground water flooding, 
     full wintertime Oahe Powerplant releases shall be reduced 
     consistent with the economic analysis described in paragraph 
     (1).
       (3) Minimum level.--This subsection shall not permit Oahe 
     Powerplant releases to be reduced below existing operational 
     levels.

     SEC. 259. RESTORATION OF ELIGIBILITY FOR CROP LOSS 
                   ASSISTANCE.

       (a) Effect of Change in Legal Structure.--In the case of an 
     individual or entity that was not eligible for a payment 
     pursuant to subsection (c) of section 1102 of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 1999 (as contained 
     in section 101(a) of division A of Public Law 105-277; 7 
     U.S.C. 1421 note), solely because the individual or entity 
     changed the legal structure of the individual's or entity's 
     farming operation, the individual or entity shall be eligible 
     for the payment the individual or entity would have received 
     pursuant to that subsection had the individual or entity not 
     changed the legal structure, less the amount of any payment 
     received by the individual or entity pursuant to subsection 
     (b) of that section.
       (b) Multiple Farming Operations.--
       (1) Eligible individuals.--In the case of an individual not 
     described in subsection (a) that farmed acreage as a producer 
     as a part of more than one farming operation, none of which 
     received a payment pursuant to subsection (c) of section 1102 
     of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 
     1999, the individual shall be eligible for a payment pursuant 
     to that subsection for losses that the Secretary determines 
     would have been eligible for compensation with respect to 
     that acreage based on the individual's interest in the 
     production from that acreage.
       (2) Reduction.--A payment made pursuant to paragraph (1) to 
     an individual shall be reduced by the amount of a payment 
     made pursuant to subsection (b) of that section 1102 
     attributed directly or indirectly to the individual with 
     respect to the acreage described in paragraph (1).
                       Subtitle G--Administration

     SEC. 261. FUNDING.

       (a) Payment.--Out of any moneys in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     provide to the Secretary the following:
       (1) $34,000,000 for fiscal year 2000 to carry out section 
     241(a).
       (2) $465,500,000 for fiscal year 2001 to carry out the 
     following:
       (A) Section 203 (other than subsection (f)).
       (B) Subtitle C.
       (C) Section 231.
       (D) Section 241 (other than subsection (a)).
       (E) Sections 252 and 253.
       (b) Acceptance.--The Secretary shall be entitled to receive 
     the funds and shall accept the funds, without further 
     appropriation.

     SEC. 262. OBLIGATION PERIOD.

       Except as otherwise provided in this title, the Secretary 
     and the Commodity Credit Corporation shall obligate and 
     expend--
       (1) funds made available under section 261(a)(1) only 
     during fiscal year 2000; and
       (2) funds made available under section 261(a)(2), and funds 
     of the Commodity Credit Corporation made available under this 
     title, only during fiscal year 2001.

     SEC. 263. REGULATIONS.

       (a) Promulgation.--As soon as practicable after the date of 
     enactment of this Act, the Secretary and the Commodity Credit 
     Corporation, as appropriate, shall promulgate such 
     regulations as are necessary to implement this title and the 
     amendments made by this title. The promulgation of the 
     regulations and administration of this title shall be made 
     without regard to--

[[Page 9189]]

       (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'').
       (b) 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. 264. PAYGO ADJUSTMENT.

       The Director of the Office of Management and Budget shall 
     not make any estimates of changes in direct spending outlays 
     and receipts under section 252(d) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 902(d)) 
     resulting from enactment of this title.

     SEC. 265. COMMODITY CREDIT CORPORATION REIMBURSEMENT.

       Out of any moneys in the Treasury not otherwise 
     appropriated, the Secretary of the Treasury shall use such 
     sums as may be necessary to reimburse the Commodity Credit 
     Corporation for net realized losses sustained, but not 
     previously reimbursed, under this title.
        TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Biomass Research and 
     Development Act of 2000''.

     SEC. 302. FINDINGS.

       Congress finds that--
       (1) conversion of biomass into biobased industrial products 
     offers outstanding potential for benefit to the national 
     interest through--
       (A) improved strategic security and balance of payments;
       (B) healthier rural economies;
       (C) improved environmental quality;
       (D) near-zero net greenhouse gas emissions;
       (E) technology export; and
       (F) sustainable resource supply;
       (2) the key technical challenges to be overcome in order 
     for biobased industrial products to be cost-competitive are 
     finding new technology and reducing the cost of technology 
     for converting biomass into desired biobased industrial 
     products;
       (3) biobased fuels, such as ethanol, have the clear 
     potential to be sustainable, low cost, and high performance 
     fuels that are compatible with both current and future 
     transportation systems and provide near-zero net greenhouse 
     gas emissions;
       (4) biobased chemicals have the clear potential for 
     environmentally benign product life cycles;
       (5) biobased power can--
       (A) provide environmental benefits;
       (B) promote rural economic development; and
       (C) diversify energy resource options;
       (6) many biomass feedstocks suitable for industrial 
     processing show the clear potential for sustainable 
     production, in some cases resulting in improved soil 
     fertility and carbon sequestration;
       (7)(A) grain processing mills are biorefineries that 
     produce a diversity of useful food, chemical, feed, and fuel 
     products; and
       (B) technologies that result in further diversification of 
     the range of value-added biobased industrial products can 
     meet a key need for the grain processing industry;
       (8)(A) cellulosic feedstocks are attractive because of 
     their low cost and widespread availability; and
       (B) research resulting in cost-effective technology to 
     overcome the recalcitrance of cellulosic biomass would allow 
     biorefineries to produce fuels and bulk chemicals on a very 
     large scale, with a commensurately large realization of the 
     benefit described in paragraph (1);
       (9) research into the fundamentals to understand important 
     mechanisms of biomass conversion can be expected to 
     accelerate the application and advancement of biomass 
     processing technology by--
       (A) increasing the confidence and speed with which new 
     technologies can be scaled up; and
       (B) giving rise to processing innovations based on new 
     knowledge;
       (10) the added utility of biobased industrial products 
     developed through improvements in processing technology would 
     encourage the design of feedstocks that would meet future 
     needs more effectively;
       (11) the creation of value-added biobased industrial 
     products would create new jobs in construction, 
     manufacturing, and distribution, as well as new higher-valued 
     exports of products and technology;
       (12)(A) because of the relatively short-term time horizon 
     characteristic of private sector investments, and because 
     many benefits of biomass processing are in the national 
     interest, it is appropriate for the Federal Government to 
     provide precommercial investment in fundamental research and 
     research-driven innovation in the biomass processing area; 
     and
       (B) such an investment would provide a valuable complement 
     to ongoing and past governmental support in the biomass 
     processing area; and
       (13) several prominent studies, including studies by the 
     President's Committee of Advisors on Science and Technology 
     and the National Research Council--
       (A) support the potential for large research-driven 
     advances in technologies for production of biobased 
     industrial products as well as associated benefits; and
       (B) document the need for a focused, integrated, and 
     innovation-driven research effort to provide the appropriate 
     progress in a timely manner.

     SEC. 303. DEFINITIONS.

       In this title:
       (1) Advisory committee.--The term ``Advisory Committee'' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by section 306.
       (2) Biobased industrial product.--The term ``biobased 
     industrial product'' means fuels, chemicals, building 
     materials, or electric power or heat produced from biomass.
       (3) Biomass.--The term ``biomass'' means any organic matter 
     that is available on a renewable or recurring basis, 
     including agricultural crops and trees, wood and wood wastes 
     and residues, plants (including aquatic plants), grasses, 
     residues, fibers, and animal wastes, municipal wastes, and 
     other waste materials.
       (4) Board.--The term ``Board'' means the Biomass Research 
     and Development Board established by section 305.
       (5) Initiative.--The term ``Initiative'' means the Biomass 
     Research and Development Initiative established under section 
     307.
       (6) Institution of higher education.--The term 
     ``institution of higher education'' has the meaning given the 
     term in section 102(a) of the Higher Education Act of 1965 
     (20 U.S.C. 1002(a)).
       (7) National laboratory.--The term ``national laboratory'' 
     has the meaning given the term ``laboratory'' in section 
     12(d) of the Stevenson-Wydler Technology Innovation Act of 
     1980 (15 U.S.C. 3710a(d)).
       (8) Point of contact.--The term ``point of contact'' means 
     a point of contact designated under section 304(d).
       (9) Processing.--The term ``processing'' means the 
     derivation of biobased industrial products from biomass, 
     including--
       (A) feedstock production;
       (B) harvest and handling;
       (C) pretreatment or thermochemical processing;
       (D) fermentation;
       (E) catalytic processing;
       (F) product recovery; and
       (G) coproduct production.
       (10) Research and development.--The term ``research and 
     development'' means research, development, and demonstration.

     SEC. 304. COOPERATION AND COORDINATION IN BIOMASS RESEARCH 
                   AND DEVELOPMENT.

       (a) In General.--The Secretary of Agriculture and the 
     Secretary of Energy shall cooperate with respect to, and 
     coordinate, policies and procedures that promote research and 
     development leading to the production of biobased industrial 
     products.
       (b) Purposes.--The purposes of the cooperation and 
     coordination shall be--
       (1) to understand the key mechanisms underlying the 
     recalcitrance of biomass for conversion into biobased 
     industrial products;
       (2) to develop new and cost-effective technologies that 
     would result in large-scale commercial production of low cost 
     and sustainable biobased industrial products;
       (3) to ensure that biobased industrial products are 
     developed in a manner that enhances their economic, energy 
     security, and environmental benefits; and
       (4) to promote the development and use of agricultural and 
     energy crops for conversion into biobased industrial 
     products.
       (c) Areas.--In carrying out this title, the Secretary of 
     Agriculture and the Secretary of Energy, in consultation with 
     heads of appropriate departments and agencies, shall promote 
     research and development--
       (1) to advance the availability and widespread use of 
     energy efficient, economically competitive, and 
     environmentally sound biobased industrial products in a 
     manner that is consistent with the goals of the United States 
     relating to sustainable and secure supplies of food, 
     chemicals, and fuel;
       (2) to ensure full consideration of Federal land and land 
     management programs as potential feedstock resources for 
     biobased industrial products; and
       (3) to assess the environmental, economic, and social 
     impact of production of biobased industrial products from 
     biomass on a large scale.
       (d) Points of Contact.--
       (1) In general.--To coordinate research and development 
     programs and activities relating to biobased industrial 
     products that are carried out by their respective 
     Departments--
       (A) the Secretary of Agriculture shall designate, as the 
     point of contact for the Department of Agriculture, an 
     officer of the Department of Agriculture appointed by the 
     President to a position in the Department before the date of 
     the designation, by and with the advice and consent of the 
     Senate; and
       (B) the Secretary of Energy shall designate, as the point 
     of contact for the Department of Energy, an officer of the 
     Department of Energy appointed by the President to a position 
     in the Department before the date of the designation, by and 
     with the advice and consent of the Senate.
       (2) Duties.--The points of contact shall jointly--
       (A) assist in arranging interlaboratory and site-specific 
     supplemental agreements for research and development projects 
     relating to biobased industrial products;
       (B) serve as cochairpersons of the Board;
       (C) administer the Initiative; and
       (D) respond in writing to each recommendation of the 
     Advisory Committee made under section 306(c).

[[Page 9190]]



     SEC. 305. BIOMASS RESEARCH AND DEVELOPMENT BOARD.

       (a) Establishment.--There is established the Biomass 
     Research and Development Board, which shall supersede the 
     Interagency Council on Biobased Products and Bioenergy 
     established by Executive Order 13134, to coordinate programs 
     within and among departments and agencies of the Federal 
     Government for the purpose of promoting the use of biobased 
     industrial products by--
       (1) maximizing the benefits deriving from Federal grants 
     and assistance; and
       (2) bringing coherence to Federal strategic planning.
       (b) Membership.--The Board shall consist of--
       (1) the point of contact of the Department of Energy 
     designated under section 304(d)(1)(B), who shall serve as 
     cochairperson of the Board;
       (2) the point of contact of the Department of Agriculture 
     designated under section 304(d)(1)(A), who shall serve as 
     cochairperson of the Board;
       (3) a senior officer of each of the Department of the 
     Interior, the Environmental Protection Agency, the National 
     Science Foundation, and the Office of Science and Technology 
     Policy, each of whom shall--
       (A) be appointed by the head of the respective agency; and
       (B) have a rank that is equivalent to the rank of the 
     points of contact; and
       (4) at the option of the Secretary of Agriculture and the 
     Secretary of Energy, other members appointed by the 
     Secretaries (after consultation with the members described in 
     paragraphs (1) through (3)).
       (c) Duties.--The Board shall--
       (1) coordinate research and development activities relating 
     to biobased industrial products--
       (A) between the Department of Agriculture and the 
     Department of Energy; and
       (B) with other departments and agencies of the Federal 
     Government; and
       (2) provide recommendations to the points of contact 
     concerning administration of this title.
       (d) Funding.--Each agency represented on the Board is 
     encouraged to provide funds for any purpose under this title.
       (e) Meetings.--The Board shall meet at least quarterly to 
     enable the Board to carry out the duties of the Board under 
     subsection (c).

     SEC. 306. BIOMASS RESEARCH AND DEVELOPMENT TECHNICAL ADVISORY 
                   COMMITTEE.

       (a) Establishment.--There is established the Biomass 
     Research and Development Technical Advisory Committee, which 
     shall supersede the Advisory Committee on Biobased Products 
     and Bioenergy established by Executive Order 13134--
       (1) to advise the Secretary of Energy, the Secretary of 
     Agriculture, and the points of contact concerning--
       (A) the technical focus and direction of requests for 
     proposals issued under the Initiative; and
       (B) procedures for reviewing and evaluating the proposals;
       (2) to facilitate consultations and partnerships among 
     Federal and State agencies, agricultural producers, industry, 
     consumers, the research community, and other interested 
     groups to carry out program activities relating to the 
     Initiative; and
       (3) to evaluate and perform strategic planning on program 
     activities relating to the Initiative.
       (b) Membership.--
       (1) In general.--The Advisory Committee shall consist of--
       (A) an individual affiliated with the biobased industrial 
     products industry;
       (B) an individual affiliated with an institution of higher 
     education who has expertise in biobased industrial products;
       (C) 2 prominent engineers or scientists from government or 
     academia who have expertise in biobased industrial products;
       (D) an individual affiliated with a commodity trade 
     association;
       (E) an individual affiliated with an environmental or 
     conservation organization;
       (F) an individual associated with State government who has 
     expertise in biobased industrial products;
       (G) an individual with expertise in energy analysis;
       (H) an individual with expertise in the economics of 
     biobased industrial products;
       (I) an individual with expertise in agricultural economics; 
     and
       (J) at the option of the points of contact, other members.
       (2) Appointment.--The members of the Advisory Committee 
     shall be appointed by the points of contact.
       (c) Duties.--The Advisory Committee shall--
       (1) advise the points of contact with respect to the 
     Initiative; and
       (2) evaluate whether, and make recommendations in writing 
     to the Board to ensure that--
       (A) funds authorized for the Initiative are distributed and 
     used in a manner that is consistent with the goals of the 
     Initiative;
       (B) the points of contact are funding proposals under this 
     title that are selected on the basis of merit, as determined 
     by an independent panel of scientific and technical peers; 
     and
       (C) activities under this title are carried out in 
     accordance with this title.
       (d) Coordination.--To avoid duplication of effort, the 
     Advisory Committee shall coordinate its activities with those 
     of other Federal advisory committees working in related 
     areas.
       (e) Meetings.--The Advisory Committee shall meet at least 
     quarterly to enable the Advisory Committee to carry out the 
     duties of the Advisory Committee under subsection (c).
       (f) Terms.--Members of the Advisory Committee shall be 
     appointed for a term of 3 years, except that--
       (1) \1/3\ of the members initially appointed shall be 
     appointed for a term of 1 year; and
       (2) \1/3\ of the members initially appointed shall be 
     appointed for a term of 2 years.

     SEC. 307. BIOMASS RESEARCH AND DEVELOPMENT INITIATIVE.

       (a) In General.--The Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, shall 
     establish and carry out a Biomass Research and Development 
     Initiative under which competitively awarded grants, 
     contracts, and financial assistance are provided to, or 
     entered into with, eligible entities to carry out research on 
     biobased industrial products.
       (b) Purposes.--The purposes of grants, contracts, and 
     assistance under this section shall be--
       (1) to stimulate collaborative activities by a diverse 
     range of experts in all aspects of biomass processing for the 
     purpose of conducting fundamental and innovation-targeted 
     research and technology development;
       (2) to enhance creative and imaginative approaches toward 
     biomass processing that will serve to develop the next 
     generation of advanced technologies making possible low cost 
     and sustainable biobased industrial products;
       (3) to strengthen the intellectual resources of the United 
     States through the training and education of future 
     scientists, engineers, managers, and business leaders in the 
     field of biomass processing; and
       (4) to promote integrated research partnerships among 
     colleges, universities, national laboratories, Federal and 
     State research agencies, and the private sector as the best 
     means of overcoming technical challenges that span multiple 
     research and engineering disciplines and of gaining better 
     leverage from limited Federal research funds.
       (c) Eligible Entities.--
       (1) In general.--To be eligible for a grant, contract, or 
     assistance under this section, an applicant shall be--
       (A) an institution of higher education;
       (B) a national laboratory;
       (C) a Federal research agency;
       (D) a State research agency;
       (E) a private sector entity;
       (F) a nonprofit organization; or
       (G) a consortium of 2 or more entities described in 
     subparagraphs (A) through (F).
       (2) Administration.--After consultation with the Board, the 
     points of contact shall--
       (A) publish annually 1 or more joint requests for proposals 
     for grants, contracts, and assistance under this section;
       (B) establish a priority in grants, contracts, and 
     assistance under this section for research that--
       (i) demonstrates potential for significant advances in 
     biomass processing;
       (ii) demonstrates potential to substantially further scale-
     sensitive national objectives such as--

       (I) sustainable resource supply;
       (II) reduced greenhouse gas emissions;
       (III) healthier rural economies; and
       (IV) improved strategic security and trade balances; and

       (iii) would improve knowledge of important biomass 
     processing systems that demonstrate potential for commercial 
     applications;
       (C) require that grants, contracts, and assistance under 
     this section be awarded competitively, on the basis of merit, 
     after the establishment of procedures that provide for 
     scientific peer review by an independent panel of scientific 
     and technical peers; and
       (D) give preference to applications that--
       (i) involve a consortia of experts from multiple 
     institutions; and
       (ii) encourage the integration of disciplines and 
     application of the best technical resources.
       (d) Uses of Grants, Contracts, and Assistance.--A grant, 
     contract, or assistance under this section may be used to 
     conduct--
       (1) research on process technology for overcoming the 
     recalcitrance of biomass, including research on key 
     mechanisms, advanced technologies, and demonstration test 
     beds for--
       (A) feedstock pretreatment and hydrolysis of cellulose and 
     hemicellulose, including new technologies for--
       (i) enhanced sugar yields;
       (ii) lower overall chemical use;
       (iii) less costly materials; and
       (iv) cost reduction;
       (B) development of novel organisms and other approaches to 
     substantially lower the cost of cellulase enzymes and 
     enzymatic hydrolysis, including dedicated cellulase 
     production and consolidated bioprocessing strategies; and
       (C) approaches other than enzymatic hydrolysis for 
     overcoming the recalcitrance of cellulosic biomass;
       (2) research on technologies for diversifying the range of 
     products that can be efficiently and cost-competitively 
     produced from biomass, including research on--
       (A) metabolic engineering of biological systems (including 
     the safe use of genetically modified crops) to produce novel 
     products, especially commodity products, or to increase 
     product selectivity and tolerance, with a research priority 
     for the development of biobased industrial products that can 
     compete in performance and cost with fossil-based products;
       (B) catalytic processing to convert intermediates of 
     biomass processing into products of interest;

[[Page 9191]]

       (C) separation technologies for cost-effective product 
     recovery and purification;
       (D) approaches other than metabolic engineering and 
     catalytic conversion of intermediates of biomass processing;
       (E) advanced biomass gasification technologies, including 
     coproduction of power and heat as an integrated component of 
     biomass processing, with the possibility of generating excess 
     electricity for sale; and
       (F) related research in advanced turbine and stationary 
     fuel cell technology for production of electricity from 
     biomass; and
       (3) research aimed at ensuring the environmental 
     performance and economic viability of biobased industrial 
     products and their raw material input of biomass when 
     considered as an integrated system, including research on--
       (A) the analysis of, and strategies to enhance, the 
     environmental performance and sustainability of biobased 
     industrial products, including research on--
       (i) accurate measurement and analysis of greenhouse gas 
     emissions, carbon sequestration, and carbon cycling in 
     relation to the life cycle of biobased industrial products 
     and feedstocks with respect to other alternatives;
       (ii) evaluation of current and future biomass resource 
     availability;
       (iii) development and analysis of land management practices 
     and alternative biomass cropping systems that ensure the 
     environmental performance and sustainability of biomass 
     production and harvesting;
       (iv) the land, air, water, and biodiversity impacts of 
     large-scale biomass production, processing, and use of 
     biobased industrial products relative to other alternatives; 
     and
       (v) biomass gasification and combustion to produce 
     electricity;
       (B) the analysis of, and strategies to enhance, the 
     economic viability of biobased industrial products, including 
     research on--
       (i) the cost of the required process technology;
       (ii) the impact of coproducts, including food, animal feed, 
     and fiber, on biobased industrial product price and large-
     scale economic viability; and
       (iii) interactions between an emergent biomass refining 
     industry and the petrochemical refining infrastructure; and
       (C) the field and laboratory research related to feedstock 
     production with the interrelated goals of enhancing the 
     sustainability, increasing productivity, and decreasing the 
     cost of biomass processing, including research on--
       (i) altering biomass to make biomass easier and less 
     expensive to process;
       (ii) existing and new agricultural and energy crops that 
     provide a sustainable resource for conversion to biobased 
     industrial products while simultaneously serving as a source 
     for coproducts such as food, animal feed, and fiber;
       (iii) improved technologies for harvest, collection, 
     transport, storage, and handling of crop and residue 
     feedstocks; and
       (iv) development of economically viable cropping systems 
     that improve the conservation and restoration of marginal 
     land; or
       (4) any research and development in technologies or 
     processes determined by the Secretary of Agriculture and the 
     Secretary of Energy, acting through their respective points 
     of contact and in consultation with the Board, to be 
     consistent with the purposes described in subsection (b) and 
     the priority described in subsection (c)(2)(B).
       (e) Technology and Information Transfer to Agricultural 
     Users.--
       (1) In general.--The Administrator of the Cooperative State 
     Research, Education, and Extension Service and the Chief of 
     the Natural Resources Conservation Service shall ensure that 
     applicable research results and technologies from the 
     Initiative are adapted, made available, and disseminated 
     through their respective services, as appropriate.
       (2) Report.--Not later than 5 years after the date of 
     enactment of this Act, the Administrator of the Cooperative 
     State Research, Education, and Extension Service and the 
     Chief of the Natural Resources Conservation Service shall 
     submit to the committees of Congress with jurisdiction over 
     the Initiative a report on the activities conducted by the 
     services under this subsection.
       (f) Authorization of Appropriations.--In addition to funds 
     appropriated for biomass research and development under the 
     general authority of the Secretary of Energy to conduct 
     research and development programs (which may also be used to 
     carry out this title), there are authorized to be 
     appropriated to the Department of Agriculture to carry out 
     this title $49,000,000 for each of fiscal years 2000 through 
     2005.

     SEC. 308. ADMINISTRATIVE SUPPORT AND FUNDS.

       (a) In General.--To the extent administrative support and 
     funds are not provided by other agencies under subsection 
     (b), the Secretary of Energy and the Secretary of Agriculture 
     may provide such administrative support and funds of the 
     Department of Energy and the Department of Agriculture to the 
     Board and the Advisory Committee as are necessary to enable 
     the Board and the Advisory Committee to carry out their 
     duties under this title.
       (b) Other Agencies.--The heads of the agencies referred to 
     in section 305(b)(3), and the other members appointed under 
     section 305(b)(4), may, and are encouraged to, provide 
     administrative support and funds of their respective agencies 
     to the Board and the Advisory Committee.
       (c) Limitation.--Not more than 4 percent of the amount 
     appropriated for each fiscal year under section 307(f) may be 
     used to pay the administrative costs of carrying out this 
     title.

     SEC. 309. REPORTS.

       (a) Initial Report.--Not later than 180 days after the date 
     of enactment of this Act, the Secretary of Energy and the 
     Secretary of Agriculture shall jointly submit to Congress a 
     report that--
       (1) identifies the points of contact, the members of the 
     Board, and the members of the Advisory Committee;
       (2) describes the status of current biobased industrial 
     product research and development efforts in both the Federal 
     Government and private sector;
       (3) includes a section prepared by the Board that 
     establishes a set of criteria to assess the potential of 
     biobased industrial products, which shall include for both 
     biomass production and transformation into biobased 
     industrial products--
       (A) an energy accounting;
       (B) an environmental impact assessment; and
       (C) an economic assessment; and
       (4) describes the research and development goals of the 
     Initiative, including how funds will be allocated in order to 
     accomplish those goals.
       (b) Annual Reports.--For each fiscal year for which funds 
     are made available to carry out this title, the Secretary of 
     Energy and the Secretary of Agriculture shall jointly submit 
     to Congress a detailed report on--
       (1) the status and progress of the Initiative, including a 
     report from the Advisory Committee on whether funds 
     appropriated for the Initiative have been distributed and 
     used in a manner that--
       (A) is consistent with the purposes described in section 
     307(b);
       (B) uses the set of criteria established under subsection 
     (a)(3); and
       (C) takes into account any recommendations that have been 
     made by the Advisory Committee;
       (2) the general status of cooperation and research and 
     development efforts carried out at each agency with respect 
     to biobased industrial products, including a report from the 
     Advisory Committee on whether the points of contact are 
     funding proposals that are selected under section 
     307(c)(2)(C); and
       (3) the plans of the Secretary of Energy and the Secretary 
     of Agriculture for addressing concerns raised in the report, 
     including concerns raised by the Advisory Committee.

     SEC. 310. TERMINATION OF AUTHORITY.

       The authority provided under this title shall terminate on 
     December 31, 2005.
                     TITLE IV--PLANT PROTECTION ACT

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Plant Protection Act''.

     SEC. 402. FINDINGS.

