[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Senate]
[Pages 26686-26863]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 2614. Mr. McCAIN (for himself, Mr. Gramm, Mr. Kerry, Mrs. Murray, 
and Mr. Smith of Oregon) submitted an amendment intended to be proposed 
by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, in the amendment insert the 
     following:

     SEC.   . MARKET NAME FOR CATFISH.

       The term ``catfish'' shall be considered to be a common or 
     usual name (or part thereof) for any fish in keeping with 
     Food and Drug Administration procedures that follow 
     scientific standards and market practices for establishing 
     such names for the purposes of section 403 of the Federal 
     Food, Drug, and Cosmetic Act, including with respect to the 
     importation of such fish pursuant to section 801 of such Act.
                                  ____

  SA 2615. Mr. COCHRAN submitted an amendment intended to be proposed 
to the amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 648, strike line 17 and all that follows 
     through page 649, line 5, and insert the following:
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to

[[Page 26687]]

     carry out this section $10,000,000 for each of fiscal years 
     2002 through 2006.''.
                                  ____

  SA 2616. Mr. COCHRAN submitted an amendment intended to be proposed 
to the amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 820, strike line 23 and all that follows 
     through page 821, line 11, and insert the following:
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000 for 
     each of fiscal years 2002 through 2006.''.
                                  ____

  SA 2617. Mr. COCHRAN submitted an amendment intended to be proposed 
to the amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 811, strike line 15 and all that follows 
     through page 812, line 3, and insert the following:
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.''.
  SA 2618. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 809, strike line 15 and all that follows 
     through page 810, line 10, and insert the following:
       (ii) be available to the Secretary to carry out the 
     purposes of the account, subject to the availability of 
     appropriations;
       (iii) remain available until expended; and
       (iv) be in addition to any funds made available under 
     paragraph (2).
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.
                                  ____

  SA 2619. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 793.
                                  ____

  SA 2620. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 762, strike line 23 and all that follows 
     through page 763, line 13 and insert the following:
       ``(b) Funding.--On October 1, 2001, and each October 1 
     thereafter through October 1, 2005, of funds of the Commodity 
     Credit Corporation, the Secretary shall transfer to the 
     Account to carry out this section $145,000,000.''; and''.
                                  ____

  SA 2621. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 837, strike lines 1 through 14 and insert the 
     following:
       ``(k) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to carry out 
     this section $2,000,000 for each of fiscal years 2002 through 
     2006.''.
  SA 2622. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 882, strike line 15 and all that follows 
     through page 883, line 3, and insert the following:
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2623. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 917, strike line 15 and all that follows 
     through page 918, line 13, and insert the following:
       (a) Authorization of Appropriations.--The Biomass Research 
     and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 
     106-224) is amended--
       (1) in section 307, by striking subsection (f);
       (2) by redesignating section 310 as section 311; and
       (3) by inserting after section 309 the following:

     ``SEC. 310. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     title $15,000,000 for each of fiscal years 2002 through 
     2006.''.
                                  ____

  SA 2624. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 903, strike lines 9 through 22 and insert the 
     following:
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2625. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 900, strike line 21 and all that follows 
     through page 901, line 14, and insert the following:
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $33,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2626. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Dachle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and

[[Page 26688]]

for other purposes; which was ordered to lie on the table; as follows:

       Beginning on page 896, strike line 21 and all that follows 
     through page 897, line 9, and insert the following:
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2627. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Dachle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 892, strike lines 6 through 24 and insert the 
     following:
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $16,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2628. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Dachle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 887, strike lines 15 through 20 and insert the 
     following:
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2629. Mr. COCHRAN submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Dachle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 919, strike line 20 and all that follows 
     through page 920, line 13, and insert the following:
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $9,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____

  SA 2630. Mr. CRAPO submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Dachle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 247, strike line 22 and all that follows 
     through page 254, line 14, and insert the following:
       ``(a) Establishment.--
       ``(1) In general.--Effective for each of the 2003 through 
     2006 calendar years, the Secretary may establish, and enter 
     into cooperative agreements with States to carry out in 
     accordance with State law, a program described in paragraph 
     (2) for the acquisition, transfer, and lease of water or 
     water rights, to achieve the purposes of 1 or more Federal, 
     State, tribal, and local fish, wildlife, and plant 
     conservation plans.
       ``(2) Components of program.--In each State that enters 
     into an agreement described in paragraph (1), the Secretary 
     may establish, and carry out the enrollment of eligible land 
     described in subsection (b) through the use of contracts in, 
     a water conservation program to provide for the acquisition 
     and temporary transfer of water or water rights, or permanent 
     acquisition of water or water rights, from willing sellers 
     that would otherwise be entitled to use the water in 
     accordance with a State-approved water right or a contract 
     with the Secretary, or by other lawful means (including 
     willing sellers in the San Francisco Bay-Delta, the Truckee-
     Carson Basin, and the Walker River Basin).
       ``(b) Enrollment of Eligible Land.--
       ``(1) CRP acreage limit.--The Secretary shall enroll in the 
     program not more than 1,100,000 acres, which acreage shall 
     count against the number of acres authorized to be enrolled 
     in the conservation reserve program under section 1231(d).
       ``(2) Timing.--To the maximum extent practicable, an 
     enrollment under paragraph (1) shall occur during the 
     enrollment period for the conservation reserve program.
       ``(3) Priority in enrollment.--In enrolling eligible land 
     in the program, the Secretary shall give priority to land 
     with associated water or water rights that--
       ``(A) could be used to significantly advance the goals of 
     Federal, State, Tribal and local fish, wildlife, and plant 
     conservation plans, including--
       ``(i) plans that address multiple endangered species, 
     sensitive species, or threatened species; or
       ``(ii) agreements entered into, or conservation plans 
     submitted, under section 6 or 10(a)(2)(A) of the Endangered 
     Species Act of 1973 (16 U.S.C. 1535, 1539(a)(2)(A)), 
     respectively; or
       ``(B) would benefit fish, wildlife, or plants of 1 or more 
     refuges within the National Wildlife Refuge System.
       ``(4) Nonparticipating states.--In the case of a State that 
     elects not to participate in the program--
       ``(A) the Secretary shall give, to applications from 
     landowners in the State to enroll land in the conservation 
     reserve program under subchapter B of chapter 1, priority 
     that is equal to the priority given under paragraph (3) to 
     applications from landowners in States participating in the 
     program; and
       ``(B) notwithstanding paragraph (1), landowners in the 
     State may enroll in the conservation reserve program under 
     subchapter B of chapter 1 such acreage as the landowners in 
     the State would have enrolled in the program if the State had 
     elected to participate in the program.
       ``(5) Enrollment authority.--The priority''.
                                  ____

  SA 2631. Mr. WELLSTONE submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes, which was ordered to lie on the table, 
as follows:

       Beginning on page 226, strike line 1 and all that follows 
     through page 235, line 6 and insert the following:
       ``(4) Large Confined Livestock Feeding Operations.--
       (A) Definition of large confined livestock feeding 
     operation.--In this paragraph:
       (i) In General.--The term `large confined livestock feeding 
     operation' means a confined livestock feeding operation 
     designed to confine 1,000 or more animal equivalent units (as 
     defined by the Secretary).
       (I) Waiver.--The Secretary may on a case by case basis 
     grant states a waiver from the requirement in (4)(A)(i), of 
     this section, in accordance with Volume 62, No. 99 of the 
     Federal Register.
       (ii) Multiple locations.--In determining the number of 
     animal unit equivalents of the operation of a producer under 
     clause (i), the animals confined by the producer in 
     confinement facilities at all locations (including the 
     producer's proportionate share in any jointly owned facility) 
     shall be counted.
       (B) New or expanded operations.--Subject to (4)(A)(i)(1) of 
     this section, a producer shall not be eligible for cost-share 
     payments for any portion of a storage or treatment facility, 
     or associated waste transport or treatment device, to manage 
     manure, process wastewater, or other animal waste generated 
     by a large confined livestock feeding operation, if the 
     operation is a confined livestock operations that--
       (i) is established as a large confined livestock operation 
     after the date of enactment of this paragraph; or
       (ii) becomes a large confined livestock operation after the 
     date of enactment of this paragraph by expanding the capacity 
     of the operation to confine livestock.
       (C) Modification of operation.--A modification of a large 
     confined livestock operation shall not be considered an 
     expansion under subparagraph (B)(ii) of this section, if as 
     determined by the Secretary, the modification involves--
       (i) adoption of new technology;
       (ii) improved efficiency in the functioning of the 
     operation; or
       (iii) reorganization of the status of the entity; and
       (iv) the capacity of the operation to confine livestock is 
     not increase.
       (D) Multiple operations.--A producer that has an interest 
     in more than 1 large confined livestock operation shall not 
     be eligible for more than 1 contract under this section for 
     cost-share payments for a storage or treatment facility, or 
     associated waste transport or transfer device, to manage 
     manure, process wastewater, or other animal waste generated 
     by the large confined livestock feeding operation.

[[Page 26689]]

       (E) Flood plain siting.--Cost-share payments shall not be 
     available for structural practices for a storage or treatment 
     facility, or associated waste transport device, to manage 
     manure, process wastewater, or other animal waste generated 
     by a confined livestock operation if
       (i) the structural practices are located in a 100-year 
     flood plain; and
       (ii) the confined livestock operation is a confined 
     livestock operation that is established after the date of 
     enactment of this paragraph.
       (e) Incentive Payments.--The Secretary shall make incentive 
     payments in an amount and at a rate determined by the 
     Secretary to be necessary to encourage a producer to perform 
     1 or more practices.
       (f) Technical Assistance.--
       (1) In general.--The Secretary shall allocate funding under 
     the program for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided for a fiscal year.
       (2) Amount.--The allocated amount may vary according to--
       (A) the type of expertise required;
       (B) the quantity of time involved; and
       (C) other factors as determined appropriate by the 
     Secretary.
       (3) Limitation.--Funding for technical assistance under the 
     program shall not exceed the projected cost to the Secretary 
     of the technical assistance provided for a fiscal year.
       (4) Other authorities.--The receipt of technical assistance 
     under the program shall not affect the eligibility of the 
     producer to receive technical assistance under other 
     authorities of law available to the Secretary.
       (5) Incentive payments for technical assistance.--
       (A) In general.--A producer that is eligible to receive 
     technical assistance for a practice involving the development 
     of a comprehensive nutrient management plan may obtain an 
     incentive payment that can be used to obtain technical 
     assistance associated with the development of any component 
     of the comprehensive nutrient management plan.
       (B) Purpose.--The purpose of the payment shall be to 
     provide a producer the option of obtaining technical 
     assistance for developing any component of a comprehensive 
     nutrient management plan from a certified provider.
       (C) Payment.--The incentive payment shall be--
       (i) in addition to cost-share or incentive payments that a 
     producer would otherwise receive for structural practices and 
     land management practices;
       (ii) used only to procure technical assistance from a 
     certified provider that is necessary to develop any component 
     of a comprehensive nutrient management plan; and
       (iii) in an amount determined appropriate by the Secretary, 
     taking into account--
       (I) the extent and complexity of the technical assistance 
     provided;
       (II) the costs that the Secretary would have incurred in 
     providing the technical assistance; and
       (III) the costs incurred by the private provider in 
     providing the technical assistance.
       (D) Eligible practices.--The Secretary may determine, on a 
     case by case basis, whether the development of a 
     comprehensive nutrient management plan is eligible for an 
     incentive payment under this paragraph.
       (E) Certification by secretary.--
       (i) In general.--Only persons that have been certified by 
     the Secretary under section 1244(f)(3) shall be eligible to 
     provide technical assistance under this subsection.
       (ii) Quality assurance.--The Secretary shall ensure that 
     certified providers are capable of providing technical 
     assistance regarding comprehensive nutrient management in a 
     manner that meets the specifications and guidelines of the 
     Secretary and that meets the needs of producers under the 
     program.
       (F) Advance payment.--On the determination of the Secretary 
     that the proposed comprehensive nutrient managmenet of a 
     producer is eligible for an incentive payment, the producer 
     may receive a partial advance of the incentive payment in 
     order to procure the services of a certified provider.
       (G) Final payment.--The final installment of the incentive 
     payment shall be payable to a producer on presentation to the 
     Secretary of documentation that is satisfactory to the 
     Secretary and that demonstrates--
       (i) completion of the technical assistance; and
       (ii) the actual cost of the technical assistance.
       (g) Modification or Termination of Contracts.--
       (1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with a 
     producer under this chapter if--
       (A) the producer agrees to the modification or termination; 
     and
       (B) the Secretary determines that the modification or 
     termination is in the public interest.
       (2) Involuntary termination.--The Secretary may terminate a 
     contract under this chapter if the Secretary determines that 
     the producer violated the contract.

     SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

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

     SEC. 1240D. DUTIES OR PRODUCERS.

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

     SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

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

     SEC. 1240F. DUTIES OF THE SECRETARY.

       (a) To the extent appropriate, the Secretary shall assist a 
     producer in achieving the conservation and environmental 
     goals of a program plan by--
       (1) providing technical assistance in developing and 
     implementing the plan;
       (2) providing technical assistance, cost-share payments, or 
     incentive payments for developing and implementing 1 or more 
     practices, as appropriate;
       (3) providing the producer with information, education, and 
     training to aid in implementation of the plan; and
       (4) encouraging the producer to obtain technical 
     assistance, cost-share payments, or grants from other 
     Federal, State, local, or private sources.

     SEC. 1240G. LIMITATION ON PAYMENTS.

       (a) In General.--Subject to subsection (b), the total 
     amount of cost-share and incentive

[[Page 26690]]

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

  SA 2632. Mr. WELLSTONE submitted an amendment intended to be proposed 
to amendment SA 2602 submitted by Mr. Wellstone and intended to be 
proposed to the amendment SA 2471 proposed by Mr. Daschle to the bill 
(S. 1731) to strengthen the safety net for agricultural producers, to 
enhance resource conservation and rural development, to provide for 
farm credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes, which 
was ordered to lie on the table; as follows:

       Beginning on page 1, strike line 3 and all that follows 
     through page 15, line 2 and insert the following:
       ``(4) Large confined livestock feeding operations.--
       (A) Definition of large confined livestock feeding 
     operation.--In this paragraph:
       (i) In general.--The term `large confined livestock feeding 
     operation' means a confined livestock feeding operation' 
     means a confined livestock feeding operation designed to 
     confine 1,000 or more animal equipment units (as defined by 
     the Secretary).
       (I) Waiver.--The Secretary may on a case by case basis 
     grant states a waiver from the requirement in (4)(A)(i), of 
     this section, in accordance with Volume 62, No. 99 of the 
     Federal Register.
       (ii) Multiple locations.--In determining the number of 
     animal unit equivalents of the operation of a producer under 
     clause (i), the animals confined by the producer in 
     confinement facilities at all locations (including the 
     producer's proportionate share in any jointly owned facility) 
     shall be counted.
       (B) New or expanded operations.--Subject to (r)(A)(i)(I) of 
     this section a producer shall not be eligible for cost-share 
     payments for any portion of a storage or treatment facility, 
     or associated waste transport or treatment device, to manage 
     manure, process wastewater, or other animal waste generated 
     by a large confined livestock feeding operation, if the 
     operation is a confined livestock operations that--
       (i) is established as a large confined livestock operation 
     after the date of enactment of this paragraph; or
       (ii) becomes a large confined livestock operation after the 
     date of enactment of this paragraph by expanding the capacity 
     of the operation to confine livestock.
       (C) Modification of operation.--A modification of a large 
     confined livestock operation shall not be considered an 
     expansion under subparagraph (B)(ii) of this section, if as 
     determined by the Secretary, the modification involves--
       (i) adoption of a new technology;
       (ii) improved efficiency in the functioning of the 
     operation or;
       (iii) reorganization of the status of the entity; and
       (iv) the capacity of the operation to confine livestock is 
     not increased.
       (D) Multiple operations.--A producer that has an interest 
     in more than 1 large confined livestock operation shall not 
     be eligible for more than 1 contract under this section for 
     cost-share payments for a storage or treatment facility, or 
     associated waste transport or transfer device, to manage 
     manure, process wastewater, or other animal waste generated 
     by the large confined livestock feeding operation.
       (E) Flood plain siting.--Cost-share payments shall not be 
     available for structural practices for a storage or treatment 
     facility, or associated waste transport device, to manage 
     manure, process wastewater, or other animal waste generated 
     by a confined livestock operation if
       (i) the structural practices are located in a 100-year 
     flood plain; and
       (ii) the confined livestock operation is a confined 
     livestock operation that is established after the date of 
     enactment of this paragraph.
       (e) Incentive Payments.--The Secretary shall make incentive 
     payments in an amount and at a rate determined by the 
     Secretary to be necessary to encourage a producer to perform 
     1 or more practices.
       (f) Technical Assistance.--
       (1) In general.--The Secretary shall allocate funding under 
     the program for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided for a fiscal year.
       (2) Amount.--The allocated amount may vary according to--
       (A) the type of expertise required;
       (B) the quantity of time involved; and
       (C) other factors as determined appropriate by the 
     Secretary.
       (3) Limitation.--Funding for technical assistance under the 
     program shall not exceed the projected cost to the Secretary 
     of the technical assistance provided for a fiscal year.
       (4) Other authorities.--The receipt of technical assistance 
     under the program shall not affect the eligibility of the 
     producer to receive technical assistance under other 
     authorities of law available to the Secretary.
       (5) Incentive payments for technical assistance.--
       (A) In general.--A producer that is eligible to receive 
     technical assistance for a practice involving the development 
     of a comprehensive nutrient management plan may obtain an 
     incentive payment that can be used to obtain technical 
     assistance associated with the development of any component 
     of the comprehensive nutrient management plan.
       (B) Purpose.--The purpose of the payment shall be to 
     provide a producer the option of obtaining technical 
     assistance for developing any component of a comprehensive 
     nutrient management plan from a certified provider.
       (C) Payment.--The incentive payment shall be--
       (i) in addition to cost-share or incentive payments that a 
     producer would otherwise receive for structural practices and 
     land management practices;
       (ii) used only to procure technical assistance from a 
     certified provider that is necessary to develop any component 
     of a comprehensive nutrient management plan; and
       (iii) in an amount determined appropriate by the Secretary, 
     taking into account--
       (I) the extent and complexity of the technical assistance 
     provided;
       (II) the costs that the Secretary would have incurred in 
     providing the technical assistance; and
       (III) the costs incurred by the private provider in 
     providing the technical assistance.
       (D) Eligible practices.--The Secretary may determine, on a 
     case by case basis, whether the development of a 
     comprehensive nutrient management plan is eligible for an 
     incentive payment under this paragraph.
       (E) Certification by secretary.--
       (i) In general.--Only persons that have been certified by 
     the Secretary under section 1244(f)(3) shall be eligible to 
     provide technical assistance under this subsection.
       (ii) Quality assurance.--The Secretary shall ensure that 
     certified providers are capable of providing technical 
     assistance regarding comprehensive nutrient management in a 
     manner that meets the specifications and guidelines of the 
     Secretary and that meets the needs of producers under the 
     program.
       (F) Advance payment.--On the determination of the Secretary 
     that the proposed comprehensive nutrient management of a 
     producer is eligible for an incentive payment, the producer 
     may receive a partial advance of the incentive payment in 
     order to procure the services of a certified provider.
       (G) Final payment.--The final installment of the incentive 
     payment shall be payable to a producer on presentation to the 
     Secretary of documentation that is satisfactory to the 
     Secretary and that demonstrates--
       (i) completion of the technical assistance; and
       (ii) the actual cost of the technical assistance.
       (g) Modification or Termination of Contracts.--
       (1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with a 
     producer under this chapter if--
       (A) the producer agrees to the modification or termination; 
     and
       (B) the Secretary determines that the modification or 
     termination is in the public interest.
       (2) Involuntary termination.--The Secretary may terminate a 
     contract under this chapter if the Secretary determines that 
     the producer violated the contract.

     SEC. 1240C. EVALUATION OF OFFERS AND PAYMENTS.

       (a) In General.--In evaluating applications for technical 
     assistance, cost-share payments, and incentive payments, the 
     Secretary shall accord a higher priority to assistance and 
     payments that--
       (1) maximize environmental benefits per dollar expended; 
     and
       (2)(A) address national conservation priorities, 
     including--

[[Page 26691]]

       (i) meeting Federal, State, and local environmental 
     purposes focused on protecting air and water quality, 
     including assistance to production systems and practices that 
     avoid subjecting an operation to Federal, State, or local 
     environmental regulatory systems;
       (ii) applications from livestock producers using managed 
     grazing systems and other pasture and forage base systems;
       (iii) comprehensive nutrient management;
       (iv) water quality, particularly in im-paired watersheds;
       (v) soil erosion;
       (vi) air quality; or
       (vii) pesticide and herbicide management or reduction;
       (B) are provided in conservation priority areas established 
     under section 1230(c);
       (C) are provided in special projects under section 
     1243(f)(4) with respect to which State or local governments 
     have provided, or will provide, financial or technical 
     assistance to producers for the same conservation or 
     environmental purposes; or
       (D) an innovative technology in connection with a 
     structural practice or land management practice.

     SEC. 1240D. DUTIES OF PRODUCERS.

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

     SEC. 1240E. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

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

     SEC. 1240F. DUTIES OF THE SECRETARY.

       (a) To the extent appropriate, the Secretary shall assist a 
     producer in achieving the conservation and environmental 
     goals of a program plan by--
       (1) providing technical assistance in developing and 
     implementing the plan;
       (2) providing technical assistance, cost-share payments, or 
     incentive payments for developing and implementing 1 or more 
     practices, as appropriate;
       (3) providing the producer with information, education, and 
     training to aid in implementation of the plan; and
       (4) encouraging the producer to obtain technical 
     assistance, cost-share payments, or grants from other 
     Federal, State, local, or private sources.

     SEC. 1240G. LIMITATION ON PAYMENTS.

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

  SA 2633. Mr. BOND submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to be lie on the table; as follows:

       On page 761, strike line 12 and insert the following:

     SEC. 798E. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as 
     amended by section 905(b)) is amended by adding at the end 
     the following:

     ``SEC. 410. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) an institution of higher education;
       ``(B) a nonprofit organization; or
       ``(C) a consortium of for-profit institutions and 
     agricultural research institutions.
       ``(2) Institution of higher education.--The term 
     `institution of higher education' means--
       ``(A) a historically black land-grant college or 
     university;
       ``(B) a Hispanic-serving institution (as defined in section 
     1404 of the National, Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)); or
       ``(C) a tribal college or university that offers a 
     curriculum in agriculture or the biosciences.
       ``(b) Grant Program.--
       ``(1) In general.--The Secretary (acting through the 
     Foreign Agricultural Service) shall establish and administer 
     a program to make competitive grants to eligible entities to 
     develop agricultural biotechnology for developing countries.
       ``(2) Use of funds.--Funds provided to an eligible entity 
     under this section may be used for projects that use 
     biotechnology to--
       ``(A) enhance the nutritional content of agricultural 
     products that can be grown in developing countries;
       ``(B) increase the yield and safety of agricultural 
     products that can be grown in developing countries;
       ``(C) increase the yield of agricultural products that are 
     drought- and stress-resistant and that can be grown in 
     developing countries;
       ``(D) extend the growing range of crops that can be grown 
     in developing countries;
       ``(E) enhance the shelf-life of fruits and vegetables grown 
     in developing countries;
       ``(F) develop environmentally sustainable agricultural 
     products that can be grown in developing countries; and
       ``(G) develop vaccines to immunize against life-threatening 
     illnesses and other medications that can be administered by 
     consuming genetically-engineered agricultural products.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____


                          TITLE VIII--FORESTRY

  SA 2634. Mr. BOND submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of Title VII insert the following:

[[Page 26692]]

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as 
     amended by section 905(b)) is amended--
       (1) in subsection (c), paragraph (2)--
       (A) after sub-paragraph (F), by adding at the end the 
     following: ``(G) agricultural biotechnology research and 
     development for developing countries in cooperation with a 
     qualified institution in the developing country.'';
       (B) in sub-paragraph (E), by striking ``and''; and
       (C) in sub-paragraph (F), by striking the period at the end 
     and inserting ``; and''.
                                  ____

  SA 2635. Mr. BOND submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of Title VII insert the following:

     SEC. 798E. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       Title IV of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as 
     amended by section 905(b)) is amended by adding at the end 
     the following:

     ``SEC. 410. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND 
                   DEVELOPMENT FOR DEVELOPING COUNTRIES.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity' means--
       ``(A) an institution of higher education;
       ``(B) a nonprofit organization; or
       ``(C) a consortium of for-profit institutions and 
     agricultural research institutions.
       ``(2) Institution of higher education.--The term 
     `institution of higher education' means--
       ``(A) a historically black land-grant college or 
     university;
       ``(B) a Hispanic-serving institution (as defined in section 
     1404 of the National, Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)); or
       ``(C) a tribal college or university that offers a 
     curriculum in agriculture or the biosciences.
       ``(b) Grant Program.--
       ``(1) In general.--The Secretary (acting through the 
     Foreign Agricultural Service) shall establish and administer 
     a program to make competitive grants to eligible entities to 
     develop agricultural biotechnology for developing countries.
       ``(2) Use of funds.--Funds provided to an eligible entity 
     under this section may be used for projects that use 
     biotechnology to--
       ``(A) enhance the nutritional content of agricultural 
     products that can be grown in developing countries;
       ``(B) increase the yield and safety of agricultural 
     products that can be grown in developing countries;
       ``(C) increase the yield of agricultural products that are 
     drought- and stress-resistant and that can be grown in 
     developing countries;
       ``(D) extend the growing range of crops that can be grown 
     in developing countries;
       ``(E) enhance the shelf-life of fruits and vegetables grown 
     in developing countries;
       ``(F) develop environmentally sustainable agricultural 
     products that can be grown in developing countries; and
       ``(G) develop vaccines to immunize against life-threatening 
     illnesses and other medications that can be administered by 
     consuming genetically-engineered agricultural products.
       ``(c) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.''
                                  ____


                          TITLE VIII--FORESTRY

  SA 2636. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 165. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND; FOOD STAMP PROGRAM FUNDING 
                   INCREASES.

       (a) Restriction.--Section 194 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 945) is amended to read as follows:

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

       ``(a) Definition of Agricultural Commodity.--In this 
     section:
       ``(1) In general.--The term `agricultural commodity' has 
     the meaning given the term in section 102 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5602).
       ``(2) Exclusions.--The term `agricultural commodity' does 
     not include forage, livestock, timber, forest products, or 
     hay.
       ``(b) Commodities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, except as provided in paragraph (2), the 
     Secretary shall not provide a payment, loan, or other benefit 
     under this title to an owner or producer, with respect to 
     land or a loan commodity planted or considered planted on 
     land during a crop year unless the land has been planted, 
     considered planted, or devoted to an agricultural commodity 
     during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year.
       ``(2) Crop rotation.--Paragraph (1) shall not apply to an 
     owner or producer, with respect to any agricultural commodity 
     planted or considered planted, on land if the land--
       ``(A) has been planted, considered planted, or devoted to 
     an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(c) Crop Insurance.--Notwithstanding any provision of the 
     Federal Crop Insurance Act (7 U.S.C.1501 et seq.), the 
     Federal Crop Insurance Corporation shall not pay premium 
     subsidies or administrative costs of a reinsured company for 
     insurance regarding a crop insurance policy of a producer 
     under that Act unless, the land that is covered by the 
     insurance policy--
       ``(1) has been planted, considered planted, or devoted to 
     an agricultural commodity during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year; or
       ``(2)(A) has been planted, considered planted, or devoted 
     to an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(d) Conservation Reserve Land.--For purposes of this 
     section, land that is enrolled in the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C.3831 et seq.) shall be considered planted to an 
     agricultural commodity.''.
       (b) Food Stamp Program.--
       (1) Standard deduction.--Section 5(e)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2014(e)(1)) (as amended by section 413) 
     is amended by striking subparagraph (D) and inserting the 
     following:


       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2006;
       ``(ii) 8.5 percent for each of fiscal years 2007 and 2008;
       ``(iii) 9 percent for fiscal year 2009;
       ``(iv) 9.5 percent for fiscal year 2010; and
       ``(v) 10 percent for fiscal year 2011 and each fiscal year 
     thereafter.''.
       (2) Work requirement.--Section 6(o)(2) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2015(o)(2)) (as amended by section 
     421(a)(2)(A)) is amended by striking ``24-month period'' and 
     inserting ``12-month period (but in the case of each of 
     fiscal years 2002 and 2003, 24-month period)''.
                                  ____

  SA 2637. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 165. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND; FOOD STAMP PROGRAM FUNDING 
                   INCREASES.

       (a) Restriction.--Section 194 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 945) is amended to read as follows:

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

       ``(a) Definition of Agricultural Commodity.--In this 
     section:

[[Page 26693]]

       ``(1) In general.--The term `agricultural commodity' has 
     the meaning given the term in section 102 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5602).
       ``(2) Exclusions.--The term `agricultural commodity' does 
     not include forage, livestock, timber, forest products, or 
     hay.
       ``(b) Commodities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, except as provided in paragraph (2), the 
     Secretary shall not provide a payment, loan, or other benefit 
     under this title to an owner or producer, with respect to 
     land or a loan commodity planted or considered planted on 
     land during a crop year unless the land has been planted, 
     considered planted, or devoted to an agricultural commodity 
     during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year.
       ``(2) Crop rotation.--Paragraph (1) shall not apply to an 
     owner or producer, with respect to any agricultural commodity 
     planted or considered planted, on land if the land--
       ``(A) has been planted, considered planted, or devoted to 
     an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(c) Crop Insurance.--Notwithstanding any provision of the 
     Federal Crop Insurance Act (7 U.S.C.1501 et seq.), the 
     Federal Crop Insurance Corporation shall not pay premium 
     subsidies or administrative costs of a reinsured company for 
     insurance regarding a crop insurance policy of a producer 
     under that Act unless, the land that is covered by the 
     insurance policy--
       ``(1) has been planted, considered planted, or devoted to 
     an agricultural commodity during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year; or
       ``(2)(A) has been planted, considered planted, or devoted 
     to an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(d) Conservation Reserve Land.--For purposes of this 
     section, land that is enrolled in the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C.3831 et seq.) shall be considered planted to an 
     agricultural commodity.''.
       (b) Food Stamp Program.--
       (1) Exclusion of licensed vehicles from financial 
     resources.--
       (A) In general.--Section 5(g)(2) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(g)(2)) is amended by striking 
     subparagraph (C) and inserting the following:
       ``(C) Excluded vehicles.--Financial resources under this 
     paragraph shall not include--
       ``(i) 1 licensed vehicle per household; and
       ``(ii) a vehicle (and any other property, real or personal, 
     to the extent that the property is directly related to the 
     maintenance or use of the vehicle) if the vehicle is--

       ``(I) used to produce earned income;
       ``(II) necessary for the transportation of a physically 
     disabled household member; or
       ``(III) depended on by a household to carry fuel for 
     heating or water for home use and provides the primary source 
     of fuel or water, respectively, for the household.''.

       (B) Conforming amendment.--Section 17 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026) is amended by striking subsection 
     (h).
       (2) Nutrition assistance for elderly individuals.--
       (A) Restoration of eligibility.--Section 402(a)(2)(I) of 
     the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(I)) is 
     amended by striking ``who'' and all that follows and 
     inserting the following: ``who--
       ``(i) is lawfully residing in the United States; and
       ``(ii) is 65 years of age or older.''.
       (B) Conforming amendments.--
       (i) Section 421(d)(3) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(d)(3)) (as added by section 452(a)(2)(B)) is amended by 
     striking ``section 402(a)(2)(J)'' and inserting 
     ``subparagraph (I) or (J) of section 402(a)(2)''.
       (ii) Section 423(d) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1183a note; 
     Public Law 104-193) is amended by adding at the end the 
     following:
       ``(12) Benefits under the Food Stamp Act of 1977 (7 U.S.C. 
     2011 et seq.).''.
       (iii) Section 5(i)(2)(E) of the Food Stamp Act of 1977 (7 
     U.S.C. 2014(i)(2)(E)) (as amended by section 452(a)(2)(C)) is 
     amended by inserting before the period at the end the 
     following: ``or is 65 years of age or older''.
       (C) Applicability.--The amendments made by this paragraph 
     shall apply to fiscal year 2004 and each fiscal year 
     thereafter.
                                  ____

  SA 2638. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. 165. RESTRICTION OF COMMODITY AND CROP INSURANCE 
                   PAYMENTS, LOANS, AND BENEFITS TO PREVIOUSLY 
                   CROPPED LAND; FOOD STAMP PROGRAM FUNDING 
                   INCREASES.

       (a) Restriction.--Section 194 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 945) is amended to read as follows:

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

       ``(a) Definition of Agricultural Commodity.--In this 
     section:
       ``(1) In general.--The term `agricultural commodity' has 
     the meaning given the term in section 102 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5602).
       ``(2) Exclusions.--The term `agricultural commodity' does 
     not include forage, livestock, timber, forest products, or 
     hay.
       ``(b) Commodities.--
       ``(1) In general.--Notwithstanding any other provision of 
     this title, except as provided in paragraph (2), the 
     Secretary shall not provide a payment, loan, or other benefit 
     under this title to an owner or producer, with respect to 
     land or a loan commodity planted or considered planted on 
     land during a crop year unless the land has been planted, 
     considered planted, or devoted to an agricultural commodity 
     during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year.
       ``(2) Crop rotation.--Paragraph (1) shall not apply to an 
     owner or producer, with respect to any agricultural commodity 
     planted or considered planted, on land if the land--
       ``(A) has been planted, considered planted, or devoted to 
     an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(c) Crop Insurance.--Notwithstanding any provision of the 
     Federal Crop Insurance Act (7 U.S.C.1501 et seq.), the 
     Federal Crop Insurance Corporation shall not pay premium 
     subsidies or administrative costs of a reinsured company for 
     insurance regarding a crop insurance policy of a producer 
     under that Act unless, the land that is covered by the 
     insurance policy--
       ``(1) has been planted, considered planted, or devoted to 
     an agricultural commodity during--
       ``(A) at least 1 of the 5 crop years preceding the 2002 
     crop year; or
       ``(B) at least 3 of the 10 crop years preceding the 2002 
     crop year; or
       ``(2)(A) has been planted, considered planted, or devoted 
     to an agricultural commodity during at least 1 of the 20 crop 
     years preceding the 2002 crop year; and
       ``(B) has been maintained, and will continue to be 
     maintained, using long-term crop rotation practices, as 
     determined by the Secretary.
       ``(d) Conservation Reserve Land.--For purposes of this 
     section, land that is enrolled in the conservation reserve 
     program established under subchapter B of chapter 1 of 
     subtitle D of title XII of the Food Security Act of 1985 (16 
     U.S.C.3831 et seq.) shall be considered planted to an 
     agricultural commodity.''.
                                  ____

  SA 2639. Mr. SANTORUM (for himself, Mr. Durbin, Mr. Feingold, Mr. 
DeWine, Mr. Kohl, Mr. Hatch, Mrs. Clinton, and Mr. Jeffords) submitted 
an amendment intended to be proposed by him to the bill S. 1731, to 
strengthen the safety net for agricultural producers, to enhance 
resource conservation and rural development, to provide for farm 
credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; which 
was ordered to lie on the table; as follows:

       Beginning on page 2, strike line 11 and all that follows 
     through page 4, line 21, and insert the following:
       ``(C) for the socialization of dogs intended for sale as 
     pets with other dogs and people, through compliance with a 
     standard developed by the Secretary based on the 
     recommendations of veterinarians and animal welfare and 
     behavior experts that--
       ``(i) identifies actions that dealers and inspectors shall 
     take to ensure adequate socialization; and

[[Page 26694]]

       ``(ii) identifies a set of behavioral measures that 
     inspectors shall use to evaluate adequate socialization; and
       ``(D) for addressing the initiation and frequency of 
     breeding of female dogs so that a female dog is not--
       ``(i) bred before the female dog has reached at least 1 
     year of age; and
       ``(ii) whelped more frequently than 3 times in any 24-month 
     period.''.
       (b) Suspension or Revocation of License, Civil Penalties, 
     Judicial Review, and Criminal Penalties.--Section 19 of the 
     Animal Welfare Act (7 U.S.C. 2149) is amended--
       (1) by striking ``Sec. 19. (a) If the Secretary'' and 
     inserting the following:

     ``SEC. 19. SUSPENSION OR REVOCATION OF LICENSE, CIVIL 
                   PENALTIES, JUDICIAL REVIEW, AND CRIMINAL 
                   PENALTIES.

       ``(a) Suspension or Revocation of License.--
       ``(1) In general.--If the Secretary'';
       (2) in subsection (a)--
       (A) in paragraph (1) (as designated by paragraph (1)), by 
     striking ``if such violation'' and all that follows and 
     inserting ``if the Secretary determines that 1 or more 
     violations have occurred.''; and
       (B) by adding at the end the following:
       ``(2) License revocation.--If the Secretary finds that any 
     person licensed as a dealer, exhibitor, or operator of an 
     auction sale subject to section 12, has committed a serious 
     violation (as determined by the Secretary) of any rule, 
     regulation, or standard governing the humane handling, 
     transportation, veterinary care, housing, breeding, 
     socialization, feeding, watering, or other humane treatment 
     of dogs under section 12 or 13 on 3 or more separate 
     inspections within any 8-year period, the Secretary shall--
       ``(A) suspend the license of the person for 21 days; and
       ``(B) after providing notice and a hearing not more than 30 
     days after the third violation is noted on an inspection 
     report, revoke the license of the person unless the Secretary 
     makes a written finding that revocation is unwarranted 
     because of extraordinary extenuating circumstances.'';
                                  ____

  SA 2640. Mr. DASCHLE (for Mr. Kennedy (for himself and Mr. Gregg)) 
proposed an amendment to the concurrent resolution H. Con. Res. 289, 
directing the Clerk of the House of Representatives to make technical 
corrections in the enrollment of the bill H.R. 1; as follows:

       Strike all after the resolving clause and insert the 
     following: ``That in the enrollment of the bill (H.R. 1) to 
     close the achievement gap with accountability, flexibility, 
     and choice, so that no child is left behind, the Clerk of the 
     House of Representatives shall make the following 
     corrections:
       On page 1, in section 2 of the bill, insert the following 
     after the item for section 5:

``Sec. 6. Table of contents of Elementary and Secondary Education Act 
              of 1965.''.

       On page 1, in the item for section 401 of the bill, strike 
     ``century'' and insert the following: ``Century''.
       On page 1, strike the item for section 701 of the bill and 
     insert the following:

Sec. 701. Indians, Native Hawaiians, and Alaska Natives.

       On page 2, in the item for section 1044 of the bill, strike 
     ``school'' and insert the following: ``School''.
       On page 4, in the item for section 1121, strike 
     ``secretary'' and ``interior'' and insert the following: 
     ``Secretary'' and ``Interior''.
       On page 5, in the item for section 1222, strike ``early 
     reading first'' and insert the following: ``Early Reading 
     First''.
       On page 6, in the item for section 1504, strike ``Close 
     up'' and insert the following: ``Close Up''.
       On page 6, strike the item for section 1708.
       On page 12, in the item for section 5441, strike ``Learning 
     Communities'' and insert the following: ``learning 
     communities''.
       On page 14, in the item for section 5596, strike 
     ``mination'' and insert the following: ``Termination''.
       On page 25, line 31, strike ``Any'' and insert the 
     following: ``For any''.
       On page 25, line 32, after ``part'' insert the following: 
     ``, the State educational agency''.
       On page 25, line 33, after ``developed'' insert the 
     following: ``by the State educational agency,''.
       On page 30, line 3, after ``students'' insert the 
     following: ``(defined as the percentage of students who 
     graduate from secondary school with a regular diploma in the 
     standard number of years)''.
       On page 33, after line 35, insert the following:
       ``(K) Accountability for charter schools.--The 
     accountability provisions under this Act shall be overseen 
     for charter schools in accordance with State charter school 
     law.
       On page 34, lines 2, 15, and 31, strike ``State'' and 
     insert the following: ``State educational agency''.
       On page 38, line 29, strike ``section 6204(c)''and insert 
     the following: ``section 6113(a)(2)''.
       On page 39, line 11, strike ``(2)(i)(I)'' and insert the 
     following: ``(2)(I)(i)''.
       On page 40, line 22, strike ``State'' and insert the 
     following: ``State educational agency''.
       On page 41, lines 28, 33 (the 2d place it appears), and 35 
     strike ``State'' and insert the following: ``State 
     educational agency''.
       On page 42, lines 8, 19, 23 (each place it appears), and 
     27, strike ``State'' and insert the following: ``State 
     educational agency''.
       On page 44, lines 24 and 35, strike ``State'' and insert 
     the following: ``State educational agency''.
       On page 46, lines 6 and 7, strike ``A State shall revise 
     its State plan if' and insert the following: ``A State plan 
     shall be revised by the State educational agency if it is''.
       On page 46, lines 12 and 13, strike ``by the State, as 
     necessary,'' and insert the following: ``as necessary by the 
     State educational agency''.
       On page 46, lines 15 and 16, strike ``If the State makes 
     significant changes to its State plan'' and insert the 
     following: ``If significant changes are made to a State's 
     plan''.
       On page 46, lines 19 and 20, strike ``the State shall 
     submit such information'' and insert the following: ``such 
     information shall be submitted''.
       On page 48, line 23, strike ``(b)(2)(B)(vii)'' and insert 
     the following: ``(b)(2)(C)(vi)''.
       On page 50, lines 2, 12, and 18, strike ``State'' and 
     insert the following: ``State educational agency''.
       On page 52, line 9, strike ``State'' and insert the 
     following: ``State educational agency''.
       On page 62, lines 3 and 4, strike ``baseline year described 
     in section 1111(b)(2)(E)(ii)'' and insert the following: 
     ``the end of the 2001-2002 school year''.
       On page 90, line 10, strike ``defined by the State'' and 
     insert the following: ``set out in the State's plan''.
       On page 94, line 32, strike ``State'' the first place it 
     appears and insert the following: ``State educational 
     agency''.
       On page 104, line 25, insert the following: ``identify the 
     local educational agency for improvement or'' before 
     ``subject the local''.
       On page 120, line 28, after ``teachers'' insert the 
     following: ``in those schools''.
       On page 130, line 34, strike ``subsection (b)'' and insert 
     the following: ``subsection (c)''.
       On page 185, lines 24 and 25, strike ``fully qualified'' 
     and insert the following: ``highly qualified''.
       On page 227, line 16, strike ``subsection (c)(1)(F)'' and 
     insert the following: ``subsection (c)(1)''.
       On page 227, line 17, strike ``9302'' and insert the 
     following: ``9305''.
       On page 274, line 23, strike ``States'' and insert the 
     following: ``State''.
       On page 274, line 33, strike ``1111(b)'' and insert the 
     following: ``1111(h)(2)''.
       On page 275, line 19, insert a period after ``school 
     year''.
       On page 276, lines 20 and 25, strike ``supplemental 
     services'' and insert the following: ``supplemental 
     educational services''.
       On page 283, line 25, strike ``and'' after the semicolon.
       On page 283, line 31, strike ``(d)'' and insert the 
     following: ``(e)''.
       On page 284, line 1, strike ``Congress''.
       On page 284, line 6, strike ``(e)'' and insert the 
     following: ``(f)''.
       On page 290, lines 14 and 22, strike ``section'' and insert 
     the following: ``part''.
       On page 293, line 4, strike ``section'' and insert the 
     following: ``part''.
       On page 556, line 1, strike ``Definitions'' and insert the 
     following: ``Definition''.
       On page 599, line 23, strike ``the No Child Left Behind Act 
     of 2001'' and insert the following: ``under any title of this 
     Act''.
       On page 600, line 12, strike ``the No Child Left Behind Act 
     of 2001'' and insert the following: ``under any title of this 
     Act''.
       On page 601, line 4, strike ``the No Child Left Behind Act 
     of 2001'' and insert the following: ``under any title of this 
     Act''.
       On page 601, line 9, strike ``Definitions'' and insert the 
     following: ``Definition''.
       On page 601, line 10, strike ``terms `firearm' and `school' 
     have'' and insert the following: ``term `school' has''.
       On page 620, line 22, strike ``the No Child Left Behind Act 
     of 2001'' and insert the following: ``under any title of this 
     Act''.
       On page 635, line 14, strike ``(b)'' and insert the 
     following: ``(c)''.
       On page 635, line 20, strike ``(c)'' and insert the 
     following: ``(d)''.
       On page 781, line 32, insert closing quotation marks and a 
     period after the period.
       On page 873, line 25, amend the heading for section 701 to 
     read as follows:

     SEC. 701 INDIANS, NATIVE HAWAIIANS, AND ALASKA NATIVES.

       On page 955, after line 6, insert the following:

                      TITLE IX--GENERAL PROVISIONS

     SEC. 901. GENERAL PROVISIONS.

       Title IX (20 U.S.C. 7801 et seq.) is amended to read as 
     follows:
       On page 1004, at the end of line 2, insert closed quotation 
     marks and a period.
                                  ____

  SA 2641. Mr. LUGAR submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and

[[Page 26695]]

fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Strike title IV and insert the following:

                      TITLE IV--NUTRITION PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Food Stamp Simplification 
     Act of 2001''.

                     Subtitle A--Food Stamp Program

     SEC. 411. CATEGORICAL ELIGIBILITY FOR RECIPIENTS OF CASH 
                   ASSISTANCE.

       Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended--
       (1) in the second sentence, by striking ``receives 
     benefits'' and inserting ``receives cash assistance''; and
       (2) in the third sentence, by striking ``receives 
     benefits'' and inserting ``receives cash assistance''.

     SEC. 412. DISREGARDING OF INFREQUENT AND UNANTICIPATED 
                   INCOME.

       Section 5(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)(2)) is amended by striking ``$30'' and inserting 
     ``$100''.

     SEC. 413. SIMPLIFIED TREATMENT OF INDIVIDUALS COMPLYING WITH 
                   CHILD SUPPORT ORDERS.

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

     SEC. 414. COORDINATED AND SIMPLIFIED DEFINITION OF INCOME.

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

     SEC. 415. EXCLUSION OF INTEREST AND DIVIDEND INCOME.

       Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) (as amended by section 414(2)) is amended by 
     inserting before the period at the end the following: ``, and 
     (19) any interest or dividend income received by a member of 
     the household''.

     SEC. 416. ALIGNMENT OF STANDARD DEDUCTION WITH POVERTY LINE.

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking paragraph (1) and inserting 
     the following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow a standard deduction for 
     each household that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of the income standard of eligibility 
     established under subsection (c)(1); but
       ``(ii) not less than the minimum deduction specified in 
     subparagraph (E).
       ``(B) Guam.--The Secretary shall allow a standard deduction 
     for each household in Guam that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for fiscal year 2002;
       ``(ii) 8.5 percent for each of fiscal years 2003 through 
     2005;
       ``(iii) 9 percent for each of fiscal years 2006 through 
     2008;
       ``(iv) 9.5 percent for each of fiscal years 2009 and 2010; 
     and
       ``(v) 10 percent for each fiscal year thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.

     SEC. 417. SIMPLIFIED DEPENDENT CARE DEDUCTION.

       Section 5(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(3)) is amended by adding at the end the following:
       ``(C) Standard dependent care allowances.--
       ``(i) Establishment of allowances.--

       ``(I) In general.--In determining the dependent care 
     deduction under this paragraph, in lieu of requiring the 
     household to establish the actual dependent care costs of the 
     household, a State agency may use standard dependent care 
     allowances established under subclause (II) for each 
     dependent for whom the household incurs costs for care.
       ``(II) Amendment to state plan.--A State agency that elects 
     to use standard dependent care allowances under subclause (I) 
     shall submit for approval by the Secretary an amendment to 
     the State plan of operation under section 11(d) that--

       ``(aa) describes the allowances that the State agency will 
     use; and
       ``(bb) includes supporting documentation.
       ``(ii) Household election.--

       ``(I) In general.--Except as provided in clause (iii), a 
     household may elect to have the dependent care deduction of 
     the household based on actual dependent care costs rather 
     that the allowances established under clause (i).
       ``(II) Frequency.--The Secretary may by regulation limit 
     the frequency with which households may make the election 
     described in subclause (I) or reverse the election.

       ``(iii) Mandatory dependent care allowances.--The State 
     agency may make the use of standard dependent care allowances 
     established under clause (i) mandatory for all households 
     that incur dependent care costs.''.

     SEC. 418. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

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

[[Page 26696]]

       ``(ii) Ineligibility.--The State agency may make a 
     household with extremely low shelter costs ineligible for the 
     alternative deduction under clause (i).''.
       (b) Conforming Amendments.--Section 5 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014) is amended--
       (1) in subsection (e)--
       (A) by striking paragraph (5); and
       (B) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively; and
       (2) in subsection (k)(4)(B), by striking ``subsection 
     (e)(7)'' and inserting ``subsection (e)(6)''.

     SEC. 419. SIMPLIFIED DETERMINATION OF UTILITY COSTS.

       Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as 
     amended by section 418(b)(1)(B)) is amended--
       (1) in subclause (I)(bb), by inserting ``(without regard to 
     subclause (III))'' after ``Secretary finds''; and
       (2) by adding at the end the following:

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

     SEC. 420. SIMPLIFIED DETERMINATION OF EARNED INCOME.

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

     SEC. 421. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) (as amended by section 420) is amended by adding 
     at the end the following:
       ``(D) Simplified determination of deductions.--
       ``(i) In general.--Except as provided in clause (ii), for 
     the purposes of subsection (e), a State agency may elect to 
     disregard until the next redetermination of eligibility under 
     section 11(e)(4) 1 or more types of changes in the 
     circumstances of a household that affect the amount of 
     deductions the household may claim under subsection (e).
       ``(ii) Changes that may not be disregarded.--Under clause 
     (i), a State agency may not disregard--

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

     SEC. 422. SIMPLIFIED RESOURCE ELIGIBILITY LIMIT.

       Section 5(g)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)(1)) is amended by striking ``a member who is 60 years 
     of age or older'' and inserting ``an elderly or disabled 
     member''.

     SEC. 423. EXCLUSION OF LICENSED VEHICLES FROM FINANCIAL 
                   RESOURCES.

       (a) In General.--Section 5(g)(2) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(g)(2)) is amended--
       (1) in subparagraph (B)--
       (A) in clause (iii), by adding ``and'' at the end;
       (B) by striking clause (iv); and
       (C) by redesignating clause (v) as clause (iv);
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Excluded vehicles.--The Secretary shall exclude from 
     financial resources any licensed vehicle used for household 
     transportation.''; and
       (3) by striking subparagraph (D).
       (b) Conforming Amendment.--Section 17 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026) is amended by striking subsection 
     (h).

     SEC. 424. EXCLUSION OF RETIREMENT ACCOUNTS FROM FINANCIAL 
                   RESOURCES.

       Section 5(g)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)(2)(B)) (as amended by section 423(a)(1)) is amended 
     by striking clause (iv) and inserting the following:
       ``(iv) any savings account (other than a retirement account 
     (including an individual account)).''.

     SEC. 425. COORDINATED AND SIMPLIFIED DEFINITION OF RESOURCES.

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

     SEC. 426. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

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

     SEC. 427. SIMPLIFIED REPORTING SYSTEMS.

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

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

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

     SEC. 428. SIMPLIFIED TIME LIMIT.

       (a) In General.--Section 6(o) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(o)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``36-month'' and inserting ``12-month'';
       (B) by striking ``3'' and inserting ``6''; and
       (C) in subparagraph (D), by striking ``(4), (5), or (6)'' 
     and inserting ``(4), or (5)'';
       (2) by striking paragraph (5);
       (3) in paragraph (6)(A)(ii)--
       (A) in subclause (III), by adding ``and'' at the end;
       (B) in subclause (IV), by striking ``; and'' and inserting 
     a period; and
       (C) by striking subclause (V); and
       (4) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively.
       (b) Implementation of Amendments.--For the purpose of 
     implementing the amendments made by subsection (a), a State 
     agency shall disregard any period during which an individual 
     received food stamp benefits before the effective date of 
     this title.

     SEC. 429. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

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

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

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

     SEC. 430. COST-NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

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

     SEC. 431. SIMPLIFIED PROCEDURES FOR RESIDENTS OF CERTAIN 
                   GROUP FACILITIES.

       (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
     U.S.C. 2017) is amended by adding at the end the following:
       ``(f) Simplified Procedures for Residents of Certain Group 
     Facilities.--
       ``(1) In general.--At the option of the State agency, 
     allotments for residents of facilities described in 
     subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
     determined and issued under this subsection in lieu of 
     subsection (a).
       ``(2) Amount of allotment.--The allotment for each eligible 
     resident described in

[[Page 26697]]

     paragraph (1) shall be calculated in accordance with 
     standardized procedures established by the Secretary that 
     take into account the allotments typically received by 
     residents of facilities described in paragraph (1).
       ``(3) Issuance of allotment.--
       ``(A) In general.--The State agency shall issue an 
     allotment determined under this subsection to the 
     administration of a facility described in paragraph (1) as 
     the authorized representative of the residents of the 
     facility.
       ``(B) Adjustment.--The Secretary shall establish procedures 
     to ensure that a facility described in paragraph (1) does not 
     receive a greater proportion of a resident's monthly 
     allotment than the proportion of the month during which the 
     resident lived in the facility.
       ``(4) Departures of covered residents.--
       ``(A) Notification.--Any facility described in paragraph 
     (1) that receives an allotment for a resident under this 
     subsection shall--
       ``(i) notify the State agency promptly on the departure of 
     the resident; and
       ``(ii) notify the resident, before the departure of the 
     resident, that the resident--

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

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

     SEC. 432. REDEMPTION OF BENEFITS THROUGH GROUP LIVING 
                   ARRANGEMENTS.

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

     SEC. 433. SIMPLIFIED DETERMINATIONS OF CONTINUING 
                   ELIGIBILITY.

       (a) In General.--Section 11(e) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(e)) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4)(A) that the State agency shall periodically require 
     each household to cooperate in a redetermination of the 
     eligibility of the household.
       ``(B) A redetermination under subparagraph (A) shall--
       ``(i) be based on information supplied by the household; 
     and
       ``(ii) conform to standards established by the Secretary.
       ``(C) The interval between redeterminations of eligibility 
     under subparagraph (A) shall not exceed the eligibility 
     review period;'' and
       (2) in paragraph (10)--
       (A) by striking ``within the household's certification 
     period''; and
       (B) by striking ``or until'' and all that follows through 
     ``occurs earlier''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended--
       (A) by striking ``Certification period'' and inserting 
     ``Eligibility review period''; and
       (B) by striking ``certification period'' each place it 
     appears and inserting ``eligibility review period''.
       (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (A) in subsection (d)(2), by striking ``in the 
     certification period which'' and inserting ``that''; and
       (B) in subsection (e) (as amended by section 
     1218(b)(1)(B))--
       (i) in paragraph (5)(B)(ii)--

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

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

     SEC. 434. SIMPLIFIED APPLICATION PROCEDURES FOR THE ELDERLY 
                   AND DISABLED.

       (a) In General.--Section 11(i) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(i)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``income shall be informed'' and inserting 
     the following: ``income shall be--
       ``(A) informed'';
       (B) by striking ``program and be assisted'' and inserting 
     the following: ``program;
       ``(B) assisted''; and
       (C) by striking ``office and be certified'' and inserting 
     the following: ``office; and
       ``(C) certified''; and
       (2) by adding at the end the following:
       ``(3) Dual-purpose applications.--
       ``(A) In general.--Under regulations promulgated by the 
     Secretary after consultation with the Commissioner of Social 
     Security, a State agency may enter into a memorandum of 
     understanding with the Commissioner under which an 
     application for supplemental security income benefits under 
     title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) 
     from a household composed entirely of applicants for or 
     recipients of those benefits shall also be considered to be 
     an application for benefits under the food stamp program.
       ``(B) Certification; reporting requirements.--A household 
     covered by a memorandum of understanding under subparagraph 
     (A)--

[[Page 26698]]

       ``(i) shall be certified based exclusively on information 
     provided to the Commissioner, including such information as 
     the Secretary shall require to be collected under the terms 
     of any memorandum of understanding under this paragraph; and
       ``(ii) shall not be subject to any reporting requirement 
     under section 6(c).
       ``(C) Exceptions to value of allotment.--The Secretary 
     shall provide by regulation for such exceptions to section 
     8(a) as are necessary because a household covered by a 
     memorandum of understanding under subparagraph (A) did not 
     complete an application under subsection (e)(2).
       ``(D) Coverage.--In accordance with standards promulgated 
     by the Secretary, a memorandum of understanding under 
     subparagraph (A) need not cover all classes of applicants and 
     recipients referred to in subparagraph (A).
       ``(E) Exemption from certain application procedures.--In 
     the case of any member of a household covered by a memorandum 
     of understanding under subparagraph (A), the Commissioner 
     shall not be required to comply with--
       ``(i) subparagraph (B) or (C) of paragraph (1); or
       ``(ii) subsection (j)(1)(B).
       ``(F) Right to apply under regular program.--The Secretary 
     shall ensure that each household covered by a memorandum of 
     understanding under subparagraph (A) is informed that the 
     household may--
       ``(i)(I) submit an application under subsection (e)(2); and
       ``(II) have the eligibility and value of the allotment of 
     the household under the food stamp program determined without 
     regard to this paragraph; or
       ``(ii) decline to participate in the food stamp program.
       ``(G) Transition provision.--Notwithstanding the 
     requirement for the promulgation of regulations under 
     subparagraph (A), the Secretary may approve a request from a 
     State agency to enter into a memorandum of understanding in 
     accordance with this paragraph during the period--
       ``(i) beginning on the date of enactment of this paragraph; 
     and
       ``(ii) ending on the earlier of--

       ``(I) the date of promulgation of the regulations; or
       ``(II) the date that is 3 years after the date of enactment 
     of this paragraph.''.

       (b) Conforming Amendments.--Section 11(j)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2020(j)(1)) is amended--
       (1) by striking ``shall be informed'' and inserting the 
     following: ``shall be--
       ``(A) informed''; and
       (2) by striking ``program and informed'' and inserting the 
     following: ``program; and
       ``(B) informed''.

     SEC. 435. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(s) Transitional Benefits Option.--
       ``(1) In general.--A State agency may provide transitional 
     food stamp benefits to a household that ceases to receive 
     cash assistance under a State program funded under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.).
       ``(2) Transitional benefits period.--Under paragraph (1), a 
     household may continue to receive food stamp benefits for a 
     period of not more than 6 months after the date on which cash 
     assistance is terminated.
       ``(3) Amount of benefits.--During the transitional benefits 
     period under paragraph (2), a household shall receive an 
     amount of food stamp benefits equal to the allotment received 
     in the month immediately preceding the date on which cash 
     assistance was terminated, adjusted for--
       ``(A) the change in household income as a result of the 
     termination of cash assistance; and
       ``(B) any changes in circumstances that may result in an 
     increase in the food stamp allotment of the household and 
     that the household elects to report.
       ``(4) Determination of future eligibility.--In the final 
     month of the transitional benefits period under paragraph 
     (2), the State agency may--
       ``(A) require the household to cooperate in a 
     redetermination of eligibility; and
       ``(B) initiate a new eligibility review period for the 
     household without regard to whether the preceding eligibility 
     review period has expired.
       ``(5) Limitation.--A household shall not be eligible for 
     transitional benefits under this subsection if the 
     household--
       ``(A) loses eligibility under section 6;
       ``(B) is sanctioned for a failure to perform an action 
     required by Federal, State, or local law relating to a cash 
     assistance program described in paragraph (1); or
       ``(C) is a member of any other category of households 
     designated by the State agency as ineligible for transitional 
     benefits.''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by adding at the end the following: ``The 
     limits specified in this section may be extended until the 
     end of any transitional benefit period established under 
     section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 436. QUALITY CONTROL.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025 c) is amended--
       (1) by striking ``(c)(1) The'' and all that follows through 
     the end of paragraph (1) and inserting the following:
       ``(c) Quality Control.--
       ``(1) In general.--The food stamp program shall include a 
     system to enhance payment accuracy that has the following 
     elements:
       ``(A) Corrective action plans.--The Secretary shall foster 
     management improvements by the States by requiring State 
     agencies to develop and implement corrective action plans to 
     reduce payment errors.
       ``(B) Investigation and initial sanctions.--
       ``(i) Investigation.--Except as provided under subparagraph 
     (C), for any fiscal year in which the Secretary determines 
     that a 95 percent statistical probability exists that the 
     payment error rate of a State agency exceeds the national 
     performance measure for payment error rates announced under 
     paragraph (6) by more than 1 percentage point, other than for 
     good cause shown, the Secretary shall investigate the 
     administration by the State agency of the food stamp program 
     unless the Secretary determines that sufficient information 
     is already available to review the administration by the 
     State agency.
       ``(ii) Initial sanctions.--If an investigation under clause 
     (i) results in a determination that the State agency has been 
     seriously negligent (as determined under standards 
     promulgated by the Secretary), the State agency shall pay the 
     Secretary an amount that reflects the extent of such 
     negligence (as determined under standards promulgated by the 
     Secretary), not to exceed 5 percent of the amount provided to 
     the State agency under subsection (a) for the fiscal year.
       ``(C) Additional sanctions.--If, for any fiscal year, the 
     Secretary determines that a 95 percent statistical 
     probability exists that the payment error rate of a State 
     agency exceeds the national performance measure for payment 
     error rates announced under paragraph (6) by more than 1 
     percentage point, other than for good cause shown, and that 
     the State agency was sanctioned under this paragraph or was 
     the subject of an investigation or review under subparagraph 
     (B)(i) for each of the 2 immediately preceding fiscal years, 
     the State agency shall pay to the Secretary an amount equal 
     to the product obtained by multiplying--
       ``(i) the value of all allotments issued by the State 
     agency in the fiscal year;
       ``(ii) the lesser of--

       ``(I) the ratio that--

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

       ``(II) 1; and

       ``(iii) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year.'';
       (2) in paragraph (2)(A), by inserting before the semicolon 
     the following: ``, as adjusted downward as appropriate under 
     paragraph (10)'';
       (3) in the first sentence of paragraph (4), by striking ``, 
     enhanced administrative funding,'' and all that follows and 
     inserting ``under this subsection, high performance bonus 
     payment under paragraph (11), or claim for payment error 
     under paragraph (1).'';
       (4) in the first sentence of paragraph (5), by striking 
     ``to establish'' and all that follows and inserting the 
     following: ``to establish the payment error rate for the 
     State agency for the fiscal year, to comply with paragraph 
     (10), and to determine the amount of any high performance 
     bonus payment of the State agency under paragraph (11) or 
     claim under paragraph (1).'';
       (5) in the first sentence of paragraph (6), by striking 
     ``incentive payments or claims pursuant to paragraphs (1)(A) 
     and (1)(C),'' and inserting ``claims under paragraph (1),''; 
     and
       (6) by adding at the end the following:
       ``(10) Adjustments of payment error rate.--
       ``(A) In general.--
       ``(i) Fiscal year 2002.--Subject to clause (ii), for fiscal 
     year 2002, in applying paragraph (1), the Secretary shall 
     adjust the payment error rate determined under paragraph 
     (2)(A) as necessary to eliminate any increases in errors that 
     result from the State agency's serving a higher percentage of 
     households with earned income, households with 1 or more 
     members who are not United States citizens, or both, than the 
     lesser of, as the case may be--

       ``(I) the percentage of households of the corresponding 
     type that receive food stamps nationally; or
       ``(II) the percentage of--

       ``(aa) households with earned income that received food 
     stamps in the State in fiscal year 1992; or

[[Page 26699]]

       ``(bb) households with members who are not United States 
     citizens that received food stamps in the State in fiscal 
     year 1998.
       ``(ii) Expanded applicability to state agencies subject to 
     sanctions.--In the case of a State agency subject to 
     sanctions for fiscal year 2001 or any fiscal year thereafter 
     under paragraph (1), the adjustments described in clause (i) 
     shall apply to the State agency for the fiscal year.
       ``(B) Continuation or modification of adjustments.--For 
     fiscal year 2003 and each fiscal year thereafter, the 
     Secretary may determine whether the continuation or 
     modification of the adjustments described in subparagraph 
     (A)(i) or the substitution of other adjustments is most 
     consistent with achieving the purposes of this Act.''.
       (b) Conforming Amendment.--Section 22(h) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2031(h)) is amended by striking the 
     last sentence.
       (c) Applicability.--Except as otherwise provided in the 
     amendments made by subsection (a), the amendments made by 
     subsection (a) shall apply to fiscal year 2001 and each 
     fiscal year thereafter.

     SEC. 437. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE 
                   MEASURES.

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

     SEC. 438. BONUSES FOR STATES THAT DEMONSTRATE HIGH 
                   PERFORMANCE.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) (as amended by section 436(a)(6)) is 
     amended--
       (1) in the first sentence of paragraph (1), by striking 
     ``enhanced administrative funding to States with the lowest 
     error rates.'' and inserting ``bonus payments to States that 
     demonstrate high levels of performance.''; and
       (2) by adding at the end the following:
       ``(11) High performance bonus payments.--
       ``(A) In general.--For each fiscal year, the Secretary 
     shall--
       ``(i) measure the performance of each State agency with 
     respect to each of the performance measures specified in 
     subparagraph (B); and
       ``(ii) subject to subparagraph (D), make high performance 
     bonus payments to the State agencies with the highest 
     achievement with respect to those performance measures.
       ``(B) Performance measures.--The performance measures 
     specified in this subparagraph are--
       ``(i)(I) the greatest dollar amount of total claims 
     collected in the fiscal year as a proportion of the 
     overpayment dollar amount in the previous fiscal year; and
       ``(II) the greatest percentage point improvement under 
     clause (i)(I) from the previous fiscal year to the fiscal 
     year;
       ``(ii) the greatest improvement from the previous fiscal 
     year to the fiscal year in the ratio, expressed as a 
     percentage, that--

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

       ``(aa) have incomes less than 130 percent of the poverty 
     line (as defined in section 673 of the Community Services 
     Block Grant Act (42 U.S.C. 9902));
       ``(bb) are eligible for food stamp benefits; and
       ``(cc) receive food stamps benefits; bears to

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

       ``(aa) have incomes less than 130 percent of the poverty 
     line (as so defined); and
       ``(bb) are eligible for food stamp benefits;
       ``(iii) the lowest overpayment error rate;
       ``(iv) the greatest percentage point improvement from the 
     previous fiscal year to the fiscal year in the overpayment 
     error rate;
       ``(v) the lowest negative error rate;
       ``(vi) the greatest percentage point improvement from the 
     previous year to the fiscal year in the negative error rate;
       ``(vii) the lowest underpayment error rate;
       ``(viii) the greatest percentage point improvement from the 
     previous year to the fiscal year in the underpayment error 
     rate;
       ``(ix) the greatest percentage of new applications 
     processed within the deadlines established under paragraphs 
     (3) and (9) of section 11(e); and
       ``(x) the least average period of time needed to process 
     applications under paragraphs (3) and (9) of section 11(e).
       ``(C) High performance bonus payments.--
       ``(i) Definition of caseload.--In this subparagraph, the 
     term `caseload' has the meaning given the term in section 
     6(o)(5)(A).
       ``(ii) Amount of payments.--

       ``(I) In general.--For each fiscal year, the Secretary 
     shall--

       ``(aa) make 1 high performance bonus payment of $10,000,000 
     for each of the 10 performance measures under subparagraph 
     (B); and
       ``(bb) allocate the high performance bonus payment with 
     respect to each performance measure in accordance with 
     subclauses (II) and (III).

       ``(II) Payment for performance measure concerning claims 
     collected.--For each fiscal year, the Secretary shall 
     allocate the high performance bonus payment made for the 
     performance measure under subparagraph (B)(i) among the 20 
     State agencies with the highest performance in the 
     performance measure in the ratio that--

       ``(aa) the caseload of each such State agency; bears to
       ``(bb) the caseloads of all such State agencies.

       ``(III) Payments for other performance measures.--For each 
     fiscal year, the Secretary shall allocate the high 
     performance bonus payment made for the performance measure 
     under each of clauses (ii) through (x) of subparagraph (B) 
     among the 10 State agencies with the highest performance in 
     the performance measure in the ratio that--

       ``(aa) the caseload of each such State agency; bears to
       ``(bb) the caseloads of all such State agencies.
       ``(iii) Determination of highest performers.--

       ``(I) In general.--In determining the highest performers 
     under clause (ii), the Secretary shall calculate applicable 
     percentages to 2 decimal places.
       ``(II) Determination in event of a tie.--If, under 
     subclause (I), 2 or more State agencies have the same 
     percentage with respect to a performance measure, the 
     Secretary shall calculate the percentage for the performance 
     measure to as many decimal places as are necessary to 
     determine which State agency has the greatest percentage.

       ``(D) Limitations for state agencies subject to 
     sanctions.--If, for any fiscal year, a State agency is 
     subject to a sanction under paragraph (1)--
       ``(i) the State agency shall not be eligible for a high 
     performance bonus payment under clause (iii), (iv), (vii), or 
     (viii) of subparagraph (B) for the fiscal year; and
       ``(ii) the State agency shall not receive a high 
     performance bonus payment for which the State agency is 
     otherwise eligible under this paragraph for the fiscal year 
     until the obligation of the State agency under the sanction 
     has been satisfied (as determined by the Secretary).
       ``(E) Payments not subject to judicial review.--A 
     determination by the Secretary whether, and in what amount, 
     to make a high performance bonus payment under this paragraph 
     shall not be subject to judicial review.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to fiscal year 2003 and each fiscal year 
     thereafter.

     SEC. 439. SIMPLIFIED FUNDING RULES FOR EMPLOYMENT AND 
                   TRAINING PROGRAMS.

       (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``, to remain available until expended,''; 
     and
       (B) by striking clause (vii) and inserting the following:
       ``(vii) to remain available until expended--

       ``(I) for fiscal year 2002, $122,000,000;
       ``(II) for fiscal year 2003, $129,000,000;
       ``(III) for fiscal year 2004, $135,000,000;
       ``(IV) for fiscal year 2005, $142,000,000; and
       ``(V) for fiscal year 2006, $149,000,000.'';

       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Allocation.--Funds made available under subparagraph 
     (A) shall be made available to and reallocated among State 
     agencies under a reasonable formula that--
       ``(i) is determined and adjusted by the Secretary; and
       ``(ii) takes into account the number of individuals who are 
     not exempt from the work requirement under section 6(o).''; 
     and
       (3) by striking subparagraphs (E) through (G).
       (b) Rescission of Carryover Funds.--Notwithstanding any 
     other provision of law, funds provided under section 
     16(h)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(h)(1)(A)) for any fiscal year before fiscal year 2002 
     shall cease to be available on the date of enactment of this 
     Act, unless obligated by a State agency before that date.
       (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``$25 per month'' and inserting ``an 
     amount not less than $25 per month''.
       (d) Federal Reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``$25'' and inserting ``the limit established by the 
     State agency under section 6(d)(4)(I)(i)(I)''.
       (e) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this act.

     SEC. 440. REAUTHORIZATION OF FOOD STAMP PROGRAM.

       (a) Reductions in Payments for Administrative Costs.--
     Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(k)(3)) is amended--
       (1) in the first sentence of subparagraph (A), by striking 
     ``2002'' and inserting ``2006''; and
       (2) in subparagraph (B)(ii), by striking ``2002'' and 
     inserting ``2006''.

[[Page 26700]]

       (b) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is 
     amended by striking ``2002'' and inserting ``2006''.
       (c) Grants To Improve Food Stamp Participation.--Section 
     17(i)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(i)(1)(A)) is amended in the first sentence by striking 
     ``2002'' and inserting ``2006''.
       (d) Authorization of Appropriations.--Section 18(a)(1) of 
     the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended 
     in the first sentence by striking ``2002'' and inserting 
     ``2006''.

     SEC. 441. EXPANDED GRANT AUTHORITY.

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

     SEC. 442. EXEMPTION OF WAIVERS FROM COST-NEUTRALITY 
                   REQUIREMENT.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)) is amended by adding at the end the following:
       ``(E) Cost neutrality.--
       ``(i) Requirements for waivers.--

       ``(I) Estimation of costs and savings of waivers.--Before 
     approving a waiver for any demonstration project proposed 
     under this subsection, the Secretary shall estimate the costs 
     or savings likely to result from the waiver.
       ``(II) Approval of waivers.--The Secretary shall not 
     approve any waiver that the Secretary estimates will increase 
     costs to the Federal Government unless--

       ``(aa) exigent circumstances require the approval of the 
     waiver;
       ``(bb) the increase in costs is insignificant; or
       ``(cc) the increase in costs is necessary for a designated 
     research demonstration project under clause (ii).

       ``(III) Multiyear cost neutrality.--A waiver shall not be 
     considered to increase costs to the Federal Government based 
     on the impact of the waiver in any 1 fiscal year if the 
     waiver is not expected to increase costs to the Federal 
     Government over any 3-fiscal year period that includes the 
     fiscal year.

       ``(ii) Exemption from cost-neutrality requirement for 
     certain projects.--

       ``(I) In general.--For each fiscal year, the Secretary may 
     designate research demonstration projects that--

       ``(aa) have a substantial likelihood of producing 
     information on important issues of food stamp program design 
     or operation; and
       ``(bb) the Secretary estimates are likely to increase costs 
     to the Federal Government by a total of not more than 
     $50,000,000 during the period of fiscal years 2002 through 
     2006.

       ``(II) Exemption.--A project described in subclause (I) 
     shall be exempt from clause (i).

       ``(iii) Offsets in other programs.--In making 
     determinations of costs to the Federal Government under this 
     subparagraph, the Secretary shall estimate and consider 
     savings to the Federal Government in other programs in such a 
     manner as the Secretary determines to be appropriate.
       ``(iv) No look-back.--The Secretary shall not be required 
     to adjust any estimate made under this subparagraph to 
     reflect the actual costs of a demonstration project as 
     implemented by a State agency.''.

     SEC. 443. PROGRAM SIMPLIFICATION DEMONSTRATION PROJECTS.

       (a) Enhanced Waiver Authority.--Section 17 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2026) is amended by striking 
     subsection (e) and inserting the following:
       ``(e) Program Simplification Demonstration Projects.--
       ``(1) In general.--With the approval of the Secretary, not 
     more than 5 State agencies may carry out demonstration 
     projects to test, for a period of not more than 3 years, 
     promising approaches to simplifying the food stamp program.
       ``(2) Types of demonstration projects.--Each demonstration 
     project under paragraph (1) shall test changes in food stamp 
     program rules in not more than 1 of the following 2 areas:
       ``(A)(i) Reporting requirements under section 6(c).
       ``(ii) Verification methods under section 11(e)(3) 
     (including reliance on data from preceding periods that can 
     be obtained or verified electronically).
       ``(iii) A combination of reporting requirements and 
     verification methods.
       ``(B) The income standard of eligibility established under 
     section 5(c)(1), deductions under section 5(e), and income 
     budgeting procedures under section 5(f).
       ``(3) Selection of demonstration projects.--
       ``(A) In general.--The Secretary shall establish a 
     competitive process to select, from all projects proposed by 
     State agencies, the demonstration projects to be carried out 
     under this subsection based on which projects have the 
     greatest likelihood of producing useful information on 
     important issues of food stamp program design or operation, 
     as determined by the Secretary.
       ``(B) Goals.--In selecting demonstration projects, the 
     Secretary shall seek, at a minimum, to achieve a balance 
     between--
       ``(i) simplifying the food stamp program;
       ``(ii) reducing administrative burdens on State agencies, 
     households, and other individuals and entities;
       ``(iii) providing nutrition assistance to individuals most 
     in need; and
       ``(iv) improving access to nutrition assistance.
       ``(C) Projects not eligible for selection.--The Secretary 
     shall not select any demonstration project under this 
     subsection that the Secretary determines does not have a 
     strong likelihood of producing useful information on 
     important issues of food stamp program design or operation.
       ``(D) Diversity of approaches and areas.--In selecting 
     demonstration projects to be carried out under this 
     subsection, the Secretary shall seek to include--
       ``(i) projects that take diverse approaches;
       ``(ii) at least 1 project that will operate in an urban 
     area; and
       ``(ii) at least 1 project that will operate in a rural 
     area.
       ``(E) Maximum aggregate cost of projects.--The estimated 
     aggregate cost of projects selected by the Secretary under 
     this subsection shall not exceed $90,000,000.
       ``(4) Size of area.--Each demonstration project selected 
     under this subsection shall be carried out in an area that 
     contains not more than the greater of--
       ``(A) one-third of the total households receiving 
     allotments in the State; or
       ``(B) the minimum number of households needed to measure 
     the effects of the demonstration projects.
       ``(5) Evaluations.--
       ``(A) In general.--The Secretary shall provide, through 
     contract or other means, for detailed, statistically valid 
     evaluations to be conducted of each demonstration project 
     carried out under this subsection.
       ``(B) Minimum requirements.--Each evaluation under 
     subparagraph (A)--
       ``(i) shall include the study of control groups or areas; 
     and
       ``(ii) shall analyze, at a minimum, the effects of the 
     project design on--

       ``(I) costs of the food stamp program;
       ``(II) State administrative costs;
       ``(III) the integrity of the food stamp program, including 
     errors as measured under section 16(c);
       ``(IV) participation by households in need of nutrition 
     assistance; and
       ``(V) changes in allotment levels experienced by--

       ``(aa) households of various income levels;
       ``(bb) households with elderly, disabled, and employed 
     members;
       ``(cc) households with high shelter costs relative to the 
     incomes of the households; and
       ``(dd) households receiving subsidized housing, child care, 
     or health insurance.
       ``(C) Funding.--From funds made available to carry out this 
     Act, the Secretary shall reserve not more than $6,000,000 to 
     conduct evaluations under this paragraph.
       ``(6) Report to congress.--Not later than January 1, 2006, 
     the Secretary shall submit to Congress a report on the impact 
     of the demonstration projects carried out under this 
     subsection on the food stamp program, including the 
     effectiveness of the demonstration projects in--
       ``(A) delivering nutrition assistance to households most at 
     risk; and
       ``(B) reducing administrative burdens.''.
       (b) Conforming Amendment.--Section 17(b)(1)(B)(iv)(III)(ii) 
     of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(B)(iv)(III)(ii)) is amended by striking 
     ``paragraph'' and inserting ``section''.

     SEC. 444. CONSOLIDATED BLOCK GRANTS.

       (a) Consolidated Funding.--Section 19(a)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``the Commonwealth of Puerto Rico'' and 
     inserting ``governmental entities specified in subparagraph 
     (D)'';
       (B) in clause (ii), by striking ``and'' at the end; and
       (C) by striking clause (iii) and all that follows and 
     inserting the following:
       ``(iii) for fiscal year 2002, $1,356,000,000; and
       ``(iv) for each of fiscal years 2003 through 2006, the 
     amount provided in clause (iii), as adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(o)(4) between June 30, 2001, and June 30 of 
     the immediately preceding fiscal year;

     to pay the expenditures for nutrition assistance programs for 
     needy persons as described in subparagraphs (B) and (C).'';
       (2) in subparagraph (B), by inserting ``of Puerto Rico'' 
     after ``Commonwealth'' each place it appears; and
       (3) by adding at the end the following:
       ``(C) American samoa.--For each fiscal year, the Secretary 
     shall reserve 0.4 percent of the funds made available under 
     subparagraph (A) for payment to American Samoa to pay the 
     expenditures for a nutrition assistance program extended 
     under section 601(c) of Public Law 96-597 (48 U.S.C. 
     1469d(c)).
       ``(D) Governmental entity.--A governmental entity specified 
     in this subparagraph is--
       ``(i) the Commonwealth of Puerto Rico; and

[[Page 26701]]

       ``(ii) for fiscal year 2003 and each fiscal year 
     thereafter, American Samoa.''.
       (b) Conforming Amendment.--Section 24 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2033) is repealed.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.

     SEC. 445. EXPANDED AVAILABILITY OF COMMODITIES.

       (a) In General.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) is amended--
       (1) in subsection (a)--
       (A) by striking ``From amounts'' and inserting the 
     following:
       ``(1) In general.--From amounts'';
       (B) by striking ``for each of fiscal years 1997 through 
     2002, the Secretary shall purchase $100,000,000 of'' and 
     inserting ``the Secretary shall use the amount specified in 
     paragraph (2) to purchase''; and
       (C) by adding at the end the following:
       ``(2) Amounts.--The amounts specified in this paragraph 
     are--
       ``(A) for each of fiscal years 1997 through 2001, 
     $100,000,000; and
       ``(B) for each of fiscal years 2002 through 2006, 
     $140,000,000.''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Related Costs.--
       ``(1) In general.--For each of fiscal years 2002 through 
     2006, the Secretary shall use $10,000,000 of the funds made 
     available under subsection (a) to pay the direct and indirect 
     costs of States relating to the processing, storing, 
     transporting, and distributing to eligible recipient agencies 
     of--
       ``(A) commodities purchased by the Secretary under 
     subsection (a); and
       ``(B) commodities acquired from other sources, including 
     commodities acquired by gleaning (as defined in section 
     111(a) of the Hunger Prevention Act of 1988 (7 U.S.C. 612c 
     note; Public Law 100-435)).
       ``(2) Allocation of funds.--The amount required to be used 
     in accordance with paragraph (1) shall be allocated in 
     accordance with section 204(a) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)).''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

                  Subtitle B--Miscellaneous Provisions

     SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

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

     SEC. 452. WORK REQUIREMENT FOR LEGAL IMMIGRANTS.

       (a) Working Immigrant Families.--Section 
     402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(B)(ii)(I)) is amended by striking ``40'' and 
     inserting ``40 (or, in the case of the specified Federal 
     program described in paragraph (3)(B), 16)''.
       (b) Conforming Amendments.--
       (1) Section 213A(a)(3)(A) of the Immigration and 
     Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended by 
     striking ``40'' and inserting ``40 (or, in the case of the 
     specified Federal program described in section 402(a)(3)(B) 
     of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1612(a)(3)(B)), 16)''.
       (2) Section 403(c)(2) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)) is amended by adding at the end the following:
       ``(L) Assistance or benefits under the Food Stamp Act of 
     1977 (7 U.S.C. 2011 et seq.).''.
       (3) Section 421(b)(2)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(b)(2)(A)) is amended by striking ``40'' and inserting 
     ``40 (or, in the case of the specified Federal program 
     described in section 402(a)(3)(B), 16)''.

     SEC. 453. QUALIFIED ALIENS.

       Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
     is amended by adding at the end the following:
       ``(L) Food stamp exception for certain qualified aliens.--
     With respect to eligibility for benefits for the specified 
     Federal program described in paragraph (3)(B), paragraph (1) 
     shall not apply to any individual who has continuously 
     resided in the United States as a qualified alien for a 
     period of 5 years or more.''.

     SEC. 454. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

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

     SEC. 455. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

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

     SEC. 456. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     carry out and expand a seniors farmers' market nutrition 
     program.
       (b) Program Purposes.--The purposes of the seniors farmers' 
     market nutrition program are--
       (1) to provide to low-income seniors resources in the form 
     of fresh, nutritious, unprepared, locally grown fruits, 
     vegetables, and herbs from farmers' markets, roadside stands, 
     and community-supported agriculture programs;
       (2) to increase domestic consumption of agricultural 
     commodities by expanding or assisting in the expansion of 
     domestic farmers' markets, roadside stands, and community-
     supported agriculture programs; and
       (3) to develop or aid in the development of new farmers' 
     markets, roadside stands, and community-supported agriculture 
     programs.
       (c) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as the Secretary considers 
     necessary to carry out the seniors farmers' market nutrition 
     program under this section.
       (d) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $15,000,000.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.

     SEC. 457. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL 
                   SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

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

       ``(I) for housing'';

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

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

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

[[Page 26702]]



     SEC. 458. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2001''.
       (b) Findings.--Congress finds that--
       (1) there are--
       (A) a critical need for compassionate individuals who are 
     committed to assisting people who suffer from hunger; and
       (B) a need for those individuals to initiate and administer 
     solutions to the hunger problem;
       (2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       (A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       (B) his commitment to public service; and
       (C) his great affection for the institution and the ideals 
     of Congress;
       (3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       (A) his compassion for individuals in need;
       (B) his high regard for public service; and
       (C) his lively exercise of political talents;
       (4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all; and
       (5) since those 2 outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, it is especially appropriate to 
     honor the memory of Mr. Emerson and Mr. Leland by 
     establishing a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     and the Committee on Foreign Relations of the Senate.
       (2) Board.--The term ``Board'' means the Board of Trustees 
     of the Program.
       (3) Fund.--The term ``Fund'' means the Congressional Hunger 
     Fellows Trust Fund established by subsection (g).
       (4) Program.--The term ``Program'' means the Congressional 
     Hunger Fellows Program established by subsection (d).
       (d) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government an entity to be known as the ``Congressional 
     Hunger Fellows Program''.
       (e) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board.--
       (A) Appointment.--
       (i) In general.--The Board shall be composed of 6 voting 
     members appointed under clause (ii) and 1 nonvoting ex-
     officio member designated by clause (iii).
       (ii) Voting members.--The voting members of the Board shall 
     be the following:

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

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

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

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

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

       (iii) Submission to congress.--Not later than 90 days after 
     the date of the first meeting of the Board, the Chairperson 
     of the Board shall submit to the appropriate congressional 
     committees a copy of the bylaws established by the Board.
       (B) Budget.--For each fiscal year in which the Program is 
     in operation--
       (i) the Board shall determine a budget for the Program for 
     the fiscal year; and
       (ii) all spending by the Program shall be in accordance 
     with the budget unless a change is approved by the Board.
       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the Program.
       (D) Allocation of funds to fellowships.--The Board shall 
     determine--
       (i) the priority of the programs to be carried out under 
     this section; and
       (ii) the amount of funds to be allocated for the 
     fellowships established under subsection (f)(3)(A).
       (f) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the Program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service;
       (B) to recognize the needs of people who are hungry and 
     poor;
       (C) to provide assistance and compassion for people in 
     need;
       (D) to increase awareness of the importance of public 
     service; and
       (E) to provide training and development opportunities for 
     the leaders through placement in programs operated by 
     appropriate entities.
       (2) Authority.--The Program may develop fellowships to 
     carry out the purposes of the Program, including the 
     fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The Program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

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

       (ii) Focus.--

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

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

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

[[Page 26703]]

       (iii) Amount of award.--

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

       (iv) Recognition of fellowship award.--

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

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

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

       (B) Procurement of temporary and intermittent services.--To 
     carry out this section, the Program may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay payable for level GS-15 of the General Schedule.
       (C) Contract authority.--To carry out this section, the 
     Program may, with the approval of a majority of the members 
     of the Board, contract with and compensate Government and 
     private agencies or persons without regard to section 3709 of 
     the Revised Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--
       (i) In general.--Subject to clause (ii), the Program may 
     make such other expenditures as the Program considers 
     necessary to carry out this section.
       (ii) Prohibition.--The Program may not expend funds to 
     develop new or expanded projects at which fellows may be 
     placed.
       (j) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the Program carried 
     out during the preceding fiscal year that includes--
       (1) an analysis of the evaluations conducted under 
     subsection (f)(4) during the fiscal year; and
       (2) a statement of--
       (A) the total amount of funds attributable to gifts 
     received by the Program in the fiscal year under subsection 
     (i)(3)(A); and
       (B) the total amount of funds described in subparagraph (A) 
     that were expended to carry out the Program in the fiscal 
     year.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $18,000,000.
       (l) Effective Date.--This section takes effect on October 
     1, 2002.

     SEC. 459. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title (other than subtitle C) take effect on 
     July 1, 2002, except that a State agency may, at the option 
     of the State agency, elect not to implement the amendments 
     until October 1, 2002.

                     Subtitle C--Commodity Programs

     SEC. 471. DEFINITION OF LOAN COMMODITY.

       Section 102 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7202) (as amended by section 
     101) is amended by striking paragraph (9) and inserting the 
     following:
       ``(9) Loan commodity.--The term `loan commodity' means 
     wheat, corn, grain sorghum, barley, oats, upland cotton, 
     extra long staple cotton, rice, and oilseeds.''.

     SEC. 472. INCOME PROTECTION PRICES FOR COUNTER-CYCLICAL 
                   PAYMENTS.

       Section 114(c) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (as amended by section 111) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.03 per bushel.
       ``(B) Corn, $2.16 per bushel.
       ``(C) Grain sorghum, $2.16 per bushel.
       ``(D) Barley, $1.85 per bushel.
       ``(E) Oats, $1.26 per bushel.
       ``(F) Upland cotton, $0.6492 per pound.
       ``(G) Rice, $8.95 per hundredweight.
       ``(H) Soybeans, $5.47 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.103 per pound.''.

[[Page 26704]]



     SEC. 473. FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

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

     ``SEC. 119. FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross revenue.--The term `adjusted gross 
     revenue' means the adjusted gross income for all agricultural 
     enterprises of a producer in a year, excluding revenue earned 
     from nonagricultural sources, as determined by the 
     Secretary--
       ``(A) by taking into account gross receipts from the sale 
     of crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       ``(B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including 
     any marketing loan gains described in section 1001(3)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(3)(A));
       ``(C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       ``(D) as represented on--
       ``(i) a schedule F of the Federal income tax returns of the 
     producer; or
       ``(ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       ``(2) Agricultural enterprise.--The term `agricultural 
     enterprise' means the production and marketing of all 
     agricultural commodities (including livestock but excluding 
     tobacco) on a farm or ranch.
       ``(3) Average adjusted gross revenue.--The term `average 
     adjusted gross revenue' means--
       ``(A) the average of the adjusted gross revenue of a 
     producer for each of the preceding 5 taxable years; or
       ``(B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       ``(4) Producer.--The term `producer' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       ``(A) shares in the risk of producing, or provides a 
     material contribution in producing, an agricultural commodity 
     for the applicable year;
       ``(B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       ``(C)(i) during each of the preceding 5 taxable years, has 
     filed--
       ``(I) a schedule F of the Federal income tax returns; or
       ``(II) a comparable tax form related to the agricultural 
     enterprises of the individual or entity, as approved by the 
     Secretary; or
       ``(ii) is a beginning farmer or rancher or other producer 
     that does not have adjusted gross revenue for each of the 
     preceding 5 taxable years, as determined by the Secretary; 
     and
       ``(D)(i) has earned at least $20,000 in average adjusted 
     gross revenue for each of the preceding 5 taxable years;
       ``(ii) is a limited resource farmer or rancher, as 
     determined by the Secretary; or
       ``(iii) in the case of a beginning farmer or rancher or 
     other producer that does not have adjusted gross revenue for 
     each of the preceding 5 taxable years, has at least $20,000 
     in estimated income from all agricultural enterprises for the 
     applicable year, as determined by the Secretary.
       ``(b) Establishment.--A producer may establish a farm 
     counter-cyclical savings account in the name of the producer 
     in a bank or financial institution selected by the producer 
     and approved by the Secretary.
       ``(c) Content of Account.--A farm counter-cyclical savings 
     account shall consist of--
       ``(1) contributions of the producer; and
       ``(2) matching contributions of the Secretary.
       ``(d) Producer Contributions.--
       ``(1) In general.--Subject to paragraph (2), a producer may 
     deposit such amounts in the account of the producer as the 
     producer considers appropriate.
       ``(2) Maximum account balance.--The balance of an account 
     of a producer may not exceed 150 percent of the average 
     adjusted gross revenue of the producer.
       ``(e) Matching Contributions.--
       ``(1) In general.--Subject to paragraphs (2) through (4), 
     the Secretary shall provide a matching contribution that is 
     equal to, and may not exceed, the amount deposited by the 
     producer into the account.
       ``(2) Maximum matching ccontributions by secretary.--The 
     amount of matching contributions that may be provided by the 
     Secretary for an individual producer under this subsection 
     shall not exceed $10,000 in any year.
       ``(3) Maximum contributions for all producers.--
       ``(A) In general.--The total amount of matching 
     contributions that may be provided by the Secretary for all 
     producers under this subsection shall not exceed--
       ``(i) $900,000,000 for fiscal year 2002;
       ``(ii) $1,400,000,000 for fiscal year 2003; and
       ``(iii) $1,500,000,000 for each of fiscal years 2004 
     through 2006.
       ``(B) Availability of funds.--
       ``(i) In general.--Funds made available under subparagraph 
     (A) shall remain available until expended.
       ``(ii) Effect of carryover.--Any funds carried over from 1 
     fiscal year to another fiscal year shall be in addition to 
     funds made available under subparagraph (A).
       ``(4) Date for matching contributions.--The Secretary shall 
     provide the matching contributions for an applicable year 
     required for a producer under paragraph (1) as of the date 
     that a majority of the covered commodities grown by the 
     producer are harvested.
       ``(f) Interest.--Funds deposited into the account may earn 
     interest at the commercial rates provided by the bank or 
     financial institution in which the Account is established.
       ``(g) Use.--Funds credited to the account--
       ``(1) shall be available for withdrawal by a producer, in 
     accordance with subsection (h); and
       ``(2) may be used for purposes determined by the producer.
       ``(h) Withdrawal.--
       ``(1) In general.--Subject to paragraph (2), a producer may 
     withdraw funds from the account if the estimated adjusted 
     gross revenue of the producer for the applicable year is less 
     than the average adjusted gross revenue of the producer.
       ``(2) Retirement.--A producer that ceases to be actively 
     engaged in farming, as determined by the Secretary--
       ``(A) may withdraw the full balance from, and close, the 
     account; and
       ``(B) may not establish another account.''.

     SEC. 474. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

       (a) In General.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     123(a)) is amended to read as follows:

     ``SEC. 132. LOAN RATES.

       ``(a) Wheat.--
       ``(1) Loan rate.--Subject to paragraph (2), the loan rate 
     for a marketing assistance loan under section 131 for wheat 
     shall be--
       ``(A) not less than 85 percent of the simple average price 
     received by producers of wheat, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of wheat, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period; but
       ``(B) not more than $2.58 per bushel.
       ``(2) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of wheat to total use for the marketing year will be--
       ``(A) equal to or greater than 30 percent, the Secretary 
     may reduce the loan rate for wheat for the corresponding crop 
     by an amount not to exceed 10 percent in any year;
       ``(B) less than 30 percent but not less than 15 percent, 
     the Secretary may reduce the loan rate for wheat for the 
     corresponding crop by an amount not to exceed 5 percent in 
     any year; or
       ``(C) less than 15 percent, the Secretary may not reduce 
     the loan rate for wheat for the corresponding crop.
       ``(b) Feed Grains.--
       ``(1) Loan rate for corn and grain sorghum.--Subject to 
     paragraph (2), the loan rate for a marketing assistance loan 
     under section 131 for corn and grain sorghum shall be--
       ``(A) not less than 85 percent of the simple average price 
     received by producers of corn or grain sorghum, respectively, 
     as determined by the Secretary, during the marketing years 
     for the immediately preceding 5 crops of the covered 
     commodity, excluding the year in which the average price was 
     the highest and the year in which the average price was the 
     lowest in the period; but
       ``(B) not more than $1.89 per bushel.
       ``(2) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of corn or grain sorghum to total use for the 
     marketing year will be--
       ``(A) equal to or greater than 25 percent, the Secretary 
     may reduce the loan rate for the covered commodity for the 
     corresponding crop by an amount not to exceed 10 percent in 
     any year;
       ``(B) less than 25 percent but not less than 12.5 percent, 
     the Secretary may reduce the loan rate for the covered 
     commodity for the corresponding crop by an amount not to 
     exceed 5 percent in any year; or
       ``(C) less than 12.5 percent, the Secretary may not reduce 
     the loan rate for the covered commodity for the corresponding 
     crop.
       ``(3) Other feed grains.--The loan rate for a marketing 
     assistance loan under section 131 for barley and oats shall 
     be--
       ``(A) established at such level as the Secretary determines 
     is fair and reasonable in relation to the rate that loans are 
     made available for corn, taking into consideration the 
     feeding value of the commodity in relation to corn; but
       ``(B) not more than--
       ``(i) $1.65 per bushel for barley; and
       ``(ii) $1.21 per bushel for oats.
       ``(c) Upland Cotton.--

[[Page 26705]]

       ``(1) Loan rate.--Subject to paragraph (2), the loan rate 
     for a marketing assistance loan under section 131 for upland 
     cotton shall be established by the Secretary at such loan 
     rate, per pound, as will reflect for the base quality of 
     upland cotton, as determined by the Secretary, at average 
     locations in the United States a rate that is not less than 
     the smaller of--
       ``(A) 85 percent of the average price (weighted by market 
     and month) of the base quality of cotton as quoted in the 
     designated United States spot markets during 3 years of the 
     5-year period ending July 31 of the year preceding the year 
     in which the crop is planted, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period; or
       ``(B) 90 percent of the average, for the 15-week period 
     beginning July 1 of the year preceding the year in which the 
     crop is planted, of the 5 lowest-priced growths of the 
     growths quoted for Middling 1\3/32\-inch cotton C.I.F. 
     Northern Europe (adjusted downward by the average difference 
     during the period April 15 through October 15 of the year 
     preceding the year in which the crop is planted between the 
     average Northern European price quotation of such quality of 
     cotton and the market quotations in the designated United 
     States spot markets for the base quality of upland cotton), 
     as determined by the Secretary.
       ``(2) Limitations.--The loan rate for a marketing 
     assistance loan for upland cotton shall not be less than 
     $0.50 per pound or more than $0.5192 per pound.
       ``(d) Extra Long Staple Cotton.--The loan rate for a 
     marketing assistance loan under section 131 for extra long 
     staple cotton shall be $0.7965 per pound.
       ``(e) Rice.--The loan rate for a marketing assistance loan 
     under section 131 for rice shall be $6.50 per hundredweight.
       ``(f) Oilseeds.--
       ``(1) Soybeans.--The loan rate for a marketing assistance 
     loan under section 131 for soybeans shall be--
       ``(A) not less than 85 percent of the simple average price 
     received by producers of soybeans, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of soybeans, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       ``(B) not more than $4.92 per bushel.
       ``(2) Other oilseeds.--The loan rate for a marketing 
     assistance loan under section 131 for each oilseed (other 
     than soybeans) shall be--
       ``(A) not less than 85 percent of the simple average price 
     received by producers of the oilseed, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of the oilseed, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       ``(B) not more than $0.093 per pound.''.
       (b) Adjustment of Loans.--
       (1) In general.--The amendment made by section 123(b) is 
     repealed.
       (2) Applicability.--Section 162 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7282) shall be 
     applied and administered as if the amendment made by section 
     123(b) had not been enacted.

     SEC. 475. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle take 
     effect on the date of enactment of this Act.
                                  ____

  SA 2642. Mr. LUGAR submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 707, strike line 16 and all that follows 
     through page 708, line 20, and insert the following:

     SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

       Section 401 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Account to carry out this section--
       ``(A) not later than 30 days after the date of enactment of 
     this subparagraph, $240,000,000; and
       ``(B) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $360,000,000.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''; and
       (2) in subsection (e), by adding at the end the following:
       ``(3) Minority-serving institutions.--The Secretary shall 
     consider reserving, to the maximum extent practicable, 10 
     percent of the funds made available to carry out this section 
     for a fiscal year for grants to minority-serving 
     institutions.''.
                                  ____

  SA 2643. Mr. LUGAR submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 707, strike line 16 and all that follows 
     through page 708, line 20, and insert the following:

     SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

       (a) In General.--Section 401 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621) 
     is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     transfer to the Account to carry out this section--
       ``(A) not later than 30 days after the date of enactment of 
     this subparagraph, $240,000,000; and
       ``(B) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $360,000,000.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''; and
       (2) in subsection (e), by adding at the end the following:
       ``(3) Minority-serving institutions.--The Secretary shall 
     consider reserving, to the maximum extent practicable, 10 
     percent of the funds made available to carry out this section 
     for a fiscal year for grants to minority-serving 
     institutions.''.
       (b) Offset.--Section 158G of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as added by section 
     151(a)) shall have no effect.
                                  ____

  SA 2644. Mr. LUGAR submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike title IV and insert the following:

                      TITLE IV--NUTRITION PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Food Stamp Simplification 
     Act of 2001''.

                     Subtitle A--Food Stamp Program

     SEC. 411. CATEGORICAL ELIGIBILITY FOR RECIPIENTS OF CASH 
                   ASSISTANCE.

       Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended--
       (1) in the second sentence, by striking ``receives 
     benefits'' and inserting ``receives cash assistance''; and
       (2) in the third sentence, by striking ``receives 
     benefits'' and inserting ``receives cash assistance''.

     SEC. 412. DISREGARDING OF INFREQUENT AND UNANTICIPATED 
                   INCOME.

       Section 5(d)(2) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)(2)) is amended by striking ``$30'' and inserting 
     ``$100''.

     SEC. 413. SIMPLIFIED TREATMENT OF INDIVIDUALS COMPLYING WITH 
                   CHILD SUPPORT ORDERS.

       (a) Exclusion.--Section 5(d)(6) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(d)(6)) is amended by adding at the end 
     the following: ``including child support payments made by a 
     household member to or for an individual who is not a member 
     of the household if the household member is legally obligated 
     to make the payments,''.
       (b) Simplified Procedure.--Section 5 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014) is amended--
       (1) in subsection (e), by striking paragraph (4) and 
     inserting the following:
       ``(4) Deduction for child support payments.--
       ``(A) In general.--In lieu of providing an exclusion for 
     legally obligated child support payments made by a household 
     member under subsection (d)(6), a State agency may elect to 
     provide a deduction for the amount of the payments.
       ``(B) Order of determining deductions.--A deduction under 
     this paragraph shall be determined before the computation of 
     the excess shelter expense deduction under paragraph (6).''; 
     and
       (2) by adding at the end the following:

[[Page 26706]]

       ``(n) State Options To Simplify Determination of Child 
     Support Payments Made by Household Members.--
       ``(1) In general.--Regardless of whether a State agency 
     elects to provide a deduction under subsection (e)(4), the 
     Secretary shall establish simplified procedures to allow 
     State agencies to determine the amount of the legally 
     obligated child support payments made, including procedures 
     to allow the State agency to rely on information from the 
     agency responsible for implementing the program under part D 
     of title IV of the Social Security Act (42 U.S.C. 661 et 
     seq.) concerning payments made in prior months in lieu of 
     obtaining current information from the household.
       ``(2) Duration of determination of amount of support 
     payments.--If a State agency makes a determination of the 
     amount of support payments of a household under paragraph 
     (1), the State agency may provide that the amount of the 
     exclusion or deduction for the household shall not change 
     until the eligibility of the household is next redetermined 
     under section 11(e)(4).''.

     SEC. 414. COORDINATED AND SIMPLIFIED DEFINITION OF INCOME.

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

     SEC. 415. EXCLUSION OF INTEREST AND DIVIDEND INCOME.

       Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) (as amended by section 414(2)) is amended by 
     inserting before the period at the end the following: ``, and 
     (19) any interest or dividend income received by a member of 
     the household''.

     SEC. 416. ALIGNMENT OF STANDARD DEDUCTION WITH POVERTY LINE.

       Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)) is amended by striking paragraph (1) and inserting 
     the following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow a standard deduction for 
     each household that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of the income standard of eligibility 
     established under subsection (c)(1); but
       ``(ii) not less than the minimum deduction specified in 
     subparagraph (E).
       ``(B) Guam.--The Secretary shall allow a standard deduction 
     for each household in Guam that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for fiscal year 2002;
       ``(ii) 8.5 percent for each of fiscal years 2003 through 
     2005;
       ``(iii) 9 percent for each of fiscal years 2006 through 
     2008;
       ``(iv) 9.5 percent for each of fiscal years 2009 and 2010; 
     and
       ``(v) 10 percent for each fiscal year thereafter.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.

     SEC. 417. SIMPLIFIED DEPENDENT CARE DEDUCTION.

       Section 5(e)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(3)) is amended by adding at the end the following:
       ``(C) Standard dependent care allowances.--
       ``(i) Establishment of allowances.--

       ``(I) In general.--In determining the dependent care 
     deduction under this paragraph, in lieu of requiring the 
     household to establish the actual dependent care costs of the 
     household, a State agency may use standard dependent care 
     allowances established under subclause (II) for each 
     dependent for whom the household incurs costs for care.
       ``(II) Amendment to state plan.--A State agency that elects 
     to use standard dependent care allowances under subclause (I) 
     shall submit for approval by the Secretary an amendment to 
     the State plan of operation under section 11(d) that--

       ``(aa) describes the allowances that the State agency will 
     use; and
       ``(bb) includes supporting documentation.
       ``(ii) Household election.--

       ``(I) In general.--Except as provided in clause (iii), a 
     household may elect to have the dependent care deduction of 
     the household based on actual dependent care costs rather 
     that the allowances established under clause (i).
       ``(II) Frequency.--The Secretary may by regulation limit 
     the frequency with which households may make the election 
     described in subclause (I) or reverse the election.

       ``(iii) Mandatory dependent care allowances.--The State 
     agency may make the use of standard dependent care allowances 
     established under clause (i) mandatory for all households 
     that incur dependent care costs.''.

     SEC. 418. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

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

     SEC. 419. SIMPLIFIED DETERMINATION OF UTILITY COSTS.

       Section 5(e)(6)(C)(iii) of the Food Stamp Act of 1977 (as 
     amended by section 418(b)(1)(B)) is amended--
       (1) in subclause (I)(bb), by inserting ``(without regard to 
     subclause (III))'' after ``Secretary finds''; and
       (2) by adding at the end the following:

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

     SEC. 420. SIMPLIFIED DETERMINATION OF EARNED INCOME.

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

     SEC. 421. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

       Section 5(f)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(f)(1)) (as amended by section 420) is amended by adding 
     at the end the following:

[[Page 26707]]

       ``(D) Simplified determination of deductions.--
       ``(i) In general.--Except as provided in clause (ii), for 
     the purposes of subsection (e), a State agency may elect to 
     disregard until the next redetermination of eligibility under 
     section 11(e)(4) 1 or more types of changes in the 
     circumstances of a household that affect the amount of 
     deductions the household may claim under subsection (e).
       ``(ii) Changes that may not be disregarded.--Under clause 
     (i), a State agency may not disregard--

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

     SEC. 422. SIMPLIFIED RESOURCE ELIGIBILITY LIMIT.

       Section 5(g)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)(1)) is amended by striking ``a member who is 60 years 
     of age or older'' and inserting ``an elderly or disabled 
     member''.

     SEC. 423. EXCLUSION OF LICENSED VEHICLES FROM FINANCIAL 
                   RESOURCES.

       (a) In General.--Section 5(g)(2) of the Food Stamp Act of 
     1977 (7 U.S.C. 2014(g)(2)) is amended--
       (1) in subparagraph (B)--
       (A) in clause (iii), by adding ``and'' at the end;
       (B) by striking clause (iv); and
       (C) by redesignating clause (v) as clause (iv);
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) Excluded vehicles.--The Secretary shall exclude from 
     financial resources any licensed vehicle used for household 
     transportation.''; and
       (3) by striking subparagraph (D).
       (b) Conforming Amendment.--Section 17 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026) is amended by striking subsection 
     (h).

     SEC. 424. EXCLUSION OF RETIREMENT ACCOUNTS FROM FINANCIAL 
                   RESOURCES.

       Section 5(g)(2)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(g)(2)(B)) (as amended by section 423(a)(1)) is amended 
     by striking clause (iv) and inserting the following:
       ``(iv) any savings account (other than a retirement account 
     (including an individual account)).''.

     SEC. 425. COORDINATED AND SIMPLIFIED DEFINITION OF RESOURCES.

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

     SEC. 426. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

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

     SEC. 427. SIMPLIFIED REPORTING SYSTEMS.

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

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

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

     SEC. 428. SIMPLIFIED TIME LIMIT.

       (a) In General.--Section 6(o) of the Food Stamp Act of 1977 
     (7 U.S.C. 2015(o)) is amended--
       (1) in paragraph (2)--
       (A) by striking ``36-month'' and inserting ``12-month'';
       (B) by striking ``3'' and inserting ``6''; and
       (C) in subparagraph (D), by striking ``(4), (5), or (6)'' 
     and inserting ``(4), or (5)'';
       (2) by striking paragraph (5);
       (3) in paragraph (6)(A)(ii)--
       (A) in subclause (III), by adding ``and'' at the end;
       (B) in subclause (IV), by striking ``; and'' and inserting 
     a period; and
       (C) by striking subclause (V); and
       (4) by redesignating paragraphs (6) and (7) as paragraphs 
     (5) and (6), respectively.
       (b) Implementation of Amendments.--For the purpose of 
     implementing the amendments made by subsection (a), a State 
     agency shall disregard any period during which an individual 
     received food stamp benefits before the effective date of 
     this title.

     SEC. 429. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

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

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

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

     SEC. 430. COST-NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

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

     SEC. 431. SIMPLIFIED PROCEDURES FOR RESIDENTS OF CERTAIN 
                   GROUP FACILITIES.

       (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
     U.S.C. 2017) is amended by adding at the end the following:
       ``(f) Simplified Procedures for Residents of Certain Group 
     Facilities.--
       ``(1) In general.--At the option of the State agency, 
     allotments for residents of facilities described in 
     subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
     determined and issued under this subsection in lieu of 
     subsection (a).
       ``(2) Amount of allotment.--The allotment for each eligible 
     resident described in paragraph (1) shall be calculated in 
     accordance with standardized procedures established by the 
     Secretary that take into account the allotments typically 
     received by residents of facilities described in paragraph 
     (1).
       ``(3) Issuance of allotment.--
       ``(A) In general.--The State agency shall issue an 
     allotment determined under this subsection to the 
     administration of a facility described in paragraph (1) as 
     the authorized representative of the residents of the 
     facility.
       ``(B) Adjustment.--The Secretary shall establish procedures 
     to ensure that a facility described in paragraph (1) does not 
     receive a greater proportion of a resident's monthly 
     allotment than the proportion of the month during which the 
     resident lived in the facility.
       ``(4) Departures of covered residents.--
       ``(A) Notification.--Any facility described in paragraph 
     (1) that receives an allotment for a resident under this 
     subsection shall--
       ``(i) notify the State agency promptly on the departure of 
     the resident; and
       ``(ii) notify the resident, before the departure of the 
     resident, that the resident--

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

       ``(B) Issuance to departed residents.--On receiving a 
     notification under subparagraph (A)(i) concerning the 
     departure of a resident, the State agency--
       ``(i) shall promptly issue the departed resident an 
     allotment for the days of the month after the departure of 
     the resident (calculated in a manner prescribed by the 
     Secretary) unless the departed resident reapplies to 
     participate in the food stamp program; and
       ``(ii) may issue an allotment for the month following the 
     month of the departure (but not any subsequent month) based 
     on this subsection unless the departed resident reapplies to 
     participate in the food stamp program.
       ``(C) State option.--The State agency may elect not to 
     issue an allotment under subparagraph (B)(i) if the State 
     agency lacks sufficient information on the location of the 
     departed resident to provide the allotment.

[[Page 26708]]

       ``(D) Effect of reapplication.--If the departed resident 
     reapplies to participate in the food stamp program, the 
     allotment of the departed resident shall be determined 
     without regard to this subsection.''.
       (b) Conforming Amendments.--
       (1) Section 3(i) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(i)) is amended--
       (A) by striking ``(i) `Household' means (1) an'' and 
     inserting the following:
       ``(i)(1) `Household' means--
       ``(A) an'';
       (B) in the first sentence, by striking ``others, or (2) a 
     group'' and inserting the following: ``others; or
       ``(B) a group'';
       (C) in the second sentence, by striking ``Spouses'' and 
     inserting the following:
       ``(2) Spouses'';
       (D) in the third sentence, by striking ``Notwithstanding'' 
     and inserting the following:
       ``(3) Notwithstanding'';
       (E) in paragraph (3) (as designated by subparagraph (D)), 
     by striking ``the preceding sentences'' and inserting 
     ``paragraphs (1) and (2)'';
       (F) in the fourth sentence, by striking ``In no event'' and 
     inserting the following:
       ``(4) In no event'';
       (G) in the fifth sentence, by striking ``For the purposes 
     of this subsection, residents'' and inserting the following:
       ``(5) For the purposes of this subsection, the following 
     persons shall not be considered to be residents of 
     institutions and shall be considered to be individual 
     households:
       ``(A) Residents''; and
       (H) in paragraph (5) (as designated by subparagraph (G))--
       (i) by striking ``Act, or are individuals'' and inserting 
     the following: ``Act.
       ``(B) Individuals'';
       (ii) by striking ``such section, temporary'' and inserting 
     the following: ``that section.
       ``(C) Temporary'';
       (iii) by striking ``children, residents'' and inserting the 
     following: ``children.
       ``(D) Residents'';
       (iv) by striking ``coupons, and narcotics'' and inserting 
     the following: ``coupons.
       ``(E) Narcotics''; and
       (v) by striking ``shall not'' and all that follows and 
     inserting a period.
       (2) Section 5(a) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(a)) is amended by striking ``the third sentence of 
     section 3(i)'' each place it appears and inserting ``section 
     3(i)(4)''.
       (3) Section 8(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2017(e)(1)) is amended by striking ``the last sentence of 
     section 3(i)'' and inserting ``section 3(i)(5)''.
       (4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) is amended by 
     striking ``the last 2 sentences of section 3(i)'' and 
     inserting ``paragraphs (4) and (5) of section 3(i)''.

     SEC. 432. REDEMPTION OF BENEFITS THROUGH GROUP LIVING 
                   ARRANGEMENTS.

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

     SEC. 433. SIMPLIFIED DETERMINATIONS OF CONTINUING 
                   ELIGIBILITY.

       (a) In General.--Section 11(e) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(e)) is amended--
       (1) by striking paragraph (4) and inserting the following:
       ``(4)(A) that the State agency shall periodically require 
     each household to cooperate in a redetermination of the 
     eligibility of the household.
       ``(B) A redetermination under subparagraph (A) shall--
       ``(i) be based on information supplied by the household; 
     and
       ``(ii) conform to standards established by the Secretary.
       ``(C) The interval between redeterminations of eligibility 
     under subparagraph (A) shall not exceed the eligibility 
     review period;'' and
       (2) in paragraph (10)--
       (A) by striking ``within the household's certification 
     period''; and
       (B) by striking ``or until'' and all that follows through 
     ``occurs earlier''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended--
       (A) by striking ``Certification period'' and inserting 
     ``Eligibility review period''; and
       (B) by striking ``certification period'' each place it 
     appears and inserting ``eligibility review period''.
       (2) Section 5 of the Food Stamp Act of 1977 (7 U.S.C. 2014) 
     is amended--
       (A) in subsection (d)(2), by striking ``in the 
     certification period which'' and inserting ``that''; and
       (B) in subsection (e) (as amended by section 
     1218(b)(1)(B))--
       (i) in paragraph (5)(B)(ii)--

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

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

     SEC. 434. SIMPLIFIED APPLICATION PROCEDURES FOR THE ELDERLY 
                   AND DISABLED.

       (a) In General.--Section 11(i) of the Food Stamp Act of 
     1977 (7 U.S.C. 2020(i)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``income shall be informed'' and inserting 
     the following: ``income shall be--
       ``(A) informed'';
       (B) by striking ``program and be assisted'' and inserting 
     the following: ``program;
       ``(B) assisted''; and
       (C) by striking ``office and be certified'' and inserting 
     the following: ``office; and
       ``(C) certified''; and
       (2) by adding at the end the following:
       ``(3) Dual-purpose applications.--
       ``(A) In general.--Under regulations promulgated by the 
     Secretary after consultation with the Commissioner of Social 
     Security, a State agency may enter into a memorandum of 
     understanding with the Commissioner under which an 
     application for supplemental security income benefits under 
     title XVI of the Social Security Act (42 U.S.C. 1381 et seq.) 
     from a household composed entirely of applicants for or 
     recipients of those benefits shall also be considered to be 
     an application for benefits under the food stamp program.
       ``(B) Certification; reporting requirements.--A household 
     covered by a memorandum of understanding under subparagraph 
     (A)--
       ``(i) shall be certified based exclusively on information 
     provided to the Commissioner, including such information as 
     the Secretary shall require to be collected under the terms 
     of any memorandum of understanding under this paragraph; and
       ``(ii) shall not be subject to any reporting requirement 
     under section 6(c).
       ``(C) Exceptions to value of allotment.--The Secretary 
     shall provide by regulation for such exceptions to section 
     8(a) as are necessary because a household covered by a 
     memorandum of understanding under subparagraph (A) did not 
     complete an application under subsection (e)(2).
       ``(D) Coverage.--In accordance with standards promulgated 
     by the Secretary, a memorandum of understanding under 
     subparagraph (A) need not cover all classes of applicants and 
     recipients referred to in subparagraph (A).
       ``(E) Exemption from certain application procedures.--In 
     the case of any member of a household covered by a memorandum 
     of understanding under subparagraph (A), the Commissioner 
     shall not be required to comply with--
       ``(i) subparagraph (B) or (C) of paragraph (1); or
       ``(ii) subsection (j)(1)(B).
       ``(F) Right to apply under regular program.--The Secretary 
     shall ensure that each household covered by a memorandum of 
     understanding under subparagraph (A) is informed that the 
     household may--
       ``(i)(I) submit an application under subsection (e)(2); and
       ``(II) have the eligibility and value of the allotment of 
     the household under the food stamp program determined without 
     regard to this paragraph; or
       ``(ii) decline to participate in the food stamp program.
       ``(G) Transition provision.--Notwithstanding the 
     requirement for the promulgation of regulations under 
     subparagraph (A), the Secretary may approve a request from a 
     State agency to enter into a memorandum of understanding in 
     accordance with this paragraph during the period--
       ``(i) beginning on the date of enactment of this paragraph; 
     and
       ``(ii) ending on the earlier of--

       ``(I) the date of promulgation of the regulations; or

[[Page 26709]]

       ``(II) the date that is 3 years after the date of enactment 
     of this paragraph.''.