       Congress finds that--
       (1) the detection, control, eradication, suppression, 
     prevention, or retardation of the spread of plant pests or 
     noxious weeds is necessary for the protection of the 
     agriculture, environment, and economy of the United States;
       (2) biological control is often a desirable, low-risk means 
     of ridding crops and other plants of plant pests and noxious 
     weeds, and its use should be facilitated by the Department of 
     Agriculture, other Federal agencies, and States whenever 
     feasible;
       (3) it is the responsibility of the Secretary to facilitate 
     exports, imports, and interstate commerce in agricultural 
     products and other commodities that pose a risk of harboring 
     plant pests or noxious weeds in ways that will reduce, to the 
     extent practicable, as determined by the Secretary, the risk 
     of dissemination of plant pests or noxious weeds;
       (4) decisions affecting imports, exports, and interstate 
     movement of products regulated under this title shall be 
     based on sound science;
       (5) the smooth movement of enterable plants, plant 
     products, biological control organisms, or other articles 
     into, out of, or within the United States is vital to the 
     United State's economy and should be facilitated to the 
     extent possible;
       (6) export markets could be severely impacted by the 
     introduction or spread of plant pests or noxious weeds into 
     or within the United States;
       (7) the unregulated movement of plant pests, noxious weeds, 
     plants, certain biological control organisms, plant products, 
     and articles capable of harboring plant pests or noxious 
     weeds could present an unacceptable risk of introducing or 
     spreading plant pests or noxious weeds;
       (8) the existence on any premises in the United States of a 
     plant pest or noxious weed new to or not known to be widely 
     prevalent in or distributed within and throughout the United 
     States could constitute a threat to crops and other plants or 
     plant products of the United States and burden interstate 
     commerce or foreign commerce; and
       (9) all plant pests, noxious weeds, plants, plant products, 
     articles capable of harboring plant pests or noxious weeds 
     regulated under this title are in or affect interstate 
     commerce or foreign commerce.

     SEC. 403. DEFINITIONS.

       In this title:
       (1) Article.--The term ``article'' means any material or 
     tangible object that could harbor plant pests or noxious 
     weeds.
       (2) Biological control organism.--The term ``biological 
     control organism'' means any enemy, antagonist, or competitor 
     used to control a plant pest or noxious weed.
       (3) Enter and entry.--The terms ``enter'' and ``entry'' 
     mean to move into, or the act of movement into, the commerce 
     of the United States.
       (4) Export and exportation.--The terms ``export'' and 
     ``exportation'' mean to move from,

[[Page 9192]]

     or the act of movement from, the United States to any place 
     outside the United States.
       (5) Import and importation.--The terms ``import'' and 
     ``importation'' mean to move into, or the act of movement 
     into, the territorial limits of the United States.
       (6) Interstate.--The term ``interstate'' means--
       (A) from one State into or through any other State; or
       (B) within the District of Columbia, Guam, the Virgin 
     Islands of the United States, or any other territory or 
     possession of the United States.
       (7) Interstate commerce.--The term ``interstate commerce'' 
     means trade, traffic, or other commerce--
       (A) between a place in a State and a point in another 
     State, or between points within the same State but through 
     any place outside that State; or
       (B) within the District of Columbia, Guam, the Virgin 
     Islands of the United States, or any other territory or 
     possession of the United States.
       (8) 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.
       (9) Move and related terms.--The terms ``move'', 
     ``moving'', and ``movement'' mean--
       (A) to carry, enter, import, mail, ship, or transport;
       (B) to aid, abet, cause, or induce the carrying, entering, 
     importing, mailing, shipping, or transporting;
       (C) to offer to carry, enter, import, mail, ship, or 
     transport;
       (D) to receive to carry, enter, import, mail, ship, or 
     transport;
       (E) to release into the environment; or
       (F) to allow any of the activities described in a preceding 
     subparagraph.
       (10) Noxious weed.--The term ``noxious weed'' means any 
     plant or plant product that can directly or indirectly injure 
     or cause damage to crops (including nursery stock or plant 
     products), livestock, poultry, or other interests of 
     agriculture, irrigation, navigation, the natural resources of 
     the United States, the public health, or the environment.
       (11) Permit.--The term ``permit'' means a written or oral 
     authorization, including by electronic methods, by the 
     Secretary to move plants, plant products, biological control 
     organisms, plant pests, noxious weeds, or articles under 
     conditions prescribed by the Secretary.
       (12) Person.--The term ``person'' means any individual, 
     partnership, corporation, association, joint venture, or 
     other legal entity.
       (13) Plant.--The term ``plant'' means any plant (including 
     any plant part) for or capable of propagation, including a 
     tree, a tissue culture, a plantlet culture, pollen, a shrub, 
     a vine, a cutting, a graft, a scion, a bud, a bulb, a root, 
     and a seed.
       (14) Plant pest.--The term ``plant pest'' means any living 
     stage of any of the following that can directly or indirectly 
     injure, cause damage to, or cause disease in any plant or 
     plant product:
       (A) A protozoan.
       (B) A nonhuman animal.
       (C) A parasitic plant.
       (D) A bacterium.
       (E) A fungus.
       (F) A virus or viroid.
       (G) An infectious agent or other pathogen.
       (H) Any article similar to or allied with any of the 
     articles specified in the preceding subparagraphs.
       (15) Plant product.--The term ``plant product'' means--
       (A) any flower, fruit, vegetable, root, bulb, seed, or 
     other plant part that is not included in the definition of 
     plant; or
       (B) any manufactured or processed plant or plant part.
       (16) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (17) State.--The term ``State'' means any of the several 
     States of the United States, the Commonwealth of the Northern 
     Mariana Islands, the Commonwealth of Puerto Rico, the 
     District of Columbia, Guam, the Virgin Islands of the United 
     States, or any other territory or possession of the United 
     States.
       (18) Systems approach.--For the purposes of section 412(e), 
     the term ``systems approach'' means a defined set of 
     phytosanitary procedures, at least 2 of which have an 
     independent effect in mitigating pest risk associated with 
     the movement of commodities.
       (19) This title.--Except when used in this section, the 
     term ``this title'' includes any regulation or order issued 
     by the Secretary under the authority of this title.
       (20) United states.--The term ``United States'' means all 
     of the States.
                      Subtitle A--Plant Protection

     SEC. 411. REGULATION OF MOVEMENT OF PLANT PESTS.

       (a) Prohibition of Unauthorized Movement of Plant Pests.--
     Except as provided in subsection (c), no person shall import, 
     enter, export, or move in interstate commerce any plant pest, 
     unless the importation, entry, exportation, or movement is 
     authorized under general or specific permit and is in 
     accordance with such regulations as the Secretary may issue 
     to prevent the introduction of plant pests into the United 
     States or the dissemination of plant pests within the United 
     States.
       (b) Requirements for Processes.--The Secretary shall ensure 
     that the processes used in developing regulations under 
     subsection (a) governing consideration of import requests are 
     based on sound science and are transparent and accessible.
       (c) Authorization of Movement of Plant Pests by 
     Regulation.--
       (1) Exception to permit requirement.--The Secretary may 
     issue regulations to allow the importation, entry, 
     exportation, or movement in interstate commerce of specified 
     plant pests without further restriction if the Secretary 
     finds that a permit under subsection (a) is not necessary.
       (2) Petition to add or remove plant pests from 
     regulation.--Any person may petition the Secretary to add a 
     plant pest to, or remove a plant pest from, the regulations 
     issued by the Secretary under paragraph (1).
       (3) Response to petition by the secretary.--In the case of 
     a petition submitted under paragraph (2), the Secretary shall 
     act on the petition within a reasonable time and notify the 
     petitioner of the final action the Secretary takes on the 
     petition. The Secretary's determination on the petition shall 
     be based on sound science.
       (d) Prohibition of Unauthorized Mailing of Plant Pests.--
       (1) In general.--Any letter, parcel, box, or other package 
     containing any plant pest, whether sealed as letter-rate 
     postal matter or not, is nonmailable and shall not knowingly 
     be conveyed in the mail or delivered from any post office or 
     by any mail carrier, unless the letter, parcel, box, or other 
     package is mailed in compliance with such regulations as the 
     Secretary may issue to prevent the dissemination of plant 
     pests into the United States or interstate.
       (2) Application of postal laws and regulations.--Nothing in 
     this subsection authorizes any person to open any mailed 
     letter or other mailed sealed matter except in accordance 
     with the postal laws and regulations.
       (e) Regulations.--Regulations issued by the Secretary to 
     implement subsections (a), (c), and (d) may include 
     provisions requiring that any plant pest imported, entered, 
     to be exported, moved in interstate commerce, mailed, or 
     delivered from any post office--
       (1) be accompanied by a permit issued by the Secretary 
     prior to the importation, entry, exportation, movement in 
     interstate commerce, mailing, or delivery of the plant pest;
       (2) be accompanied by a certificate of inspection issued 
     (in a manner and form required by the Secretary) by 
     appropriate officials of the country or State from which the 
     plant pest is to be moved;
       (3) be raised under post-entry quarantine conditions by or 
     under the supervision of the Secretary for the purposes of 
     determining whether the plant pest--
       (A) may be infested with other plant pests;
       (B) may pose a significant risk of causing injury to, 
     damage to, or disease in any plant or plant product; or
       (C) may be a noxious weed; and
       (4) be subject to remedial measures the Secretary 
     determines to be necessary to prevent the spread of plant 
     pests.

     SEC. 412. REGULATION OF MOVEMENT OF PLANTS, PLANT PRODUCTS, 
                   BIOLOGICAL CONTROL ORGANISMS, NOXIOUS WEEDS, 
                   ARTICLES, AND MEANS OF CONVEYANCE.

       (a) In General.--The Secretary may prohibit or restrict the 
     importation, entry, exportation, or movement in interstate 
     commerce of any plant, plant product, biological control 
     organism, noxious weed, article, or means of conveyance, if 
     the Secretary determines that the prohibition or restriction 
     is necessary to prevent the introduction into the United 
     States or the dissemination of a plant pest or noxious weed 
     within the United States.
       (b) Policy.--The Secretary shall ensure that processes used 
     in developing regulations under this section governing 
     consideration of import requests are based on sound science 
     and are transparent and accessible.
       (c) Regulations.--The Secretary may issue regulations to 
     implement subsection (a), including regulations requiring 
     that any plant, plant product, biological control organism, 
     noxious weed, article, or means of conveyance imported, 
     entered, to be exported, or moved in interstate commerce--
       (1) be accompanied by a permit issued by the Secretary 
     prior to the importation, entry, exportation, or movement in 
     interstate commerce;
       (2) be accompanied by a certificate of inspection issued 
     (in a manner and form required by the Secretary) by 
     appropriate officials of the country or State from which the 
     plant, plant product, biological control organism, noxious 
     weed, article, or means of conveyance is to be moved;
       (3) be subject to remedial measures the Secretary 
     determines to be necessary to prevent the spread of plant 
     pests or noxious weeds; and
       (4) with respect to plants or biological control organisms, 
     be grown or handled under post-entry quarantine conditions by 
     or under the supervision of the Secretary for the purposes of 
     determining whether the plant or biological control organism 
     may be infested with plant pests or may be a plant pest or 
     noxious weed.
       (d) Notice.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall publish for public 
     comment a notice describing the procedures and standards that 
     govern the consideration of import requests. The notice 
     shall--
       (1) specify how public input will be sought in advance of 
     and during the process of promulgating regulations 
     necessitating a risk assessment in order to ensure a fully 
     transparent and publicly accessible process; and
       (2) include consideration of the following:
       (A) Public announcement of import requests that will 
     necessitate a risk assessment.

[[Page 9193]]

       (B) A process for assigning major/nonroutine or minor/
     routine status to such requests based on current state of 
     supporting scientific information.
       (C) A process for assigning priority to requests.
       (D) Guidelines for seeking relevant scientific and economic 
     information in advance of initiating informal rulemaking.
       (E) Guidelines for ensuring availability and transparency 
     of assumptions and uncertainties in the risk assessment 
     process including applicable risk mitigation measures relied 
     upon individually or as components of a system of mitigative 
     measures proposed consistent with the purposes of this title.
       (e) Study and Report on Systems Approach.--
       (1) Study.--The Secretary shall conduct a study of the role 
     for and application of systems approaches designed to guard 
     against the introduction of plant pathogens into the United 
     States associated with proposals to import plants or plant 
     products into the United States.
       (2) Participation by scientists.--In conducting the study 
     the Secretary shall ensure participation by scientists from 
     State departments of agriculture, colleges and universities, 
     the private sector, and the Agricultural Research Service.
       (3) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Secretary shall submit a report on 
     the results of the study conducted under this section to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate and the Committee on Agriculture of the House of 
     Representatives.
       (f) Noxious Weeds.--
       (1) Regulations.--In the case of noxious weeds, the 
     Secretary may publish, by regulation, a list of noxious weeds 
     that are prohibited or restricted from entering the United 
     States or that are subject to restrictions on interstate 
     movement within the United States.
       (2) Petition to add or remove plants from regulation.--Any 
     person may petition the Secretary to add a plant species to, 
     or remove a plant species from, the regulations issued by the 
     Secretary under this subsection.
       (3) Duties of the secretary.--In the case of a petition 
     submitted under paragraph (2), the Secretary shall act on the 
     petition within a reasonable time and notify the petitioner 
     of the final action the Secretary takes on the petition. The 
     Secretary's determination on the petition shall be based on 
     sound science.
       (g) Biological Control Organisms.--
       (1) Regulations.--In the case of biological control 
     organisms, the Secretary may publish, by regulation, a list 
     of organisms whose movement in interstate commerce is not 
     prohibited or restricted. Any listing may take into account 
     distinctions between organisms such as indigenous, 
     nonindigenous, newly introduced, or commercially raised.
       (2) Petition to add or remove biological control organisms 
     from the regulations.--Any person may petition the Secretary 
     to add a biological control organism to, or remove a 
     biological control organism from, the regulations issued by 
     the Secretary under this subsection.
       (3) Duties of the secretary.--In the case of a petition 
     submitted under paragraph (2), the Secretary shall act on the 
     petition within a reasonable time and notify the petitioner 
     of the final action the Secretary takes on the petition. The 
     Secretary's determination on the petition shall be based on 
     sound science.

     SEC. 413. NOTIFICATION AND HOLDING REQUIREMENTS UPON ARRIVAL.

       (a) Duty of Secretary of the Treasury.--
       (1) Notification.--The Secretary of the Treasury shall 
     promptly notify the Secretary of Agriculture of the arrival 
     of any plant, plant product, biological control organism, 
     plant pest, or noxious weed at a port of entry.
       (2) Holding.--The Secretary of the Treasury shall hold a 
     plant, plant product, biological control organism, plant 
     pest, or noxious weed for which notification is made under 
     paragraph (1) at the port of entry until the plant, plant 
     product, biological control organism, plant pest, or noxious 
     weed--
       (A) is inspected and authorized for entry into or transit 
     movement through the United States; or
       (B) is otherwise released by the Secretary of Agriculture.
       (3) Exceptions.--Paragraphs (1) and (2) shall not apply to 
     any plant, plant product, biological control organism, plant 
     pest, or noxious weed that is imported from a country or 
     region of a country designated by the Secretary of 
     Agriculture, pursuant to regulations, as exempt from the 
     requirements of such paragraphs.
       (b) Duty of Responsible Parties.--
       (1) Notification.--The person responsible for any plant, 
     plant product, biological control organism, plant pest, 
     noxious weed, article, or means of conveyance required to 
     have a permit under section 411 or 412 shall provide the 
     notification described in paragraph (3) as soon as possible 
     after the arrival of the plant, plant product, biological 
     control organism, plant pest, noxious weed, article, or means 
     of conveyance at a port of entry and before the plant, plant 
     product, biological control organism, plant pest, noxious 
     weed, article, or means of conveyance is moved from the port 
     of entry.
       (2) Submission.--The notification shall be provided to the 
     Secretary, or, at the Secretary's direction, to the proper 
     official of the State to which the plant, plant product, 
     biological control organism, plant pest, noxious weed, 
     article, or means of conveyance is destined, or both, as the 
     Secretary may prescribe.
       (3) Elements of notification.--The notification shall 
     consist of the following:
       (A) The name and address of the consignee.
       (B) The nature and quantity of the plant, plant product, 
     biological control organism, plant pest, noxious weed, 
     article, or means of conveyance proposed to be moved.
       (C) The country and locality where the plant, plant 
     product, biological control organism, plant pest, noxious 
     weed, article, or means of conveyance was grown, produced, or 
     located.
       (c) Prohibition on Movement of Items Without 
     Authorization.--No person shall move from a port of entry or 
     interstate any imported plant, plant product, biological 
     control organism, plant pest, noxious weed, article, or means 
     of conveyance unless the imported plant, plant product, 
     biological control organism, plant pest, noxious weed, 
     article, or means of conveyance--
       (1) is inspected and authorized for entry into or transit 
     movement through the United States; or
       (2) is otherwise released by the Secretary.

     SEC. 414. GENERAL REMEDIAL MEASURES FOR NEW PLANT PESTS AND 
                   NOXIOUS WEEDS.

       (a) Authority To Hold, Treat, or Destroy Items.--If the 
     Secretary considers it necessary in order to prevent the 
     dissemination of a plant pest or noxious weed that is new to 
     or not known to be widely prevalent or distributed within and 
     throughout the United States, the Secretary may hold, seize, 
     quarantine, treat, apply other remedial measures to, destroy, 
     or otherwise dispose of any plant, plant pest, noxious weed, 
     biological control organism, plant product, article, or means 
     of conveyance that--
       (1) is moving into or through the United States or 
     interstate, or has moved into or through the United States or 
     interstate, and--
       (A) the Secretary has reason to believe is a plant pest or 
     noxious weed or is infested with a plant pest or noxious weed 
     at the time of the movement; or
       (B) is or has been otherwise in violation of this title;
       (2) has not been maintained in compliance with a post-entry 
     quarantine requirement; or
       (3) is the progeny of any plant, biological control 
     organism, plant product, plant pest, or noxious weed that is 
     moving into or through the United States or interstate, or 
     has moved into the United States or interstate, in violation 
     of this title.
       (b) Authority To Order an Owner To Treat or Destroy.--
       (1) In general.--The Secretary may order the owner of any 
     plant, biological control organism, plant product, plant 
     pest, noxious weed, article, or means of conveyance subject 
     to action under subsection (a), or the owner's agent, to 
     treat, apply other remedial measures to, destroy, or 
     otherwise dispose of the plant, biological control organism, 
     plant product, plant pest, noxious weed, article, or means of 
     conveyance, without cost to the Federal Government and in the 
     manner the Secretary considers appropriate.
       (2) Failure to comply.--If the owner or agent of the owner 
     fails to comply with the Secretary's order under this 
     subsection, the Secretary may take an action authorized by 
     subsection (a) and recover from the owner or agent of the 
     owner the costs of any care, handling, application of 
     remedial measures, or disposal incurred by the Secretary in 
     connection with actions taken under subsection (a).
       (c) Classification System.--
       (1) Development required.--To facilitate control of noxious 
     weeds, the Secretary may develop a classification system to 
     describe the status and action levels for noxious weeds. The 
     classification system may include the current geographic 
     distribution, relative threat, and actions initiated to 
     prevent introduction or distribution.
       (2) Management plans.--In conjunction with the 
     classification system, the Secretary may develop integrated 
     management plans for noxious weeds for the geographic region 
     or ecological range where the noxious weed is found in the 
     United States.
       (d) Application of Least Drastic Action.--No plant, 
     biological control organism, plant product, plant pest, 
     noxious weed, article, or means of conveyance shall be 
     destroyed, exported, or returned to the shipping point of 
     origin, or ordered to be destroyed, exported, or returned to 
     the shipping point of origin under this section unless, in 
     the opinion of the Secretary, there is no less drastic action 
     that is feasible and that would be adequate to prevent the 
     dissemination of any plant pest or noxious weed new to or not 
     known to be widely prevalent or distributed within and 
     throughout the United States.

     SEC. 415. DECLARATION OF EXTRAORDINARY EMERGENCY AND 
                   RESULTING AUTHORITIES.

       (a) Authority To Declare.--If the Secretary determines that 
     an extraordinary emergency exists because of the presence of 
     a plant pest or noxious weed that is new to or not known to 
     be widely prevalent in or distributed within and throughout 
     the United States and that the presence of the plant pest or 
     noxious weed threatens plants or plant products of the United 
     States, the Secretary may--
       (1) hold, seize, quarantine, treat, apply other remedial 
     measures to, destroy, or otherwise dispose of, any plant, 
     biological control organism, plant product, article, or means 
     of conveyance that the Secretary has reason to believe is 
     infested with the plant pest or noxious weed;
       (2) quarantine, treat, or apply other remedial measures to 
     any premises, including any plants, biological control 
     organisms, plant products, articles, or means of conveyance 
     on the premises,

[[Page 9194]]

     that the Secretary has reason to believe is infested with the 
     plant pest or noxious weed;
       (3) quarantine any State or portion of a State in which the 
     Secretary finds the plant pest or noxious weed or any plant, 
     biological control organism, plant product, article, or means 
     of conveyance that the Secretary has reason to believe is 
     infested with the plant pest or noxious weed; and
       (4) prohibit or restrict the movement within a State of any 
     plant, biological control organism, plant product, article, 
     or means of conveyance when the Secretary determines that the 
     prohibition or restriction is necessary to prevent the 
     dissemination of the plant pest or noxious weed or to 
     eradicate the plant pest or noxious weed.
       (b) Required Finding of Emergency.--The Secretary may take 
     action under this section only upon finding, after review and 
     consultation with the Governor or other appropriate official 
     of the State affected, that the measures being taken by the 
     State are inadequate to eradicate the plant pest or noxious 
     weed.
       (c) Notification Procedures.--
       (1) In general.--Except as provided in paragraph (2), 
     before any action is taken in any State under this section, 
     the Secretary shall notify the Governor or other appropriate 
     official of the State affected, issue a public announcement, 
     and file for publication in the Federal Register a statement 
     of--
       (A) the Secretary's findings;
       (B) the action the Secretary intends to take;
       (C) the reasons for the intended action; and
       (D) where practicable, an estimate of the anticipated 
     duration of the extraordinary emergency.
       (2) Time sensitive actions.--If it is not possible to file 
     for publication in the Federal Register prior to taking 
     action, the filing shall be made within a reasonable time, 
     not to exceed 10 business days, after commencement of the 
     action.
       (d) Application of Least Drastic Action.--No plant, 
     biological control organism, plant product, plant pest, 
     noxious weed, article, or means of conveyance shall be 
     destroyed, exported, or returned to the shipping point of 
     origin, or ordered to be destroyed, exported, or returned to 
     the shipping point of origin under this section unless, in 
     the opinion of the Secretary, there is no less drastic action 
     that is feasible and that would be adequate to prevent the 
     dissemination of any plant pest or noxious weed new to or not 
     known to be widely prevalent or distributed within and 
     throughout the United States.
       (e) Payment of Compensation.--The Secretary may pay 
     compensation to any person for economic losses incurred by 
     the person as a result of action taken by the Secretary under 
     this section. The determination by the Secretary of the 
     amount of any compensation to be paid under this subsection 
     shall be final and shall not be subject to judicial review.

     SEC. 416. RECOVERY OF COMPENSATION FOR UNAUTHORIZED 
                   ACTIVITIES.

       (a) Recovery Action.--The owner of any plant, plant 
     biological control organism, plant product, plant pest, 
     noxious weed, article, or means of conveyance destroyed or 
     otherwise disposed of by the Secretary under section 414 or 
     415 may bring an action against the United States to recover 
     just compensation for the destruction or disposal of the 
     plant, plant biological control organism, plant product, 
     plant pest, noxious weed, article, or means of conveyance 
     (not including compensation for loss due to delays incident 
     to determining eligibility for importation, entry, 
     exportation, movement in interstate commerce, or release into 
     the environment), but only if the owner establishes that the 
     destruction or disposal was not authorized under this title.
       (b) Time for Action; Location.--An action under this 
     section shall be brought not later than 1 year after the 
     destruction or disposal of the plant, plant biological 
     control organism, plant product, plant pest, noxious weed, 
     article, or means of conveyance involved. The action may be 
     brought in any United States district court where the owner 
     is found, resides, transacts business, is licensed to do 
     business, or is incorporated.

     SEC. 417. CONTROL OF GRASSHOPPERS AND MORMON CRICKETS.

       (a) In General.--Subject to the availability of funds 
     pursuant to this section, the Secretary shall carry out a 
     program to control grasshoppers and Mormon crickets on all 
     Federal lands to protect rangeland.
       (b) Transfer Authority.--
       (1) In general.--Subject to paragraph (3), upon the request 
     of the Secretary of Agriculture, the Secretary of the 
     Interior shall transfer to the Secretary of Agriculture, from 
     any no-year appropriations, funds for the prevention, 
     suppression, and control of actual or potential grasshopper 
     and Mormon cricket outbreaks on Federal lands under the 
     jurisdiction of the Secretary of the Interior. The 
     transferred funds shall be available only for the payment of 
     obligations incurred on such Federal lands.
       (2) Transfer requests.--Requests for the transfer of funds 
     pursuant to this subsection shall be made as promptly as 
     possible by the Secretary.
       (3) Limitation.--Funds transferred pursuant to this 
     subsection may not be used by the Secretary until funds 
     specifically appropriated to the Secretary for grasshopper 
     control have been exhausted.
       (4) Replenishment of transferred funds.--Funds transferred 
     pursuant to this subsection shall be replenished by 
     supplemental or regular appropriations, which shall be 
     requested as promptly as possible.
       (c) Treatment for Grasshoppers and Mormon Crickets--
       (1) In general.--Subject to the availability of funds 
     pursuant to this section, on request of the administering 
     agency or the agriculture department of an affected State, 
     the Secretary, to protect rangeland, shall immediately treat 
     Federal, State, or private lands that are infested with 
     grasshoppers or Mormon crickets at levels of economic 
     infestation, unless the Secretary determines that delaying 
     treatment will not cause greater economic damage to adjacent 
     owners of rangeland.
       (2) Other programs.--In carrying out this section, the 
     Secretary shall work in conjunction with other Federal, 
     State, and private prevention, control, or suppression 
     efforts to protect rangeland.
       (d) Federal Cost Share of Treatment.--
       (1) Control on federal lands.--Out of funds made available 
     or transferred under this section, the Secretary shall pay 
     100 percent of the cost of grasshopper or Mormon cricket 
     control on Federal lands to protect rangeland.
       (2) Control on state lands.--Out of funds made available 
     under this section, the Secretary shall pay 50 percent of the 
     cost of grasshopper or Mormon cricket control on State lands.
       (3) Control on private lands.--Out of funds made available 
     under this section, the Secretary shall pay 33.3 percent of 
     the cost of grasshopper or Mormon cricket control on private 
     lands.
       (e) Training.--From appropriated funds made available or 
     transferred by the Secretary of the Interior to the Secretary 
     of Agriculture for such purposes, the Secretary of 
     Agriculture shall provide adequate funding for a program to 
     train personnel to accomplish effectively the objective of 
     this section.

     SEC. 418. CERTIFICATION FOR EXPORTS.

       The Secretary may certify as to the freedom of plants, 
     plant products, or biological control organisms from plant 
     pests or noxious weeds, or the exposure of plants, plant 
     products, or biological control organisms to plant pests or 
     noxious weeds, according to the phytosanitary or other 
     requirements of the countries to which the plants, plant 
     products, or biological control organisms may be exported.
                 Subtitle B--Inspection and Enforcement

     SEC. 421. INSPECTIONS, SEIZURES, AND WARRANTS.

       (a) Role of Attorney General.--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 plant, plant product, 
     biological control organism, plant pest, noxious weed, or 
     article subject to this title;
       (2) in interstate commerce, upon probable cause to believe 
     that the person or means of conveyance is carrying any plant, 
     plant product, biological control organism, plant pest, 
     noxious weed, or article subject to this title; and
       (3) in intrastate commerce from or within any State, 
     portion of a State, or premises quarantined as part of a 
     extraordinary emergency declared under section 415 upon 
     probable cause to believe that the person or means of 
     conveyance is carrying any plant, plant product, biological 
     control organism, plant pest, noxious weed, or article 
     regulated under that section or is moving subject to that 
     section.
       (c) Inspections With a Warrant.--
       (1) General authority.--The Secretary may enter, with a 
     warrant, any premises in the United States for the purpose of 
     conducting investigations or making inspections and seizures 
     under this title.
       (2) Application and issuance of a warrant.--Upon proper 
     oath or affirmation showing probable cause to believe that 
     there is on certain premises any plant, plant product, 
     biological control organism, plant pest, noxious weed, 
     article, facility, or means of conveyance regulated under 
     this title, a United States judge, a judge of a court of 
     record in the United States, or a United States magistrate 
     judge may, within the judge's or magistrate's jurisdiction, 
     issue a warrant for the entry upon the premises to conduct 
     any investigation or make any inspection or seizure under 
     this title. The warrant may be applied for and executed by 
     the Secretary or any United States Marshal.

     SEC. 422. COLLECTION OF INFORMATION.

       The Secretary may gather and compile information and 
     conduct any investigations the Secretary considers necessary 
     for the administration and enforcement of this title.

     SEC. 423. SUBPOENA AUTHORITY.

       (a) Authority To Issue.--The Secretary shall have power to 
     subpoena the attendance and testimony of any witness, and the 
     production of all documentary evidence relating to the 
     administration or enforcement of this title or any matter 
     under investigation in connection with this title.
       (b) Location of Production.--The attendance of any witness 
     and production of documentary evidence may be required from 
     any place in the United States at any designated place of 
     hearing.
       (c) Enforcement of Subpoena.--In the 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, in 
     requiring the attendance and testimony of any witness and

[[Page 9195]]

     the production of documentary evidence. 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. Any failure to obey the court's order may be 
     punished by the court as a contempt of the court.
       (d) Compensation.--Witnesses summoned by the Secretary 
     shall be paid the same fees and mileage that are paid to 
     witnesses in courts of the United States, and witnesses whose 
     depositions are taken and the persons taking the depositions 
     shall be entitled to the same fees that are paid for similar 
     services in the courts of the United States.
       (e) Procedures.--The Secretary shall publish procedures for 
     the issuance of subpoenas under this section. Such procedures 
     shall include a requirement that subpoenas be reviewed for 
     legal sufficiency and signed by the Secretary. If the 
     authority to sign a subpoena is delegated, the agency 
     receiving the delegation shall seek review for legal 
     sufficiency outside that agency.
       (f) Scope of Subpoena.--Subpoenas for witnesses to attend 
     court in any judicial district or to testify or produce 
     evidence at an administrative hearing in any judicial 
     district in any action or proceeding arising under this title 
     may run to any other judicial district.

     SEC. 424. PENALTIES FOR VIOLATION.

       (a) Criminal Penalties.--Any person that knowingly violates 
     this title, or that knowingly forges, counterfeits, or, 
     without authority from the Secretary, uses, alters, defaces, 
     or destroys any certificate, permit, or other document 
     provided for in this title shall be guilty of a misdemeanor, 
     and, upon conviction, shall be fined in accordance with title 
     18, United States Code, imprisoned for a period not exceeding 
     1 year, or both.
       (b) Civil Penalties.--
       (1) In general.--Any person that violates this title, or 
     that forges, counterfeits, or, without authority from the 
     Secretary, uses, alters, defaces, or destroys any 
     certificate, permit, or other document provided for in this 
     title 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) $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 title by an individual moving regulated 
     articles not for monetary gain), $250,000 in the case of any 
     other person for each violation, and $500,000 for all 
     violations adjudicated in a single proceeding; or
       (B) twice the gross gain or gross loss for any violation, 
     forgery, counterfeiting, unauthorized use, defacing, or 
     destruction of a certificate, permit, or other document 
     provided for in this title that results in the person 
     deriving pecuniary gain or causing pecuniary loss to another.
       (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) ability to pay;
       (B) effect on ability to continue to do business;
       (C) any history of prior violations;
       (D) the degree of culpability; and
       (E) any other factors the Secretary considers 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.--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. 
     The validity of the Secretary's order may not be reviewed in 
     an action to collect the civil penalty. 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) Liability for Acts of an Agent.--When construing and 
     enforcing this title, the act, omission, or failure of any 
     officer, agent, or person acting for or employed by any other 
     person within the scope of his or her employment or office, 
     shall be deemed also to be the act, omission, or failure of 
     the other person.
       (d) 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 
     title.

     SEC. 425. ENFORCEMENT ACTIONS OF ATTORNEY GENERAL.

       The Attorney General may--
       (1) prosecute, in the name of the United States, all 
     criminal violations of this title 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 title, or to enjoin any interference by 
     any person with the Secretary in carrying out this title, 
     whenever the Secretary has reason to believe that the person 
     has violated, or is about to violate this title, or has 
     interfered, or is about to interfere, with the Secretary; and
       (3) bring an action for the recovery of any unpaid civil 
     penalty, funds under reimbursable agreements, late payment 
     penalty, or interest assessed under this title.

     SEC. 426. COURT JURISDICTION.

       (a) In General.--The United States district courts, the 
     District Court of Guam, the District Court of the Virgin 
     Islands, the highest court of American Samoa, and the United 
     States courts of other territories and possessions are vested 
     with jurisdiction in all cases arising under this title. Any 
     action arising under this title 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.
       (b) Exception.--This section does not apply to the 
     imposition of civil penalties under section 424(b).
                  Subtitle C--Miscellaneous Provisions

     SEC. 431. COOPERATION.

       (a) In General.--The Secretary may cooperate with other 
     Federal agencies or entities, States or political 
     subdivisions of States, national governments, local 
     governments of other nations, domestic or international 
     organizations, domestic or international associations, and 
     other persons to carry out this title.
       (b) Responsibility.--The individual or entity cooperating 
     with the Secretary under subsection (a) shall be responsible 
     for--
       (1) the authority necessary to conduct the operations or 
     take measures on all land and properties within the foreign 
     country or State, other than those owned or controlled by the 
     United States; and
       (2) other facilities and means as the Secretary determines 
     necessary.
       (c) Transfer of Biological Control Methods.--The Secretary 
     may transfer to a State, Federal agency, or other person 
     biological control methods using biological control organisms 
     against plant pests or noxious weeds.
       (d) Cooperation in Program Administration.--The Secretary 
     may cooperate with State authorities or other persons in the 
     administration of programs for the improvement of plants, 
     plant products, and biological control organisms.
       (e) Phytosanitary Issues.--The Secretary shall ensure that 
     phytosanitary issues involving imports and exports are 
     addressed based on sound science and consistent with 
     applicable international agreements. To accomplish these 
     goals, the Secretary may--
       (1) conduct direct negotiations with plant health officials 
     or other appropriate officials of other countries;
       (2) provide technical assistance, training, and guidance to 
     any country requesting such assistance in the development of 
     agricultural health protection systems and import/export 
     systems; and
       (3) maintain plant health and quarantine expertise in other 
     countries--
       (A) to facilitate the establishment of phytosanitary 
     systems and the resolution of phytosanitary issues;
       (B) to assist those countries with agricultural health 
     protection activities; and
       (C) to provide general liaison on agricultural health 
     issues with the plant health or other appropriate officials 
     of the country.

     SEC. 432. BUILDINGS, LAND, PEOPLE, CLAIMS, AND AGREEMENTS.

       (a) In General.--To the extent necessary to carry out this 
     title, the Secretary may acquire and maintain all real or 
     personal property for special purposes and employ any 
     persons, make grants, and enter into any contracts, 
     cooperative agreements, memoranda of understanding, or other 
     agreements.
       (b) Tort Claims.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary may pay tort claims in the manner authorized in the 
     first paragraph of section 2672 of title 28, United States 
     Code, when the claims arise outside the United States in 
     connection with activities that are authorized under this 
     title.
       (2) Requirements of claim.--A claim may not be allowed 
     under this subsection unless the claim is presented in 
     writing to the Secretary within 2 years after the date on 
     which the claim accrues.

     SEC. 433. REIMBURSABLE AGREEMENTS.

       (a) Authority To Enter Into Agreements.--The Secretary may 
     enter into reimbursable fee agreements with persons for 
     preclearance of plants, plant products, biological control 
     organisms, and articles at locations outside the United 
     States for movement into the United States.
       (b) Funds Collected for Preclearance.--Funds collected for 
     preclearance shall be credited to accounts which may be 
     established by the Secretary for this purpose and shall 
     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 employees of the Department of Agriculture 
     performing services relating to imports into and exports from 
     the United States, for all overtime, night, or holiday work 
     performed by them, at rates of pay established by the 
     Secretary.
       (2) Reimbursement of the secretary.--
       (A) In general.--The Secretary may require persons for whom 
     the services are performed to reimburse the Secretary for any 
     sums of money paid by the Secretary for the services.
       (B) Use of funds.--All funds collected under this paragraph 
     shall be credited to the account that incurs the costs and 
     shall remain available until expended without fiscal year 
     limitation.

[[Page 9196]]

       (d) Late Payment Penalties.--
       (1) Collection.--Upon failure to reimburse the Secretary in 
     accordance with this section, the Secretary may assess a late 
     payment penalty, and the overdue funds shall accrue interest, 
     as required by section 3717 of title 31, United States Code.
       (2) Use of funds.--Any late payment penalty and any accrued 
     interest shall be credited to the account that incurs the 
     costs and shall remain available until expended without 
     fiscal year limitation.

     SEC. 434. REGULATIONS AND ORDERS.

       The Secretary may issue such regulations and orders as the 
     Secretary considers necessary to carry out this title.

     SEC. 435. PROTECTION FOR MAIL HANDLERS.

       This title shall not apply to any employee of the United 
     States in the performance of the duties of the employee in 
     handling the mail.

     SEC. 436. PREEMPTION.

       (a) Regulation of Foreign Commerce.--No State or political 
     subdivision of a State may regulate in foreign commerce any 
     article, means of conveyance, plant, biological control 
     organism, plant pest, noxious weed, or plant product in 
     order--
       (1) to control a plant pest or noxious weed;
       (2) to eradicate a plant pest or noxious weed; or
       (3) prevent the introduction or dissemination of a 
     biological control organism, plant pest, or noxious weed.
       (b) Regulation of Interstate Commerce.--
       (1) In general.--Except as provided in paragraph (2), no 
     State or political subdivision of a State may regulate the 
     movement in interstate commerce of any article, means of 
     conveyance, plant, biological control organism, plant pest, 
     noxious weed, or plant product in order to control a plant 
     pest or noxious weed, eradicate a plant pest or noxious weed, 
     or prevent the introduction or dissemination of a biological 
     control organism, plant pest, or noxious weed, if the 
     Secretary has issued a regulation or order to prevent the 
     dissemination of the biological control organism, plant pest, 
     or noxious weed within the United States.
       (2) Exceptions.--
       (A) Regulations consistent with federal regulations.--A 
     State or a political subdivision of a State may impose 
     prohibitions or restrictions upon the movement in interstate 
     commerce of articles, means of conveyance, plants, biological 
     control organisms, plant pests, noxious weeds, or plant 
     products that are consistent with and do not exceed the 
     regulations or orders issued by the Secretary.
       (B) Special need.--A State or political subdivision of a 
     State may impose prohibitions or restrictions upon the 
     movement in interstate commerce of articles, means of 
     conveyance, plants, plant products, biological control 
     organisms, plant pests, or noxious weeds that are in addition 
     to the prohibitions or restrictions imposed by the Secretary, 
     if the State or political subdivision of a State demonstrates 
     to the Secretary and the Secretary finds that there is a 
     special need for additional prohibitions or restrictions 
     based on sound scientific data or a thorough risk assessment.

     SEC. 437. SEVERABILITY.

       If any provision of this title or application of any 
     provision of this title to any person or circumstances is 
     held invalid, the remainder of this title and the application 
     of the provision to other persons and circumstances shall not 
     be affected by the invalidity.

     SEC. 438. REPEAL OF SUPERSEDED LAWS.

       (a) Repeal.--The following provisions of law are repealed:
       (1) The Act of August 20, 1912 (commonly known as the 
     ``Plant Quarantine Act'')(7 U.S.C. 151-164a, 167).
       (2) The Federal Plant Pest Act (7 U.S.C. 150aa et seq., 7 
     U.S.C. 147a note).
       (3) Subsections (a) through (e) of section 102 of the 
     Department of Agriculture Organic Act of 1944 (7 U.S.C. 
     147a).
       (4) The Federal Noxious Weed Act of 1974 (7 U.S.C. 2801 et 
     seq.), except the first section and section 15 of that Act (7 
     U.S.C. 2801 note; 7 U.S.C. 2814).
       (5) The Act of January 31, 1942 (commonly known as the 
     ``Mexican Border Act'')(7 U.S.C. 149).
       (6) The Joint Resolution of April 6, 1937 (commonly known 
     as the ``Insect Control Act'')(7 U.S.C. 148 et seq.).
       (7) The Halogeton Glomeratus Act (7 U.S.C. 1651 et seq.).
       (8) The Golden Nematode Act (7 U.S.C. 150 et seq.).
       (9) Section 1773 of the Food Security Act of 1985 (Public 
     Law 99-198; 7 U.S.C. 148f).
       (b) Emergency Transfer Authority Regarding Plant Pests.--
     The first section of Public Law 97-46 (7 U.S.C. 147b) is 
     amended--
       (1) by striking ``plant pests or''; and
       (2) by striking ``section 102 of the Act of September 21, 
     1944, as amended (7 U.S.C. 147a), and''.
       (c) Effect on Regulations.--Regulations issued under the 
     authority of a provision of law repealed by subsection (a) 
     shall remain in effect until such time as the Secretary 
     issues a regulation under section 434 that supersedes the 
     earlier regulation.
              Subtitle D--Authorization of Appropriations

     SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such amounts as may 
     be necessary to carry out this title. Except as specifically 
     authorized by law, no part of the money appropriated under 
     this section shall be used to pay indemnities for property 
     injured or destroyed by or at the direction of the Secretary.

     SEC. 442. TRANSFER AUTHORITY.

       (a) Authority To Transfer Certain Funds.--In connection 
     with an emergency in which a plant pest or noxious weed 
     threatens any segment of the agricultural production of the 
     United States, the Secretary may transfer from other 
     appropriations or funds available to the agencies or 
     corporations of the Department of Agriculture such amounts as 
     the Secretary considers necessary to be available in the 
     emergency for the arrest, control, eradication, and 
     prevention of the spread of the plant pest or noxious weed 
     and for related expenses.
       (b) Availability.--Any funds transferred under this section 
     shall remain available for such purposes without fiscal year 
     limitation.
                      TITLE V--INSPECTION ANIMALS

     SEC. 501. CIVIL PENALTY.

       (a) In General.--Any person that causes harm to, or 
     interferes with, an animal used for the purposes of official 
     inspections by the Department of Agriculture, may, after 
     notice and opportunity for a hearing on the record, be 
     assessed a civil penalty by the Secretary of Agriculture not 
     to exceed $10,000.
       (b) 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 
     offense.
       (c) Settlement of Civil Penalties.--The Secretary may 
     compromise, modify, or remit, with or without conditions, any 
     civil penalty that may be assessed under this section.
       (d) Finality of Orders.--
       (1) In general.--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. The 
     validity of the order of the Secretary may not be reviewed in 
     an action to collect the civil penalty.
       (2) 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.

     SEC. 502. SUBPOENA AUTHORITY.

       (a) In General.--The Secretary shall have power to subpoena 
     the attendance and testimony of any witness, and the 
     production of all documentary evidence relating to the 
     enforcement of section 501 or any matter under investigation 
     in connection with this title.
       (b) Location of Production.--The attendance of any witness 
     and the production of documentary evidence may be required 
     from any place in the United States at any designated place 
     of hearing.
       (c) Enforcement of Subpoena.--In the 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, in 
     requiring the attendance and testimony of any witness and the 
     production of documentary evidence. 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. Any failure to obey the court's order may be 
     punished by the court as a contempt of the court.
       (d) Compensation.--Witnesses summoned by the Secretary 
     shall be paid the same fees and mileage that are paid to 
     witnesses in courts of the United States, and witnesses whose 
     depositions are taken, and the persons taking the depositions 
     shall be entitled to the same fees that are paid for similar 
     services in the courts of the United States.
       (e) Procedures.--The Secretary shall publish procedures for 
     the issuance of subpoenas under this section. Such procedures 
     shall include a requirement that subpoenas be reviewed for 
     legal sufficiency and signed by the Secretary. If the 
     authority to sign a subpoena is delegated, the agency 
     receiving the delegation shall seek review for legal 
     sufficiency outside that agency.
       (f) Scope of Subpoena.--Subpoenas for witnesses to attend 
     court in any judicial district or testify or produce evidence 
     at an administrative hearing in any judicial district in any 
     action or proceeding arising under section 501 may run to any 
     other judicial district.
       And the Senate agree to the same.
     Larry Combest,
     Bill Barrett,
     John Boehner,
     Thomas W. Ewing,
     Richard Pombo,
     Charlie Stenholm,
     Gary Condit,
     Collin C. Peterson,
     Cal Dooley,
                                Managers on the Part of the House.

     Richard G. Lugar,
     Jesse Helms,
     Thad Cochran,
     Paul Coverdell,
     Pat Roberts,
     Tom Harkin,
     Patrick Leahy,
     Kent Conrad,
     Bob Kerrey,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The Managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R.

[[Page 9197]]

     2559), to amend the Federal Crop Insurance Act to strengthen 
     the safety net for agricultural producers by providing 
     greater access to more affordable risk management tools and 
     improved protection from production and income loss, to 
     improve the efficiency and integrity of the Federal crop 
     insurance program, and for other purposes, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The Senate amendment struck out all of the House bill after 
     the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment which is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.\1\ In the case where a provision of the House bill 
     or the Senate amendment is adopted under the Conference 
     substitute, report language appurtenant to such provision of 
     the House bill or Senate amendment, respectively, stands.
---------------------------------------------------------------------------
     \1\ In general, the Statement of Managers is arranged in 
     order by title of the conference substitute, and by the House 
     bill within the title.
---------------------------------------------------------------------------
     Short title
       The House bill provides that this Act may be cited as the 
     ``Agricultural Risk Protection Act of 1999.'' (Section 1)
       The Senate amendment provides that this Act may be cited as 
     the ``Risk Management for the 21st Century Act.'' (Section 1)
       The Conference substitute adopts the House provision 
     providing that the Act be cited as the ``Agricultural Risk 
     Protection Act of 2000.'' (Section 1)

                    TITLE I--CROP INSURANCE COVERAGE

                  Subtitle A--Crop Insurance Coverage

     Premium schedule for additional coverage
       The House bill amends section 508(d)(2) by striking 
     subparagraphs (B) and (C) and inserts a new subparagraph (B).
       Paragraph (B) requires that the premium for insurance 
     coverage equal to or greater than 50/100 (or an equivalent 
     coverage) be sufficient to cover anticipated losses and a 
     reasonable reserve and include operating and administrative 
     expenses, as determined by FCIC based on an industry-wide 
     percentage of the amount of premium used to define loss 
     ratio.
       Amends section 508(e)(2) by striking paragraphs (B) and (C) 
     that provide the amount of premium to be paid by FCIC for 
     coverage of less than 65/100 but greater than 50/100, and for 
     coverage greater than 65/100, respectively.
       Adds new paragraphs (B) through (G) that provide for the 
     new amount to be paid by FCIC for coverage levels ranging 
     from 50 percent coverage to 85 percent coverage.
       Provides that the amount to be paid by FCIC for each 
     coverage level (or equivalent coverage) is the sum of the 
     percent of premium provided below (plus an amount of 
     administrative and operating expenses determined under 
     another section).

       50-54% coverage = 67%
       55-59% coverage = 64%
       60-64% coverage = 64%
       65-69% coverage = 59%
       70-74% coverage = 59%
       75-79% coverage = 54%
       80-84% coverage = 40.6%
       85% coverage = 30.6%

     (Producers may choose any price election up to 100 percent of 
     the price election, and coverage in 1 percent increments is 
     authorized as under current law.)
       Provides that each policy or plan of insurance contain a 
     disclosure of the portion of premium paid by FCIC.
       The House bill amends section 508(d) by adding a new 
     paragraph (3) to authorize FCIC to provide performance-based 
     discounts to producers with good production or insurance 
     experience.
       Authorizes a 20 percent premium discount for the 2000 crop 
     year for certain producers of specific crops that received a 
     discounted price due to Scab or Vomitoxin damage.
       The House bill amends section 508(c)(5) to provide that in 
     the case of a cost of production or similar plan of 
     insurance, the expected market price (price election) is the 
     projected cost of producing the crop. (Section 101, 106 and 
     107)
       The Senate amendment amends section 508(d)(2) by striking 
     subparagraph (C) and inserting a new (C) and (D) establishing 
     premium amounts.
       Paragraph (C) requires that the premium for insurance 
     coverage equal to or greater than 65/100 but less than 75/100 
     (or a comparable coverage for a plan of insurance not based 
     on yield) be sufficient to cover anticipated losses and a 
     reasonable reserve and include operating and administrative 
     expenses, as determined by FCIC based on an industry-wide 
     percentage of the amount of premium used to define loss 
     ratio.
       Paragraph (D) requires that the premium for insurance 
     coverage equal to 75/100, 80/100, and 85/100 (or a comparable 
     coverage for a plan of insurance not based on yield) is 
     established at a level as indicated under paragraph (C).
       Amends section 508(e) by striking paragraph (1) providing 
     that FCIC pay a portion of premium and inserts a new 
     paragraph relative to the same.
       Provides under paragraph (1)(A) that FCIC pay a portion of 
     the premium as established in section 508(e)(2).
       Amends section 508(e)(2) by striking paragraphs (B) and (C) 
     that provide for the amount of premium to be paid by FCIC for 
     coverage of less than 65/100 but greater than 50/100, and for 
     coverage greater than 65/100, respectively.
       Adds new paragraphs (B) through (G) that provide for the 
     new amount to be paid by FCIC for coverage levels ranging 
     from 50/100 to 85/100.
       Provides that the amount to be paid by FCIC for each 
     coverage level (or comparable coverage for a plan of 
     insurance not based on yield) is the sum of the percent of 
     premium provided below (plus an amount of administrative and 
     operating expenses determined under another section).