       (b) Conforming Amendments.--Section 11(j)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2020(j)(1)) is amended--
       (1) by striking ``shall be informed'' and inserting the 
     following: ``shall be--
       ``(A) informed''; and
       (2) by striking ``program and informed'' and inserting the 
     following: ``program; and
       ``(B) informed''.

     SEC. 435. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(s) Transitional Benefits Option.--
       ``(1) In general.--A State agency may provide transitional 
     food stamp benefits to a household that ceases to receive 
     cash assistance under a State program funded under part A of 
     title IV of the Social Security Act (42 U.S.C. 601 et seq.).
       ``(2) Transitional benefits period.--Under paragraph (1), a 
     household may continue to receive food stamp benefits for a 
     period of not more than 6 months after the date on which cash 
     assistance is terminated.
       ``(3) Amount of benefits.--During the transitional benefits 
     period under paragraph (2), a household shall receive an 
     amount of food stamp benefits equal to the allotment received 
     in the month immediately preceding the date on which cash 
     assistance was terminated, adjusted for--
       ``(A) the change in household income as a result of the 
     termination of cash assistance; and
       ``(B) any changes in circumstances that may result in an 
     increase in the food stamp allotment of the household and 
     that the household elects to report.
       ``(4) Determination of future eligibility.--In the final 
     month of the transitional benefits period under paragraph 
     (2), the State agency may--
       ``(A) require the household to cooperate in a 
     redetermination of eligibility; and
       ``(B) initiate a new eligibility review period for the 
     household without regard to whether the preceding eligibility 
     review period has expired.
       ``(5) Limitation.--A household shall not be eligible for 
     transitional benefits under this subsection if the 
     household--
       ``(A) loses eligibility under section 6;
       ``(B) is sanctioned for a failure to perform an action 
     required by Federal, State, or local law relating to a cash 
     assistance program described in paragraph (1); or
       ``(C) is a member of any other category of households 
     designated by the State agency as ineligible for transitional 
     benefits.''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by adding at the end the following: ``The 
     limits specified in this section may be extended until the 
     end of any transitional benefit period established under 
     section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 436. QUALITY CONTROL.

       (a) In General.--Section 16 of the Food Stamp Act of 1977 
     (7 U.S.C. 2025) is amended--
       (1) by striking ``(c)(1) The'' and all that follows through 
     the end of paragraph (1) and inserting the following:
       ``(c) Quality Control.--
       ``(1) In general.--The food stamp program shall include a 
     system to enhance payment accuracy that has the following 
     elements:
       ``(A) Corrective action plans.--The Secretary shall foster 
     management improvements by the States by requiring State 
     agencies to develop and implement corrective action plans to 
     reduce payment errors.
       ``(B) Investigation and initial sanctions.--
       ``(i) Investigation.--Except as provided under subparagraph 
     (C), for any fiscal year in which the Secretary determines 
     that a 95 percent statistical probability exists that the 
     payment error rate of a State agency exceeds the national 
     performance measure for payment error rates announced under 
     paragraph (6) by more than 1 percentage point, other than for 
     good cause shown, the Secretary shall investigate the 
     administration by the State agency of the food stamp program 
     unless the Secretary determines that sufficient information 
     is already available to review the administration by the 
     State agency.
       ``(ii) Initial sanctions.--If an investigation under clause 
     (i) results in a determination that the State agency has been 
     seriously negligent (as determined under standards 
     promulgated by the Secretary), the State agency shall pay the 
     Secretary an amount that reflects the extent of such 
     negligence (as determined under standards promulgated by the 
     Secretary), not to exceed 5 percent of the amount provided to 
     the State agency under subsection (a) for the fiscal year.
       ``(C) Additional sanctions.--If, for any fiscal year, the 
     Secretary determines that a 95 percent statistical 
     probability exists that the payment error rate of a State 
     agency exceeds the national performance measure for payment 
     error rates announced under paragraph (6) by more than 1 
     percentage point, other than for good cause shown, and that 
     the State agency was sanctioned under this paragraph or was 
     the subject of an investigation or review under subparagraph 
     (B)(i) for each of the 2 immediately preceding fiscal years, 
     the State agency shall pay to the Secretary an amount equal 
     to the product obtained by multiplying--
       ``(i) the value of all allotments issued by the State 
     agency in the fiscal year;
       ``(ii) the lesser of--

       ``(I) the ratio that--

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

       ``(II) 1; and

       ``(iii) the amount by which the payment error rate of the 
     State agency for the fiscal year exceeds by more than 1 
     percentage point the national performance measure for the 
     fiscal year.'';
       (2) in paragraph (2)(A), by inserting before the semicolon 
     the following: ``, as adjusted downward as appropriate under 
     paragraph (10)'';
       (3) in the first sentence of paragraph (4), by striking ``, 
     enhanced administrative funding,'' and all that follows and 
     inserting ``under this subsection, high performance bonus 
     payment under paragraph (11), or claim for payment error 
     under paragraph (1).'';
       (4) in the first sentence of paragraph (5), by striking 
     ``to establish'' and all that follows and inserting the 
     following: ``to establish the payment error rate for the 
     State agency for the fiscal year, to comply with paragraph 
     (10), and to determine the amount of any high performance 
     bonus payment of the State agency under paragraph (11) or 
     claim under paragraph (1).'';
       (5) in the first sentence of paragraph (6), by striking 
     ``incentive payments or claims pursuant to paragraphs (1)(A) 
     and (1)(C),'' and inserting ``claims under paragraph (1),''; 
     and
       (6) by adding at the end the following:
       ``(10) Adjustments of payment error rate.--
       ``(A) In general.--
       ``(i) Fiscal year 2002.--Subject to clause (ii), for fiscal 
     year 2002, in applying paragraph (1), the Secretary shall 
     adjust the payment error rate determined under paragraph 
     (2)(A) as necessary to eliminate any increases in errors that 
     result from the State agency's serving a higher percentage of 
     households with earned income, households with 1 or more 
     members who are not United States citizens, or both, than the 
     lesser of, as the case may be--

       ``(I) the percentage of households of the corresponding 
     type that receive food stamps nationally; or
       ``(II) the percentage of--

       ``(aa) households with earned income that received food 
     stamps in the State in fiscal year 1992; or
       ``(bb) households with members who are not United States 
     citizens that received food stamps in the State in fiscal 
     year 1998.
       ``(ii) Expanded applicability to state agencies subject to 
     sanctions.--In the case of a State agency subject to 
     sanctions for fiscal year 2001 or any fiscal year thereafter 
     under paragraph (1), the adjustments described in clause (i) 
     shall apply to the State agency for the fiscal year.
       ``(B) Continuation or modification of adjustments.--For 
     fiscal year 2003 and each fiscal year thereafter, the 
     Secretary may determine whether the continuation or 
     modification of the adjustments described in subparagraph 
     (A)(i) or the substitution of other adjustments is most 
     consistent with achieving the purposes of this Act.''.
       (b) Conforming Amendment.--Section 22(h) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2031(h)) is amended by striking the 
     last sentence.
       (c) Applicability.--Except as otherwise provided in the 
     amendments made by subsection (a), the amendments made by 
     subsection (a) shall apply to fiscal year 2001 and each 
     fiscal year thereafter.

     SEC. 437. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE 
                   MEASURES.

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

     SEC. 438. BONUSES FOR STATES THAT DEMONSTRATE HIGH 
                   PERFORMANCE.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) (as amended by section 436(a)(6)) is 
     amended--
       (1) in the first sentence of paragraph (1), by striking 
     ``enhanced administrative funding to States with the lowest 
     error rates.'' and inserting ``bonus payments to States that

[[Page 26710]]

     demonstrate high levels of performance.''; and
       (2) by adding at the end the following:
       ``(11) High performance bonus payments.--
       ``(A) In general.--For each fiscal year, the Secretary 
     shall--
       ``(i) measure the performance of each State agency with 
     respect to each of the performance measures specified in 
     subparagraph (B); and
       ``(ii) subject to subparagraph (D), make high performance 
     bonus payments to the State agencies with the highest 
     achievement with respect to those performance measures.
       ``(B) Performance measures.--The performance measures 
     specified in this subparagraph are--
       ``(i)(I) the greatest dollar amount of total claims 
     collected in the fiscal year as a proportion of the 
     overpayment dollar amount in the previous fiscal year; and
       ``(II) the greatest percentage point improvement under 
     clause (i)(I) from the previous fiscal year to the fiscal 
     year;
       ``(ii) the greatest improvement from the previous fiscal 
     year to the fiscal year in the ratio, expressed as a 
     percentage, that--

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

       ``(aa) have incomes less than 130 percent of the poverty 
     line (as defined in section 673 of the Community Services 
     Block Grant Act (42 U.S.C. 9902));
       ``(bb) are eligible for food stamp benefits; and
       ``(cc) receive food stamps benefits; bears to

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

       ``(aa) have incomes less than 130 percent of the poverty 
     line (as so defined); and
       ``(bb) are eligible for food stamp benefits;
       ``(iii) the lowest overpayment error rate;
       ``(iv) the greatest percentage point improvement from the 
     previous fiscal year to the fiscal year in the overpayment 
     error rate;
       ``(v) the lowest negative error rate;
       ``(vi) the greatest percentage point improvement from the 
     previous year to the fiscal year in the negative error rate;
       ``(vii) the lowest underpayment error rate;
       ``(viii) the greatest percentage point improvement from the 
     previous year to the fiscal year in the underpayment error 
     rate;
       ``(ix) the greatest percentage of new applications 
     processed within the deadlines established under paragraphs 
     (3) and (9) of section 11(e); and
       ``(x) the least average period of time needed to process 
     applications under paragraphs (3) and (9) of section 11(e).
       ``(C) High performance bonus payments.--
       ``(i) Definition of caseload.--In this subparagraph, the 
     term `caseload' has the meaning given the term in section 
     6(o)(5)(A).
       ``(ii) Amount of payments.--

       ``(I) In general.--For each fiscal year, the Secretary 
     shall--

       ``(aa) make 1 high performance bonus payment of $10,000,000 
     for each of the 10 performance measures under subparagraph 
     (B); and
       ``(bb) allocate the high performance bonus payment with 
     respect to each performance measure in accordance with 
     subclauses (II) and (III).

       ``(II) Payment for performance measure concerning claims 
     collected.--For each fiscal year, the Secretary shall 
     allocate the high performance bonus payment made for the 
     performance measure under subparagraph (B)(i) among the 20 
     State agencies with the highest performance in the 
     performance measure in the ratio that--

       ``(aa) the caseload of each such State agency; bears to
       ``(bb) the caseloads of all such State agencies.

       ``(III) Payments for other performance measures.--For each 
     fiscal year, the Secretary shall allocate the high 
     performance bonus payment made for the performance measure 
     under each of clauses (ii) through (x) of subparagraph (B) 
     among the 10 State agencies with the highest performance in 
     the performance measure in the ratio that--

       ``(aa) the caseload of each such State agency; bears to
       ``(bb) the caseloads of all such State agencies.
       ``(iii) Determination of highest performers.--

       ``(I) In general.--In determining the highest performers 
     under clause (ii), the Secretary shall calculate applicable 
     percentages to 2 decimal places.
       ``(II) Determination in event of a tie.--If, under 
     subclause (I), 2 or more State agencies have the same 
     percentage with respect to a performance measure, the 
     Secretary shall calculate the percentage for the performance 
     measure to as many decimal places as are necessary to 
     determine which State agency has the greatest percentage.

       ``(D) Limitations for state agencies subject to 
     sanctions.--If, for any fiscal year, a State agency is 
     subject to a sanction under paragraph (1)--
       ``(i) the State agency shall not be eligible for a high 
     performance bonus payment under clause (iii), (iv), (vii), or 
     (viii) of subparagraph (B) for the fiscal year; and
       ``(ii) the State agency shall not receive a high 
     performance bonus payment for which the State agency is 
     otherwise eligible under this paragraph for the fiscal year 
     until the obligation of the State agency under the sanction 
     has been satisfied (as determined by the Secretary).
       ``(E) Payments not subject to judicial review.--A 
     determination by the Secretary whether, and in what amount, 
     to make a high performance bonus payment under this paragraph 
     shall not be subject to judicial review.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to fiscal year 2003 and each fiscal year 
     thereafter.

     SEC. 439. SIMPLIFIED FUNDING RULES FOR EMPLOYMENT AND 
                   TRAINING PROGRAMS.

       (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``, to remain available until expended,''; 
     and
       (B) by striking clause (vii) and inserting the following:
       ``(vii) to remain available until expended--

       ``(I) for fiscal year 2002, $122,000,000;
       ``(II) for fiscal year 2003, $129,000,000;
       ``(III) for fiscal year 2004, $135,000,000;
       ``(IV) for fiscal year 2005, $142,000,000; and
       ``(V) for fiscal year 2006, $149,000,000.'';

       (2) by striking subparagraph (B) and inserting the 
     following:
       ``(B) Allocation.--Funds made available under subparagraph 
     (A) shall be made available to and reallocated among State 
     agencies under a reasonable formula that--
       ``(i) is determined and adjusted by the Secretary; and
       ``(ii) takes into account the number of individuals who are 
     not exempt from the work requirement under section 6(o).''; 
     and
       (3) by striking subparagraphs (E) through (G).
       (b) Rescission of Carryover Funds.--Notwithstanding any 
     other provision of law, funds provided under section 
     16(h)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
     2025(h)(1)(A)) for any fiscal year before fiscal year 2002 
     shall cease to be available on the date of enactment of this 
     Act, unless obligated by a State agency before that date.
       (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``$25 per month'' and inserting ``an 
     amount not less than $25 per month''.
       (d) Federal Reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``$25'' and inserting ``the limit established by the 
     State agency under section 6(d)(4)(I)(i)(I)''.
       (e) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 440. REAUTHORIZATION OF FOOD STAMP PROGRAM.

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

     SEC. 441. EXPANDED GRANT AUTHORITY.

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

     SEC. 442. EXEMPTION OF WAIVERS FROM COST-NEUTRALITY 
                   REQUIREMENT.

       Section 17(b)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)) is amended by adding at the end the following:
       ``(E) Cost neutrality.--
       ``(i) Requirements for waivers.--

       ``(I) Estimation of costs and savings of waivers.--Before 
     approving a waiver for any demonstration project proposed 
     under this subsection, the Secretary shall estimate the costs 
     or savings likely to result from the waiver.
       ``(II) Approval of waivers.--The Secretary shall not 
     approve any waiver that the Secretary estimates will increase 
     costs to the Federal Government unless--

       ``(aa) exigent circumstances require the approval of the 
     waiver;
       ``(bb) the increase in costs is insignificant; or
       ``(cc) the increase in costs is necessary for a designated 
     research demonstration project under clause (ii).

[[Page 26711]]

       ``(III) Multiyear cost neutrality.--A waiver shall not be 
     considered to increase costs to the Federal Government based 
     on the impact of the waiver in any 1 fiscal year if the 
     waiver is not expected to increase costs to the Federal 
     Government over any 3-fiscal year period that includes the 
     fiscal year.

       ``(ii) Exemption from cost-neutrality requirement for 
     certain projects.--

       ``(I) In general.--For each fiscal year, the Secretary may 
     designate research demonstration projects that--

       ``(aa) have a substantial likelihood of producing 
     information on important issues of food stamp program design 
     or operation; and
       ``(bb) the Secretary estimates are likely to increase costs 
     to the Federal Government by a total of not more than 
     $50,000,000 during the period of fiscal years 2002 through 
     2006.

       ``(II) Exemption.--A project described in subclause (I) 
     shall be exempt from clause (i).

       ``(iii) Offsets in other programs.--In making 
     determinations of costs to the Federal Government under this 
     subparagraph, the Secretary shall estimate and consider 
     savings to the Federal Government in other programs in such a 
     manner as the Secretary determines to be appropriate.
       ``(iv) No look-back.--The Secretary shall not be required 
     to adjust any estimate made under this subparagraph to 
     reflect the actual costs of a demonstration project as 
     implemented by a State agency.''.

     SEC. 443. PROGRAM SIMPLIFICATION DEMONSTRATION PROJECTS.

       (a) Enhanced Waiver Authority.--Section 17 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2026) is amended by striking 
     subsection (e) and inserting the following:
       ``(e) Program Simplification Demonstration Projects.--
       ``(1) In general.--With the approval of the Secretary, not 
     more than 5 State agencies may carry out demonstration 
     projects to test, for a period of not more than 3 years, 
     promising approaches to simplifying the food stamp program.
       ``(2) Types of demonstration projects.--Each demonstration 
     project under paragraph (1) shall test changes in food stamp 
     program rules in not more than 1 of the following 2 areas:
       ``(A)(i) Reporting requirements under section 6(c).
       ``(ii) Verification methods under section 11(e)(3) 
     (including reliance on data from preceding periods that can 
     be obtained or verified electronically).
       ``(iii) A combination of reporting requirements and 
     verification methods.
       ``(B) The income standard of eligibility established under 
     section 5(c)(1), deductions under section 5(e), and income 
     budgeting procedures under section 5(f).
       ``(3) Selection of demonstration projects.--
       ``(A) In general.--The Secretary shall establish a 
     competitive process to select, from all projects proposed by 
     State agencies, the demonstration projects to be carried out 
     under this subsection based on which projects have the 
     greatest likelihood of producing useful information on 
     important issues of food stamp program design or operation, 
     as determined by the Secretary.
       ``(B) Goals.--In selecting demonstration projects, the 
     Secretary shall seek, at a minimum, to achieve a balance 
     between--
       ``(i) simplifying the food stamp program;
       ``(ii) reducing administrative burdens on State agencies, 
     households, and other individuals and entities;
       ``(iii) providing nutrition assistance to individuals most 
     in need; and
       ``(iv) improving access to nutrition assistance.
       ``(C) Projects not eligible for selection.--The Secretary 
     shall not select any demonstration project under this 
     subsection that the Secretary determines does not have a 
     strong likelihood of producing useful information on 
     important issues of food stamp program design or operation.
       ``(D) Diversity of approaches and areas.--In selecting 
     demonstration projects to be carried out under this 
     subsection, the Secretary shall seek to include--
       ``(i) projects that take diverse approaches;
       ``(ii) at least 1 project that will operate in an urban 
     area; and
       ``(ii) at least 1 project that will operate in a rural 
     area.
       ``(E) Maximum aggregate cost of projects.--The estimated 
     aggregate cost of projects selected by the Secretary under 
     this subsection shall not exceed $90,000,000.
       ``(4) Size of area.--Each demonstration project selected 
     under this subsection shall be carried out in an area that 
     contains not more than the greater of--
       ``(A) one-third of the total households receiving 
     allotments in the State; or
       ``(B) the minimum number of households needed to measure 
     the effects of the demonstration projects.
       ``(5) Evaluations.--
       ``(A) In general.--The Secretary shall provide, through 
     contract or other means, for detailed, statistically valid 
     evaluations to be conducted of each demonstration project 
     carried out under this subsection.
       ``(B) Minimum requirements.--Each evaluation under 
     subparagraph (A)--
       ``(i) shall include the study of control groups or areas; 
     and
       ``(ii) shall analyze, at a minimum, the effects of the 
     project design on--

       ``(I) costs of the food stamp program;
       ``(II) State administrative costs;
       ``(III) the integrity of the food stamp program, including 
     errors as measured under section 16(c);
       ``(IV) participation by households in need of nutrition 
     assistance; and
       ``(V) changes in allotment levels experienced by--

       ``(aa) households of various income levels;
       ``(bb) households with elderly, disabled, and employed 
     members;
       ``(cc) households with high shelter costs relative to the 
     incomes of the households; and
       ``(dd) households receiving subsidized housing, child care, 
     or health insurance.
       ``(C) Funding.--From funds made available to carry out this 
     Act, the Secretary shall reserve not more than $6,000,000 to 
     conduct evaluations under this paragraph.
       ``(6) Report to congress.--Not later than January 1, 2006, 
     the Secretary shall submit to Congress a report on the impact 
     of the demonstration projects carried out under this 
     subsection on the food stamp program, including the 
     effectiveness of the demonstration projects in--
       ``(A) delivering nutrition assistance to households most at 
     risk; and
       ``(B) reducing administrative burdens.''.
       (b) Conforming Amendment.--Section 17(b)(1)(B)(iv)(III)(ii) 
     of the Food Stamp Act of 1977 (7 U.S.C. 
     2026(b)(1)(B)(iv)(III)(ii)) is amended by striking 
     ``paragraph'' and inserting ``section''.

     SEC. 444. CONSOLIDATED BLOCK GRANTS.

       (a) Consolidated Funding.--Section 19(a)(1) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``the Commonwealth of Puerto Rico'' and 
     inserting ``governmental entities specified in subparagraph 
     (D)'';
       (B) in clause (ii), by striking ``and'' at the end; and
       (C) by striking clause (iii) and all that follows and 
     inserting the following:
       ``(iii) for fiscal year 2002, $1,356,000,000; and
       ``(iv) for each of fiscal years 2003 through 2006, the 
     amount provided in clause (iii), as adjusted by the 
     percentage by which the thrifty food plan has been adjusted 
     under section 3(o)(4) between June 30, 2001, and June 30 of 
     the immediately preceding fiscal year;

     to pay the expenditures for nutrition assistance programs for 
     needy persons as described in subparagraphs (B) and (C).'';
       (2) in subparagraph (B), by inserting ``of Puerto Rico'' 
     after ``Commonwealth'' each place it appears; and
       (3) by adding at the end the following:
       ``(C) American samoa.--For each fiscal year, the Secretary 
     shall reserve 0.4 percent of the funds made available under 
     subparagraph (A) for payment to American Samoa to pay the 
     expenditures for a nutrition assistance program extended 
     under section 601(c) of Public Law 96-597 (48 U.S.C. 
     1469d(c)).
       ``(D) Governmental entity.--A governmental entity specified 
     in this subparagraph is--
       ``(i) the Commonwealth of Puerto Rico; and
       ``(ii) for fiscal year 2003 and each fiscal year 
     thereafter, American Samoa.''.
       (b) Conforming Amendment.--Section 24 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2033) is repealed.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.

     SEC. 445. EXPANDED AVAILABILITY OF COMMODITIES.

       (a) In General.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) is amended--
       (1) in subsection (a)--
       (A) by striking ``From amounts'' and inserting the 
     following:
       ``(1) In general.--From amounts'';
       (B) by striking ``for each of fiscal years 1997 through 
     2002, the Secretary shall purchase $100,000,000 of'' and 
     inserting ``the Secretary shall use the amount specified in 
     paragraph (2) to purchase''; and
       (C) by adding at the end the following:
       ``(2) Amounts.--The amounts specified in this paragraph 
     are--
       ``(A) for each of fiscal years 1997 through 2001, 
     $100,000,000; and
       ``(B) for each of fiscal years 2002 through 2006, 
     $140,000,000.''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Related Costs.--
       ``(1) In general.--For each of fiscal years 2002 through 
     2006, the Secretary shall use $10,000,000 of the funds made 
     available under subsection (a) to pay the direct and indirect 
     costs of States relating to the processing, storing, 
     transporting, and distributing to eligible recipient agencies 
     of--
       ``(A) commodities purchased by the Secretary under 
     subsection (a); and
       ``(B) commodities acquired from other sources, including 
     commodities acquired by gleaning (as defined in section 
     111(a) of the Hunger Prevention Act of 1988 (7 U.S.C. 612c 
     note; Public Law 100-435)).
       ``(2) Allocation of funds.--The amount required to be used 
     in accordance with paragraph (1) shall be allocated in 
     accordance with section 204(a) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)).''.

[[Page 26712]]

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

                  Subtitle B--Miscellaneous Provisions

     SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

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

     SEC. 452. WORK REQUIREMENT FOR LEGAL IMMIGRANTS.

       (a) Working Immigrant Families.--Section 
     402(a)(2)(B)(ii)(I) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(B)(ii)(I)) is amended by striking ``40'' and 
     inserting ``40 (or, in the case of the specified Federal 
     program described in paragraph (3)(B), 16)''.
       (b) Conforming Amendments.--
       (1) Section 213A(a)(3)(A) of the Immigration and 
     Nationality Act (8 U.S.C. 1183a(a)(3)(A)) is amended by 
     striking ``40'' and inserting ``40 (or, in the case of the 
     specified Federal program described in section 402(a)(3)(B) 
     of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (8 U.S.C. 1612(a)(3)(B)), 16)''.
       (2) Section 403(c)(2) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1613(c)(2)) is amended by adding at the end the following:
       ``(L) Assistance or benefits under the Food Stamp Act of 
     1977 (7 U.S.C. 2011 et seq.).''.
       (3) Section 421(b)(2)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(b)(2)(A)) is amended by striking ``40'' and inserting 
     ``40 (or, in the case of the specified Federal program 
     described in section 402(a)(3)(B), 16)''.

     SEC. 453. QUALIFIED ALIENS.

       Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
     is amended by adding at the end the following:
       ``(L) Food stamp exception for certain qualified aliens.--
     With respect to eligibility for benefits for the specified 
     Federal program described in paragraph (3)(B), paragraph (1) 
     shall not apply to any individual who has continuously 
     resided in the United States as a qualified alien for a 
     period of 5 years or more.''.

     SEC. 454. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

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

     SEC. 455. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

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

     SEC. 456. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     carry out and expand a seniors farmers' market nutrition 
     program.
       (b) Program Purposes.--The purposes of the seniors farmers' 
     market nutrition program are--
       (1) to provide to low-income seniors resources in the form 
     of fresh, nutritious, unprepared, locally grown fruits, 
     vegetables, and herbs from farmers' markets, roadside stands, 
     and community-supported agriculture programs;
       (2) to increase domestic consumption of agricultural 
     commodities by expanding or assisting in the expansion of 
     domestic farmers' markets, roadside stands, and community-
     supported agriculture programs; and
       (3) to develop or aid in the development of new farmers' 
     markets, roadside stands, and community-supported agriculture 
     programs.
       (c) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as the Secretary considers 
     necessary to carry out the seniors farmers' market nutrition 
     program under this section.
       (d) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $15,000,000.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.

     SEC. 457. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL 
                   SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, 
                   INFANTS, AND CHILDREN.

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

       ``(I) for housing'';

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

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

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

     SEC. 458. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2001''.
       (b) Findings.--Congress finds that--
       (1) there are--
       (A) a critical need for compassionate individuals who are 
     committed to assisting people who suffer from hunger; and
       (B) a need for those individuals to initiate and administer 
     solutions to the hunger problem;
       (2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       (A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       (B) his commitment to public service; and
       (C) his great affection for the institution and the ideals 
     of Congress;
       (3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       (A) his compassion for individuals in need;
       (B) his high regard for public service; and
       (C) his lively exercise of political talents;
       (4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all; and
       (5) since those 2 outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, it is especially appropriate to 
     honor the memory of Mr. Emerson and Mr. Leland by 
     establishing a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     and the Committee on Foreign Relations of the Senate.

[[Page 26713]]

       (2) Board.--The term ``Board'' means the Board of Trustees 
     of the Program.
       (3) Fund.--The term ``Fund'' means the Congressional Hunger 
     Fellows Trust Fund established by subsection (g).
       (4) Program.--The term ``Program'' means the Congressional 
     Hunger Fellows Program established by subsection (d).
       (d) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government an entity to be known as the ``Congressional 
     Hunger Fellows Program''.
       (e) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board.--
       (A) Appointment.--
       (i) In general.--The Board shall be composed of 6 voting 
     members appointed under clause (ii) and 1 nonvoting ex-
     officio member designated by clause (iii).
       (ii) Voting members.--The voting members of the Board shall 
     be the following:

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

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

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

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

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

       (iii) Submission to congress.--Not later than 90 days after 
     the date of the first meeting of the Board, the Chairperson 
     of the Board shall submit to the appropriate congressional 
     committees a copy of the bylaws established by the Board.
       (B) Budget.--For each fiscal year in which the Program is 
     in operation--
       (i) the Board shall determine a budget for the Program for 
     the fiscal year; and
       (ii) all spending by the Program shall be in accordance 
     with the budget unless a change is approved by the Board.
       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the Program.
       (D) Allocation of funds to fellowships.--The Board shall 
     determine--
       (i) the priority of the programs to be carried out under 
     this section; and
       (ii) the amount of funds to be allocated for the 
     fellowships established under subsection (f)(3)(A).
       (f) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the Program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service;
       (B) to recognize the needs of people who are hungry and 
     poor;
       (C) to provide assistance and compassion for people in 
     need;
       (D) to increase awareness of the importance of public 
     service; and
       (E) to provide training and development opportunities for 
     the leaders through placement in programs operated by 
     appropriate entities.
       (2) Authority.--The Program may develop fellowships to 
     carry out the purposes of the Program, including the 
     fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The Program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

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

       (ii) Focus.--

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

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

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

       (iii) Amount of award.--

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

       (iv) Recognition of fellowship award.--

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

       (4) Evaluations.--
       (A) In general.--The Program shall conduct periodic 
     evaluations of the Bill Emerson and Mickey Leland Hunger 
     Fellowships.
       (B) Required elements.--Each evaluation shall include--
       (i) an assessment of the successful completion of the work 
     plan of each fellow;
       (ii) an assessment of the impact of the fellowship on the 
     fellows;
       (iii) an assessment of the accomplishment of the purposes 
     of the Program; and
       (iv) an assessment of the impact of each fellow on the 
     community.
       (g) Trust Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Congressional 
     Hunger Fellows Trust Fund'', consisting of--
       (A) amounts appropriated to the Fund under subsection (k);
       (B) any amounts earned on investment of amounts in the Fund 
     under paragraph (2); and
       (C) amounts received under subsection (i)(3)(A).
       (2) Investment of amounts.--
       (A) In general.--
       (i) Authority to invest.--The Secretary of the Treasury 
     shall invest such portion of the

[[Page 26714]]

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

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

       (B) Procurement of temporary and intermittent services.--To 
     carry out this section, the Program may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay payable for level GS-15 of the General Schedule.
       (C) Contract authority.--To carry out this section, the 
     Program may, with the approval of a majority of the members 
     of the Board, contract with and compensate Government and 
     private agencies or persons without regard to section 3709 of 
     the Revised Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--
       (i) In general.--Subject to clause (ii), the Program may 
     make such other expenditures as the Program considers 
     necessary to carry out this section.
       (ii) Prohibition.--The Program may not expend funds to 
     develop new or expanded projects at which fellows may be 
     placed.
       (j) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the Program carried 
     out during the preceding fiscal year that includes--
       (1) an analysis of the evaluations conducted under 
     subsection (f)(4) during the fiscal year; and
       (2) a statement of--
       (A) the total amount of funds attributable to gifts 
     received by the Program in the fiscal year under subsection 
     (i)(3)(A); and
       (B) the total amount of funds described in subparagraph (A) 
     that were expended to carry out the Program in the fiscal 
     year.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $18,000,000.
       (l) Effective Date.--This section takes effect on October 
     1, 2002.

     SEC. 459. EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title (other than subtitle C) take effect on 
     July 1, 2002, except that a State agency may, at the option 
     of the State agency, elect not to implement the amendments 
     until October 1, 2002.

                     Subtitle C--Commodity Programs

     SEC. 471. INCOME PROTECTION PRICES FOR COUNTER-CYCLICAL 
                   PAYMENTS.

       Section 114(c) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (as amended by section 111) is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) Income protection prices.--The income protection 
     prices for contract commodities under paragraph (1)(A) are as 
     follows:
       ``(A) Wheat, $3.39 per bushel.
       ``(B) Corn, $2.31 per bushel.
       ``(C) Grain sorghum, $2.31 per bushel.
       ``(D) Barley, $2.16 per bushel.
       ``(E) Oats, $1.52 per bushel.
       ``(F) Upland cotton, $0.669 per pound.
       ``(G) Rice, $9.16 per hundredweight.
       ``(H) Soybeans, $5.65 per bushel.
       ``(I) Oilseeds (other than soybeans), $0.103 per pound.''.

     SEC. 472. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

       (a) In General.--Section 132 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (as amended by section 
     123(a)) is amended to read as follows:

     ``SEC. 132. LOAN RATES.

       ``The loan rate for a marketing assistance loan under 
     section 131 for a loan commodity shall be--
       ``(1) in the case of wheat, $2.94 per bushel;
       ``(2) in the case of corn, $2.04 per bushel;
       ``(3) in the case of grain sorghum, $2.04 per bushel;
       ``(4) in the case of barley, $1.96 per bushel;
       ``(5) in the case of oats, $1.47 per bushel;
       ``(6) in the case of upland cotton, $0.539 per pound;
       ``(7) in the case of extra long staple cotton, $0.7965 per 
     pound;
       ``(8) in the case of rice, $6.71 per hundredweight;
       ``(9) in the case of soybeans, $5.10 per bushel;
       ``(10) in the case of oilseeds (other than soybeans), 
     $0.093 per pound;
       ``(11) in the case of graded wool, $1.00 per pound;
       ``(12) in the case of nongraded wool, $.40 per pound;
       ``(13) in the case of mohair, $2.00 per pound;
       ``(14) in the case of honey, $.60 per pound;
       ``(15) in the case of dry peas, $6.78 per hundredweight;
       ``(16) in the case of lentils, $12.79 per hundredweight;
       ``(17) in the case of large chickpeas, $17.44 per 
     hundredweight; and
       ``(18) in the case of small chickpeas, $8.10 per 
     hundredweight.''.
       (b) Adjustment of Loans.--
       (1) In general.--The amendment made by section 123(b) is 
     repealed.
       (2) Applicability.--Section 162 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7282) shall be 
     applied and administered as if the amendment made by section 
     123(b) had not been enacted.

     SEC. 473. EFFECTIVE DATE.

       This subtitle and the amendments made by this subtitle take 
     effect on the date of enactment of this Act.
                                  ____

  SA 2645. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2516 submitted by Mr. Fitzgerald and intended 
to be proposed to the amendment SA 2471 proposed by Mr. Daschle to the 
bill (S. 1731) to strengthen the

[[Page 26715]]

safety net for agricultural producers, to enhance resource conservation 
and rural development, to provide for farm credit, agricultural 
research, nutrition, and related programs, to ensure consumers abundant 
food and fiber, and for other purposes; which was ordered to lie on the 
table; as follows:

       In lieu of the matter to be inserted, insert a period and 
     the following:

               Subtitle E--Payment Limitation Commission

     SEC. 171. ESTABLISHMENT OF COMMISSION.

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

     SEC. 172. DUTIES.

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

     SEC. 173. POWERS.

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

     SEC. 174. COMMISSION PERSONNEL MATTERS.

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

     SEC. 175. FEDERAL ADVISORY COMMITTEE ACT.

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

     SEC. 176. FUNDING.

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

     SEC. 177. TERMINATION OF COMMISSION.

       The Commission shall terminate on the day after the date on 
     which the Commission submits the report of the Commission 
     under section 172(c).
                                  ____

  SA 2646. Mr. McCAIN (for himself, Mr. Gramm, Mr. Kerry, Mrs. Murray, 
and Mr. Smith of Oregon) submitted an amendment intended to be proposed 
by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place in the substitute, insert the 
     following:

     SEC.   . MARKET NAME FOR CATFISH.

       The term ``catfish'' shall be considered to be a common or 
     usual name (or part thereof) for any fish in keeping with 
     Food and Drug Administration procedures that follow 
     scientific standards and market practices for establishing 
     such names for the purposes of section 403 of the Federal 
     Food, Drug, and Cosmetic Act, including with respect to the 
     importation of such fish pursuant to section 801 of such Act.
                                  ____

  SA 2647. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

[[Page 26716]]



     SEC.   . OZARK FOOTHILLS RECREATION CONSERVATION & 
                   DEVELOPMENT COUNCIL FOR FOREST LANDOWNERS 
                   EDUCATION PROJECT IN BATESVILLE, ARKANSAS.

       (a) Availabillity of Funds.--Of the amount authorized by 
     this act, $200,000 is to be authorized for the Ozark 
     Foothills Recreation Conservation & Development council for 
     the Forest Landowners Education Project in Batesville, 
     Arkansas.
                                  ____

  SA 2648. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Strike the period at the end of subtitle C of title X and 
     insert the following:

     SEC. 10   . ANIMAL AND PLANT HEALTH INSPECTION SERVICE.

       (a) Definitions.--In this section.
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Administrator of the 
     Service.
       (2) Service.--The term ``Service'' means the Animal and 
     Plant Health Inspection Service of the Department of 
     Agriculture.
       (b) Exemption.--Notwithstanding any other provision of law, 
     any migratory bird management carried out by the Secretary 
     shall be exempt from the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.) (including regulations).
       (c) Permits; Management.--An agent, officer, or employee of 
     the Service that carries out any activity relating to 
     migratory bird management may, under the Migratory Bird 
     Treaty Act (16 U.S.C. 703 et seq.)--
       (1) issue a depredation permit to a stakeholder or 
     cooperator of the Service; and
       (2) manage and take migratory birds.
                                  ____

  SA 2649. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place insert the following:

     SEC.   . STUDY, EVALUATION AND REPORT ON THE CREATION OF A 
                   LITTER BANK BY THE DEPARTMENT OF AGRICULTURE AT 
                   THE UNIVERSITY OF ARKANSAS.

       The Secretary shall conduct a study to evaluate and report 
     back to Congress on the creation of a litter bank by the 
     Department of Agriculture at the University of Arkansas for 
     the purpose of enhancing health and viability of watersheds 
     in areas with large concentrations of animal producing units. 
     The Secretary shall evaluate the needs and means by which 
     litter may be collected and distributed to other watersheds 
     to reduce potential point source and non point source 
     phosphorous pollution. The report shall be submitted to 
     Congress no later than six months after the enactment of this 
     Act.
                                  ____

  SA 2650. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

                 TITLE __--ANIMAL ENTERPRISE TERRORISM

     SEC. __01. ANIMAL ENTERPRISE TERRORISM.

       (a) In General.--Section 43(a) of title 18, United States 
     Code, is amended to read as follows:
       ``(a) Offense.--
       ``(1) In general.--Whoever--
       ``(A) travels in interstate or foreign commerce, or uses or 
     causes to be used the mail or any facility in interstate or 
     foreign commerce for the purpose of causing physical 
     disruption to the functioning of an animal enterprise; and
       ``(B) intentionally damages or causes the loss of any 
     property (including animals or records) used by the animal 
     enterprise, or conspires to do so,

     shall be punished as provided for in subsection (b).
       (b) Penalties.--Section 43(b) of title 18, United States 
     Code, is amended to read as follows:
       ``(b) Penalties.--
       ``(1) Economic damage.--Any person who, in the course of a 
     violation of subsection (a), causes economic damage not 
     exceeding $10,000 to an animal enterprise shall be fined 
     under this title or imprisoned not more than 6 months, or 
     both.
       ``(2) Major economic damage.--Any person who, in the course 
     of a violation of subsection (a), causes economic damage 
     exceeding $10,000 to an animal enterprise shall be fined 
     under this title or imprisoned not more than 3 years, or 
     both.
       ``(3) Serious bodily injury.--Any person who, in the course 
     of a violation of subsection (a), causes serious bodily 
     injury to another individual shall be fined under this title 
     or imprisoned not more than 20 years, or both.
       ``(4) Death.--Any person who, in the course of a violation 
     of subsection (a), causes the death of an individual shall be 
     fined under this title or imprisoned for life or for any term 
     of years, or both.''.
       (c) Restitution.--Section 43(c) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) for any other economic damage resulting from the 
     offense.''.

     SEC. __02. NATIONAL ANIMAL TERRORISM INCIDENT CLEARINGHOUSE.

       (a) Definitions.--In this section:
       (1) Animal enterprise.--The term ``animal enterprise'' has 
     the same meaning as in section 43 of title 18, United States 
     Code.
       (2) Clearinghouse.--The term ``clearinghouse'' means the 
     clearinghouse established under subsection (b).
       (2) Director.--The term ``Director'' means the Director of 
     the Federal Bureau of Investigation.
       (b) National Clearinghouse.--The Director shall establish 
     and maintain a national clearinghouse for information on 
     incidents of violent crime and terrorism committed against or 
     directed at any animal enterprise.
       (c) Clearinghouse.--The clearinghouse shall--
       (1) accept, collect, and maintain information on incidents 
     described in subsection (b) that is submitted to the 
     clearinghouse by Federal, State, and local law enforcement 
     agencies, by law enforcement agencies of foreign countries, 
     and by victims of such incidents;
       (2) collate and index such information for purposes of 
     cross-referencing; and
       (3) upon request from a Federal, State, or local law 
     enforcement agency, or from a law enforcement agency of a 
     foreign country, provide such information to assist in the 
     investigation of an incident described in subsection (b).
       (d) Scope of Information.--The information maintained by 
     the clearinghouse for each incident shall, to the extent 
     practicable, include--
       (1) the date, time, and place of the incident;
       (2) details of the incident;
       (3) any available information on suspects or perpetrators 
     of the incident; and
       (4) any other relevant information.
       (e) Design of Clearinghouse.--The clearinghouse shall be 
     designed for maximum ease of use by participating law 
     enforcement agencies.
       (f) Publicity.--The Director shall publicize the existence 
     of the clearinghouse to law enforcement agencies by 
     appropriate means.
       (g) Resources.--In establishing and maintaining the 
     clearinghouse, the Director may--
       (1) through the Attorney General, utilize the resources of 
     any other department or agency of the Federal Government; and
       (2) accept assistance and information from private 
     organizations or individuals.
       (h) Coordination.--The Director shall carry out the 
     responsibilities of the Director under this section in 
     cooperation with the Director of the Bureau of Alcohol, 
     Tobacco, and Firearms.
                                  ____

  SA 2651. Mr. HUTCHINSON submitted an amendment intended to be 
proposed by him to the bill S. 1731, to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       At the appropriate place, insert the following:

                 TITLE __--ANIMAL ENTERPRISE TERRORISM

     SEC. __01. ANIMAL ENTERPRISE TERRORISM.

       (a) In General.--Section 43(a) of title 18, United States 
     Code, is amended to read as follows:
       ``(a) Offense.--
       ``(1) In general.--Whoever--
       ``(A) travels in interstate or foreign commerce, or uses or 
     causes to be used the mail or any facility in interstate or 
     foreign commerce for the purpose of causing physical 
     disruption to the functioning of an animal enterprise; and
       ``(B) intentionally damages or causes the loss of any 
     property (including animals or

[[Page 26717]]

     records) used by the animal enterprise, or conspires to do 
     so,

     shall be punished as provided for in subsection (b).
       (b) Penalties.--Section 43(b) of title 18, United States 
     Code, is amended to read as follows:
       ``(b) Penalties.--
       ``(1) Economic damage.--Any person who, in the course of a 
     violation of subsection (a), causes economic damage not 
     exceeding $10,000 to an animal enterprise shall be fined 
     under this title or imprisoned not more than 6 months, or 
     both.
       ``(2) Major economic damage.--Any person who, in the course 
     of a violation of subsection (a), causes economic damage 
     exceeding $10,000 to an animal enterprise shall be fined 
     under this title or imprisoned not more than 3 years, or 
     both.
       ``(3) Serious bodily injury.--Any person who, in the course 
     of a violation of subsection (a), causes serious bodily 
     injury to another individual shall be fined under this title 
     or imprisoned not more than 20 years, or both.
       ``(4) Death.--Any person who, in the course of a violation 
     of subsection (a), causes the death of an individual shall be 
     fined under this title or imprisoned for life or for any term 
     of years, or both.''.
       (c) Restitution.--Section 43(c) of title 18, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) for any other economic damage resulting from the 
     offense.''.
                                  ____

  SA 2652. Mr. HUTCHINSON submitted an amendment intended to be 
proposed to amendment SA 2471 submitted by Mr. Daschle and intended to 
be proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 984, line 2, strike the period at the end and 
     insert a period and the following:

     SEC. 10__. NATIONAL UNIFORMITY FOR FOOD.

       (a) National Uniformity.--Section 403A(a) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 343-1(a)) is 
     amended--
       (1) by striking ``or'' at the end of paragraph (4);
       (2) in paragraph (5), by striking the period and inserting 
     a comma; and
       (3) by adding at the end the following:
       ``(6) any requirement for the labeling of food described in 
     section 403(j), or 403(s), that is not identical to the 
     requirement of such section, or
       ``(7) any requirement for a food described in section 
     402(a)(1), 402(a)(2), 402(a)(6), 402(a)(7), 402(c), 402(f), 
     402(g), 404, 406, 408, 409, 512, or 721(a), that is not 
     identical to the requirement of such section.''.
       (b) Uniformity in Food Safety Warning Notification 
     Requirements.--Chapter IV of such Act (21 U.S.C. 341 et seq.) 
     is amended--
       (1) by redesignating sections 403B and 403C as sections 
     403C and 403D, respectively; and
       (2) by inserting after section 403A the following new 
     section:

     ``SEC. 403B. UNIFORMITY IN FOOD SAFETY WARNING NOTIFICATION 
                   REQUIREMENTS.

       ``(a) Uniformity Requirement.--
       ``(1) In general.--Except as provided in subsections (c) 
     and (d), no State or political subdivision of a State may, 
     directly or indirectly, establish or continue in effect under 
     any authority any notification requirement for a food that 
     provides for a warning concerning the safety of the food, or 
     any component or package of the food, unless such a 
     notification requirement has been prescribed under the 
     authority of this Act and the State or political subdivision 
     notification requirement is identical to the notification 
     requirement prescribed under the authority of this Act.


       ``(2) Definitions.--For purposes of paragraph (1)--
       ``(A) the term `notification requirement' includes any 
     mandatory disclosure requirement relating to the 
     dissemination of information about a food by a manufacturer 
     or distributor of a food in any manner, such as through a 
     label, labeling, poster, public notice, advertising, or any 
     other means of communication, except as provided in paragraph 
     (3);
       ``(B) the term `warning', used with respect to a food, 
     means any statement, vignette, or other representation that 
     indicates, directly or by implication, that the food presents 
     or may present a hazard to health or safety; and
       ``(C) a reference to a notification requirement that 
     provides for a warning shall not be construed to refer to any 
     requirement or prohibition relating to food safety that does 
     not involve a notification requirement.
       ``(3) Construction.--Nothing in this section shall be 
     construed to prohibit a State from conducting the State's 
     notification, disclosure, or other dissemination of 
     information, or to prohibit any action taken relating to a 
     mandatory recall or court injunction involving food 
     adulteration under a State statutory requirement identical to 
     a food adulteration requirement under this Act.
       ``(b) Review of Existing State Requirements.--
       ``(1) Existing state requirements; deferral.--Any 
     requirement that--
       ``(A)(i) is a State notification requirement for a food 
     that provides for a warning described in subsection (a) that 
     does not meet the uniformity requirement specified in 
     subsection (a); or
       ``(ii) is a State food safety requirement described in 
     paragraph (6) or (7) of section 403A that does not meet the 
     uniformity requirement specified in that paragraph; and
       ``(B) is in effect on the date of enactment of the National 
     Uniformity for Food Act of 2000,

     shall remain in effect for 180 days after that date of 
     enactment.
       ``(2) State petitions.--With respect to a State 
     notification or food safety requirement that is described in 
     paragraph (1), the State may petition the Secretary for an 
     exemption or a national standard under subsection (c). If a 
     State submits such a petition within 180 days after the date 
     of enactment of the National Uniformity for Food Act of 2000, 
     the notification or food safety requirement shall remain in 
     effect until the Secretary takes all administrative action on 
     the petition pursuant to paragraph (3), and the time periods 
     and provisions specified in paragraph (3) shall apply in lieu 
     of the time periods and provisions specified in subsection 
     (c)(3) (but not the time periods and provisions specified in 
     subsection (d)(2)).
       ``(3) Action on petitions.--
       ``(A) Publication.--Not later than 270 days after the date 
     of enactment of the National Uniformity for Food Act of 2000, 
     the Secretary shall publish a notice in the Federal Register 
     concerning any petition submitted under paragraph (2) and 
     shall provide 180 days for public comment on the petition.
       ``(B) Time periods.--Not later than 360 days after the end 
     of the period for public comment, the Secretary shall take 
     final agency action on the petition.
       ``(C) Judicial review.--The failure of the Secretary to 
     comply with any requirement of this paragraph shall 
     constitute final agency action for purposes of judicial 
     review. If the court conducting the review determines that 
     the Secretary has failed to comply with the requirement, the 
     court shall order the Secretary to comply within a period 
     determined to be appropriate by the court.
       ``(c) Exemptions and National Standards.--
       ``(1) Exemptions.--Any State may petition the Secretary to 
     provide by regulation an exemption from paragraph (6) or (7) 
     of section 403A(a) or subsection (a), for a requirement of 
     the State or a political subdivision of the State. The 
     Secretary may provide such an exemption, under such 
     conditions as the Secretary may impose, for such a 
     requirement that--
       ``(A) protects an important public interest that would 
     otherwise be unprotected, in the absence of the exemption;
       ``(B) would not cause any food to be in violation of any 
     applicable requirement or prohibition under Federal law; and
       ``(C) would not unduly burden interstate commerce, 
     balancing the importance of the public interest of the State 
     or political subdivision against the impact on interstate 
     commerce.
       ``(2) National standards.--Any State may petition the 
     Secretary to establish by regulation a national standard 
     respecting any requirement under this Act or the Fair 
     Packaging and Labeling Act (15 U.S.C. 1451 et seq.) relating 
     to the regulation of a food.
       ``(3) Action on petitions.--
       ``(A) Publication.--Not later than 30 days after receipt of 
     any petition under paragraph (1) or (2), the Secretary shall 
     publish such petition in the Federal Register for public 
     comment during a period specified by the Secretary.
       ``(B) Time periods for action.--Not later than 60 days 
     after the end of the period for public comment, the Secretary 
     shall take final agency action on the petition. If the 
     Secretary is unable to take final agency action on the 
     petition during the 60-day period, the Secretary shall inform 
     the petitioner, in writing, the reasons that taking the final 
     agency action is not possible, the date by which the final 
     agency action will be taken, and the final agency action that 
     will be taken or is likely to be taken. In every case, the 
     Secretary shall take final agency action on the petition not 
     later than 120 days after the end of the period for public 
     comment.
       ``(4) Judicial review.--The failure of the Secretary to 
     comply with any requirement of this subsection shall 
     constitute final agency action for purposes of judicial 
     review. If the court conducting the review determines that 
     the Secretary has failed to comply with the requirement, the 
     court shall order the Secretary to comply within a period 
     determined to be appropriate by the court.
       ``(d) Imminent Hazard Authority.--
       ``(1) In general.--A State may establish a requirement that 
     would otherwise violate paragraph (6) or (7) of section 
     403A(a) or subsection (a), if--

[[Page 26718]]

       ``(A) the requirement is needed to address an imminent 
     hazard to health that is likely to result in serious adverse 
     health consequences or death;
       ``(B) the State has notified the Secretary about the matter 
     involved and the Secretary has not initiated enforcement 
     action with respect to the matter;
       ``(C) a petition is submitted by the State under subsection 
     (c) for an exemption or national standard relating to the 
     requirement not later than 30 days after the date that the 
     State establishes the requirement under this subsection; and
       ``(D) the State institutes enforcement action with respect 
     to the matter in compliance with State law within 30 days 
     after the date that the State establishes the requirement 
     under this subsection.
       ``(2) Action on petition.--
       ``(A) In general.--The Secretary shall take final agency 
     action on any petition submitted under paragraph (1)(C) not 
     later than 7 days after the petition is received, and the 
     provisions of subsection (c) shall not apply to the petition.
       ``(B) Judicial review.--The failure of the Secretary to 
     comply with the requirement described in subparagraph (A) 
     shall constitute final agency action for purposes of judicial 
     review. If the court conducting the review determines that 
     the Secretary has failed to comply with the requirement, the 
     court shall order the Secretary to comply within a period 
     determined to be appropriate by the court.
       ``(3) Duration.--If a State establishes a requirement in 
     accordance with paragraph (1), the requirement may remain in 
     effect until the Secretary takes final agency action on a 
     petition submitted under paragraph (1)(C).
       ``(e) No Effect on Product Liability Law.--Nothing in this 
     section shall be construed to modify or otherwise affect the 
     product liability law of any State.
       ``(f) No Effect on Identical Law.--Nothing in this section 
     or section 403A relating to a food shall be construed to 
     prevent a State or political subdivision of a State from 
     establishing, enforcing, or continuing in effect a 
     requirement that is identical to a requirement of this Act, 
     whether or not the Secretary has promulgated a regulation or 
     issued a policy statement relating to the requirement.
       ``(g) No Effect on Certain State Law.--Nothing in this 
     section or section 403A relating to a food shall be construed 
     to prevent a State or political subdivision of a State from 
     establishing, enforcing, or continuing in effect a 
     requirement relating to--
       ``(1) freshness dating, open date labeling, grade labeling, 
     a State inspection stamp, religious dietary labeling, organic 
     or natural designation, returnable bottle labeling, unit 
     pricing, or a statement of geographic origin; or
       ``(2) a consumer advisory relating to food sanitation that 
     is imposed on a food establishment, or that is recommended by 
     the Secretary, under part 3-6 of the Food Code issued by the 
     Food and Drug Administration and referred to in the notice 
     published at 64 Fed. Reg. 8576 (1999) (or any corresponding 
     similar provision of such a Code).
       ``(h) Definition.--In section 403A and this section, the 
     term `requirement', used with respect to a Federal action or 
     prohibition, means a mandatory action or prohibition 
     established under this Act or the Fair Packaging and Labeling 
     Act (15 U.S.C. 1451 et seq.), as appropriate, or by a 
     regulation issued under or by a court order relating to, this 
     Act or the Fair Packaging and Labeling Act, as 
     appropriate.''.
       (c) Conforming Amendment.--Section 403A(b) of such Act (21 
     U.S.C. 343-1(b)) is amended by adding at the end the 
     following:

     ``The requirements of paragraphs (3) and (4) of section 
     403B(c) shall apply to any such petition, in the same manner 
     and to the same extent as the requirements apply to a 
     petition described in section 403B(c).''.
                                  ____

  SA 2653. Mr. KYL submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
by him to the bill (S. 1731), to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 53, line 24, strike the period at the end and 
     insert a period and the following:

     SEC. 1__. EXEMPTION OF MILK HANDLERS FROM MINIMUM PRICE 
                   REQUIREMENTS.

       (a) In General.--Section 8c(5) of the Agricultural 
     Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments 
     by the Agricultural Marketing Agreement Act of 1937, is 
     amended by adding at the end the following:
       ``(M) Exemption of milk handlers from minimum price 
     requirements.--Notwithstanding any other provision of Law, no 
     handler that sells Class I fluid milk within a marketing area 
     shall be exempt from any minimum milk price regulation 
     established under paragraph (A) if the total distribution of 
     Class I milk products of any handler's own farm production 
     within any federal marketing area in any month exceeds the 
     lesser of--
       ``(i) 3 percent of the total quantity of Class I milk 
     distributed in the marketing area; or
       ``(ii) 5,000,000 pound''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on January 1, 2002.
                                  ____

  SA 2654. Mr. ROBERTS submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 797, line 4, strike the period at the end and 
     insert a period and the following:

     SEC. 787. CARBON CYCLE RESEARCH.

       Section 221 of the Agricultural Risk Protection Act of 2000 
     (114 Stat. 407) is amended--
       (1) in subsection (a), by striking ``Of the amount'' and 
     all that follows through ``to provide'' and inserting ``To 
     the extent that funds are made available for the purpose, the 
     Secretary shall provide'';
       (2) in subsection (d), by striking ``under subsection (a)'' 
     and inserting ``to carry out this section''; and
       (3) by adding at the end the following:
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 2002 through 
     2011 such sums as are necessary to carry out this section.''.
                                  ____

  SA 2655. Mr. ROBERTS submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 39, strike line 5 and all that follows 
     through page 40, line 8, and insert the following:

     SEC. 126. LOAN DEFICIENCY PAYMENTS.

       Section 135 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7235) is amended to read as 
     follows:

     ``SEC. 135. LOAN DEFICIENCY PAYMENTS.

       ``(a) In General.--Except as provided in subsection (d), 
     the Secretary may make loan deficiency payments available 
     to--
       ``(1) producers on a farm that, although eligible to obtain 
     a marketing assistance loan under section 131 with respect to 
     a loan commodity, agree to forgo obtaining the loan for the 
     loan commodity in return for payments under this section; and
       ``(2) effective only for each of the 2000 and 2001 crop 
     years, producers that, although not eligible to obtain such a 
     marketing assistance loan under section 131, produce a loan 
     commodity.
       ``(b) Computation.--A loan deficiency payment under this 
     section shall be computed by multiplying--
       ``(1) the loan payment rate determined under subsection (c) 
     for the loan commodity; by
       ``(2) the quantity of the loan commodity produced by the 
     eligible producers, excluding any quantity for which the 
     producers obtain a loan under section 131.
       ``(c) Loan Payment Rate.--For purposes of this section, the 
     loan payment rate shall be the amount by which--
       ``(1) the loan rate established under section 132 for the 
     loan commodity; exceeds
       ``(2) the rate at which a loan for the commodity may be 
     repaid under section 134.
       ``(d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.
       ``(e) Time for Payment.--The Secretary shall make a payment 
     under this section to the producers on a farm with respect to 
     a quantity of a loan commodity as of the earlier of--
       ``(1) the date on which the producers on the farm marketed 
     or otherwise lost beneficial interest in the loan commodity, 
     as determined by the Secretary; or
       ``(2) the date the producers on the farm request the 
     payment.
       ``(f) Lost Beneficial Interest.--Effective for the 2001 
     crop only, if a producer eligible for a payment under 
     subsection (a) loses beneficial interest in the loan 
     commodity, the producer shall be eligible for the payment 
     determined as of the date the producer lost beneficial 
     interest in the loan commodity, as determined by the 
     Secretary.''.

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

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

[[Page 26719]]

     7231 et seq.) is amended by adding at the end the following:

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

       ``(a) In General.--For each of the 2002 through 2006 crops 
     of wheat, grain sorghum, barley, and oats, in the case of the 
     producers on a farm that would be eligible for a loan 
     deficiency payment under section 135 for wheat, grain 
     sorghum, barley, or oats, but that elects to use acreage 
     planted to the wheat, grain sorghum, barley, or oats for the 
     grazing of livestock, the Secretary shall make a payment to 
     the producers on the farm under this section if the producers 
     on the farm enter into an agreement with the Secretary to 
     forgo any other harvesting of the wheat, grain sorghum, 
     barley, or oats on the acreage.
       ``(b) Payment Amount.--The amount of a payment made to the 
     producers on a farm under this section shall be equal to the 
     amount obtained by multiplying--
       ``(1) the loan deficiency payment rate determined under 
     section 135(c) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       ``(2) the payment quantity obtained by multiplying--
       ``(A) the quantity of the grazed acreage on the farm with 
     respect to which the producers on the farm elect to forgo 
     harvesting of wheat, grain sorghum, barley, or oats; and
       ``(B) the payment yield for that contract commodity on the 
     farm.
       ``(c) Time, Manner, and Availability of Payment.--
       ``(1) Time and manner.--A payment under this section shall 
     be made at the same time and in the same manner as loan 
     deficiency payments are made under section 135.
       ``(2) Availability.--The Secretary shall establish an 
     availability period for the payment authorized by this 
     section that is consistent with the availability period for 
     wheat, grain sorghum, barley, and oats established by the 
     Secretary for marketing assistance loans authorized by this 
     subtitle.
       ``(d) Prohibition on Crop Insurance or Noninsured Crop 
     Assistance.--The producers on a farm shall not be eligible 
     for insurance under the Federal Crop Insurance Act (7 U.S.C. 
     1501 et seq.) or noninsured crop assistance under section 196 
     with respect to a 2002 through 2006 crop of wheat, grain 
     sorghum, barley, or oats planted on acreage that the 
     producers on the farm elect, in the agreement required by 
     subsection (a), to use for the grazing of livestock in lieu 
     of any other harvesting of the crop.''.
                                  ____

  SA 2656. Mr. ROBERTS submitted an amendment intended to be proposed 
to amendment SA 2471 submitted by Mr. Daschle and intended to be 
proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Beginning on page 58, strike line 22 and all that follows 
     through page 62, line 24, and insert the following:
       ``(f) Certification of Private Providers of Technical 
     Assistance.--
       ``(1) In general.--The Secretary shall, to the maximum 
     extent practicable, subject to paragraphs (2), (3), and (4), 
     establish a more effective and more broadly functioning 
     system for the delivery of technical assistance in support of 
     the conservation programs administered by the Secretary by--
       ``(A) integrating the use of third party technical 
     assistance providers (including farmers and ranchers) into 
     the technical assistance delivery system; and
       ``(B) using, to the maximum extent practicable, private, 
     third party providers.
       ``(2) Purpose.--To achieve the timely completion of 
     conservation plans and other technical assistance functions, 
     third party providers described in paragraph (1)(A) shall be 
     used to--
       ``(A) prepare conservation plans, including agronomically 
     sound nutrient management plans;
       ``(B) design, install and certify conservation practices;
       ``(C) train producers; and
       ``(D) carry out such other activities as the Secretary 
     determines to be appropriate.
       ``(3) Outside assistance.--
       ``(A) In general.--The Secretary may contract directly with 
     qualified persons not employed by the Department to provide 
     conservation technical assistance.
       ``(B) Payment by secretary.--
       ``(i) In general.--The Secretary shall provide a payment or 
     voucher to an owner or operator enrolled in a conservation 
     program administered by the Secretary if the owner or 
     operator elects to obtain technical assistance from a person 
     certified to provide technical assistance under this 
     subsection.
       ``(ii) Determination.--In determining whether to provide a 
     payment or voucher under clause (i), the Secretary shall seek 
     to maximize the assistance received from qualified persons to 
     most expeditiously and efficiently achieve the objectives of 
     this title.
       ``(4) Certification of public and private providers of 
     technical assistance.--
       ``(A) Establishment of procedures.--The Secretary shall 
     establish procedures for ensuring that only persons with the 
     training, experience, and capability to provide professional, 
     high quality assistance are certified by the Secretary to 
     provide, to agricultural producers and landowners 
     participating, or seeking to participate, in a conservation 
     program administered by the Secretary, technical assistance 
     in planning, designing, or certifying any aspect of a 
     particular project under the conservation program.
       ``(B) Public and private providers.--Certified technical 
     assistance providers shall include--
       ``(i) agricultural producers;
       ``(ii) agribusiness representatives;
       ``(iii) representatives from agricultural cooperatives;
       ``(iv) agricultural input retail dealers;
       ``(v) certified crop advisers;
       ``(vi) employees of the Department; or
       ``(vii) any group recognized by a Memorandum of 
     Understanding with the Department relating to certification.
       ``(C) Equivalence.--The Secretary shall ensure that any 
     certification program of the Department for public and 
     private technical service providers shall meet or exceed the 
     testing and continuing education standards of the Certified 
     Crop Adviser program.
       ``(D) Standards.--The Secretary shall establish standards 
     for the conduct of--
       ``(i) the certification process conducted by the Secretary; 
     and
       ``(ii) periodic recertification by the Secretary of 
     providers.
       ``(E) Certification required.--A provider may not provide 
     to any producer technical assistance described in 
     subparagraph (B) unless the provider is certified by the 
     Secretary.
       ``(F) Nonduplication of previous certification.--The 
     Secretary shall consider a certified provider to have skills 
     and qualifications in a particular area of technical 
     expertise if the skills and qualifications of the provider 
     have been certified by another entity the certification 
     program of which meets nationally recognized and accepted 
     standards for training, testing and otherwise establishing 
     professional qualifications (including the Certified Crop 
     Adviser program).
       ``(G) Fee.--
       ``(i) Payment.--

       ``(I) In general.--Except as provided in subclause (II), in 
     exchange for certification or recertification, a private 
     provider shall pay to the Secretary a fee in an amount 
     determined by the Secretary.
       ``(II) Prior certification.--The Secretary shall not 
     require a provider to pay a fee under subclause (I) for the 
     certification of skills and qualifications that have already 
     been certified by another entity under this subsection.

       ``(ii) Account.--A fee paid to the Secretary under clause 
     (i) shall be--

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

       ``(H) National training centers.--
       ``(i) In general.--The Secretary, acting in close 
     cooperation with the Certified Crop Adviser program, shall 
     establish training centers to facilitate the training and 
     certification of technical assistance providers under this 
     subsection.
       ``(ii) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subparagraph.
       ``(I) Other requirements.--The Secretary may establish such 
     other requirements as the Secretary determines are necessary 
     to carry out this subsection.
       ``(J) Regulations.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations to carry out this subsection.''
                                  ____

  SA 2657. Mr. CRAIG submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of section 1021, add the following:
       (c) Packers and Stockyards Act.--Notwithstanding any other 
     provision of this Act, any amendment to section 202 of the 
     Packers and Stockyards Act, 1921 (7. U.S.C. 192), made by 
     this Act shall have no effect.
                                  ____

  SA 2658. Mr. TORRICELLI (for himself and Mr. Smith of New Hampshire) 
submitted an amendment intended to be proposed by him to the bill S. 
1731, to strengthen the safety net for agricultural producers, to 
enhance resource

[[Page 26720]]

conservation and rural development, to provide for farm credit, 
agricultural research, nutrition, and related programs, to ensure 
consumers abundant food and fiber, and for other purposes; which was 
ordered to lie on the table; as follows:

       Strike section 335.
                                  ____

  SA 2659. Mr. SMITH of Oregon submitted an amendment intended to be 
proposed to amendment SA 2471 submitted by Mr. Daschle and intended to 
be proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       On page 937, between lines 16 and 17, insert the following:

     SEC. 10   . FEASIBILITY OF PRODUCER INDEMNIFICATION FROM 
                   GOVERNMENT-CAUSED DISASTERS.

       (1) Findings.--Congress finds that the implementation of 
     current federal disaster assistance programs fails to 
     adequately address situations where disaster conditions are 
     primarily the result of federal action.
       (2) Authority.--The Secretary is authorized and directed to 
     evaluate the feasibility of expanding crop insurance and 
     noninsured crop assistance disaster payment eligibility to 
     producers experiencing disaster conditions caused primarily 
     by federal agency action.
       (3) Evaluation and Recommendations.--Within 60 days of the 
     enactment of this bill, the Secretary shall report the 
     findings of this evaluation and recommendations to the Senate 
     Committee on Agriculture and the House Committee on 
     Agriculture.
                                  ____

  SA 2660. Mr. SMITH of Oregon (for himself, Mr. Craig, and Mr. Crapo) 
submitted an amendment intended to be proposed to amendment SA 2471 
submitted by Mr. Daschle and intended to be proposed to the bill (S. 
1731) to strengthen the safety net for agricultural producers, to 
enhance resource conservation and rural development, to provide for 
farm credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 937, between lines 16 and 17, insert the following:

     SEC. 10   . CROP INSURANCE AND NONINSURED CROP ASSISTANCE 
                   PROGRAMS.

       (a) Findings.--Congress finds that the implementation of 
     current federal disaster assistance programs fails to 
     adequately address situations where disaster conditions are 
     caused by federal actions.
       (b) Provisions.--
       (1) 7 U.S.C. 7333, as amended by P.L. 104-127, is amended--
       (i) in Section (a)(3) by striking ``or'' and
       (ii) in Section (a)(3) by striking ``as determined by the 
     Secretary.'' and inserting in lieu thereof ``or disaster 
     conditions caused primarily by federal agency action, as 
     determined by the Secretary.'' and
       (iii) in Section (c)(3) by striking ``or other natural 
     disaster, as determined by the Secretary.'' and inserting in 
     lieu thereof ``other natural disaster, or disaster conditions 
     caused primarily by federal agency action, as determined by 
     the Secretary,'' and
       (iv) in Section (d)(3)(iii) by striking ``or other natural 
     disaster (as determined by the Secretary);'' and inserting in 
     lieu thereof ``other natural disaster, or disaster conditions 
     caused primarily by federal agency action, as determined by 
     the Secretary;''.
       (2) 7 U.S.C. 1508 is amended--
       (i) in Section (a)(1) by striking ``or other natural 
     disaster (as determined by the Secretary.'' and inserting 
     ``natural disaster, or disaster conditions caused primarily 
     by federal action, as determined by the Secretary.'' and
       (ii) in Section (b)(1) by striking ``or other natural 
     disaster (as determined by the Secretary),'' and inserting in 
     lieu thereof ``other natural disaster, or disaster conditions 
     caused primarily by federal agency action, as determined by 
     the Secretary,''.
       (c) Administrative Rules.--The Secretary is encouraged to 
     review and amend administrative rules and guidelines 
     describing disaster conditions to accommodate situations 
     where planting decisions are based on federal water 
     allocations. The Secretary is further encouraged to review 
     the level of disaster payments to irrigated agricultural 
     producers in such cases where federal water allocations are 
     withheld prior to the planting period.
       (d) Effectiveness.--
       (1) Sections (a)(1) and (a)(2) of this section shall be 
     made effective only upon:
       (i) finding by the Secretary that implementation of 
     subsections (a)(1) and (a)(2):
       (A) do not affect the financial soundness of approved 
     insurance providers or the integrity of the federal crop 
     insurance program, and
       (B) additional authorities are not needed to achieve 
     actuarial soundness of implementing subsections (a)(1) and 
     (a)(2), and
       (ii) report of findings, as described in subsection 
     (d)(1)(i), to the Senate and House Committees on Agriculture.
                                  ____

  SA 2661. Mr. FITZGERALD submitted an amendment intended to be 
proposed to amendment SA 2471 submitted by Mr. Daschle and intended to 
be proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; which was ordered to lie on the table; 
as follows:

       Strike the period at the end of title I and insert a period 
     and the following:

               Subtitle E--Payment Limitation Commission

     SEC. 171. ESTABLISHMENT OF COMMISSION.

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

     SEC. 172. DUTIES.

       (a) Comprehensive Review.--The Commission shall conduct a 
     comprehensive review of--
       (1) the laws (including regulations) that apply or fail to 
     apply payment limitations to agricultural commodity and 
     conservation programs administered by the Secretary;
       (2) the impact that failing to apply effective payment 
     limitations has on--
       (A) the agricultural producers that participate in the 
     programs;
       (B) overproduction of agricultural commodities;
       (C) the prices that agricultural producers receive for 
     agricultural commodities in the marketplace; and

[[Page 26721]]

       (D) land prices and rental rates;
       (3) the feasibility of improving the application and 
     effectiveness of payment limitation requirements, including 
     the use of commodity certificates and the forfeiture of loan 
     collateral; and
       (4) alternatives to payment limitation requirements in 
     effect on the date of enactment of this Act that would apply 
     meaningful limitations to improve the effectiveness and 
     integrity of the requirements.
       (b) Recommendations.--In carrying out the review under 
     subsection (a), the Commission shall develop specific 
     recommendations for modifications to applicable legislation 
     and regulations that would improve payment limitation 
     requirements.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Commission shall submit to the 
     President, the Committee on Agriculture of the House of 
     Representatives, and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report containing the results of 
     the review conducted, and any recommendations developed, 
     under this section.

     SEC. 173. POWERS.

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

     SEC. 174. COMMISSION PERSONNEL MATTERS.

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

     SEC. 175. FEDERAL ADVISORY COMMITTEE ACT.

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

     SEC. 176. FUNDING.

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

     SEC. 177. TERMINATION OF COMMISSION.

       The Commission shall terminate on the day after the date on 
     which the Commission submits the report of the Commission 
     under section 172(c).
                                  ____

  SA 2662. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 97, between lines 10 and 11, insert the following:
       ``(C) Selection by producer.--If a county in which a 
     historical peanut producer described in subparagraph (A) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in subparagraph (A), for the purposes of 
     determining the 4-year average yield for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       ``(i) the State 4-year average yield of peanuts produced in 
     the State; or
       ``(ii) the average yield for the historical peanut producer 
     determined by the Secretary under subparagraph (A).
       On page 99, line 6, strike ``The'' and insert ``For each of 
     the 2002 and 2003 crop years, the''.
       On page 99, line 24, insert after ``section'' the 
     following: ``for the 2002 crop, and not later than 180 days 
     after January 1, 2003, for the 2003 crop''.
       Beginning on page 103, line 24, through page 104, line 1, 
     strike ``12-month marketing year'' and insert ``marketing 
     season''.
       On page 104, lines 5 and 6, strike ``12-month marketing 
     year'' and insert ``marketing season''.
       On page 105, lines 16 and 17, strike ``6 months of the 
     marketing year'' and insert ``2 months of the marketing 
     season''.
       On page 112, strike lines 20 through 22 and insert the 
     following:
       ``(A) a designated marketing association of peanut 
     producers that is approved by the Secretary, which may own or 
     construct necessary storage facilities;
       On page 116, strike lines 7 through 15 and insert the 
     following:
       ``(a) Official Inspection.--All peanuts placed under a 
     marketing assistance loan under section 158G or otherwise 
     sold or marketed shall be officially inspected and graded by 
     a Federal or State inspector.
                                  ____

  SA 2663. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 765, strike line 21 and insert the following:

     SEC. 748. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

       Section 604 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7642) is amended by 
     adding at the end the following:
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     each of fiscal years 2002 through 2006.''.
                                  ____

  SA 2664. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 945, strike lines 6 and 7 and insert the following:

     SEC. 1024. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.

       Section 2g of the Animal Welfare Act (7 U.S.C. 2132(g)) is 
     amended by striking ``excludes horses not used for research 
     purposes and'' and inserting the following: ``birds, rats of 
     the genus Rattus, and mice of the genus Mus bred for use in 
     research, horses note used for research purposes, and''.

     SEC. 1025. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.
                                  ____


  SA 2665. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 977, strike the period at the end of line 15 and 
     insert a period and the following:

     SEC. 10__. REPORT ON RATS, MICE, AND BIRDS.

       (a) In General.--Not later than 1 year after date enactment 
     of this Act, the Secretary of Agriculture shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate, a report on the implications of including rats, mice, 
     and birds within the definition of animal under the Animal 
     Welfare Act (7 U.S.C. 2131 et seq.).
       (b) Requirements.--The report under subsection (a) shall--
       (1) be completed with input, consultation, and 
     recommendations from the Secretary of Health and Human 
     Services and the Institute for Animal Laboratory Research 
     within the National Academy of Sciences;
       (2) contain a description of the number and types of 
     entities that currently use rats, mice, and birds, and are 
     not subjected to regulations of the Department of Agriculture 
     or

[[Page 26722]]

     Department of Health and Human Services, or accreditation 
     requirements of the Association for Assessment and 
     Accreditation of Laboratory Animal Care;
       (3) contain an estimate of the additional costs likely to 
     be incurred by breeders and research facilities resulting 
     from the additional regulatory requirements; and
       (4) contain an estimate of the additional funding that the 
     Animal and Plant Health Inspection Service would require to 
     be able to ensure that the quality and frequency of 
     inspections by the Department of Agriculture relating to 
     other animals are not diminished by the increase in the 
     number of facilities that would require inspections if the 
     definition were amended to include rats, mice, and birds.
                                  ____

  SA 2666. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 984, line 2, strike the period at the end and 
     insert the following:

     SEC. 10__. STUDY OF NONAMBULATORY LIVESTOCK.

       The Secretary--
       (1) shall investigate and submit to Congress a report on--
       (A) the scope and cause of nonambulatory livestock; and
       (B) the extent to which nonambulatory livestock may present 
     handling and disposition problems during marketing; and
       (2) based on the findings in the report, may promulgate 
     regulations for the appropriate treatment, handling, and 
     disposition of nonambulatory livestock at market agencies and 
     dealers.
                                  ____

  SA 2667. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle  and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 128, line 8, strike the period at the end and 
     insert a period and the following:

     SEC. 1   . RESERVE STOCK LEVEL.

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

  SA 2668. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle  and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 374, line 12, strike ``more than 50 percent'' and 
     insert the words ``40 percent or more''.
                                  ____

  SA 2669. Mr. HELMS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle  and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       Beginning on page 97, strike line 11 and all that follows 
     through page 116, line 15, and insert the following:
       ``(C) Selection by producer.--If a county in which a 
     historical peanut producer described in subparagraph (A) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in subparagraph (A), for the purposes of 
     determining the 4-year average yield for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       ``(i) the State 4-year average yield of peanuts produced in 
     the State; or
       ``(ii) the average yield for the historical peanut producer 
     determined by the Secretary under subparagraph (A).
       ``(2) Acreage average.--Except as provided in paragraph 
     (3), the Secretary shall determine, for the historical peanut 
     producer, the 4-year average of--
       ``(A) acreage planted to peanuts on all farms for harvest 
     during the 1998 through 2001 crop years; and
       ``(B) any acreage that was prevented from being planting to 
     peanuts during the crop years because of drought, flood, or 
     other natural disaster, or other condition beyond the control 
     of the historical peanut producer, as determined by the 
     Secretary.
       ``(3) Selection by producer.--If a county in which a 
     historical peanut producer described in paragraph (2) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in paragraph (2), for the purposes of 
     determining the 4-year average acreage for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       ``(A) the State average of acreage actually planted to 
     peanuts; or
       ``(B) the average of acreage for the historical peanut 
     producer determined by the Secretary under paragraph (2).
       ``(4) Time for determinations; factors.--
       ``(A) Timing.--The Secretary shall make the determinations 
     required by this subsection not later than 90 days after the 
     date of enactment of this section.
       ``(B) Factors.--In making the determinations, the Secretary 
     shall take into account changes in the number and identity of 
     historical peanut producers sharing in the risk of producing 
     a peanut crop since the 1998 crop year, including providing a 
     method for the assignment of average acres and average yield 
     to a farm when a historical peanut producer is no longer 
     living or an entity composed of historical peanut producers 
     has been dissolved.
       ``(b) Assignment of Yield and Acres to Farms.--
       ``(1) Assignment by historical peanut producers.--For each 
     of the 2002 and 2003 crop years, the Secretary shall provide 
     each historical peanut producer with an opportunity to assign 
     the average peanut yield and average acreage determined under 
     subsection (a) for the historical peanut producer to cropland 
     on a farm.
       ``(2) Payment yield.--The average of all of the yields 
     assigned by historical peanut producers to a farm shall be 
     considered to be the payment yield for the farm for the 
     purpose of making direct payments and counter-cyclical 
     payments under this chapter.
       ``(3) Peanut acres.--Subject to subsection (e), the total 
     number of acres assigned by historical peanut producers to a 
     farm shall be considered to be the peanut acres for the farm 
     for the purpose of making direct payments and counter-
     cyclical payments under this chapter.
       ``(c) Election.--Not later than 180 days after the date of 
     enactment of this section for the 2002 crop, and not later 
     than 180 days after January 1, 2003, for the 2003 crop, a 
     historical peanut producer shall notify the Secretary of the 
     assignments described in subsection (b).
       ``(d) Payment Acres.--The payment acres for peanuts on a 
     farm shall be equal to 85 percent of the peanut acres 
     assigned to the farm.
       ``(e) Prevention of Excess Peanut Acres.--
       ``(1) Required reduction.--If the total of the peanut acres 
     for a farm, together with the acreage described in paragraph 
     (3), exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of peanut acres for the 
     farm or contract acreage for 1 or more covered commodities 
     for the farm as necessary so that the total of the peanut 
     acres and acreage described in paragraph (3) does not exceed 
     the actual cropland acreage of the farm.
       ``(2) Selection of acres.--The Secretary shall give the 
     peanut producers on the farm the opportunity to select the 
     peanut acres or contract acreage against which the reduction 
     will be made.
       ``(3) Other acreage.--For the purposes of paragraph (1), 
     the Secretary shall include--
       ``(A) any contract acreage for the farm under subtitle B;
       ``(B) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       ``(C) any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       ``(3) Double-cropped acreage.--In applying paragraph (1), 
     the Secretary shall take into account additional acreage as a 
     result of an established double-cropping history on a farm, 
     as determined by the Secretary.

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

       ``(a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make direct payments to peanut 
     producers on a farm with peanut acres under section 158B and 
     a payment yield for peanuts under section 158B.
       ``(b) Payment Rate.--The payment rate used to make direct 
     payments with respect

[[Page 26723]]

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

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

       ``(a) In General.--For each of the 2002 through 2006 crops 
     of peanuts, the Secretary shall make counter-cyclical 
     payments with respect to peanuts if the Secretary determines 
     that the effective price for peanuts is less than the income 
     protection price for peanuts.
       ``(b) Effective Price.--For the purposes of subsection (a), 
     the effective price for peanuts is equal to the total of--
       ``(1) the greater of--
       ``(A) the national average market price received by peanut 
     producers during the marketing season for peanuts, as 
     determined by the Secretary; or
       ``(B) the national average loan rate for a marketing 
     assistance loan for peanuts under section 158G in effect for 
     the marketing season for peanuts under this chapter; and
       ``(2) the payment rate in effect for peanuts under section 
     158C for the purpose of making direct payments with respect 
     to peanuts.
       ``(c) Income Protection Price.--For the purposes of 
     subsection (a), the income protection price for peanuts shall 
     be equal to $520 per ton.
       ``(d) Payment Amount.--The amount of the counter-cyclical 
     payment to be paid to the peanut producers on a farm for a 
     crop year shall be equal to the product obtained by 
     multiplying--
       ``(1) the payment rate specified in subsection (e);
       ``(2) the payment acres on the farm; by
       ``(3) the payment yield for the farm.
       ``(e) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to peanuts for a crop year 
     shall be equal to the difference between--
       ``(1) the income protection price for peanuts; and
       ``(2) the effective price determined under subsection (b) 
     for peanuts.
       ``(f) Time for Payments.--
       ``(1) In general.--The Secretary shall make counter-
     cyclical payments to peanut producers on a farm under this 
     section for a crop of peanuts as soon as practicable after 
     determining under subsection (a) that the payments are 
     required for the crop year.
       ``(2) Partial payment.--
       ``(A) In general.--At the option of the Secretary, the 
     peanut producers on a farm may elect to receive up to 40 
     percent of the projected counter-cyclical payment to be made 
     under this section for a crop of peanuts on completion of the 
     first 2 months of the marketing season for the crop, as 
     determined by the Secretary.
       ``(B) Repayment.--The peanut producers on a farm shall 
     repay to the Secretary the amount, if any, by which the 
     payment received by producers on the farm (including any 
     partial payments) exceeds the counter-cyclical payment the 
     producers on the farm are eligible for under this section.

     ``SEC. 158E. PRODUCER AGREEMENTS.

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

     ``SEC. 158F. PLANTING FLEXIBILITY.

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

[[Page 26724]]

     each acre planted to the agricultural commodity.

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

       ``(a) Nonrecourse Loans Available.--
       ``(1) Availability.--For each of the 2002 through 2006 
     crops of peanuts, the Secretary shall make available to 
     peanut producers on a farm nonrecourse marketing assistance 
     loans for peanuts produced on the farm.
       ``(2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under subsection (b).
       ``(3) Eligible production.--The producers on a farm shall 
     be eligible for a marketing assistance loan under this 
     section for any quantity of peanuts produced on the farm.
       ``(4) Treatment of certain commingled commodities.--In 
     carrying out this section, the Secretary shall make loans to 
     peanut producers on a farm that would be eligible to obtain a 
     marketing assistance loan but for the fact the peanuts owned 
     by the peanut producers on the farm are commingled with other 
     peanuts of other producers in facilities unlicensed for the 
     storage of agricultural commodities by the Secretary or a 
     State licensing authority, if the peanut producers on a farm 
     obtaining the loan agree to immediately redeem the loan 
     collateral in accordance with section 158E.
       ``(5) Options for obtaining loan.--A marketing assistance 
     loan under this subsection, and loan deficiency payments 
     under subsection (e), may be obtained at the option of the 
     peanut producers on a farm through--
       ``(A) a designated marketing association of peanut 
     producers that is approved by the Secretary, which may own or 
     construct necessary storage facilities;
       ``(B) the Farm Service Agency; or
       ``(C) a loan servicing agent approved by the Secretary.
       ``(b) Loan Rate.--The loan rate for a marketing assistance 
     loan for peanuts under subsection (a) shall be equal to $400 
     per ton.
       ``(c) Term of Loan.--
       ``(1) In general.--A marketing assistance loan for peanuts 
     under subsection (a) shall have a term of 9 months beginning 
     on the first day of the first month after the month in which 
     the loan is made.
       ``(2) Extensions prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for peanuts under 
     subsection (a).
       ``(d) Repayment Rate.--The Secretary shall permit peanut 
     producers on a farm to repay a marketing assistance loan for 
     peanuts under subsection (a) at a rate that is the lesser 
     of--
       ``(1) the loan rate established for peanuts under 
     subsection (b), plus interest (as determined by the 
     Secretary); or
       ``(2) a rate that the Secretary determines will--
       ``(A) minimize potential loan forfeitures;
       ``(B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       ``(C) minimize the cost incurred by the Federal Government 
     in storing peanuts; and
       ``(D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       ``(e) Loan Deficiency Payments.--
       ``(1) Availability.--The Secretary may make loan deficiency 
     payments available to the peanut producers on a farm that, 
     although eligible to obtain a marketing assistance loan for 
     peanuts under subsection (a), agree to forgo obtaining the 
     loan for the peanuts in return for payments under this 
     subsection.
       ``(2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       ``(A) the loan payment rate determined under paragraph (3) 
     for peanuts; by
       ``(B) the quantity of the peanuts produced by the peanut 
     producers on the farm, excluding any quantity for which the 
     producers on the farm obtain a loan under subsection (a).
       ``(3) Loan payment rate.--For the purposes of this 
     subsection, the loan payment rate shall be the amount by 
     which--
       ``(A) the loan rate established under subsection (b); 
     exceeds
       ``(B) the rate at which a loan may be repaid under 
     subsection (d).
       ``(4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the peanut producers on a farm with 
     respect to a quantity of peanuts as of the earlier of--
       ``(A) the date on which the peanut producers on the farm 
     marketed or otherwise lost beneficial interest in the 
     peanuts, as determined by the Secretary; or
       ``(B) the date the peanut producers on the farm request the 
     payment.
       ``(f) Compliance With Conservation Requirements.--As a 
     condition of the receipt of a marketing assistance loan under 
     subsection (a), the peanut producers on a farm shall comply 
     during the term of the loan with--
       ``(1) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       ``(2) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       ``(g) Reimbursable Agreements and Payment of Expenses.--To 
     the maximum extent practicable, the Secretary shall implement 
     any reimbursable agreements or provide for the payment of 
     expenses under this chapter in a manner that is consistent 
     with the implementation of the agreements or payment of the 
     expenses for other commodities.

     ``SEC. 158H. QUALITY IMPROVEMENT.

       ``(a) Official Inspection.--All peanuts placed under a 
     marketing assistance loan under section 158G or otherwise 
     sold or marketed shall be officially inspected and graded by 
     a Federal or State inspector.
                                  ____

  SA 2670. Mrs. BOXER submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 202, strike line 24 and insert the following:
       (a) Regional Equity.--Section 1230(b) of the Food Security 
     Act of 1985 (16 U.S.C. 3830(b)) is amended by adding at the 
     end the following:
       ``(3) Regional equity.--Not later than 1 year after the 
     date of enactment of this paragraph, the Secretary shall 
     reform compensation, selection, and other policies and rules 
     to ensure that the overall enrollment of land in the 
     comprehensive conservation enhancement program--
       ``(A) is equitable on a regional basis;
       ``(B) promotes achievement of important environmental 
     goals; and
       ``(C) does not discriminate against regions in which the 
     cost of land is high.''.
       (b) Reauthorization.--''.
                                  ____

  SA 2671. Mr. COCHRAN (for himself and Mr. Roberts) proposed an 
amendment to amendment SA 2471 submitted by Mr. Daschle and intended to 
be proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide for farm credit, agricultural research, 
nutrition, and related programs, to ensure consumers abundant food and 
fiber, and for other purposes; as follows:

       In lieu of the matter proposed to be inserted insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the 
     ``Agriculture, Conservation, and Rural Enhancement Act of 
     2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

                      TITLE I--COMMODITY PROGRAMS

Sec. 100. Definitions.

Subtitle A--Fixed Decoupled Payments and Farm Counter-Cyclical Savings 
                            Account Payments

Sec. 101. Payments to eligible producers.
Sec. 102. Payment yields.
Sec. 103. Base acres and payment acres for farms.
Sec. 104. Fixed, decoupled payments.
Sec. 105. Farm counter-cyclical savings accounts.
Sec. 106. Producer agreements.
Sec. 107. Planting flexibility.
Sec. 108. Production flexibility contracts.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 121. Nonrecourse marketing assistance loans for covered 
              commodities.
Sec. 122. Loan rates.
Sec. 123. Term of loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency payments.
Sec. 126. Payments in lieu of loan deficiency payments for grazed 
              acreage.
Sec. 127. Special marketing loan provisions for upland cotton.
Sec. 128. Special competitive provisions for extra long staple cotton.
Sec. 129. Recourse loans for high moisture feed grains and seed cotton 
              and other fibers.
Sec. 130. Nonrecourse marketing assistance loans for wool and mohair.
Sec. 131. Nonrecourse marketing assistance loans for honey.

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Dairy export incentive and dairy indemnity programs.
Sec. 143. Fluid milk promotion.
Sec. 144. Dairy product mandatory reporting.
Sec. 145. Exemption of milk handlers from minimum price requirements.

                            Chapter 2--Sugar

Sec. 151. Sugar program.
Sec. 152. Storage facility loans.

[[Page 26725]]

Sec. 153. Flexible marketing allotments for sugar.

                           Chapter 3--Peanuts

Sec. 161. Definitions.
Sec. 162. Payment yields, peanut acres, and payment acres for farms.
Sec. 163. Fixed, decoupled payments for peanuts.
Sec. 164. Counter-cyclical payments for peanuts.
Sec. 165. Producer agreements.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance loans and loan deficiency payments for 
              peanuts.
Sec. 168. Quality improvement.
Sec. 169. Termination of marketing quotas for peanuts and compensation 
              to peanut quota holders.

                       Subtitle D--Administration

Sec. 171. Administration.
Sec. 172. Adjustments of loans.
Sec. 173. Commodity Credit Corporation interest rate.
Sec. 174. Personal liability of producers for deficiencies.
Sec. 175. Commodity Credit Corporation sales price restrictions.
Sec. 176. Commodity certificates.
Sec. 177. Assignment of payments.
Sec. 178. Payment limitations.

                  Subtitle E--Price Support Authority

Sec. 181. Suspension and repeal of price support authority.

             Subtitle F--Miscellaneous Commodity Provision

Sec. 191. Agricultural producers supplemental payments and assistance.

                         TITLE II--CONSERVATION

             Subtitle A--Working Land Conservation Programs

Sec. 201. Environmental quality incentives program.
Sec. 202. Conservation reserve program.
Sec. 203. Wetlands reserve program.
Sec. 204. Farmland protection program.
Sec. 205. Wildlife habitat incentive program.
Sec. 206. Grassland reserve program.
Sec. 207. Resource conservation and development program.
Sec. 208. Conservation of private grazing land.
Sec. 209. Other conservation programs.

            Subtitle B--Miscellaneous Reforms and Extensions

Sec. 211. Privacy of personal information relating to natural resources 
              conservation programs.
Sec. 212. Administrative requirements for conservation programs.
Sec. 213. Reform and assessment of conservation programs.
Sec. 214. Certification of private providers of technical assistance.
Sec. 215. Extension of conservation authorities.
Sec. 216. Use of symbols, slogans, and logos.
Sec. 217. Technical amendments.
Sec. 218. Effect of amendments.

                            TITLE III--TRADE

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

Sec. 301. United States policy.
Sec. 302. Provision of agricultural commodities.
Sec. 303. Generation and use of currencies by private voluntary 
              organizations and cooperatives.
Sec. 304. Levels of assistance.
Sec. 305. Food Aid Consultative Group.
Sec. 306. Maximum level of expenditures.
Sec. 307. Administration.
Sec. 308. Assistance for stockpiling and rapid transportation, 
              delivery, and distribution of shelf-stable prepackaged 
              foods.
Sec. 309. Sale procedure.
Sec. 310. Prepositioning.
Sec. 311. Expiration date.
Sec. 312. Micronutrient fortification program.
Sec. 313. Farmer-to-farmer program.

               Subtitle B--Agricultural Trade Act of 1978

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

        Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 331. Bill Emerson Humanitarian Trust.
Sec. 332. Emerging markets.
Sec. 333. Biotechnology and agricultural trade program.
Sec. 334. Surplus commodities for developing or friendly countries.
Sec. 335. Agricultural trade with Cuba.

                      TITLE IV--NUTRITION PROGRAMS

Sec. 401. Short title.

                     Subtitle A--Food Stamp Program

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

                  Subtitle B--Miscellaneous Provisions

Sec. 451. Reauthorization of commodity programs.
Sec. 452. Partial restoration of benefits to legal immigrants.
Sec. 453. Commodities for school lunch programs.
Sec. 454. Eligibility for free and reduced price meals.
Sec. 455. Eligibility for assistance under the special supplemental 
              nutrition program for women, infants, and children.
Sec. 456. Seniors farmers' market nutrition program.
Sec. 457. Fruit and vegetable pilot program.
Sec. 458. Congressional Hunger Fellows Program.
Sec. 459. Nutrition information and awareness pilot program.
Sec. 460. Effective date.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

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

                      Subtitle B--Operating Loans

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

                 Subtitle C--Administrative Provisions

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

                        Subtitle D--Farm Credit

Sec. 541. Repeal of burdensome approval requirements.

[[Page 26726]]

Sec. 542. Banks for cooperatives.
Sec. 543. Insurance Corporation premiums.
Sec. 544. Board of Directors of the Federal Agricultural Mortgage 
              Corporation.

                     Subtitle E--General Provisions

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

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

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

           Subtitle B--National Rural Development Partnership

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

        Subtitle C--Consolidated Farm and Rural Development Act

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

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

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

             Subtitle E--Rural Electrification Act of 1936

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

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

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

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

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

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

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

Sec. 741. Initiative for Future Agriculture and Food Systems.
Sec. 742. Partnerships for high-value agricultural product quality 
              research.
Sec. 743. Precision agriculture.
Sec. 744. Biobased products.
Sec. 745. Thomas Jefferson Initiative for Crop Diversification.
Sec. 746. Integrated research, education, and extension competitive 
              grants program.
Sec. 747. Support for research regarding diseases of wheat and barley 
              caused by fusarium graminearum.
Sec. 748. Food Animal Residue Avoidance Database program.
Sec. 749. Office of Pest Management Policy.

                     Subtitle D--Land-Grant Funding

                      Chapter 1--1862 Institutions

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

                      Chapter 2--1994 Institutions

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

                      Chapter 3--1890 Institutions

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

                   Chapter 4--Land-grant Institutions


                         SUBCHAPTER A--GENERAL

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


         SUBCHAPTER B--LAND-GRANT INSTITUTIONS IN INSULAR AREAS

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

                         Subtitle E--Other Laws

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

                      Subtitle F--New Authorities

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

                          TITLE VIII--FORESTRY

Sec. 801. Office of International Forestry.
Sec. 802. McIntire-Stennis cooperative forestry research program.

[[Page 26727]]

Sec. 803. Sustainable forestry outreach initiative; renewable resources 
              extension activities.
Sec. 804. Forestry incentives program.
Sec. 805. Forest land enhancement program.
Sec. 806. Sustainable forestry cooperative program.
Sec. 807. Stewardship incentive program.
Sec. 808. Forest fire research centers.
Sec. 809. Wildfire prevention and hazardous fuel purchase program.
Sec. 810. Enhanced community fire protection.
Sec. 811. Watershed forestry assistance program.
Sec. 812. General provisions.
Sec. 813. State forest stewardship coordinating committees.

                            TITLE IX--ENERGY

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

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

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

                     Subtitle B--General Provisions

Sec. 1011. Unlawful stockyard practices involving nonambulatory 
              livestock.
Sec. 1012. Cotton classification services.
Sec. 1013. Protection for purchasers of farm products.
Sec. 1014. Penalties and foreign commerce provisions of the Animal 
              Welfare Act.
Sec. 1015. Outreach and assistance for socially disadvantaged farmers 
              and ranchers.
Sec. 1016. Public disclosure requirements for county committee 
              elections.
Sec. 1017. Pseudorabies eradication program.
Sec. 1018. Tree assistance program.
Sec. 1019. Humane methods of animal slaughter.

                       Subtitle C--Administration

Sec. 1031. Regulations.
Sec. 1032. Effect of amendments.

                      TITLE I--COMMODITY PROGRAMS

     SEC. 100. DEFINITIONS.

       In this title (other than chapter 3 of subtitle C and 
     except as provided in section 105(a)(4)):
       (1) Agricultural act of 1949.--The term ``Agricultural Act 
     of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 
     et seq.), as in effect prior to the suspensions under section 
     181(b).
       (2) Agricultural commodity.--The term ``agricultural 
     commodity'' means any agricultural commodity, food, feed, 
     fiber, or livestock.
       (3) Base acres.--The term ``base acres'', with respect to a 
     covered commodity on a farm, means the number of acres 
     established under section 103 with respect to the covered 
     commodity on the election made by the producers on the farm 
     under section 103(a).
       (4) Covered commodity.--The term ``covered commodity'' 
     means--
       (A) wheat, corn, grain sorghum, barley, oats, upland 
     cotton, rice, and oilseeds; and
       (B) in the case of subtitle B, extra long staple cotton, 
     dry peas, lentils, and chickpeas.
       (5) Eligible producer.--The term ``eligible producer'' 
     means a producer described in section 101(a).
       (6) Extra long staple cotton.--The term ``extra long staple 
     cotton'' means cotton that--
       (A) is produced from pure strain varieties of the 
     Barbadense species or any hybrid thereof, or other similar 
     types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not suitable and 
     grown in irrigated cotton-growing regions of the United 
     States designated by the Secretary or other areas designated 
     by the Secretary as suitable for the production of the 
     varieties or types; and
       (B) is ginned on a roller-type gin or, if authorized by the 
     Secretary, ginned on another type gin for experimental 
     purposes.
       (7) Farm counter-cyclical savings account.--The terms 
     ``farm counter-cyclical savings account'' and ``account'' 
     mean a farm counter-cyclical savings account established 
     under section 105.
       (8) Farm counter-cyclical savings account payment.--The 
     term ``farm counter-cyclical savings account payment'' means 
     a matching contribution made by the Secretary to a farm 
     counter-cyclical savings account under section 105.
       (9) Fixed, decoupled payment.--The term ``fixed, decoupled 
     payment'' means a payment made to producers under section 
     104.
       (10) Oilseed.--The term ``oilseed'' means a crop of 
     soybeans, sunflower seed, rapeseed, canola, safflower, 
     flaxseed, mustard seed, or, if designated by the Secretary, 
     another oilseed.
       (11) Payment acres.--The term ``payment acres'' means 85 
     percent of the base acres of a covered commodity on a farm, 
     as established under section 103, on which fixed, decoupled 
     payments are made.
       (12) Payment yield.--The term ``payment yield'' means the 
     yield established under section 102 for a farm for a covered 
     commodity.
       (13) Producer.--
       (A) In general.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper that shares in 
     the risk of producing a crop and that is entitled to share in 
     the crop available for marketing from the farm, or would have 
     shared had the crop been produced.
       (B) Hybrid seed.--In determining whether a grower of hybrid 
     seed is a producer, the Secretary--
       (i) shall not take into consideration the existence of a 
     hybrid seed contract; and
       (ii) shall ensure that program requirements do not 
     adversely affect the ability of the grower to receive a 
     payment under this title.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (15) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (16) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

Subtitle A--Fixed Decoupled Payments and Farm Counter-Cyclical Savings 
                            Account Payments

     SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.

       (a) In General.--For each of the 2002 through 2006 crops of 
     each covered commodity, the Secretary shall make fixed 
     decoupled payments and farm counter-cyclical savings account 
     payments under this subtitle to--
       (1) producers on a farm that were parties to a production 
     flexibility contract under section 111 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7211) for fiscal year 2002; and
       (2) other producers on farms in the United States described 
     in section 103(a).
       (b) Tenants and Sharecroppers.--In carrying out this title, 
     the Secretary shall provide adequate safeguards to protect 
     the interests of tenants and sharecroppers.
       (c) Sharing of Payments.--The Secretary shall provide for 
     the sharing of fixed, decoupled payments among the eligible 
     producers on a farm on a fair and equitable basis.

     SEC. 102. PAYMENT YIELDS.

       (a) In General.--For the purpose of making fixed, decoupled 
     payments under this subtitle, the Secretary shall provide for 
     the establishment of a payment yield for each farm for each 
     covered commodity in accordance with this section.
       (b) Use of Farm Program Payment Yield.--Except as provided 
     in this section, the payment yield for each of the 2002 
     through 2006 crops of a covered commodity for a farm shall be 
     the farm program payment yield for the 2002 crop of the 
     covered commodity (other than oilseeds) as determined under 
     section 505 of the Agricultural Act of 1949 (7 U.S.C. 1465).
       (c) Farms Without Farm Program Payment Yield.--In the case 
     of a farm for which a farm program payment yield is 
     unavailable for a covered commodity (other than oilseeds), 
     the Secretary shall establish an appropriate payment yield 
     for the covered commodity on the farm taking in consideration 
     the farm program payment yields applicable to the commodity 
     under subsection (b) for similar farms in the area.
       (d) Payment Yields for Oilseeds.--
       (1) In general.--In the case of each oilseed, the Secretary 
     shall determine the average yield for the oilseed on a farm 
     for the 1998 through 2001 crop years, excluding any crop year 
     in which the acreage planted to the oilseed was zero.
       (2) Assigned yields.--If, for any of the crop years 
     referred to in paragraph (1) in which the oilseed was 
     planted, the producers on a farm would have satisfied the 
     eligibility criteria established to carry out section 1102 of 
     the Agriculture, Rural Development, Food and Drug 
     Administration, and Related Agencies Appropriations Act, 1999 
     (7 U.S.C. 1421 note; Public Law 105-277) with respect to the 
     production of the oilseed, the Secretary shall assign a yield 
     for the crop year equal to 65 percent of the county yield.
       (3) Adjustment for payment yield.--The payment yield for a 
     farm for an oilseed shall be equal to the product obtained by 
     multiplying--
       (A) the average yield for the oilseed determined under 
     paragraphs (1) and (2); by
       (B) the ratio resulting from dividing--
       (i) the national average yield for the oilseed for the 1981 
     through 1985 crops; by
       (ii) the national average yield for the oilseed for the 
     1998 through 2001 crops.

     SEC. 103. BASE ACRES AND PAYMENT ACRES FOR FARMS.

       (a) Election by Producers of Base Acre Calculation 
     Method.--For the purpose of making fixed, decoupled payments 
     to producers on a farm, the Secretary shall provide producers 
     on the farm with an opportunity to elect 1 of the following 
     methods as the

[[Page 26728]]

     method by which the base acres of all covered commodities on 
     the farm are determined:
       (1) The 4-year average of--
       (A) acreage actually planted to a covered commodity for 
     harvest, grazing, haying, silage, or other similar purposes 
     during the 1998 through 2001 crop years; and
       (B) any acreage that was prevented from being planted 
     during such crop years to the covered commodity because of 
     drought, flood, or other natural disaster, or other condition 
     beyond the control of the producers on the farm, as 
     determined by the Secretary.
       (2) The sum of--
       (A) the contract acreage (as defined in section 102 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7202)) that would have been used by the Secretary to 
     calculate the payment for fiscal year 2002 under such section 
     102 for the contract commodity on the farm; and
       (B) the 4-year average determined under paragraph (1) for 
     each oilseed produced on the farm.
       (b) Single Election; Time for Election.--
       (1) Single election.--The producers on a farm shall have 1 
     opportunity to make the election described in subsection (a).
       (2) Time for election.--Not later than 180 days after the 
     date of the enactment of this Act, the producers on a farm 
     shall notify the Secretary of the election made by the 
     producers on the farm under subsection (a).
       (c) Effect of Failure To Make Election.--If the producers 
     on a farm fail to make the election under subsection (a), or 
     fail to timely notify the Secretary of the selected option as 
     required by subsection (b), the producers on the farm shall 
     be deemed to have made the election described in subsection 
     (a)(2) for the purpose of determining the base acres for all 
     covered commodities on the farm.
       (d) Application of Election to All Covered Commodities.--
     The election made under subsection (a) or deemed to be made 
     under subsection (c) with respect to a farm shall apply to 
     all of the covered commodities produced on the farm.
       (e) Treatment of Conservation Reserve Contract Acreage.--
       (1) In general.--In the case of producers on a farm that 
     make the election described in subsection (a)(2), the 
     Secretary shall provide for an adjustment in the base acres 
     for the farm whenever either of the following circumstances 
     occur:
       (A) A conservation reserve contract entered into under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with respect to the farm expires or is voluntarily 
     terminated.
       (B) Cropland is released from coverage under a conservation 
     reserve contract by the Secretary.
       (2) Election.--For the fiscal year and crop year in which a 
     base acre adjustment under paragraph (1) is first made, the 
     producers on the farm shall elect to receive--
       (A) fixed, decoupled payments with respect to the acreage 
     added to the farm under this subsection; or
       (B) a prorated payment under the conservation reserve 
     contract.
       (f) Payment Acres.--The payment acres for a covered 
     commodity on a farm shall be equal to 85 percent of the base 
     acres for the covered commodity.
       (g) Prevention of Excess Base Acres.--
       (1) Required reduction.--If the sum of the base acres for a 
     farm, together with the acreage described in paragraph (3), 
     exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of base acres for 1 or 
     more covered commodities for the farm or peanut acres for the 
     farm as necessary so that the sum of the base acres and 
     acreage described in paragraph (3) does not exceed the actual 
     cropland acreage of the farm.
       (2) Selection of acres.--The Secretary shall give the 
     producers on the farm the opportunity to select the base 
     acres or peanut acres against which the reduction will be 
     made.
       (3) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include--
       (A) any peanut acres for the farm under chapter 3 of 
     subtitle C;
       (B) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       (C) any other acreage on the farm enrolled in a voluntary 
     conservation program under which production of any 
     agricultural commodity is prohibited.
       (3) Double-cropped acreage.--In applying paragraph (1), the 
     Secretary shall take into account additional acreage as a 
     result of an established double-cropping history on a farm, 
     as determined by the Secretary.

     SEC. 104. FIXED, DECOUPLED PAYMENTS.

       (a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make fixed, decoupled payments 
     available to producers on a farm with base acres under 
     section 103, and a payment yield under section 102, with 
     respect to a covered commodity.
       (b) Payment Rate.--The payment rates used to make fixed, 
     decoupled payments with respect to covered commodities for a 
     crop year are as follows:
       (1) Wheat:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.7657 per bushel.
       (B) In the case of the 2006 crop, $0.6308 per bushel.
       (2) Corn:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.4334 per bushel.
       (B) In the case of the 2006 crop, $0.3571 per bushel.
       (3) Grain sorghum:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.5201 per bushel.
       (B) In the case of the 2006 crop, $0.4284 per bushel.
       (4) Barley:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.3612 per bushel.
       (B) In the case of the 2006 crop, $0.2976 per bushel.
       (5) Oats:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.0361 per bushel.
       (B) In the case of the 2006 crop, $0.0298 per bushel.
       (6) Upland cotton:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.1489 per pound.
       (B) In the case of the 2006 crop, $0.1227 per pound.
       (7) Rice:
       (A) In the case of each of the 2002 through 2005 crops, 
     $3.39 per hundredweight.
       (B) In the case of the 2006 crop, $2.79 per hundredweight.
       (8) Soybeans:
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.6068 per bushel.
       (B) In the case of the 2006 crop, $0.4999 per bushel.
       (9) Oilseeds (other than soybeans):
       (A) In the case of each of the 2002 through 2005 crops, 
     $0.01021 per pound.
       (B) In the case of the 2006 crop, $0.0088 per pound.
       (c) Payment Amount.--The amount of the fixed, decoupled 
     payment to be paid to the producers on a farm for a covered 
     commodity for a fiscal year shall be equal obtained by 
     multiplying--
       (1) the payment rate specified in subsection (b);
       (2) the payment acres of the covered commodity on the farm; 
     by
       (3) the payment yield for the covered commodity for the 
     farm.
       (d) Time for Payment.--
       (1) In general.--The Secretary shall make fixed, decoupled 
     payments--
       (A) in the case of the 2002 fiscal year, during the period 
     beginning December 1, 2001, and ending September 30, 2002; 
     and
       (B) in the case of each of the 2003 through 2006 fiscal 
     years, not later than September 30 of the fiscal year.
       (2) Advance payments.--
       (A) In general.--At the option of the producers on a farm, 
     the Secretary shall pay 50 percent of the fixed, decoupled 
     payment for a fiscal year for the producers on the farm on a 
     date selected by the producers on the farm.
       (B) Selected date.--The selected date for a fiscal year 
     shall be on or after December 1 of the fiscal year.
       (C) Subsequent fiscal years.--The producers on a farm may 
     change the selected date for a subsequent fiscal year by 
     providing advance notice to the Secretary.
       (3) Repayment of advance payments.--If any producer on a 
     farm receives an advance fixed, decoupled payment for a 
     fiscal year ceases to be eligible for a fixed, decoupled 
     payment before the date the fixed, decoupled payment would 
     have been made by the Secretary under paragraph (1), the 
     producer shall be responsible for repaying the Secretary the 
     full amount of the advance payment.

     SEC. 105. FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

       (a) Definitions.--In this section:
       (1) Adjusted gross revenue.--The term ``adjusted gross 
     revenue'' means the adjusted gross income for all 
     agricultural enterprises of a producer in a year, excluding 
     revenue earned from nonagricultural sources, as determined by 
     the Secretary--
       (A) by taking into account gross receipts from the sale of 
     crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       (B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including 
     any marketing loan gains described in section 1001(3)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(3)(A));
       (C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       (D) as represented on--
       (i) a schedule F of the Federal income tax returns of the 
     producer; or
       (ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       (2) Agricultural enterprise.--The term ``agricultural 
     enterprise'' means the production and marketing of all 
     agricultural commodities (including livestock but excluding 
     tobacco) on a farm or ranch.
       (3) Average adjusted gross revenue.--The term ``average 
     adjusted gross revenue'' means--

[[Page 26729]]

       (A) the average of the adjusted gross revenue of a producer 
     for each of the preceding 5 taxable years; or
       (B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       (4) Producer.--The term ``producer'' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       (A) shares in the risk of producing, or provides a material 
     contribution in producing, an agricultural commodity for the 
     applicable year;
       (B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       (C)(i) during each of the preceding 5 taxable years, has 
     filed--
       (I) a schedule F of the Federal income tax returns; or
       (II) a comparable tax form related to the agricultural 
     enterprises of the individual or entity, as approved by the 
     Secretary; or
       (ii) is a beginning farmer or rancher or other producer 
     that does not have adjusted gross revenue for each of the 
     preceding 5 taxable years, as determined by the Secretary; 
     and
       (D)(i) has earned at least $20,000 in average adjusted 
     gross revenue for each of the preceding 5 taxable years;
       (ii) is a limited resource farmer or rancher, as determined 
     by the Secretary; or
       (iii) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, has at least $20,000 in 
     estimated income from all agricultural enterprises for the 
     applicable year, as determined by the Secretary.
       (b) Establishment.--A producer may establish a farm 
     counter-cyclical savings account in the name of the producer 
     in a bank or financial institution selected by the producer 
     and approved by the Secretary.
       (c) Content of Account.--A farm counter-cyclical savings 
     account shall consist of--
       (1) contributions of the producer; and
       (2) matching contributions of the Secretary.
       (d) Producer Contributions.--
       (1) In general.--Subject to paragraph (2), a producer may 
     deposit such amounts in the account of the producer as the 
     producer considers appropriate.
       (2) Maximum account balance.--The balance of an account of 
     a producer may not exceed 150 percent of the average adjusted 
     gross revenue of the producer for the previous 5 years.
       (e) Matching Contributions.--
       (1) In general.--Subject to paragraphs (2) through (5), the 
     Secretary shall provide a matching contribution on the amount 
     deposited by the producer into the account.
       (2) Formula.--The Secretary shall establish a formula to 
     determine the amount of matching contributions that will be 
     provided by the Secretary under paragraph (1).
       (3) Maximum contributions for individual producer.--The 
     amount of matching contributions that may be provided by the 
     Secretary for an individual producer under this subsection 
     shall not exceed $10,000.
       (4) Maximum contributions for all producers.--The total 
     amount of matching contributions that may be provided by the 
     Secretary for all producers under this subsection shall not 
     exceed--
       (A) $800,000,000 for fiscal year 2002;
       (B) $900,000,000 for fiscal year 2003;
       (C) $1,000,000,000 for fiscal year 2004;
       (D) $1,100,000,000 for fiscal year 2005; and
       (E) $1,200,000,000 for fiscal year 2006.
       (5) Date for matching contributions.--The Secretary shall 
     provide the matching contributions required for a producer 
     under paragraph (1) as of the date that a majority of the 
     covered commodities grown by the producer are harvested.
       (f) Interest.--Funds deposited into the account may earn 
     interest at the commercial rates provided by the bank or 
     financial institution in which the Account is established.
       (g) Use.--Funds credited to the account--
       (1) shall be available for withdrawal by a producer, in 
     accordance with subsection (h); and
       (2) may be used for purposes determined by the producer.
       (h) Withdrawal.--
       (1) In general.--Subject to paragraph (2), a producer may 
     withdraw funds from the account if the adjusted gross revenue 
     of the producer is less than 90 percent of average adjusted 
     gross revenue of the producer for the previous 5 years.
       (2) Retirement.--
       (A) In general.--Subject to subparagraph (B), a producer 
     that ceases to be actively engaged in farming, as determined 
     by the Secretary--
       (i) may withdraw the full balance from, and close, the 
     account; and
       (ii) may not establish another account.
       (B) Waivers.--The Secretary shall promulgate regulations 
     that provide for a waiver, in limited circumstances (as 
     determined by the Secretary), of the application of 
     subparagraph (B)(ii) to a producer.
       (i) Administration.--The Secretary shall administer this 
     section through the Farm Service Agency and local, county, 
     and area offices of the Department of Agriculture.

     SEC. 106. PRODUCER AGREEMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive fixed, decoupled payments with respect to the farm, 
     the producers on the farm shall agree during the fiscal year 
     or crop year, respectively, for which the payments are 
     received, in exchange for the payments--
       (A) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 107; and
       (D) to use a quantity of land on the farm equal to the base 
     acres, for an agricultural or conserving use, and not for a 
     nonagricultural commercial or industrial use, as determined 
     by the Secretary.
       (2) Compliance.--The Secretary may promulgate such 
     regulations as the Secretary considers necessary to ensure 
     producer compliance with paragraph (1).
       (b) Foreclosures.--
       (1) In general.--The Secretary shall not require the 
     producers on a farm to repay a fixed, decoupled payment if 
     the farm has been foreclosed on and the Secretary determines 
     that forgiving the repayment is appropriate to provide fair 
     and equitable treatment.
       (2) Compliance with requirements.--
       (A) In general.--This subsection shall not void the 
     responsibilities of the producers on a farm under subsection 
     (a) if the producers on the farm continue or resume 
     operation, or control, of the farm.
       (B) Applicable requirements.--On the resumption of 
     operation or control over the farm by the producers on the 
     farm, the requirements of subsection (a) in effect on the 
     date of the foreclosure shall apply.
       (c) Transfer or Change of Interest in Farm.--
       (1) Termination.--Except as provided in paragraph (5), a 
     transfer of (or change in) the interest of the producers on a 
     farm in base acres for which fixed, decoupled payments are 
     made shall result in the termination of the payments with 
     respect to the base acres, unless the transferee or owner of 
     the acreage agrees to assume all obligations under subsection 
     (a).
       (2) Effective date.--The termination takes effect on the 
     date of the transfer or change.
       (3) Transfer of payment base and yield.--There is no 
     restriction on the transfer of the base acres or payment 
     yield of a farm as part of a transfer or change described in 
     paragraph (1).
       (4) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of 
     subsection (a) if the modifications are consistent with the 
     objectives of subsection (a), as determined by the Secretary.
       (5) Exception.--If a producer entitled to a fixed, 
     decoupled payment dies, becomes incompetent, or is otherwise 
     unable to receive the payment, the Secretary shall make the 
     payment, in accordance with regulations promulgated by the 
     Secretary.