       50/100% coverage = 60%
       55/100% coverage = 45%
       60/100% coverage = 45%
       65/100% coverage = 50%
       70/100% coverage = 50%
       75/100% coverage = 55%
       80/100% coverage = 38%
       85/100% coverage = 28%

     (Producers must choose 100 percent price election to receive 
     correlating percentage of assistance, and availability of 
     coverage is limited to 5 percent increments).
       Provides under new paragraph (H) that paragraphs (A) 
     through (G) are applicable for the 2001 through 2004 fiscal 
     years.
       Amends section 508(a) by striking paragraph (3) relative to 
     exclusions for coverage and inserting a new paragraph (3) 
     relative to the same.
       Provides conforming amendments amending section 508(e) by 
     striking paragraph (4) requiring individual and area crop 
     insurance coverage and by striking reference to such 
     authority under section 508(g)(2)(D).
       The Senate amendment amends section 508(c) by striking 
     paragraph (5) relative to price levels and inserts a new 
     paragraph relative to price elections.
       Requires FCIC to establish or approve a price level, or 
     expected market price, for each commodity insured.
       Provides that the expected market price (1) not be less 
     than the projected market price of the crop; (2) may be based 
     on the actual market price of the crop at the time of 
     harvest; (3) in the case of revenue or similar policies be 
     the actual market price of the crop; or (4) in the case of 
     cost of production or similar policies be the cost of 
     producing the crop. (Section 103)
       The Conference substitute adopts the Senate provision 
     relative to the expected market price with minor changes to 
     clarify intent. The Conference substitute adopts the House 
     provisions relative to premium amounts, performance-based 
     discounts, payment schedule, and premium payment disclosure 
     with certain changes. Language with respect to premium 
     amounts and payment schedule has been modified to clarify 
     intent. The provision providing discounts for producers of 
     crops damaged by scab is omitted. Premium assistance at the 
     75, 80, and 85 percent coverage levels are increased to 55 
     percent, 48 percent, and 38 percent, respectively, of the 
     amount of premium used to define loss ratio. Current 
     statutory authority to offer coverage in one percent 
     increments is temporarily suspended. (Section 101)
     Premium schedule for other plans of insurance
       The House bill amends section 508(h)(2) by striking the 
     second sentence limiting the portion of premium FCIC may pay 
     for innovative policies and by creating paragraphs (A) and 
     (B).
       Subparagraph (B) requires that in the case of a policy 
     submitted under section 508(h) (except paragraph (10) or 
     subsection (m)(4)), FCIC shall pay a portion of the premium 
     equal to the percentage, prescribed under section 508(e) for 
     a similar level of coverage, of the total amount of the 
     premium used to define loss ratio, and the dollar amount of 
     the administrative and operating expenses that would be paid 
     by FCIC under section 508(e) for a similar level of coverage. 
     (Section 102)
       The Senate amendment amends section 508(e) by striking 
     paragraph (1) relative to requiring FCIC to pay a portion of 
     premiums and inserts a new paragraph (1) related to the same.
       Provides under the new paragraph (1)(B) that FCIC may pay a 
     portion of the premium as established in 508(e)(2) for 
     innovative plans of insurance approved by FCIC under section 
     508(h). (Section 103)
       The Conference substitute adopts the House provision 
     relative to premium assistance for all policies or plans of 
     insurance developed and approved under section 508(h) or 522 
     or conducted under section 523 (except livestock pilot 
     programs) with certain changes. The administrative and 
     operating costs associated with all such policies or plans of 
     insurance must comply with section 508(k)(4), including any 
     proportional reductions that may apply. Section 508(k)(4), 
     including any proportional reductions, applies

[[Page 9198]]

     to all such policies or plans of insurance whether developed 
     and approved on, before, or after the date of enactment of 
     this Act. However, the effective date of the amendments made 
     by section 102 are delayed until after the reinsurance year 
     2001 with respect to policies or plans of insurance developed 
     and approved subsequent to the date of enactment. During the 
     reinsurance year 2001, the portion of the premium paid by the 
     Corporation for such policies or plans of insurance developed 
     and approved subsequent to the date of enactment may not 
     exceed the dollar amount authorized under the new payment 
     schedule for multiple peril crop insurance. Administrative 
     and operating costs associated with such policies during the 
     reinsurance year 2001 are adjusted accordingly, subject to 
     section 508(k)(4), including any proportional reductions that 
     may apply. (Section 102)
     Catastrophic risk protection
       The House bill amends section 508(b) by striking paragraph 
     (3) relative to yield and loss basis and inserts a new 
     paragraph (3) relative to the same.
       Provides that, beginning with the 2000 crop year, FCIC must 
     offer producers a choice between the current CAT coverage and 
     an alternative CAT coverage that indemnifies the producer on 
     an area yield and loss basis, provides a higher combination 
     of yield and price election, and that FCIC determines is 
     comparable to ``CAT.''
       The House bill amends section 508(b)(5) by adding a new 
     subparagraph (F) relative to payment of fees on behalf of 
     producers. Authorizes a cooperative association or nonprofit 
     trade association to pay ``CAT'' fees on behalf of consenting 
     producers.
       Provides that licensing fees or other payments made by 
     approved insurance providers to a cooperative association or 
     nonprofit trade association in connection with the sale of 
     ``CAT'' or ``buy-up'' insurance shall not be construed as a 
     rebate providing the producer receives prior notice of the 
     fee.
       Provides that nothing in the subparagraph limits the 
     ability of a producer to choose an agent or an insurance 
     provider or refuse ``CAT'' coverage purchased pursuant to 
     this subparagraph. Further requires that ``CAT'' policies 
     sold under such an arrangement must be through a licensed 
     agent or approved insurance provider.
       Requires that participating cooperative associations, 
     nonprofit trade associations, and approved insurance 
     providers that operate under this subparagraph to encourage 
     producer members to purchase appropriate coverage.
       The House bill amends section 508(b)(11) reducing loss 
     adjustment expense reimbursements relative to CAT policies to 
     approved insurance providers from 11 percent of imputed 
     premium to 8 percent of the same.
       Amends section 508(k)(4)(A)(ii) by reducing administrative 
     and operating expense reimbursements to approved insurance 
     providers from 24.5 percent of premium used to define loss 
     ratio to 24 percent of the same.
       Provides that amendments are applicable with respect to the 
     2001 and subsequent reinsurance years. (Sections 108, 109 and 
     310(a)(1))
       The Senate amendment requires any person that sells or 
     solicits the purchase of a policy or adjusts losses under the 
     FCIA in any state must be licensed and qualified to do 
     business in that state, and must comply with all state 
     regulations (including commission and anti-rebating 
     regulations) as required under state law. (Section 313)
       The Conference substitute adopts the House provisions 
     relative to the provision of alternative catastrophic risk 
     protection and the reimbursement rate change for loss 
     adjustments associated with catastrophic risk protection. The 
     reduction in administration and operating cost reimbursement 
     is omitted. The Conference substitute further adopts the 
     House provision relative to the payment of catastrophic risk 
     protection fees by associations on behalf of member 
     producers, and the treatment of licensing fees received by 
     associations in connection with the issuance of insurance 
     with changes. Rebating in connection with the issuance of 
     crop insurance coverage is subject to the State laws in which 
     the rebate is made. If a cooperative association or trade 
     association is located in a State that permits rebating in 
     connection with the issuance of crop insurance coverage, the 
     association may pay catastrophic risk protection (CAT) fees 
     on behalf of members in that State or in a contiguous State. 
     A report to Congress on the operation and impact of this 
     provision is required. Finally, the Conference substitute 
     increases the fees associated with catastrophic risk 
     protection from $60 to $100 per crop per county. (Section 
     103)
     Administrative fee for additional coverage
       The Conference substitute provides for an administrative 
     fee of $30 per crop per county to be paid by producers 
     electing coverage in excess of catastrophic risk protection. 
     (Section 104)
     Assigned yields and actual production history adjustments
       The House bill amends section 508(g) by adding paragraph 
     (4) relative to adjustment in actual production history to 
     establish insurable yields.
       Provides that this paragraph shall apply when FCIC uses the 
     APH of a producer to establish insurable yields for a crop 
     for the 2001 and subsequent crop years.
       Provides that, if, for one or more of the crop years used 
     by a producer to establish APH, the producer's yield is less 
     than 60 percent of the applicable ``T'' yield, the producer 
     may exclude each of such crop years and replace the excluded 
     yield with a yield equal to 60 percent of ``T''. This section 
     applies retroactively to already recorded yields and 
     prospectively to future yields.
       Amends section 508(g) by adding paragraph (5) relative to 
     APH adjustment to reflect participation in major pest control 
     efforts.
       Requires FCIC to develop a methodology for adjusting the 
     APH of a producer's crop when the producer's farm is located 
     in an area where efforts have been undertaken to eradicate or 
     retard plant pests and disease, where the presence of the 
     pest or disease has been found to reduce applicable crop 
     yields, and where the efforts undertaken have been effective. 
     Requires APH adjustments to reflect the success of the effort 
     undertaken. (Section 103)
       The Senate amendment amends section 508(g)(2)(B) by 
     requiring FCIC to assign a producer a yield for a crop where 
     the producer has not had a share of the production of the 
     crop for more than 2 years; has not before farmed the land; 
     or rotates to a crop that has not before been produced on the 
     farm.
       The Senate amendment amends section 508(g) by adding 
     paragraph (4) relative to transitional adjustments for 
     disasters.
       Defines ``a producer that has suffered a multiyear 
     disaster'' as a producer or successor entity that has 
     suffered a natural disaster during at least 3 of the 
     immediately preceding 5 crop years that resulted in a 
     cumulative reduction of at least 25 percent in APH of a crop.
       Provides that, beginning with the 2001 crop year, a 
     producer of an insured crop that has suffered a multiyear 
     disaster may exclude 1 year of the crop's production history 
     for each 5 years included in the crop's APH.
       Requires FCIC to pay for any increased premiums, 
     indemnities, and administrative and operating expenses that 
     result from the exercise of a producer to exclude 1 year of a 
     crop's production history.
       Prohibits FCIC from limiting any increase in a producer's 
     APH due to the producer's actual production of the crop in 
     succeeding years until such time that the producer's APH has 
     recovered to the level obtained in the year before the first 
     year of multiyear disaster.
       Rescinds FCIC authority allowing eligible producers to 
     exclude any 1 crop year in the first crop year where a policy 
     is available to adequately address natural disasters 
     occurring in multiple crop years.
       Makes the paragraph applicable for the 2001 through 2004 
     reinsurance years. (Sections 104 & 105)
       The Conference substitute adopts the Senate provision 
     relative to assigned yields and the House provision relative 
     to adjustments to actual production history with minor 
     changes to clarify intent. (Section 105)
     Review and adjustment in rating methodologies
       The House bill amends section 508(a) by adding a new 
     paragraph (7) relative to the review and adjustment in rating 
     methodologies.
       Requires FCIC to periodically review the methodologies 
     employed for rating plans of insurance consistent with 
     section 507(c)(2) relative to contracting for such services. 
     Requires FCIC to analyze the rating and loss history of 
     policies and plans of insurance for crops by area and make 
     appropriate adjustments for the 2000 crop year or as soon as 
     possible where premium rates are found to be excessive. 
     (Section 104)
       The Senate amendment requires FCIC to contract for the 
     study and development of alternative rating methodologies for 
     rating plans of insurance for ``CAT'' and ``buy-up'' 
     coverage, taking into account producers not electing to 
     participate in crop insurance and those electing only ``CAT'' 
     coverage.
       Requires that, with respect to such rating studies, a 
     priority be given to crops with the largest average acreage 
     nationwide but lowest percentage of producer participation at 
     buy-up coverage levels.
       Requires FCIC to provide funding for rating studies from 
     the account established under section 516(b)(2)(A) of the 
     FCIA, and specifically authorizes $1 million for fiscal years 
     2001 and 2002 and $250,000 in fiscal years 2003 and 2004.
       Provides that the paragraph relative to funding be 
     applicable for the fiscal years 2001 through 2004. (Section 
     202)
       The Conference substitute adopts the House provision 
     relative to review and adjustment in rating methodologies 
     with a change to require such adjustments take place in the 
     2002 crop year and thereafter, rather than in the 2000 crop 
     year and thereafter. (Section 106)
       The Managers urge the Corporation to complete the process 
     of developing alternative rating methodologies for all 
     insurable crops. The Managers also urge the Corporation to 
     base Multi-Peril Crop Insurance (MPCI) cotton rates in Texas 
     on the results of the analysis prepared on their behalf by 
     researchers at Montana State University and to adopt these 
     rates beginning with the 2001 crop year on the same basis as 
     the Corporation implemented revised MPCI Premium rates in the 
     Mid-South and Far West regions.

[[Page 9199]]


     Quality adjustment
       The House bill amends section 508(a) by adding a new 
     paragraph (9) relative to quality grade loss adjustment.
       Requires that, consistent with subsection (m)(4) relative 
     to contracting for research requirements, FCIC enter into a 
     contract by the 2000 crop year to analyze quality loss 
     adjustment procedures and make adjustments necessary to more 
     accurately reflect local quality discounts, taking into 
     account actuarial soundness requirements and prevention of 
     fraud, waste, and abuse. (Section 112)
       The Senate amendment strikes 508(a)(6) requiring 
     guidelines, reports, studies, and pilot programs relative to 
     the addition of new and specialty crops, and inserts a new 
     paragraph (6) relative to quality adjustment.
       Requires FCIC to offer coverage that permits a reduction in 
     production for purposes of determining a loss to reflect any 
     production not meeting quality standards.
       Allows producers to opt-out of quality adjustment coverage 
     and receive a reduction in premium equal to the cost of the 
     coverage.
       Requires FCIC to contract for the study of quality loss 
     adjustment procedures and, based on the study, to adjust the 
     coverage to better reflect local quality discounts, taking 
     into consideration actuarial soundness and the prevention of 
     fraud, waste, and abuse. (Section 101)
       The Conference substitute adopts the Senate provision 
     relative to quality adjustments with certain changes. 
     Language to permit producers to opt-out of such coverage and 
     receive a premium reduction is omitted. Language is included 
     to permit producers to elect such coverage, under limited 
     circumstances, on a basis smaller than a unit, and a 
     provision relative to the manner in which the Corporation 
     sets quality standards is also included. (Section 107)
     Double insurance and prevented planting
       The House bill amends section 508(a) by adding a new 
     paragraph (8) relative to prevented planting.
       Allows producers to opt-out of prevented planting coverage 
     and receive a reduction in premium equal to the cost of the 
     prevented planting coverage.
       Requires FCIC to provide an equal percentage level of 
     prevented planting coverage for each crop.
       Limits prevented planting payments to producers prevented 
     from planting due to conditions generally affecting the area 
     in which the producer farms.
       Authorizes a producer who received a prevented planting 
     payment to plant a second crop other than the crop prevented 
     from being planted on the same acreage, except that the 
     second crop is not eligible for NAP or crop insurance 
     coverage.
       Provides that a producer who elects to plant a second crop 
     which is not insurable or NAP eligible still qualifies for 
     AMTA loans and payments, CRP, and guaranteed and direct loans 
     and other benefits under the ConAct.
       Requires FCIC to assign a producer who receives a prevented 
     planting payment and who elects to plant a second crop a 
     yield for the prevented crop for that year equal to 60 
     percent of the producer's actual production history for 
     purposes of future APH.
       Denies a prevented planting payment to a producer who 
     plants a second crop before the latest planting date for the 
     crop prevented from being planted.
       The House bill amends section 508(a) by adding a new 
     paragraph (10) relative to limitations on double insurance.
       Prohibits a policy or plan of insurance for more than one 
     crop planted on the same acreage in the same crop year unless 
     the coverage for the additional crop is ``CAT'' coverage.
       Provides an exception to the limitation on double insurance 
     where both crops are normally harvested within the same crop 
     year on the same acreage; there is an established practice of 
     double-cropping in the area and the additional crop is 
     customarily double- cropped in the area with the first crop; 
     a policy of insurance is offered for both crops; and the 
     additional crop is planted on or before the final or late 
     planting date for that crop. (Sections 110 and 201)
       The Senate amendment is substantially the same as the H.R. 
     2559 except the following additional provisions.
       Makes the prevented planting paragraph applicable for the 
     2001 through 2004 crop years.
       Requires that changes made to prevented planting coverage 
     be reflected in the rates for coverage not later than the 
     2001 reinsurance year. (Section 102)
       The Senate amendment amends section 508(m) (subsection (n) 
     designated as (m) under section 207 of Senate amendments.
       Requires that FCIC may only offer insurance or reinsurance 
     on 1 crop produced on specific acreage during a crop year, 
     unless there is an established practice of double-cropping in 
     an area, the additional insurance is offered to a crop that 
     is customarily double-cropped in the area, and the producer 
     has a history of double-cropping or the acreage has 
     historically been double-cropped. (Section 308)
       The Conference substitute provides limitations with respect 
     to double insurance and prevented planting coverage. The 
     Conference substitute establishes a new Section 508A for both 
     double insurance and prevented planting and provides the 
     following definitions:
       ``First Crop'' means the first crop of the first 
     agricultural commodity insured and planted for harvest, or 
     prevented from being planted, on specific acreage during a 
     crop year.
       ``Second Crop'' means a second crop of the same or 
     different agricultural commodity following the first crop 
     that is planted for harvest on the same acreage as the first 
     crop in the same crop year. However, the term does not 
     include a replanted crop.
       ``Replanted Crop'' means the second planting of the first 
     crop on the same acreage in the same crop year, if the 
     replanting is required by the terms of the policy of 
     insurance on the first crop.
       In the case of double insurance, the Conference substitute 
     provides a producer with two options if a first crop has a 
     total or partial insurable loss. If the producer chooses not 
     to plant a second crop, then the producer is entitled to 100 
     percent of the indemnity payment for the first crop.
       If the producer plants a second crop, then the producer 
     will receive an initial indemnity payment up to 35 percent of 
     the total calculated indemnity payment for the first crop. 
     The Managers intend that the Secretary adjust the percentage 
     paid as necessary to prevent abuse of the program. If the 
     producer is not paid an indemnity on the second crop, then 
     the producer will receive an additional indemnity payment 
     equal to the total calculated indemnity on the first crop 
     less the initial indemnity payment. If an indemnity is paid 
     with respect to the second crop, then the producer is not 
     entitled to receive the additional indemnity payment with 
     respect to the first crop.
       In the case of a producer who chooses to plant a second 
     crop, the premium owed for insurance on the first crop will 
     be reduced commensurate with any reduction in indemnity 
     payment received on the first crop. If no indemnity is paid 
     on the second crop, then the producer owes the full premium 
     for insurance on the first crop.
       With regard to prevented planting, the Conference 
     substitute provides a producer with two options if a first 
     crop is prevented from being planted. If the producer chooses 
     not to plant a second crop, then the producer may collect 100 
     percent of the prevented planting guarantee for the first 
     crop.
       If the producer plants a second crop, then the producer 
     will receive up to 35 percent of the prevented planting 
     guarantee for the first crop. The Managers intend that the 
     Secretary adjust the percentage paid as necessary to prevent 
     abuse of the program. In addition, except for producers who 
     double crop in a double cropping area, a producer who plants 
     a second crop will be assigned a recorded yield of 60 percent 
     of the producer's actual production history for the crop on 
     which a prevented planting guarantee payment is received. 
     This will be used in determining a producer's actual 
     production history for subsequent crop years for the first 
     crop. The Corporation may only pay the prevented planting 
     guarantee to a producer if the conditions that prevented the 
     first crop from being planted have also generally affected 
     other producers in the area. In addition, the Corporation may 
     not make a prevented planting guarantee payment for the first 
     crop in the case of any producer who plants a second crop 
     before the latest planting date for the first crop.
       In the case of a producer who chooses to plant a second 
     crop, the producer's premium for the first crop will be 
     reduced commensurate with any reduction in indemnity payment 
     received on the first crop.
       The Conference substitute provides that, notwithstanding 
     the restrictions placed on double insurance and prevented 
     planting, a producer will receive full indemnity payments and 
     prevented planting guarantees on 2 or more crops in a double 
     cropping area. There must be an established practice of 
     planting 2 or more crops for harvest in the same crop year in 
     the area, as determined by the Corporation, and an additional 
     coverage policy or plan of insurance must be offered with 
     respect to the commodities planted on the same acreage in the 
     same crop year. In addition, the producer must have a history 
     of planting 2 or more crops in the same year; the applicable 
     acreage must have historically been planted to 2 or more 
     crops in the same year; and the second or subsequent crops 
     must be customarily planted after the first crop on the same 
     acreage in the same year. The Managers intend that in 
     determining when an agricultural commodity is customarily 
     double cropped in a double cropping area, that the 
     Corporation consider the farming and irrigation practices 
     applicable to the crops in the area. (Section 108)
     Noninsured crop disaster assistance program
       The House bill amends section 196(i) of the AMTA in 
     paragraph (1) by striking ``gross revenues'' wherever it 
     appears and inserting ``gross income'' and by striking 
     paragraph (4) and adding a new paragraph (4).
       Paragraph (4) provides that a person with a qualifying 
     adjusted gross income of greater than $2 million during the 
     taxable year is ineligible to receive NAP assistance.
       The House bill also amends section 196(b) of the FAIR Act 
     of 1996 to require that to be eligible for NAP, producers 
     must provide annually to the Secretary, acting through the 
     agency, records of crop acreage, acreage

[[Page 9200]]

     yields, and production for each eligible crop. (Sections 111 
     and 205)
       The Senate amendment amends section 196(a)(2) of AMTA by 
     adding a new subparagraph (C) allowing the Secretary to 
     consider all varieties of a crop eligible for NAP as a single 
     eligible crop for program purposes.
       Amends section 196(b)(1) relative to when a producer must 
     apply for NAP assistance, striking discretionary authority 
     for the Secretary to determine the application deadline and 
     inserting the requirement that producers apply not later than 
     March 15.
       Strikes paragraph 196(b)(2) providing the Secretary 
     discretionary authority pertaining to what production records 
     a producer must submit, and inserting a requirement that, to 
     be eligible for NAP, producers must annually submit crop 
     acreage, acreage yields, and production for each crop.
       Amends paragraph 196(b)(3) to require annual reporting of 
     acreage planted or prevented from being planted.
       Strikes section 196(c) relating to loss requirements and 
     inserts a new subsection (c) relative to the same.
       Provides that a producer of an eligible crop must have 
     suffered a loss of a noninsured crop as a result of drought, 
     flood, or other natural disaster as determined by the 
     Secretary.
       Authorizes the Secretary to make payments under NAP once a 
     drought, flood, or other natural disaster determination is 
     made.
       Changes the prevented planting payment trigger for eligible 
     crops from a 35 percent acreage threshold to a 15 percent 
     acreage threshold.
       Authorizes the Secretary to make a NAP payment irrespective 
     of any area loss trigger.
       Amends section 196 by inserting a new subsection (j) and 
     (k) relative to new eligible crops and service fees, 
     respectively, and designating the current subsection (j) as 
     subsection (l).
       Provides under section 196(j)(1) that the NAP payment to a 
     producer of an eligible crop that is new to an area will be 
     equal to 35 percent of the established yield for the first 
     year the crop is produced.
       Provides that the NAP payment to a producer of an eligible 
     crop that is new to an area will be equal to 45 percent of 
     the established yield for the second through fourth years the 
     crop is produced, except where a NAP payment was made in the 
     first year in which case the payment is 35 percent.
       Makes a producer of an eligible crop ineligible for a NAP 
     payment where the producer collects a NAP payment in the 
     first 2 crop years, until such time that the crop is produced 
     for 3 consecutive crop years with no reported losses.
       Provides for a service fee for NAP eligibility under 
     section 196(k), requiring producers to pay the Secretary an 
     amount equal to the fee for a CAT policy ($60 per crop per 
     county) or $200 per producer per county, not to exceed $600 
     per producer. Provides for the waiver of NAP fees for limited 
     resource producers.
       Provides that NAP fees collected by the Secretary be 
     deposited in the CCC Fund. Makes amendments under this 
     section applicable for the 2001 through 2004 crop years. 
     (Section 106)
       The Conference substitute adopts the Senate provision 
     relative to the Noninsured Crop Disaster Assistance Program 
     with changes. Producers are required to make an application 
     for NAP eligibility not later than 30 days before the 
     beginning of the coverage period. Changes relative to 
     prevented planting and yields for new NAP eligible crops 
     provided under the Senate amendment are omitted. The NAP fee 
     provided in the Senate amendment is modified to require 
     producers to pay the lesser of $100 per crop per county or 
     $300 per producer per county, but not to exceed $900 per 
     producer. (Section 109)

                Subtitle B--Improving Program Integrity

     Improving program compliance and integrity
       The House bill amends section 506(q) by designating 
     paragraphs (1) and (2) as (2) and (3), creating paragraph (1) 
     relative to purposes, and creating new paragraphs (4) through 
     (7) relative to certain compliance requirements.
       Paragraph (4) requires the Secretary to develop and 
     implement a coordinated plan for FCIC and FSA to reconcile 
     information received from producers and, beginning with the 
     2000 crop year, requires FCIC and FSA to annually conduct 
     such reconciliation to identify and address any 
     discrepancies.
       Paragraph (5) requires the Secretary to develop and 
     implement a coordinated plan for FSA to assist FCIC in 
     ongoing monitoring of FCIA programs, including conducting 
     fact findings relative to allegations of fraud, waste or 
     abuse at the request of FCIC or on its own initiative after 
     consultation with FCIC; reporting fraud, waste, abuse, and 
     program vulnerabilities to FCIC; assisting FCIC in auditing a 
     statistically appropriate number of claims. Also provides 
     that the Secretary ensure that FSA personnel are 
     appropriately trained and, at minimum, receive the same 
     training and testing as loss adjusters.
       Requires maintenance of effort on the part of approved 
     insurance providers in conducting audits of claims, requires 
     FCIC to respond within 90 days of receiving notice by 
     approved insurance providers of intentional violations, and 
     requires a coordinated response to violations by FCIC and 
     approved insurance providers.
       Paragraph (6) requires the Secretary to establish a 
     mechanism under which state FSA committees are consulted 
     concerning policies and plans of insurance offered in the 
     state.
       Paragraph (7) requires the Secretary to submit an annual 
     report to the House and Senate Agriculture Committees 
     containing findings relative to the efforts undertaken in 
     paragraphs (4) and (5), identifying specific incidences of 
     fraud, waste, and abuse along with actions taken to eliminate 
     the same.
       The House bill amends section 506(n) by striking 
     ``penalties'' where it occurs and inserting ``sanctions'' and 
     redesignating paragraph (2) as paragraph (3).
       Strikes paragraph (1) relative to false information and 
     inserts new paragraph (1) relating to the same.
       Provides that a producer, agent, loss, adjuster, approved 
     insurance provider, or other person that intentionally 
     provides false or inaccurate information to FCIC or to an 
     approved insurance provider with respect to a policy may, 
     after notice and opportunity for a hearing, be subject to 
     sanctions.
       Provides that sanctions include a civil fine not to exceed 
     the greater of the amount of the pecuniary gain obtained by 
     the violator or $10,000; debarment of a producer from 
     specified farm programs for up to 5 years; and debarment of 
     other persons from benefits under the FCIA for up to 5 years. 
     Also provides that FCIC may require the producer to forfeit 
     any premium owed notwithstanding denial of a claim or 
     collection of overpayment if the violation is material.
       Requires sanctions be disclosed on each policy. (Sections 
     202 and 203)
       The Senate amendment strikes section 506(n), relative to 
     penalties for false information, and provides a new 
     subsection (n) relative to sanctions for program 
     noncompliance and fraud.
       Provides that a producer, agent, loss, adjuster, approved 
     insurance provider, or other person that intentionally 
     provides false or inaccurate information to FCIC or to an 
     approved insurance provider with respect to a policy may, 
     after notice and opportunity for a hearing, be subject to a 
     sanction under this subsection.
       Provides that a producer, agent, loss adjuster, approved 
     insurance provider, or other person that intentionally fails 
     to comply with an FCIC requirement is subject to sanctions, 
     and that any such person (other than a producer) 
     intentionally failing to comply with an SRA is also subject 
     to sanctions.
       Provides sanctions for material violations relative to 
     providing false information and compliance failure. Sanctions 
     include a civil fine not to exceed the greater of the amount 
     of the pecuniary gain obtained by the violator or $10,000; 
     debarment of a producer from all farm programs for up to 5 
     years; and debarment of other persons from benefits under the 
     FCIA for up to 5 years.
       Requires the Secretary to consider the gravity of the 
     violation in determining whether to impose a sanction and the 
     amount or degree of any sanction imposed. Also requires 
     disclosure of sanctions on each policy of insurance.
       Requires that funds collected under this subsection be 
     deposited into the insurance fund provided under section 
     516(c)(1) of the FCIA (general FCIA insurance fund). Amends 
     section 516(c)(1) of the FCIA by striking paragraph (1) and 
     inserting a new paragraph (1) providing that, along with 
     premium income and amounts under section 516(a)(2), sanctions 
     fees are to be deposited in this fund.
       The Senate amendment amends section 506(q) of the FCIA, 
     relative to program compliance, by adding at the end 
     paragraphs (3) and (4).
       Paragraph (3) requires FCIC to develop procedures for an 
     annual review of each agent and loss adjuster by approved 
     insurance providers, oversee such review, and consult with 
     approved insurance providers relative to any remedial action 
     required.
       Requires FCIC to file a report with the House and Senate 
     Agriculture Committees by the end of each fiscal year 
     relative to compliance, along with recommendations for any 
     necessary legislative or administrative changes. (Sections 
     303 and 304)
       The Conference substitute adopts the House provisions 
     relative to improving compliance and integrity with 
     modifications. Procedures with respect to FSA inquiries into 
     fraud, waste, and abuse as well as notice and response 
     requirements concerning allegations of fraud, waste, and 
     abuse are clarified. The Secretary is required to establish 
     procedures by which the Corporation will be able to identify 
     agents and loss adjusters with disparate performance records 
     in order to conduct a review and take remedial action where 
     appropriate. Certain information, including the name and 
     identification number of each insured and the crop to be 
     insured, the elected coverage level, and price election 
     selected must be received by the Corporation approximately 30 
     days subsequent to the sales closing date. The Conference 
     substitute also adopts the Senate provision relative to 
     sanctions for program noncompliance and

[[Page 9201]]

     fraud, with a minor change to exclude the failure to comply 
     with a Standard Reinsurance Agreement from the class of 
     activities that would trigger the imposition of sanctions 
     enumerated under this section. The Conference substitute 
     further adopts the Senate provision to require the 
     Corporation to develop procedures for approved insurance 
     providers to review the performance of agents and loss 
     adjusters. Finally, the Conference substitute adopts 
     provisions to require the Secretary to upgrade information 
     management systems and use data mining and data warehousing 
     technologies, including contracting with private entities 
     with expertise in this area, in implementing compliance 
     provisions. Limited funding is authorized for fiscal years 
     2001 through 2005 to carry out these compliance activities, 
     excluding salaries. (Section 121)
       In an effort to combat fraud and abuse in the crop 
     insurance program, the Managers direct the Secretary to 
     develop and implement a coordinated plan for the Farm Service 
     Agency to assist the Corporation in monitoring and reporting 
     on crop insurance program activity at the local field level. 
     In addition, the Corporation must establish a working 
     relationship with insurance providers in order that 
     information regarding fraud, waste, and abuse may be reported 
     to the Corporation without fear of legal reprisal to the 
     insurance providers. The Managers expect the Secretary to 
     ensure that each of the agency roles are clearly defined with 
     the Corporation responsible for implementing all rules and 
     regulations relating to the insurance program.
       The Managers expect that the Corporation will make full use 
     of the capabilities of information management systems, 
     specifically data warehousing and data mining technologies, 
     both within or outside of the Federal government, to fulfill 
     the requirements of this section to improve the compliance 
     and integrity of the Federal crop insurance program. The 
     Managers expect the Corporation to use funds made available 
     by this Act, or otherwise available, to contract with the 
     Center for Agribusiness Excellence at Tarleton State 
     University and the Center for Agribusiness and 
     Agrotechnologies at Bradley University for management and 
     development of a system to implement the requirements of this 
     section.
       The Managers direct the Corporation to place the highest 
     financial priority and emphasis on the interactive computer 
     operations to ensure that participating insurance companies 
     are able to accurately transmit financial data back to the 
     agency.
     Protection of confidential information
       The House bill amends section 502 by adding a new 
     subsection (c) relative to the protection of confidential 
     information.
       Prohibits the Secretary, any other officer, employee, or 
     agency of USDA, an approved insurance provider and its 
     employees and contractors, and any other person from 
     disclosing producer-derived information to the public unless 
     it is transformed into a statistical or aggregate form that 
     does not reveal the producer's identity.
       Provides for penalties consistent with section 1770(c) of 
     the Food Security Act of 1985, including fines up to $10,000 
     and or imprisonment for up to 1 year. (Section 204)
       The Senate amendment has no comparable provision.
       The Conference substitute adopts the House provision 
     protecting producer confidentiality with a minor change to 
     allow producers to consent to the release of otherwise 
     protected information as long as program eligibility is not 
     conditioned upon the release. (Section 122)
     Good farming practices
       The House bill amends section 508(a)(3)(C) relative to 
     losses excluded from coverage by clarifying that 
     scientifically sound sustainable and organic farming 
     practices are good farming practices. (Section 309)
       The Senate amendment is substantially the same as the House 
     bill.
       The Conference substitute adopts the Senate provision 
     relative to the inclusion of scientifically sound sustainable 
     and organic farming practices as good farming practices for 
     purposes of what constitutes an insurable loss under the 
     Federal Crop Insurance Act. The Conference substitute further 
     requires that producers be provided with an informal 
     administrative review of a determination regarding good 
     farming practices but proscribes any such review pursuant to 
     the National Appeals Division. Producers have a right to 
     judicial review relative to a determination regarding good 
     farming practices without having to exhaust any informal 
     administrative review. However, any determination regarding 
     good farming practices may not be reversed under a judicial 
     review unless it is found to be arbitrary or capricious. 
     (Section 123)
       The Managers understand that producers of organic cotton 
     who destroy their crop when it has been exposed to chemicals 
     used in boll weevil eradication are currently being penalized 
     relative to their actual production history despite the fact 
     that they do not qualify for a crop insurance indemnity. The 
     Managers expect the Corporation to immediately rectify this 
     inequity with respect to any producer of an organic crop who 
     must destroy that crop in order to maintain organic 
     certification. To the extent that no indemnity is received 
     for a lost crop under these circumstances, no penalty 
     relative to actual production history should obtain.
     Records and reporting
       The House bill amends section 508(f)(3)(A) of the FCIA 
     relative to producer reporting requirements.
       Requires producers participating in the crop insurance 
     program to annually report records acceptable to the 
     Secretary regarding crop acreage, acreage yields, and 
     production for each crop insured.
       Amends section 506(h) of the FCIA by requiring the 
     coordination of records kept under the FCIA and under the NAP 
     program to avoid duplication, to streamline submission 
     procedures, and to enhance accuracy.
       Provides that such records collected under NAP and the FCIA 
     be made available to appropriate state and federal agencies 
     to carry out these programs and other agricultural programs 
     and related responsibilities.
       Amends section 196(b) of the FAIR Act of 1996 to require 
     that to be eligible for NAP, producers must provide annually 
     to the Secretary, acting through the agency, records of crop 
     acreage, acreage yields, and production for each eligible 
     crop. (Section 205)
       The Senate amendment amends section 508(f)(3)(A) of the 
     FCIA relative to producer reporting requirements.
       Requires producers participating in the crop insurance 
     program to annually report records acceptable to the 
     Secretary regarding crop acreage, acreage yields, and 
     production for each crop insured.
       Amends section 506(h) of the FCIA by requiring the 
     coordination of records kept under the FCIA and under the NAP 
     program to avoid duplication, to streamline submission 
     procedures, and to enhance accuracy.
       Provides that such records collected under NAP and the FCIA 
     be made available to appropriate state and federal agencies 
     to carry out these programs and other agricultural programs 
     and related responsibilities.
       The Senate amendment also strikes paragraph 196(b)(2) 
     providing the Secretary discretionary authority pertaining to 
     what production records a producer must submit, and inserting 
     a requirement that, to be eligible for NAP, producers must 
     annually submit crop acreage, acreage yields, and production 
     for each crop. Amends paragraph 196(b)(3) to require annual 
     reporting of acreage planted or prevented from being planted. 
     (Sections 306 and 106)
       The Conference substitute adopts the House provision with 
     changes to omit provisions dealt with elsewhere in the Act. 
     (Section 124)

                Subtitle C--Research and Pilot Programs

     Research and development
       The House bill amends section 508(h) by adding a new 
     paragraph (6) relative to reimbursement of research, 
     development, and maintenance costs.
       Requires FCIC to reimburse an applicant for research, 
     development, and maintenance costs directly related to a 
     policy submitted to and approved by the Board and, if 
     applicable, sold to producers.
       Authorizes payments to applicants beginning with fiscal 
     year 2001 and limits reimbursement for maintenance to no more 
     than 4 reinsurance years from approval, after which FCIC 
     assumes maintenance of successful policies.
       Provides that payments under this paragraph be considered 
     payment in full for research and development and any property 
     rights.
       Requires FCIC to determine the amount of reimbursement 
     based upon the complexity of the policy or material and the 
     size of the area to be served. Requires FCIC to issue final 
     regulations not later than October 1, 2000.
       The House bill also authorizes $55 million for each fiscal 
     year for reimbursement and direct contracting for research 
     and development of new policies.
       The House bill amends section 508(m) by adding a new 
     paragraph (4).
       Paragraph (4) requires FCIC to make full use of the 
     reimbursement provisions of section 508(h) to encourage and 
     promote private research and development of new policies and 
     plans of insurance.
       Provides that where FCIC determines that a crop, including 
     a specialty crop, is not adequately served by crop insurance, 
     FCIC may enter into contracts directly with any person or 
     entity with experience in crop insurance or farm or ranch 
     risk management, including universities, approved insurance 
     providers, and trade and research organizations, to conduct 
     research and development, without regard to the limitations 
     contained in the FCIA.
       Provides that the authority of FCIC to contract for the 
     research and development of policies, includes research and 
     development for policies based on adjusted gross income, cost 
     of production, quality losses, and an intermediate base 
     program with a higher coverage and cost than ``CAT''.
       Delays effective date of contracting authority until 
     October 1, 2000.
       Provides that FCIC may offer any policy developed under 
     this subparagraph that is approved by the Board.
       Requires FCIC to contract for research and development 
     regarding one or more revenue coverage plans involving 
     current or new

[[Page 9202]]

     market instruments. Requires FCIC to report the results of 
     the contract within 15 months from enactment of this 
     paragraph.
       Amends section 508(m)(2) relative to the prohibition of 
     FCIC research with respect to risk protection generally 
     available from the private sector, to prohibit FCIC from 
     conducting its own research and development of new policies 
     on or after October 1, 2000. Provides that FCIC may continue 
     to offer any policies developed by FCIC before that date.
       Amends section 508(m) by adding a new paragraph (5), 
     relative to partnerships for risk management development and 
     implementation.
       Authorizes FCIC to enter into partnerships with public and 
     private entities to increase the availability of loss 
     mitigation, financial, and risk management tools for 
     producers of crops covered under NAP and other under-served 
     and specialty crop producers.
       Authorizes FCIC to enter into partnerships with CSREES, 
     ARS, NOAA, and other appropriate public and private entities 
     with demonstrated ability in developing and implementing risk 
     management and marketing options for specialty and under-
     served crops.
       Provides a list of objectives to be obtained as a result of 
     any partnerships.
       Provides that funds not used for reimbursements or for 
     direct contracting for specialty and under-served crops may 
     be used by FCIC to enter into such partnerships.
       Provides that funding for partnerships during fiscal years 
     2001 through 2004 are available where amounts used for 
     reimbursements and direct contracting are less than $44 
     million, $47 million, $50 million, and $52 million for fiscal 
     years 2001 through 2004, respectively, and where the amount 
     for partnerships does not exceed the difference between the 
     amounts provided above and the amount actually spent thereon.
       This paragraph is applicable beginning on October 1, 2000.
       The House bill amends section 508(h)(6) by adding a new 
     subparagraph (E) relative to expenditures on reimbursements 
     and direct contracting for research and development.
       Provides that of the amounts made available for 
     reimbursements and direct contracting for research and 
     development, $25 million shall be reserved for direct 
     contracting for specialty and under-served crops. Provides 
     that any unused portions of the reserved amount may be used 
     for reimbursements, with priority for under-served crops. 
     Also provides that of the amounts made available for 
     reimbursements and direct contracting for research and 
     development, more than $25 million may be used for 
     contracting for specialty and under-served crops where 
     necessary.
       Authorizes $55 million for each fiscal year for 
     reimbursement and direct contracting for research and 
     development of new policies.
       Amends section 516(a)(2) by adding a new subparagraph (D) 
     authorizing appropriations for costs associated with 
     research, development, and maintenance costs.
       Amends section 516(b)(1) by adding a new subparagraph (E) 
     authorizing reimbursements, research, and development costs 
     to be paid by the FCIA Fund. (Section 302, 303 and 304)
       The Senate amendment provides that with respect to research 
     and analysis concerning any crop insurance issue, including 
     outreach, education, pilot programs, or the development of 
     new plans of insurance, FCIC is limited to the authority 
     provided under the newly created section 522 and the funds 
     made available under section 516(b)(2)(A) of the FCIA when 
     contracting or reimbursing research costs related to policy 
     development or modification. Newly created section 523 
     relative to specialty crops is exempted from this limitation.
       Requires that FCIC establish the development of a pasture, 
     range, and forage program to promote land stewardship as ``1 
     of the highest research and development priorities.''
       Requires FCIC to contract for a study to determine whether 
     the development of a plan of insurance providing coverage for 
     multiple years would curb fraud and abuse, and requires a 
     report on findings to the House and Senate Agriculture 
     Committee within 1 year of enactment.
       The Senate amendment also amends the FCIA by adding at the 
     end section 523, relative to specialty crops.
       Authorizes the Specialty Crops Coordinator to make grants 
     or enter into contract for research and development of 
     policies to serve under-served specialty crops and reimburse 
     costs associated with such research and development.
       Authorizes the Specialty Crops Coordinator to enter into 
     partnerships with public and private entities to increase the 
     availability of risk management tools for specialty crop 
     producers.
       Authorizes $20 million in funding from section 516(c)(1) 
     (FCIA Fund) for each of fiscal years 2001 through 2004 to 
     enter into cooperative agreements with public and private 
     entities to develop and implement risk management tools for 
     specialty crop producers. Provides that such amounts may not 
     come from section 516(b)(2)(A).
       Provides a list of objectives to be obtained as a result of 
     any partnerships.
       Prohibits FCIC from establishing a sales closing date for 
     specialty crops that is before the end of the 120-day period 
     beginning on the date of the final release of materials for 
     policies from RMA and the Specialty Crops Coordinator.
       Allows producers of specialty crops to purchase new 
     coverage or increase coverage levels at any time during the 
     insurance period, subject to a 30-day waiting period and an 
     inspection by FCIC to verify acceptability of the approved 
     insurance provider, provided FCIC is able to adequately rate 
     the risk.
       Requires FCIC and the Specialty Crop Coordinator to jointly 
     conduct feasibility studies for developing new policies for 
     specialty crops, and requires a progress report to Congress 
     not later than 1 year from the date of enactment.
       The authority for the Specialty Crops Coordinator to enter 
     into partnerships and the extension of the sales closing date 
     and time for purchase of coverage is applicable for the 2001 
     through 2004 fiscal years.
       Requires that not later than 180 days after enactment, the 
     Secretary must submit a report to the President and the House 
     and Senate Agriculture Committees assessing USDA's progress 
     in expanding coverage to specialty crops and USDA's plans to 
     continue that progress.
       Also requires that the report include an assessment of 
     whether ``CAT'' has resulted in uniform quality of protection 
     for all regions of the country and fulfilled the goal of 
     increased participation, especially in states with 
     traditionally low participation rates and high proportion of 
     specialty crops. The report should also address the question 
     of whether USDA should resume offering CAT and performing 
     loss adjustments.
       The Senate amendment strikes subsection (m) providing FCIC 
     its current authority to conduct research, surveys, pilot 
     programs, and investigations relating to crop insurance and 
     agriculture-related risks and losses. Subsection (n) is 
     designated as subsection (m).
       Amends section 516(b)(2)(A) to increase mandatory funding 
     for research and development expenses from not to exceed $3.5 
     million for each fiscal year to $4.5 million in fiscal years 
     2001 and 2002, $3.75 million in fiscal years 2003 and 2004, 
     and returning to $3.5 million for each subsequent fiscal 
     year.
       Provides a conforming amendment relative to section 
     references in section 518, defining agricultural commodity. 
     (Section 202, 207 and 309)
       The Conference substitute adopts the House provisions 
     relative to reimbursements, contracting, and partnership for 
     policy research and development with certain changes. The 
     provision includes authority to reimburse research and 
     development costs associated with policies developed before 
     enactment. Reimbursement for research and development costs 
     is limited to policies that are determined to be marketable. 
     Reimbursement for maintenance is limited to 4 reinsurance 
     years from the date of Board approval after which the 
     provider responsible for maintenance has three options. The 
     provider may transfer maintenance responsibility to the 
     Corporation, charge a Board-approved fee to be paid by other 
     providers electing to offer the policy, or continue to 
     maintain the policy and absorb the appurtenant costs. The 
     provision authorizes the Corporation to enter into contracts 
     for research and development on policies in order to (1) 
     increase participation in States where the Corporation 
     determines there is low crop insurance participation or 
     availability, and the State is under-served by the program; 
     (2) increase participation in areas that are under-served by 
     the program; and (3) increase participation by producers of 
     under-served agricultural commodities, including specialty 
     crops. The provision requires the Corporation to consult with 
     groups representing producers that would be served by a 
     policy that is the subject of the research and development 
     before entering into a contract. The Conference substitute 
     adopts the Senate provisions to require the Corporation to 
     establish the development of a pasture, range, and forage 
     program as one of the highest priorities and to require the 
     Corporation to contract for a study relative to offering 
     coverage for multiple years to reduce fraud, waste, and 
     abuse. Provisions are included to make partnership authority 
     under this section eligible for funding for contracting, and 
     to reserve $5 million of such funding for contracting for 
     policy development to increase participation in States where 
     the Corporation determines there is low crop insurance 
     participation or availability and the State is under-served 
     by the program. The Managers consider it a high priority to 
     develop policies that work for producers and products in 
     these low participation states. The provision also requires 
     the Corporation to contract for research and development 
     relative to a cost of production policy. Finally, funding for 
     reimbursements and contracting are limited to new levels. 
     (Section 131)
       The Managers recognize that it is difficult to predict the 
     range of new and innovative approaches to the private 
     development of insurance products under the new environment 
     created under this bill. There is no reason to believe all 
     policies will necessarily fit under the current structure of 
     yield-based or revenue-based products; some may focus on a 
     narrower array of perils than are now included in available 
     coverage. These could include plans to protect against the 
     uncontrollable risks associated with the use of certain

[[Page 9203]]

     conservation techniques such as integrated pest management, 
     best management practices, or conservation tillage systems. 
     The Corporation should take such factors into account when 
     considering approval of such proposals.
       The Managers expect the Corporation to study the 
     feasibility of offering a vine and tree replacement program 
     as an option for growers of grapes, citrus, tree fruit, nut, 
     kiwi, blueberries, and other high-value, permanent crops.
     Pilot program
       The House bill amends section 508(h) by repealing obsolete 
     pilot programs contained in paragraphs (6) and (8) relative 
     to cost of production and assigned yields, respectively.
       Authorizes FCIC to offer pilot programs on a regional, 
     state, or national basis after considering the interests of 
     producers and the interests and risks of FCIC, and to operate 
     the pilot program, including any modifications, for up to 3 
     years with authority to extend for additional periods.
       Amends section 508(h)(4) to require FCIC to promulgate 
     regulations within 180 days of enactment to establish 
     guidelines for the submission and Board review of policies 
     submitted under section 508(h), including streamlined 
     guidelines governing the submission and Board review of pilot 
     programs that the Board determines are limited in scope and 
     duration and involve a reduced level of liability to the 
     government and an increased level of liability to the 
     approved insurance provider.
       Provides that FCIC must notify the applicant of its intent 
     to disapprove a low risk pilot program within 60 days of the 
     submission.
       Requires FCIC to approve or not approve a low risk pilot 
     program within 90 days of submission, and requires a detailed 
     explanation for any disapproval.
       Provides that where FCIC fails to make a timely 
     determination with respect to a low risk pilot program, the 
     pilot is approved for the initial reinsurance year unless an 
     extension is agreed to.
       Amends section 508(h) by striking paragraph (10) relative 
     to time limits for submission of new policies and inserts a 
     new paragraph (10) relative to livestock pilot programs.
       Requires FCIC to conduct 1 or more livestock pilot programs 
     to evaluate risk management tools, including futures and 
     options contracts and policies and plans of insurance, 
     including protection for environmental liability, and 
     requires that the greatest number and variety of programs be 
     evaluated.
       Requires FCIC to begin the conduct of livestock pilot 
     programs during the 2001 fiscal year and without regard to 
     the limitations in the FCIA, except that no coverage may be 
     offered where that coverage is generally available from 
     private insurance.
       Requires FCIC to conduct the livestock pilot programs in a 
     number of counties that will facilitate comprehensive 
     evaluation, and provides that any producer of eligible 
     livestock owning a farm or ranch in a selected county is 
     eligible to participate.
       Defines livestock as cattle, sheep, swine, goats, and 
     poultry.
       Requires FCIC to operate all livestock pilot programs so 
     that, to the maximum extent practicable, associated costs 
     (other than for research and development) are not expected to 
     exceed $20 million for fiscal year 2001, $30 million for 
     fiscal year 2002, $40 million for fiscal year 2003, and $55 
     million for fiscal year 2004 and each subsequent fiscal year.
       Amends section 518 of the FCIA by striking the livestock 
     exclusion from insurance. (Section 105)
       The Senate amendment authorizes FCIC to conduct research, 
     surveys, pilot programs, and investigations relating to crop 
     insurance and agriculture-related risks and losses based on 
     proposals developed by FCIC and others to determine their 
     suitability to meet producer needs.
       Provides an exception that FCIC may not conduct such 
     research activity to provide risk protection where such 
     protection is generally available from the private sector.
       Provides under newly created section 522(a)(3) a list of 
     eligible activities for research activity, including after 
     October 1, 2000, livestock and livestock products, wild 
     salmon, and loss or damage to trees or fruit due to 
     ``sharka.''
       Clarifies the scope of pilot programs under newly created 
     section 522(a)(4). Authorizes FCIC to offer pilot programs on 
     a regional, state, or national basis after considering the 
     interests of producers and the interests and risks of FCIC, 
     and to operate the pilot program, including any 
     modifications, for up to 4 years with authority to extend for 
     additional periods. Also authorizes FCIC to provide premium 
     discounts to producers using whole farm or single crop units 
     of insurance and to cross state and county boundaries to form 
     units.
       Requires under newly created section 522(a)(5) that FCIC 
     evaluate each pilot program and submit a report to the Senate 
     and House Agriculture Committees with a recommendation on 
     whether to offer the pilot on a national basis.
       Authorizes under newly created section 522(a)(6) funds to 
     carry out research and pilot programs (except for research 
     related to alternative rating methodologies authorized under 
     section 202 of the Senate amendment). Authorized amounts may 
     not exceed $10 million in FY2001, $30 million in FY2002, $50 
     million in FY2003, and $60 million in FY2004.
       Provides that provisions under section 201 of the Senate 
     amendment that require funding are applicable for fiscal 
     years 2001 through 2004, including authority for timber, wild 
     salmon, and livestock coverage, general pilot authority, and 
     general research funding.
       The Senate amendment provides that the purpose of the pilot 
     program is to determine what incentives are necessary for 
     approved insurance providers to develop and offer risk 
     management products, rate premiums, and competitively market 
     such products.
       Requires FCIC to establish a pilot program under which 
     approved insurance providers may propose to the FCIC Board 
     loss of yield or revenue insurance coverage for 1 or more 
     commodities, including commodities not insurable (but 
     excluding livestock), rates of premium, and underwriting 
     systems.
       Requires FCIC to approve the risk management product before 
     it can be marketed.
       Provides that the FCIC Board may approve a risk management 
     product submitted if the Board determines that the interests 
     of producers are protected; premium rates are actuarially 
     appropriate and underwriting systems are actuarially 
     appropriate and adequate; the product is reinsured under the 
     FCIA, through private reinsurance, or self- insured; the size 
     of the pilot is adequate; the product is not generally 
     available through private insurance plans; and any other 
     requirements imposed by FCIC.
       Requires that all information concerning a risk management 
     product be considered confidential commercial or financial 
     information, and provides the standard that if the Secretary 
     could withhold such information, the information may not be 
     released.
       Defines original provider as an approved insurance provider 
     that submits a product for approval under this section. 
     Provides that risk management products approved under this 
     section may only be sold by the original provider, unless 
     another approved insurance provider desiring to offer the 
     product pays a fee established by the original provider. 
     (Sections 201 and 205)
       The Conference substitute adopts the Senate provisions 
     relative to the scope of pilot programs and to a pilot 
     program for insurance coverage on wild salmon. Pilot 
     authority for insurance coverage for timber due to drought, 
     flood, fire or other natural disaster and for trees or fruit 
     affected by plum pox (including quarantined trees or fruit) 
     are omitted because statutory authority currently exists to 
     insure the crops against these perils. The House bill 
     language relative to expedited consideration of low risk 
     pilot programs is omitted. The Conference substitute adopts 
     the House bill's provision relative to livestock pilot 
     programs, except that pilot authority to offer insurance 
     coverage for environmental liability is omitted and the 
     definition of livestock is modified to include but not be 
     limited to the livestock referenced in the House bill. 
     Funding for all livestock programs is also limited to new 
     levels. The provision authorizes a premium-rate reduction 
     pilot program. Finally, House bill language clarifying 
     regulatory jurisdiction over policies or plans of insurance 
     is included but in a separate section of the Act. (Section 
     132)
       The Managers intend for the Corporation to proceed with 
     crop insurance coverage for sorghum silage beginning with the 
     2001 crop year by implementing the pilot program that was 
     drafted and presented to grain sorghum producers in October 
     of 1999. The Corporation shall develop the program in a way 
     that provides sorghum silage the same coverage as corn silage 
     with the program to be fully developed by September 30, 2000.
       The Managers are aware of proposals to implement a pilot 
     insurance policy to provide coverage on timber losses 
     resulting from drought, flood, fire, or other natural 
     disaster. The Managers expect the Corporation to implement 
     this pilot under current authority, with special 
     consideration given to Florida.
       The Managers are aware of the serious concerns the plum pox 
     virus is causing in several states, including Pennsylvania. 
     The Managers believe the Corporation has the same authority 
     to develop a policy to provide coverage for plum pox as has 
     been developed for citrus canker. The Managers expect the 
     Corporation to develop an insurance policy that provides 
     coverage for trees against losses associated with plum pox 
     virus.
       The Managers intend that the premium rate reduction pilot 
     program authorized by this provision explore whether premium 
     rate competition can benefit producers without harming 
     program integrity or the crop insurance delivery system. The 
     Managers hope and expect that the Corporation will approve 
     proposed premium reductions, as long as such proposed 
     reductions meet the standards of approval contained in 
     Section 132(d) of the Conference substitute.
       The Managers are aware that Section 508(e)(3) of the 
     Federal Crop Insurance Act already authorizes premium 
     reductions if an approved insurance provider can demonstrate 
     to the Corporation that it can provide crop insurance more 
     efficiently than the