     SEC. 107. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on base acres on a farm.
       (b) Limitations and Exceptions Regarding Certain 
     Commodities.--
       (1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on base acres:
       (A) Fruits.
       (B) Vegetables (other than lentils, mung beans, and dry 
     peas).
       (C) Wild rice.
       (2) Exceptions.--Paragraph (1) shall not limit the planting 
     of an agricultural commodity specified in paragraph (1)--
       (A) in any region in which there is a history of double-
     cropping of covered commodities with agricultural commodities 
     specified in paragraph (1), as determined by the Secretary, 
     in which case the double-cropping shall be permitted;
       (B) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in paragraph 
     (1) on base acres, except that fixed, decoupled payments and 
     counter-cyclical payments shall be reduced by an acre for 
     each acre planted to the agricultural commodity; or
       (C) by the producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in paragraph (1), except 
     that--
       (i) the quantity planted may not exceed the average annual 
     planting history of the agricultural commodity by the 
     producers on the farm during the 1991 through 1995 crop years 
     (excluding any crop year in which no plantings were made), as 
     determined by the Secretary; and
       (ii) fixed, decoupled payments and counter-cyclical 
     payments shall be reduced by an acre for each acre planted to 
     the agricultural commodity.

[[Page 26730]]



     SEC. 108. PRODUCTION FLEXIBILITY CONTRACTS.

       If, on or before the date of the enactment of this Act, the 
     producers on a farm receive all or any portion of the payment 
     authorized for fiscal year 2002 under a production 
     flexibility contract entered into under section 111 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7211), the Secretary shall reduce the amount of the 
     fixed, decoupled payment otherwise due the producers on the 
     farm for fiscal year 2002 by the amount of the fiscal year 
     2002 payment received by the producers on the farm under the 
     production flexibility contract.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

     SEC. 121. NONRECOURSE MARKETING ASSISTANCE LOANS FOR COVERED 
                   COMMODITIES.

       (a) Nonrecourse Loans Available.--
       (1) Availability.--For each of the 2002 through 2006 crops 
     of each covered commodity, the Secretary shall make available 
     to producers on a farm nonrecourse marketing assistance loans 
     for covered commodities produced on the farm.
       (2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under section 122 for the 
     covered commodity.
       (b) Eligible Production.--The producers on a farm shall be 
     eligible for a marketing assistance loan under subsection (a) 
     for any quantity of a covered commodity produced on the farm.
       (c) Treatment of Certain Commingled Commodities.--In 
     carrying out this subtitle, the Secretary shall make loans to 
     the producers on a farm that would be eligible to obtain a 
     marketing assistance loan but for the fact the covered 
     commodity owned by the producers on the farm is commingled 
     with covered commodities of other producers in facilities 
     unlicensed for the storage of agricultural commodities by the 
     Secretary or a State licensing authority, if the producers on 
     the farm obtaining the loan agree to immediately redeem the 
     loan collateral in accordance with section 176.
       (d) Compliance With Conservation Requirements.--As a 
     condition of the receipt of a marketing assistance loan under 
     subsection (a), the producers on a farm shall comply during 
     the term of the loan with--
       (1) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       (2) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).

     SEC. 122. LOAN RATES.

       (a) Wheat.--
       (1) Loan rate.--Subject to paragraph (2), the loan rate for 
     a marketing assistance loan under section 121 for wheat shall 
     be--
       (A) not less than 85 percent of the simple average price 
     received by producers of wheat, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of wheat, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (B) not more than $2.58 per bushel.
       (2) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of wheat to total use for the marketing year will be--
       (A) equal to or greater than 30 percent, the Secretary may 
     reduce the loan rate for wheat for the corresponding crop by 
     an amount not to exceed 10 percent in any year;
       (B) less than 30 percent but not less than 15 percent, the 
     Secretary may reduce the loan rate for wheat for the 
     corresponding crop by an amount not to exceed 5 percent in 
     any year; or
       (C) less than 15 percent, the Secretary may not reduce the 
     loan rate for wheat for the corresponding crop.
       (b) Feed Grains.--
       (1) Loan rate for corn and grain sorghum.--Subject to 
     paragraph (2), the loan rate for a marketing assistance loan 
     under section 121 for corn and grain sorghum shall be--
       (A) not less than 85 percent of the simple average price 
     received by producers of corn or grain sorghum, respectively, 
     as determined by the Secretary, during the marketing years 
     for the immediately preceding 5 crops of the covered 
     commodity, excluding the year in which the average price was 
     the highest and the year in which the average price was the 
     lowest in the period; but
       (B) not more than $1.89 per bushel.
       (2) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of corn or grain sorghum to total use for the 
     marketing year will be--
       (A) equal to or greater than 25 percent, the Secretary may 
     reduce the loan rate for the covered commodity for the 
     corresponding crop by an amount not to exceed 10 percent in 
     any year;
       (B) less than 25 percent but not less than 12.5 percent, 
     the Secretary may reduce the loan rate for the covered 
     commodity for the corresponding crop by an amount not to 
     exceed 5 percent in any year; or
       (C) less than 12.5 percent, the Secretary may not reduce 
     the loan rate for the covered commodity for the corresponding 
     crop.
       (3) Other feed grains.--The loan rate for a marketing 
     assistance loan under section 121 for barley and oats shall 
     be--
       (A) established at such level as the Secretary determines 
     is fair and reasonable in relation to the rate that loans are 
     made available for corn, taking into consideration the 
     feeding value of the commodity in relation to corn; but
       (B) not more than--
       (i)(I) $1.65 per bushel for barley; or
       (II) $1.70 per bushel for barley used only for feed 
     purposes, as determined by the Secretary; and
       (ii) $1.21 per bushel for oats.
       (c) Upland Cotton.--
       (1) Loan rate.--Subject to paragraph (2), the loan rate for 
     a marketing assistance loan under section 121 for upland 
     cotton shall be established by the Secretary at such loan 
     rate, per pound, as will reflect for the base quality of 
     upland cotton, as determined by the Secretary, at average 
     locations in the United States a rate that is not less than 
     the smaller of--
       (A) 85 percent of the average price (weighted by market and 
     month) of the base quality of cotton as quoted in the 
     designated United States spot markets during 3 years of the 
     5-year period ending July 31 of the year preceding the year 
     in which the crop is planted, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period; or
       (B) 90 percent of the average, for the 15-week period 
     beginning July 1 of the year preceding the year in which the 
     crop is planted, of the 5 lowest-priced growths of the 
     growths quoted for Middling 1\3/32\-inch cotton C.I.F. 
     Northern Europe (adjusted downward by the average difference 
     during the period April 15 through October 15 of the year 
     preceding the year in which the crop is planted between the 
     average Northern European price quotation of such quality of 
     cotton and the market quotations in the designated United 
     States spot markets for the base quality of upland cotton), 
     as determined by the Secretary.
       (2) Limitations.--The loan rate for a marketing assistance 
     loan for upland cotton shall not be less than $0.50 per pound 
     or more than $0.5192 per pound.
       (d) Extra Long Staple Cotton.--The loan rate for a 
     marketing assistance loan under section 121 for extra long 
     staple cotton shall be $0.7965 per pound.
       (e) Rice.--The loan rate for a marketing assistance loan 
     under section 121 for rice shall be $6.50 per hundredweight.
       (f) Oilseeds.--
       (1) Soybeans.--The loan rate for a marketing assistance 
     loan under section 121 for soybeans shall be--
       (A) not less than 85 percent of the simple average price 
     received by producers of soybeans, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of soybeans, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (B) not more than $4.92 per bushel.
       (2) Other oilseeds.--The loan rate for a marketing 
     assistance loan under section 121 for each oilseed (other 
     than soybeans) shall be--
       (A) not less than 85 percent of the simple average price 
     received by producers of the oilseed, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of the oilseed, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (B) not more than $0.093 per pound.
       (g) Dry Peas, Lentils, and Chickpeas.--The loan rate for a 
     marketing assistance loan under section 121 for dry peas, 
     lentils, large chickpeas, and small chickpeas shall be--
       (1) not less than 85 percent of the simple average price 
     received by producers of dry peas, lentils, large chickpeas, 
     and small chickpeas, individually, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of dry peas, lentils, large chickpeas, and 
     small chickpeas, individually, excluding the year in which 
     the average price was the highest and the year in which the 
     average rice was the lowest in the period; but
       (2) not less than--
       (A) in the case of dry peas--
       (i) a loan rate established by the Secretary, taking into 
     consideration the feed prices of dry peas; but
       (ii) not less than $5.83 per hundredweight;
       (B) in the case of lentils, $11.00 per hundredweight;
       (C) in the case of large chickpeas, $15.00 per 
     hundredweight; and
       (D) in the case of small chickpeas, $7.00 per 
     hundredweight.

     SEC. 123. TERM OF LOANS.

       (a) Term of Loan.--In the case of each covered commodity 
     (other than upland cotton or extra long staple cotton), a 
     marketing assistance loan under section 121 shall have a term 
     of 9 months beginning on the first day of the first month 
     after the month in which the loan is made.
       (b) Special Rule for Cotton.--A marketing assistance loan 
     for upland cotton or extra long staple cotton shall have a 
     term of

[[Page 26731]]

     10 months beginning on the first day of the month in which 
     the loan is made.
       (c) Extensions Prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for any covered 
     commodity.

     SEC. 124. REPAYMENT OF LOANS.

       (a) Repayment Rates for Wheat, Feed Grains, Oilseeds, Dry 
     Peas, Lentils, and Chickpeas.--The Secretary shall permit 
     producers on a farm to repay a marketing assistance loan 
     under section 121 for wheat, corn, grain sorghum, barley, 
     oats, oilseeds, dry peas, lentils, and chickpeas at a rate 
     that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 122, plus interest (as determined by the Secretary); 
     or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity;
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally; and
       (E) minimize discrepancies in marketing loan benefits 
     across State boundaries and across county boundaries.
       (b) Repayment Rates for Upland Cotton and Rice.--The 
     Secretary shall permit producers on a farm to repay a 
     marketing assistance loan under section 121 for upland cotton 
     and rice at a rate that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 122, plus interest (as determined by the Secretary); 
     or
       (2) the prevailing world market price for the commodity 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       (c) Repayment Rates for Extra Long Staple Cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under section 122, plus interest (as determined by 
     the Secretary).
       (d) Prevailing World Market Price.--For purposes of this 
     section and section 127, the Secretary shall prescribe by 
     regulation--
       (1) a formula to determine the prevailing world market 
     price for each covered commodity, adjusted to United States 
     quality and location; and
       (2) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for each 
     covered commodity.
       (e) Adjustment of Prevailing World Market Price for Upland 
     Cotton.--
       (1) In general.--During the period beginning on the date of 
     the enactment of this Act and ending July 31, 2007, the 
     prevailing world market price for upland cotton (adjusted to 
     United States quality and location) established under 
     subsection (d) shall be further adjusted if--
       (A) the adjusted prevailing world market price is less than 
     115 percent of the loan rate for upland cotton established 
     under section 122, as determined by the Secretary; and
       (B) the Friday through Thursday average price quotation for 
     the lowest-priced United States growth as quoted for Middling 
     (M) 1\3/32\-inch cotton delivered C.I.F. Northern Europe is 
     greater than the Friday through Thursday average price of the 
     5 lowest-priced growths of upland cotton, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe (referred to in this section as the ``Northern Europe 
     price'').
       (2) Further adjustment.--Except as provided in paragraph 
     (3), the adjusted prevailing world market price for upland 
     cotton shall be further adjusted on the basis of some or all 
     of the following data, as available:
       (A) The United States share of world exports.
       (B) The current level of cotton export sales and cotton 
     export shipments.
       (C) Other data determined by the Secretary to be relevant 
     in establishing an accurate prevailing world market price for 
     upland cotton (adjusted to United States quality and 
     location).
       (3) Limitation on further adjustment.--The adjustment under 
     paragraph (2) may not exceed the difference between--
       (A) the Friday through Thursday average price for the 
     lowest-priced United States growth as quoted for Middling 
     1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
       (B) the Northern Europe price.
       (f) Time for Fixing Repayment Rate.--In the case of 
     producers on a farm that marketed or otherwise lost 
     beneficial interest in a covered commodity before repaying a 
     marketing assistance loan made under section 121 with respect 
     to the covered commodity, the Secretary shall permit the 
     producers on the farm to repay the loan at the lowest 
     repayment rate that was in effect for the covered commodity 
     under this section as of the date that the producers on the 
     farm lost beneficial interest, as determined by the 
     Secretary.

     SEC. 125. LOAN DEFICIENCY PAYMENTS.

       (a) In General.--Except as provided in subsection (d), the 
     Secretary may make loan deficiency payments available to--
       (1) producers on a farm that, although eligible to obtain a 
     marketing assistance loan under section 121 with respect to a 
     covered commodity, agree to forgo obtaining the loan for the 
     covered commodity in return for payments under this section; 
     and
       (2) effective only for the 2000 and 2001 crop years, 
     producers that, although not eligible to obtain such a 
     marketing assistance loan under section 121, produce a 
     covered commodity.
       (b) Amount.--A loan deficiency payment under this section 
     shall be obtained by multiplying--
       (1) the loan payment rate determined under subsection (c) 
     for the covered commodity; by
       (2) the quantity of the covered commodity produced by the 
     producers on the farm, excluding any quantity for which the 
     producers on the farm obtain a loan under section 121.
       (c) Loan Payment Rate.--For purposes of this section, the 
     loan payment rate shall be the amount by which--
       (1) the loan rate established under section 122 for the 
     covered commodity; exceeds
       (2) the rate at which a loan for the covered commodity may 
     be repaid under section 124.
       (d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.
       (e) Time for Payment.--The Secretary shall make a payment 
     under this section to the producers on a farm with respect to 
     a quantity of a covered commodity as of the earlier of--
       (1) the date on which the producers on the farm marketed or 
     otherwise lost beneficial interest in the covered commodity, 
     as determined by the Secretary; or
       (2) the date the producers on the farm request the payment.
       (f) Lost Beneficial Interest.--Effective for the 2001 crop 
     only, if a producer eligible for a payment under subsection 
     (a) loses beneficial interest in the covered commodity, the 
     producer shall be eligible for the payment determined as of 
     the date the producer lost beneficial interest in the covered 
     commodity, as determined by the Secretary.

     SEC. 126. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
                   GRAZED ACREAGE.

       (a) In General.--For each of the 2002 through 2006 crops of 
     wheat, barley, grain sorghum, and oats, in the case of the 
     producers on a farm that would be eligible for a loan 
     deficiency payment under section 125 for wheat, barley, grain 
     sorghum, or oats, but that elects to use acreage planted to 
     the wheat, barley, grain sorghum, or oats for the grazing of 
     livestock, the Secretary shall make a payment to the 
     producers on the farm under this section if the producers on 
     the farm enter into an agreement with the Secretary to forgo 
     any other harvesting of the wheat, barley, grain sorghum, or 
     oats on the acreage.
       (b) Payment Amount.--The amount of a payment made to the 
     producers on a farm under this section shall be equal to the 
     amount obtained by multiplying--
       (1) the loan deficiency payment rate determined under 
     section 125(c) in effect, as of the date of the agreement, 
     for the county in which the farm is located; by
       (2) the payment quantity obtained by multiplying--
       (A) the quantity of the grazed acreage on the farm with 
     respect to which the producers on the farm elect to forgo 
     harvesting of wheat, barley, grain sorghum, or oats; and
       (B) the payment yield for that covered commodity on the 
     farm.
       (c) Time, Manner, and Availability of Payment.--
       (1) Time and manner.--A payment under this section shall be 
     made at the same time and in the same manner as loan 
     deficiency payments are made under section 125.
       (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, grain sorghum, and oats established by the 
     Secretary for marketing assistance loans authorized by this 
     subtitle.
       (d) Prohibition on Crop Insurance or Noninsured Crop 
     Assistance.--The producers on a farm shall not be eligible 
     for insurance under the Federal Crop Insurance Act (7 U.S.C. 
     1501 et seq.) or noninsured crop assistance under section 192 
     with respect to a 2002 through 2006 crop of wheat, barley, 
     grain sorghum, or oats planted on acreage that the producers 
     on the farm elect, in the agreement required by subsection 
     (a), to use for the grazing of livestock in lieu of any other 
     harvesting of the crop.

     SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       (a) Cotton User Marketing Certificates.--
       (1) Issuance.--During the period beginning on the date of 
     the enactment of this Act and ending July 31, 2007, subject 
     to paragraph (4), the Secretary shall issue marketing 
     certificates or cash payments, at the option of the 
     recipient, to domestic users and exporters for documented 
     purchases by domestic users and sales for export by exporters 
     made in the week following a consecutive 4-week period in 
     which--
       (A) the Friday through Thursday average price quotation for 
     the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe exceeds the Northern Europe price by more than 1.25 
     cents per pound; and

[[Page 26732]]

       (B) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location) does not 
     exceed 134 percent of the loan rate for upland cotton 
     established under section 122.
       (2) Value of certificates or payments.--Subject to 
     paragraph (4), the value of the marketing certificates or 
     cash payments shall be based on the amount of the difference 
     (reduced by 1.25 cents per pound) in the prices during the 
     4th week of the consecutive 4-week period multiplied by the 
     quantity of upland cotton included in the documented sales.
       (3) Administration of marketing certificates.--
       (A) Redemption, marketing, or exchange.--
       (i) In general.--The Secretary shall establish procedures 
     for redeeming marketing certificates for cash or marketing or 
     exchange of the certificates for agricultural commodities 
     owned by the Commodity Credit Corporation or pledged to the 
     Commodity Credit Corporation as collateral for a loan in such 
     manner, and at such price levels, as the Secretary determines 
     will best effectuate the purposes of cotton user marketing 
     certificates, including enhancing the competitiveness and 
     marketability of United States cotton.
       (ii) Price restrictions.--Any price restrictions that would 
     otherwise apply to the disposition of agricultural 
     commodities by the Commodity Credit Corporation shall not 
     apply to the redemption of certificates under this 
     subsection.
       (B) Designation of commodities and products.--To the extent 
     practicable, the Secretary shall permit owners of 
     certificates to designate the commodities and products, 
     including storage sites, the owners would prefer to receive 
     in exchange for certificates.
       (C) Transfers.--Marketing certificates issued to domestic 
     users and exporters of upland cotton may be transferred to 
     other persons in accordance with regulations promulgated by 
     the Secretary.
       (4) Application of threshold.--
       (A) 2002 marketing year.--During the period beginning on 
     the date of enactment of this Act and ending July 31, 2002, 
     the Secretary shall make the calculations under paragraphs 
     (1)(A) and (2) and subsection (b)(1)(B) without regard to the 
     1.25 cent threshold provided those paragraphs and subsection.
       (B) 2003 through 2006 marketing years.--During each 12-
     month period beginning August 1, 2002, through August 1, 
     2006, the Secretary may make the calculations under 
     paragraphs (1)(A) and (2) and subsection (b)(1)(B) without 
     regard to the 1.25 cent threshold provided those paragraphs 
     and subsection.
       (b) Special Import Quota.--
       (1) Establishment.--
       (A) In general.--The President shall carry out an import 
     quota program during the period beginning on the date of the 
     enactment of this Act and ending July 31, 2007, as provided 
     in this subsection.
       (B) Program requirements.--Except as provided in paragraph 
     (1)(B) and subparagraph (C), whenever the Secretary 
     determines and announces that for any consecutive 4-week 
     period, the Friday through Thursday average price quotation 
     for the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe, adjusted for the value of any certificate issued 
     under subsection (a), exceeds the Northern Europe price by 
     more than 1.25 cents per pound, there shall immediately be in 
     effect a special import quota.
       (C) Tight domestic supply.--During any month for which the 
     Secretary estimates the season-ending United States upland 
     cotton stocks-to-use ratio, as determined under subparagraph 
     (D), to be below 16 percent, the Secretary, in making the 
     determination under subparagraph (B), shall not adjust the 
     Friday through Thursday average price quotation for the 
     lowest-priced United States growth, as quoted for Middling 
     (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
     for the value of any certificates issued under subsection 
     (a).
       (D) Season-ending united states stocks-to-use ratio.--For 
     the purposes of making estimates under subparagraph (C), the 
     Secretary shall, on a monthly basis, estimate and report the 
     season-ending United States upland cotton stocks-to-use 
     ratio, excluding projected raw cotton imports but including 
     the quantity of raw cotton that has been imported into the 
     United States during the marketing year.
       (2) Quantity.--The quota shall be equal to 1 week's 
     consumption of upland cotton by domestic mills at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (3) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under paragraph (1) and entered into 
     the United States not later than 180 days after the date.
       (4) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     paragraph (1), except that a special quota period may not be 
     established under this subsection if a quota period has been 
     established under subsection (c).
       (5) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (A) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (B) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (D) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (6) Definition of special import quota.--In this 
     subsection, the term ``special import quota'' means a 
     quantity of imports that is not subject to the over-quota 
     tariff rate of a tariff-rate quota.
       (7) Limitation.--The quantity of cotton entered into the 
     United States during any marketing year under the special 
     import quota established under this subsection may not exceed 
     the equivalent of 5 week's consumption of upland cotton by 
     domestic mills at the seasonally adjusted average rate of the 
     3 months immediately preceding the first special import quota 
     established in any marketing year.
       (c) Limited Global Import Quota for Upland Cotton.--
       (1) In general.--The President shall carry out an import 
     quota program that provides that whenever the Secretary 
     determines and announces that the average price of the base 
     quality of upland cotton, as determined by the Secretary, in 
     the designated spot markets for a month exceeded 130 percent 
     of the average price of such quality of cotton in the markets 
     for the preceding 36 months, notwithstanding any other 
     provision of law, there shall immediately be in effect a 
     limited global import quota subject to the following 
     conditions:
       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent 3 months 
     for which data are available.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Definitions.--In this subsection:
       (i) Supply.--The term ``supply'' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--

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

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

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

       (aa) average exports of upland cotton during the preceding 
     6 marketing years; or
       (bb) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.
       (iii) Limited global import quota.--The term ``limited 
     global import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (E) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (2) No overlap.--Notwithstanding paragraph (1), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (b).

     SEC. 128. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG 
                   STAPLE COTTON.

       (a) Competitiveness Program.--Notwithstanding any other 
     provision of law, during the period beginning on the date of 
     the enactment of this Act and ending on July 31, 2007, the 
     Secretary shall carry out a program--
       (1) to maintain and expand the domestic use of extra long 
     staple cotton produced in the United States;
       (2) to increase exports of extra long staple cotton 
     produced in the United States; and
       (3) to ensure that extra long staple cotton produced in the 
     United States remains competitive in world markets.
       (b) Payments Under Program; Trigger.--Under the program, 
     the Secretary shall make payments available under this 
     section whenever--

[[Page 26733]]

       (1) for a consecutive 4-week period, the world market price 
     for the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is below the 
     prevailing United States price for a competing growth of 
     extra long staple cotton; and
       (2) the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is less than 134 
     percent of the loan rate for extra long staple cotton.
       (c) Eligible Recipients.--The Secretary shall make payments 
     available under this section to domestic users of extra long 
     staple cotton produced in the United States and exporters of 
     extra long staple cotton produced in the United States that 
     enter into an agreement with the Commodity Credit Corporation 
     to participate in the program under this section.
       (d) Payment Amount.--Payments under this section shall be 
     based on the amount of the difference in the prices referred 
     to in subsection (b)(1) during the 4th week of the 
     consecutive 4-week period multiplied by the amount of 
     documented purchases by domestic users and sales for export 
     by exporters made in the week following such a consecutive 4-
     week period.
       (e) Form of Payment.--Payments under this section shall be 
     made through the issuance of cash or marketing certificates, 
     at the option of eligible recipients of the payments.

     SEC. 129. RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS AND 
                   SEED COTTON AND OTHER FIBERS.

       (a) High Moisture Feed Grains.--
       (1) Recourse loans available.--For each of the 2002 through 
     2006 crops of corn and grain sorghum, the Secretary shall 
     make available recourse loans, as determined by the 
     Secretary, to producers on a farm that--
       (A) normally harvest all or a portion of their crop of corn 
     or grain sorghum in a high moisture state;
       (B) present--
       (i) certified scale tickets from an inspected, certified 
     commercial scale, including a licensed warehouse, feedlot, 
     feed mill, distillery, or other similar entity approved by 
     the Secretary, pursuant to regulations promulgated by the 
     Secretary; or
       (ii) field or other physical measurements of the standing 
     or stored crop in regions of the United States, as determined 
     by the Secretary, that do not have certified commercial 
     scales from which certified scale tickets may be obtained 
     within reasonable proximity of harvest operation;
       (C) certify that they were the owners of the feed grain at 
     the time of delivery to, and that the quantity to be placed 
     under loan under this subsection was in fact harvested on the 
     farm and delivered to, a feedlot, feed mill, or commercial or 
     on-farm high-moisture storage facility, or to a facility 
     maintained by the users of corn and grain sorghum in a high 
     moisture state; and
       (D) comply with deadlines established by the Secretary for 
     harvesting the corn or grain sorghum and submit applications 
     for loans under this subsection within deadlines established 
     by the Secretary.
       (2) Eligibility for acquired feed grains.--A loan under 
     this subsection shall be made on a quantity of corn or grain 
     sorghum of the same crop acquired by the producers on the 
     farm equivalent to a quantity obtained by multiplying--
       (A) the acreage of the corn or grain sorghum in a high 
     moisture state harvested on the farm; by
       (B) the lower of the farm program payment yield or the 
     actual yield on a field, as determined by the Secretary, that 
     is similar to the field from which the corn or grain sorghum 
     was obtained.
       (3) Definition of high moisture state.--In this subsection, 
     the term ``high moisture state'' means corn or grain sorghum 
     having a moisture content in excess of Commodity Credit 
     Corporation standards for marketing assistance loans made by 
     the Secretary under section 121.
       (b) Recourse Loans Available for Seed Cotton.--For each of 
     the 2002 through 2006 crops of upland cotton and extra long 
     staple cotton, the Secretary shall make available recourse 
     seed cotton loans, as determined by the Secretary, on any 
     production.
       (c) Repayment Rates.--Repayment of a recourse loan made 
     under this section shall be at the loan rate established for 
     the commodity by the Secretary, plus interest (as determined 
     by the Secretary).

     SEC. 130. NONRECOURSE MARKETING ASSISTANCE LOANS FOR WOOL AND 
                   MOHAIR.

       (a) In General.--For each of the 2002 through 2006 
     marketing years for wool and mohair, the Secretary shall make 
     available to producers on a farm nonrecourse marketing 
     assistance loans for wool and mohair produced on the farm 
     during that marketing year.
       (b) Loan Rates.--The loan rate for a loan under subsection 
     (a) shall be not more than--
       (1) $1.10 per pound for graded wool;
       (2) $0.40 per pound for nongraded wool (including unshorn 
     pelts); and
       (3) $3.65 per pound for mohair.
       (c) Term of Loan.--A loan under subsection (a) shall have a 
     term of 1 year beginning on the first day of the first month 
     after the month in which the loan is made.
       (d) Repayment Rates.--The Secretary shall permit the 
     producers on a farm to repay a marketing assistance loan 
     under subsection (a) for wool or mohair at a rate that is the 
     lesser of--
       (1) the loan rate established for the commodity under 
     subsection (b), plus interest (as determined by the 
     Secretary); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity; and
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (e) Loan Deficiency Payments.--
       (1) In general.--The Secretary may make loan deficiency 
     payments available to producers on a farm that, although 
     eligible to obtain a marketing assistance loan under this 
     section, agree to forgo obtaining the loan in return for 
     payments under this section.
       (2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       (A) the loan payment rate in effect under paragraph (3) for 
     the commodity; by
       (B) the quantity of the commodity produced by the producers 
     on the farm, excluding any quantity for which the producers 
     on the farm obtain a loan under this subsection.
       (3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate for wool or mohair shall be the amount 
     by which--
       (A) the loan rate in effect for the commodity under 
     subsection (b); exceeds
       (B) the rate at which a loan for the commodity may be 
     repaid under subsection (d).
       (4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the producers on a farm with respect 
     to a quantity of a wool or mohair as of the earlier of--
       (A) the date on which the producers on the farm marketed or 
     otherwise lost beneficial interest in the wool or mohair, as 
     determined by the Secretary; or
       (B) the date the producers on the farm request the payment.

     SEC. 131. NONRECOURSE MARKETING ASSISTANCE LOANS FOR HONEY.

       (a) In General.--For each of the 2002 through 2006 crops of 
     honey, the Secretary shall make available to producers on a 
     farm nonrecourse marketing assistance loans for the crop of 
     honey produced on the farm.
       (b) Loan Rate.--The loan rate for a marketing assistance 
     loan for honey under subsection (a) shall be equal to $0.60 
     cents per pound.
       (c) Term of Loan.--A marketing assistance loan under 
     subsection (a) shall have a term of 1 year beginning on the 
     first day of the first month after the month in which the 
     loan is made.
       (d) Repayment Rates.--The Secretary shall permit the 
     producers on a farm to repay a marketing assistance loan for 
     honey under subsection (a) at a rate that is the lesser of--
       (1) the loan rate for honey, plus interest (as determined 
     by the Secretary); or
       (2) the prevailing domestic market price for honey, as 
     determined by the Secretary.
       (e) Loan Deficiency Payments.--
       (1) In general.--The Secretary may make loan deficiency 
     payments available to producers on a farm of honey that, 
     although eligible to obtain a marketing assistance loan under 
     subsection (a), agree to forgo obtaining the loan in return 
     for a payment under this subsection.
       (2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       (A) the loan payment rate determined under paragraph (3); 
     by
       (B) the quantity of honey that the producers on the farm 
     are eligible to place under loan, but for which the producers 
     on the farm forgo obtaining the loan in return for a payment 
     under this subsection.
       (3) Loan payment rate.--For the purposes of this 
     subsection, the loan payment rate shall be the amount by 
     which--
       (A) the loan rate established under subsection (b); exceeds
       (B) the rate at which a loan may be repaid under subsection 
     (d).
       (4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the producers on a farm with respect 
     to a quantity of a honey as of the earlier--
       (A) the date on which the producers on the farm marketed or 
     otherwise lost beneficial interest in the honey, as 
     determined by the Secretary; or
       (B) the date the producers on the farm request the payment.
       (f) Prevention of Forfeitures.--The Secretary shall carry 
     out this section in such a manner as to minimize forfeitures 
     of honey marketing assistance loans.

[[Page 26734]]



                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

     SEC. 141. MILK PRICE SUPPORT PROGRAM.

       (a) In General.--During the period beginning on January 1, 
     2002, and ending on December 31, 2006, the Secretary shall 
     support the price of milk produced in the 48 contiguous 
     States through the purchase of cheese, butter, and nonfat dry 
     milk produced from the milk.
       (b) Rate.--During the period specified in subsection (a), 
     the price of milk shall be supported at a rate equal to $9.90 
     per hundredweight for milk containing 3.67 percent butterfat.
       (c) Purchase Prices.--
       (1) Uniform prices.--The support purchase prices under this 
     section for each of the products of milk (butter, cheese, and 
     nonfat dry milk) announced by the Secretary shall be the same 
     for all of that product sold by persons offering to sell the 
     product to the Secretary.
       (2) Amount.--The purchase prices shall be sufficient to 
     enable plants of average efficiency to pay producers, on 
     average, a price that is not less than the rate of price 
     support for milk in effect under subsection (b).
       (d) Special Rule for Butter and Nonfat Dry Milk Purchase 
     Prices.--
       (1) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate.
       (2) Notification of congress.--Not later than 10 days after 
     making or changing an allocation, the Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation.
       (3) Administration.--Section 553 of title 5, United States 
     Code, shall not apply with respect to the implementation of 
     this section.
       (4) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.

     SEC. 142. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY 
                   PROGRAMS.

       (a) Dairy Export Incentive Program.--Section 153(a) of the 
     Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended 
     by striking ``2002'' and inserting ``2006''.
       (b) Dairy Indemnity Program.--Section 3 of Public Law 90-
     484 (7 U.S.C. 450l) is amended by striking ``1995'' and 
     inserting ``2006''.

     SEC. 143. FLUID MILK PROMOTION.

       (a) Definition of Fluid Milk Product.--Section 1999C of the 
     Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended 
     by striking paragraph (3) and inserting the following:
       ``(3) Fluid milk product.--The term `fluid milk product' 
     has the meaning given the term in--
       ``(A) section 1000.15 of title 7, Code of Federal 
     Regulations, subject to such amendments as may be made by the 
     Secretary; or
       ``(B) any successor regulation providing a definition of 
     that term that is promulgated pursuant to the Agricultural 
     Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937.''.
       (b) Definition of Fluid Milk Processor.--Section 1999C(4) 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is 
     amended by striking ``500,000'' and inserting ``3,000,000''.
       (c) Elimination of Order Termination Date.--Section 1999O 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is 
     amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively.

     SEC. 144. DAIRY PRODUCT MANDATORY REPORTING.

       Section 273(b)(1)(B) of the Agricultural Marketing Act of 
     1946 (7 U.S.C. 1637b(b)(1)(B)) is amended--
       (1) by inserting ``and substantially identical products 
     designated by the Secretary'' after ``dairy products'' the 
     first place it appears; and
       (2) by inserting ``and such substantially identical 
     products'' after ``dairy products'' the second place it 
     appears.

     SEC. 145. EXEMPTION OF MILK HANDLERS FROM MINIMUM PRICE 
                   REQUIREMENTS.

       (a) In General.--Section 8c(5) of the Agricultural 
     Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments 
     by the Agricultural Marketing Agreement Act of 1937, is 
     amended by adding at the end the following:
       ``(M) Exemption of milk handlers from minimum price 
     requirements.--Notwithstanding any other provision of this 
     section, no handler that sells Class I milk in a marketing 
     area shall be exempt during any month from any minimum milk 
     price requirement established under paragraph (A) if the 
     total distribution of Class I milk produced on the farm of 
     the handler in the marketing area during the preceding month 
     exceeds the lesser of--
       ``(i) 3 percent of the total quantity of Class I milk 
     distributed in the marketing area; or
       ``(ii) 5,000,000 pounds.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on January 1, 2002.

                            CHAPTER 2--SUGAR

     SEC. 151. SUGAR PROGRAM.

       (a) Sugarcane.--The Secretary shall make loans available to 
     processors of domestically grown sugarcane at a rate equal to 
     18 cents per pound for raw cane sugar.
       (b) Sugar Beets.--The Secretary shall make loans available 
     to processors of domestically grown sugar beets at a rate 
     equal to 22.9 cents per pound for refined beet sugar.
       (c) Loan Rate Adjustments.--
       (1) Definitions.--In this subsection:
       (A) Agreement on agriculture.--The term ``Agreement on 
     Agriculture'' means the Agreement on Agriculture referred to 
     in section 101(d)(2) of the Uruguay Round Agreements Act (19 
     U.S.C. 3511(d)(2)).
       (B) Major sugar countries.--The term ``major sugar growing, 
     producing, and exporting countries'' means--
       (i) the countries of the European Union; and
       (ii) the 10 foreign countries not covered by subparagraph 
     (A) that the Secretary determines produce the greatest 
     quantity of sugar.
       (2) Adjustments.--The Secretary may reduce the loan rate 
     specified in subsection (a) for domestically grown sugarcane 
     and subsection (b) for domestically grown sugar beets if the 
     Secretary determines that negotiated reductions in export 
     subsidies and domestic subsidies provided for sugar of other 
     major sugar growing, producing, and exporting countries in 
     the aggregate exceed the commitments made as part of the 
     Agreement on Agriculture.
       (3) Extent of reduction.--The Secretary shall not reduce 
     the loan rate under subsection (a) or (b) below a rate that 
     provides an equal measure of support to that provided by 
     other major sugar growing, producing, and exporting 
     countries, based on an examination of both domestic and 
     export subsidies subject to reduction in the Agreement on 
     Agriculture.
       (4) Announcement of reduction.--The Secretary shall 
     announce any loan rate reduction to be made under this 
     subsection as far in advance as is practicable.
       (d) Term of Loans.--
       (1) In general.--A loan under this section during any 
     fiscal year shall be made available not earlier than the 
     beginning of the fiscal year and shall mature at the earlier 
     of--
       (A) the end of the 9-month period beginning on the first 
     day of the first month after the month in which the loan is 
     made; or
       (B) the end of the fiscal year in which the loan is made.
       (2) Supplemental loans.--In the case of a loan made under 
     this section in the last 3 months of a fiscal year, the 
     processor may repledge the sugar as collateral for a second 
     loan in the subsequent fiscal year, except that the second 
     loan shall--
       (A) be made at the loan rate in effect at the time the 
     second loan is made; and
       (B) mature in 9 months less the quantity of time that the 
     first loan was in effect.
       (e) Loan Type; Processor Assurances.--
       (1) Nonrecourse loans.--The Secretary shall carry out this 
     section through the use of nonrecourse loans.
       (2) Processor assurances.--
       (A) In general.--The Secretary shall obtain from each 
     processor that receives a loan under this section such 
     assurances as the Secretary considers adequate to ensure that 
     the processor will provide payments to producers that are 
     proportional to the value of the loan received by the 
     processor for sugar beets and sugarcane delivered by 
     producers served by the processor.
       (B) Minimum payments.--The Secretary may establish 
     appropriate minimum payments for purposes of this paragraph.
       (3) Administration.--The Secretary may not impose or 
     enforce any prenotification or similar administrative 
     requirement that has the effect of preventing a processor 
     from choosing to forfeit the loan collateral on the maturity 
     of the loan.
       (f) Loans for In-Process Sugar.--
       (1) Definition of in-process sugars and syrups.--In this 
     subsection, the term ``in-process sugars and syrups'' does 
     not include raw sugar, liquid sugar, invert sugar, invert 
     syrup, or other finished product that is otherwise eligible 
     for a loan under subsection (a) or (b).
       (2) Availability.--The Secretary shall make nonrecourse 
     loans available to processors of a crop of domestically grown 
     sugarcane and sugar beets for in-process sugars and syrups 
     derived from the crops.
       (3) Loan rate.--The loan rate shall be equal to 80 percent 
     of the loan rate applicable to raw cane sugar or refined beet 
     sugar, as determined on the basis of the source material for 
     the in-process sugars and syrups.
       (4) Further processing on forfeiture.--
       (A) In general.--As a condition on the forfeiture of in-
     process sugars and syrups serving as collateral for a loan 
     under paragraph (2), the processor shall, within such 
     reasonable time period as the Secretary may prescribe and at 
     no cost to the Commodity Credit Corporation, convert the in-
     process sugars and syrups into raw cane sugar or refined beet 
     sugar of acceptable grade and quality for sugars eligible for 
     loans under subsection (a) or (b).

[[Page 26735]]

       (B) Transfer to corporation.--Once the in-process sugars 
     and syrups are fully processed into raw cane sugar or refined 
     beet sugar, the processor shall transfer the sugar to the 
     Corporation.
       (C) Payment to processor.--Subject to subsection (g), on 
     transfer of the sugar, the Secretary shall make a payment to 
     the processor in an amount equal to the difference between--
       (i) the loan rate for raw cane sugar or refined beet sugar, 
     as appropriate; and
       (ii) the loan rate the processor received under paragraph 
     (1).
       (5) Loan conversion.--If the processor does not forfeit the 
     collateral as described in paragraph (4), but instead further 
     processes the in-process sugars and syrups into raw cane 
     sugar or refined beet sugar and repays the loan on the in-
     process sugars and syrups, the processor may obtain a loan 
     under subsection (a) or (b) on the raw cane sugar or refined 
     beet sugar, as appropriate.
       (g) Forfeiture Penalty.--
       (1) In general.--A penalty shall be assessed on the 
     forfeiture of any sugar pledged as collateral for a 
     nonrecourse loan under this section.
       (2) Cane sugar.--The penalty for cane sugar shall be 1 cent 
     per pound.
       (3) Beet sugar.--The penalty for beet sugar shall bear the 
     same relation to the penalty for cane sugar as the marketing 
     assessment for sugar beets bears to the marketing assessment 
     for sugarcane.
       (4) Effect of forfeiture.--Any payments owed producers by a 
     processor that forfeits any sugar pledged as collateral for a 
     nonrecourse loan shall be reduced in proportion to the loan 
     forfeiture penalty incurred by the processor.
       (h) Information Reporting.--
       (1) Duty of processors and refiners to report.--A sugarcane 
     processor, cane sugar refiner, and sugar beet processor shall 
     furnish the Secretary, on a monthly basis, such information 
     as the Secretary may require to administer sugar programs, 
     including the quantity of purchases of sugarcane, sugar 
     beets, and sugar, and production, importation, distribution, 
     and stock levels of sugar.
       (2) Duty of producers to report.--
       (A) Proportionate share states.--The Secretary shall 
     require a producer of sugarcane located in a State (other 
     than Puerto Rico) in which there are in excess of 250 
     producers of sugarcane to report, in the manner prescribed by 
     the Secretary, the sugarcane yields and acres planted to 
     sugarcane of the producer.
       (B) Other states.--The Secretary may require each producer 
     of sugarcane or sugar beets not covered by paragraph (1) to 
     report, in a manner prescribed by the Secretary, the yields 
     and acres planted to sugarcane or sugar beets, respectively, 
     of the producer.
       (3) Duty of importers to report.--
       (A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall require an importer of sugars, syrups, or 
     molasses to be used for human consumption or to be used for 
     the extraction of sugar for human consumption to report, in 
     the manner prescribed by the Secretary, the quantities of the 
     products imported by the importer and the sugar content or 
     equivalent of the products.
       (B) Tariff-rate quotas.--Subparagraph (A) shall not apply 
     to sugars, syrups, or molasses that are within the quantities 
     of tariff-rate quotas that are at the lower rate of duties.
       (4) Penalty.--Any person willfully failing or refusing to 
     furnish the information, or furnishing willfully any false 
     information, shall be subject to a civil penalty of not more 
     than $10,000 for each such violation.
       (5) Monthly reports.--Taking into consideration the 
     information received under this subsection, the Secretary 
     shall publish on a monthly basis composite data on 
     production, imports, distribution, and stock levels of sugar.
       (i) Avoiding Forfeitures; Corporation Inventory 
     Disposition.--
       (1) No cost.--Subject to subsection (e)(3), to the maximum 
     extent practicable, the Secretary shall operate the program 
     established under this section at no cost to the Federal 
     Government by avoiding the forfeiture of sugar to the 
     Commodity Credit Corporation.
       (2) Inventory disposition.--
       (A) In general.--To carry out paragraph (1), the Commodity 
     Credit Corporation may accept bids to obtain raw cane sugar 
     or refined beet sugar in the inventory of the Corporation 
     from (or otherwise make available such commodities, on 
     appropriate terms and conditions, to) processors of sugarcane 
     and processors of sugar beets (acting in conjunction with the 
     producers of the sugarcane or sugar beets processed by the 
     processors) in return for the reduction of production of raw 
     cane sugar or refined beet sugar, as appropriate.
       (B) Additional authority.--The authority provided under 
     this paragraph is in addition to any authority of the 
     Corporation under any other law.
       (j) Crops.--This section shall be effective only for the 
     1996 through 2006 crops of sugar beets and sugarcane.

     SEC. 152. STORAGE FACILITY LOANS.

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

     SEC. 153. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

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

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

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

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

       (B) by redesignating paragraph (2) as paragraph (3);
       (C) by inserting after paragraph (1) the following:
       ``(2) Exclusion.--The estimates in this section shall not 
     include sugar imported for the production of polyhydric 
     alcohol or to be refined and re-exported in refined form or 
     in products containing sugar.''; and
       (D) in paragraph (3) (as so redesignated)--
       (i) in the paragraph heading, by striking ``Quarterly 
     reestimates'' and inserting ``Reestimates''; and
       (ii) by inserting ``as necessary, but'' after ``a fiscal 
     year'';
       (3) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--By the beginning of each fiscal year, 
     the Secretary shall establish for that fiscal year 
     appropriate allotments under section 359c for the marketing 
     by processors of sugar processed from sugar beets and from 
     domestically-produced sugarcane at a level that the Secretary 
     estimates will result in no forfeitures of sugar to the 
     Commodity Credit Corporation under the loan program for sugar 
     established under section 151 of the Agriculture, 
     Conservation, and Rural Enhancement Act of 2001.''; and
       (B) in paragraph (2), by striking ``or crystalline 
     fructose'';
       (4) by striking subsection (c);
       (5) by redesignating subsection (d) as subsection (c); and
       (6) in subsection (c) (as so redesignated)--
       (A) by striking paragraph (2);
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (C) in paragraph (2) (as so redesignated)--
       (i) by striking ``or manufacturer'' and all that follows 
     through ``(2)''; and

[[Page 26736]]

       (ii) by striking ``or crystalline fructose''.
       (c) Establishment.--Section 359c of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
       (1) in the section heading, by inserting ``FLEXIBLE'' after 
     ``OF'';
       (2) in subsection (a), by inserting ``flexible'' after 
     ``establish'';
       (3) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``1,250,000'' and 
     inserting ``1,532,000''; and
       (B) in paragraph (2), by striking ``to the maximum extent 
     practicable'';
       (4) by striking subsection (c) and inserting the following:
       ``(c) Marketing Allotment for Sugar Derived from Sugar 
     Beets and Sugar Derived from Sugarcane.--The overall 
     allotment quantity for the fiscal year shall be allotted 
     among--
       ``(1) sugar derived from sugar beets by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by 54.35 percent; and
       ``(2) sugar derived from sugarcane by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by 45.65 percent.'';
       (5) by striking subsection (d) and inserting the following:
       ``(d) Filling Cane Sugar and Beet Sugar Allotments.--
       ``(1) Cane sugar.--Each marketing allotment for cane sugar 
     established under this section may only be filled with sugar 
     processed from domestically grown sugarcane.
       ``(2) Beet sugar.--Each marketing allotment for beet sugar 
     established under this section may only be filled with sugar 
     domestically processed from sugar beets.'';
       (6) by striking subsection (e);
       (7) by redesignating subsection (f) as subsection (e);
       (8) in subsection (e) (as so redesignated)--
       (A) by striking ``The allotment'' and inserting the 
     following:
       ``(1) In general.--The allotment'';
       (B) in paragraph (1) (as so redesignated)--
       (i) by striking ``the 5'' and inserting ``the'';
       (ii) by inserting after ``sugarcane is produced,'' the 
     following: ``after a hearing (if requested by the affected 
     sugar cane processors and growers) and on such notice as the 
     Secretary by regulation may prescribe,''; and
       (iii) by striking ``on the basis of past marketings'' and 
     all that follows through ``allotments'' and inserting ``as 
     provided in this subsection and section 359d(a)(2)(A)(iv)''; 
     and
       (C) by inserting after paragraph (1) (as so designated) the 
     following:
       ``(2) Offshore allotment.--
       ``(A) Collectively.--Prior to the allotment of sugar 
     derived from sugarcane to any other State, 325,000 short 
     tons, raw value shall be allotted to the offshore States.
       ``(B) Individually.--The collective offshore State 
     allotment provided for under subparagraph (A) shall be 
     further allotted among the offshore States in which sugarcane 
     is produced, after a hearing (if requested by the affected 
     sugar cane processors and growers) and on such notice as the 
     Secretary by regulation may prescribe, in a fair and 
     equitable manner on the basis of--
       ``(i) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(ii) the ability of processors to market the sugar 
     covered under the allotments for the crop year; and
       ``(iii) past processings of sugar from sugarcane based on 
     the 3-year average of the crop years 1998 through 2000.
       ``(3) Mainland allotment.--The allotment for sugar derived 
     from sugarcane, less the amount provided for under paragraph 
     (2), shall be allotted among the mainland States in the 
     United States in which sugarcane is produced, after a hearing 
     (if requested by the affected sugar cane processors and 
     growers) and on such notice as the Secretary by regulation 
     may prescribe, in a fair and equitable manner on the basis 
     of--
       ``(A) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(B) the ability of processors to market the sugar covered 
     under the allotments for the crop year; and
       ``(C) past processings of sugar from sugarcane, based on 
     the 3 crop years with the greatest processings (in the 
     mainland States collectively) during the 1991 through 2000 
     crop years.'';
       (9) by inserting after subsection (e) (as so redesignated) 
     the following:
       ``(f) Filling Cane Sugar Allotments.--Except as provided in 
     section 359e, a State cane sugar allotment established under 
     subsection (e) for a fiscal year may be filled only with 
     sugar processed from sugarcane grown in the State covered by 
     the allotment.'';
       (10) in subsection (g)--
       (A) in paragraph (1), by striking ``359b(a)(2)--'' and all 
     that follows through the comma at the end of subparagraph (C) 
     and inserting ``359b(a)(3), adjust upward or downward 
     marketing allotments in a fair and equitable manner'';
       (B) in paragraph (2), by striking ``359f(b)'' and inserting 
     ``359f(c)''; and
       (C) in paragraph (3)--
       (i) in the paragraph heading, by striking ``Reductions'' 
     and inserting ``Carry-over of reductions'';
       (ii) by inserting after ``this subsection, if'' the 
     following: ``at the time of the reduction'';
       (iii) by striking ``price support'' and inserting 
     ``nonrecourse'';
       (iv) by striking ``206'' and all that follows through ``the 
     allotment'' and inserting ``156 of the Agricultural Market 
     Transition Act (7 U.S.C. 7272),''; and
       (v) by striking ``, if any,''; and
       (11) by striking subsection (h) and inserting the 
     following:
       ``(h) Suspension of Allotments.--Whenever the Secretary 
     estimates or reestimates under section 359b(a), or has reason 
     to believe, that imports of sugars, syrups or molasses for 
     human consumption or to be used for the extraction of sugar 
     for human consumption, whether under a tariff-rate quota or 
     in excess or outside of a tariff-rate quota, will exceed 
     1,532,000 short tons (raw value equivalent), and that the 
     imports would lead to a reduction of the overall allotment 
     quantity, the Secretary shall suspend the marketing 
     allotments until such time as the imports have been 
     restricted, eliminated, or reduced to or below the level of 
     1,532,000 short tons (raw value equivalent).''.
       (d) Allocation.--Section 359d(a)(2) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359dd(a)(2)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``The Secretary'' and inserting the 
     following:
       ``(i) In general.--The Secretary'';
       (B) in the first sentence of clause (i) (as so 
     designated)--
       (i) by striking ``interested parties'' and inserting ``the 
     affected sugar cane processors and growers''; and
       (ii) by striking ``by taking'' and all that follows through 
     ``allotment allocated.'' and inserting ``under this 
     subparagraph.''; and
       (C) by inserting after clause (i) the following:
       ``(ii) Multiple processor states.--Except as provided in 
     clauses (iii) and (iv), the Secretary shall allocate the 
     allotment for cane sugar among multiple cane sugar processors 
     in a single State based on--

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

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

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

       ``(v) New entrants.--

       ``(I) In general.--Notwithstanding clauses (ii) and (iii), 
     the Secretary, on application of any processor that begins 
     processing sugarcane on or after the date of enactment of 
     this clause, and after a hearing (if requested by the 
     affected sugarcane processors and growers) and on such notice 
     as the Secretary by regulation may prescribe, may provide the 
     processor with an allocation that provides a fair, efficient 
     and equitable distribution of the allocations from the 
     allotment for the State in which the processor is located.
       ``(II) Proportionate share states.--In the case of 
     proportionate share States, the Secretary shall establish 
     proportionate shares in a quantity sufficient to produce the 
     sugarcane required to satisfy the allocations.
       ``(III) Limitation.--The allotment for a new processor 
     under this clause shall not exceed 50,000 short tons (raw 
     value).

       ``(vi) Transfer of ownership.--Except as otherwise provided 
     in section 359f(c)(8), in the event that a sugarcane 
     processor is sold or otherwise transferred to another owner, 
     or closed as part of an affiliated corporate group processing 
     consolidation, the Secretary shall transfer the allotment 
     allocation for the processor to the purchaser, new owner, or 
     successor in interest, as applicable, of the processor.''; 
     and
       (2) in subparagraph (B)--
       (A) in the first sentence, by striking ``The Secretary'' 
     and inserting the following:

[[Page 26737]]

       ``(i) In general.--The Secretary'';
       (B) in clause (i) (as so designated)--
       (i) by striking ``interested parties'' and inserting ``the 
     affected sugar beet processors and growers''; and
       (ii) by striking ``processing capacity'' and all that 
     follows through ``allotment allocated'' and inserting the 
     following: ``the marketings of sugar processed from sugar 
     beets of any or all of the 1996 through 2000 crops, and such 
     other factors as the Secretary may consider appropriate after 
     consultation with the affected sugar beet processors and 
     growers.''; and
       (C) by adding at the end the following:
       ``(ii) New processors.--In the case of any processor that 
     has started processing sugar beets after January 1, 1996, the 
     Secretary shall provide the processor with an allocation that 
     provides a fair, efficient and equitable distribution of the 
     allocations.''.
       (e) Reassignment.--Section 359e(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B), by striking the ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B) the following:
       ``(C) if after the reassignments, the deficit cannot be 
     completely eliminated, the Secretary shall reassign the 
     estimated quantity of the deficit to the sale of any 
     inventories of sugar held by the Commodity Credit 
     Corporation; and''; and
       (D) in subparagraph (D) (as so redesignated), by inserting 
     ``and sales'' after ``reassignments''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking the ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by striking ``reassign the 
     remainder to imports.'' and inserting ``use the estimated 
     quantity of the deficit for the sale of any inventories of 
     sugar held by the Commodity Credit Corporation; and''; and
       (C) by inserting after subparagraph (B) the following:
       ``(C) if after the reassignments and sales, the deficit 
     cannot be completely eliminated, the Secretary shall reassign 
     the remainder to imports.''.
       (f) Producer Provisions.--Section 359f of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
       (1) in subsection (a)--
       (A) in the second sentence, by striking ``processor's 
     allocation'' and inserting ``allocation to the processor''; 
     and
       (B) by adding at the end the following: ``The arbitration 
     should be completed not more than 45 days after the request 
     and shall be completed not more than 60 days after the 
     request.'';
       (2) by redesignating subsection (b) as subsection (c);
       (3) by inserting after subsection (a) the following:
       ``(b) Sugar Beet Processing Facility Closures.--
       ``(1) In general.--If a sugar beet processing facility is 
     closed and the sugar beet growers that previously delivered 
     beets to the facility desire to deliver their beets to 
     another processing company, the growers may petition the 
     Secretary to modify existing allocations to allow the 
     delivery.
       ``(2) Increased allocation for processing company.--The 
     Secretary may increase the allocation to the processing 
     company to which the growers desire to deliver their sugar 
     beets, with the approval of the processing company, to a 
     level that does not exceed the processing capacity of the 
     processing company, to accommodate the change in deliveries.
       ``(3) Decreased allocation for closed company.--The 
     increased allocation shall be deducted from the allocation to 
     the company that owned the processing facility that has been 
     closed and the remaining allocation will be unaffected.
       ``(4) Timing.--The determinations of the Secretary on the 
     issues raised by the petition shall be made within 60 days 
     after the filing of the petition.''; and
       (4) in subsection (c) (as so redesignated)--
       (A) in paragraph (3)(A), by striking ``the preceding 5 
     years'' and inserting ``the 2 highest years from among the 
     1999, 2000, and 2001 crop years'';
       (B) in paragraph (4)(A), by striking ``each'' and all that 
     follows through ``in effect'' and inserting ``the 2 highest 
     of the 1999, 2000, and 2001 crop years''; and
       (C) by inserting after paragraph (7) the following:
       ``(8) Processing facility closures.--
       ``(A) In general.--If a sugarcane processing facility 
     subject to this subsection is closed and the sugarcane 
     growers that previously delivered sugarcane to the facility 
     desire to deliver their sugarcane to another processing 
     company, the growers may petition the Secretary to modify 
     existing allocations to allow the delivery.
       ``(B) Increased allocation for processing company.--The 
     Secretary may increase the allocation to the processing 
     company to which the growers desire to deliver the sugarcane, 
     with the approval of the processing company, to a level that 
     does not exceed the processing capacity of the processing 
     company, to accommodate the change in deliveries;
       ``(C) Decreased allocation for closed company.--The 
     increased allocation shall be deducted from the allocation to 
     the company that owned the processing facility that has been 
     closed and the remaining allocation will be unaffected.
       ``(D) Timing.--The determinations of the Secretary on the 
     issues raised by the petition shall be made within 60 days 
     after the filing of the petition.''.
       (g) Conforming Amendments.--
       (1) Part VII of subtitle B of title III of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended by 
     striking the part heading and inserting the following:

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

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

     ``SEC. 359. DEFINITIONS.

       ``In this part:
       ``(1) Mainland state.--The term `mainland State' means a 
     State other than an offshore State.
       ``(2) Offshore state.--The term `offshore State' means a 
     sugarcane producing State located outside of the continental 
     United States.
       ``(3) State.--Notwithstanding section 301, the term `State' 
     means the 50 States, the District of Columbia, and the 
     Commonwealth of Puerto Rico.
       ``(4) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.''.
       (3) Section 359g of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1359gg) is amended--
       (A) by striking ``359f'' each place it appears and 
     inserting ``359f(c)'';
       (B) in the first sentence of subsection (b), by striking 
     ``3 consecutive'' and inserting ``5 consecutive''; and
       (C) in subsection (c), by inserting ``or adjusted'' after 
     ``share established''.
       (4) Section 359j of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1359jj) is amended to striking subsection (c).

                           CHAPTER 3--PEANUTS

     SEC. 161. DEFINITIONS.

       In this chapter:
       (1) Counter-cyclical payment.--The term ``counter-cyclical 
     payment'' means a payment made to peanut producers on a farm 
     under section 164.
       (2) Effective price.--The term ``effective price'' means 
     the price calculated by the Secretary under section 164 for 
     peanuts to determine whether counter-cyclical payments are 
     required to be made under section 164 for a crop year.
       (3) Historic peanut producers on a farm.--The term 
     ``historic peanut producers on a farm'' means the peanut 
     producers on a farm in the United States that produced or 
     were prevented from planting peanuts during any of the 1998 
     through 2001 crop years.
       (4) Fixed, decoupled payment.--The term ``fixed, decoupled 
     payment'' means a payment made to peanut producers on a farm 
     under section 163.
       (5) Payment acres.--The term ``payment acres'' means 85 
     percent of the peanut acres on a farm, as established under 
     section 162, on which fixed, decoupled payments and counter-
     cyclical payments are made.
       (6) Peanut acres.--The term ``peanut acres'' means the 
     number of acres assigned to a particular farm by historic 
     peanut producers on a farm pursuant to section 162(b).
       (7) Payment yield.--The term ``payment yield'' means the 
     yield assigned to a farm by historic peanut producers on the 
     farm pursuant to section 162(b).
       (8) Peanut producer.--The term ``peanut producer'' means an 
     owner, operator, landlord, tenant, or sharecropper that--
       (A) shares in the risk of producing a crop of peanuts in 
     the United States; and
       (B) is entitled to share in the crop available for 
     marketing from the farm or would have shared in the crop had 
     the crop been produced.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (10) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (11) Target price.--The term ``target price'' means the 
     price per ton of peanuts used to determine the payment rate 
     for counter-cyclical payments.
       (12) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 162. PAYMENT YIELDS, PEANUT ACRES, AND PAYMENT ACRES FOR 
                   FARMS.

       (a) Payment Yields and Payment Acres.--
       (1) Average yield.--
       (A) In general.--The Secretary shall determine, for each 
     historic peanut producer, the average yield for peanuts on 
     all farms of the historic peanut producer for the 1998 
     through 2001 crop years, excluding any crop year in which the 
     producers did not produce peanuts. Crop years 1996 or 1997 
     may be used to subsitute for any one of the crop years 
     described herein in a county provided such

[[Page 26738]]

     county was declared a disaster area during 1 or more of the 4 
     crop years 1998 through 2001.
       (B) Assigned yields.--If, for any of the crop years 
     referred to in subparagraph (A) in which peanuts were planted 
     on a farm by the historic peanut producer, the historic 
     peanut producer has satisfied the eligibility criteria 
     established to carry out section 1102 of the Agriculture, 
     Rural Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1999 (7 U.S.C. 1421 note; Public 
     Law 105-277), the Secretary shall assign to the historic 
     peanut producer a yield for the farm for the crop year equal 
     to 65 percent of the county yield, as determined by the 
     Secretary.
       (2) Acreage average.--The Secretary shall determine, for 
     the historic peanut producer, the 4-year average of--
       (A) acreage planted to peanuts on all farms for harvest 
     during the 1998 through 2001 crop years; and
       (B) any acreage that was prevented from being planting to 
     peanuts during the crop years because of drought, flood, or 
     other natural disaster, or other condition beyond the control 
     of the historic peanut producer, as determined by the 
     Secretary.
       (3) Multiple historic peanut producers.--If more than 1 
     historic peanut producer shared in the risk of producing the 
     crop on the farm, the historic peanut producers shall receive 
     their proportional share of the number of acres planted (or 
     prevented from being planted) to peanuts for harvest on the 
     farm based on the sharing arrangement that was in effect 
     among the producers for the crop.
       (4) Selection by producer.--If a county in which a historic 
     peanut producer described in paragraph (1) is located is 
     declared a disaster area during 1 or more of the 4 crop years 
     described in paragraph (1), for purposes of determining the 
     4-year average acreage for the historic peanut producer, the 
     historic peanut producer may elect to substitute, for not 
     more than 1 of the crop years during which a disaster is 
     declared--
       (A) the State average of acreage actually planted in 
     peanuts; for
       (B) the average of acreage for the historic peanut producer 
     determined by the Secretary under paragraph (1).
       (5) Time for determinations; factors.--
       (A) Timing.--The Secretary shall make the determinations 
     required by this subsection not later than 90 days after the 
     date of the enactment of this Act.
       (B) Factors.--In making the determinations, the Secretary 
     shall take into account changes in the number and identity of 
     historic peanut producers sharing in the risk of producing a 
     peanut crop since the 1998 crop year, including providing a 
     method for the assignment of average acres and average yield 
     to a farm when a historic peanut producer is no longer living 
     or an entity composed of historic peanut producers has been 
     dissolved.
       (b) Assignment of Yield and Acres to Farms.--
       (1) Assignment by historic peanut producers.--The Secretary 
     shall provide each historic peanut producer with an 
     opportunity to assign the average peanut yield and average 
     acreage determined under subsection (a) for the historic 
     peanut producer to cropland on a farm for each crop year 
     through 2006.
       (2) Payment yield.--The average of all of the yields 
     assigned by historic peanut producers to a farm shall be 
     considered to be the payment yield for the farm for the 
     purpose of making fixed decoupled payments and counter-
     cyclical payments under this chapter.
       (3) Peanut acres.--Subject to subsection (e), the total 
     number of acres assigned by historic peanut producers to a 
     farm shall be considered to be the peanut acres for the farm 
     for the purpose of making fixed decoupled payments and 
     counter-cyclical payments under this chapter.
       (c) Election.--Not later than 180 days after the date of 
     the enactment of this Act, a historic peanut producer shall 
     notify the Secretary of the assignments described in 
     subsection (b) for crop year 2002. For crop years 2003 
     through 2006 a historic peanut producer shall notify the 
     Secretary of the assignments described in subsection (b) no 
     later than 180 days after January 1 of each year.
       (d) Payment Acres.--The payment acres for peanuts on a farm 
     shall be equal to 85 percent of the peanut acres assigned to 
     the farm.
       (e) Prevention of Excess Peanut Acres.--
       (1) Required reduction.--If the sum of the peanut acres for 
     a farm, together with the acreage described in paragraph (3), 
     exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of peanut acres for the 
     farm or base acres for 1 or more covered commodities for the 
     farm as necessary so that the sum of the peanut acres and 
     acreage described in paragraph (3) does not exceed the actual 
     cropland acreage of the farm.
       (2) Selection of acres.--The Secretary shall give the 
     peanut producers on the farm the opportunity to select the 
     peanut acres or base acres against which the reduction will 
     be made.
       (3) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include--
       (A) any base acres for the farm under subtitle A;
       (B) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       (C) any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       (3) Double-cropped acreage.--In applying paragraph (1), the 
     Secretary shall take into account additional acreage as a 
     result of an established double-cropping history on a farm, 
     as determined by the Secretary.

     SEC. 163. FIXED, DECOUPLED PAYMENTS FOR PEANUTS.

       (a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make fixed, decoupled payments to 
     peanut producers on a farm with peanut acres under section 
     162 and a payment yield for peanuts under section 162.
       (b) Payment Rate.--The payment rate used to make fixed, 
     decoupled payments with respect to peanuts for a fiscal year 
     shall be equal to $0.018 per pound.
       (c) Payment Amount.--The amount of the fixed, decoupled 
     payment to be paid to the peanut producers on a farm for 
     peanuts for a fiscal year shall be equal to the product 
     obtained by multiplying--
       (1) the payment rate specified in subsection (b);
       (2) the payment acres on the farm; by
       (3) the payment yield for the farm.
       (d) Time for Payment.--
       (1) In general.--The Secretary shall make fixed, decoupled 
     payments--
       (A) in the case of the 2002 fiscal year, during the period 
     beginning December 1, 2001, and ending September 30, 2002; 
     and
       (B) in the case of each of the 2003 through 2006 fiscal 
     years, not later than September 30 of the fiscal year.
       (2) Advance payments.--
       (A) In general.--At the option of the peanut producers on a 
     farm, the Secretary shall pay 50 percent of the fixed, 
     decoupled payment for a fiscal year for the producers on the 
     farm on a date selected by the peanut producers on the farm.
       (B) Selected date.--The selected date for a fiscal year 
     shall be on or after December 1 of the fiscal year.
       (C) Subsequent fiscal years.--The peanut producers on a 
     farm may change the selected date for a subsequent fiscal 
     year by providing advance notice to the Secretary.
       (3) Repayment of advance payments.--If any peanut producer 
     on a farm receives an advance fixed, decoupled payment for a 
     fiscal year ceases to be eligible for a fixed, decoupled 
     payment before the date the fixed, decoupled payment would 
     have been made by the Secretary under paragraph (1), the 
     peanut producer shall be responsible for repaying the 
     Secretary the full amount of the advance payment.

     SEC. 164. COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

       (a) In General.--For each of the 2002 through 2006 crops of 
     peanuts, the Secretary shall make counter-cyclical payments 
     with respect to peanuts if the Secretary determines that the 
     effective price for peanuts is less than the target price for 
     peanuts.
       (b) Effective Price.--For purposes of subsection (a), the 
     effective price for peanuts is equal to the sum of--
       (1) the greater of--
       (A) the national average market price received by peanut 
     producers during the 5-month marketing season for peanuts, as 
     determined by the Secretary; or
       (B) the national average loan rate for a marketing 
     assistance loan for peanuts in effect for the 5-month 
     marketing season for peanuts under this chapter; and
       (2) the payment rate in effect for peanuts under section 
     163 for the purpose of making fixed, decoupled payments with 
     respect to peanuts.
       (c) Target Price.--For purposes of subsection (a), the 
     target price for peanuts shall be equal to $550 per ton.
       (d) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to peanuts for a crop year 
     shall be equal to the difference between--
       (1) the target price for peanuts; and
       (2) the effective price determined under subsection (b) for 
     peanuts.
       (e) Payment Amount.--The amount of the counter-cyclical 
     payment to be paid to the peanut producers on a farm for a 
     crop year shall be equal to the product obtained by 
     multiplying--
       (1) the payment rate specified in subsection (d);
       (2) the payment acres on the farm; by
       (3) the payment yield for the farm.
       (f) Time for Payments.--
       (1) In general.--The Secretary shall make counter-cyclical 
     payments to peanut producers on a farm under this section for 
     a crop of peanuts as soon as practicable after determining 
     under subsection (a) that the payments are required for the 
     crop year.
       (2) Partial payment.--
       (A) In general.--At the option of the Secretary, the peanut 
     producers on a farm may elect to receive up to 40 percent of 
     the projected counter-cyclical payment to be made

[[Page 26739]]

     under this section for a crop of peanuts on completion of the 
     first 2 months of the 5-month marketing season for the crop, 
     as determined by the Secretary.
       (B) Repayment.--The peanut producers on a farm shall repay 
     to the Secretary the amount, if any, by which the payment 
     received by producers on the farm (including any partial 
     payments) exceeds the counter-cyclical payment the producers 
     on the farm are eligible for under this section.

     SEC. 165. PRODUCER AGREEMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the peanut producers on a farm 
     may receive fixed, decoupled payments or counter-cyclical 
     payments with respect to the farm, the peanut producers on 
     the farm shall agree during the fiscal year or crop year, 
     respectively, for which the payments are received, in 
     exchange for the payments--
       (A) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 166; and
       (D) to use a quantity of the land on the farm equal to the 
     peanut acres, for an agricultural or conserving use, and not 
     for a nonagricultural commercial or industrial use, as 
     determined by the Secretary.
       (2) Compliance.--The Secretary may promulgate such 
     regulations as the Secretary considers necessary to ensure 
     peanut producer compliance with paragraph (1).
       (b) Foreclosure.--
       (1) In general.--The Secretary shall not require the peanut 
     producers on a farm to repay a fixed, decoupled payment or 
     counter-cyclical payment if the farm has been foreclosed on 
     and the Secretary determines that forgiving the repayment is 
     appropriate to provide fair and equitable treatment.
       (2) Compliance with requirements.--
       (A) In general.--This subsection shall not void the 
     responsibilities of the peanut producers on a farm under 
     subsection (a) if the peanut producers on the farm continue 
     or resume operation, or control, of the farm.
       (B) Applicable requirements.--On the resumption of 
     operation or control over the farm by the peanut producers on 
     the farm, the requirements of subsection (a) in effect on the 
     date of the foreclosure shall apply.
       (c) Transfer or Change of Interest in Farm.--
       (1) Termination.--Except as provided in paragraph (5), a 
     transfer of (or change in) the interest of the peanut 
     producers on a farm in peanut acres for which fixed, 
     decoupled payments or counter-cyclical payments are made 
     shall result in the termination of the payments with respect 
     to the peanut acres, unless the transferee or owner of the 
     acreage agrees to assume all obligations under subsection 
     (a).
       (2) Effective date.--The termination takes effect on the 
     date of the transfer or change.
       (3) Transfer of payment base and yield.--There is no 
     restriction on the transfer of the peanut acres or payment 
     yield of a farm as part of a transfer or change described in 
     paragraph (1).
       (4) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of 
     subsection (a) if the modifications are consistent with the 
     objectives of subsection (a), as determined by the Secretary.
       (5) Exception.--If a peanut producer entitled to a fixed, 
     decoupled payment or counter-cyclical payment dies, becomes 
     incompetent, or is otherwise unable to receive the payment, 
     the Secretary shall make the payment, in accordance with 
     regulations promulgated by the Secretary.
       (d) Acreage Reports.--As a condition on the receipt of any 
     benefits under this chapter, the Secretary shall require the 
     peanut producers on a farm to submit to the Secretary acreage 
     reports for the farm.
       (e) Tenants and Sharecroppers.--In carrying out this 
     chapter, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       (f) Sharing of Payments.--The Secretary shall provide for 
     the sharing of fixed, decoupled payments and counter-cyclical 
     payments among the peanut producers on a farm on a fair and 
     equitable basis.

     SEC. 166. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on peanut acres on a farm.
       (b) Limitations and Exceptions Regarding Certain 
     Commodities.--
       (1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on peanut acres:
       (A) Fruits.
       (B) Vegetables (other than lentils, mung beans, and dry 
     peas).
       (C) Wild rice.
       (2) Exceptions.--Paragraph (1) shall not limit the planting 
     of an agricultural commodity specified in paragraph (1)--
       (A) in any region in which there is a history of double-
     cropping of peanuts with agricultural commodities specified 
     in paragraph (1), as determined by the Secretary, in which 
     case the double-cropping shall be permitted;
       (B) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in paragraph 
     (1) on peanut acres, except that fixed, decoupled payments 
     and counter-cyclical payments shall be reduced by an acre for 
     each acre planted to the agricultural commodity; or
       (C) by the peanut producers on a farm that the Secretary 
     determines has an established planting history of a specific 
     agricultural commodity specified in paragraph (1), except 
     that--
       (i) the quantity planted may not exceed the average annual 
     planting history of the agricultural commodity by the peanut 
     producers on the farm during the 1991 through 1995 crop years 
     (excluding any crop year in which no plantings were made), as 
     determined by the Secretary; and
       (ii) fixed, decoupled payments and counter-cyclical 
     payments shall be reduced by an acre for each acre planted to 
     the agricultural commodity.

     SEC. 167. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS FOR PEANUTS.

       (a) Nonrecourse Loans Available.--
       (1) Availability.--For each of the 2002 through 2006 crops 
     of peanuts, the Secretary shall make available to peanut 
     producers on a farm nonrecourse marketing assistance loans 
     for peanuts produced on the farm.
       (2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under subsection (b).
       (3) Eligible production.--The producers on a farm shall be 
     eligible for a marketing assistance loan under subsection (a) 
     for any quantity of a peanuts produced on the farm.
       (4) Treatment of certain commingled commodities.--In 
     carrying out this subsection, the Secretary shall make loans 
     to peanut producers on a farm that would be eligible to 
     obtain a marketing assistance loan but for the fact the 
     peanuts owned by the peanut producers on the farm are 
     commingled with other peanuts of other producers in 
     facilities unlicensed for the storage of agricultural 
     commodities by the Secretary or a State licensing authority, 
     if the peanut producers on a farm obtaining the loan agree to 
     immediately redeem the loan collateral in accordance with 
     section 176.
       (5) Options for obtaining loan.--A marketing assistance 
     loan under this subsection, and loan deficiency payments 
     under subsection (e), may be obtained at the option of the 
     peanut producers on a farm through--
       (A) a designated marketing association of peanut producers 
     that is approved by the Secretary and that is operated 
     primarily for the purpose of conducting loan activities on 
     behalf of peanut producer members facilitating the use of 
     commingled storage as a means of offering marketing 
     alternatives. Such area marketing associations may construct 
     or own storage facilities as necessary: Provided further, 
     That separate marketing pools may be created for Valencia 
     type peanuts produced in New Mexico;
       (B) the Farm Service Agency; or
       (C) a loan servicing agent approved by the Secretary.
       (b) Loan Rate.--The loan rate for a marketing assistance 
     loan under for peanuts subsection (a) shall be equal to $400 
     per ton.
       (c) Term of Loan.--
       (1) In general.--A marketing assistance loan for peanuts 
     under subsection (a) shall have a term of 9 months beginning 
     on the first day of the first month after the month in which 
     the loan is made.
       (2) Extensions prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for peanuts under 
     subsection (a).
       (d) Repayment Rate.--The Secretary shall permit peanut 
     producers on a farm to repay a marketing assistance loan for 
     peanuts under subsection (a) at a rate that is the lesser 
     of--
       (1) the loan rate established for peanuts under subsection 
     (b), plus interest (as determined by the Secretary); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing peanuts; and
       (D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (e) Loan Deficiency Payments.--
       (1) Availability.--The Secretary may make loan deficiency 
     payments available to the peanut producers on a farm that, 
     although eligible to obtain a marketing assistance loan for 
     peanuts under subsection (a), agree to forgo obtaining the 
     loan for the peanuts in return for payments under this 
     subsection.
       (2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       (A) the loan payment rate determined under paragraph (3) 
     for peanuts; by
       (B) the quantity of the peanuts produced by the peanut 
     producers on the farm, excluding any quantity for which the 
     producers on the farm obtain a loan under subsection (a).
       (3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate shall be the amount by which--

[[Page 26740]]

       (A) the loan rate established under subsection (b); exceeds
       (B) the rate at which a loan may be repaid under subsection 
     (d).
       (4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the peanut producers on a farm with 
     respect to a quantity of peanuts as of the earlier of--
       (A) the date on which the peanut producers on the farm 
     marketed or otherwise lost beneficial interest in the 
     peanuts, as determined by the Secretary; or
       (B) the date the peanut producers on the farm request the 
     payment.
       (f) Compliance With Conservation Requirements.--As a 
     condition of the receipt of a marketing assistance loan under 
     subsection (a), the peanut producers on a farm shall comply 
     during the term of the loan with--
       (1) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       (2) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       (g) Reimbursable Agreements and Payment of Expenses.--To 
     the extent practicable, the Secretary shall implement any 
     reimbursable agreements or provide for the payment of 
     expenses under this chapter in a manner that is consistent 
     with the implementation of the agreements or payment of the 
     expenses for other commodities.

     SEC. 168. QUALITY IMPROVEMENT.

       (a) Official Inspection.--
       (1) Mandatory inspection.--All edible peanuts shall be 
     officially inspected and graded by a Federal or State 
     inspector.

     SEC. 169. TERMINATION OF MARKETING QUOTAS FOR PEANUTS AND 
                   COMPENSATION TO PEANUT QUOTA HOLDERS.

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

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

       (ii) Seed or experimental purposes.--The Secretary shall 
     apply the definition of ``peanut quota holder'' without 
     regard to temporary leases, transfers, or quotas for seed or 
     experimental purposes.
       (B) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (2) Contracts.--The Secretary shall offer to enter into a 
     contract with peanut quota holders for the purpose of 
     providing compensation for the lost value of the quota as a 
     result of the repeal of the marketing quota program for 
     peanuts under the amendment made by subsection (a).
       (3) Payment period.--Under a contract, the Secretary shall 
     make payments to an eligible peanut quota holder for each of 
     fiscal years 2002 through 2005.
       (4) Time for payment.--The payments required under the 
     contracts shall be provided in 4 equal installments not later 
     than September 30 of each of fiscal years 2002 through 2005.
       (5) Payment amount.--The amount of the payment for a fiscal 
     year to a peanut quota holder under a contract shall be equal 
     to the product obtained by multiplying--
       (A) $0.1025 per pound; by
       (B) the actual farm poundage quota (excluding any quantity 
     of seed and experimental peanuts) established for the farm of 
     a peanut quota holder under section 358-1(b) of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) (as 
     in effect prior to the amendment made by subsection (a)) for 
     the 2001 marketing year.
       (6) Assignment of payments.--
       (A) In general.--The provisions of section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
     relating to assignment of payments, shall apply to the 
     payments made to peanut quota holders under the contracts.
       (B) Notice.--The peanut quota holder making the assignment, 
     or the assignee, shall provide the Secretary with notice, in 
     such manner as the Secretary may require, of any assignment 
     made under this subsection.
       (c) Conforming Amendments.--
       (1) Administrative provisions.--Section 361 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
     amended by striking ``peanuts,''.
       (2) Adjustment of quotas.--Section 371 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
       (A) in the first sentence of subsection (a), by striking 
     ``peanuts,''; and
       (B) in the first sentence of subsection (b), by striking 
     ``peanuts''.
       (3) Reports and records.--Section 373 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
       (A) in the first sentence of subsection (a)--
       (i) by striking ``peanuts,'' each place it appears;
       (ii) by inserting ``and'' after ``from producers,''; and
       (iii) by striking ``for producers, all'' and all that 
     follows through the period at the end of the sentence and 
     inserting ``for producers.''; and
       (B) in subsection (b), by striking ``peanuts,''.
       (4) Eminent domain.--Section 378(c) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1378(c)) is amended in the 
     first sentence--
       (A) by striking ``cotton,'' and inserting ``cotton and''; 
     and
       (B) by striking ``and peanuts,''.
       (d) Crops.--This section and the amendments made by this 
     section apply beginning with the 2002 crop of peanuts.

                       Subtitle D--Administration

     SEC. 171. ADMINISTRATION.

       (a) Use of Commodity Credit Corporation.--The Secretary 
     shall use the funds, facilities, and authorities of the 
     Commodity to carry out this title through the Commodity 
     Credit Corporation.
       (b) Determinations by Secretary.--A determination made by 
     the Secretary under this title shall be final and conclusive.
       (c) Regulations.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary and the Commodity 
     Credit Corporation, as appropriate, shall promulgate such 
     regulations as are necessary to implement this title.
       (2) Procedure.--The promulgation of the regulations shall 
     be made without regard to--
       (A) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (B) 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
       (C) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (3) Congressional review of agency rulemaking.--In carrying 
     out this subsection, the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.
       (d) Protection of Producers.--The protection afforded by 
     section 525 of Public Law 106-170 (7 U.S.C. 7212 note) to 
     producers on a farm that elect to accelerate the receipt of 
     any payment under a production flexibility contract payable 
     under subtitle B of title I of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.) 
     shall apply to the advance payment of fixed, decoupled 
     payments made under section 104 or 163 and counter-cyclical 
     payments made under section 164.

     SEC. 172. ADJUSTMENTS OF LOANS.

       (a) In General.--The Secretary may make appropriate 
     adjustments in the loan rates for any covered commodity for 
     differences in grade, type, quality, location, and other 
     factors.
       (b) Manner.--The adjustments under this section shall, to 
     the maximum extent practicable, be made in such manner that 
     the average loan level for the covered commodity will, on the 
     basis of the anticipated incidence of the factors described 
     in subsection (a), be equal to the loan rate provided under 
     this title.
       (c) Adjustment on County Basis.--
       (1) In general.--The Secretary may establish loan rates for 
     a crop of a covered commodity for producers on a farm in 
     individual counties in a manner that results in the lowest 
     such loan rate being 95 percent of the national average loan 
     rate, except that the action shall not result in an increase 
     in outlays.
       (2) National average loan rate.--Adjustments under this 
     subsection shall not result in an increase in the national 
     average loan rate for a covered commodity for any crop year.

     SEC. 173. COMMODITY CREDIT CORPORATION INTEREST RATE.

       (a) In General.--Notwithstanding any other provision of 
     law, the monthly Commodity Credit Corporation interest rate 
     applicable to loans provided for agricultural commodities by 
     the Corporation shall be 100 basis points greater than the 
     rate determined under the applicable interest rate formula in 
     effect on October 1, 1995.
       (b) Sugar.--For purposes of this section, raw cane sugar, 
     refined beet sugar, and in process sugar eligible for a loan 
     under section 156 shall not be considered an agricultural 
     commodity.

     SEC. 174. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

       (a) In General.--Except as provided in subsection (b), no 
     producer shall be personally liable for any deficiency 
     arising from the sale of the collateral securing any 
     nonrecourse loan made under this title unless the loan was 
     obtained through a fraudulent representation by the producer.

[[Page 26741]]

       (b) Limitations.--Subsection (a) shall not prevent the 
     Commodity Credit Corporation or the Secretary from requiring 
     a producer to assume liability for--
       (1) a deficiency in the grade, quality, or quantity of a 
     commodity stored on a farm or delivered by the producer;
       (2) a failure to properly care for and preserve a 
     commodity; or
       (3) a failure or refusal to deliver a commodity in 
     accordance with a program established under this title.
       (c) Acquisition of Collateral.--In the case of a 
     nonrecourse loan made under this title or the Commodity 
     Credit Corporation Charter Act (15 U.S.C. 714 et seq.), if 
     the Commodity Credit Corporation acquires title to the 
     unredeemed collateral, the Corporation shall be under no 
     obligation to pay for any market value that the collateral 
     may have in excess of the loan indebtedness.
       (d) Sugarcane and Sugar Beets.--A security interest 
     obtained by the Commodity Credit Corporation as a result of 
     the execution of a security agreement by the processor of 
     sugarcane or sugar beets shall be superior to all statutory 
     and common law liens on raw cane sugar and refined beet sugar 
     in favor of the producers of sugarcane and sugar beets and 
     all prior recorded and unrecorded liens on the crops of 
     sugarcane and sugar beets from which the sugar was derived.
       (e) Loan Forfeitures.--Notwithstanding sections 106 through 
     106B of the Agricultural Act of 1949 (7 U.S.C. 1445 through 
     1445-2)--
       (1) a producer-owned cooperative marketing association may 
     fully settle, without further cost to the Association, a loan 
     made for each of the 1994 and 1997 crops under sections 106 
     through 106B of that Act by forfeiting to the Commodity 
     Credit Corporation the agricultural commodity covered by the 
     loan regardless of the condition of the commodity;
       (2) any losses to the Commodity Credit Corporation as a 
     result of paragraph (1)--
       (A) shall not be charged to the Account (as defined in 
     section 106B(a) of that Act); and
       (B) shall not affect the amount of any assessment imposed 
     against the commodity under sections 106 through 106B of that 
     Act; and
       (3) the commodity forfeited pursuant to this section--
       (A) shall not be counted for the purposes of any 
     determination for any year pursuant to section 319 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1314e); and
       (B) may be disposed of in a manner determined by the 
     Secretary of Agriculture, except that the commodity may not 
     be sold for use in the United States for human consumption.
       (f) Definition.--Section 301(b)(14)(C) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1301(b)(14)(C)) is amended--
       (1) in clause (i), by striking ``100,000,000'' and 
     inserting ``75,000,000''; and
       (2) in clause (ii), by striking ``15 percent'' and 
     inserting ``10 percent''.

     SEC. 175. COMMODITY CREDIT CORPORATION SALES PRICE 
                   RESTRICTIONS.

       (a) General Sales Authority.--The Commodity Credit 
     Corporation may sell any commodity owned or controlled by the 
     Corporation at any price that the Secretary determines will 
     maximize returns to the Corporation.
       (b) Nonapplication of Sales Price Restrictions.--Subsection 
     (a) shall not apply to--
       (1) a sale for a new or byproduct use;
       (2) a sale of peanuts or oilseeds for the extraction of 
     oil;
       (3) a sale for seed or feed if the sale will not 
     substantially impair any loan program;
       (4) a sale of a commodity that has substantially 
     deteriorated in quality or as to which there is a danger of 
     loss or waste through deterioration or spoilage;
       (5) a sale for the purpose of establishing a claim arising 
     out of a contract or against a person who has committed 
     fraud, misrepresentation, or other wrongful act with respect 
     to the commodity;
       (6) a sale for export, as determined by the Corporation; 
     and
       (7) a sale for other than a primary use.
       (c) Presidential Disaster Areas.--
       (1) In general.--Notwithstanding subsection (a), on such 
     terms and conditions as the Secretary may consider in the 
     public interest, the Corporation may make available any 
     commodity or product owned or controlled by the Corporation 
     for use in relieving distress--
       (A) in any area in the United States (including the Virgin 
     Islands) declared by the President to be an acute distress 
     area because of unemployment or other economic cause, if the 
     President finds that the use will not displace or interfere 
     with normal marketing of agricultural commodities; and
       (B) in connection with any major disaster determined by the 
     President to warrant assistance by the Federal Government 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.).
       (2) Costs.--Except on a reimbursable basis, the Corporation 
     shall not bear any costs in connection with making a 
     commodity available under paragraph (1) beyond the cost of 
     the commodity to the Corporation incurred in--
       (A) the storage of the commodity; and
       (B) the handling and transportation costs in making 
     delivery of the commodity to designated agencies at 1 or more 
     central locations in each State or other area.
       (d) Efficient Operations.--Subsection (a) shall not apply 
     to the sale of a commodity the disposition of which is 
     desirable in the interest of the effective and efficient 
     conduct of the operations of the Corporation because of the 
     small quantity of the commodity involved, or because of the 
     age, location, or questionable continued storability of the 
     commodity.

     SEC. 176. COMMODITY CERTIFICATES.

       (a) In General.--In making in-kind payments under subtitle 
     C, the Commodity Credit Corporation may--
       (1) acquire and use commodities that have been pledged to 
     the Commodity Credit Corporation as collateral for loans made 
     by the Corporation;
       (2) use other commodities owned by the Commodity Credit 
     Corporation; and
       (3) redeem negotiable marketing certificates for cash under 
     terms and conditions established by the Secretary.
       (b) Methods of Payment.--The Commodity Credit Corporation 
     may make in-kind payments--
       (1) by delivery of the commodity at a warehouse or other 
     similar facility;
       (2) by the transfer of negotiable warehouse receipts;
       (3) by the issuance of negotiable certificates, which the 
     Commodity Credit Corporation shall exchange for a commodity 
     owned or controlled by the Corporation in accordance with 
     regulations promulgated by the Corporation; or
       (4) by such other methods as the Commodity Credit 
     Corporation determines appropriate to promote the efficient, 
     equitable, and expeditious receipt of the in-kind payments so 
     that a person receiving the payments receives the same total 
     return as if the payments had been made in cash.
       (c) Administration.--
       (1) Form.--At the option of a person, the Commodity Credit 
     Corporation shall make negotiable certificates authorized 
     under subsection (b)(3) available to the person, in the form 
     of program payments or by sale, in a manner that the 
     Corporation determines will encourage the orderly marketing 
     of commodities pledged as collateral for loans made by the 
     Commodity Credit Corporation.
       (2) Transfer.--A negotiable certificate issued in 
     accordance with this subsection may be transferred to another 
     person in accordance with regulations promulgated by the 
     Secretary.

     SEC. 177. ASSIGNMENT OF PAYMENTS.

       (a) In General.--The provisions of section 8(g) of the Soil 
     Conservation and Domestic Allotment Act (16 U.S.C. 590h(g)), 
     relating to assignment of payments, shall apply to payments 
     made under this title.
       (b) Notice.--The producers on a farm making the assignment, 
     or the assignee, shall provide the Secretary with notice, in 
     such manner as the Secretary may require, of any assignment 
     made under this section.

     SEC. 178. PAYMENT LIMITATIONS.

       (a) In General.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308) is amended--
       (1) in paragraph (1)--
       (A) by striking ``payments under production flexibility 
     contracts'' and inserting ``fixed, decoupled payments'';
       (B) by striking ``contract payments made under the 
     Agricultural Market Transition Act to a person under 1 or 
     more production flexibility contracts'' and inserting 
     ``fixed, decoupled payments made to a person''; and
       (C) by striking ``$40,000'' and inserting ``$80,000'';
       (2) in paragraphs (2) and (3)--
       (A) by striking ``payments specified'' and all that follows 
     through ``and oilseeds'' and inserting ``following payments 
     that a person shall be entitled to receive'';
       (B) by striking ``$75,000'' and inserting ``$75,000, with a 
     separate limitation for all covered commodities, for wool and 
     mohair, for honey, and for peanuts'';
       (C) by striking the period at the end of paragraph (2) and 
     all that follows through ``the following'' in paragraph (3);
       (D) by striking ``section 131'' and all that follows 
     through ``section 132'' and inserting ``section 121 of the 
     Agriculture, Conservation, and Rural Enhancement Act of 2001 
     for a crop of any covered commodity at a lower level than the 
     original loan rate established for the covered commodity 
     under section 122''; and
       (E) by striking ``section 135'' and inserting ``section 
     125''; and
       (3) by inserting after paragraph (2) the following:
       ``(3) Limitation on counter-cyclical payments.--The total 
     amount of counter-cyclical payments that a person may receive 
     during any crop year shall not exceed $75,000.''.
       (b) Definitions.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308) is amended by striking paragraph (4) and 
     inserting the following:
       ``(4) Definitions.--In this title:
       ``(A) Covered commodity; fixed, decoupled payment.--The 
     terms `covered commodity' and `fixed, decoupled payment' have 
     the meaning given those terms in section 100 of the 
     Agriculture, Conservation, and Rural Enhancement Act of 2001.

[[Page 26742]]

       ``(B) Counter-cyclical payment.--The term `counter-cyclical 
     payment' has the meaning given those terms in section 161 of 
     the Agriculture, Conservation, and Rural Enhancement Act of 
     2001.''.
       (c) Transition.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308), as in effect on the day before the date 
     of the enactment of this Act, shall continue to apply with 
     respect to fiscal year 2001 and the 2001 crop of any covered 
     commodity.

                  Subtitle E--Price Support Authority

     SEC. 181. SUSPENSION AND REPEAL OF PRICE SUPPORT AUTHORITY.

       (a) Agricultural Adjustment Act of 1938.--The following 
     provisions of the Agricultural Adjustment Act of 1938 shall 
     not be applicable to the 1996 through 2006 crops of loan 
     commodities, peanuts, and sugar and shall not be applicable 
     to milk during the period beginning on the date of enactment 
     of this title and ending on December 31, 2006:
       (1) Parts II through V of subtitle B of title III (7 U.S.C. 
     1326-1351).
       (2) Subsections (a) through (j) of section 358 (7 U.S.C. 
     1358).
       (3) Subsections (a) through (h) of section 358a (7 U.S.C. 
     1358a).
       (4) Subsections (a), (b), (d), and (e) of section 358d (7 
     U.S.C. 1359).
       (5) Part VII of subtitle B of title III (7 U.S.C. 1359aa-
     1359jj), but only with respect to sugar marketings through 
     fiscal year 2002.
       (6) In the case of peanuts, part I of subtitle C of title 
     III (7 U.S.C. 1361-1368).
       (7) In the case of upland cotton, section 377 (7 U.S.C. 
     1377).
       (8) Subtitle D of title III (7 U.S.C. 1379a-1379j).
       (9) Title IV (7 U.S.C. 1401-1407).
       (b) Agricultural Act of 1949.--
       (1) Suspensions.--The following provisions of the 
     Agricultural Act of 1949 shall not be applicable to the 1996 
     through 2006 crops of loan commodities, peanuts, and sugar 
     and shall not be applicable to milk during the period 
     beginning on the date of enactment of this title and ending 
     on December 31, 2006:
       (A) Section 101 (7 U.S.C. 1441).
       (B) Section 103(a) (7 U.S.C. 1444(a)).
       (C) Section 105 (7 U.S.C. 1444b).
       (D) Section 107 (7 U.S.C. 1445a).
       (E) Section 110 (7 U.S.C. 1445e).
       (F) Section 112 (7 U.S.C. 1445g).
       (G) Section 115 (7 U.S.C. 1445k).
       (H) Section 201 (7 U.S.C. 1446).
       (I) Title III (7 U.S.C. 1447-1449).
       (J) Title IV (7 U.S.C. 1421-1433d), other than sections 
     404, 412, and 416 (7 U.S.C. 1424, 1429, and 1431).
       (K) Title V (7 U.S.C. 1461-1469).
       (L) Title VI (7 U.S.C. 1471-1471j).
       (2) Conforming amendments.--The Agricultural Act of 1949 (7 
     U.S.C. 1441 et seq.) is amended--
       (A) in section 101(b) (7 U.S.C. 1441(b)), by striking ``and 
     peanuts''; and
       (B) in section 408(c) (7 U.S.C. 1428(c)), by striking 
     ``peanuts,''.
       (c) Suspension of Certain Quota Provisions.--The joint 
     resolution entitled ``A joint resolution relating to corn and 
     wheat marketing quotas under the Agricultural Adjustment Act 
     of 1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 
     and 1340), shall not be applicable to the crops of wheat 
     planted for harvest in the calendar years 1996 through 2006.
       (d) Agricultural Market Transition Act.--
       (1) In general.--The Agricultural Market Transition Act (7 
     U.S.C. 7201 et seq.) (other than sections 101, 192, and 196 
     of that Act (7 U.S.C. 7201, 7332, 7333) is repealed.


       (2) Conforming amendments.--
       (A) Crop insurance.--Section 508(b)(7)(A) of the Federal 
     Crop Insurance Act (7 U.S.C. 1508(b)(7)(A)) is amended by 
     striking ``Agricultural Market'' and inserting ``Agriculture, 
     Conservation, and Rural Enhancement Act of 2001''.
       (B) Flood risk reduction.--Section 385 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7334) is repealed.
       (C) Agricultural market transition act.--Section 101 of the 
     Agricultural Market Transition Act (7 U.S.C. 7201) is 
     amended--
       (i) in the section heading, by striking ``and purposes'';
       (ii) in subsection (a), by striking ``(a) Short Title.--''; 
     and
       (iii) by striking subsection (b).
       (D) Conservation farm option.--Section 1240M of the Food 
     Security Act of 1985 (16 U.S.C. 3839bb) is repealed.

             Subtitle F--Miscellaneous Commodity Provision

     SEC. 191. AGRICULTURAL PRODUCERS SUPPLEMENTAL PAYMENTS AND 
                   ASSISTANCE.

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

                         TITLE II--CONSERVATION

             Subtitle A--Working Land Conservation Programs

     SEC. 201. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

         ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

     ``SEC. 1240. PURPOSES.

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

     ``SEC. 1240A. DEFINITIONS.

       ``In this chapter:
       ``(1) Eligible land.--The term `eligible land' means 
     agricultural land (including cropland, rangeland, pasture, 
     private nonindustrial forest land, and other land on which 
     crops or livestock are produced), including agricultural land 
     that the Secretary determines poses a serious threat to soil, 
     water, air, or related resources by reason of the soil types, 
     terrain, climatic, soil, topographic, flood, or saline 
     characteristics, or other factors or natural hazards.
       ``(2) Land management practice.--The term `land management 
     practice' means a site-specific nutrient or manure 
     management, integrated pest management, irrigation 
     management, tillage or residue management, grazing 
     management, air quality management, or other land management 
     practice carried out on eligible land that the Secretary 
     determines is needed to protect, in the most cost-effective 
     manner, soil, water, air, or related resources from 
     degradation.
       ``(3) Livestock.--The term `livestock' means dairy cattle, 
     beef cattle, laying hens, broilers, turkeys, swine, sheep, 
     and such other animals as determined by the Secretary.
       ``(4) Maximize environmental benefits per dollar 
     expended.--
       ``(A) In general.--The term `maximize environmental 
     benefits per dollar expended' means to maximize environmental 
     benefits to the extent the Secretary determines is 
     practicable and appropriate, taking into account the amount 
     of funding made available to carry out this chapter.
       ``(B) Limitation.--The term `maximize environmental 
     benefits per dollar expended' does not require the 
     Secretary--
       ``(i) to provide the least cost practice or technical 
     assistance; or
       ``(ii) to require the development of a plan under section 
     1240E as part of an application for payments or technical 
     assistance.
       ``(5) Practice.--The term `practice' means 1 or more 
     structural practices, land management practices, and, as 
     determined by the Secretary, comprehensive nutrient 
     management planning practices.
       ``(6) Producer.--The term `producer' means a person that is 
     engaged in livestock or agricultural production, as 
     determined by the Secretary.
       ``(7) Structural practice.--The term `structural practice' 
     means--
       ``(A) the establishment on eligible land of a site-specific 
     animal waste management facility, terrace, grassed waterway, 
     contour grass strip, filterstrip, tailwater pit, permanent 
     wildlife habitat, constructed wetland, or other structural 
     practice that the Secretary determines is needed to protect, 
     in the most cost-effective manner, soil, water, air, or 
     related resources from degradation; and
       ``(B) the capping of abandoned wells on eligible land.

[[Page 26743]]



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

       ``(a) Establishment.--
       ``(1) In general.--During each of the 2002 through 2006 
     fiscal years, the Secretary shall provide technical 
     assistance, cost-share payments, and incentive payments to 
     producers, that enter into contracts with the Secretary, 
     through an environmental quality incentives program in 
     accordance with this chapter.
       ``(2) Eligible practices.--
       ``(A) Structural practices.--A producer that implements a 
     structural practice shall be eligible for any combination of 
     technical assistance, cost-share payments, and education.
       ``(B) Land management practices.--A producer that performs 
     a land management practice shall be eligible for any 
     combination of technical assistance, incentive payments, and 
     education.
       ``(C) Comprehensive nutrient management planning.--A 
     producer that develops a comprehensive nutrient management 
     plan shall be eligible for any combination of technical 
     assistance, incentive payments, and education.
       ``(3) Education.--The Secretary may provide conservation 
     education at national, State, and local levels consistent 
     with the purposes of the environmental quality incentives 
     program to--
       ``(A) any producer that is eligible for assistance under 
     this chapter; or
       ``(B) any producer that is engaged in the production of an 
     agricultural commodity.
       ``(b) Application and Term.--With respect to practices 
     implemented under this chapter--
       ``(1) a contract between a producer and the Secretary may--
       ``(A) apply to 1 or more structural practices, land 
     management practices, and comprehensive nutrient management 
     planning practices; and
       ``(B) have a term of not less than 3, nor more than 10, 
     years, as determined appropriate by the Secretary, depending 
     on the practice or practices that are the basis of the 
     contract; and
       ``(2) each farm may not adopt more than 1 structural 
     practice involving nutrient management during the period of 
     fiscal years 2002 through 2006.
       ``(c) Application and Evaluation.--
       ``(1) In general.--The Secretary shall establish an 
     application and evaluation process for awarding technical 
     assistance, cost-share payments, and incentive payments to a 
     producer in exchange for the performance of 1 or more 
     practices that maximizes environmental benefits per dollar 
     expended.
       ``(2) Comparable environmental value.--
       ``(A) In general.--The Secretary shall establish a process 
     for selecting applications for technical assistance, cost-
     share payments, and incentive payments when there are 
     numerous applications for assistance for practices that would 
     provide substantially the same level of environmental 
     benefits.
       ``(B) Criteria.--The process under subparagraph (A) shall 
     be based on--
       ``(i) a reasonable estimate of the projected cost of the 
     proposals described in the applications; and
       ``(ii) the priorities established under this subtitle and 
     other factors that maximize environmental benefits per dollar 
     expended.
       ``(3) Consent of owner.--If the producer making an offer to 
     implement a structural practice is a tenant of the land 
     involved in agricultural production, for the offer to be 
     acceptable, the producer shall obtain the consent of the 
     owner of the land with respect to the offer.
       ``(4) Bidding down.--If the Secretary determines that the 
     environmental values of 2 or more applications for technical 
     assistance, cost-share payments, or incentive payments are 
     comparable, the Secretary shall not assign a higher priority 
     to the application only because it would present the least 
     cost to the program established under this chapter.
       ``(d) Cost-Share Payments.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Federal share of cost-share payments to a producer proposing 
     to implement 1 or more practices shall be not more than 75 
     percent of the projected cost of the practice, as determined 
     by the Secretary.
       ``(2) Exceptions.--
       ``(A) Limited resource and beginning farmers; natural 
     disasters.--The Secretary may increase the maximum Federal 
     share under paragraph (1) to not more than 90 percent if the 
     producer is a limited resource farmer or a beginning farmer 
     or to address a natural disaster, as determined by the 
     Secretary.
       ``(B) Cost-share assistance from other sources.--Any cost-
     share payments received by a producer from a State or private 
     organization or person for the implementation of 1 or more 
     practices shall be in addition to the Federal share of cost-
     share payments provided to the producer under paragraph (1).
       ``(3) Other payments.--A producer shall not be eligible for 
     cost-share payments for practices on eligible land under this 
     chapter if the producer receives cost-share payments or other 
     benefits for the same practice on the same land under chapter 
     1 and this chapter.
       ``(e) Incentive Payments.--The Secretary shall make 
     incentive payments in an amount and at a rate determined by 
     the Secretary to be necessary to encourage a producer to 
     perform 1 or more practices.
       ``(f) Technical Assistance.--
       ``(1) In general.--The Secretary shall allocate funding 
     under this chapter for the provision of technical assistance 
     according to the purpose and projected cost for which the 
     technical assistance is provided for a fiscal year.
       ``(2) Amount.--The allocated amount may vary according to--
       ``(A) the type of expertise required;
       ``(B) the quantity of time involved; and
       ``(C) other factors as determined appropriate by the 
     Secretary.
       ``(3) Limitation.--Funding for technical assistance under 
     this chapter shall not exceed the projected cost to the 
     Secretary of the technical assistance provided for a fiscal 
     year.
       ``(4) Other authorities.--The receipt of technical 
     assistance under this chapter shall not affect the 
     eligibility of the producer to receive technical assistance 
     under other authorities of law available to the Secretary.
       ``(5) Non-federal assistance.--
       ``(A) In general.--The Secretary may request the services 
     of, and enter into a cooperative agreement with, a State 
     water quality agency, State fish and wildlife agency, State 
     forestry agency, or any other governmental or nongovernmental 
     organization or person considered appropriate to assist in 
     providing the technical assistance necessary to develop and 
     implement conservation plans under the program.
       ``(B) Private sources.--
       ``(i) In general.--The Secretary shall ensure that the 
     processes of writing and developing proposals and plans for 
     contracts under this chapter, and of assisting in the 
     implementation of practices covered by the contracts, are 
     open to qualified private persons, including--

       ``(I) agricultural producers;
       ``(II) representatives from agricultural cooperatives;
       ``(III) agricultural input retail dealers;
       ``(IV) certified crop advisers;
       ``(V) persons providing technical consulting services; and
       ``(VI) other persons, as determined appropriate by the 
     Secretary.

       ``(ii) Other conservation programs.--The requirements of 
     this subparagraph shall also apply to each other conservation 
     program of the Department of Agriculture.
       ``(6) Incentive payments for technical assistance.--
       ``(A) In general.--A producer that is eligible to receive 
     technical assistance for a practice involving the development 
     of a comprehensive nutrient management plan may obtain an 
     incentive payment that can be used to obtain technical 
     assistance from a private source associated with the 
     development of any component of the comprehensive nutrient 
     management plan.
       ``(B) Purpose.--The purpose of the payment shall be to 
     provide a producer the option of obtaining technical 
     assistance for developing any component of a comprehensive 
     nutrient management plan from a private person.
       ``(C) Payment.--The incentive payment shall be--
       ``(i) in addition to cost-share or incentive payments that 
     a producer would otherwise receive for structural practices 
     and land management practices;
       ``(ii) used only to procure technical assistance from a 
     private source that is necessary to develop any component of 
     a comprehensive nutrient management plan; and
       ``(iii) in an amount determined appropriate by the 
     Secretary, taking into account--

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

       ``(D) Eligible practices.--The Secretary may determine, on 
     a case by case basis, whether the development of a 
     comprehensive nutrient management plan is eligible for an 
     incentive payment under this paragraph.
       ``(E) Advance payment.--On the determination of the 
     Secretary that the proposed comprehensive nutrient management 
     of a producer is eligible for an incentive payment, the 
     producer may receive a partial advance of the incentive 
     payment in order to procure the services of a certified 
     private provider.
       ``(F) Final payment.--The final installment of the 
     incentive payment shall be payable to a producer on 
     presentation to the Secretary of documentation that is 
     satisfactory to the Secretary and that demonstrates--
       ``(i) completion of the technical assistance; and
       ``(ii) the actual cost of the technical assistance.
       ``(g) Partnerships and Cooperation.--
       ``(1) Purposes.--The Secretary may designate special 
     projects, as recommended by the State Conservationist, with 
     advice from the State technical committee, to enhance 
     technical and financial assistance provided to several 
     producers within a specific area to address environmental 
     issues affected by agricultural production with respect to--

[[Page 26744]]

       ``(A) meeting the purposes and requirements of--
       ``(i) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.) or comparable State laws in impaired or 
     threatened watersheds;
       ``(ii) the Safe Drinking Water Act (42 U.S.C. 300f et seq.) 
     or comparable State laws in watersheds providing water for 
     drinking water supplies; or
       ``(iii) the Clean Air Act (42 U.S.C. 7401 et seq.) or 
     comparable State laws; or
       ``(B) watersheds of special significance or other 
     geographic areas of environmental sensitivity; or
       ``(C) enhancing the technical capacity of producers to 
     facilitate community-based planning, implementation of 
     special projects, and conservation education involving 
     multiple producers within an area.
       ``(2) Incentives.--To realize the objectives of the special 
     projects under paragraph (1), the Secretary shall provide 
     incentives to producers participating in the special projects 
     to encourage partnerships and sharing of technical and 
     financial resources among producers and among producers and 
     governmental organizations.
       ``(3) Funding.--
       ``(A) In general.--The Secretary shall make available 5 
     percent of funds provided for each fiscal year under this 
     chapter to carry out this subsection.
       ``(B) Special projects.--The purposes of the special 
     projects under this subsection shall be to encourage--
       ``(i) producers to cooperate in the installation and 
     maintenance of conservation systems that affect multiple 
     agricultural operations;
       ``(ii) sharing of information and technical and financial 
     resources; and
       ``(iii) cumulative environmental benefits across operations 
     of producers.
       ``(4) Flexibility.--
       ``(A) In general.--The Secretary may enter into agreements 
     with States, local governmental and nongovernmental 
     organizations, and persons to allow greater flexibility to 
     adjust the application of eligibility criteria, approved 
     practices, innovative conservation practices, and other 
     elements of the programs described in subparagraph (B) to 
     better reflect unique local circumstances and goals in a 
     manner that is consistent with the purposes of this chapter.
       ``(B) Applicable programs.--Subparagraph (A) shall apply 
     to--
       ``(i) the environmental quality incentives program 
     established by this chapter;
       ``(ii) the program to establish conservation buffers 
     described in a notice issued on March 24, 1998 (63 FR 14109) 
     or a successor program;
       ``(iii) the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 FR 28965) or 
     a successor program; and
       ``(iv) the wetlands reserve program established under 
     subchapter C of chapter 1.
       ``(5) Unused funding.--Any funds made available for a 
     fiscal year under this subsection that are not obligated by 
     June 1 of the fiscal year may be used to carry out other 
     activities under this chapter during the fiscal year in which 
     the funding becomes available.
       ``(h) Modification or Termination of Contracts.--
       ``(1) Voluntary modification or termination.--The Secretary 
     may modify or terminate a contract entered into with a 
     producer under this chapter if--
       ``(A) the producer agrees to the modification or 
     termination; and
       ``(B) the Secretary determines that the modification or 
     termination is in the public interest.
       ``(2) Involuntary termination.--The Secretary may terminate 
     a contract under this chapter if the Secretary determines 
     that the producer violated the contract.

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

       ``In evaluating applications for technical assistance, 
     cost-share payments, and incentive payments, the Secretary 
     shall accord a higher priority to assistance and payments 
     that--
       ``(1) maximize environmental benefits per dollar expended; 
     and
       ``(2)(A) address national conservation priorities 
     involving--
       ``(i) water quality, particularly in impaired watersheds;
       ``(ii) soil erosion;
       ``(iii) air quality; or
       ``(iv) assist producers in complying with--
       ``(I) this title;
       ``(II) the Federal Water Pollution Control Act (33 U.S.C. 
     1251 et seq.);
       ``(III) the Safe Drinking Water Act (42 U.S.C. 300f et 
     seq.);
       ``(IV) the Clean Air Act (42 U.S.C. 7401 et seq.); and
       ``(V) other Federal, State, and local environmental laws 
     (including regulations);
       ``(B) are provided in conservation priority areas 
     established under section 1230(c); or
       ``(C) are provided in special projects under section 
     1240B(g) with respect to which State or local governments 
     have provided, or will provide, financial or technical 
     assistance to producers for the same conservation or 
     environmental purposes.

     ``SEC. 1240D. DUTIES OF PRODUCERS.

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

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

       ``(a) In General.--To be eligible to receive technical 
     assistance, cost-share payments, or incentive payments under 
     the environmental quality incentives program, an owner or 
     producer of a livestock or agricultural operation must submit 
     to the Secretary for approval a plan of operations that 
     incorporates practices covered under this chapter, and is 
     based on such principles, as the Secretary considers 
     necessary to carry out the program, including a description 
     of the practices to be implemented and the objectives to be 
     met by the implementation of the plan.
       ``(b) Avoidance of Duplication.--The Secretary shall, to 
     the maximum extent practicable, eliminate duplication of 
     planning activities under the environmental quality 
     incentives program and comparable conservation programs.

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

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

     ``SEC. 1240G. LIMITATION ON PAYMENTS.

       ``(a) In General.--Subject to subsection (b), the total 
     amount of cost-share and incentive payments paid to a 
     producer under this chapter may not exceed--
       ``(1) $50,000 for any fiscal year; or
       ``(2) $150,000 for any multiyear contract.
       ``(b) Attribution.--An individual or entity may not 
     receive, directly or indirectly, payments under this chapter 
     that exceed $50,000 for any fiscal year.
       ``(c) Verification.--The Secretary shall identify 
     individuals and entities that are eligible for a payment 
     under this chapter using social security numbers and taxpayer 
     identification numbers, respectively.

     ``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

       ``(a) In General.--From funds made available to carry out 
     this chapter, the Secretary shall use $100,000,000 for each 
     fiscal year to pay the Federal share of competitive grants 
     that are intended to stimulate innovative approaches to 
     leveraging Federal investment in environmental enhancement 
     and protection, in conjunction with agricultural production, 
     through the environmental quality incentives program.
       ``(b) Use.--The Secretary shall award grants under this 
     section to governmental organizations, State agencies, and 
     other persons, on a competitive basis, to carry out projects 
     that--
       ``(1) involve producers that are eligible for payments or 
     technical assistance under this chapter;
       ``(2) implement innovative projects, such as--
       ``(A) market systems for pollution reduction; and
       ``(B) provision of funds to promote adoption of best 
     management practices and the storing of carbon in the soil; 
     and
       ``(3) leverage funds made available to carry out this 
     chapter with matching funds provided by State and local 
     governments and private organizations to promote 
     environmental enhancement and protection in conjunction with 
     agricultural production.
       ``(c) Federal Share.--The Federal share of a grant made to 
     carry out a project under this section shall not exceed 50 
     percent of the cost of the project.

[[Page 26745]]

       ``(d) Unused Funding.--Any funds made available for a 
     fiscal year under this section that are not obligated by June 
     1 of the fiscal year may be used to carry out other 
     activities under this chapter during the fiscal year in which 
     the funding becomes available.

     ``SEC. 1240I. WORKING LAND ENVIRONMENTAL IMPROVEMENT OPTION.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to provide incentives to producers on agricultural 
     working land to attain increased environmental benefits by 
     implementing a systems approach to the conservation needs on 
     the farm or ranch of the producer;
       ``(2) to target conservation systems instead of individual 
     conservation practices;
       ``(3) to emphasize more comprehensive, multiyear agreements 
     that enable a more integrated natural resource plan for the 
     farm or ranch of the producer; and
       ``(4) to emphasize conservation systems that are based on 
     land management instead of structural practices or land 
     retirement.
       ``(b) Definition of Conservation System.--In this section, 
     the term `conservation system' means a set of multiple 
     conservation practices that--
       ``(1) address 1 or more natural resources on a farm or 
     ranch of a producer;
       ``(2) requires planning, implementation, management, and 
     maintenance;
       ``(3) promotes 1 or more conservation purposes identified 
     in the plan developed and approved by the Secretary under 
     section 1240D;
       ``(4)(A) has not been implemented on the applicable 
     agricultural land of the producer before receipt of a payment 
     under this section; or
       ``(B) significantly enhances the existing conservation 
     system; and
       ``(5) involves--
       ``(A) a basic conservation activity, such as pest 
     management, contour farming, residue management, nutrient 
     management, or similar activities, as determined by the 
     Secretary;
       ``(B) a land use adjustment or protection activity, such as 
     resource-conserving crop rotation, controlled, rotational 
     grazing, or similar activities, as determined by the 
     Secretary; or
       ``(C) an activity that fosters the long-term sustainability 
     of all natural resources on the agricultural operation, as 
     determined by the Secretary.
       ``(c) Establishment.--
       ``(1) In general.--The Secretary shall establish a program 
     that is designed to--
       ``(A) function as part of the environmental quality 
     incentives program under this chapter; and
       ``(B) provide an option for producers to receive a bonus 
     payment for engaging in new and more environmentally 
     beneficial conservation practices on agricultural working 
     land.
       ``(2) Contract.--
       ``(A) In general.--In exchange for a producer entering into 
     a working land environmental improvement option contract, the 
     Secretary shall provide an annual bonus payment, in an amount 
     determined by the Secretary, to the producer in accordance 
     with the contract.
       ``(B) Relation to equip.--A contract under this section may 
     be a component of, or separate from, a contract under section 
     1240B.
       ``(C) Term.--A contract entered into under this section 
     shall have a term of not less than 3, nor more than 10, 
     years.
       ``(D) Linkage.--The Secretary shall not require that any 
     producer enter into a contract under any other program under 
     this chapter to be eligible to receive a bonus payment under 
     a contract entered into under this section.
       ``(3) Conservation system plan.--
       ``(A) In general.--A conservation system plan developed 
     under this section that incorporates an integrated approach 
     to conservation of natural resources on the farm or ranch of 
     a producer may be included in a plan developed under section 
     1240D, under which conservation goals are achieved through 
     individual practices.
       ``(B) Eligible systems.--A conservation system that is 
     eligible for a bonus payment under this section may be 
     associated with a land management practice, structural 
     practice, or comprehensive nutrient management practice that 
     has been otherwise approved by the Secretary under this 
     chapter.
       ``(4) Identification of conservation systems.--The State 
     Conservationist and State Technical Committee for each State 
     shall identify conservation activities that, in combination--
       ``(A) address the geographical, agronomic, and 
     environmental conditions that are unique to the State or 
     area; and
       ``(B) qualify as conservation systems under this section.
       ``(5) Bonus payments.--A producer that implements a 
     conservation system shall be eligible to receive an annual 
     bonus payment that is in addition to any incentive payment, 
     cost share payment, or technical assistance available to the 
     producer under this chapter.
       ``(d) Evaluation of Contract Offers.--
       ``(1) Evaluation factors.--In order to maximize 
     environmental benefits per dollar expended under this 
     section, the Secretary shall establish a list of multiple 
     evaluation factors that are to be used to evaluate and rank 
     the conservation systems proposed by producers.
       ``(2) Required priority factors.--The Secretary shall give 
     priority to offers that--
       ``(A) demonstrate the prior use of a conservation activity, 
     such as conservation tillage;
       ``(B) address multiple natural resource conservation goals;
       ``(C) implement more comprehensive conservation systems; or
       ``(D) are submitted by a limited resource farmer, beginning 
     farmer, or Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)), as determined by the Secretary.
       ``(3) Discretionary factors.--Additional evaluation factors 
     may include--
       ``(A) the number of farms and ranches within the soil and 
     water conservation district in which the agricultural 
     operation of the producer is located;
       ``(B) with respect to the agricultural operation of the 
     producer--
       ``(i) soil erosion;
       ``(ii) the potential for pesticide and nutrient leaching;
       ``(iii) animal waste generation; and
       ``(iv) wetland; and
       ``(C) other factors, as determined by the Secretary.
       ``(4) Points.--Each evaluation factor shall be accorded a 
     point value as determined by the Secretary.
       ``(5) Offers.--Each offer of a producer to enter into a 
     contract under this section shall be ranked by the Secretary 
     according to the number of points assigned the conservation 
     system proposed in the offer.
       ``(e) Procedure for Ranking and Selecting Offers.--
       ``(1) Local environmental problems and priorities.--Each 
     soil and water conservation district, or local working group, 
     as designated by the Secretary, shall--
       ``(A) identify the environmental problems that exist within 
     the district; and
       ``(B) determine which conservation systems and practices 
     would best ameliorate the environmental problems of the 
     district; and
       ``(C) make recommendations to the State conservationist and 
     State technical committee of the respective State concerning 
     the issues described in subparagraphs (A) and (B).
       ``(2) State conservationist.--The State conservationist for 
     each State, in consultation with the State technical 
     committee, shall--
       ``(A) summarize the information and recommendations 
     provided by each soil and water conservation district of the 
     State; and
       ``(B) transmit the information and recommendations to the 
     Secretary (including a detailed description of intended 
     priorities for funding within the State).
       ``(3) State funding allocations.--
       ``(A) In general.--The Secretary may use the information 
     and recommendations supplied by each State Conservationist, 
     including natural resource inventories, statistical studies, 
     and reports, to determine funding allocations under this 
     section for each State.
       ``(B) Elements of allocation determinations.--A funding 
     allocation shall be determined on the basis of--
       ``(i) the evaluation factors described in subsection (d); 
     and
       ``(ii) the information and recommendations summarized by 
     State conservationists under paragraph (2)(A).
       ``(C) Notification.--The State conservationist for each 
     State shall be notified of the funding allocation for the 
     State.
       ``(4) Ranking, selection of offers, and award of bonus 
     payments.--
       ``(A) Ranking offers.--The State conservationist of the 
     appropriate State, in consultation with the State technical 
     committee and the soil and water conservation district in 
     which the agricultural operation of a producer is located, 
     shall rank each offer according to--
       ``(i) the criteria established by the Secretary; and
       ``(ii) the number of points awarded to the offer.
       ``(B) Acceptance of offers.--Based on the ranking of each 
     offer of a producer by the State and the availability of 
     funds for the State, the State conservationist may accept 
     offers of producers that will receive bonus payments.
       ``(C) Determination of bonus payments.--The State 
     conservationist, in consultation with the State technical 
     committee, and in consultation with the soil and water 
     conservation district in which the agricultural operation of 
     a producer is located, shall determine the amount of the 
     bonus payment applicable to the conservation system that the 
     producer offers to implement.
       ``(D) Determination of amount of bonus payments.--The 
     amount of an annual bonus payment, to the extent practicable, 
     shall be determined by the State conservationist, in 
     consultation with the State technical committee and the soil 
     and water conservation district in which the agricultural 
     operation of the producer is located, using criteria 
     established under the guidelines described in subparagraph 
     (E).
       ``(E) Guidelines.--The criteria used to determine the 
     amount of a bonus payment may be--

[[Page 26746]]

       ``(i) as objective and transparent as practicable; and
       ``(ii) based on--

       ``(I) to the maximum extent practicable, outcome-based 
     factors relating to the natural resource and environmental 
     benefits that result from the adoption, maintenance, and 
     improvement in implementation of the conservation practice 
     carried out by the producer;
       ``(II) system-based factors, including--

       ``(aa) the level and extent of conservation systems to be 
     established or maintained;
       ``(bb) the cost of the adoption, maintenance, and 
     improvement in implementation of the conservation system;
       ``(cc) the income loss that would be experienced, or 
     economic value that would be forgone, by the producer because 
     of land use adjustments resulting from the adoption, 
     maintenance, and improvement of the conservation system; and
       ``(dd) the extent to which compensation would ensure 
     maintenance and improvement of the conservation system; and

       ``(III) such other factors as the Secretary determines to 
     be appropriate to encourage participation under this section.