[[Page 9204]]

     expense reimbursement provided by the Corporation. The 
     508(e)(3) standard, however, is too limiting because an 
     approved insurance provider's gross income includes 
     underwriting gain as well as the expense reimbursement. As a 
     result, the Managers intend that the limitations on premium 
     reductions contained in Section 508(e)(3) of the Federal Crop 
     Insurance Act not apply to the premium rate reduction pilot 
     program authorized by this provision.
     Education and risk management assistance
       The Senate amendment requires FCIC to establish two 
     programs for the fiscal years 2001 through 2004, not to 
     exceed the available funding limitations.
       Requires FCIC to establish a program of education and 
     information for states in which there is traditionally and 
     continues to be a low level of program participation and 
     coverage availability, and which the Secretary determines is 
     under-served.
       Requires FCIC to establish a program of research and 
     development to develop new approaches to increasing 
     participation in states in which there is traditionally and 
     continues to be a low level of program participation and 
     coverage availability, and which the Secretary determines is 
     under-served. Requires that $10 million in each of fiscal 
     years 2001 through 2004 be made available for the Education, 
     Information, and Insurance Provider Recruitment program from 
     the account provided under section 516(a)(2)(C) (mandatory 
     funding account for risk management payments).
       Requires that $5 million in each of fiscal years 2001 
     through 2004 be made available for the Research and 
     Development program from the account provided under section 
     516(a)(2)(C) (mandatory funding account for risk management 
     payments). (Section 206)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to education and research with certain changes. The 
     provision authorizing the Corporation to establish a program 
     of research and development for new approaches to increase 
     program participation in specified states is omitted and 
     partnerships for risk management education is authorized. The 
     Secretary, acting through the CSREES, is required to 
     establish a program under which competitive grants are made 
     to qualified persons for the purpose of educating producers 
     about risk management activities. Funding for the education 
     and information program provided under the Senate amendment 
     and the partnerships for risk management education program 
     are each limited to $5 million for each fiscal year beginning 
     with 2001. The provision also provides for an agricultural 
     management assistance program under which the Secretary is to 
     offer cost share assistance to producers located in states 
     with historically low crop insurance participation for the 
     uses as specified in the Act. Funding for this program is 
     limited to $10 million for each fiscal year beginning with 
     2001. (Section 133)
       Farmers have voiced support for marketing clubs, supported 
     through small grants from USDA. The clubs provide an 
     opportunity for farmers to improve their understanding of 
     marketing and managing price risk by sharing their marketing 
     experiences with their peers. The Managers encourage the 
     Secretary to continue to support development of marketing 
     clubs for farmers.
     Options pilot program
       The Senate amendment amends section 191 of the AMTA 
     relative to options pilot program authority by extending such 
     authority until December 31, 2004.
       Expands authority to operate options pilot programs from 
     not more than 100 counties with a limit of 6 counties per 
     state, to not more than 300 counties with a limit of 25 
     counties per state.
       Authorizes the Secretary to enter into a contract with any 
     producer who volunteers to participate in the pilot program 
     during any calendar year in which a county in which the farm 
     of the producer is located is authorized to operate the pilot 
     program.
       Requires FCIC transfer $27 million for each of fiscal years 
     2002 through 2004 from section 516(a)(2)(C) (mandatory funds 
     for risk management payments) to the Secretary to fund the 
     operation of the expanded options pilot program. (Section 
     204)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to the options pilot program with certain changes. 
     Authority to conduct the options pilot program is expanded to 
     include an increased number of counties with such authority 
     continuing until the expiration of the 1996 Farm Bill. 
     Finally, funding is limited under this section. (Section 134)

                       Subtitle D--Administration

     Relation to other laws
       The House bill provides that any policy or plan of 
     insurance offered under the FCIA is not subject to the 
     jurisdiction of the CFTC or SEC. Provides a savings clause 
     that states that the provision does not affect the 
     jurisdiction of the CFTC with respect to transactions 
     conducted on a contract market.
       The Senate amendment provides that any policy or plan of 
     insurance offered under the FCIA is not subject to the 
     jurisdiction of the CFTC, but does not affect the 
     jurisdiction of the CFTC with respect to transactions 
     conducted on a contract market.
       The Conference substitute adopts the provision included in 
     section 105 of the House Bill relative to jurisdiction over 
     policies or plans of insurance and over any underlying 
     instrument utilized in such a policy or plan of insurance. 
     (Section 141)
     Management of corporation
       The House bill strikes section 505(a) relative to the Board 
     of Directors of FCIC and inserts a new section 505(a) and 
     (b), relative to the same.
       Provides that the management of FCIC is to be vested in the 
     Board of Directors, subject to the supervision of the 
     Secretary.
       Provides that the Board consist of the manager of FCIC 
     (serving as a non voting ex officio member), 1 member active 
     in the crop insurance business, 1 member active in the 
     regulation of insurance, the Under Secretary for Farm and 
     Foreign Agricultural Services, 1 additional Under Secretary 
     for Agriculture, USDA's Chief Economist, and 4 active 
     producers who are policy holders, are from different 
     geographic regions, represent a cross-section of commodities 
     grown, with 1 producer being a specialty crop producer.
       Provides that the private sector members of the Board be 
     appointed and serve at the pleasure of the Secretary, and not 
     otherwise be employed by the government.
       Requires that a private-sector member of the Board serve as 
     its Chairman and be elected by the Board.
       Provides that the amendment made by section 301 takes 
     effect 30 days from enactment, allowing current Board members 
     to continue to serve until the earlier of their replacement 
     date or 180 days after enactment. (Section 301)
       The Senate amendment strikes section 505(a) relative to the 
     Board of Directors of FCIC and inserts a new section 505(a).
       Provides that the management of FCIC is to be vested in the 
     Board of Directors, subject to the supervision of the 
     Secretary.
       Provides that the Board consist of 4 producers from each 
     region of the country, 1 member active in the crop insurance 
     business, 1 member active in the reinsurance business, the 
     Under Secretary for Farm and Foreign Agricultural Services, 
     the Under Secretary for Rural Development, and USDA's Chief 
     Economist.
       Provides that the private sector members of the Board be 
     appointed and serve at the pleasure of the Secretary, not be 
     employed by the government, be appointed to staggered 4 year 
     terms, and serve no more than 2 consecutive terms.
       Requires that a private sector member of the Board serve as 
     its Chairman and be elected by the Board.
       Requires RMA to assist the Board in developing, reviewing, 
     and recommending new plans of insurance and pilot projects, 
     terms of the SRA, and with other issues involved in the 
     administration of the program.
       Provides for the appointment of an Executive Director by 
     the Secretary to assist the Board and report to the 
     Secretary.
       Provides for a staff of 4 to report to the Executive 
     Director, all 4 having knowledge and experience in 
     quantitative mathematics and actuarial rating.
       Requires the Executive Director and staff to assist the 
     Board in reviewing and approving policies and plans of 
     insurance submitted under sections 508, 522, or 523, and 
     report at least monthly to the Board on crop insurance 
     issues.
       Requires the Executive Director and staff to review 
     subsidized and unsubsidized insurance, make recommendations 
     for approval or disapproval, make recommendations to 
     encourage cooperation between the U.S. attorneys, FCIC, and 
     approved insurance providers to minimize fraud, and make 
     recommendations with respect to rating methodologies.
       Provides $500,000 for fiscal year 2001 from the FCIA Fund 
     to pay the salaries and expenses of the Executive Director 
     and staff.
       Requires that RMA transfer $500,000 for fiscal year 2001, 
     and $1 million for each subsequent fiscal year to the 
     Executive Director for salaries and expenses, subject to the 
     availability of appropriations. (Section 301)
       The Conference substitute adopts the House provision 
     relative to the composition of the Corporation Board of 
     Directors with changes to permit the Secretary the option of 
     appointing 1 person experienced in reinsurance or 1 person 
     experienced in the regulation of insurance, requiring that 
     Board members be limited to two consecutive terms and be 
     appointed for staggered 4-year terms. The new Board is to be 
     appointed during the period beginning February 1, 2001 and 
     ending April 1, 2001. Finally, the Board of Directors is 
     required to contract with persons experienced as actuaries 
     and in underwriting for expert reviews of policies and plans 
     of insurance offered under the Federal Crop Insurance Act. 
     Funding for such reviews is authorized from mandatory funds 
     formerly dedicated to research and development. The authority 
     provided under this section, including funding dedicated to 
     carry out this section, is in addition to the general 
     management authority over the Corporation, including any 
     other contracting authority under the title, that is vested 
     in the Board of Directors. (Section 142)

[[Page 9205]]


     Contracting for rating of plans of insurance
       The House bill amends section 507(c)(2) relative to 
     requiring FCIC to contract for certain services by including 
     the contracting for actuarial services, services relating to 
     loss adjustment, and rating plans of insurance. Underscores 
     that FCIC should concentrate on the regulation of insurance 
     and on the evaluation process for newly developed policies 
     under section 508(h). (Section 306)
       Section 202 of the Senate amendment corresponds with 
     sections 306 and 104 of House bill
       The Conference substitute adopts the House provision 
     relative to contracting for rating plans of insurance. 
     (Section 143)
     Electronic availability of crop insurance information
       The House bill amends section 508(a)(5) by making technical 
     amendments and adding a new subparagraph (B) relative to 
     electronic availability of crop insurance information.
       Requires FCIC to make general insurance information 
     electronically available to producers and insurance 
     providers, and also requires, where practicable, that FCIC 
     allow producers and providers to provide insurance 
     information electronically. (Section 307)
       The Senate amendment has no comparable provision.
       The Conference substitute adopts the House provision 
     relative to the electronic availability of crop insurance 
     information. (Section 144)
     Adequate Coverage for States
       The Senate amendment amends section 508(a) adding paragraph 
     (9) relative to adequate coverage for states.
       Defines adequately served as having a participation rate 
     that is at least 50 percent of the national average.
       Requires FCIC to review policies offered by approved 
     insurance providers to determine if each state is adequately 
     served.
       Requires that not later than 30 days after completion of 
     the review, FCIC must submit to Congress a report of the 
     results along with recommendations to increase participation 
     in states not adequately served. (Section 305)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to adequate coverage for states. (Section 145)
     Submission of Policies and Materials to Board
       The House bill amends section 508(h)(1) to clarify that a 
     ``person'' that may propose a policy to the Board for 
     approval includes an approved insurance provider, a college 
     or university, a cooperative or trade association, or other 
     persons. Clarifies that policies are to be sold to producers 
     by approved insurance providers.
       Requires FCIC to consider any modified policy proposal 
     within 30 days from the submission of the modifications, and 
     requires that any decision to disapprove a policy must be 
     accompanied by a complete explanation.
       Requires that FCIC make a determination to approve or 
     disapprove a policy proposal within 120 days from submission, 
     and any decision to disapprove a policy must be accompanied 
     by a complete explanation. Provides that the proposed policy 
     is approved for the initial reinsurance year where FCIC fails 
     to provide a timely determination unless the parties agree to 
     an extension.
       Amends section 516(b)(2) to authorize the current $3.5 
     million in mandatory funds for research and development to be 
     used for costs associated with considering and contracting 
     for assistance in considering policies submitted for approval 
     and carrying out policies resulting from direct contracting,
       The House bill also requires FCIC to issue regulations 
     establishing guidelines within 180 days of enactment to 
     govern the submission of policies. (Sections 305 and 105)
       The Senate amendment amends section 508(h) by striking 
     paragraphs (1) through (4) relative to the submission, review 
     and approval, and guidelines for the same of new policies, 
     plans of insurance, or related materials, and inserts new 
     paragraphs (1) through (4) related to the same.
       Permits persons to propose to the Board loss of yield or 
     revenue insurance coverage on an individual, area, or a 
     combination of individual and area basis for 1 or more crops 
     and rates of premium and underwriting systems for proposed or 
     existing policies.
       Provides that a proposal submitted under this subsection 
     may be prepared without regard to FCIA limitations, including 
     actuarial soundness, levels of coverage, rates of premium, 
     that the price level equal the expected market price and that 
     an approved insurance provider must provide coverage for all 
     crops throughout the state where the provider elects to 
     provide any coverage in the state.
       Provides, however, that FCIC may not pay a portion of the 
     premium for a policy submitted under this subsection that 
     exceeds the amount otherwise authorized under subsection (e).
       Requires the Board to approve a proposal submitted under 
     this subsection for subsidy and reinsurance where the Board 
     determines the proposal adequately ensures the interests of 
     producers are protected, premiums are actuarially 
     appropriate, underwriting systems are actuarially appropriate 
     and adequate, and is reinsured under this title, privately 
     reinsured, or self-insured.
       Provides that rates of premium are actuarially appropriate 
     where the rate is sufficient to cover projected losses and 
     expenses, a reasonable reserve, and an amount of operating 
     and administrative expenses of the approved insurance 
     provider under subsection (d)(2).
       Provides that proposed underwriting plans may be on an area 
     or individual farm basis and must, at a minimum, specify 
     factors such as yield history for the farm or region, soils 
     and resource quality for the farm, and farm production 
     practices.
       Requires FCIC to provide reinsurance to approved insurance 
     providers to the maximum extent practicable, and allows such 
     providers to obtain private reinsurance, reinsurance under 
     the FCIA, or to self-insure.
       Requires FCIC to prescribe standards for determining 
     whether premium rates are actuarially appropriate.
       Establishes guidelines with respect to any policy or other 
     material submitted to the Board after October 1, 2000.
       Allows FCIC to enter into more than 1 reinsurance agreement 
     simultaneously with an approved insurance provider to 
     facilitate the offering of the new policy.
       Requires FCIC to promulgate regulations establishing the 
     procedure for the submission of policies under this 
     subsection, including the standards applicable to a proposal, 
     procedures concerning the time limits and for opportunity to 
     present the proposal to the Board in person.
       Provides that a proposal submitted to the Board is 
     considered approved unless the Board disapproves the proposal 
     by the date 60 business days after the later of submission of 
     the proposal or the date on which the applicant provides the 
     Board notice of intent to modify.
       Requires FCIC to provide notice by registered mail of 
     intent to disapprove a proposal not later than 15 days before 
     the date the Board intends to disapprove such proposal.
       Provides an applicant with the right to modify a proposal 
     and provides that any modified proposal be considered the 
     original. Requires an applicant to provide notice to the 
     Board of intent to modify a proposal within 5 days of notice 
     by the Board to disapprove such proposal.
       Requires FCIC to prescribe a reasonable deadline for 
     submission of proposals that approved insurance providers 
     expect to market during the reinsurance year.
       Requires that proposals submitted to the Board be 
     considered confidential commercial information, and further 
     requires that if information concerning a proposal could be 
     considered confidential, the information may not be released.
       Provides an exception to the standard of confidentiality 
     where an approved insurance provider agrees to pay a fee 
     (prescribed under section 307 of the Senate amendment) to 
     offer a policy developed by another provider.
       Provides that in lieu of publication in the Federal 
     Register, a general summary of a proposal must be made 
     available to other providers upon approval of the proposal by 
     the Board, including the identity of the provider, the 
     coverage provided, and the area to be served.
       Strikes paragraphs (6), (8), and (10) of section 508(h), 
     related to a pilot cost of production plan, a pilot program 
     of assigned yields for new producers, and time limits for 
     submission of proposals, and designates paragraphs (7) and 
     (9) as (6) and (7), respectively.
       Amends section 516(b)(1) by adding a paragraph (D) 
     authorizing FCIC to pay salaries and expenses of the 
     Executive Director and staff for fiscal year 2001 from the 
     FCIA fund, but not to exceed $500,000. (Section 301)
       The Conference substitute adopts the House provision 
     relative to the submission of policies and materials to the 
     Board with changes regarding confidentiality requirements 
     governing policies. The requirement that policies be printed 
     in the Federal Register is also stricken from the Federal 
     Crop Insurance Act. Funding provided under the House 
     provision is incorporated into the Act but under another 
     section of the Title. (Section 146)
     Funding
       The House bill amends section 516(a)(2) authorizing 
     mandatory funds to be used for costs associated with the 
     conduct of livestock pilot programs subject to the 
     limitations above.
       Amends section 516(b)(1) authorizing FCIC to fund livestock 
     pilot programs from the FCIA Fund.
       Amends section 516(a)(2) authorizing mandatory funds to be 
     used for cost associated with reimbursement and contracting 
     for research and development.
       Amends section 516(b)(1) authorizing FCIC to fund 
     reimbursement and contracting from the FCIA fund.
       Amends section 516(b)(2) authorizing mandatory funds for 
     costs associated with considering policies and other 
     materials and implementing such policies. (Section 105, 304 
     and 305)
       The Senate amendment amends section 516(a)(1) of the FCIA 
     by striking paragraph (1) and inserting a new paragraph (1) 
     providing that, along with premium income and

[[Page 9206]]

     amounts under section 516(a)(2), sanctions fees are to be 
     deposited in this fund.
       Amends 516(b)(2)(a) increasing the authorization of 
     mandatory funds to be used for research and development. 
     (Sections 207 and 303)
       The Conference substitute adopts a funding section that 
     incorporates funding authorized under various sections of the 
     House bill and the Senate amendment, including funding to 
     cover costs associated with the consideration and 
     implementation of policies. (Section 147)
     Standard Reinsurance Agreement
       The House bill authorizes FCIC to renegotiate the SRA 
     effective for the 2002 reinsurance year. (Section 310(b))
       The Senate amendment has no comparable provision.
       The Conference substitute adopts the House provision 
     relative to the Standard Reinsurance Agreement with changes 
     to allow 1 re-negotiation during the 2001 through 2005 
     reinsurance years. (Section 148)

                       Subtitle E--Miscellaneous

     Limitation on Revenue Coverage for Potatoes
       The Senate amendment restates the exclusions in current law 
     in subparagraph (A) and adds another exclusion for coverage 
     under new subparagraph (B) prohibiting the coverage of losses 
     due to a decline in revenue from potato production, except as 
     provided under a whole farm plan of insurance.
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to limitations on revenue coverage for potatoes. 
     (Section 161)
     Crop Insurance Coverage for Cotton and Rice
       The Senate amendment requires that, beginning with the 2001 
     rice crop, FCIC offer plans of insurance, including prevented 
     planting and replanting coverage, to cover the loss of rice 
     due to the failure of irrigation water supplies from drought 
     and saltwater intrusion. (Section 107)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to crop insurance coverage for rice with a change to 
     include extra long staple cotton and upland cotton. (Section 
     162)
     Indemnity Payments for Certain Producers
       The Senate amendment requires that notwithstanding section 
     508(c )(5) relative to price elections, a producer of durum 
     wheat that purchased a 1999 CRC wheat policy by the sales 
     closing date shall receive an indemnity payment in accordance 
     with the policy. Requires that the base and harvest price 
     under the policy be in accord with the Commodity Exchange 
     Endorsement for wheat published by FCIC on July 14, 1998, and 
     that FCIC provide reinsurance under the SRA for the policy. 
     Voids the Bulletin MGR- 99-004 issued by the Administrator. 
     This provision is effective on October 1, 2000. (Section 501)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to providing indemnity payments to certain producers 
     with technical changes. (Section 163)
     Sense of Congress on regarding the Federal Crop Insurance 
         Program
       The Senate amendment expresses the sense of the Senate 
     regarding the federal crop insurance program and the role of 
     farmer-owned cooperatives. Expresses the sense of the Senate 
     that, not later than 180 days after the date of enactment, 
     the Federal Crop Insurance Corporation should complete 
     promulgation of the proposed rule entitled ``General 
     Administrative Regulations; Premium Reductions; Payment of 
     Rebates, Dividends, and Patronage Refunds; and Payments to 
     Insured-Owned and Record-Controlling Entities.''
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to the Sense of Congress regarding the Federal Crop 
     Insurance Program. (Section 164)
     Sense of Congress on rural America, including minority and 
         limited-resources farmers
       The Senate amendment provides findings relative to a rally 
     for rural America held in Washington on March 20-21, 2000, 
     the purpose of the rally, and a sense of Congress with 
     respect to the rally, its participants, and its purpose. 
     (Section 403)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     relative to the Sense of Congress on Rally for Rural America 
     and Rural Crisis with changes. The Conference substitute also 
     adopts the House provision relative to minority and limited 
     resource farmers and ranchers with changes. (Section 165)

             Subtitle F--Effective Dates and Implementation

     Effective dates
       The House bill provides that with the exception of sections 
     301(b) and 305(d), the amendments made by House bill take 
     effect upon enactment.
       Provides that the implementation depends on the terms of 
     the particular amendment or, in the absence of an express 
     implementation date, in accordance with section 402. (Section 
     401)
       The Senate amendment provides that with the exception of 
     certain provisions, the Senate amendment is effective upon 
     enactment. (Section 501)
       The House bill requires implementation of sections 104, 
     106, 107, 202, 203, 204, 205, 206, and 309 for the 2000 crop 
     year.
       Requires implementation of sections 105(a); 305(a), (b), 
     and (c); 306; and 307 for the 2000 fiscal year.
       Requires implementation of sections 101, 102, 103(b), 109, 
     110, 111, and 201 for the 2001 crop year. Requires 
     implementation of sections 105(b) and 304 for the fiscal year 
     2001. (Section 402)
       The Senate amendment prohibits FCIC from obligating funds 
     to carry out sections 102, 103, 105, 106, 201 through 207, 
     309, and 310 until October 1, 2000.
       The Conference substitute provides that this Act take 
     effect on the date of enactment with certain exceptions. 
     Subtitle C, section 146 and 163 take effect on October 1, 
     2000. Subsections (a), (b), and (c) of section 101, section 
     102(a), subsections (a), (b), and (c) of section 103, section 
     104, section 105(b), section 108, section 109, and section 
     162 take effect beginning with the 2001 crop year. Section 
     101(d), section 102(b), and section 103(d) take effect 
     beginning with the 2001 reinsurance year. (Section 171)
     Regulations
       The Senate amendment requires FCIC to promulgate 
     regulations not later than 60 days after the date of 
     enactment.
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
     requiring the Corporation to promulgate regulations to carry 
     out this Act with a change from requiring regulations within 
     60 days after enactment to 120 days after enactment. (Section 
     172)
     Savings clause
       The House bill provides a savings clause with respect to 
     current law, to the extent that application of an amendment 
     is delayed. (Section 403)
       The Senate amendment has no comparable provision.
       The Conference substitute adopts the House provision 
     relative to the savings clause. (Section 173)
     Compliance with state licensing requirements
       The House bill amends section 508 by adding a new 
     subsection (o) relative to compliance with state licensing 
     requirements.
       Requires that any person who sells or solicits the purchase 
     of a policy in a state must be licensed and qualified to do 
     business in that state. (Section 206)
       The Senate amendment amends section 508 of the FCIA adding 
     at the end a new paragraph (n), relative to compliance with 
     state licensing requirements.
       Requires any person that sells or solicits the purchase of 
     a policy or adjusts losses under the FCIA in any state must 
     be licensed and qualified to do business in that state, and 
     must comply with all state regulations (including commission 
     and anti-rebating regulations) as required under state law. 
     (Section 313)
       The Conference substitute deletes both the House and Senate 
     provisions because such licensing requirements are dealt with 
     under a separate section.
     Choice of risk management options
       The Senate amendment defines an agricultural commodity as a 
     crop specified in section 518 of the FCIA for which ``CAT'' 
     or ``buy-up'' coverage is available.
       The section further defines an agricultural commodity as a 
     crop that is selected by the Secretary to maximize the number 
     of participating producers, provides for a mixture of 
     program, specialty, and regional crops, gives consideration 
     to crops with low crop insurance participation, and results 
     in not less than 15 percent of payments going to states with 
     traditionally low program participation that the Secretary 
     determines are under-served.
       Defines applicable crop to mean the 2002 through 2004 
     crops, and applicable year to mean the year in which the crop 
     is produced on the farm and the producer elects to receive a 
     risk management payment or crop insurance premium subsidy. 
     Also defines a regulated exchange as a board of trade 
     designated as a contract market.
       Requires FCIC to offer either to make risk management 
     payments or to provide crop insurance premium subsidies for 
     each of the 2002 through 2004 crops.
       Requires each producer to make an election between the two 
     options before the sales closing date for the applicable 
     crop.
       Requires FCIC to make a risk management payment for an 
     applicable crop to a producer electing to receive such a 
     payment providing the producer engages in at least 1 
     prescribed risk management practice from at least 2 of 5 
     categories. The categoriesinclude, (1) the Crop Insurance 
     Category (buying unsubsidized or private coverage), (2) the 
     Marketing Risk Category, (3) the Financial Risk Category, (4) 
     the Farm Resources Risk Category, or (5) the Other Category 
     (as prescribed by the Secretary).
       Requires the Secretary to determine the amount of any risk 
     management payment taking into consideration the expenditure 
     by the producer on the risk management activities in which 
     the producer engaged.
       Provides that no risk management payment may be made in an 
     amount greater

[[Page 9207]]

     than equal to the national average of the previous year's 
     liability for all ``CAT'' policies.
       Authorizes $500 million for fiscal years 2002 through 2004 
     from the account established in section 516(a)(2)(C) of the 
     FCIA, except that payments in any one fiscal year may not 
     exceed $200 million. (Sections 204 and 206 of the Senate 
     amendment reduce this amount to fund options pilot programs 
     and education and research.)
       Requires producers receiving a risk management payment to 
     certify compliance with qualifying risk management practices 
     and associated costs for the applicable year.
       Authorizes FCIC to conduct random compliance audits.
       Requires the producer to refund a risk management payment 
     where the producer fails to certify compliance or fails to 
     comply with qualifying risk management practices and subjects 
     the producer to possible debarment for up to 5 years from 
     farm programs cited in section 506(n)(3)(B) of the FCIA.
       Provides that any assignment of benefits be carried out 
     consistent with section 8(g) of the Soil Conservation and 
     Domestic Allotment Act, and requires the producer give notice 
     of such assignment where FCIC requires.
       Requires FCIC to provide for the fair and equitable sharing 
     of benefits among all producers at risk in the production of 
     a crop.
       Amends section 516(a) by striking paragraph (1) relative to 
     discretionary expenses and inserts a new paragraph (1) 
     relating to the same, providing that there authorized to be 
     appropriated for fiscal year 1999 and each subsequent fiscal 
     year such sums as are necessary to cover the salaries and 
     expenses of the FCIC, and the expenses of approved insurance 
     providers in carrying out section 522(c).
       Amends section 516(a) relative to mandatory expenses by 
     adding at the end authorization for risk management payments 
     in an amount not to exceed $500 million for fiscal years 2001 
     through 2004, with not more than $200 million for any 1 
     fiscal year. (Section 203)
       The House bill has no comparable provision.
       The Conference substitute deletes the Senate provision.
     Fees for use of new policies and plans of insurance
       The House bill amends section 508(h) by adding a new 
     paragraph (11) relative to fees for new policies and plans of 
     insurance.
       Provides that beginning with fiscal year 2001, a person 
     that develops a policy that does not apply for reimbursement 
     has the right to receive a fee from another approved 
     insurance provider electing to sell that policy.
       Provides that the second provider may not sell such policy 
     without first reaching a fee agreement with the developer.
       Provides that ``new policy'' under the paragraph means a 
     policy that was approved by the Board on or after October 1, 
     2000 and was not available at the time of approval. Provides 
     that the fee be determined by the developer subject to the 
     approval of the Board, except the Board shall approve the fee 
     unless it is unreasonable in relation to research and 
     development costs or it unnecessarily inhibits the use of the 
     policy. (Section 308)
       The Senate amendment amends section 508(h) of the FCIA by 
     striking paragraph (5) relative to required publication of 
     submissions in the Federal Register and inserts a new 
     paragraph (5) relative to fees for plans of insurance.
       Provides that, beginning with the 2001 reinsurance year, an 
     approved insurance provider electing to offer a policy that 
     was developed by another provider and was approved before 
     January 1, 2000 must pay the developer $2 per policy for each 
     of the first 5 crop years, $1 per policy for each of the next 
     3 crop years, and 50 cents for each policy in each succeeding 
     crop year.
       Provides that, beginning with the 2001 reinsurance year, an 
     approved insurance provider electing to offer a policy that 
     was developed by another provider and was approved by the 
     Board on or after January 1, 2000 must pay the developer an 
     amount determined by the developer, such fee subject to the 
     approval of the Board. FCIC may not approve fees that would 
     unnecessarily inhibit the use of a policy.
       Requires FCIC to collect and credit fees to approved 
     insurance providers.
       Provides an exception to the general rule relative to fees 
     where an approved insurance provider electing to offer a 
     policy in a state where the developer of the policy does not 
     do business may pay a fee to offer the policy and that fee 
     may not be refused.
       Amends section 516(b)(1) by adding a new paragraph allowing 
     FCIC to pay fees collected from the insurance fund, and 
     amends section 516(c)(1)(A) to provide for the deposit of 
     such fees collected into the fund. (Section 307)
       The Conference substitute deletes both the House and Senate 
     provisions.
     Federal Crop Insurance Improvement Commission
       The Senate amendment provides in lieu of the current 
     section 515 of the FCIA a new section 515 relative to the 
     establishment of a Federal Crop Insurance Improvement 
     Commission.
       Defines commission as the Federal Crop Insurance 
     Improvement Commission and establishes the same.
       Provides that the commission have 15 members, including the 
     Under Secretary for Farm and Foreign Agricultural Services, 
     the FCIC manager, the USDA Chief Economist, an employee of 
     OMB appointed by the OMB Director, a representative of the 
     National Association of Insurance Commissioners, 4 approved 
     insurance providers appointed by the Secretary, 2 
     agricultural economists from academia appointed by the 
     Secretary, and 4 representatives of major farm organizations 
     or farmer-owned cooperatives.
       Provides that members be appointed not later than 60 days 
     from enactment and serve for the life of the commission.
       Provides that the commission review and make 
     recommendations relative to the amount of risk approved 
     insurance providers should bear, whether current reinsurance 
     practices should be continued, the extent to which 
     development of new policies should be undertaken by private 
     entities, how to focus research and development to include 
     new types of products and products for specialty crops, the 
     progress in reducing administrative and operating expenses, 
     etc.
       Requires the Under Secretary serving on the commission to 
     serve as chairman and vote in the event of a tie.
       Requires the commission to meet at least 6 times per year 
     and make public records of the commission available at the 
     Office of the RMA. Requires that not later than 2 years after 
     enactment the commission submit a report to the House and 
     Senate Agriculture Committees, with copies to the Secretary 
     and the FCIC Board. Also, authorizes the commission to make 1 
     or more interim reports.
       Provides that authority for the commission terminates at 
     the earlier of 60 days after the final report is issued or on 
     September 30, 2004.
       Authorizes to be appropriated such sums as may be 
     necessary. (Section 310)
       The House bill has no comparable provision.
       The Conference substitute deletes the Senate provision.
     Highly erodible land and wetland conservation
       The Senate amendment amends sections 1211(3) and 1221(b)(3) 
     of the Food Security Act of 1985 to make producers who fail 
     to comply with highly erodible land and wetland conservation 
     requirements, respectively, ineligible for crop insurance 
     benefits. (Section 311)
       The House bill has no comparable provision.
       The Conference substitute deletes the Senate provision.
     Projected loss ratio
       The Senate amendment strikes paragraph (2) of section 
     506(o) of the FCIA relative to loss ratio requirements and 
     inserts a new paragraph related to the same.
       Requires FCIC to take such actions as are necessary, 
     including the establishment of adequate premiums, to improve 
     the actuarial soundness of the crop insurance program to 
     achieve a 1.075 loss ratio from October 1, 1998 through the 
     2001 crop year, and a 1.00 loss ratio beginning with the 2002 
     crop year. (Section 312)
       The House bill has no comparable provision.
       The Conference substitute deletes the Senate provision.
     Improved risk management education
       The Senate amendment amends Title IV of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 by 
     adding at the end section 409 relative to improved risk 
     management education for agricultural producers and provides 
     definitions.
       Requires the Secretary to carry out a program to improve 
     the risk management skills of agricultural producers, to help 
     producers understand the financial health of their 
     operations, marketing alternatives available, and relevant 
     legal, governmental, environmental, and human resource issue.
       Requires the Secretary to establish Risk Management 
     Education Coordinating Centers in each of the 5 regions in 
     the country.
       Requires the Secretary to locate a region's center at risk 
     management coordinating office of the Cooperatve State 
     Research, Education, and Extension Service in existence at a 
     land grant college or an appropriate alternative land grant 
     college in the region. Requires the land grant college to 
     demonstrate the capacity to carry out program priorities, 
     funding distribution, and reporting requirements.
       Requires each center to establish a coordinating council 
     consisting of 5 members, including public and private 
     organizations, producers, and a representative of the 
     regional RMA office.
       Requires centers to coordinate the offering of intensive 
     risk management instructional activities for professionals 
     who work with producers, the provision of educational 
     programs for producers, and the dissemination of risk 
     management education materials.
       Requires centers to make use of emerging risk management 
     information and materials, after an evaluation of suitability 
     is conducted with the assistance of land grant college 
     personnel and others.
       Requires each center to reserve a portion of funds provided 
     under the section to make special grants to land grant 
     colleges and private entities in the region to conduct such

[[Page 9208]]

     activities, and requires the reservation of funds to award 
     competitive grants to public and private entities for such 
     purposes.
       Requires that the National Agriculture Risk Education 
     Library serve as the central agency for coordination and 
     distribution of education material and provide for the 
     electronic delivery of the same.
       Authorizes to be appropriated $30 million for fiscal year 
     2001 and each subsequent fiscal year, requiring 2.5 percent 
     of funds available be distributed to the Library with the 
     residual funding reserved for the centers.
       Requires the land grant colleges hosting a regional center 
     to administer the funds for the region. Requires that each 
     center be located in an existing facility and prohibits the 
     use of funds for new construction.
       Requires the Secretary, acting through the CSREES, to 
     evaluate each center. (Section 401)
       The House bill has no comparable provision.
       The Conference substitute deletes the Senate provision.
     Termination of authority
       The Senate amendment provides that the termination of 
     certain authority is effective on September 30, 2004.
       Repeals Senate amendment provided in sections 102, 103, 
     105, 106, 203(b), and 310 on September 30, 2004, and provides 
     that the FCIA and NAP shall after this date be administered 
     as if these provisions had not been enacted.
       Provides further conforming amendments to repeal any 
     funding authority provided under the Senate Amendments and 
     prohibits the Secretary or FCIC from carrying out the 
     provisions after September 30, 2004.
       The House bill has no comparable provision.
       The Conference substitute deletes the Senate provision.

                   TITLE II--AGRICULTURAL ASSISTANCE

       The Conference substitute includes a new title (Title II) 
     providing agricultural assistance to producers of the 2000 
     crops and other assistance:

                   Subtitle A--Market Loss Assistance

     Sec. 201. Market loss assistance
       To ensure timely delivery of market loss payments to 
     eligible producers and owners, the Managers expect the 
     Secretary to make the payments available under the same terms 
     and conditions as the 2000 AMTA contract payments. Market 
     loss payments made under authority of this legislation shall 
     not be treated as a contract (AMTA) payment for purposes of 
     section 115 of Title I of the Federal Agriculture Improvement 
     and Reform Act of 1996, or section 1001, paragraphs (1) 
     through (4) of the Food Security Act of 1985. Further, it 
     should not be necessary to require eligible owners and 
     operators to file new contracts or redesignate shares in 
     order to receive market loss payments.
     Sec. 202. Oilseeds
       The Managers expect the Secretary to deliver oilseed 
     economic assistance payments to producers in the same manner 
     used to deliver the 1999 oilseed payments authorized under 
     Title VIII, section 803 of P.L. 106-354. The Managers note 
     that the Department has taken over seven months to make 
     payments to eligible producers. Such delays in delivering 
     crop year 2000 payments are unacceptable.
       The Managers expect that sesame seed will be eligible for 
     assistance under this section. The Managers note that the 
     Federal Agricultural Improvement Act of 1996 makes other 
     oilseeds eligible for assistance under section 131 of the 
     FAIR Act. The Managers direct the Secretary, using his 
     authority under section 102 of the FAIR Act and any other 
     applicable authorities, to ensure that sesame seed producers 
     may participate in this program under section 202.
     Sec. 203. Specialty crops
       This section provides for infrastructure improvements for 
     growers of specialty crops. Specifically, the section 
     provides $59.45 million for the PACA reserve fund and the 
     inspection service reserve fund to maintain the cost of 
     licensing and inspection fees at the current level. The 
     section also provides $11.55 million to make improvements to 
     the system used for inspecting fruits and vegetables, 
     including the program and facilities used to train 
     inspectors; the technological tools used by inspectors; 
     expanding digital imaging technology capabilities; and 
     improving office space and grading tables.
       This section also provides $200 million to be used by the 
     Secretary to purchase specialty crops that experienced low 
     prices in the 1998 and 1999 crop years, including apples, 
     black-eyed peas, cherries, citrus, cranberries, onions, 
     melons, peaches, potatoes and others. The Managers expect the 
     Secretary to ensure that, as provided in subsection (d) of 
     this section, purchases with this funding are in addition to 
     other purchases made by the Secretary under other 
     authorities. To the extent practicable, the Managers expect 
     the Secretary to purchase a significant portion of the 
     commodities purchased under this section directly from 
     farmers or agricultural cooperatives rather than processors.
       This section also provides $25 million to compensate 
     growers for losses resulting from plum pox virus, Pierce's 
     disease and citrus canker.
       With respect to the plum pox virus, the Managers expect the 
     Secretary to use at least $5.1 million to compensate growers 
     whose trees were destroyed as part of the Secretary's 
     ``Declaration of Extraordinary Emergency'' dated March 2, 
     2000, in a manner that covers: net returns that would have 
     been earned over the remaining life of all the destroyed 
     trees; producers being prevented from replanting for three 
     years; and lost value of nursery stock.
       With respect to Pierce's disease, the Managers expect the 
     Secretary to utilize at least $7,140,000 in a manner that 
     enables the California Department of Food and Agriculture to 
     utilize such funding for state and local efforts to contain 
     and control Pierce's disease which is devastating 
     agricultural areas in Southern California, and is moving 
     northward into other regions. Funds are needed immediately to 
     monitor for the earliest signs of the disease and to inspect 
     nursery stock prior to shipment. The disease is spread by a 
     vigorous and difficult to control insect called the glassy-
     winged sharpshooter. This insect is a major problem, but the 
     elimination of the insect would not eliminate the disease.
       The Managers are disappointed by the federal response to 
     this outbreak. It is clear that efforts to control the spread 
     of the disease must be increased. It is also clear that there 
     is an immediate need for additional research efforts to study 
     near and long term alternatives for controlling the bacterium 
     common to Pierce's disease. The Managers expect the Secretary 
     to initiate such efforts immediately, within existing 
     resources.
       With respect to citrus canker, the Managers expect the 
     Secretary to utilize remaining funding to compensate citrus 
     growers who have suffered economic losses due to the disease.
       This section also requires the Secretary, in conjunction 
     with USDA's Inspector General, to submit a report to Congress 
     that analyzes the economic losses associated with falsified 
     inspection certificates issued at the Hunts Point Terminal 
     Market, including an analysis of how the Secretary intends to 
     provide restitution.
       This section also provides loans, up to three years in 
     term, for apple producers that are suffering economic losses 
     resulting from low prices for apples.
     Sec. 204. Other commodities
       Subsec. (a) Peanuts
       This subsection provides economic assistance to peanut 
     producers. The Managers expect the Secretary to deliver the 
     peanut economic assistance payments to producers in the same 
     manner used to deliver the 1999 peanut assistance authorized 
     under Title VIII, section 803 of P.L. 106-354. The Managers 
     also expect that the same rules that were used and applied to 
     a peanut quota lessor and lessee with respect to 1999 
     assistance will be used with respect to the delivery of the 
     monies made available under this Act.
       Subsec. (b) Tobacco
       This subsection-
       Provides $340 million to the Secretary to make payments to 
     States from October 1, 2000, to October 20, 2000. The States 
     shall divide the funds between quota owners, quota lessees, 
     and tobacco producers;
       Includes language requested from the State of Georgia 
     requiring the State to match the portion of funds provided 
     from this title by the Federal Government;
       Allows an increase for acreage transfers for dark-fire 
     cured tobacco;
       Allows for an adjustment in the burley noncommitted pool 
     stocks;
       Places limitations on burley carry forward pounds and lease 
     and transfer due to natural disasters;
       Makes a technical correction in the cross county leasing 
     definition of the 1938 Agricultural Adjustment Act; and
       Requires that the Secretary establish a computerized 
     recordkeeping system for burley tobacco quota and acreage.
       Subsec. (c) Honey
       This subsection provides recourse loans for honey producers 
     on the 2000 crop of honey. The loan rate would equal 85 
     percent of the average price of honey during the 5-crop year 
     period preceding the 2000 crop, dropping the year with the 
     highest price and the year with the lowest price in 
     calculating the average.
       Subsec. (d) Wool and mohair
       This subsection provides direct payments to producers of 
     wool and mohair for the 1999 marketing year. The payment 
     rates would be 20 cents per pound for wool and 40 cents per 
     pound for mohair. The Managers expect the Secretary to make 
     payments under this section in an equitable manner without 
     regard to size of operation.
       Subsec. (e) Cottonseed
       This subsection provides cottonseed assistance to producers 
     and first handlers. The Managers expect the Secretary to 
     provide additional assistance to cotton producers and first 
     handlers through direct payments or other means to help 
     alleviate the problems caused by the unusually low prices.
     Sec. 205. Payments in lieu of loan deficiency payments
       The Managers intend for crop year 2001 producers of wheat, 
     oats and barley on a

[[Page 9209]]

     farm with an AMTA contract who graze the acreage and forego 
     mechanical harvesting to be eligible for a payment under the 
     same terms and conditions as a producer who harvests a crop 
     and applies for a loan deficiency payment. The Managers 
     intend for the producer to enter into a payment agreement 
     with CCC at the loan deficiency payment rate for the 
     applicable crop in effect on the date of such agreement, at 
     such time as the producer chooses, but not earlier than the 
     date a producer who normally harvests a crop would make 
     application for a loan deficiency payment and no later than 
     September 30, 2001. The Managers expect the Secretary to 
     require adequate producer certifications to protect the 
     program from fraud and abuse. Producers that certify wheat, 
     oats or barley for grain with either the Farm Service Agency 
     (FSA) or the Risk Management Agency (RMA) and fail to harvest 
     the crop because of weather conditions and subsequently graze 
     the acreage are not intended to be covered by this provision. 
     The Managers expect the Department to immediately publicize 
     this provision in FSA county newsletters.
     Sec. 206. Expansion of producers eligible for loan deficiency 
         payments
       The Managers intend for producers growing an AMTA contract 
     commodity on a farm with no AMTA contract to be eligible for 
     loan deficiency payments on 2000 crop production subject to 
     the same terms and conditions as applicable to producers on a 
     farm with an AMTA contract. Producers eligible for payment 
     under this section are afforded an exception to the 
     beneficial interest provisions for a period of time that 
     extends for 30 days after the promulgation of regulations. 
     The Managers expect the Department to immediately publicize 
     this provision in FSA county newsletters.

                        Subtitle B-Conservation

     Sec. 211. Conservation assistance
       Subsection (a) directs USDA to use $10 million for the 
     Farmland Protection Program and allows nonprofit conservation 
     organizations to hold easements in those states that do not 
     have a state defined farmland protection program. Subsection 
     (b) directs USDA to use $40 million to provide soil, water 
     and natural resource conservation assistance for farmers in 
     the form of cost share or incentive payments. The Managers 
     believe that farmers and ranchers need additional assistance 
     to address these natural resource problems.
       The Managers agree there is a great demand among the states 
     to keep prime and unique farmland in agricultural production. 
     The farmland protection authorization in the 1996 farm bill 
     was immediately over-subscribed, and the $35 million in funds 
     were exhausted in two years. Thus, the Managers have provided 
     a $10-million infusion of funds to the farmland protection 
     program. In addition, new program participants, such as 
     nonprofit land resource conservation councils, are now able 
     to take part in this initiative.
       This section also provides $40 million to assist farmers 
     and ranchers through cost-share or incentive payments to get 
     proven soil and water conservation practices on their farms 
     and ranches. In making these funds available, the Managers 
     recognize that the Environmental Quality Incentives Program 
     (EQIP) has left certain producers in areas of states and 
     regions of the country with little or no federal help. 
     Although the funds made available in the conference report 
     are limited, they will be directed at areas that are outside 
     conservation priority areas, where most of the EQIP funds 
     have been used. The Managers expect for these funds to be 
     focused on practices that conserve water or improve water 
     quality. The Managers believe many water quality concerns can 
     be handled without the time-consuming and expensive 
     development and writing of whole farm plans. One or two 
     practices properly completed are the best conservation, which 
     can be applied to the land for water quality or water 
     conservation. In that regard, the Managers emphasize that the 
     funds included in this program are only for financial 
     assistance through cost-share and incentive payments to 
     farmers and ranchers. It is the intent of the Managers that 
     this program will be carried out using the conservation 
     operations account funded in annual agriculture 
     appropriations acts.
     Sec. 212. Inclusion of farmland in conservation-related areas
       This section requires the Secretary of the Interior, acting 
     through the Director of the U.S. Fish and Wildlife Service, 
     to prepare an Environmental Impact Statement (EIS) under the 
     National Environmental Policy Act of 1969 on the proposed 
     National Wildlife Refuge (NWR) on the Little Darby Creek in 
     Madison and Union Counties, Ohio. This EIS must be completed 
     before any further development may proceed on the Little 
     Darby Creek NWR.

                          Subtitle C--Research

     Sec. 221. Carbon cycle research
       This section directs USDA to provide $15 million in Fiscal 
     Year 2001 to the Consortium for Agricultural Soils Mitigation 
     of Greenhouse Gases for carbon cycle research at the 
     national, regional and local levels. Additional research is 
     needed in the sequestration of carbon as it relates to 
     agricultural best management practices and how these 
     practices convert carbon dioxide into soil organic carbon 
     that in turn reduces soil erosion, improves water quality and 
     increases yields. Producers and policymakers need a better 
     understanding of the link between the carbon cycle and 
     agricultural best management practices. The Managers believe 
     that the storage of carbon may provide additional income to 
     farmers and ranchers and provide ancillary environmental 
     benefits.
     Sec. 222. Tobacco research for medicinal purposes
       This section directs USDA to provide $3 million in Fiscal 
     Year 2001 to Georgetown University and North Carolina State 
     University for research regarding the extraction and 
     purification of proteins from genetically altered tobacco 
     that can be used as a vaccine for cervical cancer.
     Sec. 223. Research on soil science and forest health 
         management
       This section directs USDA to provide a grant to the 
     University of Nebraska-Lincoln for laboratories and equipment 
     for research on soil science and forest health and 
     management.
     Sec. 224. Research on waste streams from livestock production
       This section provides $3.5 million to expand research 
     related to livestock production waste streams. The Managers 
     expect the Secretary to utilize this funding to focus on 
     technology for reducing, modifying, recycling, and utilizing 
     livestock waste streams in a manner that will allow 
     scientists to develop and utilize integrated components 
     required for a systems approach to livestock waste and odor 
     research and development. This is required to deal with the 
     complex interactions among variables influencing nutrient/
     contaminant production and flow-through livestock production 
     systems. The Managers expect the research goals to include: 
     reducing waste and odor production and emission; reducing 
     health hazards and improving working conditions in production 
     facilities; improving efficiency of manure handling and 
     utilization; increasing recycling of nutrients and water; and 
     making livestock production compatible with neighboring 
     individuals and communities.
     Sec. 225. Improved storage and management of livestock and 
         poultry waste
       This section provides $5,000,000 in fiscal year 2001 for 
     the Secretary to review and assess potential problems 
     associated with livestock and poultry waste management 
     systems and to study and demonstrate appropriate market-
     oriented solutions to these potential problems. As provided 
     in this section, the Managers expect the Secretary to carry 
     out this review and assessments through grants, contracts, 
     and cooperative agreements with producers, associations of 
     producers, and foundations supported by producers.
     Sec. 226. Ethanol research pilot plant
       Authorizes and appropriates $14 million to the Secretary 
     for the construction of a corn-based ethanol research pilot 
     plant.
     Sec. 227. Bioinformatics Institute for Model Plant Species
       Authorizes the Secretary to enter into a cooperative 
     agreement with the National Center for Genome Resources in 
     Santa Fe, New Mexico, New Mexico State University and Iowa 
     State University for the establishment and operation of an 
     institute to be known as the Bioinformatics Institute for 
     Model Plant Species for the purpose of enhancing the 
     accessibility and utility of genomic information for plant 
     genetic research.

                   Subtitle D--Agricultural Marketing

     Sec. 231. Value-added agricultural product market development 
         grants
       This section directs the Secretary to use $15 million to 
     award competitive grants to eligible producers for the 
     purpose of facilitating greater participation in markets for 
     value-added agricultural commodities. The Managers expect 
     these grants to fund ventures for a variety of agricultural 
     commodities. It is the intent of the Managers that the grants 
     would be made for the purpose of developing business plans 
     for viable marketing opportunities and the creation of a 
     pilot project resource center to coordinate assistance 
     including research, data, business, legal, financial and 
     logistical operations. The Managers expect that the grants 
     would only be awarded if the projects, business ventures, and 
     other authorized activities are determined to be economically 
     viable and sustainable. Further, the Mangers expect that 
     grants awarded under this section will facilitate the opening 
     of new markets for value-added products. It is not the 
     intention of the Managers that grants made under this section 
     will interfere with existing markets or be used to fund 
     construction, acquisition, rental, leasing, or any other 
     means of obtaining physical capacity to produce or process 
     agricultural commodities.

                     Subtitle E--Nutrition Programs

     Sec. 241. Calulation of minimum amount of commodities for 
         School Lunch requirements
       Section 241 directs the Secretary to purchase additional 
     food commodities in fiscal years 2000 and 2001 for 
     distribution to schools participating in the School Lunch 
     program.
     Sec. 242. School Lunch data
       Section 242 provides that information obtained for 
     determining eligibility for free

[[Page 9210]]

     and reduced-price school meals in the School Lunch program 
     may be shared to aid in the enrollment of lower-income 
     children in the State Children's Health Insurance Program 
     (SCHIP). This section also authorizes a pilot project using 
     local agencies operating the Special Supplemental Nutrition 
     Program for Women, Infants, and Children (the WIC program) to 
     help enroll children in the SCHIP.
     Sec. 243. Child and Adult Care Food Program integrity
       Section 243 reforms the Child and Adult Care Food Program 
     (CACFP) to address problems of fraud, abuse, and deficient 
     management identified in investigations by the General 
     Accounting Office and the Agriculture Department's Office of 
     Inspector General. This section also expands the availability 
     of Federal nutrition assistance for after-school programs and 
     authorizes an additional State to increase participation in 
     the CACFP by for-profit child care organizations serving 
     lower-income children.
     Sec. 244. Adjustments to WIC Program
       Section 244 provides adjustments to the WIC program to 
     increase participation by residents of remote Indian or 
     Native villages and provide a program structure that better 
     serves these communities.