       ``(f) Limitation on Assistance.--The total amount of bonus 
     payments a producer may receive under this section shall not 
     exceed $25,000 for any fiscal year.
       ``(g) Funding.--Of the funds made available to carry out 
     this chapter, the Secretary shall use to carry out this 
     section--
       ``(1) $100,000,000 for fiscal year 2002;
       ``(2) $150,000,000 for fiscal year 2003; and
       ``(3) $200,000,000 for each of fiscal years 2004 and 2005; 
     and
       ``(4) $300,000,000 for fiscal year 2006.''.
       (b) Funding.--Section 1241(b) of the Food Security Act of 
     1985 (16 U.S.C. 3841(b)) is amended--
       (1) in paragraph (1), by striking ``$130,000,000'' and all 
     that follows through ``2002,'' and inserting ``$750,000,000 
     for fiscal year 2002, $1,000,000,000 for fiscal year 2003, 
     $1,350,000,000 for fiscal year 2004, $1,450,000,000 for 
     fiscal year 2005, and $1,650,000,000 for fiscal year 2006''; 
     and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Obligation of funds.--
       ``(A) In general.--If a contract under the environmental 
     quality incentives program under chapter 4 of subtitle D is 
     terminated prior to the end of the term of the contract and 
     funds obligated for the contract are remaining, the remaining 
     funds may be used to carry out any other contract under the 
     program during the same fiscal year in which the original 
     contract was terminated.
       ``(B) Additional uses of funds.--Funding for contracts that 
     terminate under the program administered under subchapter B 
     of chapter 1 may be transferred to, and used to carry out, 
     the program under chapter 4 of subtitle D.''.
       (c) Cooperation With Other Government Agencies.--Section 11 
     of the Commodity Credit Corporation Charter Act (15 U.S.C. 
     714i) is amended in the last sentence by inserting ``but 
     excluding transfers and allotments for conservation technical 
     assistance'' after ``activities''.

     SEC. 202. CONSERVATION RESERVE PROGRAM.

       (a) Extension of Program.--
       (1) In general.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended--
       (A) in subsections (a) and (b)(3), by striking ``2002'' 
     each place it appears and inserting ``2006'';
       (B) in subsection (d)--
       (i) by striking ``2002'' and inserting ``2006''; and
       (ii) by striking ``36,400,000'' and inserting 
     ``40,000,000''; and
       (C) in subsection (h)(1), by striking ``the 2001 and 2002'' 
     and inserting ``each of the 2001 through 2006''.
       (2) Duties of owners and operators.--Section 1232(c) of the 
     Food Security Act of 1985 (16 U.S.C. 3832(c)) is amended by 
     striking ``2002'' and inserting ``2006''.
       (b) Conservation Buffers and Conservation Reserve 
     Enhancement Program.--Section 1231(b) of the Food Security 
     Act of 1985 (16 U.S.C. 3831(b)) is amended--
       (1) in paragraph (4)(D), by striking the period at the end 
     and inserting ``; or''; and
       (2) by adding at the end the following:
       ``(5) land that the Secretary determines is--
       ``(A) part of a field; and
       ``(B) no longer feasible to farm as a result of the 
     remainder of the field having been enrolled--
       ``(i) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 FR 
     14109) or a successor program; or
       ``(ii) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 FR 28965) or 
     a successor program.''.
       (c) Duration of Contracts; Hardwood Trees.--Section 1231(e) 
     of the Food Security Act of 1985 (16 U.S.C. 3831(e)) is 
     amended--
       (1) in paragraph (1), by striking ``shall enter into 
     contracts of not less than 10, nor more than 15, years.'' and 
     inserting the following: ``may enter into contracts--
       ``(A) for land enrolled in the conservation reserve program 
     that is not covered by a hardwood tree contract, covering not 
     to exceed 3,000,000 acres, for 30 or more years; and
       ``(B) covering any remaining acreage, with terms of not 
     less than 10, nor more than 15, years.''; and
       (2) in paragraph (2)--
       (A) by striking ``In the'' and inserting the following:
       ``(A) In general.--In the'';
       (B) by striking ``The Secretary'' and inserting the 
     following:
       ``(B) Existing hardwood tree contracts.--The Secretary''; 
     and
       (C) by adding at the end the following:
       ``(C) Extension of hardwood tree contracts.--
       ``(i) In general.--In the case of land devoted to hardwood 
     trees under a contract entered into under this subchapter 
     before the date of enactment of this subparagraph, the 
     Secretary may extend the contract for a term of not more than 
     15 years.
       ``(ii) Base payments.--The amount of a base payment for a 
     contract extended under clause (i)--

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

       (d) Expansion of Pilot Program to all States.--Section 
     1231(h) of the Food Security Act of 1985 (16 U.S.C. 3831(h)) 
     is amended--
       (1) in paragraph (1), by striking ``and 2002'' and all that 
     follows through ``South Dakota'' and inserting ``through 2006 
     calendar years, the Secretary shall carry out a program in 
     each State'';
       (2) in paragraph (3)(C), by striking ``--'' and all that 
     follows and inserting ``not more than 150,000 acres in any 1 
     State.''; and
       (3) by striking paragraph (2) and redesignating paragraphs 
     (3) through (5) as paragraphs (2) through (4), respectively.
       (e) Haying and Grazing on Buffer Strips.--Section 
     1232(a)(7) of the Food Security Act of 1985 (16 U.S.C. 
     3832(a)(7)) is amended--
       (1) by striking ``except that the Secretary--'' and 
     inserting ``except that--'';
       (2) in subparagraph (A)--
       (A) by striking ``(A) may'' and inserting ``(A) the 
     Secretary may'';
       (B) in clause (i), by inserting ``subject to approval by 
     the appropriate State committee established under section 
     8(b) of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(b)),'' before ``harvesting or grazing''; and
       (C) by striking ``and'' at the end;
       (3) in subparagraph (B)--
       (A) by striking ``(B) shall'' and inserting ``(B) the 
     Secretary shall''; and
       (B) by striking the period at the end and inserting a 
     semicolon;
       (4) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (5) by adding at the end the following:
       ``(D) for maintenance purposes, the Secretary shall--
       ``(i) permit harvesting or grazing or other commercial uses 
     of forage, in a manner that is consistent with the purposes 
     of this subchapter and a conservation plan approved by the 
     Secretary, on acres enrolled--

       ``(I) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 FR 
     14109) or a successor program; and
       ``(II) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 FR 28965) or 
     a successor program; and

       ``(ii) notwithstanding the amount of a rental payment 
     limited by section 1234(c)(2) and specified in a contract 
     entered into under this chapter, reduce the amount of the 
     rental payment paid to a producer of land the forage of which 
     is used for commercial purposes under clause (i) by an amount 
     determined by the Secretary to be commensurate with the value 
     of the reduction of benefit gained by enrollment of the land 
     under clause (i).''.
       (f) Cost Share for Hardwood Trees.--Section 1234(b)(3) of 
     the Food Security Act of 1985 (16 U.S.C. 3834(b)(3)) is 
     amended by striking ``4-year'' and inserting ``5-year''.
       (g) Base History.--Section 1236 of the Food Security Act of 
     1985 (16 U.S.C. 3836) is amended by striking subsection (d) 
     and inserting the following:
       ``(d) Reduction or Termination of Cropland.--
       ``(1) In general.--In addition to any other remedy 
     available under any other law, the Secretary may reduce or 
     terminate the quantity of cropland base and allotment history 
     preserved under subsection (c) for acreage with respect to 
     which a violation of a term or condition of a contract 
     covering that acreage occurs.
       ``(2) Required termination.--The Secretary shall terminate 
     the cropland base and allotment history for all cropland--
       ``(A) enrolled under this subchapter; and
       ``(B) used for--
       ``(i) the planting of hardwood trees under section 
     1231(e)(2);
       ``(ii) the pilot program under section 1231(h); or
       ``(iii) enrollment--

       ``(I) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 FR 
     14109) or a successor program; or

[[Page 26747]]

       ``(II) in the program described in a notice issued on May 
     27, 1998 (63 FR 28965) or a successor program.''.

       (h) Funding.--Section 1241(a) of the Food Security Act of 
     1985 (16 U.S.C. 3841(a)) is amended--
       (1) by striking ``1996 through 2002'' and inserting ``2002 
     through 2006'';
       (2) by inserting ``(including the provision of technical 
     assistance)'' before ``authorized by''; and
       (3) in paragraph (2), by striking ``subchapter C'' and 
     inserting ``subchapters C and D''.
       (i) Study on Economic Effects.--Not later than 180 days 
     after the date of enactment of this Act, the Secretary of 
     Agriculture shall submit to the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report that describes 
     the economic effects on rural communities resulting from the 
     conservation reserve program established under subchapter B 
     of chapter 1 of subtitle D of title XII of the Food Security 
     Act of 1985 (16 U.S.C. 3831 et seq.).

     SEC. 203. WETLANDS RESERVE PROGRAM.

       (a) Technical Assistance.--Section 1237(a) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(a)) is amended by 
     inserting ``(including the provision of technical 
     assistance)'' before the period at the end.
       (b) Maximum Enrollment.--Section 1237(b) of the Food 
     Security Act of 1985 (16 U.S.C. 3837(b)) is amended by 
     striking paragraph (1) and inserting the following:
       ``(1) Maximum enrollment.--The total number of acres 
     enrolled in the wetlands reserve program shall not exceed 
     2,225,000 acres, of which not more than 250,000 acres may be 
     enrolled in any calendar year.''.
       (c) Reauthorization.--Section 1237(c) of the Food Security 
     Act of 1985 (16 U.S.C. 3837(c)) is amended by striking 
     ``2002'' and inserting ``2006''.
       (d) Monitoring and Maintenance.--Section 1237C(a)(2) of the 
     Food Security Act of 1985 (16 U.S.C. 3837c(a)(2)) is amended 
     by striking ``assistance'' and inserting ``assistance 
     (including monitoring and maintenance)''.

     SEC. 204. FARMLAND PROTECTION PROGRAM.

       (a) Removal of Acreage Limitation; Expansion of Purposes.--
     Subsection (a) of section 388 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is 
     amended--
       (1) by striking ``not less than 170,000, nor more than 
     340,000 acres of''; and
       (2) by inserting ``(including ranchland), or agricultural 
     land that contains historic or archaeological resources,'' 
     after ``other productive soil''.
       (b) Eligible Entities.--Such section is further amended--
       (1) in subsection (a), by striking ``a State or local 
     government'' and inserting ``an eligible entity''; and
       (2) by adding at the end the following:
       ``(d) Definition of Eligible Entity.--In this section, the 
     term `eligible entity' means--
       ``(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, one 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.
       ``(e) Conservation Plan.--Any highly erodible cropland for 
     which a conservation easement or other interest is purchased 
     under this subchapter shall be subject to the requirements of 
     a conservation plan that requires, at the option of the 
     Secretary, the conservion of the cropland to less intensive 
     uses.
       ``(f) Funding.--
       ``(1) In general.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available to provide 
     technical assistance and purchase conservation easements 
     under this section--
       ``(A) $65,000,000 for fiscal year 2002;
       ``(B) $90,000,000 for each of fiscal years 2003 through 
     2005; and
       ``(C) $100,000,000 for fiscal year 2006.
       ``(2) Cost sharing.--
       ``(A) Federal share.--The Federal share of the cost of 
     purchasing a conservation easement or other interest 
     described in subsection (b) shall not exceed 50 percent.
       ``(B) Non-federal share.--The non-Federal share of the cost 
     of any project relating to the purchase of a conservation 
     easement under this section may be made in the form of 
     donations from any non-Federal source (including donations of 
     conservation easements in a project area) that materially 
     advance the goals of the project, as determined by the 
     Secretary.''.

     SEC. 205. WILDLIFE HABITAT INCENTIVE PROGRAM.

       Section 387 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (16 U.S.C. 3836a) is amended by striking 
     subsection (c) and inserting the following:
       ``(c) Funding.--Of the funds made available to carry out 
     subchapter B of chapter 1 of subtitle D of title XII of the 
     Food Security Act of 1985 (16 U.S.C. 3831 et seq.), the 
     Secretary of Agriculture shall use to carry out this 
     section--
       ``(1) $50,000,000 for fiscal year 2002;
       ``(2) $60,000,000 for fiscal year 2003;
       ``(3) $65,000,000 for fiscal year 2004;
       ``(4) $75,000,000 for fiscal year 2005; and
       ``(5) $100,000,000 for fiscal year 2006.''.

     SEC. 206. GRASSLAND RESERVE PROGRAM.

       Chapter 1 of subtitle D of title XII of the Food Security 
     Act of 1985 (16 U.S.C. 3830 et seq.) is amended by adding at 
     the end the following:

               ``Subchapter D--Grassland Reserve Program

     ``SEC. 1238. GRASSLAND RESERVE PROGRAM.

       ``(a) Establishment.--The Secretary, acting through the 
     Natural Resource Conservation Service, shall establish a 
     grassland reserve program (referred to in this subchapter as 
     `the program') to assist owners in restoring and protecting 
     eligible land described in subsection (c).
       ``(b) Enrollment Conditions.--
       ``(1) In general.--The Secretary shall enroll in the 
     program, from willing owners, not less than--
       ``(A) 100 contiguous acres of land west of the 90th 
     meridian; or
       ``(B) 50 contiguous acres of land east of the 90th 
     meridian.
       ``(2) Maximum enrollment.--The total number of acres 
     enrolled in the program shall not exceed 2,000,000 acres.
       ``(3) Methods of enrollment.--The Secretary shall enroll 
     land in the program through--
       ``(A) permanent easements or 30-year easements;
       ``(B) in a State that imposes a maximum duration for such 
     an easement, an easement for the maximum duration allowed 
     under State law; or
       ``(C) a 30-year rental agreement.
       ``(c) Eligible Land.--Land shall be eligible to be enrolled 
     in the program if the Secretary determines that the land is--
       ``(1) natural grassland or shrubland;
       ``(2) land that--
       ``(A) is located in an area that has been historically 
     dominated by natural grassland or shrubland; and
       ``(B) has potential to serve as habitat for animal or plant 
     populations of significant ecological value if the land is 
     restored to natural grassland or shrubland; or
       ``(3) land that is incidental to land described in 
     paragraph (1) or (2), if the incidental land is determined by 
     the Secretary to be necessary for the efficient 
     administration of the easement.

     ``SEC. 1238A. EASEMENTS AND AGREEMENTS.

       ``(a) In General.--To be eligible to enroll land in the 
     program, the owner of the land shall enter into an agreement 
     with the Secretary--
       ``(1) to grant an easement that runs with the land to the 
     Secretary;
       ``(2) to create and record an appropriate deed restriction 
     in accordance with applicable State law to reflect the 
     easement;
       ``(3) to provide a written statement of consent to the 
     easement signed by persons holding a security interest or any 
     vested interest in the land;
       ``(4) to provide proof of unencumbered title to the 
     underlying fee interest in the land that is the subject of 
     the easement; and
       ``(5) to comply with the terms of the easement and 
     restoration agreement.
       ``(b) Terms of Easement.--An easement under subsection (a) 
     shall--
       ``(1) permit--
       ``(A) grazing on the land in a manner that is consistent 
     with maintaining the viability of natural grass and shrub 
     species indigenous to that locality;
       ``(B) haying (including haying for seed production) or 
     mowing, except during the nesting season for birds in the 
     area that are in significant decline, as determined by the 
     Natural Resources Conservation Service State conservationist, 
     or are protected Federal or State law; and
       ``(C) fire rehabilitation, construction of fire breaks, and 
     fences (including placement of the posts necessary for 
     fences);
       ``(2) prohibit--
       ``(A) the production of row crops, fruit trees, vineyards, 
     or any other agricultural commodity that requires breaking 
     the soil surface; and
       ``(B) except as permitted under paragraph (1)(C), the 
     conduct of any other activities that would disturb the 
     surface of the land covered by the easement, including--
       ``(i) plowing; and
       ``(ii) disking; and
       ``(3) include such additional provisions as the Secretary 
     determines are appropriate to carry out this subchapter or to 
     facilitate the administration of this subchapter.
       ``(c) Evaluation and Ranking of Easement Applications.--
       ``(1) In general.--The Secretary, in conjunction with State 
     technical committees, shall establish criteria to evaluate 
     and rank applications for easements under this subchapter.
       ``(2) Criteria.--In establishing the criteria, the 
     Secretary shall emphasize support for

[[Page 26748]]

     grazing operations, plant and animal biodiversity, and 
     grassland and shrubland under the greatest threat of 
     conversion.
       ``(d) Restoration Agreements.--
       ``(1) In general.--The Secretary shall prescribe the terms 
     by which grassland and shrubland subject to an easement under 
     an agreement entered into under the program shall be 
     restored.
       ``(2) Requirements.--The restoration agreement shall 
     describe the respective duties of the owner and the Secretary 
     (including paying the Federal share of the cost of 
     restoration and the provision of technical assistance).
       ``(e) Violations.--
       ``(1) In general.--On the violation of the terms or 
     conditions of an easement or restoration agreement entered 
     into under this section--
       ``(A) the easement shall remain in force; and
       ``(B) the Secretary may require the owner to refund all or 
     part of any payments received by the owner under this 
     subchapter, with interest on the payments as determined 
     appropriate by the Secretary.
       ``(2) Periodic inspections.--
       ``(A) In general.--After providing notice to the owner, the 
     Secretary shall conduct periodic inspections of land subject 
     to easements under this subchapter to ensure that the terms 
     of the easement and restoration agreement are being met.
       ``(B) Limitation.--The Secretary may not prohibit the 
     owner, or a representative of the owner, from being present 
     during a periodic inspection.

     ``SEC. 1238B. DUTIES OF SECRETARY.

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

     ``SEC. 1238C. ADMINISTRATION.

       ``(a) Delegation to Private Organizations.--
       ``(1) In general.--The Secretary shall permit a private 
     conservation or land trust organization or a State agency to 
     hold and enforce an easement under this subchapter, in lieu 
     of the Secretary, if--
       ``(A) the Secretary determines that granting such 
     permission is likely to promote grassland and shrubland 
     protection; and
       ``(B) the owner authorizes the private conservation or land 
     trust or a State agency to hold and enforce the easement.
       ``(2) Application.--An organization that desires to hold an 
     easement under this subchapter shall apply to the Secretary 
     for approval.
       ``(3) Approval by secretary.--The Secretary shall approve 
     an organization under this subchapter that is constituted for 
     conservation or ranching purposes and is competent to 
     administer grassland and shrubland easements.
       ``(4) Reassignment.--If an organization holding an easement 
     on land under this subchapter terminates--
       ``(A) the owner of the land shall reassign the easement to 
     another organization described in paragraph (1) or to the 
     Secretary; and
       ``(B) the owner and the new organization shall notify the 
     Secretary in writing that a reassignment for termination has 
     been made.
       ``(b) Regulations.--Not later than 180 days after the date 
     of enactment of this subchapter, the Secretary shall issue 
     such regulations as are necessary to carry out this 
     subchapter.''.

     SEC. 207. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

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

      ``Subtitle H--Resource Conservation and Development Program

     ``SEC. 1528. DEFINITIONS.

       ``In this subtitle:
       ``(1) Area plan.--The term `area plan' means a resource 
     conservation and use plan that is developed by a council for 
     a designated area of a State or States through a planning 
     process and that includes 1 or more of the following 
     elements:
       ``(A) A land conservation element, the purpose of which is 
     to control erosion and sedimentation.
       ``(B) A water management element that provides 1 or more 
     clear environmental or conservation benefits, the purpose of 
     which is to provide for--
       ``(i) the conservation, use, and quality of water, 
     including irrigation and rural water supplies;
       ``(ii) the mitigation of floods and high water tables;
       ``(iii) the repair and improvement of reservoirs;
       ``(iv) the improvement of agricultural water management; 
     and
       ``(v) the improvement of water quality.
       ``(C) A community development element, the purpose of which 
     is to improve--
       ``(i) the development of resources-based industries;
       ``(ii) the protection of rural industries from natural 
     resource hazards;
       ``(iii) the development of adequate rural water and waste 
     disposal systems;
       ``(iv) the improvement of recreation facilities;
       ``(v) the improvement in the quality of rural housing;
       ``(vi) the provision of adequate health and education 
     facilities;
       ``(vii) the satisfaction of essential transportation and 
     communication needs; and
       ``(viii) the promotion of food security, economic 
     development, and education.
       ``(D) A land management element, the purpose of which is--
       ``(i) energy conservation;
       ``(ii) the protection of agricultural land, as appropriate, 
     from conversion to other uses;
       ``(iii) farmland protection; and
       ``(iv) the protection of fish and wildlife habitats.
       ``(2) Board.--The term `Board' means the Resource 
     Conservation and Development Policy Advisory Board 
     established under section 1533(a).
       ``(3) Council.--The term `council' means a nonprofit entity 
     (including an affiliate of the entity) operating in a State 
     that is--
       ``(A) established by volunteers or representatives of 
     States, local units of government, Indian tribes, or local 
     nonprofit organizations to carry out an area plan in a 
     designated area; and
       ``(B) designated by the chief executive officer or 
     legislature of the State to receive technical assistance and 
     financial assistance under this subtitle.
       ``(4) Designated area.--The term `designated area' means a 
     geographic area designated by the Secretary to receive 
     technical assistance and financial assistance under this 
     subtitle.
       ``(5) Financial assistance.--The term `financial 
     assistance' means a grant or loan provided by the Secretary 
     (or the Secretary

[[Page 26749]]

     and other Federal agencies) to, or a cooperative agreement 
     entered into by the Secretary (or the Secretary and other 
     Federal agencies) with, a council, or association of 
     councils, to carry out an area plan in a designated area, 
     including assistance provided for planning, analysis, 
     feasibility studies, training, education, and other 
     activities necessary to carry out the area plan.
       ``(6) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term by section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(7) Local unit of government.--The term `local unit of 
     government' means--
       ``(A) any county, city, town, township, parish, village, or 
     other general-purpose subdivision of a State; and
       ``(B) any local or regional special district or other 
     limited political subdivision of a State, including any soil 
     conservation district, school district, park authority, and 
     water or sanitary district.
       ``(8) Nonprofit organization.--The term `nonprofit 
     organization' means any organization that is--
       ``(A) described in section 501(c) of the Internal Revenue 
     Code of 1986; and
       ``(B) exempt from taxation under section 501(a) of the 
     Internal Revenue Code of 1986.
       ``(9) Planning process.--The term `planning process' means 
     actions taken by a council to develop and carry out an 
     effective area plan in a designated area, including 
     development of the area plan, goals, purposes, policies, 
     implementation activities, evaluations and reviews, and the 
     opportunity for public participation in the actions.
       ``(10) Project.--The term `project' means a project that is 
     carried out by a council to achieve any of the elements of an 
     area plan.
       ``(11) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(12) State.--The term `State' means--
       ``(A) any State;
       ``(B) the District of Columbia; or
       ``(C) any territory or possession of the United States.
       ``(13) Technical assistance.--The term `technical 
     assistance' means any service provided by the Secretary or 
     agent of the Secretary, including--
       ``(A) inventorying, evaluating, planning, designing, 
     supervising, laying out, and inspecting projects;
       ``(B) providing maps, reports, and other documents 
     associated with the services provided;
       ``(C) providing assistance for the long-term implementation 
     of area plans; and
       ``(D) providing services of an agency of the Department of 
     Agriculture to assist councils in developing and carrying out 
     area plans.

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

       ``The Secretary shall establish a resource conservation and 
     development program under which the Secretary shall provide 
     technical assistance and financial assistance to councils to 
     develop and carry out area plans and projects in designated 
     areas--
       ``(1) to conserve and improve the use of land, develop 
     natural resources, and improve and enhance the social, 
     economic, and environmental conditions in primarily rural 
     areas of the United States; and
       ``(2) to encourage and improve the capability of State, 
     units of government, Indian tribes, nonprofit organizations, 
     and councils to carry out the purposes described in paragraph 
     (1).

     ``SEC. 1530. SELECTION OF DESIGNATED AREAS.

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

     ``SEC. 1531. POWERS OF THE SECRETARY.

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

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

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

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

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

     ``SEC. 1534. EVALUATION OF PROGRAM.

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

     ``SEC. 1535. LIMITATION ON ASSISTANCE.

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

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

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

     ``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 208. CONSERVATION OF PRIVATE GRAZING LAND.

       (a) In General.--Section 386 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 2005b) is 
     amended by striking subsection (f) and inserting the 
     following:
       ``(f) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall use to carry out this 
     section $40,000,000 for each of fiscal years 2002 through 
     2006.''.
       (b) Conforming Amendment.--Section 386(d)(2) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (16 U.S.C. 
     2005b(d)(2)) is amended by striking ``elements.--'' and all 
     that follows through ``education.--Personnel'' and inserting 
     ``elements.--Personnel''.

     SEC. 209. OTHER CONSERVATION PROGRAMS.

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

[[Page 26750]]



                ``CHAPTER 5--OTHER CONSERVATION PROGRAMS

     ``SEC. 1240M. WATERSHED RISK REDUCTION.

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

            Subtitle B--Miscellaneous Reforms and Extensions

     SEC. 211. PRIVACY OF PERSONAL INFORMATION RELATING TO NATURAL 
                   RESOURCES CONSERVATION PROGRAMS.

       Subtitle E of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3841 et seq.) is amended--
       (1) by redesignating sections 1244 and 1245 (16 U.S.C. 
     3844, 3845) as sections 1246 and 1247, respectively; and
       (2) by inserting after section 1243 (16 U.S.C. 3843) the 
     following:

     ``SEC. 1244. PRIVACY OF PERSONAL INFORMATION RELATING TO 
                   NATURAL RESOURCES CONSERVATION PROGRAMS.

       ``(a) Information Received for Technical and Financial 
     Assistance.--
       ``(1) In general.--In accordance with section 552(b)(3) of 
     title 5, United States Code, except as provided in subsection 
     (c), information described in paragraph (2)--
       ``(A) shall not be considered to be public information; and
       ``(B) shall not be released to any person or Federal, 
     State, local, or tribal agency outside the Department of 
     Agriculture.
       ``(2) Information.--The information referred to in 
     paragraph (1) is information--
       ``(A) provided to, or developed by, the Secretary 
     (including a contractor of the Secretary) for the purpose of 
     providing technical or financial assistance to an owner or 
     producer with respect to any natural resources conservation 
     program administered by the Natural Resources Conservation 
     Service or the Farm Service Agency; and
       ``(B) that is proprietary to the agricultural operation or 
     land that is a part of an agricultural operation of the owner 
     or producer.
       ``(b) Inventory, Monitoring, and Site Specific 
     Information.--Except as provided in subsection (c) and 
     notwithstanding any other provision of law, in order to 
     maintain the personal privacy, confidentiality, and 
     cooperation of owners and producers, and to maintain the 
     integrity of sample sites, the specific geographic locations 
     of the National Resources Inventory of the Department of 
     Agriculture data gathering sites and the information 
     generated by those sites--
       ``(1) shall not be considered to be public information; and
       ``(2) shall not be released to any person or Federal, 
     State, local, or tribal agency outside the Department of 
     Agriculture.
       ``(c) Exceptions.--
       ``(1) Release and disclosure for enforcement.--The 
     Secretary may release or disclose to the Attorney General 
     information covered by subsection (a) or (b) to the extent 
     necessary to enforce the natural resources conservation 
     programs referred to in subsection (a).
       ``(2) Disclosure to cooperating persons and agencies.--
       ``(A) In general.--The Secretary may release or disclose 
     information covered by subsection (a) or (b) to a person or 
     Federal, State, local, or tribal agency working in 
     cooperation with the Secretary in providing technical and 
     financial assistance described in subsection (a) or 
     collecting information from National Resources Inventory data 
     gathering sites.
       ``(B) Use of information.--The person or Federal, State, 
     local, or tribal agency that receives information described 
     in subparagraph (A) may release the information only for the 
     purpose of assisting the Secretary--
       ``(i) in providing the requested technical or financial 
     assistance; or
       ``(ii) in collecting information from National Resources 
     Inventory data gathering sites.
       ``(3) Statistical and aggregate information.--Information 
     covered by subsection (a) or (b) 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 any individual owner, producer, or specific 
     data gathering site.
       ``(4) Consent of owner or producer.--
       ``(A) In general.--An owner or producer may consent to the 
     disclosure of information described in subsection (a) or (b).
       ``(B) Condition of other programs.--The participation of 
     the owner or producer in, and the receipt of any benefit by 
     the owner or producer under, this title or any other program 
     administered by the Secretary may not be conditioned on the 
     owner or operator providing consent under this paragraph.
       ``(d) Violations; Penalties.--Section 1770(c) shall apply 
     with respect to the release of information collected in any 
     manner or for any purpose prohibited by this section.''.

     SEC. 212. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       Subtitle E of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3841 et seq.) (as redesignated and amended by 
     section 211) is amended by inserting after section 1244 the 
     following:

     ``SEC. 1245. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION 
                   PROGRAMS.

       ``(a) Good Faith Reliance.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, except as provided in paragraph (4), the Secretary shall 
     provide equitable relief to an owner or operator that has 
     entered into a contract under a conservation program 
     administered by the Secretary, and that is subsequently 
     determined to be in violation of the contract, if the owner 
     or operator in attempting to comply with the terms of the 
     contract and enrollment requirements--
       ``(A) took actions in good faith reliance on the action or 
     advice of an employee of the Secretary; and
       ``(B) had no knowledge that the actions taken were in 
     violation of the contract.
       ``(2) Types of relief.--The Secretary shall--
       ``(A) to the extent the Secretary determines that an owner 
     or operator has been injured by good faith reliance described 
     in paragraph (1), allow the owner or operator--
       ``(i) to retain payments received under the contract;
       ``(ii) to continue to receive payments under the contract;
       ``(iii) to keep all or part of the land covered by the 
     contract enrolled in the applicable program under this 
     chapter;
       ``(iv) to reenroll all or part of the land covered by the 
     contract in the applicable program under this chapter; or
       ``(v) to receive any other equitable relief the Secretary 
     considers appropriate; and
       ``(B) require the owner or operator to take such actions as 
     are necessary to remedy any failure to comply with the 
     contract.
       ``(3) Relationship to other law.--The authority to provide 
     relief under this subsection shall be in addition to any 
     other authority provided in this or any other Act.
       ``(4) Exceptions.--This section shall not apply to--
       ``(A) any pattern of conduct in which an employee of the 
     Secretary takes actions or provides advice with respect to an 
     owner or operator that the employee and the owner or operator 
     know are inconsistent with applicable law (including 
     regulations); or
       ``(B) an owner or operator takes any action, independent of 
     any advice or authorization provided by an employee of the 
     Secretary, that the owner or operator knows or should have 
     known to be inconsistent with applicable law (including 
     regulations).
       ``(5) Applicability of relief.--Relief under this section 
     shall be available for contracts in effect on the date of 
     enactment of this section.
       ``(b) Education, Outreach, Monitoring, and Evaluation.--In 
     carrying out any conservation program administered by the 
     Secretary, the Secretary--
       ``(1) shall provide education, outreach, monitoring, 
     evaluation, and related services to agricultural producers 
     (including owners and operators of small and medium-sized 
     farms, socially disadvantaged agricultural producers, and 
     limited resource agricultural producers);
       ``(2) may enter into contracts with private nonprofit, 
     community-based organizations and educational institutions 
     with demonstrated experience in providing the services 
     described in paragraph (1), to provide those services; and
       ``(3) shall use such sums as are necessary from funds of 
     the Commodity Credit Corporation to carry out activities 
     described in paragraphs (1) and (2).
       ``(c) Socially Disadvantaged and Limited Resource Owners 
     and Operators.--The Secretary shall provide outreach, 
     training, and technical assistance specifically to encourage 
     and assist socially disadvantaged and limited resource owners 
     and operators to participate in conservation programs 
     administered by the Secretary.
       ``(d) Program Evaluation.--The Secretary shall maintain 
     data concerning conservation security plans, conservation 
     practices planned or implemented, environmental outcomes, 
     economic costs, and related matters under conservation 
     programs administered by the Secretary.
       ``(e) Mediation and Informal Hearings.--If the Secretary 
     makes a decision under a conservation program administered by 
     the Secretary that is adverse to an owner or operator, at the 
     request of the owner or operator, the Secretary shall provide 
     the owner

[[Page 26751]]

     or operator with mediation services or an informal hearing on 
     the decision.
       ``(f) Reports.--Not later than 18 months after the date of 
     enactment of this subsection and at the end of each 2-year 
     period thereafter, the Secretary shall submit to Congress a 
     report evaluating the results of each conservation program 
     administered by the Secretary, including--
       ``(1) an evaluation of the scope, quality, and outcomes of 
     the conservation practices carried out under the program; and
       ``(2) recommendations for achieving specific and 
     quantifiable improvements for the purposes of each of the 
     programs.
       ``(g) Indian Tribes.--In carrying out any conservation 
     program administered by the Secretary on land under the 
     jurisdiction of an Indian tribe, the Secretary shall 
     cooperate with the tribal government of the Indian tribe to 
     ensure, to the maximum extent practicable, that the program 
     is administered in a fair and equitable manner.
       ``(h) Beginning Farmers and Ranchers and Indian Tribes.--In 
     carrying out any conservation program administered by the 
     Secretary, the Secretary may provide to beginning farmers and 
     ranchers (as identified by the Secretary) and Indian tribes, 
     incentives to participate in the conservation program to--
       ``(1) foster new farming opportunities; and
       ``(2) enhance environmental stewardship over the long 
     term.''.

     SEC. 213. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

       (a) In General.--The Secretary of Agriculture shall develop 
     a plan for--
       (1) coordinating conservation programs administered by the 
     Secretary that are targeted at agricultural land to--
       (A) eliminate redundancy; and
       (B) improve delivery; and
       (2) to the maximum extent practicable--
       (A) designing forms that are applicable to all such 
     conservation programs;
       (B) reducing and consolidating paperwork requirements for 
     such programs;
       (C) developing universal classification systems for all 
     information obtained on the forms that can be used by other 
     agencies of the Department of Agriculture;
       (D) ensuring that the information and classification 
     systems developed under this paragraph can be shared with 
     other agencies of the Department through computer 
     technologies used by agencies; and
       (E) developing 1 format for a conservation plan that can be 
     applied to all conservation programs targeted at agricultural 
     land.
       (b) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that describes the plan developed under 
     subsection (a), including any recommendations for 
     implementation of the plan.
       (c) National Conservation Plan.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a plan and estimated budget for implementing the 
     appraisal of the soil, water, air, and related resources of 
     the Nation contained in the National Conservation Program 
     under section 5 of the Soil and Water Resources Conservation 
     Act of 1977 (16 U.S.C. 2004) as the primary vehicle for 
     managing conservation on agricultural land in the United 
     States.
       (2) Report on implementation.--Not later than April 30, 
     2005, the Secretary shall submit to the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate a report 
     that describes the status of the implementation of the plan 
     described in paragraph (1).

     SEC. 214. CERTIFICATION OF PRIVATE PROVIDERS OF TECHNICAL 
                   ASSISTANCE.

       The Soil Conservation and Domestic Allotment Act is amended 
     by inserting after section 15 (16 U.S.C. 590o) the following:

     ``SEC. 16. CERTIFICATION OF PRIVATE PROVIDERS OF TECHNICAL 
                   ASSISTANCE.

       ``(a) In General.--The Secretary shall, to the maximum 
     extent practicable, subject to subsections (b), (c), and (d), 
     establish a more effective and more broadly functioning 
     system for the delivery of technical assistance in support of 
     the conservation programs administered by the Secretary by--
       ``(1) integrating the use of third party technical 
     assistance providers (including farmers and ranchers) into 
     the technical assistance delivery system; and
       ``(2) using, to the maximum extent practicable, private, 
     third party providers.
       ``(b) Purpose.--To achieve the timely completion of 
     conservation plans and other technical assistance functions, 
     third party providers described in subsection (a)(1) shall be 
     used to--
       ``(1) prepare conservation plans, including agronomically 
     sound nutrient management plans;
       ``(2) design, install and certify conservation practices;
       ``(3) train producers; and
       ``(4) carry out such other activities as the Secretary 
     determines to be appropriate.
       ``(c) Outside assistance.--
       ``(1) In general.--The Secretary may contract directly with 
     qualified persons not employed by the Department to provide 
     conservation technical assistance.
       ``(2) Payment by secretary.--
       ``(A) In general.--The Secretary shall provide a payment or 
     voucher to an owner or operator enrolled in a conservation 
     program administered by the Secretary if the owner or 
     operator elects to obtain technical assistance from a person 
     certified to provide technical assistance under this section.
       ``(B) Determination.--In determining whether to provide a 
     payment or voucher under subparagraph (A), the Secretary 
     shall seek to maximize the assistance received from qualified 
     private, third party providers to most expeditiously and 
     efficiently achieve the objectives of this title.
       ``(d) Certification of public and private providers of 
     technical assistance.--
       ``(1) Establishment of procedures.--The Secretary shall 
     establish procedures for ensuring that only persons with the 
     training, experience, and capability to provide professional, 
     high quality assistance are certified by the Secretary to 
     provide, to agricultural producers and landowners 
     participating, or seeking to participate, in a conservation 
     program administered by the Secretary, technical assistance 
     in planning, designing, or certifying any aspect of a 
     particular project under the conservation program.
       ``(2) Public and private providers.--Certified technical 
     assistance providers shall include--
       ``(A) agricultural producers;
       ``(B) agribusiness representatives;
       ``(C) representatives from agricultural cooperatives;
       ``(D) agricultural input retail dealers;
       ``(E) certified crop advisers;
       ``(F) employees of the Department; or
       ``(G) any group recognized by a Memorandum of Understanding 
     with the Department relating to certification.
       ``(3) Equivalence.--The Secretary shall ensure that any 
     certification program of the Department for public and 
     private technical service providers shall meet or exceed the 
     testing and continuing education standards of the Certified 
     Crop Adviser program.
       ``(4) Standards.--The Secretary shall establish standards 
     for the conduct of--
       ``(A) the certification process conducted by the Secretary; 
     and
       ``(B) periodic recertification by the Secretary of 
     providers.
       ``(5) Certification required.--A provider may not provide 
     to any producer technical assistance described in paragraph 
     (2) unless the provider is certified by the Secretary.
       ``(6) Nonduplication of previous certification.--The 
     Secretary shall consider, as certified, a provider that has 
     skills and qualifications in a particular area of technical 
     expertise if the skills and qualifications of the provider 
     have been certified by another entity the certification 
     program of which meets nationally recognized and accepted 
     standards for training, testing and otherwise establishing 
     professional qualifications (including the Certified Crop 
     Adviser program).
       ``(7) Fee.--
       ``(A) Payment.--
       ``(i) In general.--Except as provided in clause (ii), in 
     exchange for certification or recertification, a private 
     provider shall pay to the Secretary a fee in an amount 
     determined by the Secretary.
       ``(ii) Prior certification.--The Secretary shall not 
     require a provider to pay a fee under clause (i) for the 
     certification of skills and qualifications that have already 
     been certified by another entity under this section.
       ``(B) Account.--A fee paid to the Secretary under 
     subparagraph (A) shall be--
       ``(i) credited to the account in the Treasury that incurs 
     costs relating to implementing this section; and
       ``(ii) made available to the Secretary for use for 
     conservation programs administered by the Secretary, without 
     further appropriation, until expended.
       ``(8) National training centers.--
       ``(A) In general.--The Secretary, acting in equal 
     parthership with the Certified Crop Adviser program, shall 
     establish training centers to facilitate the training and 
     certification of technical assistance providers under this 
     section.
       ``(B) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this paragraph.
       ``(9) Other requirements.--The Secretary may establish such 
     other requirements as the Secretary determines are necessary 
     to carry out this section.
       ``(10) Regulations.--Not later than 180 days after the date 
     of enactment of this subchapter, the Secretary shall 
     promulgate regulations to carry out this section.''.

     SEC. 215. EXTENSION OF CONSERVATION AUTHORITIES.

       (a) ECARP Authority.--Section 1230(a)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3830(a)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.
       (b) Flood Risk Reduction.--Section 385(a) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7334(a)) is amended by striking ``2002'' and inserting 
     ``2006''.
       (c) Resource Conservation and Development Program.--Section 
     1538 of the Agriculture and Food Act of 1981 (16 U.S.C. 3461) 
     is amended in the first sentence by striking

[[Page 26752]]

     ``for each of the fiscal years 1996 through 2002'' and 
     inserting ``for each fiscal year''.

     SEC. 216. USE OF SYMBOLS, SLOGANS, AND LOGOS.

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

     SEC. 217. TECHNICAL AMENDMENTS.

       (a) Delineation of Wetlands; Exemptions to Program 
     Ineligibility.--
       (1) References to producer.--Section 322(e) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (Public Law 
     104-127; 110 Stat. 991) is amended by inserting ``each place 
     it appears'' before ``and inserting''.
       (2) Good faith exemption.--Section 1222(h)(2) of the Food 
     Security Act of 1985 (16 U.S.C. 3822(h)(2)) is amended by 
     striking ``to actively'' and inserting ``to be actively''.
       (3) Determinations.--Section 1222(j) of the Food Security 
     Act of 1985 (16 U.S.C. 3822(j)) is amended by striking 
     ``National'' and inserting ``Natural''.
       (b) Wildlife Habitat Incentive Program.--Section 387 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (16 
     U.S.C. 3836a) is amended in the section heading by striking 
     ``INCENTIVES'' and inserting ``INCENTIVE''.

     SEC. 218. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this title and notwithstanding any other provision of law, 
     this title and the amendments made by this title shall not 
     affect the authority of the Secretary of Agriculture to carry 
     out a conservation program for any of the 1996 through 2002 
     fiscal or calendar years under a provision of law in effect 
     immediately before the date of enactment of this Act.
       (b) Liability.--A provision of this title or an amendment 
     made by this title shall not affect the liability of any 
     person under any provision of law as in effect immediately 
     before the date of enactment of this Act.

                            TITLE III--TRADE

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

     SEC. 301. UNITED STATES POLICY.

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

     SEC. 302. PROVISION OF AGRICULTURAL COMMODITIES.

       Section 202 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1722) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(3) Program diversity.--The Administrator shall--
       ``(A) encourage eligible organizations to propose and 
     implement program plans to address 1 or more aspects of the 
     program under section 201; and
       ``(B) consider proposals that incorporate a variety of 
     program objectives and strategic plans based on the 
     identification by eligible organizations of appropriate 
     activities to assist development in foreign countries.'';
       (2) in subsection (e)(1), by striking ``not less than 
     $10,000,000, and not more than $28,000,000,'' and inserting 
     ``not less than 5 percent nor more than 10 percent of the 
     funds''; and
       (3) by adding at the end the following:
       ``(h) Certified Institutional Partners.--
       ``(1) In general.--The Administrator or the Secretary, as 
     applicable, shall promulgate regulations and issue guidelines 
     to permit private voluntary organizations and cooperatives to 
     be certified as institutional partners.
       ``(2) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Administrator a certification of 
     organizational capacity that describes--
       ``(A) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(B) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(3) Multi-country proposals.--A certified institutional 
     partner shall be eligible to--
       ``(A) submit a single proposal for 1 or more countries that 
     are the same as, or similar to, those countries in which the 
     certified institutional partner has already demonstrated 
     organizational capacity;
       ``(B) receive expedited review and approval of the 
     proposal; and
       ``(C) receive commodities and assistance under this section 
     for use in 1 or more countries.''.

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

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

     SEC. 304. LEVELS OF ASSISTANCE.

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

     SEC. 305. FOOD AID CONSULTATIVE GROUP.

       Section 205 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1725) is amended--
       (1) in subsection (a), by inserting ``, policies, 
     guidelines,'' after ``regulations'';
       (2) in subsection (d), by inserting ``policies,'' after 
     ``regulations,'' each place it appears; and
       (3) in subsection (f), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 306. MAXIMUM LEVEL OF EXPENDITURES.

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

     SEC. 307. ADMINISTRATION.

       Section 207 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by striking paragraph (1) and inserting the following:
       ``(1) Recipient countries.--A proposal to enter into a 
     nonemergency food assistance agreement under this title shall 
     identify the recipient country or countries that are the 
     subject of the agreement.
       ``(2) Timing.--Not later than 120 days after the date of 
     submission to the Administrator of a proposal submitted by an 
     eligible organization under this title, the Administrator 
     shall determine whether to accept the proposal.'';
       (2) in subsection (b), by striking ``guideline'' each place 
     it appears and inserting ``guideline or policy 
     determination'';
       (3) in subsection (d), by striking ``a United States field 
     mission'' and inserting ``an eligible organization with an 
     approved program under this title''; and
       (4) by adding at the end the following:
       ``(e) Timely Approval.--
       ``(1) In general.--The Administrator shall finalize program 
     agreements and resource requests for programs under this 
     section before the beginning of each fiscal year.
       ``(2) Report.--Not later than December 1 of each year, the 
     Administrator shall submit to

[[Page 26753]]

     the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report that contains--
       ``(A) a list of programs, countries, and commodities 
     approved to date for assistance under this section; and
       ``(B) a statement of the total amount of funds approved to 
     date for transportation and administrative costs under this 
     section.
       ``(f) Direct Delivery.--In addition to practices in effect 
     on the date of enactment of this subsection, the Secretary 
     may approve an agreement that provides for direct delivery of 
     agricultural commodities to milling or processing facilities 
     more than 50 percent of the interest in which is owned by 
     United States citizens in foreign countries, with the 
     proceeds of transactions transferred in cash to eligible 
     organizations described in section 202(d) to carry out 
     approved projects.''.

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

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

     SEC. 309. SALE PROCEDURE.

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

     SEC. 310. PREPOSITIONING.

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

     SEC. 311. EXPIRATION DATE.

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

     SEC. 312. MICRONUTRIENT FORTIFICATION PROGRAM.

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

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

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

     SEC. 313. FARMER-TO-FARMER PROGRAM.

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

               Subtitle B--Agricultural Trade Act of 1978

     SEC. 321. EXPORT CREDIT GUARANTEE PROGRAM.

       (a) Term of Supplier Credit Program.--Section 202(a)(2) of 
     the Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)(2)) is 
     amended by striking ``180'' and inserting ``360''.
       (b) Processed and High-Value Products.--Section 202(k)(1) 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) 
     is amended by striking ``, 2001, and 2002'' and inserting 
     ``through 2006''.
       (c) Report.--Section 202 of the Agricultural Trade Act of 
     1978 (7 U.S.C. 5622) is amended by adding at the end the 
     following:
       ``(l) Report on Agricultural Export Credit Programs.--
       ``(1) In general.--Not later than 1 year after the date of 
     enactment of this subsection, and annually thereafter, the 
     Secretary shall submit to the Committee on Agriculture and 
     the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition 
     and Forestry of the Senate a report on the status of 
     multilateral negotiations regarding agricultural export 
     credit programs at the World Trade Organization and the 
     Organization of Economic Cooperation and Development in 
     fulfillment of Article 10.2 of the Agreement on Agriculture 
     (as described in section 101(d)(2) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3511(d)(2))).
       ``(2) Classified information.--The report under paragraph 
     (1) shall be submitted in unclassified form, but may contain 
     a classified annex.''.
       (d) Reauthorization.--Section 211(b)(1) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 322. MARKET ACCESS PROGRAM.

       (a) In General.--Section 211(c) of the Agricultural Trade 
     Act of 1978 (7 U.S.C. 5641(c)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting 
     appropriately;
       (2) by striking ``The Commodity'' and inserting the 
     following:
       ``(1) In general.--The Commodity'';
       (3) by striking subparagraph (A) (as so redesignated) and 
     inserting the following:
       ``(A) in addition to any funds that may be specifically 
     appropriated to implement a market access program, not more 
     than $100,000,000 for fiscal year 2002, $120,000,000 for 
     fiscal year 2003, $140,000,000 for fiscal year 2004, 
     $160,000,000 for fiscal year 2005, and $190,000,000 for 
     fiscal year 2006, of the funds of, or an equal value of 
     commodities owned by, the Commodity Credit Corporation, 
     except that this paragraph shall not apply to section 203(h); 
     and''; and
       (4) by adding at the end the following:
       ``(2) Program Priorities.--Of funds made available under 
     paragraph (1)(A) in excess of $90,000,000 for any fiscal 
     year, priority shall be given to proposals--
       ``(A) made by eligible trade organizations that have never 
     participated in the market access program under this title; 
     or
       ``(B) for market access programs in emerging markets.''.
       (b) United States Quality Export Initiative.--
       (1) Findings.--Congress finds that--
       (A) the market access program established under section 203 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5623) and 
     foreign market development cooperator program established 
     under title VII of that Act (7 U.S.C. 7251 et seq.) target 
     generic and value-added agricultural products, with little 
     emphasis on the high quality of United States agricultural 
     products; and
       (B) new promotional tools are needed to enable United 
     States agricultural products to compete in higher margin, 
     international markets on the basis of quality.
       (2) Initiative.--Section 203 of the Agricultural Trade Act 
     of 1978 (7 U.S.C. 5623) is amended by adding at the end the 
     following:
       ``(h) United States Quality Export Initiative.--
       ``(1) In general.--Subject to the availability of 
     appropriations, using the authorities under this section, the 
     Secretary shall establish a program under which, on a 
     competitive basis, using practical and objective criteria, 
     several agricultural products are selected to carry the `U.S. 
     Quality' seal.
       ``(2) Promotional activities.--Agricultural products 
     selected under paragraph (1) shall be promoted using the 
     `U.S. Quality' seal at trade fairs in key markets through 
     electronic and print media.
       ``(3) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.''.

     SEC. 323. EXPORT ENHANCEMENT PROGRAM.

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

     SEC. 324. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

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

     ``SEC. 703. FUNDING.

       ``(a) In General.--To carry out this title, the Secretary 
     shall use funds of the Commodity Credit Corporation, or 
     commodities of the Commodity Credit Corporation of a 
     comparable value, in the following amounts:
       ``(1) For fiscal year 2002, $37,500,000.
       ``(2) For fiscal year 2003, $40,000,000.
       ``(3) For fiscal year 2004 and each subsequent fiscal year, 
     $42,500,000.

[[Page 26754]]

       ``(b) Program Priorities.--Of funds or commodities provided 
     under subsection (a) in excess of $35,000,000 for any fiscal 
     year, priority shall be given to proposals--
       ``(1) made by eligible trade organizations that have never 
     participated in the program established under this title; or
       ``(2) for programs established under this title in emerging 
     markets.''.

     SEC. 325. FOOD FOR PROGRESS AND EDUCATION PROGRAMS.

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

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

     ``SEC. 801. DEFINITIONS.

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

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

       ``(a) In General.--To provide agricultural commodities to 
     support the introduction or expansion of free trade 
     enterprises in national economies in recipient countries, and 
     to provide food or nutrition assistance in recipient 
     countries, the Secretary shall establish food for progress 
     and education programs under which the Secretary may enter 
     into agreements (including multiyear agreements and for 
     programs in more than 1 country) with--
       ``(1) the governments of emerging agricultural countries;
       ``(2) private voluntary organizations;
       ``(3) nonprofit agricultural organizations and 
     cooperatives;
       ``(4) nongovernmental organizations; and
       ``(5) other private entities.
       ``(b) Considerations.--In determining whether to enter into 
     an agreement to establish a program under subsection (a), the 
     Secretary shall take into consideration whether an emerging 
     agricultural country is committed to carrying out, or is 
     carrying out, policies that promote--
       ``(1) economic freedom;
       ``(2) private production of food commodities for domestic 
     consumption; and
       ``(3) the creation and expansion of efficient domestic 
     markets for the purchase and sale of those commodities.
       ``(c) International Food for Education and Nutrition 
     Program.--
       ``(1) In general.--In cooperation with other countries, the 
     Secretary shall establish an initiative within the food for 
     progress and education programs under this title to be known 
     as the `International Food for Education and Nutrition 
     Program', through which the Secretary may provide to eligible 
     organizations agricultural commodities and technical and 
     nutritional assistance in connection with education programs 
     to improve food security and enhance educational 
     opportunities for preschool age and primary school age 
     children in recipient countries.
       ``(2) Agreements.--In carrying out this subsection, the 
     Secretary--
       ``(A) shall administer the programs under this subsection 
     in manner that is consistent with this title; and
       ``(B) may enter into agreements with eligible 
     organizations--
       ``(i) to purchase, acquire, and donate eligible commodities 
     to eligible organizations to carry out agreements in 
     recipient countries; and
       ``(ii) to provide technical and nutritional assistance to 
     carry out agreements in recipient countries.
       ``(3) Other donor countries.--The Secretary shall encourage 
     other donor countries, directly or through eligible 
     organizations--
       ``(A) to donate goods and funds to recipient countries; and
       ``(B) to provide technical and nutritional assistance to 
     recipient countries.
       ``(4) Private sector.--The President and the Secretary are 
     urged to encourage the support and active involvement of the 
     private sector, foundations, and other individuals and 
     organizations in programs and activities assisted under this 
     subsection.
       ``(5) Graduation.--An agreement with an eligible 
     organization under this subsection shall include provisions--
       ``(A)(i) to sustain the benefits to the education, 
     enrollment, and attendance of children in schools in the 
     targeted communities when the provision of commodities and 
     assistance to a recipient country under the program under 
     this subsection terminates; and
       ``(ii) to estimate the period of time required until the 
     recipient country or eligible organization is able to provide 
     sufficient assistance without additional assistance under 
     this subsection; or
       ``(B) to provide other long-term benefits to targeted 
     populations of the recipient country.
       ``(6) Annual report.--The Secretary shall submit to the 
     Committee on Agriculture of the House of Representatives and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report that describes--
       ``(A) the results of the implementation of this subsection 
     during the year covered by the report, including the impact 
     on the enrollment, attendance, and performance of children in 
     preschools and primary schools targeted under the program 
     under this subsection; and
       ``(B) the level of commitments by, and the potential for 
     obtaining additional goods and assistance from, other 
     countries for subsequent years.
       ``(d) Terms.--
       ``(1) In general.--The Secretary may provide agricultural 
     commodities under this title on--
       ``(A) a grant basis; or
       ``(B) subject to paragraph (2), credit terms.
       ``(2) Credit terms.--Payment for agricultural commodities 
     made available under this title that are purchased on credit 
     terms shall be made on the same basis as payments made under 
     section 103 of the Agricultural Trade Development and 
     Assistance Act of 1954 (7 U.S.C. 1703).
       ``(3) No effect on domestic programs.--The Secretary shall 
     not make an agricultural commodity available for disposition 
     under this section in any amount that will reduce the amount 
     of the commodity that is traditionally made available through 
     donations to domestic feeding programs or agencies, as 
     determined by the Secretary.
       ``(e) Reports.--Each eligible organization that enters into 
     an agreement under this title shall submit to the Secretary, 
     at such time as the Secretary may request, a report 
     containing such information as the Secretary may request 
     relating to the use of agricultural commodities and funds 
     provided to the eligible organization under this title.
       ``(f) Coordination.--To ensure that the provision of 
     commodities under this section is coordinated with and 
     complements other foreign assistance provided by the United 
     States, assistance under this section shall be coordinated 
     through the mechanism designated by the President to 
     coordinate assistance under the Agricultural Trade 
     Development and Assistance Act of 1954 (7 U.S.C. 1691 et 
     seq.).
       ``(g) Quality Assurance.--
       ``(1) In general.--The Secretary shall ensure, to the 
     maximum extent practicable, that each eligible organization 
     participating in 1 or more programs under this section--

[[Page 26755]]

       ``(A) uses eligible commodities made available under this 
     title--
       ``(i) in an effective manner;
       ``(ii) in the areas of greatest need; and
       ``(iii) in a manner that promotes the purposes of this 
     title;
       ``(B) in using eligible commodities, assesses and takes 
     into account the needs of recipient countries and the target 
     populations of the recipient countries;
       ``(C) works with recipient countries, and indigenous 
     institutions or groups in recipient countries, to design and 
     carry out mutually acceptable programs authorized in 
     subsection (h)(2)(C)(i);
       ``(D) monitors and reports on the distribution or sale of 
     eligible commodities provided under this title using methods 
     that, as determined by the Secretary, facilitate accurate and 
     timely reporting;
       ``(E) periodically evaluates the effectiveness of the 
     program of the eligible organization, including, as 
     applicable, an evaluation of whether the development or food 
     and nutrition purposes of the program can be sustained in a 
     recipient country if the assistance provided to the recipient 
     country is reduced and eventually terminated; and
       ``(F) considers means of improving the operation of the 
     program of the eligible organization.
       ``(2) Certified institutional partners.--
       ``(A) In general.--The Secretary shall promulgate 
     regulations and guidelines to permit private voluntary 
     organizations and cooperatives to be certified as 
     institutional partners.
       ``(B) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Secretary a certification of 
     organizational capacity that describes--
       ``(i) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(ii) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(C) Multicountry proposals.--A certified institutional 
     partner shall be eligible to--
       ``(i) submit a single proposal for 1 or more countries that 
     are the same as, or similar to, those countries in which the 
     certified institutional partner has already demonstrated 
     organizational capacity;
       ``(ii) receive expedited review and approval of the 
     proposal; and
       ``(iii) request commodities and assistance under this 
     section for use in 1 or more countries.
       ``(D) Multiyear agreements.--In carrying out this title, on 
     request and subject to the availability of commodities, the 
     Secretary is encouraged to approve agreements that provide 
     for commodities to be made available for distribution on a 
     multiyear basis, if the agreements otherwise meet the 
     requirements of this title.
       ``(h) Transshipment and Resale.--
       ``(1) In general.--The transshipment or resale of an 
     eligible commodity to a country other than a recipient 
     country shall be prohibited unless the transshipment or 
     resale is approved by the Secretary.
       ``(2) Monetization.--
       ``(A) In general.--Subject to subparagraphs (B) through 
     (D), an eligible commodity provided under this section may be 
     sold for foreign currency or United States dollars or 
     bartered, with the approval of the Secretary.
       ``(B) Sale or barter of food assistance.--The sale or 
     barter of eligible commodities under this title may be 
     conducted only within (as determined by the Secretary)--
       ``(i) a recipient country or country nearby to the 
     recipient country; or
       ``(ii) another country, if--

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

       ``(C) Humanitarian or development purposes.--The Secretary 
     may authorize the use of proceeds or exchanges to reimburse, 
     within a recipient country or other country in the same 
     region, the costs incurred by an eligible organization for--
       ``(i)(I) programs targeted at hunger and malnutrition; or
       ``(II) development programs involving food security or 
     education;
       ``(ii) transportation, storage, and distribution of 
     eligible commodities provided under this title; and
       ``(iii) administration, sales, monitoring, and technical 
     assistance.
       ``(D) Exception.--The Secretary shall not approve the use 
     of proceeds described in subparagraph (C) to fund any 
     administrative expenses of a foreign government.
       ``(E) Private sector enhancement.--As appropriate, the 
     Secretary may provide eligible commodities under this title 
     in a manner that uses commodity transactions as a means of 
     developing in the recipient countries a competitive private 
     sector that can provide for the importation, transportation, 
     storage, marketing, and distribution of commodities.
       ``(i) Displacement of Commercial Sales.--In carrying out 
     this title, the Secretary shall, to the maximum extent 
     practicable consistent with the purposes of this title, 
     avoid--
       ``(1) displacing any commercial export sale of United 
     States agricultural commodities that would otherwise be made;
       ``(2) disrupting world prices of agricultural commodities; 
     or
       ``(3) disrupting normal patterns of commercial trade of 
     agricultural commodities with foreign countries.
       ``(j) Deadline for Program Announcements.--
       ``(1) In general.--Before the beginning of the applicable 
     fiscal year, the Secretary shall, to the maximum extent 
     practicable--
       ``(A) make all determinations concerning program agreements 
     and resource requests for programs under this title; and
       ``(B) announce those determinations.
       ``(2) Report.--Not later than November 1 of the applicable 
     fiscal year, the Secretary shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a list 
     of programs, countries, and commodities, and the total amount 
     of funds for transportation and administrative costs, 
     approved to date under this title.
       ``(k) Military Distribution of Assistance.--
       ``(1) In general.--The Secretary shall ensure, to the 
     maximum extent practicable, that agricultural commodities 
     made available under this title are provided without regard 
     to--
       ``(A) the political affiliation, geographic location, 
     ethnic, tribal, or religious identity of the recipient; or
       ``(B) any other extraneous factors, as determined by the 
     Secretary.
       ``(2) Prohibition on handling of commodities by the 
     military.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the Secretary shall not enter into an agreement under this 
     title to provide agricultural commodities if the agreement 
     requires or permits the distribution, handling, or allocation 
     of agricultural commodities by the military forces of any 
     foreign government or insurgent group.
       ``(B) Exception.--The Secretary may authorize the 
     distribution, handling, or allocation of commodities by the 
     military forces of a country in exceptional circumstances in 
     which--
       ``(i) nonmilitary channels are not available for 
     distribution, handling, or allocation;
       ``(ii) the distribution, handling, or allocation is 
     consistent with paragraph (1); and
       ``(iii) the Secretary determines that the distribution, 
     handling, or allocation is necessary to meet the emergency 
     health, safety, or nutritional requirements of the population 
     of a recipient country.
       ``(3) Encouragement of safe passage.--In entering into an 
     agreement under this title that involves 1 or more areas 
     within a recipient country that is experiencing protracted 
     warfare or civil unrest, the Secretary shall, to the maximum 
     extent practicable, encourage all parties to the conflict 
     to--
       ``(A) permit safe passage of the commodities and other 
     relief supplies; and
       ``(B) establish safe zones for--
       ``(i) medical and humanitarian treatment; and
       ``(ii) evacuation of injured persons.
       ``(l) Level of Assistance.--The cost of commodities made 
     available under this title, and the expenses incurred in 
     connection with the provision of those commodities shall be 
     in addition to the level of assistance provided under the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1691 et seq.).
       ``(m) Commodity Credit Corporation.--
       ``(1) In general.--Subject to paragraphs (6) through (8), 
     the Secretary may use the funds, facilities, and authorities 
     of the Corporation to carry out this title.
       ``(2) Minimum tonnage.--Subject to paragraphs (5) and 
     (7)(B), not less than 400,000 metric tons of commodities may 
     be provided under this title for each of fiscal years 2002 
     through 2006.
       ``(3) Authorization of appropriations.--In addition to 
     tonnage authorized under paragraph (2), there are authorized 
     to be appropriated such sums as are necessary to carry out 
     this title.
       ``(4) Title i funds.--In addition to tonnage and funds 
     authorized under paragraphs (2), (3), and (7)(B), the 
     Corporation may use funds appropriated to carry out title I 
     of the Agricultural Trade Development and Assistance Act of 
     1954 (7 U.S.C. 1701 et seq.)) in carrying out this section 
     with respect to commodities made available under this title.
       ``(5) International food for education and nutrition 
     program.--
       ``(A) In general.--Of the funds that would be available to 
     carry out paragraph (2), the Secretary may use not more than 
     $200,000,000 for each fiscal year to carry out the initiative 
     established under subsection (c).
       ``(B) Reallocation.--Tons not allocated under subsection 
     (c) by June 30 of each fiscal year shall be made available 
     for proposals submitted under the food for progress and 
     education programs under subsection (a).
       ``(6) Limitation on purchases of commodities.--The 
     Corporation may purchase agricultural commodities for 
     disposition under

[[Page 26756]]

     this title only if Corporation inventories are insufficient 
     to satisfy commitments made in agreements entered into under 
     this title.
       ``(7) Eligible costs and expenses.--
       ``(A) In general.--Subject to subparagraph (B), with 
     respect to an eligible commodity made available under this 
     title, the Corporation may pay--
       ``(i) the costs of acquiring the eligible commodity;
       ``(ii) the costs associated with packaging, enriching, 
     preserving, and fortifying of the eligible commodity;
       ``(iii) the processing, transportation, handling, and other 
     incidental costs incurred before the date on which the 
     commodity is delivered free on board vessels in United States 
     ports;
       ``(iv) the vessel freight charges from United States ports 
     or designated Canadian transshipment ports, as determined by 
     the Secretary, to designated ports of entry abroad;
       ``(v) the costs associated with transporting the eligible 
     commodity from United States ports to designated points of 
     entry abroad in a case in which--

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

       ``(vi) the transportation and associated distribution costs 
     incurred in moving the commodity (including repositioned 
     commodities) from designated points of entry or ports of 
     entry abroad to storage and distribution sites;
       ``(vii) in the case of an activity under subsection (c), 
     the internal transportation, storage, and handling costs 
     incurred in moving the eligible commodity, if the Secretary 
     determines that payment of the costs is appropriate and that 
     the recipient country is a low income, net food-importing 
     country that--

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

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

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

       ``(B) Funding.--Except for costs described in subparagraph 
     (A)(i), not more than $80,000,000 of funds that would be made 
     available to carry out paragraph (2) may be used to cover 
     costs under this paragraph unless authorized in advance in an 
     appropriation Act.
       ``(8) Payment of administrative costs.--An eligible 
     organization that receives payment for administrative costs 
     through monetization of the eligible commodity under 
     subsection (h)(2) shall not be eligible to receive payment 
     for the same administrative costs through direct payments 
     under paragraph (7)(A)(ix)(I).''.
       (b) Conforming Amendments.--
       (1) Section 416(b)(7)(D)(iii) of the Agricultural Act of 
     1949 (7 U.S.C. 1431(b)(7)(D)(iii)) is amended by striking 
     ``the Food for Progress Act of 1985'' and inserting ``title 
     VIII of the Agricultural Trade Act of 1978''.
       (2) The Act of August 19, 1958 (7 U.S.C. 1431 note; Public 
     Law 85-683) is amended by striking ``the Food for Progress 
     Act of 1985'' and inserting ``title VIII of the Agricultural 
     Trade Act of 1978''.
       (3) Section 1110 of the Food Security Act of 1985 (7 U.S.C. 
     1736o) is repealed.

     SEC. 326. EXPORTER ASSISTANCE INITIATIVE.

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

     ``SEC. 107. EXPORTER ASSISTANCE INITIATIVE.

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

        Subtitle C--Miscellaneous Agricultural Trade Provisions

     SEC. 331. BILL EMERSON HUMANITARIAN TRUST.

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

     SEC. 332. EMERGING MARKETS.

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

     SEC. 333. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note; Public Law 101-624) is 
     amended by adding at the end the following:
       ``(g) Biotechnology and Agricultural Trade Program.--
       ``(1) In general.--The Secretary of Agriculture shall 
     establish a program to enhance foreign acceptance of 
     agricultural biotechnology and United States agricultural 
     products developed through biotechnology.
       ``(2) Focus.--The program shall address the continuing and 
     increasing market access, regulatory, and marketing issues 
     relating to export commerce of United States agricultural 
     biotechnology products.
       ``(3) Education and outreach.--
       ``(A) Foreign markets.--Support for United States 
     agricultural market development organizations to carry out 
     education and other outreach efforts concerning biotechnology 
     shall target such educational initiatives directed toward--
       ``(i) producers, buyers, consumers, and media in foreign 
     markets through initiatives in foreign markets; and
       ``(ii) government officials, scientists, and trade 
     officials from foreign countries through exchange programs.
       ``(B) Funding for education and outreach.--Funding for 
     activities under subparagraph (A) may be--
       ``(i) used through--

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

       ``(ii) applied directly to foreign market development 
     cooperators through the foreign market development cooperator 
     program established under section 702.
       ``(4) Rapid response.--The Secretary shall assist exporters 
     of United States agricultural commodities in cases in which 
     the exporters are harmed by unwarranted and arbitrary 
     barriers to trade due to--
       ``(A) marketing of biotechnology products;
       ``(B) food safety;
       ``(C) disease; or
       ``(D) other sanitary or phytosanitary concerns.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $16,000,000 
     for each of fiscal years 2002 through 2006.''.

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

       (a) Use of Currencies.--Section 416(b)(7)(D) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is 
     amended--
       (1) in clauses (i) and (iii), by striking ``foreign 
     currency'' each place it appears;
       (2) in clause (ii)--
       (A) in the first sentence, by striking ``Foreign 
     currencies'' and inserting ``Proceeds''; and
       (B) in the second sentence, by striking ``foreign 
     currency''; and
       (3) in clause (iv)--
       (A) by striking ``Foreign currency proceeds'' and inserting 
     ``Proceeds''; and
       (B) by striking ``; or'' and all that follows and inserting 
     a period.
       (b) Implementation of Agreements.--Section 416(b)(8) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)) is amended by 
     striking ``(8)(A)'' and all that follows through ``(B) The 
     Secretary'' and inserting the following:
       ``(8) Administrative provisions.--
       ``(A) Direct delivery.--In addition to practices in effect 
     on the date of enactment of this subparagraph, the Secretary 
     may approve an agreement that provides for direct delivery of 
     eligible commodities to milling or processing facilities more 
     than 40 percent of the interest in which is owned by United 
     States citizens in recipient countries, with the proceeds of 
     transactions transferred in cash to eligible organizations to 
     carry out approved projects.
       ``(B) Regulations.--The Secretary''.
       (c) Certified Institutional Partners.--Section 416 of the 
     Agricultural Act of 1949 (7 U.S.C. 1431) is amended by adding 
     at the end the following:
       ``(c) Certified Institutional Partners.--
       ``(1) In general.--The Secretary shall promulgate 
     regulations and guidelines to permit private voluntary 
     organizations and cooperatives to be certified as 
     institutional partners.

[[Page 26757]]

       ``(2) Requirements.--To become a certified institutional 
     partner, a private voluntary organization or cooperative 
     shall submit to the Secretary a certification of 
     organizational capacity that describes--
       ``(A) the financial, programmatic, commodity management, 
     and auditing abilities and practices of the organization or 
     cooperative; and
       ``(B) the capacity of the organization or cooperative to 
     carry out projects in particular countries.
       ``(3) Multi-country proposals.--A certified institutional 
     partner shall be eligible to--
       ``(A) submit a single proposal for 1 or more countries that 
     are the same as, or similar to, those countries in which the 
     certified institutional partner has already demonstrated 
     organizational capacity;
       ``(B) receive expedited review and approval of the 
     proposal; and
       ``(C) request commodities and assistance under this section 
     for use in 1 or more countries.''.

     SEC. 335. AGRICULTURAL TRADE WITH CUBA.

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

                      TITLE IV--NUTRITION PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Food Stamp Reauthorization 
     Act of 2001''.

                     Subtitle A--Food Stamp Program

     SEC. 411. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.

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

     SEC. 412. SIMPLIFIED DEFINITION OF INCOME.

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

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

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

     SEC. 414. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

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

     SEC. 415. SIMPLIFIED UTILITY ALLOWANCE.

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

[[Page 26758]]

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

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

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

     SEC. 417. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

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

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

     SEC. 418. SIMPLIFIED DEFINITION OF RESOURCES.

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

     SEC. 419. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

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

     SEC. 420. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.

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

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

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

     SEC. 421. BENEFITS FOR ADULTS WITHOUT DEPENDENTS.

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

     SEC. 422. PRESERVATION OF ACCESS TO ELECTRONIC BENEFITS.

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

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

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

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

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

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

       (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
     U.S.C. 2017) is amended by adding at the end the following:
       ``(f) Simplified Procedures for Residents of Certain Group 
     Facilities.--
       ``(1) In general.--At the option of the State agency, 
     allotments for residents of facilities described in 
     subparagraph (B), (C), (D), or (E) of section 3(i)(5) may be 
     determined and issued under this subsection in lieu of 
     subsection (a).
       ``(2) Amount of allotment.--The allotment for each eligible 
     resident described in paragraph (1) shall be calculated in 
     accordance with standardized procedures established by the 
     Secretary that take into account the allotments typically 
     received by residents of facilities described in paragraph 
     (1).
       ``(3) Issuance of allotment.--
       ``(A) In general.--The State agency shall issue an 
     allotment determined under this subsection to the 
     administration of a facility described in paragraph (1) as 
     the authorized representative of the residents of the 
     facility.
       ``(B) Adjustment.--The Secretary shall establish procedures 
     to ensure that a facility described in paragraph (1) does not 
     receive a greater proportion of a resident's monthly 
     allotment than the proportion of the month during which the 
     resident lived in the facility.
       ``(4) Departures of covered residents.--
       ``(A) Notification.--Any facility described in paragraph 
     (1) that receives an allotment for a resident under this 
     subsection shall--
       ``(i) notify the State agency promptly on the departure of 
     the resident; and
       ``(ii) notify the resident, before the departure of the 
     resident, that the resident--

       ``(I) is eligible for continued benefits under the food 
     stamp program; and

[[Page 26759]]

       ``(II) should contact the State agency concerning 
     continuation of the benefits.

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

     SEC. 425. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON 
                   THE INTERNET.

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

     SEC. 426. SIMPLIFIED DETERMINATIONS OF CONTINUING 
                   ELIGIBILITY.

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

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

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

     SEC. 427. CLEARINGHOUSE FOR SUCCESSFUL NUTRITION EDUCATION 
                   EFFORTS.

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

     SEC. 428. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

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

[[Page 26760]]

       ``(C) is a member of any other category of households 
     designated by the State agency as ineligible for transitional 
     benefits.''.
       (b) Conforming Amendments.--
       (1) Section 3(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2012(c)) is amended by adding at the end the following: ``The 
     limits specified in this section may be extended until the 
     end of any transitional benefit period established under 
     section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 429. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.

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

     SEC. 430. REFORM OF QUALITY CONTROL SYSTEM.

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

       ``(I) the ratio that--

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

       ``(II) 1; and

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

       ``(I) the percentage of households with earned income that 
     receive food stamps in all States; or
       ``(II) the percentage of households with earned income that 
     received food stamps in the State in fiscal year 1992.

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

       ``(I) the percentage of households with 1 or more members 
     who are not United States citizens that receive food stamps 
     in all States; or
       ``(II) the percentage of households with 1 or more members 
     who are not United States citizens that received food stamps 
     in the State in fiscal year 1998.

       ``(B) Expanded applicability to state agencies subject to 
     sanctions.--In the case of a State agency subject to 
     sanctions for fiscal year 2001 or any fiscal year thereafter 
     under paragraph (1), the adjustments described in 
     subparagraph (A) shall apply to the State agency for the 
     fiscal year.
       ``(C) Additional adjustments.--For fiscal year 2003 and 
     each fiscal year thereafter, the Secretary may make such 
     additional adjustments to the payment error rate determined 
     under paragraph (2)(A) as the Secretary determines to be 
     consistent with achieving the purposes of this Act.''.
       (b) Applicability.--Except as otherwise provided in the 
     amendments made by subsection (a), the amendments made by 
     subsection (a) shall apply to fiscal year 2001 and each 
     fiscal year thereafter.

     SEC. 431. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE 
                   MEASURES.

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

     SEC. 432. BONUSES FOR STATES THAT DEMONSTRATE HIGH 
                   PERFORMANCE.

       (a) In General.--Section 16(c) of the Food Stamp Act of 
     1977 (7 U.S.C. 2025(c)) (as amended by section 430(a)(6)) is 
     amended by adding at the end the following:
       ``(11) High performance bonus payments.--
       ``(A) In general.--The Secretary shall--
       ``(i) with respect to fiscal year 2002 and each fiscal year 
     thereafter, measure the performance of each State agency with 
     respect to each of the performance measures specified in 
     subparagraph (B); and
       ``(ii) in fiscal year 2003 and each fiscal year thereafter, 
     subject to subparagraphs (C) and (D), make high performance 
     bonus payments to the State agencies with the highest or most 
     improved performance with respect to those performance 
     measures.
       ``(B) Performance measures.--The performance measures 
     specified in this subparagraph are--
       ``(i) the ratio, expressed as a percentage, that--

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

[[Page 26761]]

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

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

       ``(ii) 4 additional performance measures, established by 
     the Secretary in consultation with the National Governors 
     Association, the American Public Human Services Association, 
     and the National Conference of State Legislatures not later 
     than 180 days after the date of enactment of this paragraph, 
     of which not less than 1 performance measure shall relate to 
     provision of timely and appropriate services to applicants 
     for and recipients of food stamp benefits.
       ``(C) High performance bonus payments.--
       ``(i) Definition of caseload.--In this subparagraph, the 
     term `caseload' has the meaning given the term in section 
     6(o)(6)(A).
       ``(ii) Amount of payments.--

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

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

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

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

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

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

     SEC. 433. EMPLOYMENT AND TRAINING PROGRAM.

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

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

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

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

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

     SEC. 434. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD 
                   DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS.

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

     SEC. 435. COORDINATION OF PROGRAM INFORMATION EFFORTS.

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

     SEC. 436. EXPANDED GRANT AUTHORITY.

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

     SEC. 437. ACCESS AND OUTREACH PILOT PROJECTS.

       Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Access and Outreach Pilot Projects.--
       ``(1) In general.--The Secretary shall make grants to State 
     agencies and other entities to pay the Federal share of the 
     eligible costs of projects to improve--
       ``(A) access by eligible individuals to benefits under the 
     food stamp program; or
       ``(B) outreach to individuals eligible for those benefits.
       ``(2) Federal share.--The Federal share shall be 75 
     percent.
       ``(3) Types of projects.--To be eligible for a grant under 
     this subsection, a project may consist of--
       ``(A) establishing a single site at which individuals may 
     apply for--
       ``(i) benefits under the food stamp program; and
       ``(ii)(I) supplemental security income benefits under title 
     XVI of the Social Security Act (42 U.S.C. 1381 et seq.);
       ``(II) benefits under the medicaid program under title XIX 
     of the Social Security Act (42 U.S.C. 1396 et seq.);

[[Page 26762]]

       ``(III) benefits under the State children's health 
     insurance program under title XXI of the Social Security Act 
     (42 U.S.C. 1397aa et seq.);
       ``(IV) benefits under the special supplemental nutrition 
     program for women, infants, and children under section 17 of 
     the Child Nutrition Act of 1966 (42 U.S.C. 1786); or
       ``(V) benefits under such other programs as the Secretary 
     determines to be appropriate;
       ``(B) developing forms that allow an individual to apply 
     for more than 1 of the programs referred to in subparagraph 
     (A);
       ``(C) dispatching State agency personnel to conduct 
     outreach and enroll individuals in the food stamp program and 
     other programs in nontraditional venues (such as shopping 
     malls, schools, community centers, county fairs, clinics, 
     food banks, and job training centers);
       ``(D) developing systems to enable increased participation 
     in the provision of benefits under the food stamp program 
     through farmers' markets, roadside stands, and other 
     community-supported agriculture programs, including wireless 
     electronic benefit transfer systems and other systems 
     appropriate to open-air settings where farmers and other 
     vendors sell directly to consumers;
       ``(E) allowing individuals to submit applications for the 
     food stamp program by means of the telephone or the Internet, 
     in particular individuals who live in rural areas, elderly 
     individuals, and individuals with disabilities;
       ``(F) encouraging consumption of fruit and vegetables by 
     developing a cost-effective system for providing discounts 
     for purchases of fruit and vegetables made through use of 
     electronic benefit transfer cards;
       ``(G) reducing barriers to participation by individuals, 
     with emphasis on working families, eligible immigrants, 
     elderly individuals, and individuals with disabilities;
       ``(H) developing training materials, guidebooks, and other 
     resources to improve access and outreach;
       ``(I) conforming verification practices under the food 
     stamp program with verification practices under other 
     assistance programs; and
       ``(J) such other activities as the Secretary determines to 
     be appropriate.
       ``(4) Selection.--
       ``(A) In general.--The Secretary shall develop criteria for 
     selecting recipients of grants under this subsection that 
     include the consideration of--
       ``(i) the demonstrated record of a State agency or other 
     entity in serving low-income individuals;
       ``(ii) the ability of a State agency or other entity to 
     reach hard-to-serve populations;
       ``(iii) the level of innovative proposals in the 
     application of a State agency or other entity for a grant; 
     and
       ``(iv) the development of partnerships between public and 
     private sector entities and linkages with the community.
       ``(B) Preference.--In selecting recipients of grants under 
     paragraph (1), the Secretary shall provide a preference to 
     any applicant that consists of a partnership between a State 
     and a private entity, such as--
       ``(i) a food bank;
       ``(ii) a community-based organization;
       ``(iii) a public school;
       ``(iv) a publicly-funded health clinic;
       ``(v) a publicly-funded day care center; and
       ``(vi) a nonprofit health or welfare agency.
       ``(C) Geographical distribution of recipients.--
       ``(i) In general.--Subject to clause (ii), the Secretary 
     shall select, from all eligible applications received, at 
     least 1 recipient to receive a grant under this subsection 
     from--

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

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

     SEC. 438. CONSOLIDATED BLOCK GRANTS AND ADMINISTRATIVE FUNDS.

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

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

       (3) by adding at the end the following:
       ``(C) American samoa.--For each fiscal year, the Secretary 
     shall reserve 0.4 percent of the funds made available under 
     subparagraph (A) for payment to American Samoa to pay 100 
     percent of the expenditures for a nutrition assistance 
     program extended under section 601(c) of Public Law 96-597 
     (48 U.S.C. 1469d(c)).
       ``(D) Governmental entity.--A governmental entity specified 
     in this subparagraph is--
       ``(i) the Commonwealth of Puerto Rico; and
       ``(ii) for fiscal year 2003 and each fiscal year 
     thereafter, American Samoa.''.
       (b) Conforming Amendment.--Section 24 of the Food Stamp Act 
     of 1977 (7 U.S.C. 2033) is repealed.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section take effect on October 1, 
     2002.
       (2) Exception for expenditures for certain systems.--The 
     amendments made by subsection (a)(2) take effect on the date 
     of enactment of this Act.

     SEC. 439. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

       Section 25 of the Food Stamp Act of 1977 (7 U.S.C. 2034) is 
     amended--
       (1) in subsection (b)(2)(B), by striking ``2002'' and 
     inserting ``2006'';
       (2) in subsection (d)--
       (A) in paragraph (3), by striking ``or'' at the end; and
       (B) by striking paragraph (4) and inserting the following:
       ``(4) encourage long-term planning activities, and 
     multisystem, interagency approaches with multistakeholder 
     collaborations, that build the long-term capacity of 
     communities to address the food and agriculture problems of 
     the communities, such as food policy councils and food 
     planning associations; or
       ``(5) meet, as soon as practicable, specific neighborhood, 
     local, or State food and agriculture needs, including needs 
     for--
       ``(A) infrastructure improvement and development;
       ``(B) planning for long-term solutions; or
       ``(C) the creation of innovative marketing activities that 
     mutually benefit farmers and low-income consumers.''; and
       (3) in subsection (e)(1), by striking ``50'' and inserting 
     ``75''.

     SEC. 440. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
                   ASSISTANCE PROGRAM.

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

[[Page 26763]]

       ``(2) Allocation of funds.--The amount required to be used 
     in accordance with paragraph (1) shall be allocated in 
     accordance with section 204(a) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)).''.
       (b) Effective Date.--The amendments made by this section 
     take effect on the date of enactment of this Act.

     SEC. 441. INNOVATIVE PROGRAMS FOR ADDRESSING COMMON COMMUNITY 
                   PROBLEMS.

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

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

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

     SEC. 442. REPORT ON USE OF ELECTRONIC BENEFIT TRANSFER 
                   SYSTEMS.

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

     SEC. 443. VITAMIN AND MINERAL SUPPLEMENTS.

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

                  Subtitle B--Miscellaneous Provisions

     SEC. 451. REAUTHORIZATION OF COMMODITY PROGRAMS.

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

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

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

[[Page 26764]]

     1183a(a)(3)(A)) is amended by striking ``40'' and inserting 
     ``40 (or 16, in the case of the specified Federal program 
     described in section 402(a)(3)(B) of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996 (8 U.S.C. 1612(a)(3)(B)))''.
       (B) Section 421(b)(2)(A) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1631(b)(2)(A)) is amended by striking ``40'' and inserting 
     ``40 (or 16, in the case of the specified Federal program 
     described in section 402(a)(3)(B))''.
       (c) Restoration of Benefits to Refugees and Asylees.--
     Section 402(a)(2) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)) 
     is amended--
       (1) in subparagraph (A), by striking ``programs described 
     in paragraph (3)'' and inserting ``program described in 
     paragraph (3)(A)''; and
       (2) by adding at the end the following:
       ``(L) Food stamp exception for refugees and asylees.--With 
     respect to eligibility for benefits for the specified Federal 
     program described in paragraph (3)(B), paragraph (1) shall 
     not apply to an alien with respect to which an action 
     described in subparagraph (A) was taken and was not 
     revoked.''.
       (d) Restoration of Benefits to Disabled Aliens.--Section 
     402(a)(2)(F) of the Personal Responsibility and Work 
     Opportunity Reconciliation Act of 1996 (8 U.S.C. 
     1612(a)(2)(F)) is amended by striking ``(i) was'' and all 
     that follows through ``(II) in the case'' and inserting the 
     following:
       ``(i) in the case of the specified Federal program 
     described in paragraph (3)(A)--

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

       ``(ii) in the case''.

     SEC. 453. COMMODITIES FOR SCHOOL LUNCH PROGRAMS.

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

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

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

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

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

       ``(I) for housing'';

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

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

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

     SEC. 456. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     carry out and expand a seniors farmers' market nutrition 
     program.
       (b) Program Purposes.--The purposes of the seniors farmers' 
     market nutrition program are--
       (1) to provide to low-income seniors resources in the form 
     of fresh, nutritious, unprepared, locally grown fruits, 
     vegetables, and herbs from farmers' markets, roadside stands, 
     and community-supported agriculture programs;
       (2) to increase domestic consumption of agricultural 
     commodities by expanding or assisting in the expansion of 
     domestic farmers' markets, roadside stands, and community-
     supported agriculture programs; and
       (3) to develop or aid in the development of new farmers' 
     markets, roadside stands, and community-supported agriculture 
     programs.
       (c) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as the Secretary considers 
     necessary to carry out the seniors farmers' market nutrition 
     program under this section.
       (d) Funding.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, and on October 1, 2002, and each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $15,000,000.
       (2) Receipt and acceptance.--The Secretary of Agriculture 
     shall be entitled to receive, shall accept, and shall use to 
     carry out this section the funds transferred under paragraph 
     (1), without further appropriation.

     SEC. 457. FRUIT AND VEGETABLE PILOT PROGRAM.

       (a) In General.--In the school year beginning July 2002, 
     the Secretary of Agriculture shall use funds made available 
     under section 32 of the Act of August 24, 1935 (7 U.S.C. 
     612c), to conduct a pilot program to make available to 
     students, in 25 elementary or secondary schools in each of 4 
     States, and in elementary or secondary schools on 1 Indian 
     reservation, free fruits and vegetables throughout the school 
     day in--
       (1) a cafeteria;
       (2) a student lounge; or
       (3) another designated room of the school.
       (b) Publicity.--A school that participates in the pilot 
     program shall widely publicize within the school the 
     availability of free fruits and vegetables under the pilot 
     program.
       (c) Evaluation of Pilot Program.--
       (1) In general.--The Secretary of Agriculture shall conduct 
     an evaluation of the results of the pilot program to 
     determine--
       (A) whether students took advantage of the pilot program;
       (B) whether interest in the pilot program increased or 
     lessened over time; and
       (C) what effect, if any, the pilot program had on vending 
     machine sales.
       (2) Funding.--The Secretary shall use $200,000 of the funds 
     described in subsection (a) to carry out the evaluation under 
     this subsection.

     SEC. 458. CONGRESSIONAL HUNGER FELLOWS PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2001''.
       (b) Findings.--Congress finds that--
       (1) there are--
       (A) a critical need for compassionate individuals who are 
     committed to assisting people who suffer from hunger; and
       (B) a need for those individuals to initiate and administer 
     solutions to the hunger problem;
       (2) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated--
       (A) his commitment to solving the problem of hunger in a 
     bipartisan manner;
       (B) his commitment to public service; and
       (C) his great affection for the institution and the ideals 
     of Congress;
       (3) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, 
     demonstrated--
       (A) his compassion for individuals in need;
       (B) his high regard for public service; and
       (C) his lively exercise of political talents;
       (4) the special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all; and
       (5) since those 2 outstanding leaders maintained a special 
     bond of friendship regardless of political affiliation and 
     worked together to encourage future leaders to recognize and 
     provide service to others, it is especially appropriate to 
     honor the memory of Mr. Emerson and Mr. Leland by 
     establishing a fellowship program to develop and train the 
     future leaders of the United States to pursue careers in 
     humanitarian service.
       (c) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (B) the Committee on Agriculture, Nutrition, and Forestry 
     and the Committee on Foreign Relations of the Senate.
       (2) Board.--The term ``Board'' means the Board of Trustees 
     of the Program.
       (3) Fund.--The term ``Fund'' means the Congressional Hunger 
     Fellows Trust Fund established by subsection (g).
       (4) Program.--The term ``Program'' means the Congressional 
     Hunger Fellows Program established by subsection (d).
       (d) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government an entity to be known as the ``Congressional 
     Hunger Fellows Program''.
       (e) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board.--
       (A) Appointment.--
       (i) In general.--The Board shall be composed of 6 voting 
     members appointed under clause (ii) and 1 nonvoting ex-
     officio member designated by clause (iii).
       (ii) Voting members.--The voting members of the Board shall 
     be the following:

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

[[Page 26765]]

       (IV) 1 member appointed by the minority leader of the 
     Senate.

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

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

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

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

       (iii) Submission to congress.--Not later than 90 days after 
     the date of the first meeting of the Board, the Chairperson 
     of the Board shall submit to the appropriate congressional 
     committees a copy of the bylaws established by the Board.
       (B) Budget.--For each fiscal year in which the Program is 
     in operation--
       (i) the Board shall determine a budget for the Program for 
     the fiscal year; and
       (ii) all spending by the Program shall be in accordance 
     with the budget unless a change is approved by the Board.
       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the Program.
       (D) Allocation of funds to fellowships.--The Board shall 
     determine--
       (i) the priority of the programs to be carried out under 
     this section; and
       (ii) the amount of funds to be allocated for the 
     fellowships established under subsection (f)(3)(A).
       (f) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the Program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service;
       (B) to recognize the needs of people who are hungry and 
     poor;
       (C) to provide assistance and compassion for people in 
     need;
       (D) to increase awareness of the importance of public 
     service; and
       (E) to provide training and development opportunities for 
     the leaders through placement in programs operated by 
     appropriate entities.
       (2) Authority.--The Program may develop fellowships to 
     carry out the purposes of the Program, including the 
     fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The Program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

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

       (ii) Focus.--

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

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

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

       (iii) Amount of award.--

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

       (iv) Recognition of fellowship award.--

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

       (4) Evaluations.--
       (A) In general.--The Program shall conduct periodic 
     evaluations of the Bill Emerson and Mickey Leland Hunger 
     Fellowships.
       (B) Required elements.--Each evaluation shall include--
       (i) an assessment of the successful completion of the work 
     plan of each fellow;
       (ii) an assessment of the impact of the fellowship on the 
     fellows;
       (iii) an assessment of the accomplishment of the purposes 
     of the Program; and
       (iv) an assessment of the impact of each fellow on the 
     community.
       (g) Trust Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States a fund to be known as the ``Congressional 
     Hunger Fellows Trust Fund'', consisting of--
       (A) amounts appropriated to the Fund under subsection (k);
       (B) any amounts earned on investment of amounts in the Fund 
     under paragraph (2); and
       (C) amounts received under subsection (i)(3)(A).
       (2) Investment of amounts.--
       (A) In general.--
       (i) Authority to invest.--The Secretary of the Treasury 
     shall invest such portion of the Fund as is not, in the 
     judgment of the Secretary of the Treasury, required to meet 
     current withdrawals.
       (ii) Types of investments.--Each investment may be made 
     only in an interest-bearing obligation of the United States 
     or an obligation guaranteed as to principal and interest by 
     the United States that, as determined by the Secretary of the 
     Treasury in consultation with the Board, has a maturity 
     suitable for the Fund.
       (B) Acquisition of obligations.--For the purpose of 
     investments under subparagraph (A), obligations may be 
     acquired--
       (i) on original issue at the issue price; or
       (ii) by purchase of outstanding obligations at the market 
     price.
       (C) Sale of obligations.--Any obligation acquired by the 
     Fund may be sold by the Secretary of the Treasury at the 
     market price.
       (D) Credits to fund.--The interest on, and the proceeds 
     from the sale or redemption of, any obligations held in the 
     Fund shall be credited to and form a part of the Fund.
       (3) Transfers of amounts.--
       (A) In general.--The amounts required to be transferred to 
     the Fund under this subsection shall be transferred at least 
     monthly from the general fund of the Treasury to the Fund on 
     the basis of estimates made by the Secretary of the Treasury.

[[Page 26766]]

       (B) Adjustments.--Proper adjustment shall be made in 
     amounts subsequently transferred to the extent prior 
     estimates were in excess of or less than the amounts required 
     to be transferred.
       (h) Expenditures; Audits.--
       (1) In general.--The Secretary of the Treasury shall 
     transfer to the Program from the amounts described in 
     subsections (g)(2)(D) and (i)(3)(A) such sums as the Board 
     determines to be necessary to enable the Program to carry out 
     this section.
       (2) Limitation.--The Secretary may not transfer to the 
     Program the amounts appropriated to the Fund under subsection 
     (k).
       (3) Use of funds.--Funds transferred to the Program under 
     paragraph (1) shall be used--
       (A) to provide a living allowance for the fellows;
       (B) to defray the costs of transportation of the fellows to 
     the fellowship placement sites;
       (C) to defray the costs of appropriate insurance of the 
     fellows, the Program, and the Board;
       (D) to defray the costs of preservice and midservice 
     education and training of fellows;
       (E) to pay staff described in subsection (i);
       (F) to make end-of-service awards under subsection 
     (f)(3)(D)(iii)(II); and
       (G) for such other purposes as the Board determines to be 
     appropriate to carry out the Program.
       (4) Audit by comptroller general.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct an annual audit of the accounts of the 
     Program.
       (B) Books.--The Program shall make available to the 
     Comptroller General all books, accounts, financial records, 
     reports, files, and other papers, things, or property 
     belonging to or in use by the Program and necessary to 
     facilitate the audit.
       (C) Report to congress.--The Comptroller General shall 
     submit to the appropriate congressional committees a copy of 
     the results of each audit under subparagraph (A).
       (i) Staff; Powers of Program.--
       (1) Executive director.--
       (A) In general.--The Board shall appoint an Executive 
     Director of the Program who shall--
       (i) administer the Program; and
       (ii) carry out such other functions consistent with this 
     section as the Board shall prescribe.
       (B) Restriction.--The Executive Director may not serve as 
     Chairperson of the Board.
       (C) Compensation.--The Executive Director shall be paid at 
     a rate not to exceed the rate payable for level V of the 
     Executive Schedule under section 5316 of title 5, United 
     States Code.
       (2) Staff.--
       (A) In general.--With the approval of a majority of the 
     Board, the Executive Director may appoint and fix the pay of 
     such additional personnel as the Executive Director considers 
     necessary to carry out this section.
       (B) Compensation.--An individual appointed under 
     subparagraph (A) shall be paid at a rate not to exceed the 
     rate payable for level GS-15 of the General Schedule.
       (3) Powers.--
       (A) Gifts.--
       (i) In general.--The Program may solicit, accept, use, and 
     dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of aiding 
     or facilitating the work of the Program.
       (ii) Use of gifts.--Gifts, bequests, or devises of money 
     and proceeds from sales of other property received as gifts, 
     bequests, or devises shall--

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

       (B) Procurement of temporary and intermittent services.--To 
     carry out this section, the Program may procure temporary and 
     intermittent services in accordance with section 3109(b) of 
     title 5, United States Code, at rates for individuals that do 
     not exceed the daily equivalent of the annual rate of basic 
     pay payable for level GS-15 of the General Schedule.
       (C) Contract authority.--To carry out this section, the 
     Program may, with the approval of a majority of the members 
     of the Board, contract with and compensate Government and 
     private agencies or persons without regard to section 3709 of 
     the Revised Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--
       (i) In general.--Subject to clause (ii), the Program may 
     make such other expenditures as the Program considers 
     necessary to carry out this section.
       (ii) Prohibition.--The Program may not expend funds to 
     develop new or expanded projects at which fellows may be 
     placed.
       (j) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the Program carried 
     out during the preceding fiscal year that includes--
       (1) an analysis of the evaluations conducted under 
     subsection (f)(4) during the fiscal year; and
       (2) a statement of--
       (A) the total amount of funds attributable to gifts 
     received by the Program in the fiscal year under subsection 
     (i)(3)(A); and
       (B) the total amount of funds described in subparagraph (A) 
     that were expended to carry out the Program in the fiscal 
     year.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $18,000,000.
       (l) Effective Date.--This section takes effect on October 
     1, 2002.

     SEC. 459. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

       (a) Establishment.--The Secretary of Agriculture may 
     establish, in not more than 15 States, a pilot program to 
     increase the domestic consumption of fresh fruits and 
     vegetables.
       (b) Purpose.--The purpose of the program shall be to 
     provide funds to States to assist eligible public and private 
     sector entities with cost-share assistance to carry out 
     demonstration projects--
       (1) to increase fruit and vegetable consumption; and
       (2) to convey related health promotion messages.
       (c) Priority.--To the maximum extent practicable, the 
     Secretary shall--
       (1) establish the program in States in which the production 
     of fruits or vegetables is a significant industry, as 
     determined by the Secretary; and
       (2) base the program on strategic initiatives, including--
       (A) health promotion and education interventions;
       (B) public service and paid advertising or marketing 
     activities;
       (C) health promotion campaigns relating to locally grown 
     fruits and vegetables; and
       (D) social marketing campaigns.
       (d) Participant Eligibility.--In selecting States to 
     participate in the program, the Secretary shall take into 
     consideration, with respect to projects and activities 
     proposed to be carried out by the State under the program--
       (1) experience in carrying out similar projects or 
     activities;
       (2) innovation; and
       (3) the ability of the State--
       (A) to conduct marketing campaigns for, promote, and track 
     increases in levels of, produce consumption; and
       (B) to optimize the availability of produce through 
     distribution of produce.


       (e) Federal Share.--The Federal share of the cost of any 
     project or activity carried out using funds provided under 
     this section shall be 50 percent.
       (f) Use of Funds.--Funds made available to carry out this 
     section shall not be made available to any foreign for-profit 
     corporation.
       (g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of fiscal years 2002 through 2006.

     SEC. 460. EFFECTIVE DATE.

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

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

     SEC. 501. DIRECT LOANS.

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

     SEC. 502. FINANCING OF BRIDGE LOANS.

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

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

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

[[Page 26767]]

     to the fiscal year in which the loan is guaranteed; and
       ``(ii) reduced by the amount of any unpaid indebtedness of 
     the borrower on loans under subtitle B that are guaranteed by 
     the Secretary.''.

     SEC. 504. JOINT FINANCING ARRANGEMENTS.

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

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

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

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

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

     SEC. 507. DOWN PAYMENT LOAN PROGRAM.

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

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

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

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

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

                      Subtitle B--Operating Loans

     SEC. 511. DIRECT LOANS.

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

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

       (a) Amount of Guarantee of Loans for Tribal Operations.--
     Section 309(h) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1929(h)) is amended--
       (1) in paragraph (4), by striking ``paragraphs (5) and 
     (6)'' and inserting ``paragraphs (5), (6), and (7)''; and
       (2) by adding at the end the following:
       ``(7) Amount of guarantee of loans for tribal operations.--
     In the case of an operating loan made to a farmer or rancher 
     who is a member of an Indian tribe and whose farm or ranch is 
     within an Indian reservation (as defined in section 
     335(e)(1)(A)(ii)), the Secretary shall guarantee 95 percent 
     of the loan.''.
       (b) Waiver of Limitations.--Section 311(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1941(c)) is amended--
       (1) in paragraph (1), by striking ``paragraph (3)'' and 
     inserting ``paragraphs (3) and (4)''; and
       (2) by adding at the end the following:
       ``(4) Waivers.--
       ``(A) Tribal farm and ranch operations.--The Secretary 
     shall waive the limitation under paragraph (1)(C) or (3) for 
     a direct loan made under this subtitle to a farmer or rancher 
     who is a member of an Indian tribe and whose farm or ranch is 
     within an Indian reservation (as defined in section 
     335(e)(1)(A)(ii)) if the Secretary determines that commercial 
     credit is not generally available for such farm or ranch 
     operations.
       ``(B) Other farm and ranch operations.--On a case-by-case 
     determination not subject to administrative appeal, the 
     Secretary may grant a borrower a waiver, 1 time only for a 
     period of 2 years, of the limitation under paragraph (1)(C) 
     or (3) for a direct operating loan if the borrower 
     demonstrates to the satisfaction of the Secretary that--
       ``(i) the borrower has a viable farm or ranch operation;
       ``(ii) the borrower applied for commercial credit from at 
     least 2 commercial lenders;
       ``(iii) the borrower was unable to obtain a commercial loan 
     (including a loan guaranteed by the Secretary); and
       ``(iv) the borrower successfully has completed, or will 
     complete within 1 year, borrower training under section 359 
     (from which requirement the Secretary shall not grant a 
     waiver under section 359(f)).''.

                 Subtitle C--Administrative Provisions

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

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

     SEC. 522. DEBT SETTLEMENT.

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

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

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

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

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

     SEC. 525. ANNUAL REVIEW OF BORROWERS.

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

     SEC. 526. SIMPLIFIED LOAN APPLICATIONS.

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

     SEC. 527. INVENTORY PROPERTY.

       Section 335(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1985(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) in clause (i), by striking ``75 days'' and inserting 
     ``135 days''; and
       (ii) by adding at the end the following:
       ``(iv) Combining and dividing of property.--To the maximum 
     extent practicable, the Secretary shall maximize the 
     opportunity for beginning farmers and ranchers to purchase 
     real property acquired by the Secretary under this title by 
     combining or dividing inventory parcels of the property in 
     such manner as the Secretary determines to be appropriate.''; 
     and
       (B) in subparagraph (C)--
       (i) by striking ``75 days'' and inserting ``135 days''; and
       (ii) by striking ``75-day period'' and inserting ``135-day 
     period'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) Previous lease.--In the case of real property 
     acquired before April 4, 1996, that the Secretary leased 
     before April 4, 1996, not later than 60 days after the lease 
     expires, the Secretary shall offer to sell the property in 
     accordance with paragraph (1).''; and
       (3) in paragraph (3)--

[[Page 26768]]

       (A) in subparagraph (A), by striking ``subparagraph (B)'' 
     and inserting ``subparagraphs (B) and (C)''; and
       (B) by adding at the end the following:
       ``(C) Offer to sell or grant for farmland preservation.--
     For the purpose of farmland preservation, the Secretary 
     shall--
       ``(i) in consultation with the State Conservationist, and 
     the State technical committee established under subtitle G of 
     title XII of the Food Security Act of 1985 (16 U.S.C. 3861 et 
     seq.), of each State in which inventory property is located, 
     identify each parcel of inventory property in the State that 
     should be preserved for agricultural use; and
       ``(ii) offer to sell or grant an easement, restriction, 
     development right, or similar legal right to each parcel 
     identified under clause (i) to a State, a political 
     subdivision of a State, or a private nonprofit organization 
     separately from the underlying fee or other rights to the 
     property owned by the United States.''.

     SEC. 528. DEFINITIONS.

       (a) Qualified Beginning Farmer or Rancher.--Section 
     343(a)(11)(F) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking ``25 
     percent'' and inserting ``30 percent''.
       (b) Debt Forgiveness.--Section 343(a)(12) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1991(a)(12)) is amended by striking subparagraph (B) and 
     inserting the following:
       ``(B) Exceptions.--The term `debt forgiveness' does not 
     include--
       ``(i) consolidation, rescheduling, reamortization, or 
     deferral of a loan; or
       ``(ii) any write-down provided as part of a resolution of a 
     discrimination complaint against the Secretary.''.
       (c) Livestock.--Section 343(a) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1991(a)) (as amended by 
     section 637(a)) is amended by adding at the end the 
     following:
       ``(14) Livestock.--The term `livestock' includes horses.''.

     SEC. 529. LOAN AUTHORIZATION LEVELS.

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

     SEC. 530. INTEREST RATE REDUCTION PROGRAM.

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

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

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

     SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION 
                   REQUIREMENT.

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

     SEC. 533. ANNUAL REVIEW OF BORROWERS.

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

                        Subtitle D--Farm Credit

     SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

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

[[Page 26769]]

       (2) by striking subsection (c).

     SEC. 542. BANKS FOR COOPERATIVES.

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

     SEC. 543. INSURANCE CORPORATION PREMIUMS.

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

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

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

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

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

                     Subtitle E--General Provisions

     SEC. 551. INAPPLICABILITY OF FINALITY RULE.

       Section 281(a)(1) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 7001(a)(1)) is amended--
       (1) by striking ``This subsection'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     this subsection''; and
       (2) by adding at the end the following:
       ``(B) Agricultural credit decisions.--This subsection shall 
     not apply with respect to an agricultural credit decision 
     made by such a State, county, or area committee, or employee 
     of such a committee, under the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.).''.

     SEC. 552. TECHNICAL AMENDMENTS.

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

     SEC. 553. EFFECTIVE DATE.

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

                      TITLE VI--RURAL DEVELOPMENT

                Subtitle A--Empowerment of Rural America

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

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

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

     ``SEC. 383A. SHORT TITLE.

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

     ``SEC. 383B. PURPOSE.

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

     ``SEC. 383C. DEFINITIONS.

       ``In this subtitle:
       ``(1) Authorized private investor.--The term `authorized 
     private investor' means an individual, legal entity, or 
     affiliate or subsidiary of an individual or legal entity 
     that--
       ``(A) is eligible to receive a loan guarantee under this 
     title;
       ``(B) is eligible to receive a loan guarantee under the 
     Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.);

[[Page 26770]]

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

     ``SEC. 383D. ESTABLISHMENT.

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

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

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

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

       ``(a) Investments.--
       ``(1) In general.--
       ``(A) Types.--Subject to subparagraphs (B) and (C), the 
     Fund may--
       ``(i) make equity investments in a rural business that 
     meets--

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

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

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

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

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

       ``(ii) Waiver.--The Secretary may waive the limitation in 
     clause (i) in any case in which an investment exceeding the 
     limits specified in clause (i) is necessary to preserve prior 
     investments in the rural business.
       ``(iii) Total nonequity investments.--Except in the case of 
     a project to assist a rural cooperative, the total amount of 
     nonequity investments described in subparagraph (A)(ii) that 
     may be provided by the Fund shall not exceed 20 percent of 
     the total investments of the Fund in the project.
       ``(C) Limitation.--Notwithstanding subparagraph (B), the 
     amount of any investment by the Fund in a rural business 
     shall not exceed the aggregate amount invested in like 
     securities by other private entities in that rural business.
       ``(2) Procedures.--The Fund shall implement procedures to 
     ensure that--
       ``(A) the financing arrangements of the Fund meet the 
     Fund's primary focus of providing equity capital; and

[[Page 26771]]

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

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

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

     ``SEC. 383H. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 602. RURAL BUSINESS INVESTMENT PROGRAM.

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

            ``Subtitle H--Rural Business Investment Program

     ``SEC. 384A. DEFINITIONS.

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

       ``(I) 50 percent of funds from the National Rural 
     Cooperative and Business Equity Fund;
       ``(II) funds obtained from the business revenues (excluding 
     any governmental appropriation) of any federally chartered or 
     government-sponsored enterprise established prior to the date 
     of enactment of this subtitle;
       ``(III) funds invested by an employee welfare benefit plan 
     or pension plan; and
       ``(IV) any qualified nonprivate funds (if the investors of 
     the qualified nonprivate funds do not control, directly or 
     indirectly, the management, board of directors, general 
     partners, or members of the Rural Business Investment 
     Company).

       ``(12) Qualified nonprivate funds.--The term `qualified 
     nonprivate funds' means any--
       ``(A) funds directly or indirectly invested in any 
     applicant or Rural Business Investment Company on or before 
     the date of enactment of this subtitle, by any Federal 
     agency, other than the Department of Agriculture, under a 
     provision of law explicitly mandating the inclusion of those 
     funds in the definition of the term `private capital'; and

[[Page 26772]]

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

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

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

     ``SEC. 384B. PURPOSES.

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

     ``SEC. 384C. ESTABLISHMENT.

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

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

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

     ``SEC. 384E. DEBENTURES.

       ``(a) In General.--The Secretary may guarantee the timely 
     payment of principal and interest, as scheduled, on 
     debentures issued by any Rural Business Investment Company.
       ``(b) Terms and Conditions.--The Secretary may make 
     guarantees under this section on such terms and conditions as 
     the

[[Page 26773]]

     Secretary considers appropriate, except that the term of any 
     debenture guaranteed under this section shall not exceed 15 
     years.
       ``(c) Full Faith and Credit of the United States.--Section 
     381H(i) shall apply to any guarantee under this section.
       ``(d) Maximum Guarantee.--Under this section, the Secretary 
     may--
       ``(1) guarantee the debentures issued by a Rural Business 
     Investment Company only to the extent that the total face 
     amount of outstanding guaranteed debentures of the Rural 
     Business Investment Company does not exceed 300 percent of 
     the private capital of the Rural Business Investment Company, 
     as determined by the Secretary; and
       ``(2) provide for the use of discounted debentures.

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

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

     ``SEC. 384G. FEES.

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

     ``SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.

       ``(a) In General.--
       ``(1) Authority.--In accordance with this section, the 
     Secretary may make grants to Rural Business Investment 
     Companies and to other entities, as authorized by this 
     subtitle, to provide operational assistance to smaller 
     enterprises financed, or expected to be financed, by the 
     entities.
       ``(2) Terms.--Grants made under this subsection shall be 
     made over a multiyear period (not to exceed 10 years) under 
     such other terms as the Secretary may require.
       ``(3) Use of funds.--The proceeds of a grant made under 
     this paragraph may be used by the Rural Business Investment 
     Company receiving the grant only to--
       ``(A) provide operational assistance in connection with an 
     equity investment (made with capital raised after the 
     effective date of this subtitle) in a business located in a 
     rural area; or
       ``(B) pay operational expenses of the Rural Business 
     Investment Company.
       ``(4) Submission of plans.--A Rural Business Investment 
     Company shall be eligible for a grant under this section only 
     if the Rural Business Investment Company submits to the 
     Secretary, in such form and manner as the Secretary may 
     require, a plan for use of the grant.
       ``(5) Grant amount.--
       ``(A) Rural business investment companies.--The amount of a 
     grant made under this subsection to a Rural Business 
     Investment Company shall be equal to the lesser of--
       ``(i) 50 percent of the amount of resources (in cash or in 
     kind) raised by the Rural Business Investment Company; or
       ``(ii) $1,000,000.
       ``(B) Other entities.--The amount of a grant made under 
     this subsection to any entity other than a Rural Business 
     Investment Company shall be equal to the resources (in cash 
     or in kind) raised by the entity in accordance with the 
     requirements applicable to Rural Business Investment 
     Companies under this subtitle.
       ``(b) Supplemental Grants.--
       ``(1) In general.--The Secretary may make supplemental 
     grants to Rural Business Investment Companies and to other 
     entities, as authorized by this subtitle under such terms as 
     the Secretary may require, to provide additional operational 
     assistance to smaller enterprises financed, or expected to be 
     financed, by the Rural Business Investment Companies and 
     other entities.
       ``(2) Matching requirement.--The Secretary may require, as 
     a condition of any supplemental grant made under this 
     subsection, that the Rural Business Investment Company or 
     entity receiving the grant provide from resources (in cash or 
     in kind), other than resources provided by the Secretary, a 
     matching contribution equal to the amount of the supplemental 
     grant.

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

       ``(a) Organization.--For the purpose of this subtitle, a 
     Rural Business Investment Company shall--
       ``(1) be an incorporated body, a limited liability company, 
     or a limited partnership organized and chartered or otherwise 
     existing under State law solely for the purpose of performing 
     the functions and conducting the activities authorized by 
     this subtitle;
       ``(2)(A) if incorporated, have succession for a period of 
     not less than 30 years unless earlier dissolved by the 
     shareholders of the Rural Business Investment Company; and
       ``(B) if a limited partnership or a limited liability 
     company, have succession for a period of not less than 10 
     years; and
       ``(3) possess the powers reasonably necessary to perform 
     the functions and conduct the activities.
       ``(b) Articles.--The articles of any Rural Business 
     Investment Company--
       ``(1) shall specify in general terms--
       ``(A) the purposes for which the Rural Business Investment 
     Company is formed;
       ``(B) the name of the Rural Business Investment Company;
       ``(C) the area or areas in which the operations of the 
     Rural Business Investment Company are to be carried out;
       ``(D) the place where the principal office of the Rural 
     Business Investment Company is to be located; and
       ``(E) the amount and classes of the shares of capital stock 
     of the Rural Business Investment Company;
       ``(2) may contain any other provisions consistent with this 
     subtitle that the Rural Business Investment Company may 
     determine appropriate to adopt for the regulation of the 
     business of the Rural Business Investment Company and the 
     conduct of the affairs of the Rural Business Investment 
     Company; and
       ``(3) shall be subject to the approval of the Secretary.
       ``(c) Capital Requirements.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     private capital of each Rural Business Investment Company 
     shall be not less than--
       ``(A) $5,000,000; or
       ``(B) $10,000,000, with respect to each Rural Business 
     Investment Company authorized or

[[Page 26774]]

     seeking authority to issue participating securities to be 
     purchased or guaranteed by the Secretary under this subtitle.
       ``(2) Exception.--The Secretary may, in the discretion of 
     the Secretary and based on a showing of special circumstances 
     and good cause, permit the private capital of a Rural 
     Business Investment Company described in paragraph (1)(B) to 
     be less than $10,000,000, but not less than $5,000,000, if 
     the Secretary determines that the action would not create or 
     otherwise contribute to an unreasonable risk of default or 
     loss to the Federal Government.
       ``(3) Adequacy.--In addition to the requirements of 
     paragraph (1), the Secretary shall--
       ``(A) determine whether the private capital of each Rural 
     Business Investment Company is adequate to ensure a 
     reasonable prospect that the Rural Business Investment 
     Company will be operated soundly and profitably, and managed 
     actively and prudently in accordance with the articles of the 
     Rural Business Investment Company;
       ``(B) determine that the Rural Business Investment Company 
     will be able to comply with the requirements of this 
     subtitle; and
       ``(C) require that at least 75 percent of the capital of 
     each Rural Business Investment Company is invested in rural 
     business concerns.
         ``(d) Diversification of Ownership.--The Secretary shall 
     ensure that the management of each Rural Business Investment 
     Company licensed after the date of enactment of this subtitle 
     is sufficiently diversified from and unaffiliated with the 
     ownership of the Rural Business Investment Company so as to 
     ensure independence and objectivity in the financial 
     management and oversight of the investments and operations of 
     the Rural Business Investment Company.

     ``SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.

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

     ``SEC. 384K. REPORTING REQUIREMENT.

       ``Each Rural Business Investment Company that participates 
     in the program established under this subtitle shall provide 
     to the Secretary such information as the Secretary may 
     require, including--
       ``(1) information relating to the measurement criteria that 
     the Rural Business Investment Company proposed in the program 
     application of the Rural Business Investment Company; and
       ``(2) in each case in which the Rural Business Investment 
     Company under this subtitle makes an investment in, or a loan 
     or grant to, a business that is not located in a rural area, 
     a report on the number and percentage of employees of the 
     business who reside in those areas.

     ``SEC. 384L. EXAMINATIONS.

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

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

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

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

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

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

       ``(a) Parties Deemed To Commit a Violation.--Whenever any 
     Rural Business Investment Company violates this subtitle 
     (including any rule, regulation, order, or participation 
     agreement under this subtitle), by reason of the failure of 
     the Rural Business Investment Company to comply with this 
     subtitle or by reason of its engaging in any act or practice 
     that constitutes or will constitute a violation of this 
     subtitle, the violation shall also be deemed to be a 
     violation and an unlawful act committed by any person that, 
     directly or indirectly, authorizes, orders, participates in, 
     causes, brings about, counsels, aids, or abets in the 
     commission of any acts, practices, or transactions that 
     constitute or will constitute, in whole or in part, the 
     violation.
       ``(b) Fiduciary Duties.--It shall be unlawful for any 
     officer, director, employee, agent, or other participant in 
     the management or conduct of the affairs of a Rural Business 
     Investment Company to engage in any act or practice, or to 
     omit any act or practice, in breach of the fiduciary duty of 
     the officer, director, employee, agent, or participant if, as 
     a result of the act or practice, the Rural Business 
     Investment Company suffers or is in imminent danger of 
     suffering financial loss or other damage.
       ``(c) Unlawful Acts.--Except with the written consent of 
     the Secretary, it shall be unlawful--

[[Page 26775]]

       ``(1) for any person to take office as an officer, 
     director, or employee of any Rural Business Investment 
     Company, or to become an agent or participant in the conduct 
     of the affairs or management of a Rural Business Investment 
     Company, if the person--
       ``(A) has been convicted of a felony, or any other criminal 
     offense involving dishonesty or breach of trust; or
       ``(B) has been found civilly liable in damages, or has been 
     permanently or temporarily enjoined by an order, judgment, or 
     decree of a court of competent jurisdiction, by reason of any 
     act or practice involving fraud, or breach of trust; and
       ``(2) for any person to continue to serve in any of the 
     capacities described in paragraph (1), if--
       ``(A) the person is convicted of a felony, or any other 
     criminal offense involving dishonesty or breach of trust; or
       ``(B) the person is found civilly liable in damages, or is 
     permanently or temporarily enjoined by an order, judgment, or 
     decree of a court of competent jurisdiction, by reason of any 
     act or practice involving fraud or breach of trust.

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

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

     ``SEC. 384Q. CONTRACTING OF FUNCTIONS.

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

     ``SEC. 384R. REGULATIONS.

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

     ``SEC. 384S. FUNDING.

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

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

       (a) Definition of Application.--In this section, the term 
     ``application'' does not include an application for a loan, 
     loan guarantee, or grant that, as of the date of enactment of 
     this Act, is in the preapplication phase of consideration 
     under regulations of the Secretary of Agriculture in effect 
     on the date of enactment of this Act.
       (b) Account.--There is established in the Treasury of the 
     United States an account to be known as the ``Rural America 
     Infrastructure Development Account'' (referred to in this 
     section as the ``Account'') to fund rural development loans, 
     loan guarantees, and grants described in subsection (d) that 
     are pending on the date of enactment of this Act.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated such sums as are necessary to carry out 
     this section.
       (d) Use of Funds.--
       (1) Eligible programs.--Subject to paragraph (2), the 
     Secretary shall use the funds in the Account to provide funds 
     for applications that are pending on the date of enactment of 
     this Act for--
       (A) community facility direct loans under section 306(a)(1) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1926(a)(1));
       (B) community facility grants under paragraph (19), (20), 
     or (21) of section 306(a) of that Act (7 U.S.C. 1926(a));
       (C) water or waste disposal grants or direct loans under 
     paragraph (1) or (2) of section 306(a) of that Act (7 U.S.C. 
     1926(a));
       (D) rural water or wastewater technical assistance and 
     training grants under section 306(a)(14) of that Act (7 
     U.S.C. 1926(a)(14));
       (E) emergency community water assistance grants under 
     section 306A of that Act (7 U.S.C. 1926a);
       (F) business and industry guaranteed loans authorized under 
     section 310B(a)(1)(A) of that Act (7 U.S.C. 1932(a)(1)(A)); 
     and
       (G) solid waste management grants under section 310B(b) of 
     that Act (7 U.S.C. 1932(b)).
       (2) Limitations.--
       (A) Appropriated amounts.--Funds in the Account shall be 
     available to the Secretary to provide funds for pending 
     applications for loans, loan guarantees, and grants described 
     in paragraph (1) only to the extent that funds for the loans, 
     loan guarantees, and grants appropriated in the annual 
     appropriations Act for fiscal year 2002 have been exhausted.
       (B) Program requirements.--The Secretary may use the 
     Account to provide funds for a pending application for a 
     loan, loan guarantee, or grant described in paragraph (1) 
     only if the Secretary processes, reviews, and approves the 
     application in accordance with regulations in effect on the 
     date of enactment of this Act.

     SEC. 604. RURAL ENDOWMENT PROGRAM.

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

                 ``Subtitle I--Rural Endowment Program

     ``SEC. 385A. PURPOSE.

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

     ``SEC. 385B. DEFINITIONS.

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

     ``SEC. 385C. RURAL ENDOWMENT PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary may establish a program, 
     to be known as the `Rural Endowment Program', to provide 
     approved program entities with assistance in developing and 
     implementing comprehensive community development strategies 
     for eligible rural areas.
       ``(2) Purposes.--The purposes of the Program are--
       ``(A) to enhance the ability of an eligible rural area to 
     engage in comprehensive community development;
       ``(B) to leverage private and public resources for the 
     benefit of community development efforts in eligible rural 
     areas;
       ``(C) to make available staff of Federal agencies to 
     directly assist the community development efforts of an 
     approved program entity or eligible rural area; and
       ``(D) to strengthen the asset base of an eligible rural 
     area to further long-term, ongoing community development.
       ``(b) Applications.--
       ``(1) In general.--To receive an endowment grant under the 
     Program, the eligible entity shall submit an application at 
     such time, in such form, and containing such information as 
     the Secretary may require.
       ``(2) Regional applications.--
       ``(A) In general.--Where appropriate, the Secretary shall 
     encourage regional applications from program entities serving 
     more than 1 eligible rural area.

[[Page 26776]]

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

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

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

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

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

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

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

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

       ``(ii) Loss reserve account.--If all disbursed funds 
     available under a grant are expended in accordance with 
     clause (i) and the grant recipient has no expected losses to

[[Page 26777]]

     cover for a fiscal year, the recipient may use funds in the 
     loss reserve account described in clause (i)(II) for program-
     related investments described in clause (i)(III) for which no 
     reserve for losses is required.
       ``(g) Federal Agency Assistance.--Under the Program, the 
     Secretary shall provide and coordinate technical assistance 
     for grant recipients by designated field staff of Federal 
     agencies.
       ``(h) Private Technical Assistance.--
       ``(1) In general.--Under the Program, the Secretary may 
     make grants to qualified intermediaries to provide technical 
     assistance and capacity building to approved program entities 
     under the Program.
       ``(2) Duties.--A qualified intermediary that receives a 
     grant under this subsection shall--
       ``(A) provide assistance to approved program entities in 
     developing, coordinating, and overseeing investment strategy;
       ``(B) provide technical assistance in all aspects of 
     planning, developing, and managing the Program; and
       ``(C) facilitate Federal and private sector involvement in 
     rural community development.
       ``(3) Eligibility.--To be considered a qualified 
     intermediary under this subsection, an intermediary shall--
       ``(A) be a private, nonprofit community development 
     organization;
       ``(B) have expertise in Federal or private rural community 
     development policy or programs; and
       ``(C) have experience in providing technical assistance, 
     planning, and capacity building assistance to rural 
     communities and nonprofit entities in eligible rural areas.
       ``(4) Maximum amount of grants.--A qualified intermediary 
     may receive a grant under this subsection of not more than 
     $100,000.
       ``(5) Funding.--Of the amounts made available under section 
     385D, the Secretary may use to carry out this subsection not 
     more than $2,000,000 for each of not more than 2 fiscal 
     years.

     ``SEC. 385D. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this subtitle for each of fiscal years 
     2002 through 2006.''.

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

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

                   ``TITLE VI--RURAL BROADBAND ACCESS

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

       ``(a) Purpose.--The purpose of this section is to provide 
     grants, loans, and loan guarantees to provide funds for the 
     costs of the construction, improvement, and acquisition of 
     facilities and equipment for broadband service in eligible 
     rural communities.
       ``(b) Definitions.--In this section:
       ``(1) Broadband service.--The term `broadband service' 
     means any technology identified by the Secretary as having 
     the capacity to transmit data to enable a subscriber to the 
     service to originate and receive high-quality voice, data, 
     graphics, or video.
       ``(2) Eligible rural community.--The term `eligible rural 
     community' means any incorporated or unincorporated place 
     that has not more than 20,000 inhabitants, based on the most 
     recent available population statistics of the Bureau of the 
     Census.
       ``(c) Grants.--The Secretary shall make grants to eligible 
     entities described in subsection (e) to provide funds for the 
     construction, improvement, or acquisition of facilities and 
     equipment for the provision of broadband service in eligible 
     rural communities.
       ``(d) Loans and Loan Guarantees.--The Secretary shall make 
     or guarantee loans to eligible entities described in 
     subsection (e) to provide funds for the construction, 
     improvement, or acquisition of facilities and equipment for 
     the provision of broadband service in eligible rural 
     communities.
       ``(e) Eligible Entities.--To be eligible to obtain a grant 
     under this section, an entity must--
       ``(1) be eligible to obtain a loan or loan guarantee to 
     furnish, improve, or extend a rural telecommunications 
     service under this Act; and
       ``(2) submit to the Secretary a proposal for a project that 
     meets the requirements of this section.
       ``(f) Broadband Service.--The Secretary shall, from time to 
     time as advances in technology warrant, review and recommend 
     modifications of rate-of-data transmission criteria for 
     purposes of the identification of broadband service 
     technologies under subsection (b)(1).
       ``(g) Technological Neutrality.--For purposes of 
     determining whether or not to make a grant, loan, or loan 
     guarantee for a project under this section, the Secretary 
     shall not take into consideration the type of technology 
     proposed to be used under the project.
       ``(h) Terms and Conditions for Loans and Loan Guarantees.--
     A loan or loan guarantee under subsection (d) shall--
       ``(1) be made available in accordance with the requirements 
     of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et 
     seq.);
       ``(2) bear interest at an annual rate of, as determined by 
     the Secretary--
       ``(A) 4 percent per annum; or
       ``(B) the current applicable market rate; and
       ``(3) have a term not to exceed the useful life of the 
     assets constructed, improved, or acquired with the proceeds 
     of the loan or extension of credit.
       ``(i) Use of Loan Proceeds to Refinance Loans for 
     Deployment of Broadband Service.--Notwithstanding any other 
     provision of this Act, the proceeds of any loan made by the 
     Secretary under this Act may be used by the recipient of the 
     loan for the purpose of refinancing an outstanding obligation 
     of the recipient on another telecommunications loan made 
     under this Act if the use of the proceeds for that purpose 
     will further the construction, improvement, or acquisition of 
     facilities and equipment for the provision of broadband 
     service in eligible rural communities.
       ``(j) Funding.--
       ``(1) In general.--Not later than 30 days after the date of 
     enactment of this title, on October 1, 2002, and on each 
     October 1 thereafter through October 1, 2005, out of any 
     funds in the Treasury not otherwise appropriated, the 
     Secretary of the Treasury shall transfer to the Secretary of 
     Agriculture to carry out this section $100,000,000, to remain 
     available until expended.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.
       ``(k) Termination of authority.--
       ``(1) In general.--No grant, loan, or loan guarantee may be 
     made under this section after September 30, 2006.
       ``(2) Effect on validity of grant, loan, or loan 
     guarantee.--Notwithstanding paragraph (1), any grant, loan, 
     or loan guarantee made under this section before the date 
     specified in paragraph (1) shall be valid.''.

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

       Section 231 of the Agricultural Risk Protection Act of 2000 
     (7 U.S.C. 1621 note; Public Law 106-224) is amended--
       (1) by redesignating subsections (b) through (d) as 
     subsections (c) through (e), respectively;
       (2) by striking subsection (a) and inserting the following:
       ``(a) Definition of Value-Added Agricultural Product.--The 
     term `value-added agricultural product' means any 
     agricultural commodity or product that--
       ``(1)(A) has undergone a change in physical state; or
       ``(B) was produced in a manner that enhances the value of 
     the agricultural commodity or product, as demonstrated 
     through a business plan that shows the enhanced value, as 
     determined by the Secretary; and
       ``(2) as a result of the change in physical state or the 
     manner in which the agricultural commodity or product was 
     produced--
       ``(A) the customer base for the agricultural commodity or 
     product has been expanded; and
       ``(B) a greater portion of the revenue derived from the 
     processing of the agricultural commodity or product is 
     available to the producer of the commodity or product.
       ``(b) Grant Program.--
       ``(1) Purposes.--The purposes of this subsection are--
       ``(A) to increase the share of the food and agricultural 
     system profit received by agricultural producers;
       ``(B) to increase the number and quality of rural self-
     employment opportunities in agriculture and agriculturally-
     related businesses and the number and quality of jobs in 
     agriculturally-related businesses;
       ``(C) to help maintain a diversity of size in farms and 
     ranches by stabilizing the number of small and mid-sized 
     farms;
       ``(D) to increase the diversity of food and other 
     agricultural products available to consumers, including 
     nontraditional crops and products and products grown or 
     raised in a manner that enhances the value of the products to 
     the public; and
       ``(E) to conserve and enhance the quality of land, water, 
     and energy resources, wildlife habitat, and other landscape 
     values and amenities in rural areas.
       ``(2) Grants.--From amounts made available under paragraph 
     (6), the Secretary shall make award competitive grants--
       ``(A) to an eligible independent producer (as determined by 
     the Secretary) of a value-added agricultural product to 
     assist the producer--
       ``(i) to develop a business plan for viable marketing 
     opportunities for the value-added agricultural product; or
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities for the producer; and
       ``(B) to an eligible nonprofit entity (as determined by the 
     Secretary) to assist the entity--
       ``(i) to develop a business plan for viable marketing 
     opportunities in emerging markets for a value-added 
     agricultural product; or
       ``(ii) to develop strategies that are intended to create 
     marketing opportunities in emerging markets for the value-
     added agricultural product.

[[Page 26778]]

       ``(3) Amount of grant.--
       ``(A) In general.--The total amount provided under this 
     subsection to a grant recipient may not exceed $500,000.
       ``(B) Priority.--The Secretary shall give priority to grant 
     proposals for less than $200,000 submitted under this 
     subsection.
       ``(4) Grantee strategies.--A grantee under paragraph (2) 
     shall use the grant--
       ``(A) to develop a business plan or perform a feasibility 
     study to establish a viable marketing opportunity for a 
     value-added agricultural product; or
       ``(B) to provide capital to establish alliances or business 
     ventures that allow the producer of the value-added 
     agricultural product to better compete in domestic or 
     international markets.
       ``(5) Grants for marketing or processing certified organic 
     agricultural products.--
       ``(A) In general.--Out of any amount that is made available 
     to the Secretary for a fiscal year under paragraph (2), the 
     Secretary shall use not less than 5 percent of the amount for 
     grants to assist producers of certified organic agricultural 
     products in post-farm marketing or processing of the products 
     through a business or cooperative ventures that--
       ``(i) expand the customer base of the certified organic 
     agricultural products; and
       ``(ii) increase the portion of product revenue available to 
     the producers.
       ``(B) Certified organic agricultural product.--For the 
     purposes of this paragraph, a certified organic agricultural 
     product does not have to meet the requirements of the 
     definition of `value-added agricultural product' under 
     subsection (a).
       ``(C) Insufficient applications.--If, for any fiscal year, 
     the Secretary receives an insufficient quantity of 
     applications for grants described in subparagraph (A) to use 
     the funds reserved under subparagraph (A), the Secretary may 
     use the excess reserved funds to make grants for any other 
     purpose authorized under this subsection.
       ``(6) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $75,000,000 
     for each of fiscal years 2002 through 2006.'';
       (3) in subsection (c)(1) (as redesignated)--
       (A) by striking ``subsection (a)(2)'' and inserting 
     ``subsection (b)(2)'';
       (B) by striking ``$5,000,000'' and inserting ``7.5 
     percent''; and
       (C) by striking ``subsection (a)'' and inserting 
     ``subsection (b)''; and
       (4) in subsection (d) (as redesignated), by striking 
     ``subsections (a) and (b)'' and inserting ``subsections (b) 
     and (c)''.

     SEC. 607. NATIONAL RURAL DEVELOPMENT INFORMATION 
                   CLEARINGHOUSE.

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

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

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

           Subtitle B--National Rural Development Partnership

     SEC. 611. SHORT TITLE.

       This subtitle may be cited as the ``National Rural 
     Development Partnership Act of 2001''.

     SEC. 612. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

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

     ``SEC. 377. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       ``(a) Definitions.--In this section:
       ``(1) Agency with rural responsibilities.--The term `agency 
     with rural responsibilities' means any executive agency (as 
     defined in section 105 of title 5, United States Code) that--
       ``(A) implements Federal law targeted at rural areas, 
     including--
       ``(i) the Act of April 24, 1950 (commonly known as the 
     `Granger-Thye Act') (64 Stat. 82, chapter 9);
       ``(ii) the Intergovernmental Cooperation Act of 1968 (82 
     Stat. 1098);
       ``(iii) section 41742 of title 49, United States Code;
       ``(iv) the Rural Development Act of 1972 (86 Stat. 657);
       ``(v) the Rural Development Policy Act of 1980 (94 Stat. 
     1171);
       ``(vi) the Rural Electrification Act of 1936 (7 U.S.C. 901 
     et seq.);
       ``(vii) amendments made to section 334 of the Public Health 
     Service Act (42 U.S.C. 254g) by the Rural Health Clinics Act 
     of 1983 (97 Stat. 1345); and
       ``(viii) the Rural Housing Amendments of 1983 (97 Stat. 
     1240) and the amendments made by the Rural Housing Amendments 
     of 1983 to title V of the Housing Act of 1949 (42 U.S.C. 1471 
     et seq.); or
       ``(B) administers a program that has a significant impact 
     on rural areas, including--
       ``(i) the Appalachian Regional Commission;
       ``(ii) the Department of Agriculture;
       ``(iii) the Department of Commerce;
       ``(iv) the Department of Defense;
       ``(v) the Department of Education;
       ``(vi) the Department of Energy;
       ``(vii) the Department of Health and Human Services;
       ``(viii) the Department of Housing and Urban Development;
       ``(ix) the Department of the Interior;
       ``(x) the Department of Justice;
       ``(xi) the Department of Labor;
       ``(xii) the Department of Transportation;
       ``(xiii) the Department of the Treasury;
       ``(xiv) the Department of Veterans Affairs;
       ``(xv) the Environmental Protection Agency;
       ``(xvi) the Federal Emergency Management Administration;
       ``(xvii) the Small Business Administration;
       ``(xviii) the Social Security Administration;
       ``(xix) the Federal Reserve System;
       ``(xx) the United States Postal Service;
       ``(xxi) the Corporation for National Service;
       ``(xxii) the National Endowment for the Arts and the 
     National Endowment for the Humanities; and
       ``(xxiii) other agencies, commissions, and corporations.
       ``(2) Coordinating committee.--The term `Coordinating 
     Committee' means the National Rural Development Coordinating 
     Committee established by subsection (c).
       ``(3) Partnership.--The term `Partnership' means the 
     National Rural Development Partnership continued by 
     subsection (b).
       ``(4) State rural development council.--The term `State 
     rural development council' means a State rural development 
     council that meets the requirements of subsection (d).
       ``(b) Partnership.--
       ``(1) In general.--The Secretary shall continue the 
     National Rural Development Partnership composed of--
       ``(A) the Coordinating Committee; and
       ``(B) State rural development councils.
       ``(2) Purposes.--The purposes of the Partnership are--
       ``(A) to empower and build the capacity of States and rural 
     communities within States to design unique responses to their 
     own special rural development needs, with local 
     determinations of progress and selection of projects and 
     activities;
       ``(B) to encourage participants to be flexible and 
     innovative in establishing new partnerships and trying fresh, 
     new approaches to rural development issues, with responses to 
     rural development that use different approaches to fit 
     different situations; and

[[Page 26779]]

       ``(C) to encourage all partners in the Partnership 
     (Federal, State, local, and tribal governments, the private 
     sector, and nonprofit organizations) to be fully engaged and 
     share equally in decisions.
       ``(3) Governing panel.--
       ``(A) In general.--A panel consisting of representatives of 
     the Coordinating Committee and State rural development 
     councils shall be established to lead and coordinate the 
     strategic operation, policies, and practices of the 
     Partnership.
       ``(B) Annual reports.--In conjunction with the Coordinating 
     Committee and State rural development councils, the panel 
     shall prepare and submit to Congress an annual report on the 
     activities of the Partnership.
       ``(4) Role of federal government.--The role of the Federal 
     Government in the Partnership shall be that of a partner and 
     facilitator, with Federal agencies authorized--
       ``(A) to cooperate with States to implement the 
     Partnership;
       ``(B) to provide States with the technical and 
     administrative support necessary to plan and implement 
     tailored rural development strategies to meet local needs;
       ``(C) to ensure that the head of each agency referred to in 
     subsection (a)(1)(B) designates a senior-level agency 
     official to represent the agency on the Coordinating 
     Committee and directs appropriate field staff to participate 
     fully with the State rural development council within the 
     jurisdiction of the field staff; and
       ``(D) to enter into cooperative agreements with, and to 
     provide grants and other assistance to, State rural 
     development councils.
       ``(5) Role of private and nonprofit sector organizations.--
     Private and nonprofit sector organizations are encouraged--
       ``(A) to act as full partners in the Partnership and State 
     rural development councils; and
       ``(B) to cooperate with participating government 
     organizations in developing innovative approaches to the 
     solution of rural development problems.
       ``(c) National Rural Development Coordinating Committee.--
       ``(1) Establishment.--The Secretary shall establish a 
     National Rural Development Coordinating Committee.
       ``(2) Composition.--The Coordinating Committee shall be 
     composed of--
       ``(A) 1 representative of each agency with rural 
     responsibilities that elects to participate in the 
     Coordinating Committee; and
       ``(B) representatives, approved by the Secretary, of--
       ``(i) national associations of State, regional, local, and 
     tribal governments and intergovernmental and 
     multijurisdictional agencies and organizations;
       ``(ii) national public interest groups;
       ``(iii) other national nonprofit organizations that elect 
     to participate in the activities of the Coordinating 
     Committee; and
       ``(iv) the private sector.
       ``(3) Duties.--The Coordinating Committee shall--
       ``(A) provide support for the work of the State rural 
     development councils;
       ``(B) facilitate coordination among Federal programs and 
     activities, and with State, local, tribal, and private 
     programs and activities, affecting rural development;
       ``(C) enhance the effectiveness, responsiveness, and 
     delivery of Federal programs in rural areas;
       ``(D) gather and provide to Federal authorities information 
     and input for the development and implementation of Federal 
     programs impacting rural economic and community development;
       ``(E) notwithstanding any other provision of law, review 
     and comment on policies, regulations, and proposed 
     legislation that affect or would affect rural areas;
       ``(F) provide technical assistance to State rural 
     development councils for the implementation of Federal 
     programs;
       ``(G) notwithstanding any other provision of law, develop 
     and facilitate strategies to reduce or eliminate 
     administrative and regulatory impediments; and
       ``(H) require each State receiving funds under this section 
     to submit an annual report on the use of the funds by the 
     State, including a description of strategic plans, goals, 
     performance measures, and outcomes for the State rural 
     development council of the State.
       ``(4) Election not to participate.--An agency with rural 
     responsibilities that elects not to participate in the 
     Partnership and the Coordinating Committee shall submit to 
     Congress a report that describes--
       ``(A) how the programmatic responsibilities of the Federal 
     agency that target or have an impact on rural areas are 
     better achieved without participation by the agency in the 
     Partnership; and
       ``(B) a more effective means of partnership-building and 
     collaboration to achieve the programmatic responsibilities of 
     the agency.
       ``(d) State Rural Development Councils.--
       ``(1) Establishment.--Notwithstanding chapter 63 of title 
     31, United States Code, each State may elect to participate 
     in the Partnership by entering into an agreement with the 
     Secretary to establish a State rural development council.
       ``(2) State diversity.--Each State rural development 
     council shall--
       ``(A) have a nonpartisan membership that is broad and 
     representative of the economic, social, and political 
     diversity of the State; and
       ``(B) carry out programs and activities in a manner that 
     reflects the diversity of the State.
       ``(3) Duties.--A State rural development council shall--
       ``(A) facilitate collaboration among Federal, State, local, 
     and tribal governments and the private and nonprofit sectors 
     in the planning and implementation of programs and policies 
     that target or have an impact on rural areas of the State;
       ``(B) enhance the effectiveness, responsiveness, and 
     delivery of Federal and State programs in rural areas of the 
     State;
       ``(C) gather and provide to the Coordinating Committee and 
     other appropriate organizations information on the condition 
     of rural areas in the State;
       ``(D) monitor and report on policies and programs that 
     address, or fail to address, the needs of the rural areas of 
     the State;
       ``(E) provide comments to the Coordinating Committee and 
     other appropriate organizations on policies, regulations, and 
     proposed legislation that affect or would affect the rural 
     areas of the State;
       ``(F) notwithstanding any other provision of law, in 
     conjunction with the Coordinating Committee, facilitate the 
     development of strategies to reduce or eliminate conflicting 
     or duplicative administrative or regulatory requirements of 
     Federal, State, local, and tribal governments;
       ``(G) use grant or cooperative agreement funds provided by 
     the Partnership under an agreement entered into under 
     paragraph (1) to--
       ``(i) retain an Executive Director and such support staff 
     as are necessary to facilitate and implement the directives 
     of the State rural development council; and
       ``(ii) pay expenses associated with carrying out 
     subparagraphs (A) through (F); and
       ``(H)(i) provide to the Coordinating Committee an annual 
     plan with goals and performance measures; and
       ``(ii) submit to the Coordinating Committee an annual 
     report on the progress of the State rural development council 
     in meeting the goals and measures.
       ``(4) Authorities.--A State rural development council may--
       ``(A) solicit funds to supplement and match funds provided 
     under paragraph (3)(G); and
       ``(B) engage in activities, in addition to those specified 
     in paragraph (3), appropriate to accomplish the purposes for 
     which the State rural development council is established.
       ``(5) Comments or recommendations.--A State rural 
     development council may provide comments and recommendations 
     to an agency with rural responsibilities related to the 
     activities of the State rural development council within the 
     State.
       ``(6) Actions of state rural development council members.--
     When carrying out a program or activity authorized by a State 
     rural development council or this subtitle, a member of the 
     council shall be regarded as a full-time employee of the 
     Federal Government for purposes of chapter 171 of title 28, 
     United States Code, and the Federal Advisory Committee Act (5 
     U.S.C. App.).
       ``(7) Federal participation in state rural development 
     councils.--
       ``(A) In general.--The State Director for Rural Development 
     of a State, other employees of the Department of Agriculture, 
     and employees of other Federal agencies that elect to 
     participate in the Partnership shall fully participate in the 
     governance and operations of State rural development councils 
     on an equal basis with other members of the State rural 
     development councils.
       ``(B) Conflicts.--A Federal employee who participates in a 
     State rural development council shall not participate in the 
     making of any council decision if the agency represented by 
     the Federal employee has any financial or other interest in 
     the outcome of the decision.
       ``(C) Federal guidance.--The Office of Government Ethics, 
     in consultation with the Attorney General, shall issue 
     guidance to all Federal employees that participate in State 
     rural development councils that describes specific decisions 
     that--
       ``(i) would constitute a conflict of interest for the 
     Federal employee; and
       ``(ii) from which the Federal employee must recuse himself 
     or herself.
       ``(e) Administrative Support of the Partnership.--
       ``(1) Detail of employees.--
       ``(A) In general.--In order to provide experience in 
     intergovernmental collaboration, the head of an agency with 
     rural responsibilities that elects to participate in the 
     Partnership may, and is encouraged to, detail an employee of 
     the agency with rural responsibilities to the Partnership 
     without reimbursement for a period of up to 12 months.
       ``(B) Civil service status.--The detail shall be without 
     interruption or loss of civil service status or privilege.
       ``(2) Additional support.--The Secretary shall provide for 
     any additional support staff to the Partnership as the 
     Secretary determines to be necessary to carry out the duties 
     of the Partnership.

[[Page 26780]]

       ``(f) Funding.--
       ``(1) Authorization of appropriations.--
       ``(A) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       ``(B) Amount of financial assistance.--In providing 
     financial assistance to State rural development councils, the 
     Secretary and heads of other Federal agencies shall provide 
     assistance that, to the maximum extent practicable, is--
       ``(i) uniform in amount; and
       ``(ii) targeted to newly created State rural development 
     councils.
       ``(C) Federal share.--The Secretary shall develop a plan to 
     decrease, over time, the Federal share of the cost of the 
     core operations of State rural development councils.
       ``(2) Federal agencies.--
       ``(A) In general.--Notwithstanding any other provision of 
     law limiting the ability of an agency to provide funds to the 
     Partnership with other agencies, in order to carry out the 
     purposes described in subsection (b)(2), the Partnership 
     shall be eligible to receive grants, gifts, contributions, or 
     technical assistance from, or enter into contracts with, any 
     Federal agency.
       ``(B) Assistance.--Federal agencies are encouraged to use 
     funds made available for programs that target or have an 
     impact on rural areas to provide assistance to, and enter 
     into contracts with, the Partnership, as described in 
     subparagraph (A).
       ``(3) Contributions.--The Partnership may accept private 
     contributions.
       ``(4) Federal financial support for state rural development 
     councils.--Notwithstanding any other provision of law, a 
     Federal agency may use funds made available under paragraph 
     (1) or (2) to enter into a cooperative agreement, contract, 
     or other agreement with a State rural development council to 
     support the core operations of the State rural development 
     council, regardless of the legal form of organization of the 
     State rural development council.
       ``(g) Matching Requirements for State Rural Development 
     Councils.--
       ``(1) In general.--Except as provided in paragraph (2), a 
     State rural development council shall provide matching funds, 
     or in-kind goods or services, to support the activities of 
     the State rural development council in an amount that is not 
     less than 33 percent of the amount of Federal funds received 
     under an agreement under subsection (d)(1).
       ``(2) Exceptions to matching requirement for certain 
     federal funds.--Paragraph (1) shall not apply to funds, 
     grants, funds provided under contracts or cooperative 
     agreements, gifts, contributions, or technical assistance 
     received by a State rural development council from a Federal 
     agency that are used--
       ``(A) to support 1 or more specific program or project 
     activities; or
       ``(B) to reimburse the State rural development council for 
     services provided to the Federal agency providing the funds, 
     grants, funds provided under contracts or cooperative 
     agreements, gifts, contributions, or technical assistance.
       ``(h) Termination.--The authority provided under this 
     section shall terminate on the date that is 5 years after the 
     date of enactment of this section.''.

        Subtitle C--Consolidated Farm and Rural Development Act

     SEC. 621. WATER OR WASTE DISPOSAL GRANTS.

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

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

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

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

       ``(iv) Term.--The term of a loan made to an eligible 
     borrower under this subparagraph shall not exceed 10 years.
       ``(v) Administration.--The Secretary shall limit the amount 
     of grant funds that may be used by a grant recipient for 
     administrative costs incurred under this subparagraph.
       ``(vi) Authorization of appropriations.--There is 
     authorized to be appropriated to carry out this subparagraph 
     $30,000,000 for each of fiscal years 2002 through 2006.''.

     SEC. 622. RURAL BUSINESS OPPORTUNITY GRANTS.

       Section 306(a)(11)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by 
     striking ``2002'' and inserting ``2006''.

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

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

     SEC. 624. MULTIJURISDICTIONAL REGIONAL PLANNING 
                   ORGANIZATIONS.

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

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

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

     SEC. 625. CERTIFIED NONPROFIT ORGANIZATIONS SHARING 
                   EXPERTISE.

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

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

       ``(iii) List.--The Secretary shall make available to the 
     public a list of certified organizations in each area that 
     the Secretary

[[Page 26781]]

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

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

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

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

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

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

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

       ``(I) Existing centers.--

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

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

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

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

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

     SEC. 628. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM.

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

     SEC. 629. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN 
                   TRIBES.

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

     SEC. 630. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                   ALASKA.

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

     SEC. 631. RURAL COOPERATIVE DEVELOPMENT GRANTS.

       Section 310B(e)(9) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(e)(9)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 632. GRANTS TO BROADCASTING SYSTEMS.

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

     SEC. 633. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

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

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

       ``(iii) Collateral.--As a condition of making a loan 
     guarantee under this subparagraph, the Secretary may not 
     require additional collateral by a farmer or rancher, other 
     than stock purchased or issued pursuant to the loan and 
     guarantee of the loan.
       ``(iv) Eligibility.--To be eligible for a loan guarantee 
     under this subparagraph, a farmer or rancher must produce the 
     agricultural commodity that will be processed by the 
     cooperative.
       ``(v) Processing contracts during initial period.--The 
     cooperative, for which a farmer or rancher receives a 
     guarantee to purchase stock under this subparagraph, may 
     contract for services to process agricultural commodities, or 
     otherwise process value-added agricultural products, during 
     the 5-year period beginning on the date of the startup of the 
     cooperative in order to provide adequate time for the 
     planning and construction of the processing facility of the 
     cooperative.
       ``(B) Existing cooperatives.--The Secretary may guarantee a 
     loan under subsection (a) to a farmer or rancher to join a 
     cooperative in order to sell the agricultural commodities or 
     products produced by the farmer or rancher.
       ``(C) Financial information.--Financial information 
     required by the Secretary from a farmer or rancher as a 
     condition of making a loan guarantee under this paragraph 
     shall be provided in the manner generally required by 
     commercial agricultural lenders in the area.
       ``(2) Loans to cooperatives.--

[[Page 26782]]

       ``(A) In general.--The Secretary may make or guarantee a 
     loan under subsection (a) to a cooperative that is 
     headquartered in a metropolitan area if the loan is used for 
     a project or venture described in subsection (a) that is 
     located in a rural area.
       ``(B) Refinancing.--A cooperative organization owned by 
     farmers or ranchers that is eligible for a business and 
     industry loan under made or guaranteed under subsection (a) 
     shall be eligible to refinance an existing loan with a lender 
     if--
       ``(i) the cooperative organization--

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

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

     SEC. 634. VALUE-ADDED INTERMEDIARY RELENDING PROGRAM.

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

     SEC. 635. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
                   PURPOSES.

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

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

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

     SEC. 636. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

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

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

       ``(2) Water and waste disposal grants and loans.--The 
     Secretary shall develop an application process that 
     accelerates, to the maximum extent practicable, the 
     processing of applications for water and waste disposal 
     grants or direct or guaranteed loans under paragraph (1) or 
     (2) of section 306(a) the grant award amount or principal 
     loan amount, respectively, of which is $300,000 or less.
       ``(3) Administration.--In developing an application under 
     this subsection, the Secretary shall--
       ``(A) consult with commercial and cooperative lenders; and
       ``(B) ensure that--
       ``(i) the form can be completed manually or electronically, 
     at the option of the lender;
       ``(ii) the form minimizes the documentation required to 
     accompany the form;
       ``(iii) the cost of completing and processing the form is 
     minimal; and
       ``(iv) the form can be completed and processed in an 
     expeditious manner.''.

     SEC. 637. DEFINITION OF RURAL AND RURAL AREA.

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

[[Page 26783]]

       (2) Section 381A of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009) is amended--
       (A) by striking paragraph (1); and
       (B) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively.

     SEC. 638. RURAL ENTREPRENEURS AND MICROENTERPRISE ASSISTANCE 
                   PROGRAM.

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

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

       ``(a) Definitions.--In this section:
       ``(1) Economically disadvantaged microentrepreneur.--The 
     term `economically disadvantaged microentrepreneur' means an 
     owner, majority owner, or developer of a microenterprise that 
     has the ability to compete in the private sector but has been 
     impaired due to diminished capital and credit opportunities, 
     as compared to other microentrepreneurs in the industry.
       ``(2) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(3) Intermediary.--The term `intermediary' means a 
     private, nonprofit entity that provides assistance--
       ``(A) to a microenterprise development organization; or
       ``(B) for a microenterprise development program.
       ``(4) Low-income individual.--The term `low-income 
     individual' means an individual with an income (adjusted for 
     family size) of not more than the greater of--
       ``(A) 80 percent of median income of an area; or
       ``(B) 80 percent of the statewide nonmetropolitan area 
     median income.
       ``(5) Microcredit.--The term `microcredit' means a business 
     loan or loan guarantee of not more than $35,000 provided to a 
     rural entrepreneur.
       ``(6) Microenterpise.--The term `microenterprise' means a 
     sole proprietorship, joint enterprise, limited liability 
     company, partnership, corporation, or cooperative that--
       ``(A) has 5 or fewer employees; and
       ``(B) is unable to obtain sufficient credit, equity, or 
     banking services elsewhere, as determined by the Secretary.
       ``(7) Microenterprise development organization.--
       ``(A) In general.--The term `microenterprise development 
     organization' means a nonprofit entity that provides training 
     and technical assistance to rural entrepreneurs and access to 
     capital or another service described in subsection (c) to 
     rural entrepreneurs.
       ``(B) Inclusions.--The term `microenterprise development 
     organization' includes an organization described in 
     subparagraph (A) with a demonstrated record of delivering 
     services to economically disadvantaged microentrepreneurs.
       ``(8) Microenterprise development program.--The term 
     `microenterprise development organization' means a program 
     administered by a organization serving a rural area.
       ``(9) Microentrepreneur.--The term `microentrepreneur' 
     means the owner, operator, or developer of a microenterprise.
       ``(10) Program.--The term `program' means the rural 
     entrepreneur and microenterprise program established under 
     subsection (b)(1).
       ``(11) Qualified organization.--The term `qualified 
     organization' means--
       ``(A) a microenterprise development organization or 
     microenterprise development program that has a demonstrated 
     record of delivering microenterprise services to rural 
     entrepreneurs, as demonstrated by the development of an 
     effective plan of action and the possession of necessary 
     resources to deliver microenterprise services to rural 
     entrepreneurs effectively, as determined by the Secretary;
       ``(B) an intermediary that has a demonstrated record of 
     delivery assistance to microenterprise development 
     organizations or microenterprise development programs;
       ``(C) a microenterprise development organization or 
     microenterprise development program that--
       ``(i) serves rural entrepreneurs; and
       ``(ii) enters into an agreement with a local community, in 
     conjunction with a State or local government or Indian tribe, 
     to provide assistance described in subsection (c);
       ``(D) an Indian tribe, the tribal government of which 
     certifies to the Secretary that no microenterprise 
     development organization or microenterprise development 
     program exists under the jurisdiction of the Indian tribe; or
       ``(E) a group of 2 or more organizations or Indian tribes 
     described in subparagraph (A), (B), (C), or (D) that agree to 
     act jointly as a qualified organization under this section.
       ``(12) Rural capacity building service.--The term `rural 
     capacity building service' means a service provided to an 
     organization that--
       ``(A) is, or is in the process of becoming, a 
     microenterprise development organization or microenterprise 
     development program; and
       ``(B) serves rural areas for the purpose of enhancing the 
     ability of the organization to provide training, technical 
     assistance, and other related services to rural 
     entrepreneurs.
       ``(13) Rural entrepreneur.--The term `rural entrepreneur' 
     means a microentrepreneur, or prospective microentrepreneur--
       ``(A) the principal place of business of which is in a 
     rural area; and
       ``(B) that is unable to obtain sufficient training, 
     technical assistance, or microcredit elsewhere, as determined 
     by the Secretary.
       ``(14) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Rural Business-Cooperative 
     Service.
       ``(15) Training and technical assistance.--
       ``(A) In general.--The term `training and technical 
     assistance' means assistance provided to rural entrepreneurs 
     to develop the skills the rural entrepreneurs need to plan, 
     market, and manage their own business.
       ``(B) Inclusions.--The term `training and technical 
     assistance' includes assistance provided for the purpose of--
       ``(i) enhancing business planning, marketing, management, 
     or financial management skills; and
       ``(ii) obtaining microcredit.
       ``(16) Tribal government.--The term `tribal government' 
     means the governing body of an Indian tribe.
       ``(b) Establishment.--
       ``(1) In general.--From amounts made available under 
     subsection (h), the Secretary shall establish a rural 
     entrepreneur and microenterprise program.
       ``(2) Purpose.--The purpose of the program shall be to 
     provide low- and moderate-income individuals with--
       ``(A) the skills necessary to establish new small 
     businesses in rural areas; and
       ``(B) continuing technical assistance as the individuals 
     begin operating the small businesses.
       ``(c) Assistance.--
       ``(1) In general.--The Secretary may make a grant under 
     this section to a qualified organization to--
       ``(A) provide training, technical assistance, or 
     microcredit to a rural entrepreneur;
       ``(B) provide training, operational support, or a rural 
     capacity building service to a qualified organization to 
     assist the qualified organization in developing 
     microenterprise training, technical assistance, and other 
     related services;
       ``(C) assist in researching and developing the best 
     practices in delivering training, technical assistance, and 
     microcredit to rural entrepreneurs; and
       ``(D) to carry out such other projects and activities as 
     the Secretary determines are consistent with the purposes of 
     this section.
       ``(2) Allocation.--
       ``(A) In general.--Subject to subparagraphs (B) and (C), of 
     the amount of funds made available for a fiscal year to make 
     grants under this section, the Secretary shall ensure that--
       ``(i) not less than 75 percent of funds are used to carry 
     out activities described in paragraph (1)(A); and
       ``(ii) not more than 25 percent of the funds are used to 
     carry out activities described in subparagraphs (B) through 
     (D) of paragraph (1).
       ``(B) Limitation on grant amount.--No single qualified 
     organization may receive more than 10 percent of the total 
     funds that are made available for a fiscal year to carry out 
     this section.
       ``(C) Administrative expenses.--Not more than 15 percent of 
     assistance received by a qualified organization for a fiscal 
     year under this section may be used for administrative 
     expenses.
       ``(d) Subgrants.--Subject to such regulations as the 
     Secretary may promulgate, a qualified organization that 
     receives a grant under this section may use the grant to 
     provide assistance to other qualified organizations, such as 
     small or emerging qualified organizations.
       ``(e) Low-Income Individuals.--The Secretary shall ensure 
     that not less than 50 percent of the grants made under this 
     section is used to benefit low-income individuals identified 
     by the Secretary, including individuals residing on Indian 
     reservations.
       ``(f) Diversity.--In making grants under this section, the 
     Secretary shall ensure, to the maximum extent practicable, 
     that grant recipients include qualified organizations--
       ``(1) of varying sizes; and
       ``(2) that serve racially and ethnically diverse 
     populations.
       ``(g) Cost Sharing.--
       ``(1) Federal share.--The Federal share of the cost of a 
     project carried out using funds from a grant under this 
     section shall be 75 percent.
       ``(2) Form of non-federal share.--The non-Federal share of 
     the cost of a project described in paragraph (1) may be 
     provided--
       ``(A) in cash (including through fees, grants (including 
     community development block grants), and gifts); or
       ``(B) in kind.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 639. RURAL SENIORS.

       (a) Interagency Coordinating Committee for Rural Seniors.--
     Subtitle D of the Consolidated Farm and Rural Development Act

[[Page 26784]]

     (7 U.S.C. 1981 et seq.) (as amended by section 638) is 
     amended by adding at the end the following:

     ``SEC. 379. INTERAGENCY COORDINATING COMMITTEE FOR RURAL 
                   SENIORS.

       ``(a) In General.--The Secretary shall establish an 
     interagency coordinating committee (referred to in this 
     section as the `Committee') to examine the special problems 
     of rural seniors.
       ``(b) Membership.--The Committee shall be comprised of--
       ``(1) the Undersecretary of Agriculture for Rural 
     Development, who shall serve as chairperson of the Committee;
       ``(2) 2 representatives of the Secretary of Health and 
     Human Services, of whom--
       ``(A) 1 shall have expertise in the field of health care; 
     and
       ``(B) 1 shall have expertise in the field of programs under 
     the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.);
       ``(3) 1 representative of the Secretary of Housing and 
     Urban Development;
       ``(4) 1 representative of the Secretary of Transportation; 
     and
       ``(5) representatives of such other Federal agencies as the 
     Secretary may designate.
       ``(c) Duties.--The Committee shall--
       ``(1) study health care, transportation, technology, 
     housing, accessibility, and other areas of need of rural 
     seniors;
       ``(2) identify successful examples of senior care programs 
     in rural communities that could serve as models for other 
     rural communities; and
       ``(3) not later than 1 year after the date of enactment of 
     this section, submit to the Secretary, the Committee on 
     Agriculture of the House of Representatives, and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate recommendations for legislative and administrative 
     action.
       ``(d) Funding.--Funds available to any Federal agency may 
     be used to carry out interagency activities under this 
     section.''.
       (b) Grants for Programs for Rural Seniors.--Subtitle D of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1981 et seq.) (as amended by subsection (a)) is amended by 
     adding at the end the following:

     ``SEC. 379A. GRANTS FOR PROGRAMS FOR RURAL SENIORS.

       ``(a) In General.--The Secretary shall make grants to 
     nonprofit organizations (including cooperatives) to pay the 
     Federal share of the cost of programs that--
       ``(1) provide facilities, equipment, and technology for 
     seniors in a rural area; and
       ``(2) may be replicated in other rural areas.
       ``(b) Federal Share.--The Federal share of a grant under 
     this section shall be not more than 20 percent of the cost of 
     a program described in subsection (a).
       ``(c) Leveraging.--In selecting programs to receive grants 
     under section, the Secretary shall give priority to proposals 
     that leverage resources to meet multiple rural community 
     goals.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $25,000,000 for 
     each of fiscal years 2003 through 2006.''.
       (c) Reservation of Community Facilities Program Funds for 
     Senior Facilities.--Section 306(a)(19) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) is 
     amended by adding at the end the following:
       ``(C) Reservation of funds for senior facilities.--
       ``(i) In general.--For each fiscal year, not less than 12.5 
     percent of the funds made available to carry out this 
     paragraph shall be reserved for grants to pay the Federal 
     share of the cost of developing and constructing senior 
     facilities, or carrying out other projects that mainly 
     benefit seniors, in rural areas.
       ``(ii) Release.--Funds reserved under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 640. CHILDREN'S DAY CARE FACILITIES.

       Section 306(a)(19) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(19)) (as amended by section 
     639(c)) is amended by adding at the end the following:
       ``(D) Reservation of funds for children's day care 
     facilities.--
       ``(i) In general.--For each fiscal year, not less than 10 
     percent of the funds made available to carry out this 
     paragraph shall be reserved for grants to pay the Federal 
     share of the cost of developing and constructing day care 
     facilities for children in rural areas.
       ``(ii) Release.--Funds reserved under clause (i) for a 
     fiscal year shall be reserved only until April 1 of the 
     fiscal year.''.

     SEC. 641. RURAL TELEWORK.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 639(b)) is 
     amended by adding at the end the following:

     ``SEC. 379B. RURAL TELEWORK.

       ``(a) Definitions.--In this section:
       ``(1) Eligible organization.--The term `eligible 
     organization' means a nonprofit entity, an educational 
     institution, an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)), or any other organization that meets the 
     requirements of this section and such other requirements as 
     are established by the Secretary.
       ``(2) Institute.--The term `institute' means a regional 
     rural telework institute established using a grant under 
     subsection (b).
       ``(3) Telework.--The term `telework' means the use of 
     telecommunications to perform work functions at a rural work 
     center located outside the place of business of an employer.
       ``(b) Rural Telework Institute.--
       ``(1) In general.--The Secretary shall make a grant to an 
     eligible organization to pay the Federal share of the cost of 
     establishing and operating a national rural telework 
     institute to carry out projects described in paragraph (4).
       ``(2) Eligible organizations.--The Secretary shall 
     establish criteria that an organization shall meet to be 
     eligible to receive a grant under this subsection.
       ``(3) Deadline for initial grant.--Not later than 1 year 
     after the date on which funds are first made available to 
     carry out this subsection, the Secretary shall make the 
     initial grant under this subsection.
       ``(4) Projects.--The institute shall use grant funds 
     obtained under this subsection to carry out a 5-year 
     project--
       ``(A) to serve as a clearinghouse for telework research and 
     development;
       ``(B) to conduct outreach to rural communities and rural 
     workers;
       ``(C) to develop and share best practices in rural telework 
     throughout the United States;
       ``(D) to develop innovative, market-driven telework 
     projects and joint ventures with the private sector that 
     employ workers in rural areas in jobs that promote economic 
     self-sufficiency;
       ``(E) to share information about the design and 
     implementation of telework arrangements;
       ``(F) to support private sector businesses that are 
     transitioning to telework;
       ``(G) to support and assist telework projects and 
     individuals at the State and local level; and
       ``(H) to perform such other functions as the Secretary 
     considers appropriate.
       ``(5) Non-federal share.--
       ``(A) In general.--As a condition of receiving a grant 
     under this subsection, an eligible organization shall agree 
     to obtain, after the application of the eligible organization 
     has been approved and notice of award has been issued, 
     contributions from non-Federal sources that are equal to--
       ``(i) during each of the first, second, and third years of 
     a project, 50 percent of the amount of the grant; and
       ``(ii) during each of the fourth and fifth years of the 
     project, 100 percent of the amount of the grant.
       ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
     Indian tribe may use Federal funds made available to the 
     tribe for self-governance to pay the non-Federal 
     contributions required under subparagraph (A).
       ``(C) Form.--The non-Federal contributions required under 
     subparagraph (A) may be in the form of in-kind contributions, 
     including office equipment, office space, and services.
       ``(c) Telework Grants.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the Secretary shall make grants to eligible entities to pay 
     the Federal share of the cost of--
       ``(A) obtaining equipment and facilities to establish or 
     expand telework locations in rural areas; and
       ``(B) operating telework locations in rural areas.
       ``(2) Eligible organizations.--To be eligible to receive a 
     grant under this subsection, an eligible entity shall--
       ``(A) be a nonprofit organization or educational 
     institution in a rural area; and
       ``(B) submit to, and receive the approval of, the Secretary 
     of an application for the grant that demonstrates that the 
     eligible entity has adequate resources and capabilities to 
     establish or expand a telework location in a rural area.
       ``(3) Non-federal share.--
       ``(A) In general.--As a condition of receiving a grant 
     under this subsection, an eligible organization shall agree 
     to obtain, after the application of the eligible organization 
     has been approved and notice of award has been issued, 
     contributions from non-Federal sources that are equal to 50 
     percent of the amount of the grant.
       ``(B) Indian tribes.--Notwithstanding subparagraph (A), an 
     Indian tribe may use Federal funds made available to the 
     tribe for self-governance to pay the non-Federal 
     contributions required under subparagraph (A).
       ``(C) Sources.--The non-Federal contributions required 
     under subparagraph (A)--
       ``(i) may be in the form of in-kind contributions, 
     including office equipment, office space, and services; and
       ``(ii) may not be made from funds made available for 
     community development block grants under title I of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 5301 
     et seq.).
       ``(4) Duration.--The Secretary may not provide a grant 
     under this subsection to establish, expand, or operate a 
     telework location in a rural area after the date that is 2 
     years after the establishment of the telework location.
       ``(5) Maximum amount of grant.--The amount of a grant 
     provided to an eligible entity under this subsection shall 
     not exceed $500,000.
       ``(d) Applicability of Certain Federal Law.--An entity that 
     receives funds under

[[Page 26785]]

     this section shall be subject to the provisions of Federal 
     law (including regulations), administered by the Secretary of 
     Labor or the Equal Employment Opportunity Commission, that 
     govern the responsibilities of employers to employees.
       ``(e) Regulations.--Not later than 180 days after the date 
     of enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(f) Authorization of Appropriation.--There is authorized 
     to be appropriated to carry out this section $30,000,000 for 
     each of fiscal years 2002 through 2006, of which $5,000,000 
     shall be provided to establish an institute under subsection 
     (b).''.

     SEC. 642. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) (as amended by section 641)) is 
     amended by adding at the end the following:

     ``SEC. 379C. GRANTS FOR EMERGENCY WEATHER RADIO TRANSMITTERS.

       ``(a) In General.--The Secretary, acting through the 
     Administrator of the Rural Utilities Service, may make grants 
     to public and nonprofit entities for the Federal share of the 
     cost of acquiring radio transmitters to increase coverage of 
     rural areas by the emergency weather radio broadcast system 
     of the National Oceanic and Atmospheric Administration.
       ``(b) Eligibility.--To be eligible for a grant under this 
     section, an applicant shall provide to the Secretary--
       ``(1) a binding commitment from a tower owner to place the 
     transmitter on a tower; and
       ``(2) a description of how the tower placement will 
     increase coverage of a rural area by the emergency weather 
     radio broadcast system of the National Oceanic and 
     Atmospheric Administration.
       ``(c) Federal Share.--A grant provided under this section 
     shall be not more than 75 percent of the cost of acquiring a 
     radio transmitter described in subsection (a).
       ``(d) Authorization.--There is authorized to be 
     appropriated to carry out this section $2,000,000 for each of 
     fiscal years 2002 through 2006.''.

     SEC. 643. DELTA REGIONAL AUTHORITY.

       (a) Authorization of Appropriations.--Section 382M(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     2009aa-12(a)) is amended by striking ``2002'' and inserting 
     ``2006''.
       (b) Termination of Authority.--Section 382N of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
     13) is amended by striking ``2002'' and inserting ``2006''.

     SEC. 644. SEARCH GRANTS FOR SMALL COMMUNITIES.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 604) is amended by adding at the end the 
     following:

           ``Subtitle J--SEARCH Grants for Small Communities

     ``SEC. 386A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Council.--The term `council' means an independent 
     citizens' council established by section 386B(d).
       ``(2) Environmental project.--
       ``(A) In general.--The term `environmental project' means a 
     project that--
       ``(i) improves environmental quality; and
       ``(ii) is necessary to comply with an environmental law 
     (including a regulation).
       ``(B) Inclusion.--The term `environmental project' includes 
     an initial feasibility study of a project.
       ``(3) Region.--The term `region' means a geographic area of 
     a State, as determined by the Governor of the State.
       ``(4) SEARCH grant.--The term `SEARCH grant' means a grant 
     for special environmental assistance for the regulation of 
     communities and habitat awarded under section 386B(e)(3).
       ``(5) Small community.--The term `small community' means an 
     incorporated or unincorporated rural community with a 
     population of 2,500 inhabitants or less.
       ``(6) State.--The term `State' has the meaning given the 
     term in section 381A(1).

     ``SEC. 386B. SEARCH GRANT PROGRAM.

       ``(a) In General.--There is established the SEARCH Grant 
     Program.
       ``(b) Application.--
       ``(1) In general.--Not later than October 1 of each fiscal 
     year, a State may submit to the Secretary an application to 
     receive a grant under subsection (c) for the fiscal year.
       ``(2) Requirements.--An application under paragraph (1) 
     shall contain--
       ``(A) a certification by the State that the State has 
     appointed members to the council of the State under 
     subsection (c)(2)(C); and
       ``(B) such information as the Secretary may reasonably 
     require.
       ``(c) Grants to States.--
       ``(1) In general.--Not later than 60 days after the date on 
     which the Office of Management and Budget apportions any 
     amounts made available under this subtitle, for each fiscal 
     year after the date of enactment of this subtitle, the 
     Secretary shall, on request by a State--
       ``(A) determine whether any application submitted by the 
     State under subsection (b) meets the requirements of 
     subsection (b)(2); and
       ``(B) subject to paragraph (2), subsection (e)(4)(B)(ii), 
     and section 386D(b), if the Secretary determines that the 
     application meets the requirements of subsection (b)(2), 
     award a grant of not to exceed $1,000,000 to the State, to be 
     used by the council of the State to award SEARCH grants under 
     subsection (e).
       ``(2) Grants to certain states.--The aggregate amount of 
     grants awarded to States other than Alaska, Hawaii, or 1 of 
     the 48 contiguous States, under this subsection shall not 
     exceed $1,000,000 for any fiscal year.
       ``(d) Independent Citizens' Council.--
       ``(1) Establishment.--There is established in each State an 
     independent citizens' council to carry out the duties 
     described in this section.
       ``(2) Composition.--
       ``(A) In general.--Each council shall be composed of 9 
     members, appointed by the Governor of the State.
       ``(B) Representation; residence.--Each member of a council 
     shall--
       ``(i) represent an individual region of the State, as 
     determined by the Governor of the State in which the council 
     is established;
       ``(ii) reside in a small community of the State; and
       ``(iii) be representative of the populations of the State.
       ``(C) Appointment.--Before a State receives funds under 
     this subtitle, the State shall appoint members to the council 
     for the fiscal year, except that not more than 1 member shall 
     be an agent, employee, or official of the State government.
       ``(D) Chairperson.--Each council shall select a chairperson 
     from among the members of the council, except that a member 
     who is an agent, employee, or official of the State 
     government shall not serve as chairperson.
       ``(E) Federal representation.--
       ``(i) In general.--An officer, employee, or agent of the 
     Federal Government may participate in the activities of the 
     council--

       ``(I) in an advisory capacity; and
       ``(II) at the invitation of the council.

       ``(ii) Rural development state directors.--On the request 
     of the council of a State, the State Director for Rural 
     Development of the State shall provide advice and 
     consultation to the council.
       ``(3) SEARCH grants.--
       ``(A) In general.--Each council shall review applications 
     for, and recommend awards of, SEARCH grants to small 
     communities that meet the eligibility criteria under 
     subsection (c).
       ``(B) Recommendations.--In awarding a SEARCH grant, a 
     State--
       ``(i) shall follow the recommendations of the council of 
     the State;
       ``(ii) shall award the funds for any recommended 
     environmental project in a timely and expeditious manner; and
       ``(iii) shall not award a SEARCH grant to a grantee or 
     project in violation of any law of the State (including a 
     regulation).
       ``(C) No matching requirement.--A small community that 
     receives a SEARCH grant under this section shall not be 
     required to provide matching funds.
       ``(e) SEARCH Grants for Small Communities.--
       ``(1) Eligibility.--A SEARCH grant shall be awarded under 
     this section only to a small community for 1 or more 
     environmental projects for which the small community--
       ``(A) needs funds to carry out initial feasibility or 
     environmental studies before applying to traditional funding 
     sources; or
       ``(B) demonstrates, to the satisfaction of the council, 
     that the small community has been unable to obtain sufficient 
     funding from traditional funding sources.
       ``(2) Application.--
       ``(A) Date.--The council shall establish such deadline by 
     which small communities shall submit applications for grants 
     under this section as will permit the council adequate time 
     to review and make recommendations relating to the 
     applications.
       ``(B) Location of application.--A small community shall 
     submit an application described in subparagraph (A) to the 
     council in the State in which the small community is located.
       ``(C) Content of application.--An application described in 
     subparagraph (A) shall include--
       ``(i) a description of the proposed environmental project 
     (including an explanation of how the project would assist the 
     small community in complying with an environmental law 
     (including a regulation));
       ``(ii) an explanation of why the project is important to 
     the small community;
       ``(iii) a description of all actions taken with respect to 
     the project, including a description of any attempt to secure 
     funding and a description of demonstrated need for funding 
     for the project, as of the date of the application; and
       ``(iv) a SEARCH grant application form provided by the 
     council, completed and with all required supporting 
     documentation.
       ``(3) Review and recommendation.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than March 5 of each fiscal year, each council 
     shall--
       ``(i) review all applications received under paragraph (2); 
     and
       ``(ii) recommend for award SEARCH grants to small 
     communities based on--

       ``(I) an evaluation of the eligibility criteria under 
     paragraph (1); and

[[Page 26786]]

       ``(II) the content of the application.

       ``(B) Extension of deadline.--The State may extend the 
     deadline described in subparagraph (A) by not more than 10 
     days in a case in which the receipt of recommendations from a 
     council under subparagraph (A)(ii) is delayed because of 
     circumstances beyond the control of the council, as 
     determined by the State.
       ``(4) Unexpended funds.--
       ``(A) In general.--If, for any fiscal year, any unexpended 
     funds remain after SEARCH grants are awarded under subsection 
     (d)(3)(B), the council may repeat the application and review 
     process so that any remaining funds may be recommended for 
     award, and awarded, not later than July 30 of the fiscal 
     year.
       ``(B) Retention of funds.--
       ``(i) In general.--Any unexpended funds that are not 
     awarded under subsection (d)(3)(B) or subparagraph (A) shall 
     be retained by the State for award during the following 
     fiscal year.
       ``(ii) Limitation.--A State that accumulates a balance of 
     unexpended funds described in clause (i) of more than 
     $3,000,000 shall be ineligible to apply for additional funds 
     for SEARCH grants until such time as the State expends the 
     portion of the balance that exceeds $3,000,000.

     ``SEC. 386C. REPORT.

       ``Not later than September 1 of the first fiscal year for 
     which a SEARCH grant is awarded by a council, and annually 
     thereafter, the council shall submit to the Secretary a 
     report that--
       ``(1) describes the number of SEARCH grants awarded during 
     the fiscal year;
       ``(2) identifies each small community that received a 
     SEARCH grant during the fiscal year;
       ``(3) describes the project or purpose for which each 
     SEARCH grant was awarded, including a statement of the 
     benefit to public health or the environment of the 
     environmental project receiving the grant funds; and
       ``(4) describes the status of each project or portion of a 
     project for which a SEARCH grant was awarded, including a 
     project or portion of a project for which a SEARCH grant was 
     awarded for any fiscal year before the fiscal year in which 
     the report is submitted.

     ``SEC. 386D. FUNDING.

       ``(a) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out section 386B(c) $51,000,000, 
     of which not to exceed $1,000,000 shall be used to make 
     grants under section 386B(c)(2).
       ``(b) Actual Appropriation.--If funds to carry out section 
     386B(c) are made available for a fiscal year in an amount 
     that is less than the amount authorized under subsection (a) 
     for the fiscal year, the appropriated funds shall be divided 
     equally among the 50 States.
       ``(c) Unused Funds.--If, for any fiscal year, a State does 
     not apply, or does not qualify, to receive funds under 
     section 386B(b), the funds that would have been made 
     available to the State under section 386B(c) on submission by 
     the State of a successful application under section 386B(b) 
     shall be redistributed for award under this subtitle among 
     States, the councils of which awarded 1 or more SEARCH grants 
     during the preceding fiscal year.
       ``(d) Other Expenses.--There are authorized to be 
     appropriated such sums as are necessary to carry out the 
     provisions of this subtitle (other than section 386B(c)).''.

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

     SEC. 651. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION CORPORATION.

       (a) Repeal of Corporation Authorization.--Subtitle G of 
     title XVI of the Food, Agriculture, Conservation, and Trade 
     Act of 1990 (7 U.S.C. 5901 et seq.) is repealed.
       (b) Disposition of Assets.--On the date of enactment of 
     this Act--
       (1) the assets, both tangible and intangible, of the 
     Alternative Agricultural Research and Commercialization 
     Corporation (referred to in this section as the 
     ``Corporation''), including the funds in the Alternative 
     Agricultural Research and Commercialization Revolving Fund as 
     of the date of enactment of this Act, are transferred to the 
     Secretary of Agriculture; and
       (2) notwithstanding the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 471 et seq.), the Secretary 
     shall have authority to manage and dispose of the assets 
     transferred under paragraph (1) in a manner that, to the 
     maximum extent practicable, provides the greatest return on 
     investment.
       (c) Use of Assets.--
       (1) In general.--Funds transferred under subsection (b), 
     and any income from assets or proceeds from the sale of 
     assets transferred under subsection (b), shall be deposited 
     into an account in the Treasury, and shall remain available 
     to the Secretary until expended, without further 
     appropriation, to pay--
       (A) any outstanding claims or obligations of the 
     Corporation; and
       (B) the costs incurred by the Secretary in carrying out 
     this section.
       (2) Final disposition.--On final disposition of all assets 
     transferred under subsection (b), any funds remaining in the 
     account described in paragraph (1) shall be transferred into 
     miscellaneous receipts in the Treasury.
       (d) Conforming Amendments.--
       (1) The following provisions are repealed:
       (A) Section 730 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 5902 note; Public Law 104-127).
       (B) Section 9101(3)(Q) of title 31, United States Code.
       (2) Section 401(c) of the Agricultural Research, Education, 
     and Extension Reform Act of 1998 (7 U.S.C. 7621(c)) is 
     amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Critical emerging issues.--Subject to paragraph (2), 
     the Secretary shall use the funds in the Account for 
     research, extension, and education grants (referred to in 
     this section as `grants') to address critical emerging 
     agricultural issues related to--
       ``(A) future food production;
       ``(B) environmental quality and natural resource 
     management; or
       ``(C) farm income.''.
       (3) Section 793(c)(1)(A)(ii)(II) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 
     2204f(c)(1)(A)(ii)(II)) is amended by striking ``subtitle G 
     of title XVI and''.

     SEC. 652. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN 
                   RURAL AREAS.

       (a) In General.--Section 2335A of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
     amended by striking ``2002'' and inserting ``2006''.
       (b) Conforming Amendment.--Section 1(b) of Public Law 102-
     551 (7 U.S.C. 950aaa note) is amended by striking ``1997'' 
     and inserting ``2006''.

             Subtitle E--Rural Electrification Act of 1936

     SEC. 661. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       (a) In General.--The Rural Electrification Act of 1936 is 
     amended by inserting after section 313 (7 U.S.C. 940c) the 
     following:

     ``SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   ELECTRIFICATION OR TELEPHONE PURPOSES.

       ``(a) In General.--Subject to subsection (b), the Secretary 
     shall guarantee payments on bonds or notes issued by 
     cooperative or other lenders organized on a not-for-profit 
     basis if the proceeds of the bonds or notes are used for 
     electrification or telephone projects eligible for assistance 
     under this Act, including the refinancing of bonds or notes 
     issued for such projects.
       ``(b) Limitations.--
       ``(1) Outstanding loans.--A lender shall not receive a 
     guarantee under this section for a bond or note if, at the 
     time of the guarantee, the total principal amount of such 
     guaranteed bonds or notes outstanding of the lender would 
     exceed the principal amount of outstanding loans of the 
     lender for electrification or telephone purposes that have 
     been made concurrently with loans approved for such purposes 
     under this Act.
       ``(2) Generation of electricity.--The Secretary shall not 
     guarantee payment on a bond or note issued by a lender, the 
     proceeds of which are used for the generation of electricity.
       ``(3) Qualifications.--The Secretary may deny the request 
     of a lender for the guarantee of a bond or note under this 
     section if the Secretary determines that--
       ``(A) the lender does not have appropriate expertise or 
     experience or is otherwise not qualified to make loans for 
     electrification or telephone purposes;
       ``(B) the bond or note issued by the lender is not of 
     reasonable and sufficient quality; or
       ``(C) the lender has not provided sufficient evidence that 
     the proceeds of the bond or note are used for eligible 
     projects described in subsection (a).
       ``(4) Interest rate reduction.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a lender may not use any amount obtained from the reduction 
     in funding costs as a result of the guarantee of a bond or 
     note under this section to reduce the interest rate on a new 
     or outstanding loan.
       ``(B) Concurrent loans.--A lender may use any amount 
     described in subparagraph (A) to reduce the interest rate on 
     a loan if the loan is--
       ``(i) made by the lender for electrification or telephone 
     projects that are eligible for assistance under this Act; and
       ``(ii) made concurrently with a loan approved by the 
     Secretary under this Act for such a project, as provided in 
     section 307.
       ``(c) Fees.--
       ``(1) In general.--A lender that receives a guarantee 
     issued under this section on a bond or note shall pay a fee 
     to the Secretary.
       ``(2) Amount.--The amount of an annual fee paid for the 
     guarantee of a bond or note under this section shall be equal 
     to 30 basis points of the amount of the unpaid principal of 
     the bond or note guaranteed under this section.
       ``(3) Payment.--A lender shall pay the fees required under 
     this subsection on a semiannual basis.
       ``(4) Rural economic development subaccount.--Subject to 
     subsection (e)(2), fees collected under this subsection shall 
     be--

[[Page 26787]]

       ``(A) deposited into the rural economic development 
     subaccount maintained under section 313(b)(2)(A), to remain 
     available until expended; and
       ``(B) used for the purposes described in section 
     313(b)(2)(B).
       ``(d) Guarantees.--
       ``(1) In general.--A guarantee issued under this section 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable; and
       ``(C) represent the full faith and credit of the United 
     States.
       ``(2) Limitation.--To ensure that the Secretary has the 
     resources necessary to properly examine the proposed 
     guarantees, the Secretary may limit the number of guarantees 
     issued under this section if the number of such guarantees 
     exceeds 5 per year.
       ``(3) Department opinion.--On the timely request of an 
     eligible lender, the General Counsel of the Department of 
     Agriculture shall provide the Secretary with an opinion 
     regarding the validity and authority of a guarantee issued to 
     the lender under this section.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as are necessary to carry out this section.
       ``(2) Fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     up to \1/3\ of the fees collected under subsection (c) for 
     the cost of providing guarantees of bonds and notes under 
     this section before depositing the remainder of the fees into 
     the rural economic development subaccount maintained under 
     section 313(b)(2)(A).
       ``(f) Termination.--The authority provided under this 
     section shall terminate on September 30, 2006.''.
       (b) Administration of Cushion of Credit Payments Program.--
     Section 313(b)(2)(B) of the Rural Electrification Act of 1936 
     (7 U.S.C. 940c)(b)(2)(B)) is amended by inserting ``, acting 
     through the Rural Utilities Service,'' after ``Secretary''.
       (c) Administration.--
       (1) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations to carry out the amendments made by 
     this section.
       (2) Implementation.--Not later than 240 days after the date 
     of enactment of this Act, the Secretary shall implement the 
     amendment made by this section.

     SEC. 662. EXPANSION OF 911 ACCESS.

       Title III of the Rural Electrification Act of 1936 (7 
     U.S.C. 931 et seq.) is amended by adding the following:

     ``SEC. 315. EXPANSION OF 911 ACCESS.

       ``(a) In General.--Subject to such terms and conditions as 
     the Secretary may prescribe, the Secretary may make telephone 
     loans under this title to State or local governments, Indian 
     tribes (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     or other public entities for facilities and equipment to 
     expand 911 access in underserved rural areas.
       ``(b) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

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

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

     SEC. 701. DEFINITIONS.

       (a) In General.--Section 1404 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3103) is amended--
       (1) by redesignating paragraphs (10) through (17) as 
     paragraphs (11) through (18), respectively;
       (2) by inserting after paragraph (9) the following:
       ``(10) Insular area.--The term `insular area' means--
       ``(A) the Commonwealth of Puerto Rico;
       ``(B) Guam;
       ``(C) American Samoa;
       ``(D) the Commonwealth of the Northern Mariana Islands;
       ``(E) the Federated States of Micronesia;
       ``(F) the Republic of the Marshall Islands;
       ``(G) the Republic of Palau; and
       ``(H) the Virgin Islands of the United States.''; and
       (3) by striking paragraph (13) (as so redesignated) and 
     inserting the following:
       ``(13) State.--The term `State' means--
       ``(A) a State;
       ``(B) the District of Columbia; and
       ``(C) any insular area.''.
       (b) Effect of Amendments.--The amendments made by 
     subsection (a) shall not affect any basis for distribution of 
     funds by formula (in effect on the date of enactment of this 
     Act) to--
       (1) the Federated States of Micronesia;
       (2) the Republic of the Marshall Islands; or
       (3) the Republic of Palau.

     SEC. 702. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       Section 1408(h) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 703. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       Section 1417 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``and'' after ``economics,''; and
       (B) by inserting ``, and rural economic, community, and 
     business development'' before the period;
       (2) in subsection (b)--
       (A) in paragraph (1), by inserting ``, or in rural 
     economic, community, and business development'' before the 
     semicolon;
       (B) in paragraph (2), by inserting ``, or in rural 
     economic, community, and business development'' before the 
     semicolon;
       (C) in paragraph (3), by inserting ``, or teaching programs 
     emphasizing rural economic, community, and business 
     development'' before the semicolon;
       (D) in paragraph (4), by inserting ``, or programs 
     emphasizing rural economic, community, and business 
     development,'' after ``programs''; and
       (E) in paragraph (5), by inserting ``, or professionals in 
     rural economic, community, and business development'' before 
     the semicolon;
       (3) in subsection (d)--
       (A) in paragraph (1), by inserting ``, or in rural 
     economic, community, and business development,'' after 
     ``sciences''; and
       (B) in paragraph (2), by inserting ``, or in the rural 
     economic, community, and business development workforce,'' 
     after ``workforce''; and
       (4) in subsection (l), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 704. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1417 
     (7 U.S.C. 3152) the following:

     ``SEC. 1417A. COMPETITIVE RESEARCH FACILITIES GRANT PROGRAM.

       ``(a) Authority.--The Secretary may award grants to 
     eligible institutions on a competitive basis for the 
     construction, acquisition, modernization, renovation, 
     alteration, and remodeling of food and agricultural research 
     facilities such as buildings, laboratories, and other capital 
     facilities (including acquisition of fixtures and equipment) 
     in accordance with this section.
       ``(b) Eligible Institutions.--The following institutions 
     are eligible to compete for grants under subsection (a):
       ``(1) A State cooperative institution.
       ``(2) A Hispanic-serving institution.
       ``(c) Criteria for Award.--The Secretary shall award grants 
     to support the national research purposes specified in 
     section 1402 in a manner determined by the Secretary.
       ``(d) Matching.--
       ``(1) In general.--The Secretary may establish such 
     matching requirements for grants under subsection (a) as the 
     Secretary considers appropriate.
       ``(2) Form of match.--Matching requirements established by 
     the Secretary may be met with unreimbursed indirect costs and 
     in-kind contributions.
       ``(3) Evaluation preference.--The Secretary may include an 
     evaluation preference for projects for which the applicant 
     proposes funds for the direct costs of a project to meet the 
     required match.
       ``(e) Targeted Institutions.--The Secretary may determine 
     that a portion of funds made available to carry out this 
     section shall be targeted to particular eligible institutions 
     to enhance the capacity of the eligible institutions to carry 
     out research.
       ``(f) Administration.--
       ``(1) Regulations.--The Secretary shall promulgate such 
     regulations as are necessary to carry out this section.
       ``(2) States with more than 1 eligible institution.--In a 
     State having more than 1 eligible institution, the Secretary 
     shall establish procedures in accordance with the purposes 
     specified in section 1402 to ensure that the facility 
     proposals of the eligible institutions in the State provide 
     for a coordinated food and agricultural research program 
     among eligible institutions in the State.
       ``(g) Applicability of the Federal Advisory Committee 
     Act.--The Federal Advisory Committee Act (5 U.S.C. App.) and 
     title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 
     2281 et seq.) shall not apply to a panel or board created 
     solely for the purpose of reviewing applications or proposals 
     submitted under this section.
       ``(h) Advisory Board.--In carrying out this section, the 
     Secretary shall consult with the Advisory Board.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2002 through 
     2006.''.

[[Page 26788]]



     SEC. 705. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING 
                   OF ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 706. POLICY RESEARCH CENTERS.

       Section 1419A of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155) is 
     amended--
       (1) in subsection (c)(3), by striking ``collect and 
     analyze'' and inserting ``collect, analyze, and 
     disseminate''; and
       (2) in subsection (d), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 707. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

       Section 1424(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 708. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                   AGRICULTURAL RESEARCH.

       Section 1424A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3174a(d)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 709. NUTRITION EDUCATION PROGRAM.

       Section 1425(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(3)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 710. ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

       Section 1433(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
     is amended in the first sentence by striking ``2002'' and 
     inserting ``2006''.

     SEC. 711. RESEARCH ON NATIONAL OR REGIONAL PROBLEMS.

       Section 1434(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 712. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING 
                   INSTITUTIONS.

       Section 1455(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 713. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL 
                   SCIENCE AND EDUCATION PROGRAMS.

       Section 1459A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3292b(c)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 714. INDIRECT COSTS.

       Section 1462 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310) is 
     amended--
       (1) by inserting ``(a) In General.--'' before ``Except'';
       (2) by striking ``19 percent'' and all that follows and 
     inserting ``the negotiated indirect cost rate established for 
     an institution by the cognizant Federal audit agency for the 
     institution.''; and
       (3) by adding at the end the following:
       ``(b) Exception.--Subsection (a) shall not apply to a grant 
     awarded competitively under section 9 of the Small Business 
     Act (15 U.S.C. 638).''.

     SEC. 715. RESEARCH EQUIPMENT GRANTS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1462 
     (7 U.S.C. 3310) the following:

     ``SEC. 1462A. RESEARCH EQUIPMENT GRANTS.

       ``(a) In General.--The Secretary may make competitive 
     grants for the acquisition of special purpose scientific 
     research equipment for use in the food and agricultural 
     sciences programs of eligible institutions described in 
     subsection (b).
       ``(b) Eligible Institutions.--The Secretary may make a 
     grant under this section to--
       ``(1) a college or university; or
       ``(2) a State cooperative institution.
       ``(c) Maximum Amount.--The amount of a grant made to an 
     eligible institution under this section may not exceed 
     $500,000.
       ``(d) Prohibition on Charge of Equipment as Indirect 
     Costs.--The cost of acquisition or depreciation of equipment 
     purchased with a grant under this section shall not be--
       ``(1) charged as an indirect cost against another Federal 
     grant; or
       ``(2) included as part of the indirect cost pool for 
     purposes of calculating the indirect cost rate of an eligible 
     institution.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $50,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 716. AGRICULTURAL RESEARCH PROGRAMS.

       Section 1463 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
     amended--
       (1) in subsection (a), by striking ``$850,000,000 for each 
     of the fiscal years 1991 through 2002'' and inserting 
     ``$1,500,000,000 for each of fiscal years 2002 through 
     2006''; and
       (2) in subsection (b), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 717. EXTENSION EDUCATION.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``$420,000,000'' and all that follows and 
     inserting the following: ``$500,000,000 for each of fiscal 
     years 2002 through 2006.''.

     SEC. 718. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 is amended by inserting after section 1469 
     (7 U.S.C. 3315) the following:

     ``SEC. 1469A. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

       ``Except as otherwise provided by law, funds made available 
     to the Secretary to carry out a competitive agricultural 
     research, education, or extension grant program under this or 
     any other Act shall be available for obligation for a 2-year 
     period beginning on October 1 of the fiscal year for which 
     the funds are made available.''.

     SEC. 719. JOINT REQUESTS FOR PROPOSALS.

       (a) Purposes.--The purposes of this section are--
       (1) to reduce the duplication of administrative functions 
     relating to grant awards and administration among Federal 
     agencies conducting similar types of research, education, and 
     extension programs;
       (2) to maximize the use of peer review resources in 
     research, education, and extension programs; and
       (3) to reduce the burden on potential recipients that may 
     offer similar proposals to receive competitive grants under 
     different Federal programs in overlapping subject areas.
       (b) Authority.--The National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 is amended by 
     inserting after section 1473A (7 U.S.C. 3319a) the following:

     ``SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.

       ``(a) In General.--In carrying out any competitive 
     agricultural research, education, or extension grant program 
     authorized under this or any other Act, the Secretary may 
     cooperate with 1 or more other Federal agencies (including 
     the National Science Foundation) in issuing joint requests 
     for proposals, awarding grants, and administering grants, for 
     similar or related research, education, or extension projects 
     or activities.
       ``(b) Transfer of Funds.--
       ``(1) Secretary.--The Secretary may transfer funds to, or 
     receive funds from, a cooperating Federal agency for the 
     purpose of carrying out the joint request for proposals, 
     making awards, or administering grants.
       ``(2) Cooperating agency.--The cooperating Federal agency 
     may transfer funds to, or receive funds from, the Secretary 
     for the purpose of carrying out the joint request for 
     proposals, making awards, or administering grants.
       ``(3) Limitations.--Funds transferred or received under 
     this subsection shall be--
       ``(A) used only in accordance with the laws authorizing the 
     appropriation of the funds; and
       ``(B) made available by grant only to recipients that are 
     eligible to receive the grant under the laws.
       ``(c) Administration.--
       ``(1) Secretary.--The Secretary may delegate authority to 
     issue requests for proposals, make grant awards, or 
     administer grants, in whole or in part, to a cooperating 
     Federal agency.
       ``(2) Cooperating federal agency.--The cooperating Federal 
     agency may delegate to the Secretary authority to issue 
     requests for proposals, make grant awards, or administer 
     grants, in whole or in part.
       ``(d) Regulations; Rates.--The Secretary and a cooperating 
     Federal agency may agree to make applicable to recipients of 
     grants--
       ``(1) the post-award grant administration regulations and 
     indirect cost rates applicable to recipients of grants from 
     the Secretary; or
       ``(2) the post-award grant administration regulations and 
     indirect cost rates applicable to recipients of grants from 
     the cooperating Federal agency.
       ``(e) Joint Peer Review Panels.--Subject to section 1413B, 
     the Secretary and a cooperating Federal agency may establish 
     joint peer review panels for the purpose of evaluating grant 
     proposals.''.

     SEC. 720. SUPPLEMENTAL AND ALTERNATIVE CROPS.

       Section 1473D(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3319d(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 721. AQUACULTURE.

       Section 1477 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
     amended in the first sentence by striking ``2002'' and 
     inserting ``2006''.

     SEC. 722. RANGELAND RESEARCH.

       Section 1483(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
     is amended by striking ``2002'' and inserting ``2006''.

     SEC. 723. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.

       (a) In General.--The National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et 
     seq.) is amended by adding at the end the following:

[[Page 26789]]



                       ``Subtitle N--Biosecurity

            ``CHAPTER 1--AGRICULTURE INFRASTRUCTURE SECURITY

     ``SEC. 1484. DEFINITIONS.

       ``In this chapter:
       ``(1) Agricultural research facility.--The term 
     `agricultural research facility' means a facility--
       ``(A) at which agricultural research is regularly carried 
     out or proposed to be carried out; and
       ``(B) that is--
       ``(i)(I) an Agricultural Research Service facility;
       ``(II) a Forest Service facility; or
       ``(III) an Animal and Plant Health Inspection Service 
     facility;
       ``(ii) a Federal agricultural facility in the process of 
     being planned or being constructed; or
       ``(iii) any other facility under the full control of the 
     Secretary.
       ``(2) Commission.--The term `Commission' means the 
     Agriculture Infrastructure Security Commission established 
     under section 1486.
       ``(2) Fund.--The term `Fund' means the Agriculture 
     Infrastructure Security Fund Account established by section 
     1485.

     ``SEC. 1485. AGRICULTURE INFRASTRUCTURE SECURITY FUND.

       ``(a) Establishment.--There is established in the Treasury 
     of the United States an account, to be known as the 
     `Agriculture Infrastructure Security Fund Account', 
     consisting of funds appropriated to, or deposited into, the 
     Fund under subsection (c).
       ``(b) Purposes.--The purposes of the Fund are to provide 
     funding to protect and strengthen the Federal food safety and 
     agricultural infrastructure that--
       ``(1) safeguards against animal and plant diseases and 
     pests;
       ``(2) ensures the safety of the food supply; and
       ``(3) ensures sound science in support of food and 
     agricultural policy.
       ``(c) Deposits Into Fund.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Fund such sums as are necessary for each of fiscal 
     years 2002 through 2006.
       ``(2) Contributions and other proceeds.--The Secretary 
     shall deposit into the Fund any funds received--
       ``(A) as proceeds from the sale of assets under subsection 
     (e); or
       ``(B) as gifts under subsection (f).
       ``(3) Availability of funds.--Amounts in the Fund shall 
     remain available until expended without further Act of 
     appropriation.
       ``(4) Additional funds.--Funds made available under 
     paragraph (1) shall be in addition to funds otherwise 
     available to the Secretary to receive gifts and bequests or 
     dispose of property (real, personal, or intangible).
       ``(d) Expenditures From Fund.--
       ``(1) In general.--Subject to paragraph (2), on request by 
     the Secretary, the Secretary of the Treasury shall transfer 
     from the Fund to the Secretary, and the Secretary shall 
     accept and use without further appropriation, such amounts as 
     the Secretary determines to be necessary to pay--
       ``(A) the costs of planning, design, development, 
     construction, acquisition, modernization, leasing, and 
     disposal of facilities, equipment, and technology used by the 
     Department in carrying out programs relating to the purposes 
     specified in subsection (b), notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.) or any other law that prescribes procedures for 
     the procurement, use, or disposal of property or services by 
     a Federal agency;
       ``(B) the costs of specialized services relating to the 
     purposes specified in subsection (b);
       ``(C) the costs of cooperative arrangements authorized to 
     be entered into (notwithstanding chapter 63 of title 31, 
     United States Code) with State, local and tribal governments, 
     and other public and private entities, to carry out programs 
     relating to the purposes specified in subsection (b); and
       ``(D) administrative costs incurred in carrying out 
     subparagraphs (A) through (C).
       ``(2) Limitations.--
       ``(A) Federal employees.--Amounts in the Fund shall not be 
     used to create any new full or part-time permanent Federal 
     employee position.
       ``(B) Administrative expenses.--Beginning in fiscal year 
     2003, not more than 1 percent of the amounts in the Fund on 
     October 1 of a fiscal year may be used in the fiscal year for 
     administrative expenses of the Secretary in carrying out the 
     activities described in paragraph (1).
       ``(e) Sale of Assets.--
       ``(1) Disposal authority.--Notwithstanding the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     471 et seq.), the Secretary by sale may dispose of all or any 
     part of any right or title in land (excluding National Forest 
     System land), facilities, or equipment in the full control of 
     the Department (including land and facilities at the 
     Beltsville Agricultural Research Center) used for the 
     purposes specified in subsection (b).
       ``(2) Disposition of proceeds.--Proceeds from any sale 
     conducted by the Secretary under paragraph (1) shall be 
     deposited into the Fund in accordance with subsection 
     (c)(2)(A).
       ``(f) Gifts.--
       ``(1) In general.--To carry out the purposes specified in 
     subsection (b), the Secretary may accept gifts and bequests 
     of funds, property (real, personal, and intangible), 
     equipment, services, and other in-kind contributions from 
     State, local, and tribal governments, colleges and 
     universities, individuals, and other public and private 
     entities.
       ``(2) Prohibited source.--
       ``(A) In general.--For the purposes of this subsection, the 
     Secretary shall not consider a State or local government, 
     Indian tribe (as defined in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b)), 
     other public entity, or college or university, to be a 
     prohibited source under any Department rule or policy that 
     prohibits the acceptance of gifts from individuals and 
     entities that do business with the Department.
       ``(B) Exception.--Notwithstanding any Department rule or 
     policy that prohibits the acceptance of gifts by the 
     Department from individuals or private entities that do 
     business with the Department or that, for any other reason, 
     are considered to be prohibited sources, the Secretary may 
     accept gifts under this subsection if the Secretary 
     determines that it is in the public interest to accept the 
     gift.
       ``(3) Disposition of gifts.--The Secretary shall deposit 
     any gift of funds under this subsection into the Fund in 
     accordance with subsection (c)(2)(B).

     ``SEC. 1486. AGRICULTURE INFRASTRUCTURE SECURITY COMMISSION.

       ``(a) Establishment.--The Secretary shall establish a 
     commission to be known as the `Agriculture Infrastructure 
     Security Commission' to carry out the duties described in 
     subsection (f).
       ``(b) Membership.--
       ``(1) Appointment.--
       ``(A) Voting members.--
       ``(i) In general.--The Commission shall be composed of 15 
     voting members, appointed by the Secretary in accordance with 
     clause (ii), based on nominations solicited from the public.
       ``(ii) Qualifications.--The Secretary shall appoint members 
     that--

       ``(I) represent a balance of the public and private 
     sectors; and
       ``(II) have combined expertise in--

       ``(aa) facilities development, modernization, construction, 
     security, consolidation, and closure;
       ``(bb) plant diseases and pests;
       ``(cc) animal diseases and pests;
       ``(dd) food safety;
       ``(ee) biosecurity;
       ``(ff) the needs of farmers and ranchers;
       ``(gg) public health;
       ``(hh) State, local, and tribal government; and
       ``(ii) any other area related to agriculture infrastructure 
     security, as determined by the Secretary.
       ``(B) Nonvoting members.--The Commission shall be composed 
     of the following nonvoting members:
       ``(i) The Secretary.
       ``(ii) 4 representatives appointed by the Secretary of 
     Health and Human Services, 1 each from--

       ``(I) the Public Health Service;
       ``(II) the National Institutes of Health;
       ``(III) the Centers for Disease Control and Prevention; and
       ``(IV) the Food and Drug Administration.

       ``(iii) 1 representative appointed by the Attorney General.
       ``(iv) 1 representative appointed by the Director of 
     Homeland Security.
       ``(v) Not more than 4 representatives of the Department 
     appointed by the Secretary.
       ``(2) Date of appointment.--The appointment of each member 
     of the Commission shall be made not later than 90 days after 
     the date of enactment of this subtitle.
       ``(c) Term; Vacancies.--
       ``(1) Term.--The term of office of a member of the 
     Commission shall be 4 years, except that the members 
     initially appointed shall be appointed to serve staggered 
     terms (as determined by the Secretary).
       ``(2) Vacancies.--A vacancy on the Commission shall be 
     filled in the same manner as the original appointment was 
     made.
       ``(d) Meetings.--
       ``(1) In general.--The Commission shall meet at the call 
     of--
       ``(A) the Chairperson;
       ``(B) a majority of the voting members of the Commission; 
     or
       ``(C) the Secretary.
       ``(2) Federal advisory committee act.--
       ``(A) In general.--The Federal Advisory Committee Act (5 
     U.S.C. App.) and title XVIII of the Food and Agriculture Act 
     of 1977 (7 U.S.C. 2281 et seq.) shall not apply to the 
     Commission.
       ``(B) Open meetings; records.--Subject to subparagraph 
     (C)--
       ``(i) a meeting of the Commission shall be--

       ``(I) publicly announced in advance; and
       ``(II) open to the public; and

       ``(ii) the Commission shall--

       ``(I) keep detailed minutes of each meeting and other 
     appropriate records of the activities of the Commission; and
       ``(II) make the minutes and records available to the public 
     on request.

[[Page 26790]]

       ``(C) Exception.--When required in the interest of national 
     security--
       ``(i) the Chairperson may choose not to give public notice 
     of a meeting;
       ``(ii) the Chairperson may close all or a portion of any 
     meeting to the public, and the minutes of the meeting, or 
     portion of a meeting, shall not be made available to the 
     public; and
       ``(iii) by majority vote, the Commission may redact the 
     minutes of a meeting that was open to the public.
       ``(e) Chairperson.--The Secretary shall select a 
     Chairperson from among the voting members of the Commission.
       ``(f) Duties.--
       ``(1) In general.--The Commission shall--
       ``(A) advise the Secretary on the uses of the Fund;
       ``(B) review all agricultural research facilities for--
       ``(i) research importance; and
       ``(ii) importance to agriculture infrastructure security;
       ``(C) identify any agricultural research facility that 
     should be closed, realigned, consolidated, or modernized to 
     carry out the research agenda of the Secretary and protect 
     agriculture infrastructure security;
       ``(D) develop recommendations concerning agricultural 
     research facilities; and
       ``(E)(i) evaluate the agricultural research facilities 
     acquisition and modernization system (including acquisitions 
     by gift, grant, or any other form of agreement) used by the 
     Department; and
       ``(ii) based on the evaluation, recommend improvements to 
     the system.
       ``(2) Strategic plan.--To assist the Commission in carrying 
     out the duties described in paragraph (1), the Commission 
     shall use the 10-year strategic plan prepared by the 
     Strategic Planning Task Force established under section 4 of 
     the Research Facilities Act (7 U.S.C. 390b).
       ``(3) Report.--
       ``(A) In general.--Not later than 240 days after the date 
     of enactment of this subtitle, and each June 1 thereafter, 
     the Commission shall prepare and submit to the Secretary, the 
     Committee on Agriculture and the Committee on Appropriations 
     of the House of Representatives, and the Committee on 
     Agriculture, Nutrition, and Forestry and the Committee on 
     Appropriations of the Senate, a report on the findings and 
     recommendations under paragraph (1).
       ``(B) Written response.--Not later than 90 days after the 
     date of receipt of a report from the Commission under 
     subparagraph (A), the Secretary shall provide to the 
     Commission a written response concerning the manner and 
     extent to which the Secretary will implement the 
     recommendations in the report.
       ``(C) Public availability.--
       ``(i) In general.--Subject to clause (ii), the report 
     submitted by the Commission, and any response made by the 
     Secretary, under this subsection shall be available to the 
     public.
       ``(ii) Exception.--

       ``(I) National security.--The Commission or the Secretary 
     may determine that any report or response, or any portion of 
     a report or response, shall not be publicly released in the 
     interest of national security.
       ``(II) Freedom of information act.--On such a 
     determination, the report or response, a portion of the 
     report or response, or any records relating to the report or 
     response, shall not be released under section 552 of title 5, 
     United States Code.

       ``(g) Commission Personnel Matters.--
       ``(1) Compensation of members.--
       ``(A) Non-federal employees.--A voting member of the 
     Commission who is not a regular full-time employee of the 
     Federal Government shall, while attending meetings of the 
     Commission or otherwise engaged in the business of the 
     Commission (including travel time), be entitled to receive 
     compensation at a rate fixed by the Secretary, but not 
     exceeding the daily equivalent of the annual rate specified 
     at the time of such service under GS-15 of the General 
     Schedule established under section 5332 of title 5, United 
     States Code.
       ``(B) Travel expenses.--A voting member of the Commission 
     shall be allowed travel expenses, including per diem in lieu 
     of subsistence, at rates authorized for an employee of an 
     agency under subchapter I of chapter 57 of title 5, United 
     States Code, while away from the home or regular place of 
     business of the member in the performance of the duties of 
     the Commission.
       ``(2) Staff.--The Secretary shall provide the Commission 
     with any personnel and other resources as the Secretary 
     determines appropriate.
       ``(h) Funding.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as are necessary for each of fiscal years 2002 through 
     2006.
       ``(2) Agriculture infrastructure security fund.--For the 
     purpose of establishing the Commission, the Secretary shall 
     use such sums from the Fund as the Secretary determines to be 
     appropriate.

                ``CHAPTER 2--OTHER BIOSECURITY PROGRAMS

     ``SEC. 1487. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING 
                   AND RESPONSE.

       ``(a) Authorization of Appropriations.--In addition to 
     amounts for agricultural research, extension, and education 
     under this Act, there are authorized to be appropriated for 
     agricultural research, education, and extension activities 
     for biosecurity planning and response such sums as are 
     necessary for each of fiscal years 2002 through 2006.
       ``(b) Use of Funds.--Using any authority available to the 
     Secretary, the Secretary shall use funds made available under 
     this section to carry out agricultural research, education, 
     and extension activities (including through competitive 
     grants) necessary--
       ``(1) to reduce the vulnerability of the United States food 
     and agricultural system to chemical or biological attack;
       ``(2) to continue joint research initiatives between the 
     Agricultural Research Service, universities, and industry on 
     counterbioterrorism efforts (including continued funding of a 
     consortium in existence on the date of enactment of this 
     subtitle of which the Agricultural Research Service and 
     universities are members);
       ``(3) to make competitive grants to universities and 
     qualified research institutions for research on 
     counterbioterrorism; and
       ``(4) to counter or otherwise respond to chemical or 
     biological attack.

     ``SEC. 1488. AGRICULTURE BIOTERRORISM RESEARCH FACILITIES.

       ``(a) Definitions.--In this section:
       ``(1) Construction.--The term `construction' includes--
       ``(A) the construction of new buildings; and
       ``(B) the expansion, renovation, remodeling, and alteration 
     of existing buildings.
       ``(2) Cost.--
       ``(A) In general.--The term `cost' means any construction 
     cost, including architects' fees.
       ``(B) Exclusions.--The term `cost' does not include the 
     cost of--
       ``(i) acquiring land or an interest in land; or
       ``(ii) constructing any offsite improvement.
       ``(3) Eligible entity.--The term `eligible entity' means a 
     college or university that--
       ``(A) is a land grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)); 
     and
       ``(B) as determined by the Secretary, has--
       ``(i) demonstrated expertise in the area of animal and 
     plant diseases;
       ``(ii) substantial animal and plant diagnostic 
     laboratories; and
       ``(iii) well-established working relationships with--

       ``(I) the agricultural industry; and
       ``(II) farm and commodity organizations.

       ``(b) Modernization and Construction of Facilities.--
       ``(1) In general.--To enhance the security of agriculture 
     in the United States against threats posed by bioterrorism, 
     the Secretary shall make construction grants, on a 
     competitive basis, to eligible entities.
       ``(2) Limitation on grants.--An eligible entity shall not 
     receive grant funds under this section that, in any fiscal 
     year, exceed $10,000,000.
       ``(c) Requirements for Grants.--
       ``(1) In general.--The Secretary shall make a grant to an 
     eligible entity under this section only if, with respect to 
     any facility constructed using grant funds, the eligible 
     entity--
       ``(A) submits to the Secretary, in such form, in such 
     manner, and containing such agreements, assurances, and 
     information as the Secretary may require, an application for 
     the grant;
       ``(B) is determined by the Secretary to be competent to 
     engage in the type of research for which the facility is 
     proposed to be constructed;
       ``(C) provides such assurances as the Secretary determines 
     to be satisfactory that--
       ``(i) for not less than 20 years after the date of 
     completion of the facility, the facility shall be used for 
     the purposes of the research for which the facility was 
     constructed, as described in the grant application;
       ``(ii) sufficient funds are available to pay the non-
     Federal share of the cost of constructing the facility;
       ``(iii) sufficient funds will be available, as of the date 
     of completion of the construction, for the effective use of 
     the facility for the purposes of the research for which the 
     facility was constructed; and
       ``(iv) the proposed construction--

       ``(I) will increase the capability of the eligible entity 
     to conduct research for which the facility was constructed; 
     or
       ``(II) is necessary to improve or maintain the quality of 
     the research of the eligible entity;

       ``(D) meets such reasonable qualifications as may be 
     established by the Secretary with respect to--
       ``(i) the relative scientific and technical merit of the 
     applications, and the relative effectiveness of facilities 
     proposed to be constructed, in expanding the quality of, and 
     the capacity of eligible entities to carry out, biosecurity 
     research;
       ``(ii) the quality of the research to be carried out in 
     each facility constructed;
       ``(iii) the need for the research activities to be carried 
     out within the facility as those activities relate to 
     research needs of the

[[Page 26791]]

     United States in securing, and ensuring the safety of, the 
     food supply of the United States;
       ``(iv) the age and condition of existing research 
     facilities of the eligible entity; and
       ``(v) biosafety and biosecurity requirements necessary to 
     protect facility staff, members of the public, and the food 
     supply; and


       ``(E) has demonstrated a commitment to enhancing and 
     expanding the research productivity of the eligible entity.
       ``(2) Priority.--In providing grants under this section, 
     the Secretary shall give priority to an eligible entity that, 
     as determined by the Secretary, has demonstrated expertise 
     in--
       ``(A) animal and plant disease prevention;
       ``(B) pathogen and toxin mitigation;
       ``(C) cereal disease resistance;
       ``(D) grain milling and processing;
       ``(E) livestock production practices;
       ``(F) vaccine development;
       ``(G) meat processing;
       ``(H) pathogen detection and control; or
       ``(I) food safety.
       ``(d) Amount of Grant.--The amount of a grant awarded under 
     this section shall be determined by the Secretary.
       ``(e) Federal Share.--The Federal share of the cost of any 
     construction carried out using funds from a grant provided 
     under this section shall not exceed 50 percent.
       ``(f) Guidelines.--Not later than 180 days after the date 
     of enactment of this subtitle, the Secretary shall issue 
     guidelines with respect to the provision of grants under this 
     section.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $100,000,000 for 
     each of fiscal years 2003 through 2005.''.
       (b) Sense of Congress on Increasing Capacity for Research 
     on Biosecurity and Animal and Plant Health Diseases.--It is 
     the sense of Congress that funding for the Agricultural 
     Research Service, the Animal and Plant Health Inspection 
     Service, and other agencies of the Department of Agriculture 
     with responsibilities for biosecurity should be increased as 
     necessary to improve the capacity of the agencies to conduct 
     research and analysis of, and respond to, bioterrorism and 
     animal and plant diseases.

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

     SEC. 731. NATIONAL GENETIC RESOURCES PROGRAM.

       Section 1635(b) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 732. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

       Section 1668 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5921) is amended--
       (1) by redesignating subsections (e) through (g) as 
     subsections (f) through (h), respectively; and
       (2) by inserting after subsection (d) the following:
       ``(e) Grant Priority.--In selecting projects for which 
     grants shall be made under this section, the Secretary shall 
     give priority to public and private research or educational 
     institutions and organizations the goals of which include--
       ``(1) formation of interdisciplinary teams to review or 
     conduct research on the environmental effects of the release 
     of new genetically modified agricultural products;
       ``(2) conduct of studies relating to biosafety of 
     genetically modified agricultural products;
       ``(3) evaluation of the cost and benefit for development of 
     an identity preservation system for genetically modified 
     agricultural products;
       ``(4) establishment of international partnerships for 
     research and education on biosafety issues; or
       ``(5) formation of interdisciplinary teams to renew and 
     conduct research on the nutritional enhancement and 
     environmental benefits of genetically modified agricultural 
     products.''.

     SEC. 733. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

       Section 1672 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925) is amended
       (1) in subsection (e), by adding at the end the following:
       ``(25) Animal infectious diseases research and extension.--
       ``(A) In general.--Research and extension grants may be 
     made under this section for the purpose of developing--
       ``(i) prevention and control methodologies for animal 
     infectious diseases that impact trade, including vesicular 
     stomatitis, bovine tuberculosis, transmissible spongiform 
     encephalopathy, brucellosis, and E. coli 0157:H7 infection;
       ``(ii) laboratory tests for quicker detection of infected 
     animals and presence of diseases among herds;
       ``(iii) prevention strategies, including vaccination 
     programs; and
       ``(iv) rapid diagnostic techniques for, and evaluation of, 
     animal disease agents considered to be risks for agricultural 
     bioterrorism attack.
       ``(B) Collaboration.--Research under subparagraph (A) may 
     be conducted in collaboration with scientists from the 
     Department, other Federal agencies, universities, and 
     industry.
       ``(C) Evaluation of diagnostic techniques and vaccines.--
     Any research on or evaluation of diagnostic techniques and 
     vaccines under subparagraph (A) shall include evaluation of 
     diagnostic techniques and vaccines under field conditions in 
     countries in which the animal disease occurs.
       ``(26) Program to combat childhood obesity.--Research and 
     extension grants may be made under this section to consortia 
     of institutions of higher education that specialize in 
     obesity and nutrition research to develop and implement 
     effective strategies to reduce the incidence of childhood 
     obesity.
       ``(27) Integrated pest management.--Research and extension 
     grants may be made under this section to land grant colleges 
     and universities, other Federal agencies, and other 
     interested persons to coordinate and improve research, 
     education, and outreach on, and implementation on farms of, 
     integrated pest management.
       ``(28) Beef cattle genetics.--
       ``(A) In general.--Research and extension grants for beef 
     cattle genetics evaluation research may be made under this 
     section to institutions of higher education, or consortia of 
     institutions of higher education, that--
       ``(i) have expertise in beef cattle genetic evaluation 
     research and technology; and
       ``(ii) have been actively involved, for at least 20 years, 
     in the estimation and prediction of progeny differences for 
     publication and use by seed stock producer breed 
     associations.
       ``(B) Priority.--In making grants under subparagraph (A), 
     the Secretary shall give priority to proposals to--
       ``(i) establish and coordinate priorities for genetic 
     evaluation of domestic beef cattle;
       ``(ii) consolidate research efforts to reduce duplication 
     of effort and maximize the return to beef industry;
       ``(iii) streamline the process between the development and 
     adoption of new genetic evaluation methodologies by the 
     industry;
       ``(iv) identify new traits and technologies for inclusion 
     in genetic programs in order to--

       ``(I) reduce the costs of beef production; and
       ``(II) provide consumers with a high nutritional value, 
     healthy, and affordable protein source; or

       ``(v) create decisionmaking tools that incorporate the 
     increasing number of traits being evaluated and the 
     increasing amount of information from DNA technology into 
     genetic improvement programs, with the goal of optimizing the 
     overall efficiency, product quality and safety, and health of 
     the domestic beef cattle herd resource.''; and
       (2) in subsection (h), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 734. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672A(g) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5925a(g)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 735. ORGANIC AGRICULTURE RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672B of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925b) is amended--
       (1) in subsection (a)--
       (A) by inserting after ``Board,'' the following: ``and the 
     National Organic Standards Board,'';
       (B) in paragraph (2), by striking ``and'' at the end;
       (C) in paragraph (3), by striking the period at the end and 
     inserting a semicolon; and
       (D) by adding at the end the following:
       ``(4) determining desirable traits for organic commodities 
     using advanced genomics;
       ``(5) pursuing classical and marker-assisted breeding for 
     publicly held varieties of crops and animals optimized for 
     organic systems;
       ``(6) identifying marketing and policy constraints on the 
     expansion of organic agriculture; and
       ``(7) conducting advanced on-farm research and development 
     that emphasizes observation of, experimentation with, and 
     innovation for working organic farms, including research 
     relating to production and to socioeconomic conditions.''; 
     and
       (2) in subsection (e), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 736. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 737. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680(c)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
     striking ``2002'' and inserting ``2006''.

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

     SEC. 741. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

       Section 401 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7621) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Funding.--
       ``(1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, the

[[Page 26792]]

     Secretary of the Treasury shall transfer to the Account to 
     carry out this section--
       ``(A) on October 1, 1998 and each October 1 thereafter 
     through October 1, 2001, $120,000,000; and
       ``(B) on October 1, 2002, and each October 1 thereafter 
     through October 1, 2005, $145,000,000.
       ``(2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive, shall accept, and shall use to carry out 
     this section the funds transferred under paragraph (1), 
     without further appropriation.''; and
       (2) in subsection (e), by adding at the end the following:
       ``(3) Minority-serving institutions.--The Secretary shall 
     consider reserving, to the maximum extent practicable, 10 
     percent of the funds made available to carry out this section 
     for a fiscal year for grants to minority-serving 
     institutions.''.

     SEC. 742. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 
                   QUALITY RESEARCH.

       Section 402(g) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 743. PRECISION AGRICULTURE.

       Section 403(i)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7623(i)(1)) is 
     amended by striking ``2002'' and inserting ``2006''.

     SEC. 744. BIOBASED PRODUCTS.

       Section 404 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7624) is amended--
       (1) in subsection (e)(2), by striking ``2001'' and 
     inserting ``2006''; and
       (2) in subsection (h), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 745. THOMAS JEFFERSON INITIATIVE FOR CROP 
                   DIVERSIFICATION.

       Section 405(h) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 746. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 
                   COMPETITIVE GRANTS PROGRAM.

       Section 406 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626) is amended--
       (1) by redesignating subsection (e) as subsection (f);
       (2) by inserting after subsection (d) the following:
       ``(e) Term of Grant.--A grant under this section shall have 
     a term of not more than 5 years.''; and
       (3) in subsection (f) (as so redesignated), by striking 
     ``2002'' and inserting ``2006''.

     SEC. 747. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT 
                   AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM.

       Section 408(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by 
     striking ``2002'' and inserting ``2006''.

     SEC. 748. FOOD ANIMAL RESIDUE AVOIDANCE DATABASE PROGRAM.

       Section 604 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7642) is amended by 
     adding at the end the following:
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $1,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 749. OFFICE OF PEST MANAGEMENT POLICY.

       Section 614(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
     striking ``2002'' and inserting ``2006''.

                     Subtitle D--Land-Grant Funding

                      CHAPTER 1--1862 INSTITUTIONS

     SEC. 751. CARRYOVER.

       Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g) is 
     amended by striking subsection (c) and inserting the 
     following:
       ``(c) Carryover.--
       ``(1) In general.--The balance of any annual funds provided 
     under this Act to a State agricultural experiment station for 
     a fiscal year that remains unexpended at the end of the 
     fiscal year may be carried over for use during the following 
     fiscal year.
       ``(2) Failure to expend full allotment.--If any unexpended 
     balance carried over by a State is not expended by the end of 
     the second fiscal year, an amount equal to the unexpended 
     balance shall be deducted from the next succeeding annual 
     allotment to the State.''.

     SEC. 752. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

       Section 7(e) of the Hatch Act of 1887 (7 U.S.C. 361g(e)) is 
     amended by adding at the end the following:
       ``(5) The technology transfer activities conducted with 
     respect to federally-funded agricultural research.''.

     SEC. 753. COMPLIANCE WITH MULTISTATE AND INTEGRATION 
                   REQUIREMENTS.

       (a) Multistate Cooperative Extension Activities.--Section 3 
     of the Smith-Lever Act (7 U.S.C. 343) is amended by striking 
     subsection (h) and inserting the following:
       ``(h) Multistate Cooperative Extension Activities.--
       ``(1) Definition of multistate activity.--In this 
     subsection, the term `multistate activity' means a 
     cooperative extension activity in which 2 or more States 
     cooperate to resolve problems that concern more than 1 State.
       ``(2) Requirement.--
       ``(A) In general.--To receive funding under subsections (b) 
     and (c) for a fiscal year, a State must have expended on 
     multistate activities, in the preceding fiscal year, an 
     amount equivalent to not less than 25 percent of the funds 
     paid to the State under subsections (b) and (c) for the 
     preceding fiscal year.
       ``(B) Determination of amount.--In determining compliance 
     with subparagraph (A), the Secretary shall include all 
     cooperative extension funds expended by the State in the 
     preceding fiscal year, including Federal, State, and local 
     funds.
       ``(3) Reduction of percentage.--The Secretary may reduce 
     the minimum percentage required to be expended for multistate 
     activities under paragraph (2) by a State in a case of 
     hardship, unfeasibility, or other similar circumstances 
     beyond the control of the State, as determined by the 
     Secretary.
       ``(4) Plan of work.--The State shall include in the plan of 
     work of the State required under section 4 a description of 
     the manner in which the State will meet the requirements of 
     this subsection.
       ``(5) Applicability.--This subsection does not apply to 
     funds provided--
       ``(A) to a 1994 Institution (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)); or
       ``(B) to the Commonwealth of Puerto Rico, the Virgin 
     Islands, or Guam.''.
       (b) Integrated Research and Extension Activities.--Section 
     3 of the Hatch Act of 1887 (7 U.S.C. 361c) is amended by 
     striking subsection (i) and inserting the following:
       ``(i) Integrated Research and Extension Activities.--
       ``(1) In general.--
       ``(A) Requirement.--To receive funding under this Act and 
     subsections (b) and (c) of section 3 of the Smith-Lever Act 
     (7 U.S.C. 343) for a fiscal year, a State must have expended 
     on activities that integrate cooperative research and 
     extension (referred to in this section as `integrated 
     activities'), in the preceding fiscal year, an amount 
     equivalent to not less than 25 percent of the funds paid to 
     the State under this section and subsections (b) and (c) of 
     section 3 of the Smith-Lever Act (7 U.S.C. 343) for the 
     preceding fiscal year.
       ``(B) Determination of amount.--In determining compliance 
     with subparagraph (A), the Secretary shall include all 
     cooperative research and extension funds expended by the 
     State in the prior fiscal year, including Federal, State, and 
     local funds.
       ``(2) Reduction of percentage.--The Secretary may reduce 
     the minimum percentage required to be expended for integrated 
     activities under paragraph (1) by a State in a case of 
     hardship, unfeasibility, or other similar circumstances 
     beyond the control of the State, as determined by the 
     Secretary.
       ``(3) Plan of work.--The State shall include in the plan of 
     work of the State required under section 7 of this Act and 
     under section 4 of the Smith-Lever Act (7 U.S.C. 344), as 
     applicable, a description of the manner in which the State 
     will meet the requirements of this subsection.
       ``(4) Applicability.--This subsection does not apply to 
     funds provided--
       ``(A) to a 1994 Institution (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)); or
       ``(B) to the Commonwealth of Puerto Rico, the Virgin 
     Islands, or Guam.
       ``(5) Relationship to other requirements.--Funds described 
     in paragraph (1)(B) that a State uses to calculate the 
     required amount of expenditures for integrated activities 
     under paragraph (1)(A) may also be used in the same fiscal 
     year to calculate the amount of expenditures for multistate 
     activities required under subsection (c)(3) of this section 
     and section 3(h) of the Smith-Lever Act (7 U.S.C. 343(h)).''.
       (c) Effective Date.--The amendments made by this section 
     take effect on October 1, 2002.

                      CHAPTER 2--1994 INSTITUTIONS

     SEC. 754. EXTENSION AT 1994 INSTITUTIONS.

       Section 3(b) of the Smith-Lever Act (7 U.S.C. 343(b)) is 
     amended by striking paragraph (3) and inserting the 
     following:
       ``(3) Extension at 1994 institutions.--
       ``(A) In general.--There are authorized to be appropriated 
     for fiscal year 2002 and each subsequent fiscal year, for 
     payment to 1994 Institutions (as defined in section 532 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382)), such sums as are 
     necessary for the purposes set forth in section 2, to remain 
     available until expended.
       ``(B) Distribution.--Amounts made available under 
     subparagraph (A)--
       ``(i) shall be distributed on the basis of a formula to be 
     developed and implemented by the Secretary, in consultation 
     with the 1994 Institutions; and
       ``(ii) may include payments for extension activities 
     carried out during 1 or more fiscal years.
       ``(C) Cooperative agreement.--In accordance with such 
     regulations as the Secretary may promulgate, a 1994 
     Institution may administer funds received under this 
     paragraph through a cooperative agreement with an 1862 
     Institution or an 1890 Institution (as

[[Page 26793]]

     those terms are defined in section 2 of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7601)).''.

     SEC. 755. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 
                   1994.

       (a) Technical Amendment To Reflect Name Changes.--Section 
     532 of the Equity in Educational Land-Grant Status Act of 
     1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking paragraphs (1) through (30) and inserting the 
     following:
     ``(1) Bay Mills Community College.
     ``(2) Blackfeet Community College.
     ``(3) Cankdeska Cikana Community College.
     ``(4) College of Menominee Nation.
     ``(5) Crownpoint Institute of Technology.
     ``(6) D-Q University.
     ``(7) Dine College.
     ``(8) Dull Knife Memorial College.
     ``(9) Fond du Lac Tribal and Community College.
     ``(10) Fort Belknap College.
     ``(11) Fort Berthold Community College.
     ``(12) Fort Peck Community College.
     ``(13) Haskell Indian Nations University.
     ``(14) Institute of American Indian and Alaska Native Culture 
     and Arts Development.
     ``(15) Lac Courte Oreilles Ojibwa Community College.
     ``(16) Leech Lake Tribal College.
     ``(17) Little Big Horn College.
     ``(18) Little Priest Tribal College.
     ``(19) Nebraska Indian Community College.
     ``(20) Northwest Indian College.
     ``(21) Oglala Lakota College.
     ``(22) Salish Kootenai College.
     ``(23) Sinte Gleska University.
     ``(24) Sisseton Wahpeton Community College.
     ``(25) Si Tanka/Huron University.
     ``(26) Sitting Bull College.
     ``(27) Southwestern Indian Polytechnic Institute.
     ``(28) Stone Child College.
     ``(29) Turtle Mountain Community College.
     ``(30) United Tribes Technical College.
     ``(31) White Earth Tribal and Community College.''.
       (b) Accreditation Requirement for Research Grants.--Section 
     533(a)(3) of the Equity in Educational Land-Grant Status Act 
     of 1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking ``sections 534 and 535'' and inserting ``sections 
     534, 535, and 536''.
       (c) Land-Grant Status for 1994 Institutions.--Section 
     533(b) of the Equity in Educational Land-Grant Status Act of 
     1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
     striking ``$4,600,000 for each of fiscal years 1996 through 
     2002'' and inserting ``such sums as are necessary for each of 
     fiscal years 2002 through 2006''.
       (d) Change of Indian Student Count Formula.--Section 
     533(c)(4)(A) of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is 
     amended by striking ``(as defined in section 390(3) of the 
     Carl D. Perkins Vocational and Applied Technology Education 
     Act (20 U.S.C. 2397h(3)) for each 1994 Institution for the 
     fiscal year'' and inserting ``(as defined in section 2(a) of 
     the Tribally Controlled College or University Assistance Act 
     of 1978 (25 U.S.C. 1801(a)))''.
       (e) Increase in Institutional Payments.--Section 
     534(a)(1)(A) of the Equity in Educational Land-Grant Status 
     Act of 1994 (7 U.S.C. 301 note; Public Law 103-382) is 
     amended by striking ``$50,000'' and inserting ``$100,000''.
       (f) Institutional Capacity Building Grants.--Section 535 of 
     the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note; Public Law 103-382) is amended--
       (1) in subsection (b)(1), by striking ``2002'' and 
     inserting ``2006''; and
       (2) in subsection (c), by striking ``$1,700,000 for each of 
     fiscal years 1996 through 2002'' and inserting ``such sums as 
     are necessary for each of fiscal years 2002 through 2006''.
       (g) Research Grants.--Section 536(c) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note; 
     Public Law 103-382) is amended by striking ``2002'' and 
     inserting ``2006''.