                       Subtitle F--Other Programs

     Sec. 251. Authority to provide loan in connection with boll 
         weevil eradication
       Section 251 requires the Secretary using the Commodity 
     Credit Corporation to make a loan to the Texas Boll Weevil 
     Eradication Foundation, Inc., in the amount of $10,000,000. 
     This loan is to enable the Foundation to retire debt 
     associated with boll weevil eradication zones that have ended 
     their participation, in whole or in part, in the boll weevil 
     eradication program.
       Repayment for the loan will begin on January 1 of the year 
     following the first year that a boll weevil eradication zone, 
     or any part of the zone, responsible for the debt retired 
     using the loan resumes participation in the boll weevil 
     eradication program.
       The cost of the credit subsidy of this loan will be the 
     amount necessary to provide the full $10,000,000 loan to the 
     Foundation. The Managers expect that the credit subsidy 
     necessary to implement the total $10,000,000 loan will be 
     approximately 51%. However, the Managers expect USDA to use 
     whatever amount of subsidy is necessary to make the 
     $10,000,000 loan.
       The Managers expect that this loan to the Texas Boll Weevil 
     Eradication Foundation, Inc., will retire its debt to Farm 
     Credit System institutions associated with the Lower Rio 
     Grande Valley Boll Weevil Eradication Zone and that portion 
     of the debt associated with the South Texas Winter Garden 
     Zone apportioned to Austin, Brazoria, Colorado, Fort Bend, 
     Jackson, Matagorda, and Wharton Counties by the Texas 
     Commissioner of Agriculture. This loan will provide funds to 
     be used by the Foundation for full and final satisfaction, on 
     a pro-rata basis, of the notes relating to the debt held by 
     those Production Credit Associations and the Farm Credit Bank 
     of Texas. The Managers expect that upon payment of the notes 
     from the funds provided by this loan, that the Texas Boll 
     Weevil Eradication Foundation, Inc., will be released from 
     any and all claims, liabilities, or obligations associated 
     with or evidenced by the notes.
     Sec. 252. Animal disease control
       Subsection (a) directs USDA to spend $7 million in Fiscal 
     Year 2001 for psuedorabies vaccination costs incurred by pork 
     producers. Subsection (b) directs USDA to spend $6 million in 
     Fiscal Year 2001 on bovine tuberculosis in Michigan. Funding 
     shall be used for surveillance and testing of cattle; 
     surveillance and testing of wildlife; research at ARS and 
     Michigan State University; increases in indemnity payments to 
     encourage depopulation of infected herds; diagnostic testing 
     and treatment of humans; slaughter surveillance; controlling 
     and preventing exposure of livestock to wildlife; fencing to 
     minimize contact between wildlife and domestic livestock; and 
     risk communications and improvements in technology for 
     communications. Current laws stipulate that funding for 
     Animal and Plant Health Inspection Service of the U.S. 
     Department of Agriculture eradication programs is to be 
     withdrawn from existing Commodity Credit Corporation funds. 
     The Managers intend for eradication program funding to 
     continue to be extracted from Commodity Credit Corporation 
     funds.
     Sec. 253. Emergency loans for seed producers
       This section directs USDA to provide non-interest loans to 
     producers of 1999 crop grass, forage, vegetable and sorghum 
     seed that have not received payments from AgriBiotech (ABT) 
     as a result of bankruptcy proceedings involving ABT. ABT, one 
     of the largest single turf, forage, and alfalfa seed 
     companies in the country, filed Chapter 11 bankruptcy 
     affecting over 1200 farmer growers in 39 states. ABT cannot 
     pay growers for their 1999 produced crop and the growers are 
     the largest segment of creditors in the bankruptcy. This 
     section directs the Secretary to create an emergency no-
     interest loan program for those producers involved in the 
     bankruptcy proceedings. For the producer to be eligible, the 
     seed producer must have a claim in the bankruptcy proceeding. 
     The Managers believe that this situation is unique as ABT is 
     an organization of numerous small family producers who will 
     be adversely impacted financially by this bankruptcy 
     proceedings.
     Sec. 254. Temporary suspension of authority to combine 
         certain offices
       The Managers expect the Secretary to submit a detailed 
     report regarding the justification used to select a state 
     office collocation site in each of the applicable states. The 
     manager expects the Secretary to notify all applicable 
     Agencies that no agency or agency employee shall take any 
     action to solicit office space or renovate current leased 
     space for the purpose of accommodating collocated agencies or 
     take any other action to collocate state offices from the 
     date of enactment of this Act through June 1, 2001. The 
     Managers expect those state agencies that are scheduled for 
     collocation and located in the same county on the date of 
     enactment to continue to pursue efforts to collocate. The 
     Managers expect the report to be inclusive of all factors 
     used in the selection of the site, including the methodology 
     used in the site selection.
     Sec. 255. Farm operating loan eligibility
       This section affects the Secretary of Agriculture's 
     administration of the loan eligibility limitations of 
     sections 311 and 319 of the Consolidated Farm and Rural 
     Development Act. Current law makes borrowers who have had a 
     number of direct or guaranteed operating loans from the Farm 
     Service Agency (FSA) ineligible for additional seasonal 
     operating loans.
       The Managers understand that previous policy was intent on 
     limiting loans to long- time borrowers in an effort to 
     graduate them to other sources of credit. The intent was to 
     free up credit resources for beginning, socially-
     disadvantaged and minority farmers and ranchers during a 
     period when fewer appropriations were being made for federal 
     farm loan programs. However, because of the recent downturn 
     in the farm economy caused by low prices, the Managers are 
     concerned that some farmers may be turned away from the FSA. 
     The only reason that otherwise efficient farmers cannot get 
     credit from FSA is because of an arbitrary term limit in the 
     law. While the Managers believe this change is needed at this 
     time, the amendment extends only through December 31, 2002, 
     which should provide ample time for the Congress to fully 
     reexamine this matter in the context of the next farm bill.
     Sec. 256. Water systems for rural and Native villages in 
         Alaska
       This section amends section 306D of the Consolidated Farm 
     and Rural Development Act by increasing the authorization of 
     appropriations from $20,000,000 to $30,000,000 for water and 
     wastewater systems for rural and native villages in Alaska. 
     Also authorizes a transfer of up to two percent of the funds 
     for training and technical assistance programs that are 
     related to the operation and management of the systems.
     Sec. 257. Crop and pasture flood compensation program
       Directs the Secretary to compensate producers for the loss 
     of cropland or pastureland due to unusual flooding. This 
     assistance is targeted to producers who are still 
     experiencing flooding, but have not been compensated for 
     loses between time of enactment and the Flood Compensation 
     Program authorized by the 1998 omnibus appropriations bill, 
     using that program's framework and base year. The section 
     sets a specific framework on the compensation. Acres on which 
     crops were planted but failed are not eligible. A payment 
     limitation of $40,000 is included.
       The Managers encourage the Department to take all necessary 
     administrative actions to ensure the availability of no less 
     than 4 million acres for partial field conservation buffer 
     enrollments within the existing Conservation Reserve Program. 
     Also, the Committee encourages the Department to extend 
     stewardship incentive payments to contour grass strips and 
     cross wind trap strips, as well as any additional 
     conservation practices that may be made eligible for the 
     continuous sign-up or conservation reserve enhancement 
     programs.
       This section also includes a technical correction to the 
     fiscal year 2000 agricultural appropriations act to 
     specifically include Lake County, Oregon as being eligible 
     for assistance that was made available under that act. The 
     Managers are aware that producers in Lake County have faced a 
     similar disastrous situation, but were inadvertently left out 
     of the fiscal year 2000 agriculture appropriations section. 
     The Managers are also aware that, under the fiscal year 2000 
     agricultural appropriations act, there are still funds 
     available in this fiscal year to assist ranchers in Lake 
     County, and this section provides the necessary authority for 
     the Secretary of Agriculture to move forward with that 
     assistance. The Managers expect the Secretary to provide that 
     assistance as soon as possible.
     Sec. 258. Flood mitigation near Pierre, South Dakota
       This section requires the Army Corps of Engineers to, as 
     soon as practicable after enactment, begin acquiring land and 
     property from willing sellers; relocate individuals located 
     on the land, improve infrastructure,

[[Page 9211]]

     and take other necessary actions with respect to such 
     property.
       This section also conditions winter releases of the Oahe 
     Powerplant on the Secretary of the Army completing an 
     amendment to his economic analysis and identifying mitigation 
     benefits with respect to existing ground water flooding.
     Sec. 259. Restoration of eligibility for crop loss assistance
       This section restores the eligibility for individuals 
     otherwise eligible for disaster assistance under section 1102 
     of the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 1999 
     (as contained in section 101(a) of division A of Public Law 
     105-277; 7 U.S.C. 1421, solely because the individual or 
     entity changed the legal structure of the individual's or 
     entity's farming operation.

                       Subtitle G--Administration

     Sec. 261. Funding
       Includes the funding amount for various sections in the 
     bill.
     Sec. 262. Obligation period
       Provides that the Commodity Credit Corporation shall 
     obligate and spend the funds made available under section 
     261(a)(1) (funding for school lunch commodities) only during 
     fiscal year 2000 and funds made available to fund other 
     provisions of the bill shall be obligated and spent only 
     during fiscal year 2001.
     Sec. 263. Regulations
       Directs the Secretary and the Commodity Credit Corporation, 
     whichever is appropriate, to promulgate regulations to 
     implement Title II of the legislation without regard to 
     notice and comment rulemaking.
       The Managers have provided the Secretary relief from 
     several statutory provisions relating to the promulgation of 
     regulations needed to carry out title II. This language is 
     the same as provisions passed by Congress in prior 
     legislation for farmers. The Managers are particularly 
     troubled by the fact that, even with these waivers, the 
     Department has been unable to implement programs in a timely 
     manner in prior years, most notably the oilseed assistance 
     that was provided by Congress in October of 1999 but has yet 
     to be distributed. In order to assist Congress in future 
     deliberations the Managers expect the Inspector General to 
     complete a report for submission to both Agriculture 
     Committees with 60 days of enactment of this Act addressing 
     the reasons for the inability of the Department to implement 
     programs in a timely manner.
     Sec. 264. Paygo adjustment
       Prohibits the Director of the Office of Management and 
     Budget from making any estimates of changes in direct 
     spending outlays and receipts in fiscal year 2000 resulting 
     from enactment of Title II of the legislation.
     Sec. 265. Commodity Credit Corporation reimbursement
       This section specifically directs the Secretary of the 
     Treasury to reimburse the Commodity Credit Corporation for 
     net realized losses sustained, but not previously reimbursed, 
     under this title.

      TITLE III--THE BIOMASS RESEARCH AND DEVELOPMENT ACT Of 2000

       The Conference substitute adopts a new title which 
     authorizes research to promote the conversion of biomass into 
     biobased industrial products:
     Section 301. Short title
       The Biomass Research and Development Act.
     Section 302. Findings
       States the need for a focused, integrated and innovation-
     driven research effort to develop technologies for the 
     production of biobased industrial products.
     Section 303. Definitions
       Defines the terms Advisory Committee, Biobased Industrial 
     Product, Biomass, Board, Initiative, Institution of Higher 
     Education, National Laboratory, Point of Contact, Processing, 
     and Research and Development.
     Section 304. Cooperation and coordination in biomass research 
         and development
       Requires that the Secretaries of Agriculture and Energy 
     shall cooperate and coordinate policies and procedures that 
     promote biomass research and development leading to the 
     production of biobased industrial products. Specifies the 
     purpose and areas for coordination.
     Section 305. Biomass Research and Development Board
       Establishes a board to coordinate programs, to maximize 
     benefits and to bring coherence to strategic planning within 
     and among departments and agencies of the Federal Government 
     to promote the use of biobased industrial products. The Board 
     shall be comprised of a minimum of six members. The Board 
     shall be cochaired by the points of contact appointed by the 
     Secretaries of Agriculture and Energy by and with the advice 
     and consent of the Senate.
     Section 306. Biomass Research and Development Technical 
         Advisory Committee
       Establishes an advisory committee to advise the Secretaries 
     of Agriculture USDA and the Department of Energy DOE and the 
     Biomass Research and Development Board, to facilitate 
     consultations and partnerships, and to evaluate and perform 
     strategic planning for the Biomass Research and Development 
     Initiative. The Committee shall be comprised of a minimum of 
     ten members, all appointed by the points of contact. The 
     Committee will meet at least quarterly. Lengths of terms are 
     specified.
     Section 307. Biomass Research and Development Initiative
       Provides that the Secretaries of Agriculture and Energy, in 
     consultation with the Board, shall establish a Biomass 
     Research and Development Initiative under which competitively 
     awarded grants, contracts and financial assistance are 
     provided to, or entered into, with eligible entities to carry 
     out research and development of low cost and sustainable 
     biobased industrial products. Provides that funds 
     appropriated for biomass research and development under the 
     general authority of the Secretary of Energy to conduct 
     research and development programs may be used to carry out 
     this title. Also authorizes $ 49,000,000 within USDA for each 
     of fiscal years 2000 through 2005 to carry out this title.
     Section 308. Administrative support and funds
       Provides the Secretaries of Agriculture and Energy, and 
     other agencies, the authority to give administrative support 
     and funds to the Board and Advisory Committee if needed.
     Section 309. Reports
       Requires that an initial report be jointly submitted by the 
     Secretaries of Agriculture and Energy within 180 days of 
     enactment of the Act and that an annual report be submitted 
     to Congress for each fiscal year for which funds are made 
     available.
     Section 310. Termination of authority
       Authority granted by this title shall terminate on December 
     31, 2005.

                       TITLE IV--PLANT PROTECTION

       The Conference substitute adopts a new provision which 
     consolidates and enhances the authority of the Secretary to 
     regulate in interstate and foreign commerce, the movement of 
     any plant, plant product, biological control organism, or 
     noxious weed if the Secretary determines the action is 
     necessary to prevent the introduction or dissemination of a 
     plant pest or noxious weed:
     Sec. 401. Short title and table of contents
       The short title of this Act is the ``Plant Protection 
     Act.'' This section also contains the table of contents for 
     the Act.
     Sec. 402. Findings
     Sec. 403. Definitions
       Sections 3(1), (3)-(8), (11), (17), and (19) are all new 
     definitions, but are commonly accepted definitions for the 
     words, ``article,'' ``enter and entry,'' ``export and 
     exportation,'' ``import and importation,'' ``interstate,'' 
     ``interstate commerce,'' ``means of conveyance,'' ``permit,'' 
     ``State,'' and ``this Act.''
       Sec. 403(2) is new. Defining biological control organisms 
     separately makes our authority over these organisms explicit 
     when they present a potential plant pest risk.
       Sec. 403(9), (12), (13), (15), (16), and (20), ``move and 
     related terms,'' ``person,'' ``plant,'' ``plant product,'' 
     ``Secretary,'' and ``United States'' have all been derived 
     from existing law with little or no modification.
       Sec. 403(10), ``noxious weed,'' has been expanded from 
     existing law.
       Sec. 403(14), ``plant pest,'' has been expanded to include 
     all vertebrate and invertebrate animals, except humans.
       Sec. 403(18), ``systems approach,'' is new.

                      Subtitle A--Plant Protection

     Sec. 411. Regulation of movement of plant pests
       Prohibits the importation, entry, exportation, or movement 
     in interstate commerce, mailing, or delivery (from any post 
     office or by any mail carrier) of any plant pest unless the 
     movement is in accordance with regulations issued by the 
     Secretary. All processes used to develop such regulations 
     will be transparent and accessible and the regulations will 
     be based on sound science. This provision does not authorize 
     the opening of any mail unless such action is authorized 
     under postal laws. This section would authorize the Secretary 
     to issue regulations that allow the movement of a plant pest 
     in interstate commerce without restriction. Also provides for 
     a petition process to add or remove plant pests from 
     regulation.
     Sec. 412. Restrictions on movement
       Authorizes the Secretary to prohibit or restrict the 
     importation, entry, exportation, or movement in interstate 
     commerce of any plant, plant product, biological control 
     organism, noxious weed, article, or mean of conveyance if the 
     Secretary determines the action is necessary to prevent the 
     introduction or dissemination of a plant pest or noxious 
     weed. Within 1 year after the Act is enacted, the Secretary 
     shall publish for public comment a notice describing the 
     processes governing such import requests. Requires the 
     Secretary to conduct a study of the effectiveness of using 
     systems approaches to guard against the introduction into the 
     United States of plant pathogens associated with proposals 
     for imported plants or plant products. Not later than 2 years 
     after the Act is enacted, the Secretary shall report to 
     Congress on the results of this study. Authorizes the 
     Secretary to determine by regulation those noxious weeds and 
     biological

[[Page 9212]]

     control organisms that may or may not freely move within 
     interstate commerce. A person may petition the Secretary to 
     add or remove individual plant species or biological control 
     organisms from such regulations.
     Sec. 413. Notification and holding requirements upon arrival
       Requires the Secretary of Treasury to notify promptly the 
     Secretary of Agriculture of the arrival of plants, plant 
     products, biological control organisms, plant pests, or 
     noxious weeds at the port of entry. It also requires the 
     Secretary of Treasury to hold the articles until the 
     Secretary of Agriculture has inspected or otherwise released 
     them.
       Further, section 413 requires persons responsible for 
     articles for which a permit under sections 411 or 412 to 
     notify the Secretary of Agriculture or appropriate official 
     in the State of destination of relevant information 
     concerning the shipment before moving it from the port of 
     entry. Finally, section 413 prohibits the movement of any 
     imported plant, plant product, biological control organism, 
     plant pest, noxious weed, article, or means of conveyance 
     from the port of entry or interstate unless it has been 
     inspected or otherwise released by the Secretary of 
     Agriculture.
     Sec. 414. Remedial measures
       Section 414 authorizes the Secretary to hold, seize, 
     quarantine, treat, apply other remedial measures to, destroy, 
     or dispose of any plant; plant pest; noxious weed; biological 
     control organism; plant product; article; or means of 
     conveyance; and progeny of any plant product, plant pest, 
     biological control organisms, or noxious weed in interstate 
     or foreign commerce under various circumstances in order to 
     prevent the dissemination of any plant pest or noxious weed 
     new to or not known to be widely prevalent or distributed in 
     the United States. Authorizes the Secretary to order an owner 
     (including the owner's agent) of any item subject to action 
     under subsection (a) to treat, apply other remedial measures, 
     to destroy, or otherwise dispose of such item without cost to 
     the Federal Government in a manner the Secretary deems 
     appropriate. If the owner fails to take action as ordered, 
     the Secretary may take the action and recover the costs of 
     the actions from the owner or his agent. The Secretary is 
     authorized to develop a classification system and integrated 
     management plan regarding noxious weeds. Requires the 
     Secretary to take the least drastic action to prevent the 
     dissemination of a plant pest or noxious weed.
     Sec. 415. Declaration of extraordinary emergency
       Authorizes the Secretary to declare an extraordinary 
     emergency in certain situations. Once an extraordinary 
     emergency is declared, the Secretary can take actions to 
     prohibit or restrict movement or require that other actions 
     be taken concerning regulated items regardless of whether the 
     items are moving in interstate commerce. Action can be taken 
     only if the Secretary finds that the actions taken by the 
     State are not adequate and the Secretary publishes those 
     findings in the Federal Register. Actions the Secretary takes 
     must also be the least drastic actions that are feasible to 
     deal with the plant pest or noxious weed problem. Finally, 
     the Secretary is authorized to pay compensation for economic 
     losses.
     Sec. 416. Recovery of compensation for unauthorized 
         activities
       Authorizes the owners of plants, biological control 
     organisms, plant products, plant pests, noxious weeds, 
     articles, or means of conveyance destroyed or disposed of 
     under section 414 or 415 to bring an action not later than 1 
     year after the destruction or disposal in U.S. district court 
     and for the owner to recover just compensation for an 
     unauthorized destruction or disposal of such property.
     Sec. 417. Control of grasshoppers and mormon crickets
       Subject to the availability of funding, the Secretary shall 
     carry out control programs for grasshoppers and Mormon 
     crickets on Federal, State, and private lands to protect 
     rangeland. Authorizes the pooling of funds between the 
     Department of Agriculture and the Department of the Interior 
     to conduct such programs on Federal lands controlled by the 
     Department of the Interior. This section also provides the 
     formula for the Federal cost share for treatment programs.
     Sec. 418. Certification for exports
       Authorizes the Secretary to certify for export plants, 
     plant products, and biological control organisms as to 
     freedom from plant pests or noxious weeds or exposure to 
     plant pests or noxious weeds according to phytosanitary or 
     other requirements of the exporting country.

                 Subtitle B--Inspection and Enforcement

     Sec. 421. Inspections, seizures, warrants
       Authorizes warrantless inspections based on guidelines 
     approved by the Attorney General: (1) of persons or means of 
     conveyance moving into the United States to determine whether 
     they are carrying any regulated material; (2) of persons or 
     means of conveyance moving interstate upon probable cause to 
     believe that they are carrying regulated material; and (3) of 
     any person or means of conveyance moving intrastate under 
     extraordinary emergency conditions (see section 415) upon 
     probable cause to believe that they are carrying regulated 
     material. The Secretary is also authorized to enter premises 
     with a warrant issued by a Federal judge to make inspections 
     and seizures necessary under the Act.
     Sec. 422. Collection of information
       Authorizes the Secretary to gather and compile information 
     and to conduct investigations necessary for the 
     administration and enforcement of the Act.
     Sec. 423. Subpoena authority
       Authorizes the Secretary to require the attendance of 
     witnesses and production of documentary evidence through the 
     use of subpoenas to aid in investigations and proceedings. 
     This provision also authorizes the Secretary to request the 
     Attorney General to take actions to enforce such subpoenas.
     Sec. 424. Penalties for violation
       Allows for criminal penalties as provided under Title 18 of 
     the U.S. Code for knowing violations of the Act or any misuse 
     of a permit, certificate, or other document. It also provides 
     for civil penalties for violations of the Act, including 
     forging, counterfeiting, using in an unauthorized manner, 
     altering, defacing, or destroying any certificate, permit, or 
     document provided for under the Act not to exceed the greater 
     of: (1) $50,000 for an individual, $250,000 for any other 
     violation by a person, and $500,000 for all violations 
     adjudicated in the same proceeding, or (2) twice the gross 
     gain or gross loss associated with the violation. The penalty 
     has been increased from $1,000 per violation. Finally, 
     section 204 authorizes the issuance of a notice of warning in 
     lieu of criminal prosecution.
     Sec. 425. Attorney General enforcement actions
       Authorizes the Attorney General to prosecute criminal 
     violations of the Act; bring an action to enjoin violation of 
     or compel compliance with the Act; or bring an action for 
     recovery of reimbursable funds, civil penalties, late payment 
     penalties, or interest that has not been paid.
     Sec. 426. Court jurisdiction
       Delineates the jurisdiction of courts in most cases arising 
     under the Act.

                  Subtitle C--Miscellaneous Provisions

     Sec. 431. Cooperation
       Authorizes the Secretary to cooperate with other Federal 
     agencies, States or their political subdivisions, foreign 
     governments or their political subdivisions, domestic or 
     international organizations or associations, or other persons 
     to carry out the Act. Section 301 authorizes the Secretary to 
     transfer biological control technology to States, Federal 
     agencies, or other persons for use in control of plant pests 
     or noxious weeds. Section 301 also authorizes cooperation 
     with States and other persons in the administration of 
     programs for the improvement of plants, plant products, and 
     biological control organisms. Finally, Section 431 authorizes 
     the Secretary to ensure that all phytosanitary import/export 
     issues are addressed based on sound science and consistent 
     with applicable international agreements.
     Sec. 432. Buildings, land, people, claims, and agreements
       Authorizes the Secretary to acquire and maintain real or 
     personal property for special purposes; to enter into 
     contracts, cooperative agreements, memoranda of 
     understanding, and other agreements; to employ any person; or 
     to make grants necessary for carrying out this Act. Section 
     432 also authorizes the payment of tort claims when the 
     claims arise outside the United States in connection with 
     activities authorized by this Act. Claims must be presented 
     in writing within 2 years after the claim accrues.
     Sec. 433. Reimbursable agreements
       Authorizes the Secretary to enter into reimbursable fee 
     agreements for preclearance at locations outside the United 
     States for plants, plant products, biological control 
     organisms, and articles. Funds collected are credited to 
     accounts established by the Secretary and remain available 
     until expended. Section 433 also authorizes the Secretary to 
     pay employees performing inspection, quarantine, or other 
     services relating to imports and exports for all overtime, 
     night, or holiday work and to require the person for whom the 
     service is performed to reimburse the Secretary for the 
     services.
     Sec. 434. Regulations and orders
       Authorizes the Secretary to issue orders and regulations 
     necessary to carry out this Act.
       Sec. 435. Protection for mail handlers
       This Act shall not apply to any employee of the United 
     States in the performance of the duties of the employee in 
     handling the mail.
     Sec. 436. Preemption
       Provides that no State or political subdivision may take an 
     action to regulate in foreign commerce any article or means 
     of conveyance, plant, biological control organism, plant 
     pest, noxious weed, or plant product in order to control or 
     eradicate a plant pest or noxious weed, or prevent the 
     introduction or dissemination of a biological control 
     organism, plant pest, or noxious weed.
       Similarly, no State or political subdivision may take an 
     action to regulate interstate commerce different from Federal 
     regulations in any of the delineated items; control a

[[Page 9213]]

     plant pest or noxious weed; eradicate a plant pest or noxious 
     weed; or prevent the introduction or dissemination of a 
     biological control organism, plant pest, or noxious weed if 
     the Secretary has issued a regulation or order to prevent the 
     dissemination of the biological control organism, plant pest, 
     or noxious weed. However, if State or local officials can 
     demonstrate a special local circumstance, they can petition 
     the Secretary to allow for the imposition of additional 
     prohibitions or restrictions by the State or local 
     government.
     Sec. 437. Severability
       Contains standard severability language.
     Sec. 438. Repeals
       Enumerates the list of laws being repealed and replaced by 
     this Act.

              Subtitle D--Authorizations of Appropriations

     Sec. 441. Authorization of appropriations
       Authorizes the appropriation of such amounts necessary to 
     carry out this Act. Unless specifically authorized, no part 
     of appropriated funds shall be used for indemnification 
     purposes.
     Sec. 442. Transfer authority
       Authorizes the Secretary to transfer funds without fiscal 
     year limitation from any agency or corporation of the 
     Department to arrest, control, eradicate, and/or prevent the 
     spread of a plant pest or noxious weed in connection with a 
     threatening agricultural emergency.

                      Title V--Inspection Animals

     Sec. 501. Inspection animal civil penalties
       Provides for civil penalties of up to $10,000 for causing 
     harm to or interfering with a Department of Agriculture 
     inspection animal.
     Sec. 502. Inspection animal subpoena authority
       Authorizes the Secretary to require the attendance of 
     witnesses and production of documentary evidence through the 
     use of subpoenas to aid in investigations and proceedings. 
     This provision also authorizes the Secretary to request the 
     Attorney General to take actions to enforce such subpoenas.
     Larry Combest,
     Bill Barrett,
     John Boehner,
     Thomas W. Ewing,
     Richard Pombo,
     Charlie Stenholm,
     Gary Condit,
     Collin C. Peterson,
     Cal Dooley,
                                Managers on the Part of the House.

     Richard G. Lugar,
     Jesse Helms,
     Thad Cochran,
     Paul Coverdell,
     Pat Roberts,
     Tom Harkin,
     Patrick Leahy,
     Kent Conrad,
     Bob Kerrey,
     Managers on the Part of the Senate.

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