     SEC. 756. ELIGIBILITY FOR INTEGRATED GRANTS PROGRAM.

       Section 406(b) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by 
     inserting ``and 1994 Institutions'' before ``on a competitive 
     basis''.

                      CHAPTER 3--1890 INSTITUTIONS

     SEC. 757. AUTHORIZATION PERCENTAGES FOR RESEARCH AND 
                   EXTENSION FORMULA FUNDS.

       (a) Extension.--Section 1444(a) of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3221(a)) is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There'';
       (2) by striking the second sentence; and
       (3) in the third sentence, by striking ``Beginning'' 
     through ``6 per centum'' and inserting the following:
       ``(2) Minimum amount.--Beginning with fiscal year 2002, 
     there shall be appropriated under this section for each 
     fiscal year an amount that is not less than 15 percent'';
       (3) by striking ``Funds appropriated'' and inserting the 
     following:
       ``(3) Uses.--Funds appropriated''; and
       (4) by striking ``No more'' and inserting the following:
       ``(4) Carryover.--No more''.
       (b) Research.--Section 1445(a) of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3222(a)) is amended--
       (1) by striking ``(a) There'' and inserting the following:
       ``(a) Authorization of Appropriations.--
       ``(1) In general.--There'';
       (2) by striking the second sentence and inserting the 
     following:
       ``(2) Minimum amount.--Beginning with fiscal year 2002, 
     there shall be appropriated under this section for each 
     fiscal year an amount that is not less than 25 percent of the 
     total appropriations for the fiscal year under section 3 of 
     the Hatch Act of 1887 (7 U.S.C. 361c).'';
       (3) by striking ``Funds appropriated'' and inserting the 
     following:
       ``(3) Uses.--Funds appropriated'';
       (4) by striking ``The eligible'' and inserting the 
     following:
       ``(4) Coordination.--The eligible''; and
       (5) by striking ``No more'' and inserting the following:
       ``(5) Carryover.--No more''.

     SEC. 758. CARRYOVER.

       Section 1445(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a) 
     (as amended by section 757(b)) is amended by striking 
     paragraph (5) and inserting the following:
       ``(5) Carryover.--
       ``(A) In general.--The balance of any annual funds provided 
     to an eligible institution for a fiscal year under this 
     section that remains unexpended at the end of the fiscal year 
     may be carried over for use during the following fiscal year.
       ``(B) Failure to expend full amount.--If any unexpended 
     balance carried over by an eligible institution is not 
     expended by the end of the second fiscal year, an amount 
     equal to the unexpended balance shall be deducted from the 
     next succeeding annual allotment to the eligible 
     institution.''.

     SEC. 759. REPORTING OF TECHNOLOGY TRANSFER ACTIVITIES.

       Section 1445(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222(c)(3)) is amended by adding at the end the following:
       ``(F) The technology transfer activities conducted with 
     respect to federally-funded agricultural research.''.

     SEC. 760. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                   FACILITIES AT 1890 LAND-GRANT COLLEGES, 
                   INCLUDING TUSKEGEE UNIVERSITY.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is amended by striking ``$15,000,000 for each of 
     fiscal years 1996 through 2002'' and inserting ``$25,000,000 
     for each of fiscal years 2002 through 2006''.

     SEC. 761. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.

       Section 1448 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) 
     is amended by striking ``2002'' each place it appears in 
     subsections (a)(1) and (f) and inserting ``2006''.

     SEC. 762. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES.

       Section 1449 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d) 
     is amended by striking subsections (c) and (d) and inserting 
     the following:
       ``(c) Matching Formula.--
       ``(1) In general.--For each of fiscal years 2003 through 
     2006, the State shall provide matching funds from non-Federal 
     sources.
       ``(2) Amount.--The amount of the matching funds shall be 
     equal to not less than--
       ``(A) for fiscal year 2003, 60 percent of the formula funds 
     to be distributed to the eligible institution; and
       ``(B) for each of fiscal years 2004 through 2006, 110 
     percent of the amount required under this paragraph for the 
     preceding fiscal year.
       ``(d) Waivers.--Notwithstanding subsection (f), for any of 
     fiscal years 2003 through 2006, the Secretary may waive the 
     matching funds requirement under subsection (c) for any 
     amount above the level of 50 percent for an eligible 
     institution of a State if the Secretary determines that the 
     State will be unlikely to meet the matching requirement.''.

                   CHAPTER 4--LAND-GRANT INSTITUTIONS

                         Subchapter A--General

     SEC. 771. PRIORITY-SETTING PROCESS.

       Section 102(c)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7612(c)(1)) is 
     amended--
       (1) by striking ``establish and implement a process for 
     obtaining'' and inserting ``obtain public''; and
       (2) by striking the period at the end and inserting the 
     following: ``through a process that reflects transparency and 
     opportunity for input from producers of diverse agricultural 
     crops and diverse geographic and cultural communities.''.

     SEC. 772. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.

       (a) Termination.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     terminate each appointment listed as an excepted position 
     under schedule A of the General Schedule made by the 
     Secretary to the Federal

[[Page 26794]]

     civil service of an individual who holds dual government 
     appointments, and who carries out agricultural extension work 
     in a program at a college or university eligible to receive 
     funds, under--
       (1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
       (2) section 1444 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3221); 
     or
       (3) section 208(e) of the District of Columbia Public 
     Postsecondary Education Reorganization Act (88 Stat. 1428).
       (b) Continuation of Certain Federal Benefits.--
       (1) In general.--Notwithstanding title 5, United States 
     Code, and subject to paragraph (2), an individual described 
     in subsection (a), during the period the individual is 
     employed in an agricultural extension program described in 
     subsection (a) without a break in service, shall continue 
     to--
       (A) be eligible to participate, to the same extent that the 
     individual was eligible to participate (on the day before the 
     date of enactment of this Act), in--
       (i) the Federal Employee Health Benefits Program;
       (ii) the Federal Employee Group Life Insurance Program;
       (iii) the Civil Service Retirement System;
       (iv) the Federal Employee Retirement System; and
       (v) the Thrift Savings Plan; and
       (B) receive Federal Civil Service employment credit to the 
     same extent that the individual was receiving such credit on 
     the day before the date of enactment of this Act.
       (2) Limitations.--An individual may continue to be eligible 
     for the benefits described in paragraph (1) if--
       (A) in the case of an individual who remains employed in 
     the agricultural extension program described in subsection 
     (a) on the date of the enactment of this Act, the employing 
     college or university continues to fulfill the administrative 
     and financial responsibilities (including making agency 
     contributions) associated with providing those benefits, as 
     determined by the Secretary of Agriculture; and
       (B) in the case of an individual who changes employment to 
     a second college or university described in subsection (a)--
       (i) the individual continues to work in an agricultural 
     extension program described in subsection (a), as determined 
     by the Secretary of Agriculture;
       (ii) the second college or university--

       (I) fulfills the administrative and financial 
     responsibilities (including making agency contributions) 
     associated with providing those benefits, as determined by 
     the Secretary of Agriculture; and
       (II) within 120 days before the date of the employment of 
     the individual, had employed a different individual described 
     in subsection (a) who had performed the same duties of 
     employment; and

       (iii) the individual was eligible for those benefits on the 
     day before the date of enactment of this Act.

         Subchapter B--Land-Grant Institutions in Insular Areas

     SEC. 775. DISTANCE EDUCATION GRANTS PROGRAM FOR INSULAR AREA 
                   LAND-GRANT INSTITUTIONS.

       The National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3101 et seq.) (as amended by 
     section 723) is amended by adding at the end the following:

         ``Subtitle 0--Land Grant Institutions in Insular Areas

     ``SEC. 1489. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

       ``(a) In General.--The Secretary may make competitive or 
     noncompetitive grants to State cooperative institutions in 
     insular areas to strengthen the capacity of State cooperative 
     institutions to carry out distance food and agricultural 
     education programs using digital network technologies.
       ``(b) Use.--Grants made under this section shall be used--
       ``(1) to acquire the equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, and infrastructure necessary to teach students 
     and teachers about technology in the classroom;
       ``(2) to develop and provide educational services 
     (including faculty development) to prepare students or 
     faculty seeking a degree or certificate that is approved by 
     the State or a regional accrediting body recognized by the 
     Secretary of Education;
       ``(3) to provide teacher education, library and media 
     specialist training, and preschool and teacher aid 
     certification to individuals who seek to acquire or enhance 
     technology skills in order to use technology in the classroom 
     or instructional process;
       ``(4) to implement a joint project to provide education 
     regarding technology in the classroom with a local 
     educational agency, community-based organization, national 
     nonprofit organization, or business, including a minority 
     business or a business located in a HUBZone established under 
     section 31 of the Small Business Act (15 U.S.C. 657a); or
       ``(5) to provide leadership development to administrators, 
     board members, and faculty of eligible institutions with 
     institutional responsibility for technology education.
       ``(c) Limitation on Use of Grant Funds.--Funds provided 
     under this section shall not be used for the planning, 
     acquisition, construction, rehabilitation, or repair of a 
     building or facility.
       ``(d) Administration of Program.--The Secretary may carry 
     out this section in a manner that recognizes the different 
     needs and opportunities for State cooperative institutions in 
     the Atlantic and Pacific Oceans.
       ``(e) Matching Requirement.--
       ``(1) In general.--The Secretary may establishment a 
     requirement that a State cooperative institution receiving a 
     grant under this section shall provide matching funds from 
     non-Federal sources in an amount equal to not less than 50 
     percent of the grant.
       ``(2) Waivers.--If the Secretary establishes a matching 
     requirement under paragraph (1), the requirement shall 
     include an option for the Secretary to waive the requirement 
     for an insular area State cooperative institution for any 
     fiscal year if the Secretary determines that the institution 
     will be unlikely to meet the matching requirement for the 
     fiscal year.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $4,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 776. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION 
                   FORMULA FUNDS FOR INSULAR AREA LAND-GRANT 
                   INSTITUTIONS.

       (a) Experiment Stations.--Section 3(d) of the Hatch Act of 
     1887 (7 U.S.C. 361c(d)) is amended by striking paragraph (4) 
     and inserting the following:
       ``(4) Exception for insular areas.--
       ``(A) In general.--Effective beginning for fiscal year 
     2003, in lieu of the matching funds requirement of paragraph 
     (1), the insular areas of the Commonwealth of Puerto Rico, 
     Guam, and the Virgin Islands of the United States shall 
     provide matching funds from non-Federal sources in an amount 
     equal to not less than 50 percent of the formula funds 
     distributed by the Secretary to each of the insular areas, 
     respectively, under this section.
       ``(B) Waivers.--The Secretary may waive the matching fund 
     requirement of subparagraph (A) for any fiscal year if the 
     Secretary determines that the government of the insular area 
     will be unlikely to meet the matching requirement for the 
     fiscal year.''.
       (b) Cooperative Agricultural Extension.--Section 3(e) of 
     the Smith-Lever Act (7 U.S.C. 343(e)) is amended by striking 
     paragraph (4) and inserting the following:
       ``(4) Exception for insular areas.--
       ``(A) In general.--Effective beginning for fiscal year 
     2003, in lieu of the matching funds requirement of paragraph 
     (1), the insular areas of the Commonwealth of Puerto Rico, 
     Guam, and the Virgin Islands of the United States shall 
     provide matching funds from non-Federal sources in an amount 
     equal to not less than 50 percent of the formula funds 
     distributed by the Secretary to each of the insular areas, 
     respectively, under this section.
       ``(B) Waivers.--The Secretary may waive the matching fund 
     requirement of subparagraph (A) for any fiscal year if the 
     Secretary determines that the government of the insular area 
     will be unlikely to meet the matching requirement for the 
     fiscal year.''.

                         Subtitle E--Other Laws

     SEC. 781. CRITICAL AGRICULTURAL MATERIALS.

       Section 16(a) of the Critical Agricultural Materials Act (7 
     U.S.C. 178n(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 782. RESEARCH FACILITIES.

       Section 6(a) of the Research Facilities Act (7 U.S.C. 
     390d(a)) is amended by striking ``2002'' and inserting 
     ``2006''.

     SEC. 783. FEDERAL AGRICULTURAL RESEARCH FACILITIES.

       Section 1431 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1556) is amended by striking ``2002'' 
     and inserting ``2006''.

     SEC. 784. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANTS.

       The Competitive, Special, and Facilities Research Grant Act 
     (7 U.S.C. 450i) is amended in subsection (b)--
       (1) in paragraph (2), by striking ``in--'' and all that 
     follows and inserting ``, as those needs are determined by 
     the Secretary, in consultation with the National Agricultural 
     Research, Extension, Education, and Economics Advisory Board, 
     not later than July 1 of each fiscal year for the purposes of 
     the following fiscal year.''; and
       (2) in paragraph (10), by striking ``2002'' and inserting 
     ``2006''.

     SEC. 785. RISK MANAGEMENT EDUCATION FOR BEGINNING FARMERS AND 
                   RANCHERS.

       (a) In General.--Section 524(a)(3) of the Federal Crop 
     Insurance Act (7 U.S.C. 1524(a)(3)) is amended by striking 
     subparagraph (A) and inserting the following:
       ``(A) Authority.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall establish a program under which competitive grants are 
     made to qualified public and private entities (including 
     land-grant colleges and universities, cooperative extension 
     services, colleges or universities, and community

[[Page 26795]]

     colleges), as determined by the Secretary, for the purpose 
     of--
       ``(i) educating producers generally about the full range of 
     risk management activities, including futures, options, 
     agricultural trade options, crop insurance, cash forward 
     contracting, debt reduction, production diversification, farm 
     resources risk reduction, and other risk management 
     strategies; or
       ``(ii) educating beginning farmers and ranchers--

       ``(I) in the areas described in clause (i); and
       ``(II) in risk management strategies, as part of programs 
     that are specifically targeted at beginning farmers and 
     ranchers.''.

       (b) Technical Correction.--Section 524(b) of the Federal 
     Crop Insurance Act (7 U.S.C. 1524(b)) is amended by 
     redesignating the second paragraph (2) and paragraph (3) as 
     paragraphs (3) and (4), respectively.

     SEC. 786. AQUACULTURE.

       Section 10 of the National Aquaculture Act of 1980 (16 
     U.S.C. 2809) is amended by striking ``2002'' each place it 
     appears and inserting ``2006''.

     SEC. 787. CARBON CYCLE RESEARCH.

       Section 221 of the Agricultural Risk Protection Act of 2000 
     (Public Law 106-224; 114 Stat. 407) is amended--
       (1) in subsection (a), by striking ``Of the amount'' and 
     all that follows through ``to provide'' and inserting 
     ``Subject to the availability of funds to carry out this 
     section, the Secretary shall provide'';
       (2) in subsection (d), by striking ``under subsection (a)'' 
     and inserting ``for this section''; and
       (3) by adding at the end the following:
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section for each of fiscal years 2002 through 
     2006.''.

                      Subtitle F--New Authorities

     SEC. 791. DEFINITIONS.

       In this subtitle:
       (1) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 792. REGULATORY AND INSPECTION RESEARCH.

       (a) Definitions.--In this section:
       (1) Inspection or regulatory agency of the department.--The 
     term ``inspection or regulatory agency of the Department'' 
     includes--
       (A) the Animal and Plant Health Inspection Service;
       (B) the Food Safety and Inspection Service;
       (C) the Grain Inspection, Packers, and Stockyards 
     Administration; and
       (D) the Agricultural Marketing Service.
       (2) Urgent applied research needs.--The term ``urgent 
     applied research needs'' includes research necessary to carry 
     out--
       (A) agricultural marketing programs;
       (B) programs to protect the animal and plant resources of 
     the United States; and
       (C) educational programs or special studies to improve the 
     safety of the food supply of the United States.
       (b) Timely, Cost-Effective Research.--To meet the urgent 
     applied research needs of inspection or regulatory agencies 
     of the Department, the Secretary--
       (1) may use a public or private source; and
       (2) shall use the most practicable source to provide 
     timely, cost-effective means of providing the research.
       (c) Conflicts of Interest.--The Secretary shall establish 
     guidelines to prevent any conflict of interest that may arise 
     if an inspection or regulatory agency of the Department 
     obtains research from any Federal agency the work or 
     technology transfer efforts of which are funded in part by an 
     industry subject to the jurisdiction of the inspection or 
     regulatory agency of the Department.
       (d) Regulations.--The Secretary may promulgate such 
     regulations as are necessary to carry out this section.

     SEC. 793. EMERGENCY RESEARCH TRANSFER AUTHORITY.

       (a) In General.--Subject to subsection (b), in addition to 
     any other authority that the Secretary may have to transfer 
     appropriated funds, the Secretary may transfer up to 2 
     percent of any appropriation made available to an office or 
     agency of the Department for a fiscal year for agricultural 
     research, extension, marketing, animal and plant health, 
     nutrition, food safety, nutrition education, or forestry 
     programs to any other appropriation for an office or agency 
     of the Department for emergency research, extension, or 
     education activities needed to address imminent threats to 
     animal and plant health, food safety, or human nutrition, 
     including bioterrorism.
       (b) Limitations.--The Secretary may transfer funds under 
     subsection (a) only--
       (1) on a determination by the Secretary that the need is so 
     imminent that the need will not be timely met by annual, 
     supplemental, or emergency appropriations;
       (2) in an aggregate amount that does not exceed $5,000,000 
     for any fiscal year; and
       (3) with the approval of the Director of the Office of 
     Management and Budget.

     SEC. 794. REVIEW OF AGRICULTURAL RESEARCH SERVICE.

       (a) In General.--The Secretary shall conduct a review of 
     the purpose, efficiency, effectiveness, and impact on 
     agricultural research of the Agricultural Research Service.
       (b) Administration.--In conducting the review, the 
     Secretary shall use persons outside the Department, 
     including--
       (1) Federal scientists;
       (2) college and university faculty;
       (3) private and nonprofit scientists; or
       (4) other persons familiar with the role of the 
     Agricultural Research Service in conducting agricultural 
     research in the United States.
       (c) Report.--Not later than September 30, 2004, the 
     Secretary shall submit to the Committee on Agriculture of the 
     House of Representatives and the Committee on Agriculture, 
     Nutrition, and Forestry of the Senate a report on the results 
     of the review.
       (d) Funding.--The Secretary shall use to carry out this 
     section not more than 0.1 percent of the amount of 
     appropriations made available to the Agricultural Research 
     Service for each of fiscal years 2002 through 2004.

     SEC. 795. TECHNOLOGY TRANSFER FOR RURAL DEVELOPMENT.

       (a) In General.--The Secretary, acting through the Rural 
     Business-Cooperative Service and the Agricultural Research 
     Service, shall establish a program to promote the 
     availability of technology transfer opportunities of the 
     Department to rural businesses and residents.
       (b) Components of Program.--The program shall, to the 
     maximum extent practicable, include--
       (1) a website featuring information about the program and 
     technology transfer opportunities of the Department;
       (2) an annual joint program for State economic development 
     directors and Department rural development directors 
     regarding technology transfer opportunities of the 
     Agricultural Research Service and other offices and agencies 
     of the Department; and
       (3) technology transfer opportunity programs at each 
     Agricultural Research Service laboratory, conducted at least 
     biennially, which may include participation by other local 
     Federal laboratories, as appropriate.
       (c) Funding.--The Secretary shall use to carry out this 
     section--
       (1) amounts made available to the Agricultural Research 
     Service; and
       (2) amounts made available to the Rural Business-
     Cooperative Service for salaries and expenses.

     SEC. 796. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

       (a) Definition of Beginning Farmer or Rancher.--In this 
     section, the term ``beginning farmer or rancher'' means a 
     person that--
       (1)(A) has not operated a farm or ranch; or
       (B) has operated a farm or ranch for not more than 10 
     years; and
       (2) meets such other criteria as the Secretary may 
     establish.
       (b) Program.--The Secretary shall establish a beginning 
     farmer and rancher development program to provide training, 
     education, outreach, and technical assistance initiatives for 
     beginning farmers or ranchers.
       (c) Grants.--
       (1) In general.--In carrying out this section, the 
     Secretary shall make competitive grants to support new and 
     established local and regional training, education, outreach, 
     and technical assistance initiatives for beginning farmers or 
     ranchers, including programs and services (as appropriate) 
     relating to--
       (A) mentoring, apprenticeships, and internships;
       (B) resources and referral;
       (C) assisting beginning farmers or ranchers in acquiring 
     land from retiring farmers and ranchers;
       (D) innovative farm and ranch transfer strategies;
       (E) entrepreneurship and business training;
       (F) model land leasing contracts;
       (G) financial management training;
       (H) whole farm planning;
       (I) conservation assistance;
       (J) risk management education;
       (K) diversification and marketing strategies;
       (L) curriculum development;
       (M) understanding the impact of concentration and 
     globalization;
       (N) basic livestock and crop farming practices;
       (O) the acquisition and management of agricultural credit;
       (P) environmental compliance;
       (Q) information processing; and
       (R) other similar subject areas of use to beginning farmers 
     or ranchers.
       (2) Eligibility.--To be eligible to receive a grant under 
     this subsection, the recipient shall be a collaborative 
     State, local, or regionally-based network or partnership of 
     public or private entities, which may include--
       (A) a State cooperative extension service;
       (B) a Federal or State agency;
       (C) a community-based and nongovernmental organization;
       (D) a college or university (including an institution 
     awarding an associate's degree) or foundation maintained by a 
     college or university; or
       (E) any other appropriate partner, as determined by the 
     Secretary.
       (3) Term of grant.--The term of a grant under this 
     subsection shall not exceed 3 years.

[[Page 26796]]

       (4) Matching requirement.--To be eligible to receive a 
     grant under this subsection, a recipient shall provide a 
     match in the form of cash or in-kind contributions in an 
     amount equal to 25 percent of the funds provided by the 
     grant.
       (5) Set-aside.--Not less than 25 percent of funds used to 
     carry out this subsection for a fiscal year shall be used to 
     support programs and services that address the needs of--
       (A) limited resource beginning farmers or ranchers (as 
     defined by the Secretary);
       (B) socially disadvantaged beginning farmers or ranchers 
     (as defined in section 355(e) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 2003(e)); and
       (C) farmworkers desiring to become farmers or ranchers.
       (6) Prohibition.--A grant made under this subsection may 
     not be used for the planning, repair, rehabilitation, 
     acquisition, or construction of a building or facility.
       (7) Administrative costs.--The Secretary shall use not more 
     than 4 percent of the funds made available to carry out this 
     section for administrative costs incurred by the Secretary in 
     carrying out this section.
       (d) Education Teams.--
       (1) In general.--In carrying out this section, the 
     Secretary shall establish beginning farmer and rancher 
     education teams to develop curricula and conduct educational 
     programs and workshops for beginning farmers or ranchers in 
     diverse geographical areas of the United States.
       (2) Curriculum.--In promoting the development of curricula, 
     the Secretary shall, to the maximum extent practicable, 
     include modules tailored to specific audiences of beginning 
     farmers or ranchers, based on crop or regional diversity.
       (3) Composition.--In establishing an education team for a 
     specific program or workshop, the Secretary shall, to the 
     maximum extent practicable--
       (A) obtain the short-term services of specialists with 
     knowledge and expertise in programs serving beginning farmers 
     or ranchers; and
       (B) use officers and employees of the Department with 
     direct experience in programs of the Department that may be 
     taught as part of the curriculum for the program or workshop.
       (4) Cooperation.--
       (A) In general.--In carrying out this subsection, the 
     Secretary shall cooperate, to the maximum extent practicable, 
     with--
       (i) State cooperative extension services;
       (ii) Federal and State agencies;
       (iii) community-based and nongovernmental organizations;
       (iv) colleges and universities (including an institution 
     awarding an associate's degree) or foundations maintained by 
     a college or university; and
       (v) other appropriate partners, as determined by the 
     Secretary.
       (B) Cooperative agreement.--Notwithstanding chapter 63 of 
     title 31, United States Code, the Secretary may enter into a 
     cooperative agreement to reflect the terms of any cooperation 
     under subparagraph (A).
       (e) Curriculum and Training Clearinghouse.--The Secretary 
     shall establish an online clearinghouse that makes available 
     to beginning farmers or ranchers education curricula and 
     training materials and programs, which may include online 
     courses for direct use by beginning farmers or ranchers.
       (f) Stakeholder Input.--In carrying out this section, the 
     Secretary shall seek stakeholder input from--
       (1) beginning farmers and ranchers;
       (2) national, State, and local organizations and other 
     persons with expertise in operating beginning farmer and 
     rancher programs; and
       (3) the Advisory Committee on Beginning Farmers and 
     Ranchers established under section 5 of the Agricultural 
     Credit Improvement Act of 1992 (7 U.S.C. 1929 note; Public 
     Law 102-554).
       (g) Participation by Other Farmers and Ranchers.--Nothing 
     in this section prohibits the Secretary from allowing farmers 
     and ranchers who are not beginning farmers or ranchers from 
     participating in programs authorized under this section to 
     the extent that the Secretary determines that such 
     participation is appropriate and will not detract from the 
     primary purpose of educating beginning farmers and ranchers.
       (h) Funding.--
       (1) Fees and contributions.--
       (A) In general.--The Secretary may--
       (i) charge a fee to cover all or part of the costs of 
     curriculum development and the delivery of programs or 
     workshops provided by--

       (I) a beginning farmer and rancher education team 
     established under subsection (d); or
       (II) the online clearinghouse established under subsection 
     (e); and

       (ii) accept contributions from cooperating entities under a 
     cooperative agreement entered into under subsection (d)(4)(B) 
     to cover all or part of the costs for the delivery of 
     programs or workshops by the beginning farmer and rancher 
     education teams.
       (B) Availability.--Fees and contributions received by the 
     Secretary under subparagraph (A) shall--
       (i) be deposited in the account that incurred the costs to 
     carry out this section;
       (ii) be available to the Secretary to carry out the 
     purposes of the account, without further appropriation;
       (iii) remain available until expended; and
       (iv) be in addition to any funds made available under 
     paragraph (2).
       (2) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.

     SEC. 797. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR 
                   AGRICULTURAL RESEARCH.

       It is the sense of Congress that--
       (1) Federal funding for food and agricultural research has 
     been essentially constant for 2 decades, putting at risk the 
     scientific base on which food and agricultural advances have 
     been made;
       (2) the resulting increase in the relative proportion of 
     private sector, industry investments in food and agricultural 
     research has led to questions about the independence and 
     objectivity of research and outreach conducted by the Federal 
     and university research sectors; and
       (3) funding for food and agricultural research should be at 
     least doubled over the next 5 fiscal years--
       (A) to restore the balance between public and private 
     sector funding for food and agricultural research; and
       (B) to maintain the scientific base on which food and 
     agricultural advances are made.

     SEC. 798. PRIORITY FOR FARMERS AND RANCHERS PARTICIPATING IN 
                   CONSERVATION PROGRAMS.

       In carrying out new on-farm research or extension programs 
     or projects authorized by this Act, an amendment made by this 
     Act, or any Act enacted after the date of enactment of this 
     Act, the Secretary shall give priority in carrying out the 
     programs or projects to using farms or ranches of farmers or 
     ranchers that participate in Federal agricultural 
     conservation programs.

     SEC. 798A. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

       The Secretary shall ensure that segregated data on the 
     production and marketing of organic agricultural products is 
     included in the ongoing baseline of data collection regarding 
     agricultural production and marketing.

     SEC. 798B. ORGANICALLY PRODUCED PRODUCT RESEARCH AND 
                   EDUCATION.

       Not later than July 1, 2002, the Secretary, shall prepare, 
     in consultation with the Advisory Committee on Small Farms, 
     and submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate, a report on--
       (1) the implementation of the organic rule promulgated 
     under the Organic Foods Production Act of 1990 (7 U.S.C. 6501 
     et seq.); and
       (2) the impact of the organic rule program on small farms 
     (as defined by the Advisory Committee on Small Farms).

     SEC. 798C. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.

       The Secretary, acting through the Agricultural Research 
     Service (including the National Agriculture Library), shall 
     facilitate access by research and extension professionals in 
     the United States to, and the use by those professionals of, 
     organic research conducted outside the United States.

                          TITLE VIII--FORESTRY

     SEC. 801. OFFICE OF INTERNATIONAL FORESTRY.

       Section 2405(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 6704(d)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 802. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH 
                   PROGRAM.

       It is the sense of Congress to reaffirm the importance of 
     Public Law 87-88 (16 U.S.C. 582a et seq.), commonly known as 
     the ``McIntire-Stennis Cooperative Forestry Act''.

     SEC. 803. SUSTAINABLE FORESTRY OUTREACH INITIATIVE; RENEWABLE 
                   RESOURCES EXTENSION ACTIVITIES.

       (a) Sustainable Forestry Outreach Initiative.--The 
     Renewable Resources Extension Act of 1978 is amended by 
     inserting after section 5A (16 U.S.C. 1674a) the following:

     ``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

       ``The Secretary shall establish a program, to be known as 
     the `Sustainable Forestry Outreach Initiative', to educate 
     landowners concerning--
       ``(1) the value and benefits of practicing sustainable 
     forestry;
       ``(2) the importance of professional forestry advice in 
     achieving sustainable forestry objectives; and
       ``(3) the variety of public and private sector resources 
     available to assist the landowners in planning for and 
     practicing sustainable forestry.''.
       (b) Renewable Resources Extension Activities.--
       (1) Authorization of appropriations.--Section 6 of the 
     Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
     amended by striking the first sentence and inserting the 
     following: ``There is authorized to be appropriated to carry 
     out this Act $30,000,000 for each of fiscal years 2002 
     through 2006.''.
       (2) Termination date.--Section 8 of the Renewable Resources 
     Extension Act of 1978 (16 U.S.C. 1671 note; Public Law 95-
     306) is

[[Page 26797]]

     amended by striking ``2000'' and inserting ``2006''.

     SEC. 804. FORESTRY INCENTIVES PROGRAM.

       Section 4 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103) is repealed.

     SEC. 805. FOREST LAND ENHANCEMENT PROGRAM.

       (a) Findings.--Congress finds that--
       (1) there is a growing dependence on nonindustrial private 
     forest land to supply the necessary market commodities, and 
     nonmarket values (such as habitat for fish and wildlife, 
     aesthetics, outdoor recreation opportunities, and other 
     forest resources), required by a growing population;
       (2) there is a strong demand for expanded assistance 
     programs for owners of nonindustrial private forest land 
     because the majority of the wood supply of the United States 
     is derived from nonindustrial private forest land;
       (3) the soil, carbon stores, water quality, and air quality 
     of the United States can be maintained and improved through 
     good stewardship of nonindustrial private forest land;
       (4) the products and services resulting from stewardship of 
     nonindustrial private forest land provide income and 
     employment that contribute to the economic health and 
     diversity of rural communities;
       (5)(A) wildfires threaten human lives, property, forests, 
     and other resources; and
       (B) Federal and State cooperation in forest fire prevention 
     and control has proven effective and valuable, in that 
     properly managed forest stands are less susceptible to 
     catastrophic fire as dramatized by the catastrophic fire 
     seasons of 1998 and 2000;
       (6) owners of nonindustrial private forest land are being 
     faced with increased pressure to convert their forest land to 
     development and other uses;
       (7)(A) complex, long-rotation forest investments, including 
     sustainable hardwood management, are often the most difficult 
     commitment for owners of small areas of nonindustrial private 
     forest land; and
       (B) investments described in subparagraph (A) should 
     receive equal consideration under cost-sharing programs; and
       (8) the investment of 1 Federal dollar in State and private 
     forestry programs is estimated to leverage on average $9 from 
     State, local, and private sources.
       (b) Purposes.--The purposes of this section are--
       (1) to strengthen the commitment of the Department of 
     Agriculture to sustainable forestry; and
       (2) to establish a coordinated and cooperative Federal, 
     State, and local sustainable forest program for the 
     establishment, management, maintenance, enhancement, and 
     restoration of forests on nonindustrial private forest land 
     in the United States.
       (c) Forest Land Enhancement Program.--The Cooperative 
     Forestry Assistance Act of 1978 (as amended by section 804) 
     is amended by inserting after section 3 (16 U.S.C. 2102) the 
     following:

     ``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' means rural land, as 
     determined by the Secretary, that--
       ``(A) has existing tree cover or is suitable for growing 
     trees; and
       ``(B) is owned or controlled by an owner.
       ``(2) Owner.--The term `owner', with respect to 
     nonindustrial private forest land, means a nonindustrial 
     private individual, group, association, corporation, Indian 
     tribe, or other private legal entity (other than a nonprofit 
     private legal entity) that has definitive decisionmaking 
     authority over nonindustrial private forest land (including 
     through a long-term lease or other land tenure system) for a 
     period of time long enough to ensure compliance with the 
     terms and conditions of the Program.
       ``(3) Program.--The term `Program' means the Forest Land 
     Enhancement Program established under subsection (b).
       ``(4) State forester.--The term `State forester' means the 
     director or other head of a State forestry agency or an 
     equivalent State official.
       ``(b) Establishment.--
       ``(1) In general.--The Secretary shall establish a program, 
     to be known as the `Forest Land Enhancement Program', to 
     encourage the long-term sustainability of nonindustrial 
     private forest land in the United States by assisting the 
     owners of the nonindustrial private forest land in more 
     actively managing the nonindustrial private forest land and 
     related resources by using Federal, State, and private sector 
     resource management expertise, financial assistance, and 
     educational programs.
       ``(2) Administration.--The Secretary shall carry out the 
     Program within, and administer the Program through, the 
     Natural Resources Conservation Service.
       ``(3) Coordination.--The Secretary shall carry out the 
     Program in coordination with State foresters.
       ``(c) Program Objectives.--In carrying out the Program, the 
     Secretary shall target resources to achieve the following 
     objectives:
       ``(1) Investment in practices to establish, restore, 
     protect, manage, maintain, and enhance the health and 
     productivity of the nonindustrial private forest land of the 
     United States for timber, habitat for flora and fauna, water 
     quality, and wetland.
       ``(2) Ensuring that afforestation, reforestation, 
     improvement of poorly stocked stands, timber stand 
     improvement, practices necessary to improve seedling growth 
     and survival, and growth enhancement practices occur where 
     needed to enhance and sustain the long-term productivity of 
     timber and nontimber forest resources to help meet future 
     public demand for forest resources and provide environmental 
     benefits.
       ``(3) Reduction of the risks, and assistance in restoring, 
     recovering, and mitigating the damage, to forests caused by 
     fire, insects, invasive species, disease, and damaging 
     weather.
       ``(4) Increase and enhancement of opportunities for carbon 
     sequestration.
       ``(5) Enhancement of implementation of agroforestry 
     practices.
       ``(6) Maintenance and enhancement of the forest landbase 
     and leveraging of State and local financial and technical 
     assistance to owners that promote the conservation and 
     environmental values described in this subsection.
       ``(d) Eligibility.--
       ``(1) In general.--An owner of nonindustrial private forest 
     land in a State shall be eligible for cost-sharing assistance 
     under the Program if the owner--
       ``(A) enters into an agreement with the Secretary to 
     develop and carry out an individual stewardship, forest, or 
     stand management plan that addresses site-specific activities 
     and practices in cooperation with, and approved by--
       ``(i) the State forester; or
       ``(ii) a private sector program in consultation with the 
     State forester;
       ``(B) enters into an agreement with the Secretary to carry 
     out activities approved under subsection (e) in accordance 
     with the individual stewardship, forest, or stand management 
     plan for a period of not less than 10 years, unless the State 
     forester approves a modification to the plan; and
       ``(C) meets acreage restrictions determined by the State 
     forester in conjunction with the State Forest Stewardship 
     Coordinating Committee established under section 19(b).
       ``(2) State priorities.--In consultation with each State 
     forester and the State Forest Stewardship Coordinating 
     Committee of each State, the Secretary may develop State 
     priorities for cost sharing under the Program that will 
     promote forest management objectives in the State.
       ``(3) Development of plan.--An owner shall be eligible for 
     cost-sharing assistance under the Program for the development 
     of the individual stewardship, forest, or stand management 
     plan required by paragraph (1).
       ``(e) Approved Activities.--
       ``(1) Development.--In consultation with each State 
     forester and the State Forest Stewardship Coordinating 
     Committee of each State, the Secretary shall develop for each 
     State a list of approved forest activities that will be 
     eligible for cost-sharing assistance under the Program within 
     the State.
       ``(2) Types of activities.--In developing a list of 
     approved activities for a State under paragraph (1), the 
     Secretary shall attempt to achieve the establishment, 
     restoration, management, maintenance, and enhancement of 
     forests and trees for--
       ``(A) the sustainable growth and management of forests for 
     timber production;
       ``(B) the restoration, use, and enhancement of forest 
     wetland and riparian areas;
       ``(C) the protection of water quality and watersheds 
     through the application of State-developed forestry best 
     management practices;
       ``(D) energy conservation and carbon sequestration 
     purposes;
       ``(E) habitat for flora and fauna;
       ``(F)(i) the control, detection, and monitoring of invasive 
     species on forest land; and
       ``(ii) the prevention of the spread of, and provision for 
     the restoration of land affected by, invasive species;
       ``(G) hazardous fuel reduction and other management 
     activities that reduce the risks, and assist in restoring, 
     recovering, and mitigating the damage, to forests caused by 
     fire; and
       ``(H) other activities approved by the Secretary, in 
     coordination with the State forester and the State Forest 
     Stewardship Coordinating Committee of the State.
       ``(f) Cooperation.--In carrying out the Program, the 
     Secretary shall cooperate with--
       ``(1) other Federal, State, and local natural resource 
     management agencies;
       ``(2) institutions of higher education; and
       ``(3) the private sector.
       ``(g) Reimbursement of Approved Activities.--
       ``(1) In general.--In the case of an owner that has entered 
     into an agreement under subsection (d)(1) with respect to 
     nonindustrial private forest land of the owner, the Secretary 
     shall share such cost of carrying out approved activities on 
     the nonindustrial private forest land of the owner as the 
     Secretary determines to be appropriate.
       ``(2) Rate; payment schedule.--The Secretary shall 
     determine--
       ``(A) the appropriate reimbursement rate for cost-sharing 
     payments under paragraph (1); and

[[Page 26798]]

       ``(B) the schedule for making the payments.
       ``(3) Maximum.--
       ``(A) Percentage of cost of activities.--The Secretary 
     shall not make cost-sharing payments under this subsection to 
     an owner in an amount that exceeds 75 percent of the total 
     cost, or a lower percentage as determined by the State 
     forester, to the owner of carrying out the approved 
     activities under the approved individual stewardship, forest, 
     or stand management plan of the owner under subsection 
     (d)(1)(A).
       ``(B) Payments to a single owner.--The maximum amount of 
     cost-sharing payments to any 1 owner shall be determined by 
     the Secretary.
       ``(4) Consultation.--The Secretary shall make 
     determinations under this subsection in consultation with the 
     State forester.
       ``(h) Recapture.--
       ``(1) In general.--The Secretary shall establish and 
     implement a mechanism to recapture payments made to an owner 
     if the owner fails to carry out an approved activity 
     specified in the individual stewardship, forest, or stand 
     management plan for which the owner received cost-sharing 
     payments under the Program.
       ``(2) Additional remedy.--The remedy described in paragraph 
     (1) shall be in addition to any other remedy available to the 
     Secretary.
       ``(i) Distribution.--The Secretary shall distribute funds 
     available for cost sharing under the Program among owners of 
     nonindustrial private forest land in the States after giving 
     appropriate consideration to--
       ``(1) the total acreage of nonindustrial private forest 
     land in each State;
       ``(2) the potential productivity of the nonindustrial 
     private forest land in each State;
       ``(3) the number of owners eligible for cost sharing in 
     each State;
       ``(4) the opportunities to enhance nontimber resources on 
     the nonindustrial private forest land of each State;
       ``(5) the anticipated demand for timber and nontimber 
     resources in each State;
       ``(6) the need to improve forest health in the State to 
     minimize the damaging effects of catastrophic fire, insects, 
     disease, or weather; and
       ``(7) the need and demand for agroforestry practices in 
     each State.
       ``(j) Availability of Funds.--During the period of fiscal 
     years 2002 through 2006, the Secretary shall use $100,000,000 
     of funds of the Commodity Credit Corporation to carry out the 
     Program.''.
       (d) Conforming Amendments.--
       (1) Section 246(b)(2) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 6962(b)(2)) is amended 
     by striking ``forestry incentive program'' and inserting 
     ``Forest Land Enhancement Program''.
       (2) Section 12(a) of the Cooperative Forestry Assistance 
     Act of 1978 (16 U.S.C. 2108(a)) is amended in the second 
     sentence by striking ``money appropriated under section 4 of 
     this Act or''.
       (3) Section 126(a)(8) of the Internal Revenue Code of 1986 
     is amended by striking ``forestry incentives program'' and 
     inserting ``Forest Land Enhancement Program''.

     SEC. 806. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by inserting after section 5 (16 U.S.C. 2103a) the following:

     ``SEC. 5A. SUSTAINABLE FORESTRY COOPERATIVE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Farmer or rancher.--The term `farmer or rancher' 
     means a person engaged in the production of an agricultural 
     commodity (including livestock).
       ``(2) Forestry cooperative.--The term `forestry 
     cooperative' means an association that is--
       ``(A) owned and operated by nonindustrial private forest 
     landowners; and
       ``(B) comprised of members--
       ``(i) of which at least 51 percent are farmers or ranchers; 
     and
       ``(ii) that use sustainable forestry practices on 
     nonindustrial private forest land to create a long-term, 
     sustainable income stream.
       ``(3) Nonindustrial private forest land.--The term 
     `nonindustrial private forest land' has the meaning given the 
     term `nonindustrial private forest lands' in section 5(c).
       ``(b) Establishment.--The Secretary shall establish a 
     program, to be known as the `sustainable forestry cooperative 
     program', under which the Secretary shall provide, to 
     nonprofit organizations on a competitive basis, grants to 
     establish, and develop and support, sustainable forestry 
     practices carried out by members of, forestry cooperatives.
       ``(c) Use of Funds.--
       ``(1) In general.--Subject to paragraph (2), funds from a 
     grant provided under this section shall be used for--
       ``(A) predevelopment, development, start-up, capital 
     acquisition, and marketing costs associated with a forestry 
     cooperative; or
       ``(B) the development or support of a sustainable forestry 
     practice of a member of a forestry cooperative.
       ``(2) Conditions.--
       ``(A) Development.--The Secretary shall provide funds under 
     paragraph (1)(A) only to a nonprofit organization with 
     demonstrated expertise in cooperative development, as 
     determined by the Secretary.
       ``(B) Compliance with plan.--A sustainable forestry 
     practice developed or supported through the use of funds from 
     a grant under this section shall comply with any applicable 
     standards for sustainable forestry contained in a management 
     plan that--
       ``(i) meets the requirements of section 4(e); and
       ``(ii) is approved by the State forester (or equivalent 
     State official).
       ``(d) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 807. STEWARDSHIP INCENTIVE PROGRAM.

       Section 6 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2103b) is repealed.

     SEC. 808. FOREST FIRE RESEARCH CENTERS.

       (a) Findings.--Congress finds that--
       (1) there is an increasing threat of fire to millions of 
     acres of forest land and rangeland throughout the United 
     States;
       (2) this threat is especially great in the interior States 
     of the western United States, where the Forest Service 
     estimates that 39,000,000 acres of National Forest System 
     land are at high risk of catastrophic wildfire;
       (3)(A) the degraded condition of forest land and rangeland 
     is often the consequence of land management practices that 
     emphasize the control and prevention of fires; and
       (B) the land management practices disrupted the occurrence 
     of frequent low-intensity fires that periodically remove 
     flammable undergrowth;
       (4) as a result of the land management practices--
       (A) some forest land and rangeland in the United States no 
     longer function naturally as ecosystems; and
       (B) drought cycles and the invasion of insects and disease 
     have resulted in vast areas of dead or dying trees, 
     overstocked stands, and the invasion of undesirable species;
       (5)(A) population movement into wildland-urban interface 
     areas exacerbate the fire danger;
       (B) the increasing number of larger, more intense fires 
     pose grave hazards to human health, safety, property, and 
     infrastructure in the areas; and
       (C) smoke from wildfires, which contain fine particulate 
     matter and other hazardous pollutants, pose substantial 
     health risks to people living in the areas;
       (6)(A) the budgets and resources of Federal, State, and 
     local entities supporting firefighting efforts have been 
     stretched to their limits;
       (B) according to the Comptroller General, the average cost 
     of attempting to put out fires in the interior West grew by 
     150 percent, from $134,000,000 in fiscal year 1986 to 
     $335,000,000 in fiscal year 1994; and
       (C) the costs of preparedness, including the costs of 
     maintaining a readiness force to fight fires, rose about 70 
     percent, from $189,000,000 in fiscal year 1992 to 
     $326,000,000 in fiscal year 1997;
       (7) diminishing Federal resources (including the 
     availability of personnel) have limited the ability of 
     Federal fire researchers--
       (A) to respond to management needs; and
       (B) to use technological advancements for analyzing fire 
     management costs;
       (8) the Federal fire research program is funded at 
     approximately \1/3\ of the amount that is required to address 
     emerging fire problems, resulting in the lack of a cohesive 
     strategy to address the threat of catastrophic wildfires; and
       (9) there is a critical need for cost-effective investments 
     in improved fire management technologies.
       (b) Forest Fire Research Centers.--The Forest and Rangeland 
     Renewable Resources Research Act of 1978 (16 U.S.C. 1641 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 11. FOREST FIRE RESEARCH CENTERS.

       ``(a) In General.--Subject to the availability of 
     appropriations, the Secretary of Agriculture, acting through 
     the Chief of the Forest Service (referred to in this section 
     as the `Secretary') shall establish at least 2 forest fire 
     research centers at institutions of higher education (which 
     may include research centers in existence on the date of 
     enactment of this section) that--
       ``(1) have expertise in natural resource development; and
       ``(2) are located in close proximity to other Federal 
     natural resource, forest management, and land management 
     agencies.
       ``(b) Locations.--Of the forest fire research centers 
     established under subsection (a)--
       ``(1) at least 1 center shall be located in California, 
     Idaho, Montana, Oregon, or Washington; and
       ``(2) at least 1 center shall be located in Arizona, 
     Colorado, New Mexico, Nevada, or Wyoming.
       ``(c) Duties.--At each of the forest fire research centers 
     established under subsection (a), the Secretary shall provide 
     for--
       ``(1) the conduct of integrative, interdisciplinary 
     research into the ecological, socioeconomic, and 
     environmental impact of fire control and the use of 
     management of ecosystems and landscapes to facilitate fire 
     control; and
       ``(2) the development of mechanisms to rapidly transfer new 
     fire control and management technologies to fire and land 
     managers.

[[Page 26799]]

       ``(d) Advisory Committee.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of the Interior, shall establish a committee 
     composed of fire and land managers and fire researchers to 
     determine the areas of emphasis and establish priorities for 
     research projects conducted at forest fire research centers 
     established under subsection (a).
       ``(2) Administration.--The Federal Advisory Committee Act 
     (5 U.S.C. App.) and section 102 of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7612) 
     shall not apply to the committee established under paragraph 
     (1).
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this section.''.

     SEC. 809. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE 
                   PROGRAM.

       (a) Findings.--Congress finds that--
       (1) the damage caused by wildfire disasters has been 
     equivalent in magnitude to the damage resulting from the 
     Northridge earthquake, Hurricane Andrew, and the recent 
     flooding of the Mississippi River and the Red River;
       (2) more than 20,000 communities in the United States are 
     at risk from wildfire and approximately 11,000 of those 
     communities are located near Federal land;
       (3) the accumulation of heavy forest fuel loads continues 
     to increase as a result of disease, insect infestations, and 
     drought, further increasing the risk of fire each year;
       (4) modification of forest fuel load conditions through the 
     removal of hazardous fuels would--
       (A) minimize catastrophic damage from wildfires;
       (B) reduce the need for emergency funding to respond to 
     wildfires; and
       (C) protect lives, communities, watersheds, and wildlife 
     habitat;
       (5) the hazardous fuels removed from forest land represent 
     an abundant renewable resource, as well as a significant 
     supply of biomass for biomass-to-energy facilities;
       (6) the United States should invest in technologies that 
     promote economic and entrepreneurial opportunities in 
     processing forest products removed through hazardous fuel 
     reduction activities; and
       (7) the United States should--
       (A) develop and expand markets for traditionally underused 
     wood and other biomass as an outlet for value-added excessive 
     forest fuels; and
       (B) commit resources to support planning, assessments, and 
     project reviews to ensure that hazardous fuels management is 
     accomplished expeditiously and in an environmentally sound 
     manner.
       (b) Wildfire Prevention and Hazardous Fuel Purchase 
     Program.--The Cooperative Forestry Assistance Act of 1978 is 
     amended by inserting after section 6 (16 U.S.C. 2103b) the 
     following:

     ``SEC. 6A. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE 
                   PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Biomass-to-energy facility.--The term `biomass-to-
     energy facility' means a facility that uses forest biomass or 
     other biomass as a raw material to produce electric energy, 
     useful heat, or a transportation fuel.
       ``(2) Eligible community.--The term `eligible community' 
     means--
       ``(A) any town, township, municipality, or other similar 
     unit of local government (as determined by the Secretary), or 
     any area represented by a nonprofit corporation or 
     institution organized under Federal or State law to promote 
     broad-based economic development, that--
       ``(i) has a population of not more than 10,000 individuals;
       ``(ii) is located within a county in which at least 15 
     percent of the total primary and secondary labor and 
     proprietor income is derived from forestry, wood products, 
     and forest-related industries, such as recreation, forage 
     production, and tourism; and
       ``(iii) is located adjacent to public or private forest 
     land, the condition of which land the Secretary determines 
     poses a substantial present or potential hazard to the safety 
     of--

       ``(I) a forest ecosystem;
       ``(II) wildlife; or
       ``(III) in the case of a wildfire, human, community, or 
     firefighter safety, in a year in which drought conditions are 
     present; and

       ``(B) any county that is not contained within a 
     metropolitan statistical area that meets the conditions 
     described in clauses (ii) and (iii) of subparagraph (A).
       ``(3) Forest biomass.--The term `forest biomass' means fuel 
     and biomass accumulation from precommercial thinnings, slash, 
     and brush on public or private forest land.
       ``(4) Hazardous fuel.--The term `hazardous fuel' means any 
     excessive accumulation of forest biomass on public or private 
     forest land (especially land in an urban-wildland interface 
     area or in an area that is located near an eligible community 
     and designated as condition class 2 or 3 under the report of 
     the Forest Service entitled `Protecting People and 
     Sustainable Resources in Fire-Adapted Ecosystems', dated 
     October 13, 2000) that the Secretary determines poses a 
     substantial present or potential hazard--
       ``(A) to the safety of a forest ecosystem;
       ``(B) to the safety of wildlife; or
       ``(C) in the case of wildfire in a year in which drought 
     conditions are present, to human, community, or firefighter 
     safety.
       ``(5) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(6) Secretary.--The term `Secretary' means--
       ``(A) the Secretary of Agriculture (or a designee), with 
     respect to National Forest System land and private land in 
     the United States; and
       ``(B) the Secretary of the Interior (or a designee) with 
     respect to Federal land under the jurisdiction of the 
     Secretary of the Interior or an Indian tribe.
       ``(b) Hazardous Fuel Grant Program.--
       ``(1) Grants.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Secretary may make grants to persons that 
     operate biomass-to-energy facilities to offset the costs 
     incurred by those persons in purchasing hazardous fuels 
     derived from public and private forest land adjacent to 
     eligible communities.
       ``(B) Selection criteria.--The Secretary shall select 
     recipients for grants under subparagraph (A) based on--
       ``(i) planned purchases by the recipients of hazardous 
     fuels, as demonstrated by the recipient through the 
     submission to the Secretary of such assurances as the 
     Secretary may require; and
       ``(ii) the level of anticipated benefits of those purchases 
     in reducing the risk of wildfires.
       ``(2) Grant amounts.--
       ``(A) In general.--A grant under this subsection shall--
       ``(i) be based on--

       ``(I) the distance required to transport hazardous fuels to 
     a biomass-to-energy facility; and
       ``(II) the cost of removal of hazardous fuels; and

       ``(ii) be in an amount that is at least equal to the 
     product obtained by multiplying--

       ``(I) the number of tons of hazardous fuels delivered to a 
     grant recipient; by
       ``(II) an amount that is at least $5 but not more than $10 
     per ton of hazardous fuels, as determined by the Secretary 
     taking into consideration the factors described in clause 
     (i).

       ``(B) Limitation on individual grants.--
       ``(i) In general.--Except as provided in clause (ii), a 
     grant under subparagraph (A) shall not exceed $1,500,000 for 
     any biomass-to-energy facility for any fiscal year.
       ``(ii) Small biomass-to-energy facilities.--A biomass-to-
     energy facility that has an annual production of 5 megawatts 
     or less shall not be subject to the limitation under clause 
     (i).
       ``(3) Monitoring of grant recipient activities.--
       ``(A) In general.--As a condition of receipt of a grant 
     under this subsection, a grant recipient shall keep such 
     records as the Secretary may require, including records 
     that--
       ``(i) completely and accurately disclose the use of grant 
     funds; and
       ``(ii) describe all transactions involved in the purchase 
     of hazardous fuels.
       ``(B) Access.--On notice by the Secretary, the operator of 
     a biomass-to-energy facility that purchases and uses 
     hazardous fuels with funds from a grant under this subsection 
     shall provide the Secretary with--
       ``(i) reasonable access to the biomass-to-energy facility; 
     and
       ``(ii) an opportunity to examine the inventory and records 
     of the biomass-to-energy facility.
       ``(4) Monitoring of effect of treatments.--The Secretary 
     shall monitor Federal land from which hazardous fuels are 
     removed and sold to a biomass-to-energy facility under this 
     subsection to determine and document the reduction in fire 
     hazards on that land.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each of fiscal years 2002 through 2006.
       ``(c) Long-Term Forest Stewardship Contracts for Hazardous 
     Fuels Removal.--
       ``(1) Annual assessment of treatment acreage.--
       ``(A) In general.--Subject to the availability of 
     appropriations, not later than March 1 of each of fiscal 
     years 2002 through 2006, the Secretary of Agriculture and the 
     Secretary of Energy shall jointly submit to Congress an 
     assessment of the number of acres of Federal forest land 
     recommended to be treated during the subsequent fiscal year 
     using stewardship end result contracts authorized by 
     paragraph (3).
       ``(B) Components.--The assessment shall--
       ``(i) be based on the treatment schedules contained in the 
     report entitled `Protecting People and Sustaining Resources 
     in Fire-Adapted Ecosystems', dated October 13, 2000, and 
     incorporated into the National Fire Plan (as identified by 
     the Secretary);
       ``(ii) identify the acreage by condition class, type of 
     treatment, and treatment year to achieve the restoration 
     goals outlined in the report within 10-, 15-, and 20-year 
     time periods;
       ``(iii) give priority to condition class 3 areas (as 
     described in subsection (a)(4)(A)), including modifications 
     in the restoration goals based on the effects of--

[[Page 26800]]

       ``(I) fire;
       ``(II) hazardous fuel treatments under the National Fire 
     Plan (as identified by the Secretary); or
       ``(III) updates in data;

       ``(iv) provide information relating to the type of material 
     and estimated quantities and range of sizes of material that 
     shall be included in the treatments;
       ``(v) describe the management area prescriptions in the 
     applicable land and resource management plan for the land on 
     which the treatment is recommended; and
       ``(vi) give priority to areas described in subsection 
     (a)(4)(A).
       ``(2) Funding recommendation.--The Secretary shall include 
     in the annual assessment under paragraph (1) a request for 
     funds sufficient to implement the recommendations contained 
     in the assessment using stewardship end result contracts 
     described in paragraph (3) in any case in which the Secretary 
     determines that the objectives of the National Fire Plan (as 
     identified by the Secretary) would best be accomplished 
     through forest stewardship end result contracting.
       ``(3) Stewardship end result contracting.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Secretary may enter into stewardship end 
     result contracts to implement the National Fire Plan (as 
     identified by the Secretary) on National Forest System land 
     based on the treatment schedules provided in the annual 
     assessments conducted under paragraph (1)(B)(i).
       ``(B) Period of contracts.--The contracting goals and 
     authorities described in subsections (b) through (g) of 
     section 347 of the Department of the Interior and Related 
     Agencies Appropriations Act, 1999 (commonly known as the 
     `Stewardship End Result Contracting Demonstration Project') 
     (16 U.S.C. 2104 note; Public Law 105-277), shall apply to 
     contracts entered into under this paragraph, except that the 
     period of each such contract shall not exceed 10 years.
       ``(C) Status report.--Beginning with the assessment 
     required under paragraph (1) for fiscal year 2003, the 
     Secretary shall include in the annual assessment under 
     paragraph (1) a status report of the stewardship end result 
     contracts entered into under this paragraph.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as are necessary for each of fiscal years 2002 
     through 2006.
       ``(d) Termination of Authority.--The authority provided 
     under this section shall terminate on September 30, 2006.''.

     SEC. 810. ENHANCED COMMUNITY FIRE PROTECTION.

       (a) Findings.--Congress finds that--
       (1) the severity and intensity of wildfires have increased 
     dramatically over the past few decades as a result of past 
     fire and land management policies;
       (2) the record 2000 fire season is a prime example of what 
     can be expected if action is not taken to reduce the risk of 
     catastrophic wildfires;
       (3) wildfires threaten not only the forested resources of 
     the United States, but also the thousands of communities 
     intermingled with wildland in the wildland-urban interface;
       (4) wetland forests provide essential ecological services, 
     such as filtering pollutants, buffering important rivers and 
     estuaries, and minimizing flooding, that make the protection 
     and restoration of those forests worthy of special focus;
       (5) the National Fire Plan, if implemented to achieve 
     appropriate priorities, is the proper, coordinated, and most 
     effective means to address the issue of wildfires;
       (6) while adequate authorities exist to address the problem 
     of wildfires at the landscape level on Federal land, there is 
     limited authority to take action on most private land where 
     the largest threat to life and property lies; and
       (7) there is a significant Federal interest in enhancing 
     the protection of communities from wildfire.
       (b) Enhanced Community Fire Protection.--The Cooperative 
     Forestry Assistance Act of 1978 is amended by inserting after 
     section 10 (16 U.S.C. 2106) the following:

     ``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

       ``(a) Cooperative Management Relating to Wildfire 
     Threats.--Notwithstanding section 7 of the Federal Fire 
     Prevention and Control Act of 1974 (15 U.S.C. 2206), the 
     Secretary may cooperate with State foresters and equivalent 
     State officials to--
       ``(1) assist in the prevention, control, suppression, and 
     prescribed use of fires (including through the provision of 
     financial, technical, and related assistance);
       ``(2) protect communities from wildfire threats;
       ``(3) enhance the growth and maintenance of trees and 
     forests in a manner that promotes overall forest health; and
       ``(4) ensure the continued production of all forest 
     resources, including timber, outdoor recreation 
     opportunities, wildlife habitat, and clean water, through 
     conservation of forest cover on watersheds, shelterbelts, and 
     windbreaks.
       ``(b) Community and Private Land Fire Assistance Program.--
       ``(1) In general.--The Secretary shall establish a program 
     to be known as the `community and private land fire 
     assistance program' (referred to in this section as the 
     `Program')--
       ``(A) to focus the Federal role in promoting optimal 
     firefighting efficiency at the Federal, State, and local 
     levels;
       ``(B) to provide increased assistance to Federal projects 
     that establish landscape level protection from wildfires;
       ``(C) to expand outreach and education programs concerning 
     fire prevention to homeowners and communities; and
       ``(D) to establish defensible space against wildfires 
     around the homes and property of private landowners.
       ``(2) Administration and implementation.--The Program shall 
     be administered by the Secretary and, with respect to non-
     Federal land described in paragraph (3), carried out through 
     the State forester or equivalent State official.
       ``(3) Components.--The Secretary may carry out under the 
     Program, on National Forest System land and non-Federal land 
     determined by the Secretary in consultation with State 
     foresters and Committees--
       ``(A) fuel hazard mitigation and prevention;
       ``(B) invasive species management;
       ``(C) multiresource wildfire and community protection 
     planning;
       ``(D) community and landowner education enterprises, 
     including the program known as `FIREWISE';
       ``(E) market development and expansion;
       ``(F) improved use of wood products; and
       ``(G) restoration projects.
       ``(4) Priority.--In entering into contracts to carry out 
     projects under the Program, the Secretary shall give priority 
     to contracts with local persons or entities.
       ``(c) Authority.--The authority provided under this section 
     shall be in addition to any authority provided under section 
     10.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to the Secretary to carry out 
     this section $35,000,000 for each of fiscal years 2002 
     through 2006.''.

     SEC. 811. WATERSHED FORESTRY ASSISTANCE PROGRAM.

       (a) Findings.--Congress finds that--
       (1) there has been a dramatic shift in public attitudes and 
     perceptions about forest management, particularly in the 
     understanding and practice of sustainable forest management;
       (2) it is commonly recognized that proper stewardship of 
     forest land is essential to--
       (A) sustain and restore watershed health;
       (B) produce clean water; and
       (C) maintain healthy aquatic systems;
       (3) forests are increasingly important to the protection 
     and sustainability of drinking water supplies for more than 
     1/2 of the population of the United States;
       (4) forest loss and fragmentation in urbanizing areas are 
     contributing to flooding, degradation of urban stream habitat 
     and water quality, and public health concerns;
       (5) scientific evidence and public awareness with respect 
     to the manner in which forest management can positively 
     affect water quality and quantity, and the manner in which 
     trees, forests, and forestry practices (such as forest 
     buffers) can serve as solutions to water quality problems in 
     rural and urban areas, are increasing;
       (6) the application of forestry best management practices 
     developed at the State level has been found to greatly 
     facilitate the achievement of water quality goals;
       (7) significant efforts are underway to revisit and make 
     improvements on needed forestry best management practices;
       (8) according to the report of the Forest Service numbered 
     FS-660 and entitled ``Water and the Forest Service'', forests 
     are a requirement for maintenance of clean water because--
       (A) approximately 66 percent of the freshwater resources of 
     the United States originate on forests; and
       (B) forests cover approximately 1/3 of the land area of the 
     United States;
       (9) because almost 500,000,000 acres, or approximately 2/3, 
     of the forest land of the United States is owned by non-
     Federal entities, a significant burden is placed on private 
     forest landowners to provide or maintain the clean water 
     needed by the public for drinking, swimming, fishing, and a 
     number of other water uses;
       (10) because the decisions made by individual landowners 
     and communities will affect the ability to maintain the 
     health of rural and urban watersheds in the future, there is 
     a need to integrate forest management, conservation, 
     restoration, and stewardship in watershed management;
       (11) although water management is the primary 
     responsibility of States, the Federal Government has a 
     responsibility to promote and encourage the ability of States 
     and private forest landowners to sustain the delivery of 
     clean, abundant water from forest land;
       (12) as of the date of enactment of this Act, the 
     availability of Federal assistance to support forest 
     landowners to achieve the water goals identified in many 
     Federal laws (including regulations) is lacking; and
       (13) increased research for, education for, and technical 
     and financial assistance provided to, forest landowners and 
     communities

[[Page 26801]]

     that relate to the protection of watersheds and improvement 
     of water quality, are needed to realize the expectations of 
     the general public for clean water and healthy aquatic 
     systems.
       (b) Purposes.--The purposes of this section are to--
       (1) improve the understanding of landowners and the public 
     with respect to the relationship between water quality and 
     forest management;
       (2) encourage landowners to maintain tree cover and use 
     tree plantings and vegetative treatments as creative 
     solutions to water quality and quantity problems associated 
     with varying land uses;
       (3) enhance and complement source water protection in 
     watersheds that provide drinking water for municipalities;
       (4) establish new partnerships and collaborative watershed 
     approaches to forest management, stewardship, and protection; 
     and
       (5) provide technical and financial assistance to States to 
     deliver a coordinated program that through the provision of 
     technical, financial, and educational assistance to qualified 
     individuals and entities--
       (A) enhances State forestry best management practices 
     programs; and
       (B) protects and improves water quality on forest land.
       (c) Program.--The Cooperative Forestry Assistance Act of 
     1978 is amended by inserting after section 5A (as added by 
     section 806) the following:

     ``SEC. 5B. WATERSHED FORESTRY ASSISTANCE PROGRAM.

       ``(a) Establishment.--Subject to the availability of 
     appropriations, the Secretary shall establish a watershed 
     forestry assistance program (referred to in this section as 
     the `program') to provide to States, through State foresters 
     (as defined in section 4), technical, financial, and related 
     assistance to--
       ``(1) expand forest stewardship capacities and activities 
     through State forestry best management practices and other 
     means at the State level; and
       ``(2) prevent water quality degradation, and address 
     watershed issues, on non-Federal forest land.
       ``(b) Watershed Forestry Education, Technical Assistance, 
     and Planning.--
       ``(1) Plan.--
       ``(A) In general.--In carrying out the program, the 
     Secretary shall cooperate with State foresters to develop a 
     plan, to be administered by the Secretary and implemented by 
     State foresters, to provide technical assistance to assist 
     States in preventing and mitigating water quality 
     degradation.
       ``(B) Participation.--In developing the plan under 
     subparagraph (A), the Secretary shall encourage participation 
     of interested members of the public (including nonprofit 
     private organizations and local watershed councils).
       ``(2) Components.--The plan described in paragraph (1) 
     shall include provisions to--
       ``(A) build and strengthen watershed partnerships focusing 
     on forest land at the national, State, regional, and local 
     levels;
       ``(B) provide State forestry best management practices and 
     water quality technical assistance directly to private 
     landowners;
       ``(C) provide technical guidance relating to water quality 
     management through forest management in degraded watersheds 
     to land managers and policymakers;
       ``(D)(i) complement State nonpoint source assessment and 
     management plans established under section 319 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1329); and
       ``(ii) provide enhanced opportunities for coordination and 
     cooperation among Federal and State agencies having 
     responsibility for water and watershed management under that 
     Act; and
       ``(E) provide enhanced forest resource data and support for 
     improved implementation of State forestry best management 
     practices, including--
       ``(i) designing and conducting effectiveness and 
     implementation studies; and
       ``(ii) meeting in-State water quality assessment needs, 
     such as the development of water quality models that 
     correlate the management of forest land to water quality 
     measures and standards.
       ``(c) Watershed Forestry Cost-Share Program.--
       ``(1) Establishment.--In carrying out the program, the 
     Secretary shall establish a watershed forestry cost-share 
     program, to be administered by the Secretary and implemented 
     by State foresters, to provide grants and other assistance 
     for eligible programs and projects described in paragraph 
     (2).
       ``(2) Eligible programs and projects.--A community, 
     nonprofit group, or landowner may receive a grant or other 
     assistance under this subsection to carry out a State 
     forestry best management practices program or a watershed 
     forestry project if the program or project, as determined by 
     the Secretary--
       ``(A) is consistent with--
       ``(i) State nonpoint source assessment and management plan 
     objectives established under section 319 of the Federal Water 
     Pollution Control Act (33 U.S.C. 1329); and
       ``(ii) the cost-share requirements of this section; and
       ``(B) is designed to address critical forest stewardship, 
     watershed protection, and restoration needs of a State 
     through--
       ``(i) the use of trees and forests as solutions to water 
     quality problems in urban and agricultural areas;
       ``(ii) community-based planning, involvement, and action 
     through State, local and nonprofit partnerships;
       ``(iii) the application of and dissemination of information 
     on forestry best management practices relating to water 
     quality;
       ``(iv) watershed-scale forest management activities and 
     conservation planning; and
       ``(v) the restoration of wetland and stream side forests 
     and establishment of riparian vegetative buffers.
       ``(3) Allocation.--
       ``(A) In general.--After taking into consideration the 
     criteria described in subparagraph (B), the Secretary shall 
     allocate among States, for award by State foresters under 
     paragraph (4), the amounts made available to carry out this 
     subsection.
       ``(B) Criteria.--The criteria referred to in subparagraph 
     (A) are--
       ``(i) the number of acres of forest land, and land that 
     could be converted to forest land, in each State;
       ``(ii) the nonpoint source assessment and management plans 
     of each State, as developed under section 319 of the Federal 
     Water Pollution Control Act (33 U.S.C. 1329);
       ``(iii) the acres of wetland forests that have been lost or 
     degraded or cases in which forests may play a role in 
     restoring wetland resources;
       ``(iv) the number of non-Federal forest landowners in each 
     State; and
       ``(v) the extent to which the priorities of States are 
     designed to achieve a reasonable range of the purposes of the 
     program and, as a result, contribute to the water-related 
     goals of the United States.
       ``(4) Award of grants and assistance.--
       ``(A) In general.--In implementing the program under this 
     subsection, the State forester, in coordination with the 
     State Coordinating Committee established under section 19(b), 
     shall provide annual grants and cost-share assistance to 
     communities, nonprofit groups, and landowners to carry out 
     eligible programs and projects described in paragraph (2).
       ``(B) Application.--A community, nonprofit group, or 
     landowner that seeks to receive cost-share assistance under 
     this subsection shall submit to the State forester an 
     application, in such form and containing such information as 
     the State forester may prescribe, for the assistance.
       ``(C) Prioritization.--In awarding cost-share assistance 
     under this subsection, the Secretary shall give priority to 
     eligible programs and projects that are identified by the 
     State foresters and the State Stewardship Committees as 
     having a greater need for assistance.
       ``(D) Award.--On approval by the Secretary of an 
     application under subparagraph (B), the State forester shall 
     award to the applicant, from funds allocated to the State 
     under paragraph (3), such amount of cost-share assistance as 
     is requested in the application.
       ``(5) Cost sharing.--
       ``(A) Federal share.--The Federal share of the cost of 
     carrying out any eligible program or project under this 
     subsection shall not exceed 75 percent, of which not more 
     than 50 percent may be in the form of assistance provided 
     under this subsection.
       ``(B) Non-federal share.--The non-Federal share of the cost 
     of carrying out any eligible program or project under this 
     subsection may be provided in the form of cash, services, or 
     in-kind contributions.
       ``(d) Watershed Forester.--A State may use a portion of the 
     funds made available to the State under subsection (e) to 
     establish and fill a position of `Watershed Forester' to lead 
     State-wide programs and coordinate watershed-level projects.
       ``(e) Funding.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section $20,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Allocation.--Of the funds made available under 
     paragraph (1)--
       ``(A) 75 percent shall be used to carry out subsection (c); 
     and
       ``(B) 25 percent shall be used to carry out provisions of 
     this section other than subsection (c).''.

     SEC. 812. GENERAL PROVISIONS.

       Section 13 of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2109) is amended by striking subsection (f) 
     and inserting the following:
       ``(f) Grants, Contracts, and Other Agreements.--
       ``(1) In general.--In accordance with paragraph (2), the 
     Secretary may make such grants and enter into such contracts, 
     agreements, or other arrangements as the Secretary determines 
     are necessary to carry out this Act.
       ``(2) Assistance.--Notwithstanding any other provision of 
     this Act, the Secretary, with the concurrence of the 
     applicable State forester or equivalent State official, may 
     provide assistance under this Act directly to any public or 
     private entity, organization, or individual--
       ``(A) through a grant; or
       ``(B) by entering into a contract or cooperative 
     agreement.''.

[[Page 26802]]



     SEC. 813. STATE FOREST STEWARDSHIP COORDINATING COMMITTEES.

       Section 19(b) of the Cooperative Forestry Assistance Act of 
     1978 (16 U.S.C. 2113(b)) is amended--
       (1) in paragraph (1)(B)(i), by inserting ``United States 
     Fish and Wildlife Service,'' before ``Forest Service''; and
       (2) in paragraph (2)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(E) submit to the Secretary, the Committee on Agriculture 
     of the House of Representatives and the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, an annual 
     report that provides--
       ``(i) the list of members on the Committee described in 
     paragraph (1)(B); and
       ``(ii) for those members that may be included on the 
     Committee, but are not included because a determination that 
     it is not practicable to include the members has been made, 
     an explanation of the reasons for that determination.''.

                            TITLE IX--ENERGY

     SEC. 901. FINDINGS.

       Congress finds that--
       (1) there are many opportunities for the agricultural 
     sector and rural areas to produce renewable energy and 
     increase energy efficiency;
       (2) investments in renewable energy and energy efficiency--
       (A) enhance the energy security and independence of the 
     United States;
       (B) increase farmer and rancher income;
       (C) promote rural economic development;
       (D) provide environmental and public health benefits such 
     as cleaner air and water; and
       (E) improve electricity grid reliability, thereby reducing 
     the likelihood of blackouts and brownouts, particularly 
     during peak usage periods;
       (3) the public strongly supports renewable energy 
     generation and energy efficiency improvements as an important 
     component of a national energy strategy;
       (4)(A) the Federal Government is the country's largest 
     consumer of a vast array of products, spending in excess of 
     $200,000,000,000 per year;
       (B) purchases and use of products by the Federal Government 
     have a significant effect on the environment; and
       (C) accordingly, the Federal Government should lead the way 
     in purchasing biobased products so as to minimize 
     environmental impacts while supporting domestic producers of 
     biobased products;
       (5) the agricultural sector is a leading producer of 
     biobased products to meet domestic and international needs;
       (6) agriculture can play a significant role in the 
     development of fuel cell and hydrogen-based energy 
     technologies, which are critical technologies for a clean 
     energy future;
       (7)(A) wind energy is 1 of the fastest growing clean energy 
     technologies; and
       (B) there are tremendous economic development and 
     environmental quality benefits to be achieved by developing 
     both large-scale and small-scale wind power projects on farms 
     and in rural communities;
       (8) farm-based renewable energy generation can become one 
     of the major cash crops of the United States, improving the 
     livelihoods of hundreds of thousands of family farmers, 
     ranchers, and others and revitalizing rural communities;
       (9)(A) evidence continues to mount that increases in 
     atmospheric concentrations of greenhouse gases are 
     contributing to global climate change; and
       (B) agriculture can help in climate change mitigation by--
       (i) storing carbon in soils, plants, and forests;
       (ii) producing biofuels, chemicals, and power to replace 
     fossil fuels and petroleum-based products; and
       (iii) reducing emissions by capturing gases from animal 
     feeding operations, changing agricultural land practices, and 
     becoming more energy efficient;
       (10) because agricultural production is energy-intensive, 
     it is incumbent on the Federal Government to aid the 
     agricultural sector in reducing energy consumption and energy 
     costs;
       (11)(A) one way to help farmers, ranchers, and others 
     reduce energy use is through professional energy audits;
       (B) energy audits provide recommendations for improved 
     energy efficiency that, when acted on, offer an effective 
     means of reducing overall energy use and saving money; and
       (C) energy savings of 10 to 30 percent can typically be 
     achieved, and greater savings are often realized;
       (12) rural electric utilities are often geographically well 
     situated to develop renewable and distributed energy 
     supplies, enabling the utilities to diversify their energy 
     portfolios and afford their members or customers alternative 
     energy sources, which many such members and customers desire;
       (13) fuel cells are a highly efficient, clean, and flexible 
     technology for generating electricity from hydrogen that 
     promises to improve the environment, electricity reliability, 
     and energy security;
       (14)(A) because fuel cells can be made in any size, fuel 
     cells can be used for a wide variety of farm applications, 
     including powering farm vehicles, equipment, houses, and 
     other operations; and
       (B) much of the initial use of fuel cells is likely to be 
     in remote and off-grid applications in rural areas; and
       (15) hydrogen is a clean and flexible fuel that can play a 
     critical role in storing and transporting energy produced on 
     farms from renewable sources (including biomass, wind, and 
     solar energy).

     SEC. 902. CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT.

       The Consolidated Farm and Rural Development Act (as amended 
     by section 646) is amended by adding at the end the 
     following:

                       ``Subtitle L--Clean Energy

     ``SEC. 387A. DEFINITIONS.

       ``In this subtitle:
       ``(1) Biomass.--
       ``(A) In general.--The term `biomass' means any organic 
     material that is available on a renewable or recurring basis.
       ``(B) Inclusions.--The term `biomass' includes--
       ``(i) dedicated energy crops;
       ``(ii) trees grown for energy production;
       ``(iii) wood waste and wood residues;
       ``(iv) plants (including aquatic plants, grasses, and 
     agricultural crops);
       ``(v) residues;
       ``(vi) fibers;
       ``(vii) animal wastes and other waste materials; and
       ``(viii) fats and oils (including recycled fats and oils).
       ``(C) Exclusions.--The term `biomass' does not include--
       ``(i) old-growth timber (as determined by the Secretary);
       ``(ii) paper that is commonly recycled; or
       ``(iii) unsegregated garbage.
       ``(2) Renewable energy.--The term `renewable energy' means 
     energy derived from a wind, solar, biomass, geothermal, or 
     hydrogen source.
       ``(3) Rural small business.--The term `rural small 
     business' has the meaning that the Secretary shall prescribe 
     by regulation.

               ``CHAPTER 1--BIOBASED PRODUCT DEVELOPMENT

     ``SEC. 387B. BIOBASED PRODUCT PURCHASING REQUIREMENT.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means the 
     Administrator of the Environmental Protection Agency.
       ``(2) Biobased product.--The term `biobased product' means 
     a commercial or industrial product, as determined by the 
     Secretary (other than food or feed), that uses biological 
     products or renewable domestic agricultural materials 
     (including plant, animal, and marine materials) or forestry 
     materials.
       ``(3) Environmentally preferable.--The term 
     `environmentally preferable', with respect to a biobased 
     product, refers to a biobased product that has a lesser or 
     reduced effect on human health and the environment when 
     compared with competing nonbiobased products that serve the 
     same purpose.
       ``(b) Biobased Product Purchasing.--
       ``(1) Mandatory purchasing requirement for listed biobased 
     products.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than 180 days after the date of enactment of this 
     subtitle, the head of each Federal agency shall ensure that, 
     in purchasing any product, the Federal agency purchases a 
     biobased product, rather than a comparable nonbiobased 
     product, if the biobased product is listed on the list of 
     biobased products published under subsection (c)(1).
       ``(B) Biobased product not reasonably comparable.--A 
     Federal agency shall not be required to purchase a biobased 
     product under subparagraph (A) if the purchasing employee 
     submits to the Secretary and the Administrator of the Office 
     of Federal Procurement Policy a written determination that 
     the biobased product is not reasonably comparable to 
     nonbiobased products in price, performance, or availability.
       ``(C) Conflicting requirements.--The Secretary and the 
     Administrator shall jointly promulgate regulations with which 
     Federal agencies shall comply in cases of a conflict between 
     the biobased product purchasing requirement under 
     subparagraph (A) and a purchasing requirement under any other 
     provision of law.
       ``(2) Purchasing of nonlisted biobased products.--The head 
     of each Federal agency is encouraged to purchase, to the 
     maximum extent practicable, available biobased products that 
     are not listed on the list of biobased products published 
     under subsection (c)(1) when the Federal agency is not 
     required to purchase a biobased product that is on the list.
       ``(c) Administrative Action.--
       ``(1) List of biobased products.--
       ``(A) In general.--Not later than 180 days after the date 
     of enactment of this subtitle, and annually thereafter, the 
     Secretary, in consultation with the Administrator and the 
     Director of the National Institute of Standards and 
     Technology, shall publish a list of biobased products.

[[Page 26803]]

       ``(B) Environmentally preferable biobased products.--The 
     Secretary shall not include on the list under paragraph (1) 
     biobased products that are not environmentally preferable, as 
     determined by the Secretary.
       ``(C) Grants.--The Secretary may award grants to, or enter 
     into contracts or cooperative agreements with, eligible 
     persons, businesses, or institutions (as determined by the 
     Secretary) to assist in collecting data concerning the 
     evaluation of and lifecycle analyses of biobased products for 
     use in making the determinations necessary to carry out this 
     paragraph.
       ``(2) Guidance.--Not later than 240 days after the date of 
     enactment of this subtitle, the Office of Federal Procurement 
     Policy and Federal Acquisition Regulation Council shall make 
     the Federal Acquisition Regulation consistent with subsection 
     (b).
       ``(d) Education and Outreach Program.--The Secretary, in 
     cooperation with the Defense Acquisition University and the 
     Federal Acquisition Institute, shall conduct education 
     programs for all Federal procurement officers regarding 
     biobased products and the requirements of subsection (b).
       ``(e) Labeling.--
       ``(1) In general.--The Secretary shall develop a program, 
     similar to the Energy Star program of the Department of 
     Energy and the Environmental Protection Agency, under which 
     the Secretary authorizes producers of environmentally 
     preferable biobased products to use a label that identifies 
     the products as environmentally preferable biobased products.
       ``(2) Environmentally preferable biobased products.--The 
     Secretary shall monitor and take appropriate action regarding 
     the use of labels under paragraph (1) to ensure that the 
     biobased products using the labels do not include biobased 
     products that are not environmentally preferable, as 
     determined by the Secretary.
       ``(3) Contracting.--In carrying out paragraph (1), the 
     Secretary may contract with appropriate entities with 
     expertise in product labeling and standard setting.
       ``(f) Goal.--It shall be the goal of each Federal agency 
     for each fiscal year to purchase biobased products of an 
     aggregate value that is not less than 5 percent of the 
     aggregate value of all products purchased by the Federal 
     agency during the preceding fiscal year.
       ``(g) Reports.--As soon as practicable after the end of 
     each fiscal year, the Secretary and the Office of Federal 
     Procurement Policy shall jointly submit to Congress an annual 
     report that, for the fiscal year, describes the extent of--
       ``(1) compliance by each Federal agency with subsection 
     (b); and
       ``(2) the success of each Federal agency in achieving the 
     goal established under subsection (f).
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $2,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 387C. BIOREFINERY DEVELOPMENT GRANTS.

       ``(a) Purpose.--The purpose of this section is to assist in 
     the development of new and emerging technologies for the 
     conversion of biomass into petroleum substitutes, so as to--
       ``(1) develop transportation and other fuels and chemicals 
     from renewable sources;
       ``(2) reduce the dependence of the United States on 
     imported oil;
       ``(3) reduce greenhouse gas emissions;
       ``(4) diversify markets for raw agricultural and forestry 
     products; and
       ``(5) create jobs and enhance the economic development of 
     the rural economy.
       ``(b) Definitions.--In this section:
       ``(1) Advisory committee.--The term `Advisory Committee' 
     means the Biomass Research and Development Technical Advisory 
     Committee established by section 306 of the Biomass Research 
     and Development Act of 2000 (7 U.S.C. 7624 note; Public Law 
     106-224).
       ``(2) Biorefinery.--The term `biorefinery' means equipment 
     and processes that--
       ``(A) convert biomass into bioenergy fuels and chemicals; 
     and
       ``(B) may produce electricity as a byproduct.
       ``(3) Board.--The term `Board' means the Biomass Research 
     and Development Board established by section 305 of the 
     Biomass Research and Development Act of 2000 (7 U.S.C. 7624 
     note; Public Law 106-224).
       ``(4) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(c) Grants.--The Secretary shall award grants to eligible 
     entities to assist in paying the cost of development and 
     construction of biorefineries to carry out projects to 
     demonstrate the commercial viability of 1 or more processes 
     for converting biomass to fuels or chemicals.
       ``(d) Eligible Entities.--A corporation, farm cooperative, 
     association of farmers, national laboratory, university, 
     State energy agency or office, Indian tribe, or consortium 
     comprised of any of those entities shall be eligible to 
     receive a grant under subsection (c).
       ``(e) Competitive Basis for Awards.--
       ``(1) In general.--The Secretary shall award grants under 
     subsection (c) on a competitive basis in consultation with 
     the Board and Advisory Committee.
       ``(2) Selection criteria.--
       ``(A) In general.--The Secretary shall select projects to 
     receive grants under subsection (c) based on--
       ``(i) the likelihood that the projects will demonstrate the 
     commercial viability of a process for converting biomass to 
     fuels or chemicals; and
       ``(ii) the likelihood that the projects will produce 
     electricity.
       ``(B) Factors.--The factors to be considered under 
     subparagraph (A) shall include--
       ``(i) the potential market for the product or products;
       ``(ii) the quantity of petroleum the product will displace;
       ``(iii) the level of financial participation by the 
     applicants;
       ``(iv) the availability of adequate funding from other 
     sources;
       ``(v) the beneficial impact on resource conservation and 
     the environment;
       ``(vi) the participation of producer associations and 
     cooperatives;
       ``(vii) the timeframe in which the project will be 
     operational;
       ``(viii) the potential for rural economic development; and
       ``(ix) the participation of multiple eligible entities.
       ``(f) Cost Sharing.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amount of a grant for a project awarded under subsection (c) 
     shall not exceed 30 percent of the cost of the project.
       ``(2) Increased grant amount.--The Secretary may increase 
     the amount of a grant for a project under subsection (c) to 
     not more than 50 percent in the case of a project that the 
     Secretary finds particularly meritorious.
       ``(3) Form of grantee share.--
       ``(A) In general.--The grantee share of the cost of a 
     project may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(B) Limitation.--The amount of the grantee share of the 
     cost of a project that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 25 percent of the amount of the grantee share 
     determined under paragraph (1).
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 387D. BIODIESEL FUEL EDUCATION PROGRAM.

       ``(a) Findings.--Congress finds that--
       ``(1) biodiesel fuel use can help reduce greenhouse gas 
     emissions and public health risks associated with air 
     pollution;
       ``(2) biodiesel fuel use enhances energy security by 
     reducing petroleum consumption;
       ``(3) biodiesel fuel is nearing the transition from the 
     research and development phase to commercialization;
       ``(4) biodiesel fuel is still relatively unknown to the 
     public and even to diesel fuel users; and
       ``(5) education of, and provision of technical support to, 
     current and future biodiesel fuel users will be critical to 
     the widespread use of biodiesel fuel.
       ``(b) Establishment.--The Secretary shall, under such terms 
     and conditions as are appropriate, offer 1 or more 
     competitive grants to eligible entities to educate Federal, 
     State, regional, and local government entities and private 
     entities that operate vehicle fleets, other interested 
     entities (as determined by the Secretary), and the public 
     about the benefits of biodiesel fuel use.
       ``(c) Eligible Entities.--To receive a grant under 
     subsection (b), an entity--
       ``(1) shall be a nonprofit organization; and
       ``(2) shall have demonstrated expertise in biodiesel fuel 
     production, use, and distribution.
       ``(d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006, to remain available 
     until expended.

    ``CHAPTER 2--RENEWABLE ENERGY DEVELOPMENT AND ENERGY EFFICIENCY

     ``SEC. 387E. RENEWABLE ENERGY DEVELOPMENT LOAN AND GRANT 
                   PROGRAM.

       ``(a) In General.--The Secretary, acting through the Rural 
     Business Cooperative Service, in addition to exercising 
     authority to make loans and loan guarantees under other law, 
     shall establish a program under which the Secretary shall 
     make loans and loan guarantees and competitively award grants 
     to assist farmers and ranchers in projects to establish new, 
     or expand existing, farmer or rancher cooperatives, or other 
     rural business ventures (as determined by the Secretary), 
     to--
       ``(1) enable farmers and ranchers to become owners of 
     sources of renewable electric energy and marketers of 
     electric energy produced from renewable sources;
       ``(2) provide new income streams for farmers and ranchers;
       ``(3) increase the quantity of electricity available from 
     renewable energy sources; and
       ``(4) provide environmental and public health benefits to 
     rural communities and the United States as a whole.
       ``(b) Ownership Requirement.--At least 51 percent of the 
     interest in a rural business

[[Page 26804]]

     venture assisted with a grant under subsection (a) shall be 
     owned by farmers or ranchers.
       ``(c) Maximum Amount of Loans and Grants.--
       ``(1) Loans.--The amount of a loan made or guaranteed for a 
     project under subsection (a) shall not exceed $10,000,000.
       ``(2) Grants.--The amount of a grant made for a project 
     under subsection (a) shall not exceed $200,000 for a fiscal 
     year.
       ``(d) Cost Sharing.--
       ``(1) In general.--The total amount of loans made or 
     guaranteed or grants awarded under subsection (a) for a 
     project shall not exceed 50 percent of the cost of the 
     activity funded by the loan or grant.
       ``(2) Form of grantee share.--
       ``(A) In general.--The grantee share of the cost of the 
     activity may be made in the form of cash or the provision of 
     services, material, or other in-kind contributions.
       ``(B) Limitation.--The amount of the grantee share of the 
     cost of an activity that is made in the form of the provision 
     of services, material, or other in-kind contributions shall 
     not exceed 25 percent of the amount of the grantee share, as 
     determined under paragraph (1).
       ``(e) Interest Rate.--A loan made or guaranteed under 
     subsection (a) shall bear an interest rate that does not 
     exceed 4 percent.
       ``(f) Use of Funds.--
       ``(1) Permitted uses.--
       ``(A) Grants.--A recipient of a grant awarded under 
     subsection (a) may use the grant funds to develop a business 
     plan or perform a feasibility study to establish a viable 
     marketing opportunity for renewable electric energy 
     generation and sale.
       ``(B) Loans.--A recipient of a loan or loan guarantee under 
     subsection (a) may use the loan funds to provide capital for 
     start-up costs associated with the rural business venture or 
     the promotion of the aggregation of renewable electric energy 
     sources.
       ``(2) Prohibited uses.--A recipient of a loan, loan 
     guarantee, or grant under subsection (a) shall not use the 
     loan or grant funds for planning, repair, rehabilitation, 
     acquisition, or construction of a building.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $16,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 387F. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT 
                   PROGRAM.

       ``(a) In General.--The Secretary, acting through the Rural 
     Business Cooperative Service, shall make competitive grants 
     to eligible entities to enable the eligible entities to carry 
     out a program to assist farmers, and ranchers, and rural 
     small businesses (as determined by the Secretary) in becoming 
     more energy efficient and in using renewable energy 
     technology.
       ``(b) Eligible Entities.--Entities eligible to carry out a 
     program under subsection (a) include--
       ``(1) a State energy or agricultural office;
       ``(2) a regional or State-based energy organization or 
     energy organization of an Indian tribe (as defined in section 
     4 of the Indian Self-Determination and Education Assistance 
     Act (25 U.S.C. 450b));
       ``(3) a land-grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103)) 
     or other college or university;
       ``(4) a farm bureau or organization;
       ``(5) a rural electric cooperative or utility;
       ``(6) a nonprofit organization; and
       ``(7) any other entity, as determined by the Secretary.
       ``(c) Merit Review.--
       ``(1) Merit review panel.--The Secretary shall establish a 
     merit review panel to review applications for grants under 
     subsection (a) that uses the expertise of other Federal 
     agencies (including the Department of Energy and the 
     Environmental Protection Agency), industry, and 
     nongovernmental organizations.
       ``(2) Selection criteria.--In reviewing applications of 
     eligible entities to receive grants under subsection (a), the 
     merit review panel shall consider--
       ``(A) the ability and expertise of the eligible entity in 
     providing professional energy audits and renewable energy 
     assessments;
       ``(B) the geographic scope of the program proposed by the 
     eligible entity;
       ``(C) the number of farmers, ranchers, and rural small 
     businesses to be assisted by the program;
       ``(D) the potential for energy savings and environmental 
     and public health benefits resulting from the program; and
       ``(E) the plan of the eligible entity for educating 
     farmers, ranchers, and rural small businesses on the benefits 
     of energy efficiency and renewable energy development.
       ``(d) Use of Grant Funds.--A recipient of a grant under 
     subsection (a) shall use the grant funds to--
       ``(1)(A) conduct energy audits for farmers, ranchers, and 
     rural small businesses to provide farmers, ranchers, and 
     rural small businesses recommendations for energy efficiency 
     and renewable energy development opportunities; and
       ``(B) conduct workshops on that subject as appropriate;
       ``(2) make farmers, ranchers, and rural small businesses 
     aware of, and ensure that they have access to--
       ``(A) financial assistance under section 387G; and
       ``(B) other Federal, State, and local financial assistance 
     programs for which farmers, ranchers, and rural small 
     businesses may be eligible; and
       ``(3) arrange private financial assistance to farmers, 
     ranchers, and rural small businesses on favorable terms.
       ``(e) Cost Sharing.--
       ``(1) In general.--A recipient of a grant under subsection 
     (a) that conducts an energy audit for a farmer, rancher, or 
     rural small business under subsection (d)(1) shall require 
     that, as a condition to the conduct of the energy audit, the 
     farmer, rancher, or rural small business pay at least 25 
     percent of the cost of the audit.
       ``(2) Implementation of recommendations.--If a farmer, 
     rancher, or rural small business substantially implements the 
     recommendations made in connection with an energy audit, the 
     Secretary may reimburse the farmer, rancher, or rural small 
     business the amount that is equal to the share of the cost 
     paid by the farmer, rancher, or rural small business under 
     paragraph (1).
       ``(f) Reports.--The Secretary shall submit to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate an annual report on the implementation of this 
     section.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $15,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 387G. LOANS, LOAN GUARANTEES, AND GRANTS TO FARMERS, 
                   RANCHERS, AND RURAL SMALL BUSINESSES FOR 
                   RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY 
                   IMPROVEMENTS.

       ``(a) In General.--In addition to exercising authority to 
     make loans and loan guarantees under other law, the Secretary 
     shall make loans, loan guarantees, and grants to farmers, 
     ranchers, and rural small businesses to--
       ``(1) purchase renewable energy systems; and
       ``(2) make energy efficiency improvements.
       ``(b) Eligibility of Farmers and Ranchers.--To be eligible 
     to receive a grant under subsection (a) for a fiscal year, a 
     farmer or rancher shall have produced not more than 
     $1,000,000 in market value of agricultural products during 
     the preceding fiscal year, as determined by the Secretary.
       ``(c) Cost Sharing.--
       ``(1) Renewable energy systems.--
       ``(A) In general.--
       ``(i) Grants.--The amount of a grant made under subsection 
     (a) for a renewable energy system shall not exceed 15 percent 
     of the cost of the renewable energy system.
       ``(ii) Loans.--The amount of a loan made or guaranteed 
     under subsection (a) for a renewable energy system shall not 
     exceed 35 percent of the cost of the renewable energy system.
       ``(B) Factors.--In determining the amount of a grant or 
     loan under subparagraph (A), the Secretary shall take into 
     consideration--
       ``(i) the type of renewable energy system to be purchased;
       ``(ii) the estimated quantity of energy to be generated or 
     displaced by the renewable energy system;
       ``(iii) the expected environmental benefits of the 
     renewable energy system;
       ``(iv) the extent to which the renewable energy system will 
     be replicable; and
       ``(v) other factors as appropriate.
       ``(2) Energy efficiency improvements.--
       ``(A) In general.--
       ``(i) Grants.--The amount of a grant made under subsection 
     (a) for an energy efficiency improvement shall not exceed 15 
     percent of the cost of the energy efficiency improvement.
       ``(ii) Loans.--The amount of a loan made or guaranteed 
     under subsection (a) for an energy efficiency project shall 
     not exceed 35 percent of the cost of the energy efficiency 
     improvement.
       ``(B) Factors.--In determining the amount of a grant or 
     loan under subparagraph (A), the Secretary shall take into 
     consideration--
       ``(i) the estimated length of time it would take for the 
     energy savings generated by the improvement to equal the cost 
     of the improvement;
       ``(ii) the amount of energy savings expected to be derived 
     from the improvement; and
       ``(iii) other factors as appropriate.
       ``(d) Interest Rate.--A loan made or guaranteed under 
     subsection (a) shall bear interest at a rate not exceeding 4 
     percent.
       ``(e) Energy Audit and Renewable Energy Development 
     Program.--
       ``(1) Preference.--In making loans, loan guarantees, and 
     grants under subsection (a), the Secretary shall give 
     preference to participants in the energy audit and renewable 
     energy development program under section 387F.
       ``(2) Reservation of funding.--The Secretary shall reserve 
     at least 25 percent of the funds made available to carry out 
     this section for each of fiscal years 2002 through 2006

[[Page 26805]]

     to participants in the energy audit and renewable energy 
     development program under section 387F.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $33,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 387H. HYDROGEN AND FUEL CELL TECHNOLOGIES PROGRAM.

       ``(a) In General.--The Secretary of Agriculture, in 
     consultation with the Secretary of Energy, shall establish a 
     program under which the Secretary of Agriculture shall 
     competitively award grants to, or enter into contracts or 
     cooperative agreements with, eligible entities for--
       ``(1) projects to demonstrate the use of hydrogen 
     technologies and fuel cell technologies in farm, ranch, and 
     rural applications; and
       ``(2) as appropriate, studies of the technical, 
     environmental, and economic viability, in farm, ranch, and 
     rural applications, of innovative hydrogen and fuel cell 
     technologies not ready for demonstration.
       ``(b) Eligible Entities.--Under subsection (a), the 
     Secretary may make a grant to or enter into a contract or 
     cooperative agreement with--
       ``(1) a Federal research agency;
       ``(2) a national laboratory;
       ``(3) a college or university or a research foundation 
     maintained by a college or university;
       ``(4) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(5) a State agricultural experiment station; or
       ``(6) an individual.
       ``(c) Selection Criteria.--In selecting projects for 
     grants, contracts, and cooperative agreements under 
     subsection (a)(1), the Secretary shall give preference to 
     projects that demonstrate technologies that--
       ``(1) are innovative;
       ``(2) use renewable energy sources;
       ``(3) produce multiple sources of energy;
       ``(4) provide significant environmental benefits;
       ``(5) are likely to be economically competitive; and
       ``(6) have potential for commercialization as mass-
     produced, farm- or ranch-sized systems.
       ``(d) Cost Sharing.--The amount of financial assistance 
     provided for a project under a grant, contract, or 
     cooperative agreement under subsection (a) shall not exceed 
     50 percent of the cost of the project.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each of fiscal years 2002 through 2006.

     ``SEC. 387I. TECHNICAL ASSISTANCE FOR FARMERS AND RANCHERS TO 
                   DEVELOP RENEWABLE ENERGY RESOURCES.

       ``(a) In General.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service 
     in consultation with the Natural Resources Conservation 
     Service, regional biomass programs under the Department of 
     Energy, and other entities as appropriate, may provide for 
     education and technical assistance to farmers and ranchers 
     for the development and marketing of renewable energy 
     resources.
       ``(b) Administrative Expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this section to pay administrative expenses 
     incurred in carrying out this section.

     ``CHAPTER 3--CARBON SEQUESTRATION RESEARCH, DEVELOPMENT, AND 
                         DEMONSTRATION PROGRAM

     ``SEC. 387J. RESEARCH.

       ``(a) Basic Research.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall carry out research to 
     promote understanding of--
       ``(A) the net sequestration of organic carbon in soils and 
     plants (including trees); and
       ``(B) net emissions of other greenhouse gases from 
     agriculture.
       ``(2) Agricultural research service.--The Secretary, acting 
     through the Agricultural Research Service, shall collaborate 
     with other Federal agencies in developing data and carrying 
     out research addressing carbon losses and gains in soils and 
     plants (including trees) and net emissions of methane and 
     nitrous oxide from cultivation and animal management 
     activities.
       ``(3) Cooperative state research, education, and extension 
     service.--
       ``(A) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall establish a competitive grant program to carry out 
     research on the matters described in paragraph (1) by 
     eligible entities.
       ``(B) Eligible entities.--Under subparagraph (A), the 
     Secretary may make a grant to--
       ``(i) a Federal research agency;
       ``(ii) a national laboratory;
       ``(iii) a college or university or a research foundation 
     maintained by a college or university;
       ``(iv) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(v) a State agricultural experiment station; or
       ``(vi) an individual.
       ``(C) Consultation on research topics.--Before issuing a 
     request for proposals for basic research under paragraph (1), 
     the Cooperative State Research, Education, and Extension 
     Service shall consult with the Agricultural Research Service 
     and the Forest Service to ensure that proposed research areas 
     are complementary with and do not duplicate other research 
     projects funded by the Department or other Federal agencies.
       ``(D) Administrative expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this subsection to pay administrative 
     expenses incurred in carrying out this subsection.
       ``(b) Applied Research.--
       ``(1) In general.--The Secretary shall carry out applied 
     research in the areas of soil science, agronomy, agricultural 
     economics, forestry, and other agricultural sciences to--
       ``(A) promote understanding of--
       ``(i) how agricultural and forestry practices affect the 
     sequestration of organic and inorganic carbon in soils and 
     plants (including trees) and net emissions of other 
     greenhouse gases;
       ``(ii) how changes in soil carbon pools in soils and plants 
     (including trees) are cost-effectively measured, monitored, 
     and verified; and
       ``(iii) how public programs and private market approaches 
     can be devised to incorporate carbon sequestration in a 
     broader societal greenhouse gas emission reduction effort;
       ``(B) develop methods for establishing baselines for 
     measuring the quantities of carbon and other greenhouse gases 
     sequestered; and
       ``(C) evaluate leakage and performance issues.
       ``(2) Requirements.--To the maximum extent practicable, 
     applied research under paragraph (1) shall--
       ``(A) use existing technologies and methods; and
       ``(B) provide methodologies that are accessible to a 
     nontechnical audience.
       ``(3) Minimization of adverse environmental impacts.--All 
     applied research under paragraph (1) shall be conducted with 
     an emphasis on minimizing adverse environmental impacts.
       ``(4) Natural resources and the environment.--The 
     Secretary, acting through the Natural Resources Conservation 
     Service and the Forest Service, shall collaborate with other 
     Federal agencies in developing new measuring techniques and 
     equipment or adapting existing techniques and equipment to 
     enable cost-effective and accurate monitoring and 
     verification, for a wide range of agricultural and forestry 
     practices, of--
       ``(A) changes in carbon content in soils and plants 
     (including trees); and
       ``(B) net emissions of other greenhouse gases.
       ``(5) Cooperative state research, education, and extension 
     service.--
       ``(A) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service 
     and the Forest Service, shall establish a competitive grant 
     program to encourage research on the matters described in 
     paragraph (1) by eligible entities.
       ``(B) Eligible entities.--Under subparagraph (A), the 
     Secretary may make a grant to--
       ``(i) a Federal research agency;
       ``(ii) a national laboratory;
       ``(iii) a college or university or a research foundation 
     maintained by a college or university;
       ``(iv) a private research organization with an established 
     and demonstrated capacity to perform research or technology 
     transfer;
       ``(v) a State agricultural experiment station; or
       ``(vi) an individual.
       ``(C) Consultation on research topics.--Before issuing a 
     request for proposals for applied research under paragraph 
     (1), the Cooperative State Research, Education, and Extension 
     Service and the Forest Service shall consult with the Natural 
     Resources Conservation Service and the Agricultural Research 
     Service to ensure that proposed research areas are 
     complementary with and do not duplicate research projects 
     funded by the Department of Agriculture or other Federal 
     agencies.
       ``(D) Administrative expenses.--The Secretary, acting 
     through the Cooperative State Research, Education, and 
     Extension Service, may retain up to 4 percent of the amounts 
     made available for each fiscal year to carry out this 
     subsection to pay administrative expenses incurred in 
     carrying out this subsection.
       ``(c) Research Consortia.--
       ``(1) In general.--The Secretary may designate not more 
     than 2 research consortia to carry out research projects 
     under this section, with the requirement that the consortia 
     propose to conduct basic research under subsection (a) and 
     applied research under subsection (b) .
       ``(2) Selection.--The consortia shall be selected on a 
     competitive basis by the Cooperative State Research, 
     Education, and Extension Service.

[[Page 26806]]

       ``(3) Eligible consortium participants.--Entities eligible 
     to participate in a consortium include--
       ``(A) a land-grant college or university (as defined in 
     section 1404 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103));
       ``(B) a private research institution;
       ``(C) a State agency;
       ``(D) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b));
       ``(E) an agency of the Department of Agriculture;
       ``(F) a research center of the National Aeronautics and 
     Space Administration, the Department of Energy, or any other 
     Federal agency;
       ``(G) an agricultural business or organization with 
     demonstrated expertise in areas covered by this section; and
       ``(H) a representative of the private sector with 
     demonstrated expertise in the areas.
       ``(4) Reservation of funding.--If the Secretary designates 
     1 or 2 consortia, the Secretary shall reserve for research 
     projects carried out by the consortium or consortia not more 
     than 25 percent of the amounts made available to carry out 
     this section for a fiscal year.
       ``(d) Standards for Measuring Carbon and Other Greenhouse 
     Gas Content.--
       ``(1) Conference.--Not later than 3 years after the date of 
     enactment of this subtitle, the Secretary shall convene a 
     conference of key scientific experts on carbon sequestration 
     from various sectors (including the government, academic, and 
     private sectors) to--
       ``(A) discuss benchmark standards for measuring the carbon 
     content of soils and plants (including trees) and net 
     emissions of other greenhouse gases;
       ``(B) propose techniques and modeling approaches for 
     measuring carbon content with a level of precision that is 
     discussed by the participants in the conference; and
       ``(C) evaluate results of analyses on baseline, permanence, 
     and leakage issues.
       ``(2) Development of benchmark standards.--The Secretary 
     shall, with notice and an opportunity for comment, develop 
     benchmark standards for measuring the carbon content of soils 
     and plants (including trees) based on--
       ``(A) information from the conference held under paragraph 
     (1);
       ``(B) research performed under this section; and
       ``(C) other information available to the Secretary.
       ``(3) Report.--The Secretary shall submit to the Committee 
     on Agriculture of the House of Representatives and the 
     Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a report on the results of the conference and the 
     designation of benchmark standards.
       ``(e) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $25,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Administrative expenses.--The Secretary may retain up 
     to 4 percent of the amounts made available for each fiscal 
     year to carry out this section to pay administrative expenses 
     incurred in carrying out this section.

     ``SEC. 387K. DEMONSTRATION PROJECTS AND OUTREACH.

       ``(a) Demonstration Projects.--
       ``(1) Development of monitoring programs.--
       ``(A) In general.--The Secretary, in cooperation with local 
     extension agents, experts from land grant universities, and 
     other local agricultural or conservation organizations, shall 
     develop user-friendly programs that combine measurement tools 
     and modeling techniques into integrated packages to monitor 
     the carbon sequestering benefits of conservation practices 
     and net changes in greenhouse gas emissions.
       ``(B) Benchmark levels of precision.--The Secretary shall 
     administer programs developed under subparagraph (A) in a 
     manner that achieves, to the maximum extent practicable, 
     benchmark levels of precision in the measurement, in a cost-
     effective manner, of benefits and changes described in 
     subparagraph (A).
       ``(2) Projects.--
       ``(A) In general.--The Secretary shall establish a program 
     under which the monitoring programs developed under paragraph 
     (1) are used in projects to demonstrate the feasibility of 
     methods of measuring, verifying, and monitoring--
       ``(i) changes in organic carbon content and other carbon 
     pools in soils and plants (including trees); and
       ``(ii) net changes in emissions of other greenhouse gases.
       ``(B) Evaluation of implications.--The projects under 
     subparagraph (A) shall include evaluation of the implications 
     for reassessed baselines, carbon or other greenhouse gas 
     leakage, and the permanence of sequestration.
       ``(C) Submission of proposals.--Proposals for projects 
     under subparagraph (A) shall be submitted by the appropriate 
     agency of each State, in consultation with interested local 
     jurisdictions and State agricultural and conservation 
     organizations.
       ``(b) Outreach.--
       ``(1) In general.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall widely disseminate information about the economic and 
     environmental benefits that can be generated by adoption of 
     conservation practices that increase sequestration of carbon 
     and reduce emission of other greenhouse gases.
       ``(2) Project results.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall provide for the dissemination to farmers, ranchers, 
     private forest landowners, and appropriate State agencies in 
     each State of information concerning--
       ``(A) the results of demonstration projects under 
     subsection (a)(2); and
       ``(B) the manner in which the methods demonstrated in the 
     projects might be applicable to the operations of the farmers 
     and ranchers.
       ``(3) Policy outreach.--The Secretary, acting through the 
     Cooperative State Research, Education, and Extension Service, 
     shall disseminate information on the connection between 
     global climate change mitigation strategies and agriculture 
     and forestry, so that farmers and ranchers may better 
     understand the global implications of the activities of 
     farmers and ranchers.
       ``(c) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section $10,000,000 for each of fiscal 
     years 2002 through 2006.
       ``(2) Allocation.--Of the amounts made available to carry 
     out this section for a fiscal year, at least 50 percent shall 
     be allocated for demonstration projects under subsection 
     (a)(2).''.

     SEC. 903. BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000.

       (a) In General.--The Biomass Research and Development Act 
     of 2000 (7 U.S.C. 7624 note; Public Law 106-224) is amended--
       (1) in section 307, by striking subsection (f);
       (2) by redesignating section 310 as section 311; and
       (3) by inserting after section 309 the following:

     ``SEC. 310. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out this 
     title $15,000,000 for each of fiscal years 2002 through 
     2006.''.
       (b) Termination of Authority.--Section 311 of the Biomass 
     Research and Development Act of 2000 (7 U.S.C. 7624 note; 
     Public Law 106-224) (as redesignated by subsection (a)) is 
     amended by striking ``December 31, 2005'' and inserting 
     ``September 30, 2006''.

     SEC. 904. RURAL ELECTRIFICATION ACT OF 1936.

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

     ``SEC. 20. FINANCIAL AND TECHNICAL ASSISTANCE FOR RENEWABLE 
                   ENERGY PROJECTS.

       ``(a) Definition of Renewable Energy.--In this section, the 
     term `renewable energy' means energy derived from a wind, 
     solar, biomass, geothermal, or hydrogen source.
       ``(b) Loans, Loan Guarantees, and Grants.--The Secretary 
     shall make loans, loan guarantees, and grants to rural 
     electric cooperatives and other rural electric utilities to 
     promote the development of economically and environmentally 
     sustainable renewable energy projects to serve the needs of 
     rural communities or for rural economic development.
       ``(c) Interest Rate.--A loan made or guaranteed under 
     subsection (b) shall bear interest at a rate not exceeding 4 
     percent.
       ``(d) Use of Funds.--
       ``(1) Grants.--A recipient of a grant under subsection (a) 
     may use the grant funds to pay up to 75 percent of the cost 
     of an economic feasibility study or technical assistance for 
     a renewable energy project.
       ``(2) Loans.--If a renewable energy project is determined 
     to be economically feasible, a recipient of a loan or loan 
     guarantee under subsection (a) may use the loan funds to pay 
     a percentage of the cost of the project determined by the 
     Secretary.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $9,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 905. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

       (a) Findings.--Congress finds that--
       (1) greenhouse gas emissions resulting from human activity 
     present potential risks and potential opportunities for 
     agricultural and forestry production;
       (2) there is a need to identify cost-effective methods that 
     can be used in the agricultural and forestry sectors to 
     reduce the threat of climate change;
       (3) deforestation and other land use changes account for 
     approximately 1,600,000,000 of the 7,900,000,000 metric tons 
     of the average annual worldwide quantity of carbon emitted 
     during the 1990s;
       (4) ocean and terrestrial systems each sequestered 
     approximately 2,300,000,000 metric tons of carbon annually, 
     resulting in a sequestration of 60 percent of the annual 
     human-induced emissions of carbon during the 1990s;
       (5) there are opportunities for increasing the quantity of 
     carbon that can be stored in terrestrial systems through 
     improved,

[[Page 26807]]

     human-induced agricultural and forestry practices;
       (6) increasing the carbon content of soil helps to reduce 
     erosion, reduce flooding, minimize the effects of drought, 
     prevent nutrients and pesticides from washing into water 
     bodies, and contribute to water infiltration, air and water 
     holding capacity, and good seed germination and plant growth;
       (7) tree planting and wetland restoration could play a 
     major role in sequestering carbon and reducing greenhouse gas 
     concentrations in the atmosphere;
       (8) nitrogen management is a cost-effective method of 
     addressing nutrient overenrichment in the estuaries of the 
     United States and of reducing emissions of nitrous oxide;
       (9) animal feed and waste management can be cost-effective 
     methods to address water quality issues and reduce emissions 
     of methane; and
       (10) there is a need to--
       (A) demonstrate that carbon sequestration in soils, plants, 
     and forests and reductions in greenhouse gas emissions 
     through nitrogen and animal feed and waste management can be 
     measured and verified; and
       (B) develop and refine quantification, verification, and 
     auditing methodologies for carbon sequestration and 
     greenhouse gas emission reductions on a project by project 
     basis.
       (b) Program.--Title IV of the Agricultural Research, 
     Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 409. CARBON SEQUESTRATION DEMONSTRATION PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible project.--The term `eligible project' means 
     a project that is likely to result in--
       ``(A) demonstrable reductions in net emissions of 
     greenhouse gases; or
       ``(B) demonstrable net increases in the quantity of carbon 
     sequestered in soils and forests.
       ``(2) Panel.--The term `panel' means the panel of experts 
     established under subsection (b)(4)(A).
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting in consultation with--
       ``(A) the Under Secretary of Agriculture for Natural 
     Resources and Environment;
       ``(B) the Under Secretary of Agriculture for Research, 
     Education, and Economics;
       ``(C) the Chief Economist of the Department; and
       ``(D) the panel.
       ``(b) Demonstration Program.--
       ``(1) Establishment.--Subject to the availability of 
     appropriations, the Secretary shall establish a program to 
     provide grants, on a competitive, cost-shared basis, to 
     agricultural producers to assist in paying the costs incurred 
     in measuring, estimating, monitoring, verifying, auditing, 
     and testing methodologies involved in public-private 
     partnerships for measurement and monitoring of greenhouse gas 
     fluxes (including costs incurred in employing certified 
     independent third persons to carry out those activities).
       ``(2) Conditions for receipt of grant.--As a condition of 
     the acceptance of a grant under paragraph (1), an 
     agricultural producer shall--
       ``(A) establish a carbon and greenhouse gas monitoring, 
     verification, and reporting system that meets such 
     requirements as the Secretary shall prescribe; and
       ``(B) under the system and through the use of an 
     independent third party for any necessary monitoring, 
     verifying, reporting, and auditing, measure and report to the 
     Secretary the quantity of carbon sequestered, or the quantity 
     of greenhouse gas emissions reduced, as a result of the 
     conduct of an eligible project.
       ``(3) Criteria for award of grant.--
       ``(A) In general.--In awarding a grant for an eligible 
     project under paragraph (1), the Secretary shall take into 
     consideration--
       ``(i) the likelihood of the eligible project in succeeding 
     in achieving greenhouse gas emissions reductions and net 
     carbon sequestration increases; and
       ``(ii) the usefulness of the information to be obtained 
     from the eligible project in determining how best to 
     quantify, monitor, and verify sequestered carbon or 
     reductions in greenhouse gas emissions.
       ``(B) Priority criteria.--The Secretary shall give priority 
     in awarding a grant under paragraph (1) to an eligible 
     project that--
       ``(i) involves multiple parties, a whole farm approach, or 
     any other approach, such as the aggregation of land areas, 
     that would--

       ``(I) increase the environmental benefits or reduce the 
     transaction costs of the eligible project; and
       ``(II) reduce the costs of measuring, monitoring, and 
     verifying any net sequestration of carbon or net reduction in 
     greenhouse gas emissions;

       ``(ii) is designed to achieve long-term sequestration of 
     carbon or long-term reductions in greenhouse gas emissions;
       ``(iii) is designed to address concerns concerning leakage;
       ``(iv) provides certain other benefits, such as 
     improvements in--

       ``(I) soil fertility;
       ``(II) wildlife habitat;
       ``(III) water quality;
       ``(IV) soil erosion management;
       ``(V) the use of renewable resources to produce energy;
       ``(VI) the avoidance of ecosystem fragmentation; and
       ``(VII) the promotion of ecosystem restoration with native 
     species; or

       ``(v) does not involve the conversion of native forest land 
     or native grassland.
       ``(4) Panel.--
       ``(A) In general.--The Secretary shall establish a panel to 
     provide advice and recommendations to the Secretary with 
     respect to criteria for awarding grants under this 
     subsection.
       ``(B) Composition.--The panel shall be composed of the 
     following representatives, to be appointed by the Secretary:
       ``(i) Experts from each of--

       ``(I) the Department;
       ``(II) the Environmental Protection Agency; and

       ``(III) the Department of Energy.

       ``(ii) Experts from nongovernmental and academic entities.
       ``(5) Payment of grant funds.--The Secretary shall provide 
     a grant awarded under this section in such number of 
     installments as is necessary to ensure proper implementation 
     of an eligible project.
       ``(c) Methodology Grant Program.--
       ``(1) Establishment.--The Secretary shall establish a 
     program to provide grants to determine the best methodologies 
     for estimating and measuring increases or decreases in--
       ``(A) agricultural greenhouse gas emissions; and
       ``(B) the quantity of carbon sequestered in soils, forests, 
     and trees.
       ``(2) Eligible recipients.--The Secretary shall award a 
     grant under paragraph (1), on a competitive basis, to a 
     college or university, or other research institution, that 
     seeks to demonstrate the viability of a methodology described 
     in paragraph (1).
       ``(d) Dissemination of Information.--As soon as practicable 
     after the date of enactment of this section, the Secretary 
     shall establish an Internet site through which agricultural 
     producers may obtain information concerning--
       ``(1) potential public-private partnerships for measurement 
     and monitoring of greenhouse gas fluxes; and
       ``(2) activities of the Secretary under this section.
       ``(e) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2002 through 2006.''.

     SEC. 906. SENSE OF CONGRESS CONCERNING NATIONAL RENEWABLE 
                   FUELS STANDARD.

       It is the sense of Congress that--
       (1) Congress supports and encourages adoption of a national 
     renewable fuels program, under which the motor vehicle fuel 
     placed into commerce by a refiner, blender, or importer shall 
     be composed of renewable fuel measured according to a 
     statutory formula for specified calendar years; and
       (2) the Secretary of Agriculture should ensure that the 
     policies and programs of the Department of Agriculture 
     promote the production of fuels from renewable fuel sources.

     SEC. 907. SENSE OF CONGRESS CONCERNING THE BIOENERGY PROGRAM 
                   OF THE DEPARTMENT OF AGRICULTURE.

       It is the sense of Congress that--
       (1) ethanol and biofuel production capacity will be needed 
     to phase out the use of methyl tertiary butyl ether in 
     gasoline and the dependence of the United States on foreign 
     oil; and
       (2) the bioenergy program of the Department of Agriculture 
     under part 1424 of title 7, Code of Federal Regulations, 
     should be continued and expanded.

                         TITLE X--MISCELLANEOUS

        Subtitle A--Country of Origin and Quality Grade Labeling

     SEC. 1001. COUNTRY OF ORIGIN LABELING.

       The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
     seq.) is amended by adding at the end the following:

                ``Subtitle C--Country of Origin Labeling

     ``SEC. 271. DEFINITIONS.

       ``In this subtitle:
       ``(1) Beef.--The term `beef' means meat produced from 
     cattle (including veal).
       ``(2) Covered commodity.--
       ``(A) In general.--The term `covered commodity' means--
       ``(i) muscle cuts of beef, lamb, and pork;
       ``(ii) ground beef, ground lamb, and ground pork;
       ``(iii) farm-raised fish;
       ``(iv) a perishable agricultural commodity; and
       ``(v) peanuts.
       ``(B) Exclusions.--The term `covered commodity' does not 
     include--
       ``(i) processed beef, lamb, and pork food items; and
       ``(ii) frozen entrees containing beef, lamb, and pork.
       ``(3) Farm-raised fish.--The term `farm-raised fish' 
     includes--
       ``(A) farm-raised shellfish; and
       ``(B) fillets, steaks, nuggets, and any other flesh from a 
     farm-raised fish or shellfish.
       ``(4) Food service establishment.--The term `food service 
     establishment' means a restaurant, cafeteria, lunch room, 
     food stand, saloon, tavern, bar, lounge, or other

[[Page 26808]]

     similar facility operated as an enterprise engaged in the 
     business of selling food to the public.
       ``(5) Lamb.--The term `lamb' means meat, other than mutton, 
     produced from sheep.
       ``(6) Perishable agricultural commodity; retailer.--The 
     terms `perishable agricultural commodity' and `retailer' have 
     the meanings given the terms in section 1(b) of the 
     Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 
     499a(b)).
       ``(7) Pork.--The term `pork' means meat produced from hogs.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting through the Agricultural Marketing 
     Service.

     ``SEC. 272. NOTICE OF COUNTRY OF ORIGIN.

       ``(a) In General.--
       ``(1) Requirement.--Except as provided in subsection (b), a 
     retailer of a covered commodity shall inform consumers, at 
     the final point of sale of the covered commodity to 
     consumers, of the country of origin of the covered commodity.
       ``(2) United states country of origin.--A retailer of a 
     covered commodity may designate the covered commodity as 
     having a United States country of origin only if the covered 
     commodity--
       ``(A) in the case of beef, lamb, and pork, is exclusively 
     from an animal that is exclusively born, raised, and 
     slaughtered in the United States; and
       ``(B) in the case of farm-raised fish, is hatched, raised, 
     harvested, and processed in the United States; and
       ``(C) in the case of a perishable agricultural commodities 
     or peanut, is exclusively produced in the United States.
       ``(b) Exemption for Food Service Establishments.--
     Subsection (a) shall not apply to a covered commodity if the 
     covered commodity is--
       ``(1) prepared or served in a food service establishment; 
     and
       ``(2)(A) offered for sale or sold at the food service 
     establishment in normal retail quantities; or
       ``(B) served to consumers at the food service 
     establishment.
       ``(c) Method of Notification.--
       ``(1) In general.--The information required by subsection 
     (a) may be provided to consumers by means of a label, stamp, 
     mark, placard, or other clear and visible sign on the covered 
     commodity or on the package, display, holding unit, or bin 
     containing the commodity at the final point of sale to 
     consumers.
       ``(2) Labeled commodities.--If the covered commodity is 
     already individually labeled for retail sale regarding 
     country of origin, the retailer shall not be required to 
     provide any additional information to comply with this 
     section.
       ``(d) Audit Verification System.--The Secretary may require 
     that any person that prepares, stores, handles, or 
     distributes a covered commodity for retail sale maintain a 
     verifiable recordkeeping audit trail that will permit the 
     Secretary to ensure compliance with the regulations 
     promulgated under section 274.
       ``(e) Information.--Any person engaged in the business of 
     supplying a covered commodity to a retailer shall provide 
     information to the retailer indicating the country of origin 
     of the covered commodity.
       ``(f) Certification of Origin.--
       ``(1) Mandatory identification.--The Secretary shall not 
     use a mandatory identification system to verify the country 
     of origin of a covered commodity.
       ``(2) Existing certification programs.--To certify the 
     country of origin of a covered commodity, the Secretary may 
     use as a model certification programs in existence on the 
     date of enactment of this Act, including--
       ``(A) the carcass grading and certification system carried 
     out under this Act;
       ``(B) the voluntary country of origin beef labeling system 
     carried out under this Act;
       ``(C) voluntary programs established to certify certain 
     premium beef cuts;
       ``(D) the origin verification system established to carry 
     out the child and adult care food program established under 
     section 17 of the Richard B. Russell National School Lunch 
     Act (42 U.S.C. 1766); or
       ``(E) the origin verification system established to carry 
     out the market access program under section 203 of the 
     Agricultural Trade Act of 1978 (7 U.S.C. 5623).

     ``SEC. 273. ENFORCEMENT.

       ``(a) In General.--Except as provided in subsection (b), 
     section 253 shall apply to a violation of this subtitle.
       ``(b) Warnings.--If the Secretary determines that a 
     retailer is in violation of section 272, the Secretary 
     shall--
       ``(1) notify the retailer of the determination of the 
     Secretary; and
       ``(2) provide the retailer a 30-day period, beginning on 
     the date on which the retailer receives the notice under 
     paragraph (1) from the Secretary, during which the retailer 
     may take necessary steps to comply with section 272.
       ``(c) Fines.--If, on completion of the 30-day period 
     described in subsection (c)(2), the Secretary determines that 
     the retailer has willfully violated section 272, after 
     providing notice and an opportunity for a hearing before the 
     Secretary with respect to the violation, the Secretary may 
     fine the retailer in an amount determined by the Secretary.

     ``SEC. 274. REGULATIONS.

       ``(a) In General.--The Secretary may promulgate such 
     regulations as are necessary to carry out this subtitle.
       ``(b) Partnerships With States.--In promulgating the 
     regulations, the Secretary shall, to the maximum extent 
     practicable, enter into partnerships with States with 
     enforcement infrastructure to carry out this subtitle.

     ``SEC. 275. APPLICATION.

       ``This subtitle shall apply to the retail sale of a covered 
     commodity beginning on the date that is 180 days after the 
     date of the enactment of this subtitle.''.

     SEC. 1002. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT 
                   FOOD PRODUCTS.

       The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
     seq.) (as amended by section 1001) is amended by adding at 
     the end the following:

           ``Subtitle D--Commodity-Specific Grading Standards

     ``SEC. 281. DEFINITION OF SECRETARY.

       ``In this subtitle, the term `Secretary' means the 
     Secretary of Agriculture.

     ``SEC. 282. QUALITY GRADE LABELING OF IMPORTED MEAT AND MEAT 
                   FOOD PRODUCTS.

       ``An imported carcass, part thereof, meat, or meat food 
     product (as defined by the Secretary) shall not bear a label 
     that indicates a quality grade issued by the Secretary.

     ``SEC. 283. REGULATIONS.

       ``The Secretary shall promulgate such regulations as are 
     necessary to ensure compliance with, and otherwise carry out, 
     this subtitle.''.

                     Subtitle B--General Provisions

     SEC. 1011. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       (a) In General.--Title III of the Packers and Stockyards 
     Act, 1921, is amended by inserting after section 317 (7 
     U.S.C. 217a) the following:

     ``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       ``(a) Definitions.--In this section:
       ``(1) Humanely euthanized.--The term `humanely euthanized' 
     means to kill an animal by mechanical, chemical, or other 
     means that immediately render the animal unconscious, with 
     this state remaining until the animal's death.
       ``(2) Nonambulatory livestock.--The term `nonambulatory 
     livestock' means any livestock that is unable to stand and 
     walk unassisted.
       ``(b) Unlawful Practices.--
       ``(1) In general.--It shall be unlawful under section 312 
     for any stockyard owner, market agency, or dealer to buy, 
     sell, give, receive, transfer, market, hold, or drag any 
     nonambulatory livestock unless the nonambulatory livestock 
     has been humanely euthanized.
       ``(2) Exceptions.--
       ``(A) Non-gipsa farms.--Paragraph (1) shall not apply to 
     any farm the animal care practices of which are not subject 
     to the authority of the Grain Inspection, Packers, and 
     Stockyards Administration.
       ``(B) Veterinary care.--Paragraph (1) shall not apply in a 
     case in which nonambulatory livestock receive veterinary care 
     intended to render the livestock ambulatory.''.
       (b) Effective Date.--
       (1) In general.--The amendment made by subsection (a) takes 
     effect 1 year after the date of the enactment of this Act.
       (2) Regulations.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate regulations consistent with the amendment, 
     relating to the handling, treatment, and disposition of 
     nonambulatory livestock at livestock marketing facilities or 
     by dealers.

     SEC. 1012. COTTON CLASSIFICATION SERVICES.

       The first sentence of section 3a of the Act of March 3, 
     1927 (commonly known as the ``Cotton Statistics and Estimates 
     Act'') (7 U.S.C. 473), is amended by striking ``2002'' and 
     inserting ``2006''.

     SEC. 1013. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.

       Section 1324 of the Food Security Act of 1985 (7 U.S.C. 
     1631) is amended--
       (1) in subsection (c)(4)--
       (A) in subparagraph (B), by striking ``signed,'' and 
     inserting ``signed, authorized, or otherwise authenticated by 
     the debtor,'';
       (B) by striking subparagraph (C);
       (C) in subparagraph (D)--
       (i) in clause (iii), by adding ``and'' after the semicolon 
     at the end; and
       (ii) in clause (iv), by striking ``applicable;'' and all 
     that follows and inserting ``applicable, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and
       (D) by redesignating subparagraphs (D) through (I) as 
     subparagraphs (C) through (H), respectively;
       (2) in subsection (e)--
       (A) in paragraph (1)(A)--
       (i) in clause (ii)--

       (I) in subclause (III), by adding ``and'' after the 
     semicolon at the end; and
       (II) in subclause (IV), by striking ``crop year,'' and all 
     that follows and inserting

[[Page 26809]]

     ``crop year, and the name of each county or parish in which 
     the farm products are growing or located;''; and

       (iii) in clause (v), by inserting ``contains'' before ``any 
     payment''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A), by striking ``subparagraph'' and 
     inserting ``subsection''; and
       (ii) in subparagraph (B), by striking ``; and'' and 
     inserting a period; and
       (3) subsection (g)(2)(A)--
       (A) in clause (ii)--
       (i) in subclause (III), by adding ``and'' after the 
     semicolon at the end; and
       (ii) in subclause (IV), by striking ``crop year,'' and all 
     that follows and inserting ``crop year, and the name of each 
     county or parish in which the farm products are growing or 
     located;''; and
       (B) in clause (v), by inserting ``contains'' before ``any 
     payment''.

     SEC. 1014. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.

       (a) Penalties and Foreign Commerce Provisions of the Animal 
     Welfare Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 
     2156) is amended--
       (1) in subsection (e)--
       (A) by inserting ``Penalties.--'' after ``(e)'';
       (B) by striking ``$5,000'' and inserting ``$15,000''; and
       (C) by striking ``1 year'' and inserting ``2 years''; and
       (2) in subsection (g)(2)(B), by inserting at the end before 
     the semicolon the following: ``or from any State into any 
     foreign country''.
       (b) Effective Date.--The amendments made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.

     SEC. 1015. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED 
                   FARMERS AND RANCHERS.

       Section 2501 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 2279) is amended by striking 
     subsection (a) and inserting the following:
       ``(a) Outreach and Assistance.--
       ``(1) Definitions.--In this subsection:
       ``(A) Department.--The term `Department' means the 
     Department of Agriculture.
       ``(B) Eligible entity.--The term `eligible entity' means--
       ``(i) any community-based organization, network, or 
     coalition of community-based organizations that--

       ``(I) has demonstrated experience in providing agricultural 
     education or other agriculturally related services to 
     socially disadvantaged farmers and ranchers;
       ``(II) has provided to the Secretary documentary evidence 
     of work with socially disadvantaged farmers and ranchers 
     during the 2-year period preceding the submission of an 
     application for assistance under this subsection; and
       ``(III) has not engaged in activities prohibited under 
     section 501(c)(3) of the Internal Revenue Code of 1986;

       ``(ii)(I) an 1890 institution (as defined in section 2 of 
     the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7601)), including West Virginia State 
     College;
       ``(II) a 1994 institution (as defined in section 2 of that 
     Act);
       ``(III) an Indian tribal community college;
       ``(IV) an Alaska Native cooperative college;
       ``(V) a Hispanic-serving institution (as defined in section 
     1404 of the National Agricultural Research, Extension, and 
     Teaching Policy Act of 1977 (7 U.S.C. 3103)); and
       ``(VI) any other institution of higher education (as 
     defined in section 101 of the Higher Education Act of 1965 
     (20 U.S.C. 1001)) that has demonstrated experience in 
     providing agriculture education or other agriculturally 
     related services to socially disadvantaged farmers and 
     ranchers in a region; and
       ``(iii) an Indian tribe (as defined in section 4 of the 
     Indian Self-Determination and Education Assistance Act (25 
     U.S.C. 450b)) or a national tribal organization that has 
     demonstrated experience in providing agriculture education or 
     other agriculturally related services to socially 
     disadvantaged farmers and ranchers in a region.
       ``(C) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(2) Program.--The Secretary shall carry out an outreach 
     and technical assistance program to encourage and assist 
     socially disadvantaged farmers and ranchers--
       ``(A) in owning and operating farms and ranches; and
       ``(B) in participating equitably in the full range of 
     agricultural programs offered by the Department.
       ``(3) Requirements.--The outreach and technical assistance 
     program under paragraph (2) shall--
       ``(A) enhance coordination of the outreach, technical 
     assistance, and education efforts authorized under various 
     agriculture programs; and
       ``(B) include information on, and assistance with--
       ``(i) commodity, conservation, credit, rural, and business 
     development programs;
       ``(ii) application and bidding procedures;
       ``(iii) farm and risk management;
       ``(iv) marketing; and
       ``(v) other activities essential to participation in 
     agricultural and other programs of the Department.
       ``(4) Grants and contracts.--
       ``(A) In general.--The Secretary may make grants to, and 
     enter into contracts and other agreements with, an eligible 
     entity to provide information and technical assistance under 
     this subsection.
       ``(B) Relationship to other law.--The authority to carry 
     out this section shall be in addition to any other authority 
     provided in this or any other Act.
       ``(5) Funding.--
       ``(A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $25,000,000 
     for each of fiscal years 2002 through 2006.
       ``(B) Interagency funding.--In addition to funds authorized 
     to be appropriated under subparagraph (A), any agency of the 
     Department may participate in any grant, contract, or 
     agreement entered into under this section by contributing 
     funds, if the agency determined that the objectives of the 
     grant, contract, or agreement will further the authorized 
     programs of the contributing agency.''.

     SEC. 1016. PUBLIC DISCLOSURE REQUIREMENTS FOR COUNTY 
                   COMMITTEE ELECTIONS.

       Section 8(b)(5) of the Soil Conservation and Domestic 
     Allotment Act (16 U.S.C. 590h(b)(5)) is amended by striking 
     subparagraph (B) and inserting the following:
       ``(B) Establishment and elections for county, area, or 
     local committees.--
       ``(i) Establishment.--

       ``(I) In general.--In each county or area in which 
     activities are carried out under this section, the Secretary 
     shall establish a county or area committee.
       ``(II) Local administrative areas.--The Secretary may 
     designate local administrative areas within a county or a 
     larger area under the jurisdiction of a committee established 
     under subclause (I).

       ``(ii) Composition of county, area, or local committees.--A 
     committee established under clause (i) shall consist of not 
     fewer than 3 nor more than 5 members that--

       ``(I) are fairly representative of the agricultural 
     producers within the area covered by the county, area, or 
     local committee; and
       ``(II) are elected by the agricultural producers that 
     participate or cooperate in programs administered within the 
     area under the jurisdiction of the county, area, or local 
     committee.

       ``(iii) Elections.--

       ``(I) In general.--Subject to subclauses (II) through (V), 
     the Secretary shall establish procedures for nominations and 
     elections to county, area, or local committees.
       ``(II) Nondiscrimination statement.--Each solicitation of 
     nominations for, and notice of elections of, a county, area, 
     or local committee shall include the nondiscrimination 
     statement used by the Secretary.
       ``(III) Nominations.--

       ``(aa) Eligibility.--To be eligible for nomination and 
     election to the applicable county, area, or local committee, 
     as determined by the Secretary, an agricultural producer 
     shall be located within the area under the jurisdiction of a 
     county, area, or local committee, and participate or 
     cooperate in programs administered within that area.
       ``(bb) Outreach.--In addition to such nominating procedures 
     as the Secretary may prescribe, the Secretary shall solicit 
     and accept nominations from organizations representing the 
     interests of socially disadvantaged groups (as defined in 
     section 355(e)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2003(e)(1)).

       ``(IV) Opening of ballots.--

       ``(aa) Public notice.--At least 10 days before the date on 
     which ballots are to be opened and counted, a county, area, 
     or local committee shall announce the date, time, and place 
     at which election ballots will be opened and counted.
       ``(bb) Opening of ballots.--Election ballots shall not be 
     opened until the date and time announced under item (aa).
       ``(cc) Observation.--Any person may observe the opening and 
     counting of the election ballots.

       ``(V) Report of election.--Not later than 20 days after the 
     date on which an election is held, a county, area, or local 
     committee shall file an election report with the Secretary 
     and the State office of the Farm Service Agency that 
     includes--

       ``(aa) the number of eligible voters in the area covered by 
     the county, area, or local committee;
       ``(bb) the number of ballots cast in the election by 
     eligible voters (including the percentage of eligible voters 
     that cast ballots);
       ``(cc) the number of ballots disqualified in the election;
       ``(dd) the percentage that the number of ballots 
     disqualified is of the number of ballots received;
       ``(ee) the number of nominees for each seat up for 
     election;
       ``(ff) the race, ethnicity, and gender of each nominee, as 
     provided through the voluntary self-identification of each 
     nominee; and
       ``(gg) the final election results (including the number of 
     ballots received by each nominee).

       ``(VI) National report.--Not later than 90 days after the 
     date on which the first election of a county, area, or local 
     committee that occurs after the date of enactment of the 
     Agriculture, Conservation, and Rural Enhancement Act of 2001 
     is held, the Secretary

[[Page 26810]]

     shall complete a report that consolidates all the election 
     data reported to the Secretary under subclause (V).
       ``(VII) Election reform.--

       ``(aa) Analysis.--If determined necessary by the Secretary 
     after analyzing the data contained in the report under 
     subclause (VI), the Secretary shall promulgate and publish in 
     the Federal Register proposed uniform guidelines for 
     conducting elections for members and alternate members of 
     county, area, and local committees not later than 1 year 
     after the date of completion of the report.
       ``(bb) Inclusion.--The procedures promulgated by the 
     Secretary under item (aa) shall ensure fair representation of 
     socially disadvantaged groups described in subclause 
     (III)(bb) in an area covered by the county, area, or local 
     committee, in cases in which those groups are 
     underrepresented on the county, area, or local committee for 
     that area.
       ``(cc) Methods of inclusion.--Notwithstanding clause (ii), 
     the Secretary may ensure inclusion of socially disadvantaged 
     farmers and ranchers through provisions allowing for 
     appointment of additional voting members to a county, area, 
     or local committee or through other methods.
       ``(iv) Term of office.--The term of office for a member of 
     a county, area, or local committee shall not exceed 3 
     years.''.

     SEC. 1017. PSEUDORABIES ERADICATION PROGRAM.

       Section 2506(d) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (21 U.S.C. 114i(d)) is amended by striking 
     ``2002'' and inserting ``2006''.

     SEC. 1018. TREE ASSISTANCE PROGRAM.

       (a) In General.--Section 194 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (Public Law 104-127; 110 
     Stat. 945) is amended to read as follows:

     ``SEC. 194. TREE ASSISTANCE PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible orchardist.--The term `eligible orchardist' 
     means a person that produces annual crops from trees for 
     commercial purposes,
       ``(2) Natural disaster.--The term `natural disaster' means 
     plant disease, insect infestation, drought, fire, freeze, 
     flood, earthquake, and other natural occurrences, as 
     determined by the Secretary.
       ``(3) Tree.--The term `tree' includes trees, bushes, and 
     vines.
       ``(4) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(b) Eligibility.--
       ``(1) Loss.--Subject to paragraph (2), the Secretary shall 
     provide assistance in accordance with subsection (c) to 
     eligible orchardists that, as determined by the Secretary--
       ``(A) planted trees for commercial purposes; and
       ``(B) lost those trees as a result of a natural disaster.
       ``(2) Limitation.--An eligible orchardist shall qualify for 
     assistance under subsection (c) only if the tree mortality 
     rate of the orchardist, as a result of the natural disaster, 
     exceeds 15 percent (adjusted for normal mortality), as 
     determined by the Secretary.
       ``(c) Assistance.--
       ``(1) In general.--Assistance provided by the Secretary to 
     eligible orchardists for losses described in subsection (b) 
     shall consist of--
       ``(A) reimbursement of 75 percent of the cost of replanting 
     trees lost due to a natural disaster, as determined by the 
     Secretary, in excess of 15 percent mortality (adjusted for 
     normal mortality); or
       ``(B) at the discretion of the Secretary, sufficient tree 
     seedlings to reestablish the stand.
       ``(2) Limitation on Assistance.--
       ``(A) Limitation.--The total amount of payments that a 
     person may receive under this section shall not exceed--
       ``(i) $100,000; or
       ``(ii) an equivalent value in tree seedlings.
       ``(B) Regulations.--The Secretary shall promulgate 
     regulations that--
       ``(i) define the term `person' for the purposes of this 
     section (which definition shall conform, to the extent 
     practicable, to the regulations defining the term `person' 
     promulgated under section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308); and
       ``(ii) prescribe such rules as the Secretary determines are 
     necessary to ensure a fair and reasonable application of the 
     limitation established under this section.
       ``(d) Authorization of appropriations.--Notwithstanding 
     section 161, there is authorized to be appropriated such sums 
     as are necessary to carry out this section for each of fiscal 
     years 2002 through 2006.''.
       (b) Application Date.--The amendment made by subsection (a) 
     shall apply to tree losses that are incurred as a result of a 
     natural disaster after January 1, 2000.

     SEC. 1019. HUMANE METHODS OF ANIMAL SLAUGHTER.

       It is the sense of Congress that--
       (1) the Secretary of Agriculture should--
       (A) resume tracking the number of violations of Public Law 
     85-765 (7 U.S.C. 1901 et seq.) and report the results and 
     relevant trends annually to Congress; and
       (B) fully enforce Public Law 85-765 by ensuring that humane 
     methods in the slaughter of livestock--
       (i) prevent needless suffering;
       (ii) result in safer and better working conditions for 
     persons engaged in the slaughtering of livestock;
       (iii) bring about improvement of products and economies in 
     slaughtering operations; and
       (iv) produce other benefits for producers, processors, and 
     consumers that tend to expedite an orderly flow of livestock 
     and livestock products in interstate and foreign commerce; 
     and
       (2) it should be the policy of the United States that the 
     slaughtering of livestock and the handling of livestock in 
     connection with slaughter shall be carried out only by humane 
     methods.

                       Subtitle C--Administration

     SEC. 1031. REGULATIONS.

       (a) In General.--The Secretary of Agriculture may 
     promulgate such regulations as are necessary to implement 
     this Act and the amendments made by this Act.
       (b) Procedure.--The promulgation of the regulations and 
     administration of title I and sections 456 and 508 and the 
     amendments made by title I and sections 456 and 508 shall be 
     made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out subsection (b), the Secretary shall use the authority 
     provided under section 808 of title 5, United States Code.

     SEC. 1032. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this Act and notwithstanding any other provision of law, 
     this Act and the amendments made by this Act shall not affect 
     the authority of the Secretary of Agriculture to carry out an 
     agricultural market transition, price support, or production 
     adjustment program for any of the 1996 through 2001 crop, 
     fiscal, or calendar years under a provision of law in effect 
     immediately before the date of enactment of this Act.
       (b) Liability.--A provision of this Act or an amendment 
     made by this Act shall not affect the liability of any person 
     under any provision of law as in effect immediately before 
     the date of enactment of this Act.
                                  ____

  SA 2672. Mr. HOLLINGS submitted an amendment intended to be proposed 
by him to the bill H.R. 3210, to ensure the continued financial 
capacity of insurers to provide coverage for risks from terrorism, 
which was ordered to lie on the table; as follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``National 
     Terrorism Reinsurance Loan and Grant Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Loan and grant programs.
Sec. 102. Credit for reinsurance.
Sec. 103. Mandatory coverage by property and casualty insurers for acts 
              of terrorism.
Sec. 104. Monitoring and enforcement.
Sec. 105. Administrative provisions.
Sec. 106. Termination of programs.
Sec. 107. Definitions.

                         TITLE II--LOAN PROGRAM

Sec. 201. National terrorism reinsurance loan program.
Sec. 202. Repayment of loans.
Sec. 203. Reports by insurers.
Sec. 204. Rates; rate-making methodology and data.

                        TITLE III--GRANT PROGRAM

Sec. 301. National terrorism insurance loss grant program.
Sec. 302. Coverage provided.
Sec. 303. Authorization of appropriations.

                          TITLE IV--Litigation

Sec. 401. Consolidation and venue.
Sec. 402. Punitive damages.
                      TITLE I--GENERAL PROVISIONS

     SEC. 101. LOAN AND GRANT PROGRAMS

       (a) In General.--If the Secretary determines that there are 
     loses from terrorism on covered lines in calendar year 2002 
     then the Secretary shall--
       (1) make loans to insurers under title II, to the extent 
     that the aggregate amount of such losses does not exceed 
     $10,000,000,000; and
       (2) make grants under title III, to the extent that the 
     aggregate amount of such losses exceeds $10,000,000,000.
       (b) Determination.
       (1) Initial determination.--The Secretary shall make an 
     initial determination as to whether the losses were caused by 
     an act of terrorism.
       (2) Notice and hearing.--The Secretary shall give public 
     notice of the initial determination and afford all interested 
     parties an

[[Page 26811]]

     opportunity to be heard on the question of whether the losses 
     were caused by an act of terrorism.
       (3) Final Determination.--Within 30 days after the 
     Secretary's initial determination, the Secretary shall make a 
     final determination as to whether the losses were caused by 
     an act of terrorism.
       (4) Standard of review.--The Secretary's determination 
     shall be upheld upon judicial review if based upon 
     substantial evidence.

     SEC. 102. CREDIT FOR REINSURANCE.

       Each State shall afford an insurer credit on the same basis 
     and to the same extent that credit for reinsuracne would be 
     available to that insurer under applicable State law when 
     reinsurance is obtained from an assuming insurer licensed or 
     accredited in that State that is economically equivalent to 
     that insurer's eligibility for loans under title II and 
     grants under title III.

     SEC. 103. MANDATORY COVERAGE BY PROPERTY AND CASUALTY 
                   INSURERS FOR ACTS OF TERRORISM.

       (a) In General.--An insurer that provides lines of coverage 
     described in section 107(1)(A) or (B) may not--
       (1) exclude or limit coverage in those lines for losses 
     from acts of terrorism in the United States, its territories, 
     and possessions in property and casualty insurance policy 
     forms; or
       (2) deny or cancel coverage solely due to the risk of 
     losses from acts of terrorism in the United States.
       (b) Terms and Conditions.--Insurance against losses from 
     acts of terrorism in the United States shall be covered with 
     the same deductibles, limits, terms, and conditions as the 
     standard provisions of the policy for noncatastrophic perils.

     SEC. 104. MONITORING AND ENFORCEMENT.

       (a) FTC Analysis and Enforcements.--The Federal Trade 
     Commission shall review reports submitted by insurers under 
     title II or III treating any proprietary data, privileged 
     data, or trade or business secret information contained in 
     the reports as privileged and confidential, for the purpose 
     of determining whether any insurer is engaged in unfair 
     methods of competition of unfair or deceptive acts or 
     practices in or affecting commerce (within the meaning of 
     section 5 of the Federal Trade Commission Act (15 U.S.C. 
     45)).
       (b) GAO Review of Reports and State Regulators.--The 
     Comptroller General shall--
       (1) provide for review and analysis of the reports 
     submitted under title II and III;
       (2) review the efforts of State insurance regulatory 
     authorities to keep premium rates for insurance against 
     losses from acts of terrorism on covered lines reasonable;
       (3) if the Secretary makes any loans under this title, 
     provide for the audit of loan claims filed by insurers as 
     requested by the Secretary; and
       (4) on a timely basis, make any recommendations the 
     Comptroller General may deem appropriate to the Congress for 
     improvements in the programs established by this title before 
     its termination.
       (c) Application of Certain Laws.--Notwithstanding any 
     limitation in the McCarran-Ferguson Act (15 U.S.C. 1011 et 
     seq.) or section 6 of the Federal Trade Commission Act (15 
     U.S.C. 46), the Federal Trade Commission Act (15 U.S.C. 41 et 
     seq.) shall apply to insurers receiving a loan or grant under 
     this Act. In determining whether any such insurer has been, 
     or is, using any unfair method of competition, or unfair or 
     deceptive act or practice, in violation of section 5 of that 
     Act (15 U.S.C. 45), the Federal Trade Commission shall 
     consider relevant information provided in reports submitted 
     under this Act.

     SEC. 105. ADMINISTRATIVE PROVISIONS.

       In carrying out this Act, the Secretary may--
       (1) issue such rules and regulations as may be necessary to 
     administer this Act;
       (2) make loans and grants and carry out the activities 
     necessary to implement this Act;
       (3) take appropriate action to collect premiums or 
     assessments under this Act; and
       (4) audit the reports, claims, books, and records of 
     insurers to which the Secretary has made loans or grants 
     under this Act.

     SEC. 106. TERMINATION OF PROGRAMS.

       (a) Loan Program.--
       (1) In general.--The authority of the Secretary to make 
     loans under title II terminates on December 31, 2002, except 
     to the extent necessary--
       (A) to provide loans for losses from acts of terrorism 
     occurring during calendar year 2002; and
       (B) to recover the amount of any loans made under this 
     title.
       (2) Assessment and collection of loan repayments.--The 
     Secretary shall continue assessment and collection operations 
     under title II as long as loans from the Secretary under that 
     title are outstanding.
       (3) Reporting and enforcement.--The provisions of sections 
     202, 203, and 204 shall terminate when the authority of the 
     Secretary to make loans under this title terminates.
       (b) Grant Program.--The authority of the Secretary to make 
     grants under title III terminates on December 31, 2002.

     SEC. 107. DEFINITIONS.

       (1) Covered line.--
       (A) In general.--The term ``covered line'' means any one or 
     a combination of the following, written on a direct basis, as 
     reported by property and casualty insurers in required 
     financial reports on Statutory Page 14 of the NAIC Annual 
     Statement Blank:
       (i) Fire.
       (ii) Allied lines.
       (iii) Commercial multiple peril.
       (iv) Ocean marine.
       (v) Inland marine.
       (vi) Workers compensation.
       (vii) Products liability.
       (viii) Commercial auto no-fault (personal injury 
     protection), other commercial auto liability, or commercial 
     auto physical damage.
       (ix) Aircraft (all peril).
       (x) Fidelity and surety.
       (xi) Burglary and theft.
       (xii) Boiler and machinery.
       (xiii) Any other line of insurance that is reported by 
     property and casualty insurers in required financial reports 
     on Statutory Page 14 of the NAIC Annual Statement Blank which 
     is voluntarily elected by an insurer to be included in its 
     terrorism coverage.
       (B) Other lines.--For purpose of clause (xiii), the lines 
     of business that may be voluntarily selected for the 
     following:
       (i) Farmowners multiple peril.
       (ii) Homeowners multiple peril.
       (iii) Mortgage guaranty.
       (iv) Financial guaranty.
       (v) Private passenger automobile insurance.
       (C) Election.--The election to voluntarily include another 
     line of insurance, if made, must apply to all affiliated 
     insurers that are members of an insurer group. Any voluntary 
     election is on a one-time basis and is irrevocable.
       (2) Insurer.
       (A) In general.--The term ``insurer'' means an entity 
     writing covered lines on a direct basis and licensed as a 
     property and casualty insurer, risk retention group, or other 
     entity authorized by law as a residual market mechanism 
     providing property or casualty coverage in at least one 
     jurisdiction of the United States, its territories, or 
     possessions and includes residual market insurers.
       (B) Voluntary participation.--A State workers' 
     compensation, auto, or property insurance fund may 
     voluntarily participate as an insurer.
       (C) Group life insurers.--The Secretary shall provide, by 
     rule, for--
       (''i) the term ``insurer'' to include entities writing 
     group life insurance on a direct basis and licensed as group 
     life insurers; and.
       (ii) the term ``covered line'' to include group life 
     insurance written on a direct basis, as reported by group 
     life insurers in required financial reports on the 
     appropriate NAIC Annual Statement Blank.
       (3) Losses.--The term ``losses'' means direct incurred 
     losses from an act of terrorism for covered lines, plus 
     defense and cost containment expenses.
       (4) NAIC.--The term ``NAIC'' means the National Association 
     of Insurance Commissioners.
       (5) Secretary.--Except where otherwise specifically 
     provided, the term ``Secretary'' means the Secretary of 
     Commerce.
       (6) Terrorism; act of terrorism.
       (A) In general.--The terms ``terrorism'' and ``act of 
     terrorism'' mean any act, certified by the Secretary in 
     concurrence with the Secretary of State and the Attorney 
     General, as a violent act or act dangerous to human life, 
     property or infrastructure, within the United States, its 
     territories and possessions, that is committed by an 
     individual or individuals acting on behalf of foreign agents 
     or foreign interests (other than a foreign government) as 
     part of an effort to coerce or intimidate the civilian 
     population of the United States or to influence the policy or 
     affect the conduct of the United States government.
       (B) Acts of war.--No act shall be certified as an act of 
     terrorism if the act is committed in the course of a war 
     declared by the Congress of the United States or by a foreign 
     government.
       (C) Finality of certification.--Any certification, or 
     determination not to certify, by the Secretary under 
     subparagraph (A) is final and not subject to judicial review.
                         TITLE II--LOAN PROGRAM

     SEC. 201. NATIONAL TERRORISM REINSURANCE LOAN PROGRAM.

       (a) In General.--The Secretary of Commerce shall establish 
     and administer a program to provide loans to insurers for 
     claims for losses due to acts of terrorism.
       (b) 80 Percent Coverage.--If the Secretary makes the 
     determination described in section 101(a), then the Secretary 
     shall provide a loan to any insurer for losses on covered 
     lines from acts of terrorism occurring in calendar 2002 equal 
     to 80 percent of the aggregate amount of claims on covered 
     lines.
       (c) $800 Million Loan Limit.--Notwithstanding any other 
     provision of this title, the total amount of loans 
     outstanding at any time to insurers from the Secretary under 
     this title may not exceed $800,000,000.
       (d) 7.5 Percent Retention Must Be Paid Before Loan 
     Received.--The Secretary may not make a loan under subsection 
     (b) to an insurer until that insurer has paid claims on 
     covered lines for losses from acts of terrorism occurring in 
     calendar year 2002 equal

[[Page 26812]]

     to at least 7.5 percent of that insurer's aggregate liability 
     for such losses.
       (e) Term and Interest Rate.--The Secretary, after 
     consultation with the Secretary of the Treasury and after 
     taking into account market rates of interest, credit ratings 
     of the borrowers, risk factors, and the purpose of this 
     title, shall establish the term, repayment schedule, and the 
     rate of interest for any loan made under subsection (a).

     SEC. 202. REPAYMENT OF LOANS.

       If the Secretary makes loans to insurers under section 201, 
     the Secretary shall assess all insurers an annual assessment 
     of not more than 3 percent of the direct written premium for 
     covered lines. The annual assessment may be recovered by an 
     insurer from its covered lines policyholders as a direct 
     surcharge calculated as a uniform percentage of premium.

     SEC. 203. REPORTS BY INSURERS.

       (a) Coverage and Capacity.
       (1) Reporting terrorism coverage.--An insurer shall--
       (A) report the amount of its terrorism insurance coverage 
     to the insurance regulatory authority for each State in which 
     it does business; and
       (B) obtain a certification from the State that it is not 
     providing terrorism insurance coverage in excess of its 
     capacity under State solvency requirements.'
       (2) Reports to secretary.--The State regulator shall 
     furnish a copy of the certification received under paragraph 
     (1) to the Secretary.
       (b) Additional Reports.--Insurers receiving loans under 
     this title shall submit reports on a quarterly or other basis 
     (as required by the Secretary) to the Secretary, the Federal 
     Trade Commission, and the General Accounting Office setting 
     forth rates, premiums risk analysis, coverage, reserves, 
     claims made for loans from the Secretary, and such additional 
     additional financial and actuarial information as the 
     Secretary may require regarding lines of coverage described 
     in section 107(1)(A) or (B). The information in these reports 
     shall be treated as confidential by the recipient.

     SEC. 204. RATES; RATE-MAKING METHODOLOGY AND DATA.

       (a) Premium Must Be Separately Stated.--Each insurer 
     offering insurance against losses from acts of terrorism in 
     the United States on covered lines during calendar year 2002 
     shall state the premium for that insurance separately in any 
     invoice, proposal, or other written communication to 
     policyholders and prospective policyholders.
       (b) Rate-making Methods and Data Must Be Publicly 
     Disclosed.
       (1) 45-day notice.--Not less than 45 days before the date 
     on which an insurer establishes or increases the premium rate 
     for any covered line of insurance described in section 107(1) 
     based, in whole or in part, on risk associated with insurance 
     against losses due to acts of terrorism during calendar year 
     2002, the insurer shall file a report with the State 
     insurance regulatory authority for the State in which the 
     premium is effective that--
       (A) sets forth the methodology and data used to determine 
     the premium; and
       (B) identifies the portion of the premium properly 
     attributable to risk associated with insurance offered by 
     that insurer against losses due to acts of terrorism; and
       (C) demonstrates, by substantial evidence, why that premium 
     is actuarially justified.
       (2) Copy to federal trade commission and general accounting 
     office.--Each insurer filing a report under paragraph (1) 
     shall file a duplicate of the report with the Federal Trade 
     Commission and the General Accounting Office at the same time 
     as it is submitted to the State regulatory authority.
       (3) Reports by state regulators.--Within 15 days after a 
     State insurance regulatory authority receives a report from 
     an insurer required by paragraph (1), the authority--
       (A) shall submit a report to the Secretary of Commerce, the 
     Federal Trade Commission, and the General Accounting Office;
       (B) shall include in that report a determination with 
     respect to whether an insurer has met the requirement of 
     paragraph (1)(C);
       (C) shall certify that--
       (i) the methodology and data used by the insurer to 
     determine the premium or increase are reasonable and 
     adequate; and
       (ii) the premium or increase is not excessive;
       (D) shall disclose the methodology used by the authority to 
     analyze the report and the methodology on which the authority 
     based its certification; and
       (E) may include with the report any commentary or analysis 
     it deems appropriate.
       (c) Baseline Data Reports.--Each insurer required to file a 
     report under subsection (b) that provided insurance on 
     covered lines against risk of loss from acts of terrorism in 
     the United States on September 11, 2001, shall file a report 
     with a report with the State insurance regulatory authority 
     for the State in which that insurance was provided, the 
     Federal Trade Commission, and the General Accounting Office 
     that sets forth the methodology and data used to determine 
     the premium for, or portion of the premium properly 
     attributable to, insurance against risk of loss due to acts 
     of terrorism in the United States under its insurance 
     policies in effect on the date.
       (d) Special Rule for Initial Period.--
       (1) Separate statement of premium.--An insurer offering 
     insurance against losses from acts of terrorism in the United 
     States on covered lines after the date of enactment of this 
     Act and before March 15, 2002, shall notify each policyholder 
     in writing as soon as possible, but no later than March 1, 
     2002, of the premium, or portion of the premium, attributable 
     to that insurance, stated separately from any premium or 
     increase in premium attributable to insurance against losses 
     from other risks. Each such insurer shall file a copy of each 
     such policyholder notice with the State insurance regulatory 
     authority for the State in which the premium is effective.
       (2) Justification of premium; baseline data.--As soon as 
     possible after the date of enactment of this Act, but no 
     later than March 1, 2002, each such insurer shall comply 
     with--
       (A) the requirements of subsection (b)(1) and (2), with 
     respect to the premium or portion of the premium attributable 
     to such insurance; and
       (B) the requirements of subsection (c).
                        TITLE III--GRANT PROGRAM

     SEC. 301. NATIONAL TERRORISM INSURANCE LOSS GRANT PROGRAM.

       If the Secretary determines under section 101(a) that 
     losses from terrorism on covered lines in calendar year 2002 
     exceed $10,000,000,000 in the aggregate, then the Secretary 
     shall establish and administer a program under this title to 
     provide grants to insurers for losses to the extent that the 
     aggregate amount of such losses exceeds $10,000,000,000.

     SEC. 302. GRANT AMOUNTS.

       (a) In General.--The Secretary shall make grants to 
     insurers for 90 percent of losses in excess, in the 
     aggregate, of $10,000,000,000 in calendar year 2002.
       (b) $50,000,000,000 Limit.--Except as provided in 
     subsection (c), the Secretary may not make grants in excess 
     of a total amount for all insurers of $50,000,000,000.
       (c) Reports to State Regulator; Certification.
       (1) Reporting terrorism coverage.--An insurer shall--
       (A) report the amount of its terrorism insurance coverage 
     to the insurance regulatory authority for each State in which 
     it does business; and
       (B) obtain a certification from the State that it is not 
     providing terrorism insurance coverage in excess of its 
     capacity under State solvency requirements.
       (2) Reports to secretary.--The State regulator shall 
     furnish a copy of the certification received under paragraph 
     (1) to Secretary.

     SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary 
     such sums as may be necessary to carry out this title.
                          TITLE IV--LITIGATION

     SEC. 401. FEDERAL CAUSE OF ACTION; CONSOLIDATION.

       (a) In General.--If the Secretary of Commerce makes the 
     determination required by section 101(a), the exclusive 
     remedy for any claim against an insurer in connection with a 
     loss under a covered line (as defined in section 107(1) of 
     this Act) from acts of terrorism shall be an action brought 
     in a District Court of the United States designated under 
     subsection (c).
       (b) Substantive Law.--The substantive law for decision in 
     any such action shall be derived from the law, including 
     choice of law principles, of the State in which such act of 
     terrorism occurred, unless such law is inconsistent with or 
     preempted by Federal law.
       (c) Jurisdiction.--The Judicial Panel on Multidistrict 
     Litigation shall designate one or more district courts of the 
     United States which shall have original and exclusive 
     jurisdiction over all actions brought pursuant to subsection 
     (a).

     SEC. 402. PUNITIVE DAMAGES.

       (a) In General.--No punitive damages may be awarded in an 
     action described in section 401(a).
       (b) Exception.--The preceding sentence does not apply to a 
     defendant who committed the act of terrorism or knowingly 
     conspired to commit that act.
                                  ____

  SA 2673. Mr. SMITH of New Hampshire (for himself and Mr. Crapo) 
submitted an amendment intended to be proposed by him to the bill S. 
990 to amend the Pittman-Robertson Wildlife Restoration Act to improve 
the provisions relating to wildlife conservation and restoration 
programs, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 74, line 11, insert ``(other than an incidental 
     taking statement with respect to a species recovery agreement 
     entered into by the Secretary under subsection (c))'' before 
     the semicolon.
                                  ____

  SA 2674. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide

[[Page 26813]]

for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.   . PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR 
                   ANIMAL FIGHTING.

       (a) Removal of Limitation.--Section 26 of the Animal 
     Welfare Act (7 U.S.C. 2156) is amended by striking subsection 
     (d) and inserting the following:
       ``(d) Activities Not Subject to Prohibition.--This section 
     does not apply to the selling, buying, transporting, or 
     delivery of animals in interstate or foreign commerce for any 
     purpose or purposes, so long as those purposes do not include 
     that of an animal fighting venture.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on the date that is 30 days after the date of 
     enactment of this Act.
                                  ____

  SA 2675. Mr. ALLARD submitted an amendment intended to be proposed by 
him to the bill S. 1731, to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC.  . PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.

       (a) In General.--Section 26 of the Animal Welfare Act (7 
     U.S.C. 2156) is amended--
       (1) in subsection (e)--
       (A) by inserting ``Penalties.--'' after ``(e)'';
       (B) by striking ``$5,000'' and inserting ``$15,000''; and
       (C) by striking ``1 year'' and inserting ``2 years''; and
       (2) in subsection (g)(2)(B), by inserting before the 
     semicoln at the end the following: ``or from any State into 
     any foreign country''.
       (b) Effective Date.--The amendments made by this section 
     take effect 30 days after the date of enactment of this Act.
                                  ____

  SA 2676. Mr. HUTCHINSON (for himself, Mr. Lott, Mr. Sessions, and Mr. 
Helms) submitted an amendment intended to be proposed to amendment SA 
2471 submitted by Mr. Daschle and intended to be proposed to the bill 
(S. 1731) to strengthen the safety net for agricultural producers, to 
enhance resource conservation and rural development, to provide for 
farm credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; which 
was ordered to lie on the table; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Farm 
     Security Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                      TITLE I--COMMODITY PROGRAMS

Sec. 100. Definitions.

   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments

Sec. 101. Payments to eligible producers.
Sec. 102. Establishment of payment yield.
Sec. 103. Establishment of base acres and payment acres for a farm.
Sec. 104. Availability of fixed, decoupled payments.
Sec. 105. Availability of counter-cyclical payments.
Sec. 106. Producer agreement required as condition on provision of 
              fixed, decoupled payments and counter-cyclical payments.
Sec. 107. Planting flexibility.
Sec. 108. Relation to remaining payment authority under production 
              flexibility contracts.
Sec. 109. Payment limitations.
Sec. 110. Farm counter-cyclical savings accounts.
Sec. 111. Period of effectiveness.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 121. Availability of nonrecourse marketing assistance loans for 
              covered commodities.
Sec. 122. Loan rates for nonrecourse marketing assistance loans.
Sec. 123. Term of loans.
Sec. 124. Repayment of loans.
Sec. 125. Loan deficiency payments.
Sec. 126. Payments in lieu of loan deficiency payments for grazed 
              acreage.
Sec. 127. Special marketing loan provisions for upland cotton.
Sec. 128. Special competitive provisions for extra long staple cotton.
Sec. 129. Availability of recourse loans for high moisture feed grains 
              and seed cotton and other fibers.
Sec. 130. Availability of nonrecourse marketing assistance loans for 
              wool and mohair.
Sec. 131. Availability of nonrecourse marketing assistance loans for 
              honey.
Sec. 132. Producer retention of erroneously paid loan deficiency 
              payments and marketing loan gains.
Sec. 133. Reserve stock adjustment.

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Repeal of recourse loan program for processors.
Sec. 143. Extension of dairy export incentive and dairy indemnity 
              programs.
Sec. 144. Fluid milk promotion.
Sec. 145. Dairy product mandatory reporting.
Sec. 146. Study of national dairy policy.

                            Chapter 2--Sugar

Sec. 151. Sugar program.
Sec. 152. Reauthorize provisions of Agricultural Adjustment Act of 1938 
              regarding sugar.
Sec. 153. Storage facility loans.

                           Chapter 3--Peanuts

Sec. 161. Definitions.
Sec. 162. Establishment of payment yield, peanut acres, and payment 
              acres for a farm.
Sec. 163. Availability of fixed, decoupled payments for peanuts.
Sec. 164. Availability of counter-cyclical payments for peanuts.
Sec. 165. Producer agreement required as condition on provision of 
              fixed, decoupled payments and counter-cyclical payments.
Sec. 166. Planting flexibility.
Sec. 167. Marketing assistance loans and loan deficiency payments for 
              peanuts.
Sec. 168. Quality improvement.
Sec. 169. Payment limitations.
Sec. 170. Termination of marketing quota programs for peanuts and 
              compensation to peanut quota holders for loss of quota 
              asset value.

                       Subtitle D--Administration

Sec. 181. Administration generally.
Sec. 182. Extension of suspension of permanent price support authority.
Sec. 183. Limitations.
Sec. 184. Adjustments of loans.
Sec. 185. Personal liability of producers for deficiencies.
Sec. 186. Extension of existing administrative authority regarding 
              loans.
Sec. 187. Assignment of payments.
Sec. 188. Report on effect of certain farm program payments on economic 
              viability of producers and farming infrastructure.

                         TITLE II--CONSERVATION

     Subtitle A--Environmental Conservation Acreage Reserve Program

Sec. 201. General provisions.

                Subtitle B--Conservation Reserve Program

Sec. 211. Reauthorization.
Sec. 212. Enrollment.
Sec. 213. Duties of owners and operators.
Sec. 214. Reference to conservation reserve payments.
Sec. 215. Expansion of pilot program to all States.

                  Subtitle C--Wetlands Reserve Program

Sec. 221. Enrollment.
Sec. 222. Easements and agreements.
Sec. 223. Duties of the Secretary.
Sec. 224. Changes in ownership; agreement modification; termination.

          Subtitle D--Environmental Quality Incentives Program

Sec. 231. Purposes.
Sec. 232. Definitions.
Sec. 233. Establishment and administration.
Sec. 234. Evaluation of offers and payments.
Sec. 235. Environmental Quality Incentives Program plan.
Sec. 236. Duties of the Secretary.
Sec. 237. Limitation on payments.
Sec. 238. Ground and surface water conservation.

                 Subtitle E--Funding and Administration

Sec. 241. Reauthorization.
Sec. 242. Funding.
Sec. 243. Allocation for livestock production.
Sec. 244. Administration and technical assistance.

                       Subtitle F--Other Programs

Sec. 251. Private grazing land and conservation assistance.
Sec. 252. Wildlife Habitat Incentives Program.
Sec. 253. Farmland Protection Program.
Sec. 254. Resource Conservation and Development Program.
Sec. 255. Grassland Reserve Program.
Sec. 256. Farmland Stewardship Program.
Sec. 257. Small Watershed Rehabilitation Program.
Sec. 258. Provision of assistance for Repaupo Creek Tide Gate and Dike 
              Restoration Project, New Jersey.

[[Page 26814]]

Sec. 259. Grassroots source water protection program.

                          Subtitle G--Repeals

Sec. 261. Provisions of the Food Security Act of 1985.
Sec. 262. National Natural Resources Conservation Foundation Act.

                            TITLE III--TRADE

Sec. 301. Market Access Program.
Sec. 302. Food for Progress.
Sec. 303. Surplus commodities for developing or friendly countries.
Sec. 304. Export Enhancement Program.
Sec. 305. Foreign Market Development Cooperator Program.
Sec. 306. Export Credit Guarantee Program.
Sec. 307. Food for Peace (Public Law 480).
Sec. 308. Emerging markets.
Sec. 309. Bill Emerson Humanitarian Trust.
Sec. 310. Technical assistance for specialty crops.
Sec. 311. Farmers to Africa and the Caribbean Basin.
Sec. 312. George McGovern-Robert Dole International Food for Education 
              and Child Nutrition Program.
Sec. 313. Study on fee for services.
Sec. 314. National export strategy report.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

Sec. 401. Simplified definition of income.
Sec. 402. Standard deduction.
Sec. 403. Transitional food stamps for families moving from welfare.
Sec. 404. Quality control systems.
Sec. 405. Simplified application and eligibility determination systems.
Sec. 406. Authorization of appropriations.

                   Subtitle B--Commodity Distribution

Sec. 441. Distribution of surplus commodities to special nutrition 
              projects.
Sec. 442. Commodity supplemental food program.
Sec. 443. Emergency food assistance.

                  Subtitle C--Miscellaneous Provisions

Sec. 461. Hunger fellowship program.
Sec. 462. General effective date.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

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

                      Subtitle B--Operating Loans

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

                 Subtitle C--Administrative Provisions

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

                        Subtitle D--Farm Credit

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

                     Subtitle E--General Provisions

Sec. 551. Inapplicability of finality rule.
Sec. 552. Technical amendments.
Sec. 553. Effect of amendments.
Sec. 554. Effective date.

                      TITLE VI--RURAL DEVELOPMENT

Sec. 601. Funding for rural local television broadcast signal loan 
              guarantees.
Sec. 602. Expanded eligibility for value-added agricultural product 
              market development grants.
Sec. 603. Agriculture innovation center demonstration program.
Sec. 604. Funding of community water assistance grant program.
Sec. 605. Loan guarantees for the financing of the purchase of 
              renewable energy systems.
Sec. 606. Loans and loan guarantees for renewable energy systems.
Sec. 607. Rural business opportunity grants.
Sec. 608. Grants for water systems for rural and native villages in 
              Alaska.
Sec. 609. Rural cooperative development grants.
Sec. 610. National reserve account of Rural Development Trust Fund.
Sec. 611. Rural venture capital demonstration program.
Sec. 612. Increase in limit on certain loans for rural development.
Sec. 613. Pilot program for development and implementation of strategic 
              regional development plans.
Sec. 614. Grants to nonprofit organizations to finance the 
              construction, refurbishing, and servicing of 
              individually-owned household water well systems in rural 
              areas for individuals with low or moderate incomes.
Sec. 615. National Rural Development Partnership.
Sec. 616. Eligibility of rural empowerment zones, rural enterprise 
              communities, and champion communities for direct and 
              guaranteed loans for essential community facilities.
Sec. 617. Grants to train farm workers in new technologies and to train 
              farm workers in specialized skills necessary for higher 
              value crops.
Sec. 618. Loan guarantees for the purchase of stock in a farmer 
              cooperative seeking to modernize or expand.
Sec. 619. Intangible assets and subordinated unsecured debt required to 
              be considered in determining eligibility of farmer-owned 
              cooperative for business and industry guaranteed loan.
Sec. 620. Ban on limiting eligibility of farmer cooperative for 
              business and industry loan guarantee based on population 
              of area in which cooperative is located; refinancing.
Sec. 621. Rural water and waste facility grants.
Sec. 622. Rural water circuit rider program.
Sec. 623. Rural water grassroots source water protection program.
Sec. 624. Delta regional authority.
Sec. 625. Predevelopment and small capitalization loan fund.
Sec. 626. Rural economic development loan and grant program.

                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

Sec. 700. Market expansion research.
Sec. 701. National Rural Information Center Clearinghouse.
Sec. 702. Grants and fellowships for food and agricultural sciences 
              education.
Sec. 703. Policy research centers.
Sec. 704. Human nutrition intervention and health promotion research 
              program.
Sec. 705. Pilot research program to combine medical and agricultural 
              research.
Sec. 706. Nutrition education program.
Sec. 707. Continuing animal health and disease research programs.
Sec. 708. Appropriations for research on national or regional problems.
Sec. 709. Grants to upgrade agricultural and food sciences facilities 
              at 1890 land-grant colleges, including Tuskegee 
              University.
Sec. 710. National research and training centennial centers at 1890 
              land-grant institutions.
Sec. 711. Hispanic-serving institutions.
Sec. 712. Competitive grants for international agricultural science and 
              education programs.
Sec. 713. University research.
Sec. 714. Extension service.
Sec. 715. Supplemental and alternative crops.
Sec. 716. Aquaculture research facilities.
Sec. 717. Rangeland research.
Sec. 718. National genetics resources program.
Sec. 719. High-priority research and extension initiatives.
Sec. 720. Nutrient management research and extension initiative.
Sec. 721. Agricultural telecommunications program.
Sec. 722. Alternative agricultural research and commercialization 
              revolving fund.
Sec. 723. Assistive technology program for farmers with disabilities.
Sec. 724. Partnerships for high-value agricultural product quality 
              research.
Sec. 725. Biobased products.
Sec. 726. Integrated research, education, and extension competitive 
              grants program.
Sec. 727. Institutional capacity building grants.
Sec. 728. 1994 Institution research grants.
Sec. 729. Endowment for 1994 Institutions.
Sec. 730. Precision agriculture.

[[Page 26815]]

Sec. 731. Thomas Jefferson initiative for crop diversification.
Sec. 732. Support for research regarding diseases of wheat, triticale, 
              and barley caused by Fusarium Graminearum or by Tilletia 
              Indica.
Sec. 733. Office of Pest Management Policy.
Sec. 734. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.
Sec. 735. Grants for research on production and marketing of alcohols 
              and industrial hydrocarbons from agricultural commodities 
              and forest products.
Sec. 736. Biomass research and development.
Sec. 737. Agricultural experiment stations research facilities.
Sec. 738. Competitive, special, and facilities research grants national 
              research initiative.
Sec. 739. Federal agricultural research facilities authorization of 
              appropriations.
Sec. 740. Cotton classification services.
Sec. 740A. Critical agricultural materials research.
Sec. 740B. Private nonindustrial hardwood research program.

                       Subtitle B--Modifications

Sec. 741. Equity in Educational Land-Grant Status Act of 1994.
Sec. 742. National Agricultural Research, Extension, and Teaching 
              Policy Act of 1977.
Sec. 743. Agricultural Research, Extension, and Education Reform Act of 
              1998.
Sec. 744. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 745. National Agricultural Research, Extension, and Teaching 
              Policy Act of 1977.
Sec. 746. Biomass research and development.
Sec. 747. Biotechnology risk assessment research.
Sec. 748. Competitive, special, and facilities research grants.
Sec. 749. Matching funds requirement for research and extension 
              activities of 1890 institutions.
Sec. 749A. Matching funds requirement for research and extension 
              activities for the United States territories.
Sec. 750. Initiative for future agriculture and food systems.
Sec. 751. Carbon cycle research.
Sec. 752. Definition of food and agricultural sciences.
Sec. 753. Federal extension service.
Sec. 754. Policy research centers.
Sec. 755. Animals used in research.

                      Subtitle C--Related Matters

Sec. 761. Resident instruction at land-grant colleges in United States 
              territories.
Sec. 762. Declaration of extraordinary emergency and resulting 
              authorities.
Sec. 763. Agricultural biotechnology research and development for the 
              developing world.

        Subtitle D--Repeal of Certain Activities and Authorities

Sec. 771. Food Safety Research Information Office and National 
              Conference.
Sec. 772. Reimbursement of expenses under Sheep Promotion, Research, 
              and Information Act of 1994.
Sec. 773. National genetic resources program.
Sec. 774. National Advisory Board on Agricultural Weather.
Sec. 775. Agricultural information exchange with Ireland.
Sec. 776. Pesticide resistance study.
Sec. 777. Expansion of education study.
Sec. 778. Support for advisory board.
Sec. 779. Task force on 10-year strategic plan for agricultural 
              research facilities.

              Subtitle E--Agriculture Facility Protection

Sec. 790. Additional protections for animal or agricultural 
              enterprises, research facilities, and other entities.

                    TITLE VIII--FORESTRY INITIATIVES

Sec. 801. Repeal of forestry incentives program and Stewardship 
              Incentive Program.
Sec. 802. Establishment of Forest Land Enhancement Program.
Sec. 803. Renewable resources extension activities.
Sec. 804. Enhanced community fire protection.
Sec. 805. International forestry program.
Sec. 806. Wildfire prevention and hazardous fuel purchase program.
Sec. 807. McIntire-Stennis cooperative forestry research program.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                  Subtitle A--Tree Assistance Program

Sec. 901. Eligibility.
Sec. 902. Assistance.
Sec. 903. Limitation on assistance.
Sec. 904. Definitions.

                       Subtitle B--Other Matters

Sec. 921. Bioenergy program.
Sec. 922. Availability of section 32 funds.
Sec. 923. Seniors farmers' market nutrition program.
Sec. 924. Department of Agriculture authorities regarding caneberries.
Sec. 925. National Appeals Division.
Sec. 926. Outreach and assistance for socially disadvantaged farmers 
              and ranchers.
Sec. 927. Equal treatment of potatoes and sweet potatoes.
Sec. 928. Reference to sea grass and sea oats as crops covered by 
              noninsured crop disaster assistance program.
Sec. 929. Operation of Graduate School of Department of Agriculture.
Sec. 930. Assistance for livestock producers.
Sec. 931. Compliance with Buy American Act and sense of Congress 
              regarding purchase of American-made equipment, products, 
              and services using funds provided under this Act.
Sec. 932. Report regarding genetically engineered foods.
Sec. 933. Market name for pangasius fish species.
Sec. 934. Program of public education regarding use of biotechnology in 
              producing food for human consumption.
Sec. 935. GAO study.
Sec. 936. Interagency Task Force on Agricultural Competition.
Sec. 937. Authorization for additional staff and funding for the Grain 
              Inspection, Packers and Stockyards Administration.
Sec. 938. Enforcement of the humane methods of Slaughter Act of 1958.
Sec. 939. Penalties and foreign commerce provisions of the Animal 
              Welfare Act.
Sec. 940. Improve administration of Animal and Plant Health Inspection 
              Service.
Sec. 941. Renewable energy resources.
Sec. 942. Use of amounts provided for fixed, decoupled payments to 
              provide necessary funds for rural development programs.
Sec. 943. Unlawful stockyard practices involving nonambulatory 
              livestock.
Sec. 944. Annual report on imports of beef and pork.

                      TITLE I--COMMODITY PROGRAMS

     SEC. 100. DEFINITIONS.

       In this title (other than chapter 3 of subtitle C):
       (1) Agricultural act of 1949.--The term ``Agricultural Act 
     of 1949'' means the Agricultural Act of 1949 (7 U.S.C. 1421 
     et seq.), as in effect prior to the suspensions under section 
     171 of the Federal Agriculture Improvement and Reform Act of 
     1996 (7 U.S.C. 7301).
       (2) Base acres.--The term ``base acres'', with respect to a 
     covered commodity on a farm, means the number of acres 
     established under section 103 with respect to the commodity 
     upon the election made by the producers on the farm under 
     subsection (a) of such section.
       (3) Counter-cyclical payment.--The term ``counter-cyclical 
     payment'' means a payment made to producers under section 
     105.
       (4) Covered commodity.--The term ``covered commodity'' 
     means wheat, corn, grain sorghum, barley, oats, upland 
     cotton, rice, soybeans, and other oilseeds.
       (5) Effective price.--The term ``effective price'', with 
     respect to a covered commodity for a crop year, means the 
     price calculated by the Secretary under section 105 to 
     determine whether counter-cyclical payments are required to 
     be made for that crop year.
       (6) Eligible producer.--The term ``eligible producer'' 
     means a producer described in section 101(a).
       (7) Fixed, decoupled payment.--The term ``fixed, decoupled 
     payment'' means a payment made to producers under section 
     104.
       (8) Other oilseed.--The term ``other oilseed'' means a crop 
     of sunflower seed, rapeseed, canola, safflower, flaxseed, 
     mustard seed, or, if designated by the Secretary, another 
     oilseed.
       (9) Payment acres.--The term ``payment acres'' means 85 
     percent of the base acres of a covered commodity on a farm, 
     as established under section 103, upon which fixed, decoupled 
     payments and counter-cyclical payments are to be made.
       (10) Payment yield.--The term ``payment yield'' means the 
     yield established under section 102 for a farm for a covered 
     commodity.
       (11) Producer.--The term ``producer'' means an owner, 
     operator, landlord, tenant, or sharecropper who shares in the 
     risk of producing a crop and who is entitled to share in the 
     crop available for marketing from the farm, or would have 
     shared had the crop been produced. In determining whether a 
     grower of hybrid seed is a producer, the Secretary shall not 
     take into consideration the existence of a hybrid seed 
     contract and shall ensure that program requirements do not 
     adversely affect the ability of the grower to receive a 
     payment under this title.


       (12) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (13) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.

[[Page 26816]]

       (14) Target price.--The term ``target price'' means the 
     price per bushel (or other appropriate unit in the case of 
     upland cotton, rice, and other oilseeds) of a covered 
     commodity used to determine the payment rate for counter-
     cyclical payments.
       (15) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

   Subtitle A--Fixed Decoupled Payments and Counter-Cyclical Payments

     SEC. 101. PAYMENTS TO ELIGIBLE PRODUCERS.

       (a) Payments Required.--Beginning with the 2002 crop of 
     covered commodities, the Secretary shall make fixed decoupled 
     payments and counter-cyclical payments under this subtitle--
       (1) to producers on a farm that were parties to a 
     production flexibility contract under section 111 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7211) for fiscal year 2002; and
       (2) to other producers on farms in the United States as 
     described in section 103(a).
       (b) Tenants and Sharecroppers.--In carrying out this title, 
     the Secretary shall provide adequate safeguards to protect 
     the interests of tenants and sharecroppers.
       (c) Sharing of Payments.--The Secretary shall provide for 
     the sharing of fixed, decoupled payments and counter-cyclical 
     payments among the eligible producers on a farm on a fair and 
     equitable basis.

     SEC. 102. ESTABLISHMENT OF PAYMENT YIELD.

       (a) Establishment and Purpose.--For the purpose of making 
     fixed decoupled payments and counter-cyclical payments under 
     this subtitle, the Secretary shall provide for the 
     establishment of a payment yield for each farm for each 
     covered commodity in accordance with this section.
       (b) Use of Farm Program Payment Yield.--Except as otherwise 
     provided in this section, the payment yield for each of the 
     2002 through 2011 crops of a covered commodity for a farm 
     shall be the farm program payment yield in effect for the 
     2002 crop of the covered commodity under section 505 of the 
     Agricultural Act of 1949 (7 U.S.C. 1465).
       (c) Farms Without Farm Program Payment Yield.--In the case 
     of a farm for which a farm program payment yield is 
     unavailable for a covered commodity (other than soybeans or 
     other oilseeds), the Secretary shall establish an appropriate 
     payment yield for the covered commodity on the farm taking in 
     consideration the farm program payment yields applicable to 
     the commodity under subsection (b) for similar farms in the 
     area.
       (d) Payment Yields for Oilseeds.--
       (1) Determination of average yield.--In the case of 
     soybeans and each other oilseed, the Secretary shall 
     determine the average yield for the oilseed on a farm for the 
     1998 through 2001 crop years, excluding any crop year in 
     which the acreage planted to the oilseed was zero. If, for 
     any of these four crop years in which the oilseed was 
     planted, the farm would have satisfied the eligibility 
     criteria established to carry out section 1102 of the 
     Agriculture, Rural Development, Food and Drug Administration, 
     and Related Agencies Appropriations Act, 1999 (Public Law 
     105-277; 7 U.S.C. 1421 note), the Secretary shall assign a 
     yield for that year equal to 65 percent of the county yield.
       (2) Adjustment for payment yield.--The payment yield for a 
     farm for an oilseed shall be equal to the product of the 
     following:
       (A) The average yield for the oilseed determined under 
     paragraph (1).
       (B) The ratio resulting from dividing the national average 
     yield for the oilseed for the 1981 through 1985 crops by the 
     national average yield for the oilseed for the 1998 through 
     2001 crops.

     SEC. 103. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A 
                   FARM.

       (a) Election by Producers of Base Acre Calculation 
     Method.--For the purpose of making fixed decoupled payments 
     and counter-cyclical payments with respect to a farm, the 
     Secretary shall give producers on the farm an opportunity to 
     elect one of the following as the method by which the base 
     acres of all covered commodities on the farm are to be 
     determined:
       (1) The four-year average of acreage actually planted on 
     the farm to a covered commodity for harvest, grazing, haying, 
     silage, or other similar purposes during crop years 1998, 
     1999, 2000, and 2001 and any acreage on the farm that the 
     producers were prevented from planting during such crop years 
     to the covered commodity because of drought, flood, or other 
     natural disaster, or other condition beyond the control of 
     the producer, as determined by the Secretary.
       (2) The sum of contract acreage (as defined in section 102 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7202)) used by the Secretary to calculate the 
     fiscal year 2002 payment that, subject to section 109, would 
     be made under section 114 of such Act (7 U.S.C. 7214) for the 
     covered commodity on the farm and the four-year average 
     determined under paragraph (1) for soybeans and each other 
     oilseed produced on the farm.
       (b) Single Election; Time for Election.--The opportunity to 
     make the election described in subsection (a) shall be 
     available to producers on a farm only once. The producers 
     shall notify the Secretary of the election made by the 
     producers under such subsection not later than 180 days after 
     the date of the enactment of this Act.
       (c) Effect of Failure To Make Election.--If the producers 
     on a farm fail to make the election under subsection (a), or 
     fail to timely notify the Secretary of the selected option as 
     required by subsection (b), the producers shall be deemed to 
     have made the election described in subsection (a)(2) to 
     determine base acres for all covered commodities on the farm.
       (d) Application of Election to All Covered Commodities.--
     The election made under subsection (a) or deemed to be made 
     under subsection (c) with respect to a farm shall apply to 
     all of the covered commodities on the farm. Producers may not 
     make the election described in subsection (a)(1) for one 
     covered commodity and the election described in subsection 
     (a)(2) for other covered commodities on the farm.
       (e) Treatment of Conservation Reserve Contract Acreage.--
       (1) In general.--In the case of producers on a farm that 
     make the election described in subsection (a)(2), the 
     Secretary shall provide for an adjustment in the base acres 
     for the farm whenever either of the following circumstances 
     occur:
       (A) A conservation reserve contract entered into under 
     section 1231 of the Food Security Act of 1985 (16 U.S.C. 
     3831) with respect to the farm expires or is voluntarily 
     terminated.
       (B) Cropland is released from coverage under a conservation 
     reserve contract by the Secretary.
       (2) Special payment rules.--For the fiscal year and crop 
     year in which a base acre adjustment under paragraph (1) is 
     first made, the producers on the farm shall elect to receive 
     either fixed decoupled payments and counter-cyclical payments 
     with respect to the acreage added to the farm under this 
     subsection or a prorated payment under the conservation 
     reserve contract, but not both.
       (f) Payment Acres.--The payment acres for a covered 
     commodity on a farm shall be equal to 85 percent of the base 
     acres for the commodity.
       (g) Prevention of Excess Base Acres.--
       (1) Required reduction.--If the sum of the base acres for a 
     farm, together with the acreage described in paragraph (2), 
     exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of base acres for one or 
     more covered commodities for the farm or peanut acres for the 
     farm as necessary so that the sum of the base acres and 
     acreage described in paragraph (2) does not exceed the actual 
     cropland acreage of the farm. The Secretary shall give the 
     producers on the farm the opportunity to select the base 
     acres or peanut acres against which the reduction will be 
     made.
       (2) Other acreage.--For purposes of paragraph (1), the 
     Secretary shall include the following:
       (A) Any peanut acres for the farm under chapter 3 of 
     subtitle C.
       (B) Any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.).
       (C) Any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       (3) Exception for double-cropped acreage.--In applying 
     paragraph (1), the Secretary shall make an exception in the 
     case of double cropping, as determined by the Secretary.

     SEC. 104. AVAILABILITY OF FIXED, DECOUPLED PAYMENTS.

       (a) Payment Required.--For each of the 2002 through 2011 
     crop years of each covered commodity, the Secretary shall 
     make fixed, decoupled payments to eligible producers.
       (b) Payment Rate.--The payment rates used to make fixed, 
     decoupled payments with respect to covered commodities for a 
     crop year are as follows:
       (1) Wheat, $0.53 per bushel.
       (2) Corn, $0.30 per bushel.
       (3) Grain sorghum, $0.36 per bushel.
       (4) Barley, $0.25 per bushel.
       (5) Oats, $0.025 per bushel.
       (6) Upland cotton, $0.0667 per pound.
       (7) Rice, $2.35 per hundredweight.
       (8) Soybeans, $0.42 per bushel.
       (9) Other oilseeds, $0.0074 per pound.
       (c) Payment Amount.--The amount of the fixed, decoupled 
     payment to be paid to the eligible producers on a farm for a 
     covered commodity for a crop year shall be equal to the 
     product of the following:
       (1) The payment rate specified in subsection (b).
       (2) The payment acres of the covered commodity on the farm.
       (3) The payment yield for the covered commodity for the 
     farm.
       (d) Time for Payment.--
       (1) General rule.--Fixed, decoupled payments shall be paid 
     not later than September 30 of each of fiscal years 2002 
     through 2011. In the case of the 2002 crop, payments may 
     begin to be made on or after December 1, 2001.
       (2) Advance payments.--At the option of an eligible 
     producer, 50 percent of the fixed, decoupled payment for a 
     fiscal year shall be paid on a date selected by the producer. 
     The selected date shall be on or after December 1

[[Page 26817]]

     of that fiscal year, and the producer may change the selected 
     date for a subsequent fiscal year by providing advance notice 
     to the Secretary.
       (3) Repayment of advance payments.--If a producer that 
     receives an advance fixed, decoupled payment for a fiscal 
     year ceases to be an eligible producer before the date the 
     fixed, decoupled payment would otherwise have been made by 
     the Secretary under paragraph (1), the producer shall be 
     responsible for repaying the Secretary the full amount of the 
     advance payment.

     SEC. 105. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

       (a) Payment Required.--The Secretary shall make counter-
     cyclical payments with respect to a covered commodity 
     whenever the Secretary determines that the effective price 
     for the commodity is less than the target price for the 
     commodity.
       (b) Effective Price.--For purposes of subsection (a), the 
     effective price for a covered commodity is equal to the sum 
     of the following:
       (1) The higher of the following:
       (A) The national average market price received by producers 
     during the 12-month marketing year for the commodity, as 
     determined by the Secretary.
       (B) The national average loan rate for a marketing 
     assistance loan for the covered commodity in effect for the 
     same period under subtitle B.
       (2) The payment rate in effect for the covered commodity 
     under section 104 for the purpose of making fixed, decoupled 
     payments with respect to the commodity.
       (c) Target Price.--For purposes of subsection (a), the 
     target prices for covered commodities are as follows:
       (1) Wheat, $4.04 per bushel.
       (2) Corn, $2.78 per bushel.
       (3) Grain sorghum, $2.64 per bushel.
       (4) Barley, $2.39 per bushel.
       (5) Oats, $1.47 per bushel.
       (6) Upland cotton, $0.736 per pound.
       (7) Rice, $10.82 per hundredweight.
       (8) Soybeans, $5.86 per bushel.
       (9) Other oilseeds, $0.1036 per pound.
       (d) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to a covered commodity for a 
     crop year shall be equal to the difference between--
       (1) the target price for the commodity; and
       (2) the effective price determined under subsection (b) for 
     the commodity.
       (e) Payment Amount.--The amount of the counter-cyclical 
     payment to be paid to the eligible producers on a farm for a 
     covered commodity for a crop year shall be equal to the 
     product of the following:
       (1) The payment rate specified in subsection (d).
       (2) The payment acres of the covered commodity on the farm.
       (3) The payment yield for the covered commodity for the 
     farm.
       (f) Time for Payments.--
       (1) General rule.--The Secretary shall make counter-
     cyclical payments under this section for a crop of a covered 
     commodity as soon as possible after determining under 
     subsection (a) that such payments are required for that crop 
     year.
       (2) Partial payment.--The Secretary may permit, and, if so 
     permitted, an eligible producer may elect to receive, up to 
     40 percent of the projected counter-cyclical payment, as 
     determined by the Secretary, to be made under this section 
     for a crop of a covered commodity upon completion of the 
     first six months of the marketing year for that crop. The 
     producer shall repay to the Secretary the amount, if any, by 
     which the partial payment exceeds the actual counter-cyclical 
     payment to be made for that marketing year.
       (g) Special Rule for Currently Undesignated Oilseed.--If 
     the Secretary uses the authority under section 100(8) to 
     designate another oilseed as an oilseed for which counter-
     cyclical payments may be made, the Secretary may modify the 
     target price specified in subsection (c)(9) that would 
     otherwise apply to that oilseed as the Secretary considers 
     appropriate.
       (h) Special Rule for Barley Used Only for Feed Purposes.--
     For purposes of calculating the effective price for barley 
     under subsection (b), the Secretary shall use the loan rate 
     in effect for barley under section 122(b)(3), except, in the 
     case of producers who received the higher loan rate provided 
     under such section for barley used only for feed purposes, 
     the Secretary shall use that higher loan rate.

     SEC. 106. PRODUCER AGREEMENT REQUIRED AS CONDITION ON 
                   PROVISION OF FIXED, DECOUPLED PAYMENTS AND 
                   COUNTER-CYCLICAL PAYMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the producers on a farm may 
     receive fixed, decoupled payments or counter-cyclical 
     payments with respect to the farm, the producers shall agree, 
     in exchange for the payments--
       (A) to comply with applicable conservation requirements 
     under subtitle B of title XII of the Food Security Act of 
     1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland protection 
     requirements under subtitle C of title XII of the Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 107; and
       (D) to use the land on the farm, in an amount equal to the 
     base acres, for an agricultural or conserving use, and not 
     for a nonagricultural commercial or industrial use, as 
     determined by the Secretary.
       (2) Compliance.--The Secretary may issue such rules as the 
     Secretary considers necessary to ensure producer compliance 
     with the requirements of paragraph (1).
       (b) Effect of Foreclosure.--A producer may not be required 
     to make repayments to the Secretary of fixed, decoupled 
     payments and counter-cyclical payments if the farm has been 
     foreclosed on and the Secretary determines that forgiving the 
     repayments is appropriate to provide fair and equitable 
     treatment. This subsection shall not void the 
     responsibilities of the producer under subsection (a) if the 
     producer continues or resumes operation, or control, of the 
     farm. On the resumption of operation or control over the farm 
     by the producer, the requirements of subsection (a) in effect 
     on the date of the foreclosure shall apply.
       (c) Transfer or Change of Interest in Farm.--
       (1) Termination.--Except as provided in paragraph (4), a 
     transfer of (or change in) the interest of a producer in base 
     acres for which fixed, decoupled payments or counter-cyclical 
     payments are made shall result in the termination of the 
     payments with respect to the base acres, unless the 
     transferee or owner of the acreage agrees to assume all 
     obligations under subsection (a). The termination shall be 
     effective on the date of the transfer or change.
       (2) Transfer of payment base.--There is no restriction on 
     the transfer of a farm's base acres or payment yield as part 
     of a change in the producers on the farm.
       (3) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of 
     subsection (a) if the modifications are consistent with the 
     objectives of such subsection, as determined by the 
     Secretary.
       (4) Exception.--If a producer entitled to a fixed, 
     decoupled payment or counter-cyclical payment dies, becomes 
     incompetent, or is otherwise unable to receive the payment, 
     the Secretary shall make the payment, in accordance with 
     regulations prescribed by the Secretary.
       (d) Acreage Reports.--
       (1) In general.--As a condition on the receipt of any 
     benefits under this subtitle or subtitle B, the Secretary 
     shall require producers to submit to the Secretary acreage 
     reports.
       (2) Conforming Amendment.--Section 15 of the Agricultural 
     Marketing Act (12 U.S.C. 1141j) is amended by striking 
     subsection (d).
       (e) Review.--A determination of the Secretary under this 
     section shall be considered to be an adverse decision for 
     purposes of the availability of administrative review of the 
     determination.

     SEC. 107. PLANTING FLEXIBILITY.

       (a) Permitted Crops.--Subject to subsection (b), any 
     commodity or crop may be planted on base acres on a farm.
       (b) Limitations and Exceptions Regarding Certain 
     Commodities.--
       (1) Limitations.--The planting of the following 
     agricultural commodities shall be prohibited on base acres:
       (A) Fruits.
       (B) Vegetables (other than lentils, mung beans, and dry 
     peas).
       (C) Wild rice.
       (2) Exceptions.--Paragraph (1) shall not limit the planting 
     of an agricultural commodity specified in such paragraph--
       (A) in any region in which there is a history of double-
     cropping of covered commodities with agricultural commodities 
     specified in paragraph (1), as determined by the Secretary, 
     in which case the double-cropping shall be permitted;
       (B) on a farm that the Secretary determines has a history 
     of planting agricultural commodities specified in paragraph 
     (1) on base acres, except that fixed, decoupled payments and 
     counter-cyclical payments shall be reduced by an acre for 
     each acre planted to such an agricultural commodity; or
       (C) by a producer who the Secretary determines has an 
     established planting history of a specific agricultural 
     commodity specified in paragraph (1), except that--
       (i) the quantity planted may not exceed the producer's 
     average annual planting history of such agricultural 
     commodity in the 1991 through 1995 crop years (excluding any 
     crop year in which no plantings were made), as determined by 
     the Secretary; and
       (ii) fixed, decoupled payments and counter-cyclical 
     payments shall be reduced by an acre for each acre planted to 
     such agricultural commodity.

     SEC. 108. RELATION TO REMAINING PAYMENT AUTHORITY UNDER 
                   PRODUCTION FLEXIBILITY CONTRACTS.

       (a) Termination of Superseded Payment Authority.--
     Notwithstanding section 113(a)(7) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7213(a)(7)) or 
     any other provision of law, the Secretary shall not make 
     payments for fiscal year 2002 after the date of the enactment 
     of this Act under production flexibility contracts entered 
     into under section 111 of such Act (7 U.S.C. 7211).

[[Page 26818]]

       (b) Contract Payments Made Before Enactment.--If, on or 
     before the date of the enactment of this Act, a producer 
     receives all or any portion of the payment authorized for 
     fiscal year 2002 under a production flexibility contract, the 
     Secretary shall reduce the amount of the fixed, decoupled 
     payment otherwise due the producer for that same fiscal year 
     by the amount of the fiscal year 2002 payment previously 
     received by the producer.

     SEC. 109. PAYMENT LIMITATIONS.

       Sections 1001 through 1001C of the Food Security Act of 
     1985 (7 U.S.C. 1308 through 1308-3) shall apply to fixed, 
     decoupled payments and counter-cyclical payments.

     SEC. 110. FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

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

     ``SEC. 119. FARM COUNTER-CYCLICAL SAVINGS ACCOUNTS.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross revenue.--The term `adjusted gross 
     revenue' means the adjusted gross income for all agricultural 
     enterprises of a producer in a year, excluding revenue earned 
     from nonagricultural sources, as determined by the 
     Secretary--
       ``(A) by taking into account gross receipts from the sale 
     of crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       ``(B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including 
     any marketing loan gains described in section 1001(3)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(3)(A));
       ``(C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer; and
       ``(D) as represented on--
       ``(i) a schedule F of the Federal income tax returns of the 
     producer; or
       ``(ii) a comparable tax form related to the agricultural 
     enterprises of the producer, as approved by the Secretary.
       ``(2) Agricultural enterprise.--The term `agricultural 
     enterprise' means the production and marketing of all 
     agricultural commodities (including livestock but excluding 
     tobacco) on a farm or ranch.
       ``(3) Average adjusted gross revenue.--The term `average 
     adjusted gross revenue' means--
       ``(A) the average of the adjusted gross revenue of a 
     producer for each of the preceding 5 taxable years; or
       ``(B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated income of the 
     producer that will be earned from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       ``(4) Producer.--The term `producer' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       ``(A) shares in the risk of producing, or provides a 
     material contribution in producing, an agricultural commodity 
     for the applicable year;
       ``(B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       ``(C)(i) during each of the preceding 5 taxable years, has 
     filed--
       ``(I) a schedule F of the Federal income tax returns; or
       ``(II) a comparable tax form related to the agricultural 
     enterprises of the individual or entity, as approved by the 
     Secretary; or
       ``(ii) is a beginning farmer or rancher or other producer 
     that does not have adjusted gross revenue for each of the 
     preceding 5 taxable years, as determined by the Secretary; 
     and
       ``(D)(i) has earned at least $20,000 in average adjusted 
     gross revenue for each of the preceding 5 taxable years;
       ``(ii) is a limited resource farmer or rancher, as 
     determined by the Secretary; or
       ``(iii) in the case of a beginning farmer or rancher or 
     other producer that does not have adjusted gross revenue for 
     each of the preceding 5 taxable years, has at least $20,000 
     in estimated income from all agricultural enterprises for the 
     applicable year, as determined by the Secretary.
       ``(b) Establishment.--A producer may establish a farm 
     counter-cyclical savings account in the name of the producer 
     in a bank or financial institution selected by the producer 
     and approved by the Secretary.
       ``(c) Content of Account.--A farm counter-cyclical savings 
     account shall consist of--
       ``(1) contributions of the producer; and
       ``(2) matching contributions of the Secretary.
       ``(d) Producer Contributions.--
       ``(1) In general.--Subject to paragraph (2), a producer may 
     deposit such amounts in the account of the producer as the 
     producer considers appropriate.
       ``(2) Maximum account balance.--The balance of an account 
     of a producer may not exceed 150 percent of the average 
     adjusted gross revenue of the producer for the previous 5 
     years.
       ``(e) Matching Contributions.--
       ``(1) In general.--Subject to paragraphs (2) through (5), 
     the Secretary shall provide a matching contribution on the 
     amount deposited by the producer into the account.
       ``(2) Formula.--The Secretary shall establish a formula to 
     determine the amount of matching contributions that will be 
     provided by the Secretary under paragraph (1).
       ``(3) Maximum contributions for individual producer.--The 
     amount of matching contributions that may be provided by the 
     Secretary for an individual producer under this subsection 
     shall not exceed $10,000.
       ``(4) Maximum contributions for all producers.--The total 
     amount of matching contributions that may be provided by the 
     Secretary for all producers under this subsection shall not 
     exceed--
       ``(A) $800,000,000 for fiscal year 2002;
       ``(B) $900,000,000 for fiscal year 2003;
       ``(C) $1,000,000,000 for fiscal year 2004;
       ``(D) $1,100,000,000 for fiscal year 2005; and
       ``(E) $1,200,000,000 for fiscal year 2006.
       ``(5) Date for matching contributions.--The Secretary shall 
     provide the matching contributions required for a producer 
     under paragraph (1) as of the date that a majority of the 
     covered commodities grown by the producer are harvested.
       ``(f) Interest.--Funds deposited into the account may earn 
     interest at the commercial rates provided by the bank or 
     financial institution in which the Account is established.
       ``(g) Use.--Funds credited to the account--
       ``(1) shall be available for withdrawal by a producer, in 
     accordance with subsection (h); and
       ``(2) may be used for purposes determined by the producer.
       ``(h) Withdrawal.--
       ``(1) In general.--Subject to paragraph (2), a producer may 
     withdraw funds from the account if the adjusted gross revenue 
     of the producer is less than 90 percent of average adjusted 
     gross revenue of the producer for the previous 5 years.
       ``(2) Retirement.--
       ``(A) In general.--Subject to subparagraph (B), a producer 
     that ceases to be actively engaged in farming, as determined 
     by the Secretary--
       ``(i) may withdraw the full balance from, and close, the 
     account; and
       ``(ii) may not establish another account.
       ``(B) Waivers.--The Secretary shall promulgate regulations 
     that provide for a waiver, in limited circumstances (as 
     determined by the Secretary), of the application of 
     subparagraph (B)(ii) to a producer.
       ``(i) Administration.--The Secretary shall administer this 
     section through the Farm Service Agency and local, county, 
     and area offices of the Department of Agriculture.''.

     SEC. 111. PERIOD OF EFFECTIVENESS.

       This subtitle shall be effective beginning with the 2002 
     crop year of each covered commodity through the 2011 crop 
     year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

     SEC. 121. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
                   LOANS FOR COVERED COMMODITIES.

       (a) Nonrecourse Loans Available.--
       (1) Availability.--For each of the 2002 through 2011 crops 
     of each covered commodity, the Secretary shall make available 
     to producers on a farm nonrecourse marketing assistance loans 
     for covered commodities produced on the farm. The loans shall 
     be made under terms and conditions that are prescribed by the 
     Secretary and at the loan rate established under section 122 
     for the covered commodity.
       (2) Inclusion of extra long staple cotton.--In this 
     subtitle, the term ``covered commodity'' includes extra long 
     staple cotton.
       (b) Eligible Production.--Any production of a covered 
     commodity on a farm shall be eligible for a marketing 
     assistance loan under subsection (a).
       (c) Treatment of Certain Commingled Commodities.--In 
     carrying out this subtitle, the Secretary shall make loans to 
     a producer that is otherwise eligible to obtain a marketing 
     assistance loan, but for the fact the covered commodity owned 
     by the producer is commingled with covered commodities of 
     other producers in facilities unlicensed for the storage of 
     agricultural commodities by the Secretary or a State 
     licensing authority, if the producer obtaining the loan 
     agrees to immediately redeem the loan collateral in 
     accordance with section 166 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7286).
       (d) Compliance With Conservation and Wetlands 
     Requirements.--As a condition of the receipt of a marketing 
     assistance loan under subsection (a), the producer shall 
     comply with applicable conservation requirements under 
     subtitle B of title XII of the Food Security Act of 1985 (16 
     U.S.C. 3811 et seq.) and applicable wetland protection 
     requirements under subtitle C of title XII of the Act (16 
     U.S.C. 3821 et seq.) during the term of the loan.
       (e) Definition of Extra Long Staple Cotton.--In this 
     subtitle, the term ``extra long staple cotton'' means cotton 
     that--
       (1) is produced from pure strain varieties of the 
     Barbadense species or any hybrid thereof, or other similar 
     types of extra long staple cotton, designated by the 
     Secretary, having characteristics needed for various end uses 
     for which United States upland cotton is not

[[Page 26819]]

     suitable and grown in irrigated cotton-growing regions of the 
     United States designated by the Secretary or other areas 
     designated by the Secretary as suitable for the production of 
     the varieties or types; and
       (2) is ginned on a roller-type gin or, if authorized by the 
     Secretary, ginned on another type gin for experimental 
     purposes.
       (f) Termination of Superseded Loan Authority.--
     Notwithstanding section 131 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7231), 
     nonrecourse marketing assistance loans shall not be made for 
     the 2002 crop of covered commodities under subtitle C of 
     title I of such Act.

     SEC. 122. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE 
                   LOANS.

       (a) Wheat.--
       (1) Loan rate.--Subject to paragraph (2), the loan rate for 
     a marketing assistance loan under section 121 for wheat shall 
     be--
       (A) not less than 85 percent of the simple average price 
     received by producers of wheat, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding five crops of wheat, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (B) not more than $2.58 per bushel.
       (2) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of wheat to total use for the marketing year will be--
       (A) equal to or greater than 30 percent, the Secretary may 
     reduce the loan rate for wheat for the corresponding crop by 
     an amount not to exceed 10 percent in any year;
       (B) less than 30 percent but not less than 15 percent, the 
     Secretary may reduce the loan rate for wheat for the 
     corresponding crop by an amount not to exceed 5 percent in 
     any year; or
       (C) less than 15 percent, the Secretary may not reduce the 
     loan rate for wheat for the corresponding crop.
       (b) Feed Grains.--
       (1) Loan rate for corn and grain sorghum.--Subject to 
     paragraph (2), the loan rate for a marketing assistance loan 
     under section 121 for corn and grain sorghum shall be--
       (A) not less than 85 percent of the simple average price 
     received by producers of corn or grain sorghum, respectively, 
     as determined by the Secretary, during the marketing years 
     for the immediately preceding five crops of the covered 
     commodity, excluding the year in which the average price was 
     the highest and the year in which the average price was the 
     lowest in the period; but
       (B) not more than $1.89 per bushel.
       (2) Stocks to use ratio adjustment.--If the Secretary 
     estimates for any marketing year that the ratio of ending 
     stocks of corn or grain sorghum to total use for the 
     marketing year will be--
       (A) equal to or greater than 25 percent, the Secretary may 
     reduce the loan rate for the covered commodity for the 
     corresponding crop by an amount not to exceed 10 percent in 
     any year;
       (B) less than 25 percent but not less than 12.5 percent, 
     the Secretary may reduce the loan rate for the covered 
     commodity for the corresponding crop by an amount not to 
     exceed 5 percent in any year; or
       (C) less than 12.5 percent, the Secretary may not reduce 
     the loan rate for the covered commodity for the corresponding 
     crop.
       (3) Other feed grains.--The loan rate for a marketing 
     assistance loan under section 121 for barley and oats shall 
     be--
       (A) established at such level as the Secretary determines 
     is fair and reasonable in relation to the rate that loans are 
     made available for corn, taking into consideration the 
     feeding value of the commodity in relation to corn; but
       (B) not more than--
       (i) $1.65 per bushel for barley, except not more than $1.70 
     per bushel for barley used only for feed purposes, as 
     determined by the Secretary; and
       (ii) $1.21 per bushel for oats.
       (c) Upland Cotton.--
       (1) Loan rate.--Subject to paragraph (2), the loan rate for 
     a marketing assistance loan under section 121 for upland 
     cotton shall be established by the Secretary at such loan 
     rate, per pound, as will reflect for the base quality of 
     upland cotton, as determined by the Secretary, at average 
     locations in the United States a rate that is not less than 
     the smaller of--
       (A) 85 percent of the average price (weighted by market and 
     month) of the base quality of cotton as quoted in the 
     designated United States spot markets during 3 years of the 
     5-year period ending July 31 of the year preceding the year 
     in which the crop is planted, excluding the year in which the 
     average price was the highest and the year in which the 
     average price was the lowest in the period; or
       (B) 90 percent of the average, for the 15-week period 
     beginning July 1 of the year preceding the year in which the 
     crop is planted, of the five lowest-priced growths of the 
     growths quoted for Middling 1\3/32\-inch cotton C.I.F. 
     Northern Europe (adjusted downward by the average difference 
     during the period April 15 through October 15 of the year 
     preceding the year in which the crop is planted between the 
     average Northern European price quotation of such quality of 
     cotton and the market quotations in the designated United 
     States spot markets for the base quality of upland cotton), 
     as determined by the Secretary.
       (2) Limitations.--The loan rate for a marketing assistance 
     loan for upland cotton shall not be less than $0.50 per pound 
     or more than $0.5192 per pound.
       (d) Extra Long Staple Cotton.--The loan rate for a 
     marketing assistance loan under section 121 for extra long 
     staple cotton shall be $0.7965 per pound.
       (e) Rice.--The loan rate for a marketing assistance loan 
     under section 121 for rice shall be $6.50 per hundredweight.
       (f) Oilseeds.--
       (1) Soybeans.--The loan rate for a marketing assistance 
     loan under section 121 for soybeans shall be--
       (A) not less than 85 percent of the simple average price 
     received by producers of soybeans, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding five crops of soybeans, excluding the year in which 
     the average price was the highest and the year in which the 
     average price was the lowest in the period; but
       (B) not more than $4.92 per bushel.
       (2) Other oilseeds.--The loan rate for a marketing 
     assistance loan under section 121 for other oilseeds shall 
     be--
       (A) not less than 85 percent of the simple average price 
     received by producers of the other oilseed, as determined by 
     the Secretary, during the marketing years for the immediately 
     preceding five crops of the other oilseed, excluding the year 
     in which the average price was the highest and the year in 
     which the average price was the lowest in the period; but
       (B) not more than $0.087 per pound.

     SEC. 123. TERM OF LOANS.

       (a) Term of Loan.--In the case of each covered commodity 
     (other than upland cotton or extra long staple cotton), a 
     marketing assistance loan under section 121 shall have a term 
     of nine months beginning on the first day of the first month 
     after the month in which the loan is made.
       (b) Special Rule for Cotton.--A marketing assistance loan 
     for upland cotton or extra long staple cotton shall have a 
     term of 10 months beginning on the first day of the month in 
     which the loan is made.
       (c) Extensions Prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for any covered 
     commodity.

     SEC. 124. REPAYMENT OF LOANS.

       (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--
     The Secretary shall permit a producer to repay a marketing 
     assistance loan under section 121 for wheat, corn, grain 
     sorghum, barley, oats, and oilseeds at a rate that is the 
     lesser of--
       (1) the loan rate established for the commodity under 
     section 122, plus interest (as determined by the Secretary); 
     or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity; and
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (b) Repayment Rates for Upland Cotton and Rice.--The 
     Secretary shall permit producers to repay a marketing 
     assistance loan under section 121 for upland cotton and rice 
     at a rate that is the lesser of--
       (1) the loan rate established for the commodity under 
     section 122, plus interest (as determined by the Secretary); 
     or
       (2) the prevailing world market price for the commodity 
     (adjusted to United States quality and location), as 
     determined by the Secretary.
       (c) Repayment Rates for Extra Long Staple Cotton.--
     Repayment of a marketing assistance loan for extra long 
     staple cotton shall be at the loan rate established for the 
     commodity under section 122, plus interest (as determined by 
     the Secretary).
       (d) Prevailing World Market Price.--For purposes of this 
     section and section 127, the Secretary shall prescribe by 
     regulation--
       (1) a formula to determine the prevailing world market 
     price for each covered commodity, adjusted to United States 
     quality and location; and
       (2) a mechanism by which the Secretary shall announce 
     periodically the prevailing world market price for each 
     covered commodity.
       (e) Adjustment of Prevailing World Market Price for Upland 
     Cotton.--
       (1) In general.--During the period beginning on the date of 
     the enactment of this Act and ending July 31, 2012, the 
     prevailing world market price for upland cotton (adjusted to 
     United States quality and location) established under 
     subsection (d) shall be further adjusted if--
       (A) the adjusted prevailing world market price is less than 
     115 percent of the loan rate for upland cotton established 
     under section 122, as determined by the Secretary; and
       (B) the Friday through Thursday average price quotation for 
     the lowest-priced United States growth as quoted for Middling 
     (M) 1\3/32\-inch cotton delivered C.I.F. Northern Europe is 
     greater than the Friday through Thursday average price of the 
     5 lowest-priced

[[Page 26820]]

     growths of upland cotton, as quoted for Middling (M) 1\3/32\-
     inch cotton, delivered C.I.F. Northern Europe (referred to in 
     this section as the ``Northern Europe price'').
       (2) Further adjustment.--Except as provided in paragraph 
     (3), the adjusted prevailing world market price for upland 
     cotton shall be further adjusted on the basis of some or all 
     of the following data, as available:
       (A) The United States share of world exports.
       (B) The current level of cotton export sales and cotton 
     export shipments.
       (C) Other data determined by the Secretary to be relevant 
     in establishing an accurate prevailing world market price for 
     upland cotton (adjusted to United States quality and 
     location).
       (3) Limitation on further adjustment.--The adjustment under 
     paragraph (2) may not exceed the difference between--
       (A) the Friday through Thursday average price for the 
     lowest-priced United States growth as quoted for Middling 
     1\3/32\-inch cotton delivered C.I.F. Northern Europe; and
       (B) the Northern Europe price.
       (f) Time for Fixing Repayment Rate.--In the case of a 
     producer that marketed or otherwise lost beneficial interest 
     in a covered commodity before repaying the marketing 
     assistance loan made under section 121 with respect to the 
     commodity, the Secretary shall permit the producer to repay 
     the loan at the lowest repayment rate that was in effect for 
     that covered commodity under this section as of the date that 
     the producer lost beneficial interest, as determined by the 
     Secretary.

     SEC. 125. LOAN DEFICIENCY PAYMENTS.

       (a) Availability of Loan Deficiency Payments.--Except as 
     provided in subsection (d), the Secretary may make loan 
     deficiency payments available to producers who, although 
     eligible to obtain a marketing assistance loan under section 
     121 with respect to a covered commodity, agree to forgo 
     obtaining the loan for the commodity in return for payments 
     under this section.
       (b) Computation.--A loan deficiency payment under this 
     section shall be computed by multiplying--
       (1) the loan payment rate determined under subsection (c) 
     for the covered commodity; by
       (2) the quantity of the covered commodity produced by the 
     eligible producers, excluding any quantity for which the 
     producers obtain a loan under section 121.
       (c) Loan Payment Rate.--For purposes of this section, the 
     loan payment rate shall be the amount by which--
       (1) the loan rate established under section 122 for the 
     covered commodity; exceeds
       (2) the rate at which a loan for the commodity may be 
     repaid under section 124.
       (d) Exception for Extra Long Staple Cotton.--This section 
     shall not apply with respect to extra long staple cotton.
       (e) Time for Payment.--The Secretary shall make a payment 
     under this section to a producer with respect to a quantity 
     of a covered commodity as of the earlier of the following:
       (1) The date on which the producer marketed or otherwise 
     lost beneficial interest in the commodity, as determined by 
     the Secretary.
       (2) The date the producer requests the payment.
       (f) Continuation of Special LDP Rule for 2001 Crop Year.--
     Section 135(a)(2) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7235(a)(2)) is amended by 
     striking ``2000 crop year'' and inserting ``2000 and 2001 
     crop years''.

     SEC. 126. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR 
                   GRAZED ACREAGE.

       (a) Eligible Producers.--Effective for the 2002 through 
     2011 crop years, in the case of a producer that would be 
     eligible for a loan deficiency payment under section 125 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 125(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 to forgo harvesting of 
     wheat, barley, or oats; and
       (B) the payment yield for that covered commodity on the 
     farm.
       (c) Time, Manner, and Availability of Payment.--
       (1) Time and manner.--A payment under this section shall be 
     made at the same time and in the same manner as loan 
     deficiency payments are made under section 125.
       (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 this subtitle.
       (d) Prohibition on Crop Insurance or Noninsured Crop 
     Assistance.--A 2002 through 2011 crop of wheat, barley, or 
     oats planted on acreage that a producer elects, in the 
     agreement required by subsection (a), to use for the grazing 
     of livestock in lieu of any other harvesting of the crop 
     shall not be eligible for insurance under the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop 
     assistance under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333).

     SEC. 127. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND 
                   COTTON.

       (a) Cotton User Marketing Certificates.--
       (1) Issuance.--During the period beginning on the date of 
     the enactment of this Act and ending July 31, 2012, the 
     Secretary shall issue marketing certificates or cash 
     payments, at the option of the recipient, to domestic users 
     and exporters for documented purchases by domestic users and 
     sales for export by exporters made in the week following a 
     consecutive four-week period in which--
       (A) the Friday through Thursday average price quotation for 
     the lowest-priced United States growth, as quoted for 
     Middling (M) 1\3/32\-inch cotton, delivered C.I.F. Northern 
     Europe exceeds the Northern Europe price; and
       (B) the prevailing world market price for upland cotton 
     (adjusted to United States quality and location) does not 
     exceed 134 percent of the loan rate for upland cotton 
     established under section 122.
       (2) Value of certificates or payments.--The value of the 
     marketing certificates or cash payments shall be based on the 
     amount of the difference in the prices during the fourth week 
     of the consecutive four-week period multiplied by the 
     quantity of upland cotton included in the documented sales.
       (3) Administration of marketing certificates.--
       (A) Redemption, marketing, or exchange.--The Secretary 
     shall establish procedures for redeeming marketing 
     certificates for cash or marketing or exchange of the 
     certificates for agricultural commodities owned by the 
     Commodity Credit Corporation or pledged to the Commodity 
     Credit Corporation as collateral for a loan in such manner, 
     and at such price levels, as the Secretary determines will 
     best effectuate the purposes of cotton user marketing 
     certificates, including enhancing the competitiveness and 
     marketability of United States cotton. Any price restrictions 
     that would otherwise apply to the disposition of agricultural 
     commodities by the Commodity Credit Corporation shall not 
     apply to the redemption of certificates under this 
     subsection.
       (B) Designation of commodities and products.--To the extent 
     practicable, the Secretary shall permit owners of 
     certificates to designate the commodities and products, 
     including storage sites, the owners would prefer to receive 
     in exchange for certificates.
       (C) Transfers.--Marketing certificates issued to domestic 
     users and exporters of upland cotton may be transferred to 
     other persons in accordance with regulations issued by the 
     Secretary.
       (4) Application of threshold.--
       (A) 2002 marketing year.--During the period beginning on 
     the date of enactment of this Act and ending July 31, 2002, 
     the Secretary shall make the calculations under paragraphs 
     (1)(A) and (2) and subsection (b)(1)(B) without regard to the 
     1.25 cent threshold provided those paragraphs and subsection.
       (B) 2003 through 2006 marketing years.--During each 12-
     month period beginning August 1, 2002, through August 1, 
     2006, the Secretary may make the calculations under 
     paragraphs (1)(A) and (2) and subsection (b)(1)(B) without 
     regard to the 1.25 cent threshold provided those paragraphs 
     and subsection.
       (b) Special Import Quota.--
       (1) Establishment.--
       (A) In general.--The President shall carry out an import 
     quota program during the period beginning on the date of the 
     enactment of this Act and ending July 31, 2012, as provided 
     in this subsection.
       (B) Program requirements.--Except as provided in 
     subparagraph (C), whenever the Secretary determines and 
     announces that for any consecutive four-week period, the 
     Friday through Thursday average price quotation for the 
     lowest-priced United States growth, as quoted for Middling 
     (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
     adjusted for the value of any certificate issued under 
     subsection (a), exceeds the Northern Europe price there shall 
     immediately be in effect a special import quota.
       (C) Tight domestic supply.--During any month for which the 
     Secretary estimates the season-ending United States upland 
     cotton stocks-to-use ratio, as determined under subparagraph 
     (D), to be below 16 percent, the Secretary, in making the 
     determination under subparagraph (B), shall not adjust the 
     Friday through Thursday average price quotation for the 
     lowest-priced United States growth, as quoted for Middling 
     (M) 1\3/32\-inch cotton, delivered C.I.F. Northern Europe, 
     for the value of any certificates issued under subsection 
     (a).
       (D) Season-ending united states stocks-to-use ratio.--For 
     the purposes of making

[[Page 26821]]

     estimates under subparagraph (C), the Secretary shall, on a 
     monthly basis, estimate and report the season-ending United 
     States upland cotton stocks-to-use ratio, excluding projected 
     raw cotton imports but including the quantity of raw cotton 
     that has been imported into the United States during the 
     marketing year.
       (2) Quantity.--The quota shall be equal to one week's 
     consumption of upland cotton by domestic mills at the 
     seasonally adjusted average rate of the most recent three 
     months for which data are available.
       (3) Application.--The quota shall apply to upland cotton 
     purchased not later than 90 days after the date of the 
     Secretary's announcement under paragraph (1) and entered into 
     the United States not later than 180 days after the date.
       (4) Overlap.--A special quota period may be established 
     that overlaps any existing quota period if required by 
     paragraph (1), except that a special quota period may not be 
     established under this subsection if a quota period has been 
     established under subsection (c).
       (5) Preferential tariff treatment.--The quantity under a 
     special import quota shall be considered to be an in-quota 
     quantity for purposes of--
       (A) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (B) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (C) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (D) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (6) Definition.--In this subsection, the term ``special 
     import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (7) Limitation.--The quantity of cotton entered into the 
     United States during any marketing year under the special 
     import quota established under this subsection may not exceed 
     the equivalent of five week's consumption of upland cotton by 
     domestic mills at the seasonally adjusted average rate of the 
     three months immediately preceding the first special import 
     quota established in any marketing year.
       (c) Limited Global Import Quota for Upland Cotton.--
       (1) In general.--The President shall carry out an import 
     quota program that provides that whenever the Secretary 
     determines and announces that the average price of the base 
     quality of upland cotton, as determined by the Secretary, in 
     the designated spot markets for a month exceeded 130 percent 
     of the average price of such quality of cotton in the markets 
     for the preceding 36 months, notwithstanding any other 
     provision of law, there shall immediately be in effect a 
     limited global import quota subject to the following 
     conditions:
       (A) Quantity.--The quantity of the quota shall be equal to 
     21 days of domestic mill consumption of upland cotton at the 
     seasonally adjusted average rate of the most recent three 
     months for which data are available.
       (B) Quantity if prior quota.--If a quota has been 
     established under this subsection during the preceding 12 
     months, the quantity of the quota next established under this 
     subsection shall be the smaller of 21 days of domestic mill 
     consumption calculated under subparagraph (A) or the quantity 
     required to increase the supply to 130 percent of the demand.
       (C) Preferential tariff treatment.--The quantity under a 
     limited global import quota shall be considered to be an in-
     quota quantity for purposes of--
       (i) section 213(d) of the Caribbean Basin Economic Recovery 
     Act (19 U.S.C. 2703(d));
       (ii) section 204 of the Andean Trade Preference Act (19 
     U.S.C. 3203);
       (iii) section 503(d) of the Trade Act of 1974 (19 U.S.C. 
     2463(d)); and
       (iv) General Note 3(a)(iv) to the Harmonized Tariff 
     Schedule.
       (D) Definitions.--In this subsection:
       (i) Supply.--The term ``supply'' means, using the latest 
     official data of the Bureau of the Census, the Department of 
     Agriculture, and the Department of the Treasury--

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

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

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

       (aa) average exports of upland cotton during the preceding 
     six marketing years; or
       (bb) cumulative exports of upland cotton plus outstanding 
     export sales for the marketing year in which the quota is 
     established.
       (iii) Limited global import quota.--The term ``limited 
     global import quota'' means a quantity of imports that is not 
     subject to the over-quota tariff rate of a tariff-rate quota.
       (E) Quota entry period.--When a quota is established under 
     this subsection, cotton may be entered under the quota during 
     the 90-day period beginning on the date the quota is 
     established by the Secretary.
       (2) No overlap.--Notwithstanding paragraph (1), a quota 
     period may not be established that overlaps an existing quota 
     period or a special quota period established under subsection 
     (b).

     SEC. 128. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG 
                   STAPLE COTTON.

       (a) Competitiveness Program.--Notwithstanding any other 
     provision of law, during the period beginning on the date of 
     the enactment of this Act and ending on July 31, 2012, the 
     Secretary shall carry out a program to maintain and expand 
     the domestic use of extra long staple cotton produced in the 
     United States, to increase exports of extra long staple 
     cotton produced in the United States, and to ensure that 
     extra long staple cotton produced in the United States 
     remains competitive in world markets.
       (b) Payments Under Program; Trigger.--Under the program, 
     the Secretary shall make payments available under this 
     section whenever--
       (1) for a consecutive four-week period, the world market 
     price for the lowest priced competing growth of extra long 
     staple cotton (adjusted to United States quality and location 
     and for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is below the 
     prevailing United States price for a competing growth of 
     extra long staple cotton; and
       (2) the lowest priced competing growth of extra long staple 
     cotton (adjusted to United States quality and location and 
     for other factors affecting the competitiveness of such 
     cotton), as determined by the Secretary, is less than 134 
     percent of the loan rate for extra long staple cotton.
       (c) Eligible Recipients.--The Secretary shall make payments 
     available under this section to domestic users of extra long 
     staple cotton produced in the United States and exporters of 
     extra long staple cotton produced in the United States who 
     enter into an agreement with the Commodity Credit Corporation 
     to participate in the program under this section.
       (d) Payment Amount.--Payments under this section shall be 
     based on the amount of the difference in the prices referred 
     to in subsection (b)(1) during the fourth week of the 
     consecutive four-week period multiplied by the amount of 
     documented purchases by domestic users and sales for export 
     by exporters made in the week following such a consecutive 
     four-week period.
       (e) Form of Payment.--Payments under this section shall be 
     made through the issuance of cash or marketing certificates, 
     at the option of eligible recipients of the payments.

     SEC. 129. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE 
                   FEED GRAINS AND SEED COTTON AND OTHER FIBERS.

       (a) High Moisture Feed Grains.--
       (1) Recourse loans available.--For each of the 2002 through 
     2011 crops of corn and grain sorghum, the Secretary shall 
     make available recourse loans, as determined by the 
     Secretary, to producers on a farm who--
       (A) normally harvest all or a portion of their crop of corn 
     or grain sorghum in a high moisture state;
       (B) present--
       (i) certified scale tickets from an inspected, certified 
     commercial scale, including a licensed warehouse, feedlot, 
     feed mill, distillery, or other similar entity approved by 
     the Secretary, pursuant to regulations issued by the 
     Secretary; or
       (ii) field or other physical measurements of the standing 
     or stored crop in regions of the United States, as determined 
     by the Secretary, that do not have certified commercial 
     scales from which certified scale tickets may be obtained 
     within reasonable proximity of harvest operation;
       (C) certify that they were the owners of the feed grain at 
     the time of delivery to, and that the quantity to be placed 
     under loan under this subsection was in fact harvested on the 
     farm and delivered to, a feedlot, feed mill, or commercial or 
     on-farm high-moisture storage facility, or to a facility 
     maintained by the users of corn and grain sorghum in a high 
     moisture state; and
       (D) comply with deadlines established by the Secretary for 
     harvesting the corn or grain sorghum and submit applications 
     for loans under this subsection within deadlines established 
     by the Secretary.
       (2) Eligibility of acquired feed grains.--A loan under this 
     subsection shall be made on a quantity of corn or grain 
     sorghum of the same crop acquired by the producer equivalent 
     to a quantity determined by multiplying--
       (A) the acreage of the corn or grain sorghum in a high 
     moisture state harvested on the producer's farm; by
       (B) the lower of the farm program payment yield or the 
     actual yield on a field, as determined by the Secretary, that 
     is similar to the field from which the corn or grain sorghum 
     was obtained.
       (3) High moisture state defined.--In this subsection, the 
     term ``high moisture state'' means corn or grain sorghum 
     having a moisture content in excess of Commodity Credit 
     Corporation standards for marketing assistance loans made by 
     the Secretary under section 121.
       (b) Recourse Loans Available for Seed Cotton.--For each of 
     the 2002 through 2011 crops of upland cotton and extra long 
     staple cotton, the Secretary shall make available

[[Page 26822]]

     recourse seed cotton loans, as determined by the Secretary, 
     on any production.
       (c) Repayment Rates.--Repayment of a recourse loan made 
     under this section shall be at the loan rate established for 
     the commodity by the Secretary, plus interest (as determined 
     by the Secretary).
       (d) Termination of Superseded Loan Authority.--
     Notwithstanding section 137 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7237), recourse 
     loans shall not be made for the 2002 crop of corn, grain 
     sorghum, and seed cotton under such section.

     SEC. 130. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
                   LOANS FOR WOOL AND MOHAIR.

       (a) Nonrecourse Loans Available.--During the 2002 through 
     2011 marketing years for wool and mohair, the Secretary shall 
     make available to producers on a farm nonrecourse marketing 
     assistance loans for wool and mohair produced on the farm 
     during that marketing year.
       (b) Loan Rate.--The loan rate for a loan under subsection 
     (a) shall be not more than--
       (1) $1.00 per pound for graded wool;
       (2) $0.40 per pound for nongraded wool; and
       (3) $4.20 per pound for mohair.
       (c) Term of Loan.--A loan under subsection (a) shall have a 
     term of 1 year beginning on the first day of the first month 
     after the month in which the loan is made.
       (d) Repayment Rates.--The Secretary shall permit a producer 
     to repay a marketing assistance loan under subsection (a) for 
     wool or mohair at a rate that is the lesser of--
       (1) the loan rate established for the commodity under 
     subsection (b), plus interest (as determined by the 
     Secretary); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of the commodity by 
     the Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing the commodity; and
       (D) allow the commodity produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (e) Loan Deficiency Payments.--
       (1) Availability.--The Secretary may make loan deficiency 
     payments available to producers that, although eligible to 
     obtain a marketing assistance loan under this section, agree 
     to forgo obtaining the loan in return for payments under this 
     subsection.
       (2) Computation.--A loan deficiency payment under this 
     subsection shall be computed by multiplying--
       (A) the loan payment rate in effect under paragraph (3) for 
     the commodity; by
       (B) the quantity of the commodity produced by the eligible 
     producers, excluding any quantity for which the producers 
     obtain a loan under this subsection.
       (3) Loan payment rate.--For purposes of this subsection, 
     the loan payment rate for wool or mohair shall be the amount 
     by which--
       (A) the loan rate in effect for the commodity under 
     subsection (b); exceeds
       (B) the rate at which a loan for the commodity may be 
     repaid under subsection (d).
       (4) Time for payment.--The Secretary shall make a payment 
     under this subsection to a producer with respect to a 
     quantity of a wool or mohair as of the earlier of the 
     following:
       (A) The date on which the producer marketed or otherwise 
     lost beneficial interest in the wool or mohair, as determined 
     by the Secretary.
       (B) The date the producer requests the payment.
       (f) Limitations.--The marketing assistance loan gains and 
     loan deficiency payments that a person may receive for wool 
     and mohair under this section shall be subject to a separate 
     payment limitation, but in the same dollar amount, as the 
     payment limitation that applies to marketing assistance loans 
     and loan deficiency payments received by producers of other 
     agricultural commodities in the same marketing year.

     SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE 
                   LOANS FOR HONEY.

       (a) Nonrecourse Loans Available.--During the 2002 through 
     2011 crop years for honey, the Secretary shall make available 
     to producers on a farm nonrecourse marketing assistance loans 
     for honey produced on the farm during that crop year.
       (b) Loan Rate.--The loan rate for a marketing assistance 
     loan for honey under subsection (a) shall be equal to $0.60 
     cents per pound.
       (c) Term of Loan.--A marketing assistance loan under 
     subsection (a) shall have a term of 1 year beginning on the 
     first day of the first month after the month in which the 
     loan is made.
       (d) Repayment Rates.--The Secretary shall permit a producer 
     to repay a marketing assistance loan for honey under 
     subsection (a) at a rate that is the lesser of--
       (1) the loan rate for honey, plus interest (as determined 
     by the Secretary); or
       (2) the prevailing domestic market price for honey, as 
     determined by the Secretary.
       (e) Loan Deficiency Payments.--
       (1) Availability.--The Secretary may make loan deficiency 
     payments available to any producer of honey that, although 
     eligible to obtain a marketing assistance loan under 
     subsection (a), agrees to forgo obtaining the loan in return 
     for a payment under this subsection.
       (2) Computation.--A loan deficiency payment under this 
     subsection shall be determined by multiplying--
       (A) the loan payment rate determined under paragraph (3); 
     by
       (B) the quantity of honey that the producer is eligible to 
     place under loan, but for which the producer forgoes 
     obtaining the loan in return for a payment under this 
     subsection.
       (3) Loan payment rate.--For the purposes of this 
     subsection, the loan payment rate shall be the amount by 
     which--
       (A) the loan rate established under subsection (b); exceeds
       (B) the rate at which a loan may be repaid under subsection 
     (d).
       (4) Time for payment.--The Secretary shall make a payment 
     under this subsection to a producer with respect to a 
     quantity of a honey as of the earlier of the following:
       (A) The date on which the producer marketed or otherwise 
     lost beneficial interest in the honey, as determined by the 
     Secretary.
       (B) The date the producer requests the payment.
       (f) Limitations.--The marketing assistance loan gains and 
     loan deficiency payments that a person may receive for a crop 
     of honey under this section shall be subject to a separate 
     payment limitation, but in the same dollar amount, as the 
     payment limitation that applies to marketing assistance loans 
     and loan deficiency payments received by producers of other 
     agricultural commodities in the same crop year.
       (g) Prevention of Forfeitures.--The Secretary shall carry 
     out this section in such a manner as to minimize forfeitures 
     of honey marketing assistance loans.

     SEC. 132. PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN 
                   DEFICIENCY PAYMENTS AND MARKETING LOAN GAINS.

       Notwithstanding any other provision of law, the Secretary 
     of Agriculture and the Commodity Credit Corporation shall not 
     require producers in Erie County, Pennsylvania, to repay loan 
     deficiency payments and marketing loan gains erroneously paid 
     or determined to have been earned by the Commodity Credit 
     Corporation for certain 1998 and 1999 crops under subtitle C 
     of title I of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7231 et seq.). In the case of a 
     producer who has already made the repayment on or before the 
     date of the enactment of this Act, the Commodity Credit 
     Corporation shall reimburse the producer for the full amount 
     of the repayment.

     SEC. 133. RESERVE STOCK ADJUSTMENT.

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

                     Subtitle C--Other Commodities

                            CHAPTER 1--DAIRY

     SEC. 141. MILK PRICE SUPPORT PROGRAM.

       (a) Support Activities.--During the period beginning on 
     January 1, 2002, and ending on December 31, 2011, the 
     Secretary of Agriculture shall support the price of milk 
     produced in the 48 contiguous States through the purchase of 
     cheese, butter, and nonfat dry milk produced from the milk.
       (b) Rate.--During the period specified in subsection (a), 
     the price of milk shall be supported at a rate equal to $9.90 
     per hundredweight for milk containing 3.67 percent butterfat.
       (c) Purchase Prices.--The support purchase prices under 
     this section for each of the products of milk (butter, 
     cheese, and nonfat dry milk) announced by the Secretary shall 
     be the same for all of that product sold by persons offering 
     to sell the product to the Secretary. The purchase prices 
     shall be sufficient to enable plants of average efficiency to 
     pay producers, on average, a price that is not less than the 
     rate of price support for milk in effect under subsection 
     (b).
       (d) Special Rule for Butter and Nonfat Dry Milk Purchase 
     Prices.--
       (1) Allocation of purchase prices.--The Secretary may 
     allocate the rate of price support between the purchase 
     prices for nonfat dry milk and butter in a manner that will 
     result in the lowest level of expenditures by the Commodity 
     Credit Corporation or achieve such other objectives as the 
     Secretary considers appropriate. Not later than 10 days after 
     making or changing an allocation, the Secretary shall notify 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate of the allocation. Section 553 of title 5, United 
     States Code, shall not apply with respect to the 
     implementation of this section.
       (2) Timing of purchase price adjustments.--The Secretary 
     may make any such adjustments in the purchase prices for 
     nonfat dry milk and butter the Secretary considers to be 
     necessary not more than twice in each calendar year.
       (e) Commodity Credit Corporation.--The Secretary shall 
     carry out the program authorized by this section through the 
     Commodity Credit Corporation.

[[Page 26823]]



     SEC. 142. REPEAL OF RECOURSE LOAN PROGRAM FOR PROCESSORS.

       Section 142 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7252) is repealed.

     SEC. 143. EXTENSION OF DAIRY EXPORT INCENTIVE AND DAIRY 
                   INDEMNITY PROGRAMS.

       (a) Dairy Export Incentive Program.--Section 153(a) of the 
     Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended 
     by striking ``2002'' and inserting ``2011''.
       (b) Dairy Indemnity Program.--Section 3 of Public Law 90-
     484 (7 U.S.C. 450l) is amended by striking ``1995'' and 
     inserting ``2011''.

     SEC. 144. FLUID MILK PROMOTION.

       (a) Definition of Fluid Milk Product.--Section 1999C of the 
     Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended 
     by striking paragraph (3) and inserting the following new 
     paragraph:
       ``(3) Fluid milk product.--The term `fluid milk product' 
     has the meaning given such term--
       ``(A) in section 1000.15 of title 7, Code of Federal 
     Regulations, subject to such amendments as may be made from 
     time to time; or
       ``(B) in any successor regulation providing a definition of 
     such term that is promulgated pursuant to the Agricultural 
     Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
     amendments by the Agricultural Marketing Agreement Act of 
     1937.''.
       (b) Definition of Fluid Milk Processor.--Section 1999C(4) 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is 
     amended by striking ``500,000'' and inserting ``3,000,000''.
       (c) Elimination of Order Termination Date.--Section 1999O 
     of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is 
     amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) and (c) as subsections 
     (a) and (b), respectively.

     SEC. 145. DAIRY PRODUCT MANDATORY REPORTING.

       Section 273(b)(1)(B) of the Agricultural Marketing Act of 
     1946 (7 U.S.C. 1637b(b)(1)(B)) is amended--
       (1) by inserting ``and substantially identical products 
     designated by the Secretary'' after ``dairy products'' the 
     first place it appears; and
       (2) by inserting ``and such substantially identical 
     products'' after ``dairy products'' the second place it 
     appears.

     SEC. 146. STUDY OF NATIONAL DAIRY POLICY.

       (a) Study Required.--Not later than April 30, 2002, the 
     Secretary of Agriculture shall submit to Congress a 
     comprehensive economic evaluation of the potential direct and 
     indirect effects of the various elements of the national 
     dairy policy, including an examination of the effect of the 
     national dairy policy on--
       (1) farm price stability, farm profitability and viability, 
     and local rural economies in the United States;
       (2) child, senior, and low-income nutrition programs, 
     including impacts on schools and institutions participating 
     in the programs, on program recipients, and other factors; 
     and
       (3) the wholesale and retail cost of fluid milk, dairy 
     farms, and milk utilization.
       (b) National Dairy Policy Defined.--In this section, the 
     term ``national dairy policy'' means the dairy policy of the 
     United States as evidenced by the following policies and 
     programs:
       (1) Federal Milk Marketing Orders.
       (2) Interstate dairy compacts (including proposed compacts 
     described in H.R. 1827 and S. 1157, as introduced in the 
     107th Congress).
       (3) Over-order premiums and State pricing programs.
       (4) Direct payments to milk producers.
       (5) Federal milk price support program.
       (6) Export programs regarding milk and dairy products, such 
     as the Dairy Export Incentive Program.

                            CHAPTER 2--SUGAR

     SEC. 151. SUGAR PROGRAM.

       (a) Continuation of Program.--Subsection (i) of section 156 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7251) is amended--
       (1) by striking ``(other than subsection (f))''; and
       (2) by striking ``2002 crops'' and inserting ``2011 
     crops''.
       (b) Termination of Marketing Assessment and Forfeiture 
     Penalty.--Effective as of October 1, 2001, subsections (f) 
     and (g) of such section are repealed.
       (c) Loan Rate Adjustments.--Subsection (c) of such section 
     is amended--
       (1) by striking ``Reduction in Loan Rates'' and inserting 
     ``Loan Rate Adjustments''; and
       (2) in paragraph (1)--
       (A) by striking ``Reduction required'' and inserting 
     ``Possible reduction''; and
       (B) by striking ``shall'' and inserting ``may''.
       (d) Notification.--Subsection (e) of such section is 
     amended by adding at the end the following new paragraph:
       ``(3) Prevention of onerous notification requirements.--The 
     Secretary may not impose or enforce any prenotification or 
     similar administrative requirement that has the effect of 
     preventing a processor from choosing to forfeit the loan 
     collateral upon the maturity of the loan.''.
       (e) In Process Sugar.--Such section is further amended by 
     inserting after subsection (e) the following new subsection 
     (f):
       ``(f) Loans for In-Process Sugar.--
       ``(1) Availability; rate.--The Secretary shall make 
     nonrecourse loans available to processors of domestically 
     grown sugarcane and sugar beets for in-process sugars and 
     syrups derived from such crops. The loan rate shall be equal 
     to 80 percent of the loan rate applicable to raw cane sugar 
     or refined beet sugar, depending on the source material for 
     the in-process sugars and syrups.
       ``(2) Further processing upon forfeiture.--As a condition 
     on the forfeiture of in-process sugars and syrups serving as 
     collateral for a loan under paragraph (1), the processor 
     shall, within such reasonable time period as the Secretary 
     may prescribe and at no cost to the Commodity Credit 
     Corporation, convert the in-process sugars and syrups into 
     raw cane sugar or refined beet sugar of acceptable grade and 
     quality for sugars eligible for loans under subsection (a) or 
     (b). Once the in-process sugars and syrups are fully 
     processed into raw cane sugar or refined beet sugar, the 
     processor shall transfer the sugar to the Corporation, which 
     shall make a payment to the processor in an amount equal to 
     the difference between the loan rate for raw cane sugar or 
     refined beet sugar, whichever applies, and the loan rate the 
     processor received under paragraph (1).
       ``(3) Loan conversion.--If the processor does not forfeit 
     the collateral as described in paragraph (2), but instead 
     further processes the in-process sugars and syrups into raw 
     cane sugar or refined beet sugar and repays the loan on the 
     in-process sugars and syrups, the processor may then obtain a 
     loan under subsection (a) or (b) on the raw cane sugar or 
     refined beet sugar, as appropriate.
       ``(4) Definition.--In this subsection the term `in-process 
     sugars and syrups' does not include raw sugar, liquid sugar, 
     invert sugar, invert syrup, or other finished products that 
     are otherwise eligible for loans under subsection (a) or 
     (b).''.
       (f) Administration of Program.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(j) Avoiding Forfeitures; Corporation Inventory 
     Disposition.--
       ``(1) No cost.--To the maximum extent practicable, the 
     Secretary shall operate the sugar program established under 
     this section at no cost to the Federal Government by avoiding 
     the forfeiture of sugar to the Commodity Credit Corporation.
       ``(2) Inventory disposition.--In support of the objective 
     specified in paragraph (1), the Commodity Credit Corporation 
     may accept bids for commodities in the inventory of the 
     Corporation from (or otherwise make available such 
     commodities, on appropriate terms and conditions, to) 
     processors of sugarcane and processors of sugar beets (when 
     the processors are acting in conjunction with the producers 
     of the sugarcane or sugar beets processed by such processors) 
     in return for the reduction of production of raw cane sugar 
     or refined beet sugar, as appropriate. The authority provided 
     under this paragraph is in addition to any authority of the 
     Corporation under any other law.''.
       (g) Information Reporting.--Subsection (h) of such section 
     is amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (4) and (5), respectively;
       (2) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) Duty of producers to report.--
       ``(A) Proportionate share states.--The Secretary shall 
     require a producer of sugarcane located in a State (other 
     than Puerto Rico) in which there are in excess of 250 
     sugarcane producers to report, in the manner prescribed by 
     the Secretary, the producer's sugarcane yields and acres 
     planted to sugarcane.
       ``(B) Other states.--The Secretary may require producers of 
     sugarcane or sugar beets not covered by paragraph (1) to 
     report, in the manner prescribed by the Secretary, each 
     producer's sugarcane or sugar beet yields and acres planted 
     to sugarcane or sugar beets, respectively.
       ``(3) Duty of importers to report.--The Secretary shall 
     require an importer of sugars, syrups or molasses to be used 
     for human consumption or to be used for the extraction of 
     sugar for human consumption, except such sugars, syrups, or 
     molasses that are within the quantities of tariff-rate quotas 
     that are at the lower rate of duties, to report, in the 
     manner prescribed by the Secretary, the quantities of such 
     products imported and the sugar content or equivalent of such 
     products.''; and
       (3) in paragraph (5), as so redesignated, by striking 
     ``paragraph (1)'' and inserting ``this subsection''.
       (h) Interest Rate.--Section 163 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended 
     by adding at the end the following new sentence: ``For 
     purposes of this section, raw cane sugar, refined beet sugar, 
     and in process sugar eligible for a loan under section 156 
     shall not be considered an agricultural commodity.''.

     SEC. 152. REAUTHORIZE PROVISIONS OF AGRICULTURAL ADJUSTMENT 
                   ACT OF 1938 REGARDING SUGAR.

       (a) Information Reporting.--Section 359a of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1359aa) is 
     repealed.
       (b) Estimates.--Section 359b of the Agricultural Adjustment 
     Act of 1938 (7 U.S.C. 1359bb) is amended:

[[Page 26824]]

       (1) in the section heading--
       (A) by inserting ``FLEXIBLE'' before ``MARKETING''; and
       (B) by striking ``AND CRYSTALLINE FRUCTOSE'';
       (2) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``Before'' and inserting ``Not later than 
     August 1 before'';
       (ii) by striking ``1992 through 1998'' and inserting ``2002 
     through 2011'';
       (iii) in subparagraph (A), by striking ``(other than 
     sugar'' and all that follows through ``stocks'';
       (iv) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (C) and (E), respectively;
       (v) by inserting after subparagraph (A) the following:
       ``(B) the quantity of sugar that would provide for 
     reasonable carryover stocks;'';
       (vi) in subparagraph (C), as so redesignated--

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

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

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

       (B) by redesignating paragraph (2) as paragraph (3);
       (C) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) Exclusion.--The estimates in this section shall not 
     include sugar imported for the production of polyhydric 
     alcohol or to be refined and re-exported in refined form or 
     in sugar containing products.'';
       (D) in paragraph (3), as so redesignated--
       (i) by striking ``Quarterly reestimates'' and inserting 
     ``Reestimates''; and
       (ii) by inserting ``as necessary, but'' after ``a fiscal 
     year'';
       (3) in subsection (b)--
       (A) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) In general.--By the beginning of each fiscal year, 
     the Secretary shall establish for that fiscal year 
     appropriate allotments under section 359c for the marketing 
     by processors of sugar processed from sugar beets and from 
     domestically-produced sugarcane at a level that the Secretary 
     estimates will result in no forfeitures of sugar to the 
     Commodity Credit Corporation under the loan program for 
     sugar.''; and
       (B) in paragraph (2), by striking ``or crystalline 
     fructose'';
       (4) by striking subsection (c);
       (5) by redesignating subsection (d) as subsection (c); and
       (6) in subsection (c), as so redesignated--
       (A) by striking paragraph (2);
       (B) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (C) in paragraph (2), as so redesignated--
       (i) by striking ``or manufacturer'' and all that follows 
     through ``(2)''; and
       (ii) by striking ``or crystalline fructose''.
       (c) Establishment.--Section 359c of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359cc) is amended--
       (1) in the section heading by inserting ``FLEXIBLE'' after 
     ``OF'';
       (2) in subsection (a), by inserting ``flexible'' after 
     ``establish'';
       (3) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``1,250,000'' and 
     inserting ``1,532,000''; and
       (B) in paragraph (2), by striking ``to the maximum extent 
     practicable'';
       (4) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) Marketing Allotment for Sugar Derived From Sugar 
     Beets and Marketing Allotment for Sugar Derived From 
     Sugarcane.--The overall allotment quantity for the fiscal 
     year shall be allotted among--
       ``(1) sugar derived from sugar beets by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by the percentage of 54.35; and
       ``(2) sugar derived from sugarcane by establishing a 
     marketing allotment for a fiscal year at a quantity equal to 
     the product of multiplying the overall allotment quantity for 
     the fiscal year by the percentage of 45.65.'';
       (5) by amending subsection (d) to read as follows:
       ``(d) Filling Cane Sugar and Beet Sugar Allotments.--Each 
     marketing allotment for cane sugar established under this 
     section may only be filled with sugar processed from 
     domestically grown sugarcane, and each marketing allotment 
     for beet sugar established under this section may only be 
     filled with sugar domestically processed from sugar beets.'';
       (6) by striking subsection (e);
       (7) by redesignating subsection (f) as subsection (e);
       (8) in subsection (e), as so redesignated--
       (A) by inserting ``(1) In general.--'' before ``The 
     allotment for sugar'' and indenting such paragraph 
     appropriately;
       (B) in such paragraph (1)--
       (i) by striking ``the 5'' and inserting ``the'';
       (ii) by inserting after ``sugarcane is produced,'' the 
     following: ``after a hearing, if requested by the affected 
     sugar cane processors and growers, and on such notice as the 
     Secretary by regulation may prescribe,'';
       (iii) by striking ``on the basis of past marketings'' and 
     all that follows through ``allotments'', and inserting ``as 
     provided in this subsection and section 359d(a)(2)(A)(iv)''; 
     and
       (C) by inserting after paragraph (1) the following new 
     paragraphs:
       ``(2) Offshore allotment.--
       ``(A) Collectively.--Prior to the allotment of sugar 
     derived from sugarcane to any other State, 325,000 short 
     tons, raw value shall be allotted to the offshore States.
       ``(B) Individually.--The collective offshore State 
     allotment provided for under subparagraph (A) shall be 
     further allotted among the offshore States in which sugarcane 
     is produced, after a hearing if requested by the affected 
     sugar cane processors and growers, and on such notice as the 
     Secretary by regulation may prescribe, in a fair and 
     equitable manner on the basis of--
       ``(i) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(ii) the ability of processors to market the sugar 
     covered under the allotments for the crop year; and
       ``(iii) past processings of sugar from sugarcane based on 
     the 3 year average of the crop years 1998 through 2000.
       ``(3) Mainland allotment.--The allotment for sugar derived 
     from sugarcane, less the amount provided for under paragraph 
     (2), shall be allotted among the mainland States in the 
     United States in which sugarcane is produced, after a hearing 
     if requested by the affected sugar cane processors and 
     growers, and on such notice as the Secretary by regulation 
     may prescribe, in a fair and equitable manner on the basis 
     of--
       ``(A) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from the 1996 
     through 2000 crops;
       ``(B) the ability of processors to market the sugar covered 
     under the allotments for the crop year; and
       ``(C) past processings of sugar from sugarcane, based on 
     the 3 crop years with the greatest processings (in the 
     mainland States collectively) during the 1991 through 2000 
     crop years.'';
       (9) by inserting after subsection (e), as so redesignated, 
     the following new subsection (f):
       ``(f) Filling Cane Sugar Allotments.--Except as otherwise 
     provided in section 359e, a State cane sugar allotment 
     established under subsection (e) for a fiscal year may be 
     filled only with sugar processed from sugarcane grown in the 
     State covered by the allotment.'';
       (10) in subsection (g)--
       (A) in paragraph (1), by striking ``359b(a)(2)--'' and all 
     that follows through the comma at the end of subparagraph (C) 
     and inserting ``359b(a)(3), adjust upward or downward 
     marketing allotments in a fair and equitable manner'';
       (B) in paragraph (2) by striking ``359f(b)'' and inserting 
     ``359f(c)''; and
       (C) in paragraph (3)--
       (i) by striking ``Reductions'' and inserting ``Carry-over 
     of reductions'';
       (ii) by inserting after ``this subsection, if'' the 
     following: ``at the time of the reduction'';
       (iii) by striking ``price support'' and inserting 
     ``nonrecourse'';
       (iv) by striking ``206'' and all that follows through ``the 
     allotment'' and inserting ``156 of the Agricultural Market 
     Transition Act (7 U.S.C. 7272),''; and
       (v) by striking ``, if any,''; and
       (11) by amending subsection (h) to read as follows:
       ``(h) Suspension of Allotments.--Whenever the Secretary 
     estimates, or reestimates, under section 359b(a), or has 
     reason to believe that imports of sugars, syrups or molasses 
     for human consumption or to be used for the extraction of 
     sugar for human consumption, whether under a tariff-rate 
     quota or in excess or outside of a tariff-rate quota, will 
     exceed 1.532 million short tons, raw value equivalent, and 
     that such imports would lead to a reduction of the overall 
     allotment quantity, the Secretary shall suspend the marketing 
     allotments until such time as such imports have been 
     restricted, eliminated, or otherwise reduced to or below the 
     level of 1.532 million tons.''.
       (d) Allocation.--Section 359d of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359dd) is amended--
       (1) in subsection (a)(2)(A)--
       (A) by inserting ``(i) In general.--'' before ``The 
     Secretary shall'' and indenting such clause appropriately;

[[Page 26825]]

       (B) in clause (i), as so designated--
       (i) by striking ``interested parties'' and inserting ``the 
     affected sugar cane processors and growers'';
       (ii) by striking ``by taking'' and all that follows through 
     ``allotment allocated.'' and inserting ``with this 
     subparagraph.''; and
       (iii) by inserting at the end the following new sentence: 
     ``Each such allocation shall be subject to adjustment under 
     section 359c(g).'';
       (C) by inserting after clause (i) the following new 
     clauses:
       ``(ii) Multiple processor states.--Except as provided in 
     clause (iii), the Secretary shall allocate the allotment for 
     cane sugar among multiple cane sugar processors in a single 
     State based upon--

       ``(I) past marketings of sugar, based on the average of the 
     2 highest years of production of raw cane sugar from among 
     the 1996 through 2000 crops;
       ``(II) the ability of processors to market sugar covered by 
     that portion of the allotment allocated for the crop year;
       ``(III) past processings of sugar from sugarcane, based on 
     the average of the 3 highest years from among crop years 1996 
     through 2000; and
       ``(IV) however, only with respect to allotments under 
     subclauses (I), (II), and (III) attributable to the former 
     operations of the Talisman processing facility, shall be 
     allocated among processors in the State coincident with the 
     provisions of the agreements of March 25 and March 26, 1999, 
     between the affected processors and the Department of the 
     Interior.

       ``(iii) Proportionate share states.--In the case of States 
     subject to section 359f(c), the Secretary shall allocate the 
     allotment for cane sugar among multiple cane sugar processors 
     in a single state based upon--

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

       ``(iv) New entrants.--Notwithstanding clauses (ii) and 
     (iii), the Secretary, on application of any processor that 
     begins processing sugarcane on or after the date of enactment 
     of this clause, and after a hearing if requested by the 
     affected sugarcane processors and growers, and on such notice 
     as the Secretary by regulation may prescribe, may provide 
     such processor with an allocation which provides a fair, 
     efficient and equitable distribution of the allocations from 
     the allotment for the State in which the processor is located 
     and, in the case of proportionate share States, shall 
     establish proportionate shares in an amount sufficient to 
     produce the sugarcane required to satisfy such allocations. 
     However, the allotment for a new processor under this clause 
     shall not exceed 50,000 short tons, raw value.
       ``(v) Transfer of ownership.--Except as otherwise provided 
     in section 359f(c)(8), in the event that a sugarcane 
     processor is sold or otherwise transferred to another owner, 
     or closed as part of an affiliated corporate group processing 
     consolidation, the Secretary shall transfer the allotment 
     allocation for the processor to the purchaser, new owner, or 
     successor in interest, as applicable, of the processor.''; 
     and
       (2) in subsection (a)(2)(B)--
       (A) by striking ``interested parties'' and inserting ``the 
     affected sugar beet processors and growers''; and
       (B) by striking ``processing capacity'' and all that 
     follows through ``allotment allocated'' and inserting the 
     following: ``the marketings of sugar processed from sugar 
     beets of any or all of the 1996 through 2000 crops, and such 
     other factors as the Secretary may deem appropriate after 
     consultation with the affected sugar beet processors and 
     growers. However, in the case of any processor which has 
     started processing sugar beets after January 1, 1996, the 
     Secretary shall provide such processor with an allocation 
     which provides a fair, efficient and equitable distribution 
     of the allocations''.
       (e) Reassignment.--Section 359e(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ee(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B) by striking the ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) if after the reassignments, the deficit cannot be 
     completely eliminated, the Secretary shall reassign the 
     estimated quantity of the deficit to the sale of any 
     inventories of sugar held by the Commodity Credit 
     Corporation; and''; and
       (D) in subparagraph (D), as so redesignated, by inserting 
     ``and sales'' after ``reassignments''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A) by striking the ``and'' after the 
     semicolon;
       (B) in subparagraph (B), by striking ``reassign the 
     remainder to imports.'' and inserting ``use the estimated 
     quantity of the deficit for the sale of any inventories of 
     sugar held by the Commodity Credit Corporation; and''; and
       (C) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) if after such reassignments and sales, the deficit 
     cannot be completely eliminated, the Secretary shall reassign 
     the remainder to imports.''.
       (f) Producer Provisions.--Section 359f of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1359ff) is amended--
       (1) in subsection (a)--
       (A) by striking ``processor's allocation'' in the second 
     sentence and inserting ``allocation to the processor''; and
       (B) by inserting after ``request of either party'' the 
     following: ``, and such arbitration should be completed 
     within 45 days, but not more than 60 days, of the request'';
       (2) by redesignating subsection (b) as subsection (c);
       (3) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Sugar Beet Processing Facility Closures.-- In the 
     event that a sugar beet processing facility is closed and the 
     sugar beet growers who previously delivered beets to such 
     facility desire to deliver their beets to another processing 
     company:
       ``(1) Such growers may petition the Secretary to modify 
     existing allocations to accommodate such a transition; and
       ``(2) The Secretary may increase the allocation to the 
     processing company to which the growers desire to deliver 
     their sugar beets, and which the processing company agrees to 
     accept, not to exceed its processing capacity, to accommodate 
     the change in deliveries.
       ``(3) Such increased allocation shall be deducted from the 
     allocation to the company that owned the processing facility 
     that has been closed and the remaining allocation will be 
     unaffected.
       ``(4) The Secretary's determination on the issues raised by 
     the petition shall be made within 60 days of the filing of 
     the petition.'';
       (4) in subsection (c), as so redesignated--
       (A) in paragraph (3)(A), by striking ``the preceding five 
     years'' and inserting ``the two highest years from among the 
     years 1999, 2000, and 2001'';
       (B) in paragraph (4)(A), by striking ``each'' and all that 
     follows through ``in effect'' and inserting ``the two highest 
     of the three (3) crop years 1999, 2000, and 2001''; and
       (C) by inserting after paragraph (7) the following new 
     paragraph:
       ``(8) Processing facility closures.--In the event that a 
     sugarcane processing facility subject to this subsection is 
     closed and the sugarcane growers who previously delivered 
     sugarcane to such facility desire to deliver their sugarcane 
     to another processing company--
       ``(A) such growers may petition the Secretary to modify 
     existing allocations to accommodate such a transition;
       ``(B) the Secretary may increase the allocation to the 
     processing company to which the growers desire to deliver the 
     sugarcane, and which the processing company agrees to accept, 
     not to exceed its processing capacity, to accommodate the 
     change in deliveries;
       ``(C) such increased allocation shall be deducted from the 
     allocation to the company that owned the processing facility 
     that has been closed and the remaining allocation will be 
     unaffected; and
       ``(D) the Secretary's determination on the issues raised by 
     the petition shall be made within 60 days of the filing of 
     the petition.''.
       (g) Conforming Amendments.--(1) The heading of part VII of 
     subtitle B of Title III of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 359aa et seq.) is amended to read as follows:

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

       (2) Section 359g of the Agricultural Adjustment Act of 1938 
     (7 U.S.C. 1359gg) is amended--
       (A) by striking ``359f'' each place it appears and 
     inserting ``359f(c)'';
       (B) in subsection (b), by striking ``3 consecutive'' and 
     inserting ``5 consecutive''; and
       (C) in subsection (c), by inserting ``or adjusted'' after 
     ``share established''.
       (3) Section 359j(c) of the Agricultural Adjustment Act of 
     1938 (7 U.S.C. 1359jj) is amended--
       (A) by amending the subsection heading to read as follows: 
     ``Definitions.--'';
       (B) by striking ``Notwithstanding'' and inserting the 
     following:
       ``(1) United states and state.--Notwithstanding''; and
       (C) by inserting after such paragraph (1) the following new 
     paragraph:
       ``(2) Offshore states.--For purposes of this part, the term 
     `offshore States' means the sugarcane producing States 
     located outside of the continental United States.''.
       (h) Lifting of Suspension.--Section 171(a)(1)(E) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7301(a)(1)(E)) is amended by inserting before the 
     period at the end the following: ``, but only with respect to 
     sugar marketings through fiscal year 2002''.

     SEC. 153. STORAGE FACILITY LOANS.

       (a) Storage Facility Loan Program.--Notwithstanding any 
     other provision of law and as soon as practicable after the 
     date of the enactment of this section, the Commodity Credit 
     Corporation shall amend part

[[Page 26826]]

     1436 of title 7, Code of Federal Regulations, to establish a 
     sugar storage facility loan program to provide financing for 
     processors of domestically-produced sugarcane and sugar beets 
     to build or upgrade storage and handling facilities for raw 
     sugars and refined sugars.
       (b) Eligible Processors.--Storage facility loans shall be 
     made available to any processor of domestically produced 
     sugarcane or sugar beets that has a satisfactory credit 
     history, determines a need for increased storage capacity 
     (taking into account the effects of marketing allotments), 
     and demonstrates an ability to repay the loan.
       (c) Term of Loans.--Storage facility loans shall be for a 
     minimum of seven years, and shall be in such amounts and on 
     such terms and conditions (including down payment, security 
     requirements, and eligible equipment) as are normal, 
     customary, and appropriate for the size and commercial nature 
     of the borrower.
       (d) Administration.--The sugar storage facility loan 
     program shall be administered using the services, facilities, 
     funds, and authorities of the Commodity Credit Corporation.

                           CHAPTER 3--PEANUTS

     SEC. 161. DEFINITIONS.

       In this chapter:
       (1) Counter-cyclical payment.--The term ``counter-cyclical 
     payment'' means a payment made to peanut producers under 
     section 164.
       (2) Effective price.--The term ``effective price'' means 
     the price calculated by the Secretary under section 164 for 
     peanuts to determine whether counter-cyclical payments are 
     required to be made under such section for a crop year.
       (3) Historic peanut producer.--The term ``historic peanut 
     producer'' means a peanut producer on a farm in the United 
     States that produced or attempted to produce peanuts during 
     any or all of crop years 1998, 1999, 2000, and 2001.
       (4) Fixed, decoupled payment.--The term ``fixed, decoupled 
     payment'' means a payment made to peanut producers under 
     section 163.
       (5) Payment acres.--The term ``payment acres'' means 85 
     percent of the peanut acres on a farm, as established under 
     section 162, upon which fixed, decoupled payments and 
     counter-cyclical payments are to be made.
       (6) Peanut acres.--The term ``peanut acres'' means the 
     number of acres assigned to a particular farm by historic 
     peanut producers pursuant to section 162(b).
       (7) Payment yield.--The term ``payment yield'' means the 
     yield assigned to a particular farm by historic peanut 
     producers pursuant to section 162(b).
       (8) Peanut producer.--The term ``peanut producer'' means an 
     owner, operator, landlord, tenant, or sharecropper who shares 
     in the risk of producing a crop of peanuts in the United 
     States and who is entitled to share in the crop available for 
     marketing from the farm, or would have shared had the crop 
     been produced.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (10) State.--The term ``State'' means each of the several 
     States of the United States, the District of Columbia, the 
     Commonwealth of Puerto Rico, and any other territory or 
     possession of the United States.
       (11) Target price.--The term ``target price'' means the 
     price per ton of peanuts used to determine the payment rate 
     for counter-cyclical payments.
       (12) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 162. ESTABLISHMENT OF PAYMENT YIELD, PEANUT ACRES, AND 
                   PAYMENT ACRES FOR A FARM.

       (a) Establishment of Payment Yield and Payment Acres.--
       (1) Determination of average yield.--
       (A) In general.--The Secretary shall determine, for each 
     historic peanut producer, the average yield for peanuts on 
     each farm on which the historic peanut producer produced 
     peanuts for the 1998 through 2001 crop years, excluding any 
     crop year in which the producer did not produce peanuts. If, 
     for any of these four crop years in which peanuts were 
     planted on a farm by the producer, the farm would have 
     satisfied the eligibility criteria established to carry out 
     section 1102 of the Agriculture, Rural Development, Food and 
     Drug Administration, and Related Agencies Appropriations Act, 
     1999 (7 U.S.C. 1421 note; Public Law 105-277), the Secretary 
     shall assign a yield for the producer for that year equal to 
     65 percent of the county yield, as determined by the 
     Secretary.
       (B) Selection by producer.--If a county in which a 
     historical peanut producer described in subparagraph (A) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in subparagraph (A), for the purposes of 
     determining the 4-year average yield for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       (i) the State 4-year average yield of peanuts produced in 
     the State; or
       (ii) the average yield for the historical peanut producer 
     determined by the Secretary under subparagraph (A).
       (2) Acreage average.--Except as provided in paragraph (3), 
     the Secretary shall determine, for the historical peanut 
     producer, the 4-year average of--
       (A) acreage planted to peanuts on all farms for harvest 
     during the 1998 through 2001 crop years; and
       (B) any acreage that was prevented from being planting to 
     peanuts during the crop years because of drought, flood, or 
     other natural disaster, or other condition beyond the control 
     of the historical peanut producer, as determined by the 
     Secretary.
       (3) Selection by producer.--If a county in which a 
     historical peanut producer described in paragraph (2) is 
     located is declared a disaster area during 1 or more of the 4 
     crop years described in paragraph (2), for the purposes of 
     determining the 4-year average acreage for the historical 
     peanut producer, the historical peanut producer may elect to 
     substitute, for not more than 1 of the crop years during 
     which a disaster is declared--
       (A) the State average of acreage actually planted to 
     peanuts; or
       (B) the average of acreage for the historical peanut 
     producer determined by the Secretary under paragraph (2).
       (4) Time for determinations; factors.--
       (A) Timing.--The Secretary shall make the determinations 
     required by this subsection not later than 90 days after the 
     date of enactment of this section.
       (B) Factors.--In making the determinations, the Secretary 
     shall take into account changes in the number and identity of 
     historical peanut producers sharing in the risk of producing 
     a peanut crop since the 1998 crop year, including providing a 
     method for the assignment of average acres and average yield 
     to a farm when a historical peanut producer is no longer 
     living or an entity composed of historical peanut producers 
     has been dissolved.
       (b) Assignment of Yield and Acres to Farms.--
       (1) Assignment by historical peanut producers.--For each of 
     the 2002 and 2003 crop years, the Secretary shall provide 
     each historical peanut producer with an opportunity to assign 
     the average peanut yield and average acreage determined under 
     subsection (a) for the historical peanut producer to cropland 
     on a farm.
       (2) Payment yield.--The average of all of the yields 
     assigned by historical peanut producers to a farm shall be 
     considered to be the payment yield for the farm for the 
     purpose of making direct payments and counter-cyclical 
     payments under this chapter.
       (3) Peanut acres.--Subject to subsection (e), the total 
     number of acres assigned by historical peanut producers to a 
     farm shall be considered to be the peanut acres for the farm 
     for the purpose of making direct payments and counter-
     cyclical payments under this chapter.
       (c) Election.--Not later than 180 days after the date of 
     enactment of this section for the 2002 crop, and not later 
     than 180 days after January 1, 2003, for the 2003 crop, a 
     historical peanut producer shall notify the Secretary of the 
     assignments described in subsection (b).
       (d) Payment Acres.--The payment acres for peanuts on a farm 
     shall be equal to 85 percent of the peanut acres assigned to 
     the farm.
       (e) Prevention of Excess Peanut Acres.--
       (1) Required reduction.--If the total of the peanut acres 
     for a farm, together with the acreage described in paragraph 
     (3), exceeds the actual cropland acreage of the farm, the 
     Secretary shall reduce the quantity of peanut acres for the 
     farm or contract acreage for 1 or more covered commodities 
     for the farm as necessary so that the total of the peanut 
     acres and acreage described in paragraph (3) does not exceed 
     the actual cropland acreage of the farm.
       (2) Selection of acres.--The Secretary shall give the 
     peanut producers on the farm the opportunity to select the 
     peanut acres or contract acreage against which the reduction 
     will be made.
       (3) Other acreage.--For the purposes of paragraph (1), the 
     Secretary shall include--
       (A) any contract acreage for the farm under subtitle B;
       (B) any acreage on the farm enrolled in the conservation 
     reserve program or wetlands reserve program under chapter 1 
     of subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830 et seq.); and
       (C) any other acreage on the farm enrolled in a 
     conservation program for which payments are made in exchange 
     for not producing an agricultural commodity on the acreage.
       (3) Double-cropped acreage.--In applying paragraph (1), the 
     Secretary shall take into account additional acreage as a 
     result of an established double-cropping history on a farm, 
     as determined by the Secretary.

     SEC. 163. DIRECT PAYMENTS FOR PEANUTS.

       (a) In General.--For each of the 2002 through 2006 fiscal 
     years, the Secretary shall make direct payments to peanut 
     producers on a farm with peanut acres under section 158B and 
     a payment yield for peanuts under section 164.
       (b) Payment Rate.--The payment rate used to make direct 
     payments with respect to peanuts for a fiscal year shall be 
     equal to $0.018 per pound.

[[Page 26827]]

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

     SEC. 164. COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

       (a) In General.--For each of the 2002 through 2006 crops of 
     peanuts, the Secretary shall make counter-cyclical payments 
     with respect to peanuts if the Secretary determines that the 
     effective price for peanuts is less than the income 
     protection price for peanuts.
       (b) Effective Price.--For the purposes of subsection (a), 
     the effective price for peanuts is equal to the total of--
       (1) the greater of--
       (A) the national average market price received by peanut 
     producers during the marketing season for peanuts, as 
     determined by the Secretary; or
       (B) the national average loan rate for a marketing 
     assistance loan for peanuts under section 167 in effect for 
     the marketing season for peanuts under this chapter; and
       (2) the payment rate in effect for peanuts under section 
     165 for the purpose of making direct payments with respect to 
     peanuts.
       (c) Income Protection Price.--For the purposes of 
     subsection (a), the income protection price for peanuts shall 
     be equal to $550 per ton.
       (d) Payment Amount.--The amount of the counter-cyclical 
     payment to be paid to the peanut producers on a farm for a 
     crop year shall be equal to the product obtained by 
     multiplying--
       (1) the payment rate specified in subsection (e);
       (2) the payment acres on the farm; by
       (3) the payment yield for the farm.
       (e) Payment Rate.--The payment rate used to make counter-
     cyclical payments with respect to peanuts for a crop year 
     shall be equal to the difference between--
       (1) the income protection price for peanuts; and
       (2) the effective price determined under subsection (b) for 
     peanuts.
       (f) Time for Payments.--
       (1) In general.--The Secretary shall make counter-cyclical 
     payments to peanut producers on a farm under this section for 
     a crop of peanuts as soon as practicable after determining 
     under subsection (a) that the payments are required for the 
     crop year.
       (2) Partial payment.--
       (A) In general.--At the option of the Secretary, the peanut 
     producers on a farm may elect to receive up to 40 percent of 
     the projected counter-cyclical payment to be made under this 
     section for a crop of peanuts on completion of the first 2 
     months of the marketing season for the crop, as determined by 
     the Secretary.
       (B) Repayment.--The peanut producers on a farm shall repay 
     to the Secretary the amount, if any, by which the payment 
     received by producers on the farm (including any partial 
     payments) exceeds the counter-cyclical payment the producers 
     on the farm are eligible for under this section.

     SEC. 165. PRODUCER AGREEMENTS.

       (a) Compliance With Certain Requirements.--
       (1) Requirements.--Before the peanut producers on a farm 
     may receive direct payments or counter-cyclical payments with 
     respect to the farm, the peanut producers on the farm shall 
     agree during the fiscal year or crop year, respectively, for 
     which the payments are received, in exchange for the 
     payments--
       (A) to comply with applicable highly erodible land 
     conservation requirements under subtitle B of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3811 et seq.);
       (B) to comply with applicable wetland conservation 
     requirements under subtitle C of title XII of that Act (16 
     U.S.C. 3821 et seq.);
       (C) to comply with the planting flexibility requirements of 
     section 166; and
       (D) to use a quantity of the land on the farm equal to the 
     peanut acres, for an agricultural or conserving use, and not 
     for a nonagricultural commercial or industrial use, as 
     determined by the Secretary.
       (2) Compliance.--The Secretary may promulgate such 
     regulations as the Secretary considers necessary to ensure 
     peanut producer compliance with paragraph (1).
       (b) Foreclosure.--
       (1) In general.--The Secretary shall not require the peanut 
     producers on a farm to repay a direct payment or counter-
     cyclical payment if a foreclosure has occurred with respect 
     to the farm and the Secretary determines that forgiving the 
     repayment is appropriate to provide fair and equitable 
     treatment.
       (2) Compliance with requirements.--
       (A) In general.--This subsection shall not void the 
     responsibilities of the peanut producers on a farm under 
     subsection (a) if the peanut producers on the farm continue 
     or resume operation, or control, of the farm.
       (B) Applicable requirements.--On the resumption of 
     operation or control over the farm by the peanut producers on 
     the farm, the requirements of subsection (a) in effect on the 
     date of the foreclosure shall apply.
       (c) Transfer or Change of Interest in Farm.--
       (1) Termination.--Except as provided in paragraph (5), a 
     transfer of (or change in) the interest of the peanut 
     producers on a farm in peanut acres for which direct payments 
     or counter-cyclical payments are made shall result in the 
     termination of the payments with respect to the peanut acres, 
     unless the transferee or owner of the acreage agrees to 
     assume all obligations under subsection (a).
       (2) Effective date.--The termination takes effect on the 
     date of the transfer or change.
       (3) Transfer of payment base and yield.--The Secretary 
     shall not impose any restriction on the transfer of the 
     peanut acres or payment yield of a farm as part of a transfer 
     or change described in paragraph (1).
       (4) Modification.--At the request of the transferee or 
     owner, the Secretary may modify the requirements of 
     subsection (a) if the modifications are consistent with the 
     purposes of subsection (a), as determined by the Secretary.
       (5) Exception.--If a peanut producer entitled to a direct 
     payment or counter-cyclical payment dies, becomes 
     incompetent, or is otherwise unable to receive the payment, 
     the Secretary shall make the payment, in accordance with 
     regulations promulgated by the Secretary.
       (d) Acreage Reports.--As a condition on the receipt of any 
     benefits under this chapter, the Secretary shall require the 
     peanut producers on a farm to submit to the Secretary acreage 
     reports for the farm.
       (e) Tenants and Sharecroppers.--In carrying out this 
     chapter, the Secretary shall provide adequate safeguards to 
     protect the interests of tenants and sharecroppers.
       (f) Sharing of Payments.--The Secretary shall provide for 
     the sharing of direct payments and counter-cyclical payments 
     among the peanut producers on a farm on a fair and equitable 
     basis.

     SEC. 166. PLANTING FLEXIBILITY.

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

[[Page 26828]]



     SEC. 167. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY 
                   PAYMENTS FOR PEANUTS.

       (a) Nonrecourse Loans Available.--
       (1) Availability.--For each of the 2002 through 2006 crops 
     of peanuts, the Secretary shall make available to peanut 
     producers on a farm nonrecourse marketing assistance loans 
     for peanuts produced on the farm.
       (2) Terms and conditions.--The loans shall be made under 
     terms and conditions that are prescribed by the Secretary and 
     at the loan rate established under subsection (b).
       (3) Eligible production.--The producers on a farm shall be 
     eligible for a marketing assistance loan under this section 
     for any quantity of peanuts produced on the farm.
       (4) Treatment of certain commingled commodities.--In 
     carrying out this section, the Secretary shall make loans to 
     peanut producers on a farm that would be eligible to obtain a 
     marketing assistance loan but for the fact the peanuts owned 
     by the peanut producers on the farm are commingled with other 
     peanuts of other producers in facilities unlicensed for the 
     storage of agricultural commodities by the Secretary or a 
     State licensing authority, if the peanut producers on a farm 
     obtaining the loan agree to immediately redeem the loan 
     collateral in accordance with section 165.
       (5) Options for obtaining loan.--A marketing assistance 
     loan under this subsection, and loan deficiency payments 
     under subsection (e), may be obtained at the option of the 
     peanut producers on a farm through--
       (A) a designated marketing association of peanut producers 
     that is approved by the Secretary, which may own or construct 
     necessary storage facilities;
       (B) the Farm Service Agency; or
       (C) a loan servicing agent approved by the Secretary.
       (b) Loan Rate.--The loan rate for a marketing assistance 
     loan for peanuts under subsection (a) shall be equal to $400 
     per ton.
       (c) Term of Loan.--
       (1) In general.--A marketing assistance loan for peanuts 
     under subsection (a) shall have a term of 9 months beginning 
     on the first day of the first month after the month in which 
     the loan is made.
       (2) Extensions prohibited.--The Secretary may not extend 
     the term of a marketing assistance loan for peanuts under 
     subsection (a).
       (d) Repayment Rate.--The Secretary shall permit peanut 
     producers on a farm to repay a marketing assistance loan for 
     peanuts under subsection (a) at a rate that is the lesser 
     of--
       (1) the loan rate established for peanuts under subsection 
     (b), plus interest (as determined by the Secretary); or
       (2) a rate that the Secretary determines will--
       (A) minimize potential loan forfeitures;
       (B) minimize the accumulation of stocks of peanuts by the 
     Federal Government;
       (C) minimize the cost incurred by the Federal Government in 
     storing peanuts; and
       (D) allow peanuts produced in the United States to be 
     marketed freely and competitively, both domestically and 
     internationally.
       (e) Loan Deficiency Payments.--
       (1) Availability.--The Secretary may make loan deficiency 
     payments available to the peanut producers on a farm that, 
     although eligible to obtain a marketing assistance loan for 
     peanuts under subsection (a), agree to forgo obtaining the 
     loan for the peanuts in return for payments under this 
     subsection.
       (2) Amount.--A loan deficiency payment under this 
     subsection shall be obtained by multiplying--
       (A) the loan payment rate determined under paragraph (3) 
     for peanuts; by
       (B) the quantity of the peanuts produced by the peanut 
     producers on the farm, excluding any quantity for which the 
     producers on the farm obtain a loan under subsection (a).
       (3) Loan payment rate.--For the purposes of this 
     subsection, the loan payment rate shall be the amount by 
     which--
       (A) the loan rate established under subsection (b); exceeds
       (B) the rate at which a loan may be repaid under subsection 
     (d).
       (4) Time for payment.--The Secretary shall make a payment 
     under this subsection to the peanut producers on a farm with 
     respect to a quantity of peanuts as of the earlier of--
       (A) the date on which the peanut producers on the farm 
     marketed or otherwise lost beneficial interest in the 
     peanuts, as determined by the Secretary; or
       (B) the date the peanut producers on the farm request the 
     payment.
       (f) Compliance With Conservation Requirements.--As a 
     condition of the receipt of a marketing assistance loan under 
     subsection (a), the peanut producers on a farm shall comply 
     during the term of the loan with--
       (1) applicable highly erodible land conservation 
     requirements under subtitle B of title XII of the Food 
     Security Act of 1985 (16 U.S.C. 3811 et seq.); and
       (2) applicable wetland conservation requirements under 
     subtitle C of title XII of that Act (16 U.S.C. 3821 et seq.).
       (g) Reimbursable Agreements and Payment of Expenses.--To 
     the maximum extent practicable, the Secretary shall implement 
     any reimbursable agreements or provide for the payment of 
     expenses under this chapter in a manner that is consistent 
     with the implementation of the agreements or payment of the 
     expenses for other commodities.

     SEC. 168. QUALITY IMPROVEMENT.

       (a) Official Inspection.--All peanuts placed under a 
     marketing assistance loan under section 167 or otherwise sold 
     or marketed shall be officially inspected and graded by a 
     Federal or State inspector.
       (b) Effective Date.--This section shall take effect with 
     the 2002 crop of peanuts.

     SEC. 169. PAYMENT LIMITATIONS.

       For purposes of sections 1001 through 1001C of the Food 
     Security Act of 1985 (7 U.S.C. 1308 through 1308-3), separate 
     payment limitations shall apply to peanuts with respect to--
       (1) fixed, decoupled payments;
       (2) counter-cyclical payments, and
       (3) limitations on marketing loan gains and loan deficiency 
     payments.

     SEC. 170. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS 
                   AND COMPENSATION TO PEANUT QUOTA HOLDERS FOR 
                   LOSS OF QUOTA ASSET VALUE.

       (a) Repeal of Marketing Quota.--
       (1) Repeal.--Part VI of subtitle B of title III of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-1359a), 
     relating to peanuts, is repealed.
       (2) Treatment of 2001 crop.--Part VI of subtitle B of title 
     III of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1357-1359a), as in effect on the day before the date of the 
     enactment of this Act, shall continue to apply with respect 
     to the 2001 crop of peanuts notwithstanding the amendment 
     made by paragraph (1).
       (b) Compensation Contract Required.--The Secretary shall 
     offer to enter into a contract with eligible peanut quota 
     holders for the purpose of providing compensation for the 
     lost value of the quota on account of the repeal of the 
     marketing quota program for peanuts under subsection (a). 
     Under the contracts, the Secretary shall make payments to 
     eligible peanut quota holders during fiscal years 2002 
     through 2006.
       (c) Time for Payment.--The payments required under the 
     contracts shall be provided in five equal installments not 
     later than September 30 of each of fiscal years 2002 through 
     2006.
       (d) Payment Amount.--The amount of the payment for a fiscal 
     year to a peanut quota holder under a contract shall be equal 
     to the product obtained by multiplying--
       (1) $0.10 per pound; by
       (2) the actual farm poundage quota (excluding seed and 
     experimental peanuts) established for the peanut quota 
     holder's farm under section 358-1(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1358-1(b)) for the 2001 
     marketing year.
       (e) Assignment of Payments.--The provisions of section 8(g) 
     of the Soil Conservation and Domestic Allotment Act (16 
     U.S.C. 590h(g)), relating to assignment of payments, shall 
     apply to the payments made to peanut quota holders under the 
     contracts. The peanut quota holder making the assignment, or 
     the assignee, shall provide the Secretary with notice, in 
     such manner as the Secretary may require, of any assignment 
     made under this subsection.
       (f) Peanut Quota Holder Defined.--In this section, the term 
     ``peanut quota holder'' means a person or enterprise that 
     owns a farm that--
       (1) was eligible, immediately before the date of the 
     enactment of this Act, to have a peanut quota established 
     upon it;
       (2) if there are not quotas currently established, would be 
     eligible to have a quota established upon it for the 
     succeeding crop year, in the absence of the amendment made by 
     subsection (a); or
       (3) is otherwise a farm that was eligible for such a quota 
     at the time the general quota establishment authority was 
     repealed.

     The Secretary shall apply this definition without regard to 
     temporary leases or transfers or quotas for seed or 
     experimental purposes.

                       Subtitle D--Administration

     SEC. 181. ADMINISTRATION GENERALLY.

       (a) Use of Commodity Credit Corporation.--The Secretary 
     shall carry out this title through the Commodity Credit 
     Corporation.
       (b) Determinations by Secretary.--A determination made by 
     the Secretary under this title shall be final and conclusive.
       (c) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary and the Commodity 
     Credit Corporation, as appropriate, shall issue such 
     regulations as are necessary to implement this title. The 
     issuance of the regulations shall be made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804) relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     know as the ``Paperwork Reduction Act'').

[[Page 26829]]

       (d) Protection of Producers.--The protection afforded 
     producers that elect the option to accelerate the receipt of 
     any payment under a production flexibility contract payable 
     under the Federal Agriculture Improvement and Reform Act of 
     1996 (7 U.S.C. 7212 note) shall also apply to the advance 
     payment of fixed, decoupled payments and counter-cyclical 
     payments.
       (e) Adjustment Authority Related to Uruguay Round 
     Compliance.--If the Secretary determines that expenditures 
     under subtitles A, B, and C that are subject to the total 
     allowable domestic support levels under the Uruguay Round 
     Agreements (as defined in section 2(7) of the Uruguay Round 
     Agreements Act (19 U.S.C. 3501(7))), as in effect on the date 
     of the enactment of this Act, will exceed such allowable 
     levels for any applicable reporting period, the Secretary may 
     make adjustments in the amount of such expenditures during 
     that period to ensure that such expenditures do not exceed, 
     but in no case are less than, such allowable levels.

     SEC. 182. EXTENSION OF SUSPENSION OF PERMANENT PRICE SUPPORT 
                   AUTHORITY.

       (a) Agricultural Adjustment Act of 1938.--Section 171(a)(1) 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7301(a)(1)) is amended by striking ``2002'' both 
     places it appears and inserting ``2011''.
       (b) Agricultural Act of 1949.--Section 171(b)(1) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7301(b)(1)) is amended by striking ``2002'' both 
     places it appears and inserting ``2011''.
       (c) Suspension of Certain Quota Provisions.--Section 171(c) 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7301(c)) is amended by striking ``2002'' and 
     inserting ``2011''.

     SEC. 183. LIMITATIONS.

       (a) Limitation on Amounts Received.--Section 1001 of the 
     Food Security Act of 1985 (7 U.S.C. 1308) is amended--
       (1) in paragraph (1)--
       (A) by striking ``payments under production flexibility 
     contracts'' and inserting ``fixed, decoupled payments'';
       (B) by striking ``contract payments made under the 
     Agricultural Market Transition Act to a person under 1 or 
     more production flexibility contracts'' and inserting 
     ``fixed, decoupled payments made to a person''; and
       (C) by striking ``4'' and inserting ``5'';
       (2) in paragraphs (2) and (3)--
       (A) by striking ``payments specified'' and all that follows 
     through ``and oilseeds'' and inserting ``following payments 
     that a person shall be entitled to receive'';
       (B) by striking ``75'' and inserting ``150'';
       (C) by striking the period at the end of paragraph (2) and 
     all that follows through ``the following'' in paragraph (3);
       (D) by striking ``section 131'' and all that follows 
     through ``section 132'' and inserting ``section 121 of the 
     Farm Security Act of 2001 for a crop of any covered commodity 
     at a lower level than the original loan rate established for 
     the commodity under section 122''; and
       (E) by striking ``section 135'' and inserting ``section 
     125''; and
       (3) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) Limitation on counter-cyclical payments.--The total 
     amount of counter-cyclical payments that a person may receive 
     during any crop year shall not exceed the amount specified in 
     paragraph (2), as in effect on the day before the date of the 
     enactment of the Farm Security Act of 2001.''.
       (b) Definitions.--Paragraph (4) of section 1001 of the Food 
     Security Act of 1985 (7 U.S.C. 1308) is amended to read as 
     follows:
       ``(4) Definitions.--In this title, the terms `covered 
     commodity', `counter-cyclical payment', and `fixed, decoupled 
     payment' have the meaning given those terms in section 100 of 
     the Farm Security Act of 2001.''.
       (c) Transition.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308), as in effect on the day before the date 
     of the enactment of this Act, shall continue to apply with 
     respect to fiscal year 2001 and the 2001 crop of any covered 
     commodity.

     SEC. 184. ADJUSTMENTS OF LOANS.

       Section 162(b) of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7282(b)) is amended by striking 
     ``this title'' and inserting ``this title and title I of the 
     Farm Security Act of 2001''.

     SEC. 185. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

       Section 164 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7284) is amended by striking 
     ``this title'' each places it appears and inserting ``this 
     title and title I of the Farm Security Act of 2001''.

     SEC. 186. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY 
                   REGARDING LOANS.

       Section 166 of the Federal Agriculture Improvement and 
     Reform Act of 1996 (7 U.S.C. 7286) is amended--
       (1) in subsection (a)--
       (A) by striking ``In General.--'' and inserting ``Specific 
     Payments.--''; and
       (B) by striking ``subtitle C'' and inserting ``subtitle C 
     of this title and title I of the Farm Security Act of 2001''; 
     and
       (2) in subsection (c)(1)--
       (A) by striking ``producer'' the first two places it 
     appears and inserting ``person''; and
       (B) by striking ``to producers under subtitle C'' and 
     inserting ``by the Commodity Credit Corporation''.

     SEC. 187. ASSIGNMENT OF PAYMENTS.

       The provisions of section 8(g) of the Soil Conservation and 
     Domestic Allotment Act (16 U.S.C. 590h(g)), relating to 
     assignment of payments, shall apply to payments made under 
     the authority of this Act. The producer making the 
     assignment, or the assignee, shall provide the Secretary with 
     notice, in such manner as the Secretary may require, of any 
     assignment made under this section.

     SEC. 188. REPORT ON EFFECT OF CERTAIN FARM PROGRAM PAYMENTS 
                   ON ECONOMIC VIABILITY OF PRODUCERS AND FARMING 
                   INFRASTRUCTURE.

       (a) Review Required.--The Secretary of Agriculture shall 
     conduct a review of the effects that payments under 
     production flexibility contracts and market loss assistance 
     payments have had, and that fixed, decoupled payments and 
     counter-cyclical payments are likely to have, on the economic 
     viability of producers and the farming infrastructure, 
     particularly in areas where climate, soil types, and other 
     agronomic conditions severely limit the covered crops that 
     producers can choose to successfully and profitably produce.
       (b) Case Study Related to Rice Production.--The review 
     shall include a case study of the effects that the payments 
     described in subsection (a), and the forecast effects of 
     increasing these or other decoupled payments, are likely to 
     have on rice producers (including tenant rice producers), the 
     rice milling industry, and the economies of rice farming 
     areas in Texas, where harvested rice acreage has fallen from 
     320,000 acres in 1995 to only 211,000 acres in 2001.
       (c) Report and Recommendations.--Not later than 90 days 
     after the date of the enactment of this Act, the Secretary 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report describing the 
     information collected for the review and the case study and 
     any findings made on the basis of such information. The 
     report shall include recommendations for minimizing the 
     adverse effects on producers, with a special focus on 
     producers who are tenants, on the agricultural economies in 
     farming areas generally, on those particular areas described 
     in subsection (a), and on the area that is the subject of the 
     case study in subsection (b).

                         TITLE II--CONSERVATION

     Subtitle A--Environmental Conservation Acreage Reserve Program

     SEC. 201. GENERAL PROVISIONS.

       Title XII of the Food Security Act of 1985 is amended--
       (1) in section 1230(a), by striking ``1996 through 2002'' 
     and inserting ``2002 through 2011'';
       (2) by striking subsection (c) of section 1230; and
       (3) in section 1230A (16 U.S.C. 3830a), by striking 
     ``chapter'' each place it appears and inserting ``title''.

                Subtitle B--Conservation Reserve Program

     SEC. 211. REAUTHORIZATION.

       (a) In General.--Section 1231 of the Food Security Act of 
     1985 (16 U.S.C. 3831) is amended in each of subsections (a) 
     and (d) by striking ``2002'' and inserting ``2011''.
       (b) Scope of Program.--Section 1231(a) of such Act (16 
     U.S.C. 3831(a)) is amended by striking ``and water'' and 
     inserting ``, water, and wildlife''.

     SEC. 212. ENROLLMENT.

       (a) Conservation Priority Areas.--
       (1) Eligibility.--Section 1231(b) of the Food Security Act 
     of 1985 (16 U.S.C. 3831(b)) is amended--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) highly erodible cropland that--
       ``(A)(i) if permitted to remain untreated could 
     substantially reduce the production capability for future 
     generations; or
       ``(ii) cannot be farmed in accordance with a conservation 
     plan that complies with the requirements of subtitle B; and
       ``(B) the Secretary determines had a cropping history or 
     was considered to be planted for 3 of the 6 years preceding 
     the date of enactment of the Agriculture, Conservation, and 
     Rural Enhancement Act of 2001 (except for land enrolled in 
     the conservation reserve program as of that date);''; and
       (B) by adding at the end the following:
       ``(5) the portion of land in a field not enrolled in the 
     conservation reserve in a case in which more than 50 percent 
     of the land in the field is enrolled as a buffer under a 
     program described in section 1234(i)(1), if the land is 
     enrolled as part of the buffer; and
       ``(6) land (including land that is not cropland) enrolled 
     through continuous signup--
       ``(A) to establish conservation buffers as part of the 
     program described in a notice issued on March 24, 1998 (63 
     Fed. Reg. 14109) or a successor program; or
       ``(B) into the conservation reserve enhancement program 
     described in a notice issued on May 27, 1998 (63 Fed. Reg. 
     28965) or a successor program.''.
       (2) CRP priority areas.--Section 1231(f) of the Food 
     Security Act of 1985 (16 U.S.C. 3831(f)) is amended by adding 
     at the end the following:

[[Page 26830]]

       ``(5) Priority.--In designating conservation priority areas 
     under paragraph (1), the Secretary shall give priority to 
     areas in which designated land would facilitate the most 
     rapid completion of projects that--
       ``(A) are ongoing as of the date of the application; and
       ``(B) meet the purposes of the program established under 
     this subchapter.''.
       (b) Eligibility on Contract Expiration.--Section 1231(f) of 
     such Act (16 U.S.C. 3831(f)) is amended to read as follows:
       ``(f) Eligibility on Contract Expiration.--On the 
     expiration of a contract entered into under this subchapter, 
     the land subject to the contract shall be eligible to be 
     considered for re-enrollment in the conservation reserve.''.
       (c) Balance of Natural Resource Purposes.--
       (1) In general.--Section 1231 of such Act (16 U.S.C. 3831) 
     is amended by adding at the end the following:
       ``(i) Balance of Natural Resource Purposes.--In determining 
     the acceptability of contract offers under this subchapter, 
     the Secretary shall ensure an equitable balance among the 
     conservation purposes of soil erosion, water quality and 
     wildlife habitat.''.
       (2) Regulations.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     issue final regulations implementing section 1231(i) of the 
     Food Security Act of 1985, as added by paragraph (1) of this 
     subsection.

     SEC. 213. DUTIES OF OWNERS AND OPERATORS.

       Section 1232 of the Food Security Act of 1985 (16 U.S.C. 
     3832) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3), by inserting ``as described in 
     section 1232(a)(7) or for other purposes'' before ``as 
     permitted'';
       (B) in paragraph (4), by inserting ``where practicable, or 
     maintain existing cover'' before ``on such land''; and
       (C) in paragraph (7), by striking ``Secretary--'' and all 
     that follows and inserting ``Secretary may permit, consistent 
     with the conservation of soil, water quality, and wildlife 
     habitat--
       ``(A) managed grazing and limited haying, in which case the 
     Secretary shall reduce the conservation reserve payment 
     otherwise payable under the contract by an amount 
     commensurate with the economic value of the activity;
       ``(B) wind turbines for the provision of wind energy, 
     whether or not commercial in nature; and
       ``(C) land subject to the contract to be harvested for 
     recovery of biomass used in energy production, in which case 
     the Secretary shall reduce the conservation reserve payment 
     otherwise payable under the contract by an amount 
     commensurate with the economic value of such activity;''; and
       (2) by striking subsections (c) and (d) and redesignating 
     subsection (e) as subsection (c).

     SEC. 214. REFERENCE TO CONSERVATION RESERVE PAYMENTS.

       Subchapter B of chapter 1 of subtitle D of title XII of 
     such Act (16 U.S.C. 3831-3836) is amended--
       (1) by striking ``rental payment'' each place it appears 
     and inserting ``conservation reserve payment'';
       (2) by striking ``rental payments'' each place it appears 
     and inserting ``conservation reserve payments''; and
       (3) in the paragraph heading for section 1235(e)(4), by 
     striking ``rental payment'' and inserting ``conservation 
     reserve payment''.

     SEC. 215. EXPANSION OF PILOT PROGRAM TO ALL STATES.

       Section 1231(h) of the Food Security Act of 1985 (16 U.S.C. 
     3831(h)) is amended--
       (1) in paragraph (1), by striking ``and 2002'' and all that 
     follows through ``South Dakota'' and inserting ``through 2011 
     calendar years, the Secretary shall carry out a program in 
     each State'';
       (2) in paragraph (3)(C), by striking ``--'' and all that 
     follows and inserting ``not more than 150,000 acres in any 1 
     State.''; and
       (3) by striking paragraph (2) and redesignating paragraphs 
     (3) through (5) as paragraphs (2) through (4), respectively.

                  Subtitle C--Wetlands Reserve Program

     SEC. 221. ENROLLMENT.

       (a) Maximum.--Section 1237(b) of the Food Security Act of 
     1985 (16 U.S.C. 3837(b)) is amended by striking paragraph (1) 
     and inserting the following:
       ``(1) Annual enrollment.--In addition to any acres enrolled 
     in the wetlands reserve program as of the end of a calendar 
     year, the Secretary may in the succeeding calendar year 
     enroll in the program a number of additional acres equal to--
       ``(A) if the succeeding calendar year is calendar year 
     2002, 150,000; or
       ``(B) if the succeeding calendar year is a calendar year 
     after calendar year 2002--
       ``(i) 150,000; plus
       ``(ii) the amount (if any) by which 150,000, multiplied by 
     the number of calendar years in the period that begins with 
     calendar year 2002 and ends with the calendar year preceding 
     such succeeding calendar year, exceeds the total number of 
     acres added to the reserve during the period.''.
       (b) Methods.--Section 1237 of such Act (16 U.S.C. 
     3837(b)(2)) is amended--
       (1) in subsection (b), by striking paragraph (2) and 
     inserting the following:
       ``(2) Methods of enrollment.--The Secretary shall enroll 
     acreage into the wetlands reserve program through the use of 
     easements, restoration cost share agreements, or both.''; and
       (2) by striking subsection (g).
       (c) Extension.--Section 1237(c) of such Act (16 U.S.C. 
     3837(c)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 222. EASEMENTS AND AGREEMENTS.

       Section 1237A of the Food Security Act of 1985 (16 U.S.C. 
     3837a) is amended--
       (1) in subsection (b), by striking paragraph (2) and 
     inserting the following:
       ``(2) prohibits the alteration of wildlife habitat and 
     other natural features of such land, unless specifically 
     permitted by the plan;'';
       (2) in subsection (e), by striking paragraph (2) and 
     inserting the following:
       ``(2) shall be consistent with applicable State law.'';
       (3) by striking subsection (h).

     SEC. 223. DUTIES OF THE SECRETARY.

       Section 1237C of the Food Security Act of 1985 (16 U.S.C. 
     3837c) is amended by striking subsection (d).

     SEC. 224. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; 
                   TERMINATION.

       Section 1237E(a)(2) of the Food Security Act of 1985 (16 
     U.S.C. 3837e(a)(2)) is amended to read as follows:
       ``(2) the ownership change occurred due to foreclosure on 
     the land and the owner of the land immediately before the 
     foreclosure exercises a right of redemption from the mortgage 
     holder in accordance with State law; or''.

          Subtitle D--Environmental Quality Incentives Program

     SEC. 231. PURPOSES.

       Section 1240 of the Food Security Act of 1985 (16 U.S.C. 
     3839aa) is amended--
       (1) by striking ``to--'' and all that follows through 
     ``provides--'' and inserting ``to provide--'';
       (2) by striking ``that face the most serious threats to'' 
     and inserting ``to address environmental needs and provide 
     benefits to air,'';
       (3) by redesignating the subparagraphs (A) through (D) that 
     follow the matter amended by paragraph (2) of this section as 
     paragraphs (1) through (4), respectively;
       (4) by moving each of such redesignated provisions 2 ems to 
     the left; and
       (5) by striking ``farmers and ranchers'' each place it 
     appears and inserting ``producers''.

     SEC. 232. DEFINITIONS.

       Section 1240A of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-1) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``non-industrial private forest land,'' 
     before ``and other land''; and
       (B) by striking ``poses a serious threat'' and all that 
     follows and inserting ``provides increased environmental 
     benefits to air, soil, water, or related resources.''; and
       (2) in paragraph (4), by inserting ``, including non-
     industrial private forestry'' before the period.

     SEC. 233. ESTABLISHMENT AND ADMINISTRATION.

       (a) Reauthorization.--Section 1240B(a)(1) of the Food 
     Security Act of 1985 (16 U.S.C. 3839aa-2(a)(1)) is amended by 
     striking ``2002'' and inserting ``2011''.
       (b) Term of Contracts.--Section 1240B(b)(2) of such Act (16 
     U.S.C. 3839aa-2(b)(2)) is amended by striking ``not less than 
     5, nor more than 10, years'' and inserting ``not less than 1 
     year, nor more than 10 years''.
       (c) Structural Practices.--Section 1240B(c)(1)(B) of such 
     Act (16 U.S.C. 3839aa-2(c)(1)(B)) is amended to read as 
     follows:
       ``(B) achieving the purposes established under this 
     subtitle.''.
       (d) Elimination of Certain Limitations on Eligibility for 
     Cost-Share Payments.--Section 1240B(e)(1) of such Act (16 
     U.S.C. 3839aa-2(e)(1)) is amended--
       (1) by striking subparagraph (B) and redesignating 
     subparagraph (C) as subparagraph (B); and
       (2) in subparagraph (B) (as so redesignated), by striking 
     ``or 3''.
       (e) Incentive Payments.--Section 1240B of such Act (16 
     U.S.C. 3839aa-2) is amended--
       (1) in subsection (e)--
       (A) in the subsection heading, by striking ``, Incentive 
     Payments,''; and
       (B) by striking paragraph (2); and
       (2) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively, and inserting after subsection (e) 
     the following:
       ``(f) Conservation Incentive Payments.--
       ``(1) In general.--The Secretary may make incentive 
     payments in an amount and at a rate determined by the 
     Secretary to be necessary to encourage a producer to perform 
     multiple land management practices and to promote the 
     enhancement of soil, water, wildlife habitat, air, and 
     related resources.
       ``(2) Special rule.--In determining the amount and rate of 
     incentive payments, the Secretary may accord great weight to 
     those practices that include residue, nutrient, pest, 
     invasive species, and air quality management.''.

[[Page 26831]]



     SEC. 234. EVALUATION OF OFFERS AND PAYMENTS.

       Section 1240C of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-3) is amended by striking paragraphs (1) through (3) 
     and inserting the following:
       ``(1) aid producers in complying with this title and 
     Federal and State environmental laws, and encourage 
     environmental enhancement and conservation;
       ``(2) maximize the beneficial usage of animal manure and 
     other similar soil amendments which improve soil health, 
     tilth, and water-holding capacity; and
       ``(3) encourage the utilization of sustainable grazing 
     systems, such as year-round, rotational, or managed 
     grazing.''.

     SEC. 235. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM PLAN.

       Section 1240E(a) of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-5(a)) is amended by striking ``that 
     incorporates such conservation practices'' and all that 
     follows and inserting ``that provides or will continue to 
     provide increased environmental benefits to air, soil, water, 
     or related resources.''.

     SEC. 236. DUTIES OF THE SECRETARY.

       Section 1240F(3) of the Food Security Act of 1985 (16 
     U.S.C. 3839aa-6(3)) is amended to read as follows:
       ``(3) providing technical assistance or cost-share payments 
     for developing and implementing 1 or more structural 
     practices or 1 or more land management practices, as 
     appropriate;''.

     SEC. 237. LIMITATION ON PAYMENTS.

       Section 1240G of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-7) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``$10,000'' and inserting 
     ``$50,000''; and
       (B) in paragraph (2), by striking ``$50,000'' and inserting 
     ``$200,000'';
       (2) in subsection (b)(2), by striking ``the maximization of 
     environmental benefits per dollar expended and''; and
       (3) by striking subsection (c).

     SEC. 238. GROUND AND SURFACE WATER CONSERVATION.

       Section 1240H of the Food Security Act of 1985 (16 U.S.C. 
     3839aa-8) is amended to read as follows:

     ``SEC. 1240H. GROUND AND SURFACE WATER CONSERVATION.

       ``(a) Support for Conservation Measures.--The Secretary 
     shall provide cost-share payments and low-interest loans to 
     encourage ground and surface water conservation, including 
     irrigation system improvement, and provide incentive payments 
     for capping wells, reducing use of water for irrigation, and 
     switching from irrigation to dryland farming.
       ``(b) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary shall make available the following 
     amounts to carry out this section:
       ``(1) $30,000,000 for fiscal year 2002.
       ``(2) $45,000,000 for fiscal year 2003.
       ``(3) $60,000,000 for each of fiscal years 2004 through 
     2011.''.

                 Subtitle E--Funding and Administration

     SEC. 241. REAUTHORIZATION.

       Section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
     3841(a)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 242. FUNDING.

       Section 1241(b)(1) of the Food Security Act of 1985 (16 
     U.S.C. 3841(b)(1)) is amended--
       (1) by striking ``$130,000,000'' and all that follows 
     through ``2002, for'' and inserting ``the following amounts 
     for purposes of'';
       (2) by striking ``subtitle D.'' and inserting ``subtitle 
     D:''; and
       (3) by adding at the end the following:
       ``(A) $200,000,000 for fiscal year 2001.
       ``(B) $1,025,000,000 for each of fiscal years 2002 and 
     2003.
       ``(C) $1,200,000,000 for each of fiscal years 2004, 2005, 
     and 2006.
       ``(D) $1,400,000,000 for each of fiscal years 2007, 2008, 
     and 2009.
       ``(E) $1,500,000,000 for each of fiscal years 2010 and 
     2011.''.

     SEC. 243. ALLOCATION FOR LIVESTOCK PRODUCTION.

       Section 1241(b)(2) of the Food Security Act of 1985 (16 
     U.S.C. 3841(b)(2)) is amended by striking ``2002'' and 
     inserting ``2011''.

     SEC. 244. ADMINISTRATION AND TECHNICAL ASSISTANCE.

       (a) Broadening of Exception to Acreage Limitation.--Section 
     1243(b)(2) of the Food Security Act of 1985 (16 U.S.C. 
     3843(b)(2)) is amended by striking ``that--'' and all that 
     follows and inserting ``that the action would not adversely 
     affect the local economy of the county.''.
       (b) Rules Governing Provision of Technical Assistance.--
     Section 1243(d) of such Act (16 U.S.C. 3843(d)) is amended to 
     read as follows:
       ``(d) Rules Governing Provision of Technical Assistance.--
       ``(1) In general.--The Secretary shall provide technical 
     assistance under this title to a producer eligible for such 
     assistance, by providing the assistance directly or, at the 
     option of the producer, through an approved third party if 
     available.
       ``(2) Reevaluation.--The Secretary shall reevaluate the 
     provision of, and the amount of, technical assistance made 
     available under subchapters B and C of chapter 1 and chapter 
     4 of subtitle D.
       ``(3) Certification of third-party providers.--
       ``(A) In general.--Not later than 6 months after the date 
     of the enactment of this subsection, the Secretary of 
     Agriculture shall, by regulation, establish a system for 
     approving persons to provide technical assistance pursuant to 
     chapter 4 of subtitle D. For purposes of this paragraph, a 
     person shall be considered approved if they have a memorandum 
     of understanding regarding the provision of technical 
     assistance in place with the Secretary.
       ``(B) Expertise required.--In prescribing such regulations, 
     the Secretary shall ensure that persons with expertise in the 
     technical aspects of conservation planning, watershed 
     planning, environmental engineering, including commercial 
     entities, nonprofit entities, State or local governments or 
     agencies, and other Federal agencies, are eligible to become 
     approved providers of such technical assistance.''.
       (c) Duty of Secretary.--
       (1) In general.--Section 1770(d) of such Act (7 U.S.C. 
     2276(d)) is amended--
       (A) by striking ``or'' at the end of paragraph (9);
       (B) by striking the period at the end of paragraph (11) and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(12) title XII of this Act.''.
       (2) Conforming amendments.--Section 1770(e) of such Act (7 
     U.S.C. 2276(e)) is amended--
       (A) by striking the subsection heading and inserting 
     ``Exceptions''; and
       (B) by inserting ``, or as necessary to carry out a program 
     under title XII of this Act as determined by the Secretary'' 
     before the period.

                       Subtitle F--Other Programs

     SEC. 251. PRIVATE GRAZING LAND CONSERVATION ASSISTANCE.

       Section 386(d)(1) of the Federal Agriculture Improvement 
     and Reform Act of 1996 (16 U.S.C. 2005b(d)(1)) is amended--
       (1) by striking ``and'' at the end of subparagraph (G);
       (2) by striking the period at the end of subparagraph (H) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(I) encouraging the utilization of sustainable grazing 
     systems, such as year-round, rotational, or managed 
     grazing.''.

     SEC. 252. WILDLIFE HABITAT INCENTIVES PROGRAM.

       Subsection (c) of section 387 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 3836a) is 
     amended to read as follows:
       ``(c) Funding.--Of the funds of the Commodity Credit 
     Corporation, the Secretary of Agriculture shall make 
     available $25,000,000 for each of fiscal years 2002 through 
     2011 to carry out this section.''.

     SEC. 253. FARMLAND PROTECTION PROGRAM.

       (a) Removal of Acreage Limitation; Expansion of Purposes.--
     Subsection (a) of section 388 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 3830 note) is 
     amended--
       (1) by striking ``not less than 170,000, nor more than 
     340,000 acres of''; and
       (2) by inserting ``, or agricultural land that contains 
     historic or archaeological resources,'' after ``other 
     productive soil''.
       (b) Funding.--Subsection (c) of such section is amended to 
     read as follows:
       ``(c) Funding.--The Secretary shall use not more than 
     $50,000,000 of the funds of the Commodity Credit Corporation 
     in each of fiscal years 2002 through 2011 to carry out this 
     section.''.
       (c) Eligible Entities.--Such section is further amended--
       (1) in subsection (a), by striking ``a State or local 
     government'' and inserting ``an eligible entity''; and
       (2) by adding at the end the following:
       ``(d) Definition of Eligible Entity.--In this section, the 
     term `eligible entity' means--
       ``(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, one 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.''.

     SEC. 254. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

       (a) Purpose.--Section 1528 of the Agriculture and Food Act 
     of 1981 (16 U.S.C. 3451) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1528. It is the purpose'' and inserting the 
     following:

     ``SEC. 1528. STATEMENT OF PURPOSE.

       ``It is the purpose''; and

[[Page 26832]]

       (2) by inserting ``through designated RC&D councils'' 
     before ``in rural areas''.
       (b) Definitions.--Section 1529 of such Act (16 U.S.C. 3452) 
     is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1529. As used in this subtitle--'' and 
     inserting the following:

     ``SEC. 1529. DEFINITIONS.

       ``In this title:'';
       (2) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``RC&D council'' before ``area plan'';
       (B) in subparagraph (B), by striking ``through control of 
     nonpoint sources of pollution'';
       (C) in subparagraph (C)--
       (i) by striking ``natural resources based'' and inserting 
     ``resource-based'';
       (ii) by striking ``development of aquaculture,'';
       (iii) by striking ``and satisfaction'' and inserting 
     ``satisfaction''; and
       (iv) by inserting ``, food security, economic development, 
     and education'' before the semicolon; and
       (D) in subparagraph (D), by striking ``other'' the 1st 
     place it appears and inserting ``land management'';
       (3) in paragraph (3), by striking ``any State, local unit 
     of government, or local nonprofit organization'' and 
     inserting ``the designated RC&D council'';
       (4) by striking paragraphs (4) through (6) and inserting 
     the following:
       ``(4)(A) The term `financial assistance' means the 
     Secretary may--
       ``(i) provide funds directly to RC&D councils or 
     associations of RC&D councils through grants, cooperative 
     agreements, and interagency agreements that directly 
     implement RC&D area plans; and
       ``(ii) may join with other federal agencies through 
     interagency agreements and other arrangements as needed to 
     carry out the program's purpose.
       ``(B) Funds may be used for such things as--
       ``(i) technical assistance;
       ``(ii) financial assistance in the form of grants for 
     planning, analysis and feasibility studies, and business 
     plans;
       ``(iii) training and education; and
       ``(iv) all costs associated with making such services 
     available to RC&D councils or RC&D associations.
       ``(5) The term `RC&D council' means the responsible 
     leadership of the RC&D area. RC&D councils and associations 
     are non-profit entities whose members are volunteers and 
     include local civic and elected officials. Affiliations of 
     RC&D councils are formed in states and regions.'';
       (5) in paragraph (8), by inserting ``and federally 
     recognized Indian tribes'' before the period;
       (6) in paragraph (9), by striking ``works of improvement'' 
     and inserting ``projects'';
       (7) by redesignating paragraphs (7) through (9) as 
     paragraphs (6) through (8), respectively; and
       (8) by striking paragraph (10) and inserting the following:
       ``(9) The term `project' means any action taken by a 
     designated RC&D council that achieves any of the elements 
     identified under paragraph (1).''.
       (c) Establishment and Scope.--Section 1530 of such Act (16 
     U.S.C. 3453) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1530. The Secretary'' and inserting the 
     following:

     ``SEC. 1530. ESTABLISHMENT AND SCOPE.

       ``The Secretary''; and
       (2) by striking ``the technical and financial assistance 
     necessary to permit such States, local units of government, 
     and local nonprofit organizations'' and inserting ``through 
     designated RC&D councils the technical and financial 
     assistance necessary to permit such RC&D Councils''.
       (d) Selection of Designated Areas.--Section 1531 of such 
     Act (16 U.S.C. 3454) is amended by striking the section 
     heading and all that follows through ``Sec. 1531. The 
     Secretary'' and inserting the following:

     ``SEC. 1531. SELECTION OF DESIGNATED AREAS.

       ``The Secretary''.
       (e) Authority of Secretary.--Section 1532 of such Act (16 
     U.S.C. 3455) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1532. In carrying'' and inserting the 
     following:

     ``SEC. 1532. AUTHORITY OF SECRETARY.

       ``In carrying'';
       (2) in each of paragraphs (1) and (3)--
       (A) by striking ``State, local unit of government, or local 
     nonprofit organization'' and inserting ``RC&D council''; and
       (B) by inserting ``RC&D council'' before ``area plan'';
       (3) in paragraph (2), by inserting ``RC&D council'' before 
     ``area plans''; and
       (4) in paragraph (4), by striking ``States, local units of 
     government, and local nonprofit organizations'' and inserting 
     ``RC&D councils or affiliations of RC&D councils''.
       (f) Technical and Financial Assistance.--Section 1533 of 
     such Act (16 U.S.C. 3456) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1533. (a) Technical'' and inserting the 
     following:

     ``SEC. 1533. TECHNICAL AND FINANCIAL ASSISTANCE.

       ``(a) Technical'';
       (2) in subsection (a)--
       (A) by striking ``State, local unit of government, or local 
     nonprofit organization to assist in carrying out works of 
     improvement specified in an'' and inserting ``RC&D councils 
     or affiliations of RC&D councils to assist in carrying out a 
     project specified in a RC&D council'';
       (B) in paragraph (1)--
       (i) by striking ``State, local unit of government, or local 
     nonprofit organization'' and inserting ``RC&D council or 
     affiliate''; and
       (ii) by striking ``works of improvement'' each place it 
     appears and inserting ``project'';
       (C) in paragraph (2)--
       (i) by striking ``works of improvement'' and inserting 
     ``project''; and
       (ii) by striking ``State, local unit of government, or 
     local nonprofit organization'' and inserting ``RC&D 
     council'';
       (D) in paragraph (3), by striking ``works of improvement'' 
     and all that follows and inserting ``project concerned is 
     necessary to accomplish and RC&D council area plan 
     objective;'';
       (E) in paragraph (4), by striking ``the works of 
     improvement provided for in the'' and inserting ``the project 
     provided for in the RC&D council'';
       (F) in paragraph (5), by inserting ``federally recognized 
     Indian tribe'' before ``or local'' each place it appears; and
       (G) in paragraph (6), by inserting ``RC&D council'' before 
     ``area plan'';
       (3) in subsection (b), by striking ``work of improvement'' 
     and inserting ``project''; and
       (4) in subsection (c), by striking ``any State, local unit 
     of government, or local nonprofit organization to carry out 
     any'' and inserting ``RC&D council to carry out any RC&D 
     council''.
       (g) Resource Conservation and Development Policy Board.--
     Section 1534 of such Act (16 U.S.C. 3457) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1534. (a) The Secretary'' and inserting the 
     following:

     ``SEC. 1534. RESOURCE CONSERVATION AND DEVELOPMENT POLICY 
                   BOARD.

       ``(a) The Secretary''; and
       (2) in subsection (b), by striking ``seven''.
       (h) Program Evaluation.--Section 1535 of such Act (16 
     U.S.C. 3458) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1535. The Secretary'' and inserting the 
     following:

     ``SEC. 1535. PROGRAM EVALUATION.

       ``The Secretary'';
       (2) by inserting ``with assistance from RC&D councils'' 
     before ``provided'';
       (3) by inserting ``federally recognized Indian tribes,'' 
     before ``local units''; and
       (4) by striking ``1986'' and inserting ``2007''.
       (i) Limitation on Assistance.--Section 1536 of such Act (16 
     U.S.C. 3458) is amended by striking the section heading and 
     all that follows through ``Sec. 1536. The program'' and 
     inserting the following:

     ``SEC. 1536. LIMITATION ON ASSISTANCE.

       ``The program''.
       (j) Supplemental Authority of the Secretary.--Section 1537 
     of such Act (16 U.S.C. 3460) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1537. The authority'' and inserting the 
     following:

     ``SEC. 1537. SUPPLEMENTAL AUTHORITY OF SECRETARY.

       ``The authority''; and
       (2) by striking ``States, local units of government, and 
     local nonprofit organizations'' and inserting ``RC&D 
     councils''.
       (i) Authorization of Appropriations.--Section 1538 of such 
     Act (16 U.S.C. 3461) is amended--
       (1) by striking the section heading and all that follows 
     through ``Sec. 1538. There are'' and inserting the following:

     ``SEC. 1538. AUTHORIZATION OF APPROPRIATIONS.

       ``There are''; and
       (2) by striking ``for each of the fiscal years 1996 through 
     2002''.

     SEC. 255. GRASSLAND RESERVE PROGRAM.

       (a) In General.--Chapter 1 of subtitle D of title XII of 
     the Food Security Act of 1985 (16 U.S.C. 3830-3837f) is 
     amended by adding at the end the following:

               ``Subchapter D--Grassland Reserve Program

     ``SEC. 1238. GRASSLAND RESERVE PROGRAM.

       ``(a) Establishment.--The Secretary, acting through the 
     Natural Resource Conservation Service, shall establish a 
     grassland reserve program (referred to in this subchapter as 
     `the program') to assist owners in restoring and protecting 
     eligible land described in subsection (c).
       ``(b) Enrollment Conditions.--
       ``(1) In general.--The Secretary shall enroll in the 
     program, from willing owners, not less than--
       ``(A) 100 contiguous acres of land west of the 90th 
     meridian; or
       ``(B) 50 contiguous acres of land east of the 90th 
     meridian.
       ``(2) Maximum enrollment.--The total number of acres 
     enrolled in the program shall not exceed 1,000,000 acres.
       ``(3) Methods of enrollment.--The Secretary shall enroll 
     land in the program through--
       ``(A) permanent easements or 30-year easements;
       ``(B) in a State that imposes a maximum duration for such 
     an easement, an easement

[[Page 26833]]

     for the maximum duration allowed under State law; or
       ``(C) a 30-year rental agreement.
       ``(c) Eligible Land.--Land shall be eligible to be enrolled 
     in the program if the Secretary determines that the land is--
       ``(1) natural grassland or shrubland;
       ``(2) land that--
       ``(A) is located in an area that has been historically 
     dominated by natural grassland or shrubland; and
       ``(B) has potential to serve as habitat for animal or plant 
     populations of significant ecological value if the land is 
     restored to natural grassland or shrubland; or
       ``(3) land that is incidental to land described in 
     paragraph (1) or (2), if the incidental land is determined by 
     the Secretary to be necessary for the efficient 
     administration of the easement.

     ``SEC. 1238A. EASEMENTS AND AGREEMENTS.

       ``(a) In General.--To be eligible to enroll land in the 
     program, the owner of the land shall enter into an agreement 
     with the Secretary--
       ``(1) to grant an easement that runs with the land to the 
     Secretary;
       ``(2) to create and record an appropriate deed restriction 
     in accordance with applicable State law to reflect the 
     easement;
       ``(3) to provide a written statement of consent to the 
     easement signed by persons holding a security interest or any 
     vested interest in the land;
       ``(4) to provide proof of unencumbered title to the 
     underlying fee interest in the land that is the subject of 
     the easement; and
       ``(5) to comply with the terms of the easement and 
     restoration agreement.
       ``(b) Terms of Easement.--An easement under subsection (a) 
     shall--
       ``(1) permit--
       ``(A) grazing on the land in a manner that is consistent 
     with maintaining the viability of natural grass and shrub 
     species indigenous to that locality;
       ``(B) haying (including haying for seed production) or 
     mowing, except during the nesting season for birds in the 
     area that are in significant decline, as determined by the 
     Natural Resources Conservation Service State conservationist, 
     or are protected Federal or State law; and
       ``(C) fire rehabilitation, construction of fire breaks, and 
     fences (including placement of the posts necessary for 
     fences);
       ``(2) prohibit--
       ``(A) the production of row crops, fruit trees, vineyards, 
     or any other agricultural commodity that requires breaking 
     the soil surface; and
       ``(B) except as permitted under paragraph (1)(C), the 
     conduct of any other activities that would disturb the 
     surface of the land covered by the easement, including--
       ``(i) plowing; and
       ``(ii) disking; and
       ``(3) include such additional provisions as the Secretary 
     determines are appropriate to carry out this subchapter or to 
     facilitate the administration of this subchapter.
       ``(c) Evaluation and Ranking of Easement Applications.--
       ``(1) In general.--The Secretary, in conjunction with State 
     technical committees, shall establish criteria to evaluate 
     and rank applications for easements under this subchapter.
       ``(2) Criteria.--In establishing the criteria, the 
     Secretary shall emphasize support for grazing operations, 
     plant and animal biodiversity, and grassland and shrubland 
     under the greatest threat of conversion.
       ``(d) Restoration Agreements.--
       ``(1) In general.--The Secretary shall prescribe the terms 
     by which grassland and shrubland subject to an easement under 
     an agreement entered into under the program shall be 
     restored.
       ``(2) Requirements.--The restoration agreement shall 
     describe the respective duties of the owner and the Secretary 
     (including paying the Federal share of the cost of 
     restoration and the provision of technical assistance).
       ``(e) Violations.--
       ``(1) In general.--On the violation of the terms or 
     conditions of an easement or restoration agreement entered 
     into under this section--
       ``(A) the easement shall remain in force; and
       ``(B) the Secretary may require the owner to refund all or 
     part of any payments received by the owner under this 
     subchapter, with interest on the payments as determined 
     appropriate by the Secretary.
       ``(2) Periodic inspections.--
       ``(A) In general.--After providing notice to the owner, the 
     Secretary shall conduct periodic inspections of land subject 
     to easements under this subchapter to ensure that the terms 
     of the easement and restoration agreement are being met.
       ``(B) Limitation.--The Secretary may not prohibit the 
     owner, or a representative of the owner, from being present 
     during a periodic inspection.

     ``SEC. 1238B. DUTIES OF SECRETARY.

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

     ``SEC. 1238C. ADMINISTRATION.

       ``(a) Delegation to Private Organizations.--
       ``(1) In general.--The Secretary shall permit a private 
     conservation or land trust organization or a State agency to 
     hold and enforce an easement under this subchapter, in lieu 
     of the Secretary, if--
       ``(A) the Secretary determines that granting such 
     permission is likely to promote grassland and shrubland 
     protection; and
       ``(B) the owner authorizes the private conservation or land 
     trust or a State agency to hold and enforce the easement.
       ``(2) Application.--An organization that desires to hold an 
     easement under this subchapter shall apply to the Secretary 
     for approval.
       ``(3) Approval by secretary.--The Secretary shall approve 
     an organization under this subchapter that is constituted for 
     conservation or ranching purposes and is competent to 
     administer grassland and shrubland easements.
       ``(4) Reassignment.--If an organization holding an easement 
     on land under this subchapter terminates--
       ``(A) the owner of the land shall reassign the easement to 
     another organization described in paragraph (1) or to the 
     Secretary; and
       ``(B) the owner and the new organization shall notify the 
     Secretary in writing that a reassignment for termination has 
     been made.
       ``(b) Regulations.--Not later than 180 days after the date 
     of enactment of this subchapter, the Secretary shall issue 
     such regulations as are necessary to carry out this 
     subchapter.''.
       (b) Funding.--Section 1241(a)(2) of the Food Security Act 
     of 1985 (16 U.S.C. 3841(a)(2)) is

[[Page 26834]]

     amended by striking ``subchapter C'' and inserting 
     ``subchapters C and D''.

     SEC. 256. FARMLAND STEWARDSHIP PROGRAM.

       Subtitle D of title XII of the Food Security Act of 1985 
     (16 U.S.C. 3830-3839bb) is amended by inserting after chapter 
     1 (and the matter added by section 255 of this Act) the 
     following:

               ``CHAPTER 2--FARMLAND STEWARDSHIP PROGRAM

     ``SEC. 1238. DEFINITIONS.

       ``In this chapter:
       ``(1) Agreement.--The term `agreement' means a service 
     contract authorized by this chapter.
       ``(2) Biofuel.--
       ``(A) In general.--The term `biofuel' means an energy 
     source derived from living organisms.
       ``(B) Inclusions.--The term `biofuel' includes--
       ``(i) plant residue that is harvested, dried, and burned, 
     or further processed into a solid, liquid, or gaseous fuel;
       ``(ii) agricultural waste (such as cereal straw, seed 
     hulls, corn stalks and cobs);
       ``(iii) native shrubs and herbaceous plants (such as some 
     varieties of willows and prairie switchgrass); and
       ``(iv) animal waste (including methane gas that is produced 
     as a byproduct of animal waste).
       ``(3) Bioproduct.--The term `bioproduct' means a product 
     that is manufactured or produced--
       ``(A) by using plant material and plant byproduct (such as 
     glucose, starch, and protein); and
       ``(B) to replace a petroleum-based product, additive, or 
     activator used in the production of a solvent, paint, 
     adhesive, chemical, or other product (such as tires or 
     Styrofoam cups).
       ``(4) Carbon sequestration.--The term `carbon 
     sequestration' means the process of providing plant cover to 
     avoid contributing to the greenhouse effect by--
       ``(A) removing carbon dioxide from the air; and
       ``(B) developing a `carbon sink' to retain that carbon 
     dioxide.
       ``(5) Contracting agency.--The term `contracting agency' 
     means a local conservation district, resource conservation 
     and development council, extension service office, state-
     chartered stewardship entity, nonprofit organization, local 
     office of the Department, or other participating government 
     agency that is authorized by the Secretary to enter into 
     farmland stewardship agreements on behalf of the Secretary.
       ``(6) Eligible agricultural land.--The term `eligible 
     agricultural land' means private land that is in primarily 
     native or natural condition, or that is classified by the 
     Secretary as cropland, pastureland, grazing land, timberland, 
     or another similar type of land, that--
       ``(A) contains wildlife habitat, wetland, or other natural 
     resources; or
       ``(B) provides 1 or more benefits to the public, such as--
       ``(i) conservation of soil, water, and related resources;
       ``(ii) water quality protection or improvement;
       ``(iii) control of invasive and exotic species;
       ``(iv) wetland restoration, development, and protection;
       ``(v) wildlife habitat development and protection;
       ``(vi) survival and recovery of listed species or candidate 
     species;
       ``(vii) preservation of open spaces or prime, unique, or 
     other productive farm land;
       ``(viii) increased participation in Federal agricultural or 
     forestry programs in an area or region that has traditional 
     under-representation in those programs;
       ``(ix) provision of a structure for interstate cooperation 
     to address ecosystem challenges that affect an area involving 
     1 or more States;
       ``(x) improvements in the ecological integrity of the area, 
     region or corridor;
       ``(xi) carbon sequestration;
       ``(xii) phytoremediation;
       ``(xiii) improvements in the economic viability of 
     agriculture;
       ``(xiv) production of biofuels and bioproducts;
       ``(xv) establishment of experimental or innovative crops;
       ``(xvi) use of existing crops or crop byproducts in 
     experimental or innovative ways;
       ``(xvii) installation of equipment to produce materials 
     that may be used for biofuels or other bioproducts;
       ``(xviii) maintenance of experimental or innovative crops 
     until the earlier of the date on which--

       ``(I) a viable market is established for those crops; or
       ``(II) an agreement terminates; and

       ``(xix) other similar conservation purposes identified by 
     the Secretary.
       ``(7) Germplasm.--The term `germplasm' means the genetic 
     material of a germ cell of any life form that is important 
     for food or agricultural production.
       ``(8) Indian tribe.--The term `Indian tribe' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       ``(9) Program.--The term `program' means the farmland 
     stewardship program established by this chapter.
       ``(10) Pytoremediation.--The term `pytoremediation' means 
     the use of green living plant material (including plants that 
     may be harvested and used to produce biofuel or other 
     bioproduces) to remove contaminants from water and soil.
       ``(11) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture, acting--
       ``(A) through the Natural Resources Conservation Service; 
     and
       ``(B) in cooperation with any applicable agricultural or 
     other agencies of a State.
       ``(12) Service contract.--The term `service contract' means 
     a legally binding agreement between 2 parties under which--
       ``(A) 1 party agrees to render 1 or more services in 
     accordance with the terms of the contract; and
       ``(B) the second party agrees to pay the first party for 
     the each service rendered.

     ``SEC. 1238A. ESTABLISHMENT AND PURPOSE OF PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall establish within the 
     Department a program to be known as the `farmland stewardship 
     program'.
       ``(2) Purpose.--The purpose of the program shall be to 
     modify and more effectively target conservation programs 
     administered by the Secretary to the specific conservation 
     needs of, and opportunities presented by, individual parcels 
     of eligible agricultural land.
       ``(b) Relation to Other Conservation Programs.--Under the 
     program, the Secretary may implement, alone or in 
     combination, the features of--
       ``(1) any conservation program administered by the 
     Secretary; or
       ``(2) any conservation program administered by another 
     Federal agency or a State or local government, if 
     implementation by the Secretary--
       ``(A) is feasible; and
       ``(B) is carried out with the consent of the applicable 
     administering agency or government.
       ``(3) Conservation enhancement programs.--
       ``(A) In general.--States, local governments, Indian 
     tribes, or any combination of those entities may submit, and 
     the Secretary may approve, a conservation enhancement program 
     that integrates 1 or more Federal agriculture and forestry 
     conservation programs and 1 or more State, local, or private 
     efforts to address, in critical areas and corridors, in a 
     manner that enhances the conservation benefits of the 
     individual programs and modifies programs to more effectively 
     address State and local needs--
       ``(i) water quality;
       ``(ii) wildlife;
       ``(iii) farm preservation; and
       ``(iv) any other conservation need.
       ``(B) Requirement.--
       ``(i) In general.--A conservation enhancement program 
     submitted under subparagraph (A) shall be designed to provide 
     benefits greater than benefits that, by reason of any factor 
     described in clause (ii), would be provided through the 
     individual application of a conservation program administered 
     by the Secretary.
       ``(ii) Factors.--Factors referred to in clause (i) 
     include--

       ``(I) conservation commitments of greater duration;
       ``(II) more intensive conservation benefits;
       ``(III) integrated treatment of special natural resource 
     problems (such as preservation and enhancement of natural 
     resource corridors); and
       ``(IV) improved economic viability for agriculture.

       ``(C) Approval.--
       ``(i) Definition of resources.--In this subparagraph, the 
     term `resources' means, with respect to any conservation 
     program administered by the Secretary--

       ``(I) acreage enrolled under the conservation program; and
       ``(II) funding made available to the Secretary to carry out 
     the conservation program with respect to acreage described in 
     subclause (I).

       ``(ii) Determination.--If the Secretary determines that a 
     plan submitted under subparagraph (A) meets the requirements 
     of subparagraph (B), the Secretary, in accordance with an 
     agreement, may use not more than 20 percent of the resources 
     of any conservation program administered by the Secretary to 
     implement the plan.
       ``(D) CRP acreage.--Acreage enrolled under an approved 
     conservation reserve enhancement program shall be considered 
     acreage of conservation reserve program that is committed to 
     conservation reserve enhancement program.
       ``(c) Funding.--
       ``(1) In general.--The program and agreements shall be 
     funded by the Secretary using--
       ``(A) the funding authorities of the conservation programs 
     that are implemented through the use of Farmland Stewardship 
     Agreements for the conservation purposes listed in Sec. 
     1238(4)(A) and (B)(i through x);
       ``(B) technical assistance in accordance with Sec. 1243(d); 
     and
       ``(C) such other funds as are appropriated to carry out the 
     Farmland Stewardship Program.
       ``(2) Cost sharing.--It shall be a requirement of the 
     Farmland Stewardship Program

[[Page 26835]]

     that the majority of the funds to carry out the Program must 
     come from existing conservation programs, which may be 
     Federal, State, regional, local, or private, that are 
     combined into and made a part of an agreement, with the 
     balance made up from matching funding contributions made by 
     State, regional, or local agencies and divisions of 
     government or from private funding sources. Funds from 
     existing programs may be used only to carry out the purposes 
     and intents of those programs to the degree that those 
     programs are made a part of a Farmland Stewardship Agreement. 
     Funding for other purposes or intents must come from the 
     funds provided under paragraphs (1)(B) and (1)(C) of 
     subsection (c) or from the matching funding contributions 
     made by State, regional, or local agencies and divisions of 
     government or from private funding sources.
       ``(d) Personnel Costs.--The Secretary shall use the Natural 
     Resources Conservation Service to carry out the Farmland 
     Stewardship Program in cooperation with the state department 
     of agriculture or other designated agency within the state. 
     The role of the Natural Resources Conservation Services shall 
     be limited to federal oversight of the program. The Natural 
     Resources Conservation Service shall perform its normal 
     functions with respect to the conservation programs that it 
     administers. However, it shall play no role in the assembly 
     of programs administered by other federal agencies into 
     Farmland Stewardship Agreements.
       ``(e) State Level Administration.--The state departments of 
     agriculture shall have primary responsibility for operating 
     the Farmland Stewardship Program. A state department of 
     agriculture may choose to operate the program on its own, may 
     collaborate with another local, state or federal agency, 
     conservation district or tribe in operating the program, or 
     may delegate responsibility to another state agency, such as 
     the state department of natural resources or the state 
     conservation district agency. The state department of 
     agriculture or designated state agency shall consult with the 
     agencies with management authority and responsibility for the 
     resources affected on properties on which Farmland 
     Stewardship Agreements are negotiated and assembled.
       ``(1) A state department of agriculture shall submit an 
     application to the Secretary requesting designation as the 
     `designated state agency' to operate the Farmland Stewardship 
     Program. If the state department of agriculture chooses to 
     delegate responsibility to another state agency, the 
     department of agriculture shall ask the governor to designate 
     another agency for this purpose and that agency shall submit 
     application to the Secretary.
       ``(2) The Secretary shall approve the request for 
     designation as the `designated state agency' if the agency 
     demonstrates that it has the capability to implement the 
     Farmland Stewardship Program and attests that it shall 
     conform with the confidentiality requirements in Sec. 
     1238B(g). Upon approval of the request, the Secretary shall 
     enter into a memorandum of understanding with the designated 
     state agency specifying the state's responsibilities in 
     carrying out the program and the amount of technical 
     assistance funds that shall be provided to the state on an 
     annual basis to operate the program, in accordance with 
     paragraphs (1)(C), (1)(E) and (1)(F) of subsection (g).
       ``(f) Annual Reports.--The designated state agency shall 
     annually submit to the Secretary and make publicly available 
     a report that describes--
       ``(1) The progress achieved, the funds expended, the 
     purposes for which funds were expended and monitoring and 
     evaluating results obtained by local contracting agencies, 
     and
       ``(2) The plans and objectives of the State for future 
     activities under the program.
       ``(g) Technical Assistance.--
       ``(1) Of the funds used from other programs and of funds 
     made available to carry out the Farmland Stewardship Program 
     for a fiscal year, the Secretary shall reserve not more than 
     twenty-five percent for the provision of technical assistance 
     under the Program. Of the funds made available--
       ``(A) not more than 1.5% shall be reserved for 
     administration, coordination and oversight through the 
     Natural Resources Conservation Service headquarters office;
       ``(B) not more than 1.5% shall be reserved for the Farmland 
     Stewardship Council to carry out its duties in cooperation 
     with the State Technical Committees, as provided under 
     section 1238E;
       ``(C) not more than 2.0% shall be reserved for 
     administration and coordination through the designated state 
     agency in the state where the property is located;
       ``(D) not more than 1.0% shall be reserved for 
     administration and coordination through the Natural Resources 
     Conservation Service state office, in the state where 
     property is located;
       ``(E) not more than 1.0% shall be reserved for 
     administration and coordination through the state 
     conservation district agency, unless such agency is the 
     designated state agency for administering this program, in 
     which case these funds shall be added to the funds in the 
     next paragraph; and
       ``(F) not less than 18% shall be reserved for local 
     technical assistance, carried out through a designated 
     `contracting agency' and subcontractors chosen by and working 
     with the contracting agency for preparing and executing 
     agreements and monitoring, evaluating and administering 
     agreements for their full term.
       ``(2) An owner or operator who is receiving a benefit under 
     this chapter shall be eligible to receive technical 
     assistance in accordance with section 1243(d) to assist the 
     owner or operator in carrying out a contract entered into 
     under this chapter.
       ``(h) Ensuring Availability of Funds.--All amounts required 
     for preparing, executing, carrying out, monitoring, 
     evaluating and administering an agreement for its entire term 
     shall be made available by the Federal, State, and local 
     agencies and private sector entities involved in funding the 
     agreement upon execution of the agreement.

     ``SEC. 1238B. USE OF FARMLAND STEWARDSHIP AGREEMENTS.

       ``(a) Agreements Authorized.--The Secretary shall carry out 
     the Farmland Stewardship Program by entering into service 
     contracts as determined by the Secretary, to be known as 
     farmland stewardship agreements, with the owners or operators 
     of eligible agricultural land to maintain and protect the 
     natural and agricultural resources on the land.
       ``(b) Legal Basis.--An agreement shall operate in all 
     respects as a service contract and, as such, provides the 
     Secretary with the opportunity to hire the owner or operator 
     of eligible agricultural land as a vendor to perform one or 
     more specific services for an equitable fee for each service 
     rendered. Any agency participating in the Farmland 
     Stewardship Program that has the authority to enter into 
     service contracts and to expend public funds under such 
     contracts may enter into or participate in the funding of an 
     agreement.
       ``(c) Basic Purposes.--An agreement with the owner or 
     operator of eligible agricultural land shall be used--
       ``(1) to negotiate a mutually agreeable set of guidelines, 
     practices, and procedures under which conservation practices 
     will be provided by the owner or operator to protect, 
     maintain, and, where possible, improve, the natural resources 
     on the land covered by the agreement in return for annual 
     payments to the owner or operator;
       ``(2) to enable an owner or operator to participate in one 
     or more of the conservation programs offered through agencies 
     at all levels of government and the private sector and, where 
     possible and feasible, comply with permit requirements and 
     regulations, through a one-stop, one-application process.
       ``(3) to implement a conservation program or series of 
     programs where there is no such program or to implement 
     conservation management activities where there is no such 
     activity;
       ``(4) to expand or maintain conservation practices and 
     resource management activities to a property where it is not 
     possible at the present time to negotiate or reach agreement 
     on a public purchase of a fee-simple or less-than-fee 
     interest in the property for conservation purposes; and
       ``(5) to negotiate and develop agreements with private 
     owners and operators to expand or maintain their 
     participation in conservation activities and programs; to 
     enable them to install or maintain best management practices 
     (BMPs) and other recommended practices to improve the 
     compatibility of agriculture, horticulture, silviculture, 
     aquaculture and equine activities with the environment; and 
     improve compliance with public health, safety and 
     environmental regulations.
       ``(d) Modification of Other Conservation Program 
     Elements.--If most, but not all, of the limitations, 
     conditions, policies and requirements of a conservation 
     program that is implemented in whole, or in part, through the 
     Farmland Stewardship Program are met with respect to a parcel 
     of eligible agricultural land, and the purposes to be 
     achieved by the agreement to be entered into for such land 
     are consistent with the purposes of the conservation program, 
     then the Secretary may waive any remaining limitations, 
     conditions, policies or requirements of the conservation 
     program that would otherwise prohibit or limit the agreement. 
     The Secretary may also grant requests to--
       ``(1) establish different or automatic enrollment criteria 
     than otherwise established by regulation or policy;
       ``(2) establish different compensation rates to the extent 
     the parties to the agreement consider justified;
       ``(3) establish different conservation practice criteria if 
     doing so will achieve greater conservation benefits;
       ``(4) provide more streamlined and integrated paperwork 
     requirements;
       ``(5) provide for the transfer of conservation program 
     funds to states with flexible incentives accounts; and
       ``(6) provide funds for an adaptive management process to 
     monitor the effectiveness of the Program for wildlife, the 
     protection of natural resources, economic effectiveness and 
     sustaining the agricultural economy.
       ``(7) For a waiver or exception to be considered, a 
     contracting agency or the designated state agency must--
       ``(A) Submit a request for a waiver to the Secretary or 
     Administrator who has responsibility for the program for 
     which a waiver

[[Page 26836]]

     or exception is being requested. Requests for waivers or 
     exceptions in programs administered by the United States 
     Department of Agriculture shall be submitted to the Secretary 
     of Agriculture, while requests for waivers or exceptions in 
     programs administered by the United States Department of 
     Interior shall be submitted to the Secretary of Interior and 
     requests for waivers or exceptions in programs administered 
     by the United States Environmental Protection Agency shall be 
     submitted to the Administrator of that Agency, and so forth.
       ``(B) The request shall--
       ``(i) explain why the property qualifies for participation 
     in the program;
       ``(ii) explain why it is necessary or desirable to make an 
     exception to or waive one or more program limitations, 
     conditions, policies or requirements;
       ``(iii) if possible, suggest alternative methods or 
     approaches to satisfying these limitations, conditions, 
     policies or requirements that are appropriate for the 
     property in question;
       ``(iv) request that the Secretary or Administrator grant 
     the exception or waiver, based on the documentation 
     submitted.
       ``(C) The Secretary or Administrator may request additional 
     documentation, or may suggest alternative methods of 
     overcoming program limitations or obstacles on the property 
     in question, prior to deciding whether or not to grant a 
     request for an exception or waiver.
       ``(D) Waivers and exceptions may be granted by a Secretary 
     or Administrator to allow additional flexibility in tailoring 
     conservation programs to the specific needs, opportunities 
     and challenges offered by individual parcels of land, and to 
     remove administrative and regulatory obstacles that 
     previously may have limited the use of these programs on 
     eligible agricultural land, or would prevent these programs 
     from being combined together through a Farmland Stewardship 
     Agreement. Waivers and exceptions may be granted only if the 
     purposes to be achieved by the program after the waiver or 
     exception is granted remain consistent with the purposes for 
     which the program was established.
       ``(E) The Secretaries and Administrators who receive 
     requests for waivers or exceptions under this chapter shall 
     respond to these requests within sixty (60) days of receipt. 
     Decisions on whether to grant a request shall be rendered 
     within one hundred eighty (180) days of receipt.
       ``(e) Provisional Contracts.--Provisional contracts shall 
     be used to provide payments to private landowners or 
     operators, and to the organization or agency that will 
     oversee the agreement, while baseline data is gathered, 
     documents are prepared and the formal agreement is being 
     negotiated. Provisional contracts shall pay for all technical 
     services required to establish an agreement. Provisional 
     contracts may be used to establish a Farmland Stewardship 
     Agreement, or any other type of conservation program, permit 
     or agreement on private land. Provisional contracts shall be 
     used during a two-year planning period, which may be extended 
     for up to two additional periods of six months each by mutual 
     agreement between the Secretary, the contracting agency and 
     the owner or operator.
       ``(f) Payments.--Payments to owners and operators shall be 
     made as provided in the programs that are combined as part of 
     a Farmland Stewardship Agreement. At the election of the 
     owner or operator, payments may be collected and combined 
     together by the designated state agency and issued to the 
     owner or operator in equal annual payments over the term of 
     the agreement. Payments for other services rendered by the 
     owner or operator shall be made as follows--
       ``(1) In general.--Programs that contain term or permanent 
     easements may be combined into a Farmland Stewardship 
     Agreement. Except for portions of a property affected by 
     easements, Farmland Stewardship Agreements shall provide no 
     interest in property and shall be solely contracts for 
     specific services. The fees paid shall be based on the 
     services provided. Compensation shall include--
       ``(A) Annual base payment.--All owners or operators 
     enrolled in a Farmland Stewardship Agreement shall receive an 
     annual base payment, at a rate to be determined by the 
     Secretary. The annual base payment shall be considered by the 
     Secretary to be satisfied if the owner or operator receives 
     annual payments from another conservation program that has 
     been incorporated into the Farmland Stewardship Agreement. In 
     addition, owners and operators shall receive--
       ``(B) Direct fees for services.--These fees shall be based 
     on the cost of providing each service. These fees may be set 
     by adopting private sector market prices for the performance 
     of similar services or by competitive bidding. Or, 
     alternatively--
       ``(C) Annual per-acre stewardship fees.--These fees shall 
     be based on the services provided, or the quantity of 
     benefits provided, with higher fees for greater benefits that 
     can be quantified. Such values shall be determined and set by 
     the Secretary. Or, alternatively--
       ``(D) Other incentives.--Other forms of compensation 
     acceptable to an owner or operator also may be considered. 
     These other forms of compensation may include federal, state 
     or local tax waivers, credits, reductions or exclusions; 
     priority processing of permits from state and local agencies; 
     consolidation of permits from state and local agencies into a 
     single operating plan; extended-duration permits from state 
     and local agencies; enhanced eligibility and priority listing 
     for participation in cost-share programs, loan programs, 
     conservation programs and permanent conservation easement or 
     public purchase programs; and priority access to technical 
     assistance services provided by federal and, where possible, 
     local, regional and state agencies.
       ``(g) Confidentiality of Data.--All information or data 
     provided to, obtained by or developed by the Secretary, or 
     any contractor to the Secretary or the designated state 
     agency, for the purpose of providing technical or financial 
     assistance to owners or operators in connection with the 
     United States Department of Agriculture's conservation 
     programs, or in connection with the Farmland Stewardship 
     Program, shall be--
       ``(1) Kept confidential by all officers and employees of 
     the Department and the designated state agency;
       ``(2) Not released, disclosed, made public or in any manner 
     communicated to any agency, state or person outside the 
     Department and the designated state agency; and
       ``(3) Not subject to any other law that would require the 
     information or data to be released, disclosed, made public or 
     in any way communicated to any agency, state or person 
     outside the Department and designated state agency.
       ``(4) Any information or data related to an individual farm 
     owner or operator may be reported only in an anonymous, 
     aggregated form as currently provided under the Department's 
     National Agricultural Statistic Services.
       ``(h) State and Local Conservation Priorities.--To the 
     maximum extent practicable, agreements shall address the 
     conservation priorities established by the State and locality 
     in which the eligible agricultural land are located. The 
     Secretary may adopt for this purpose a pre-existing state or 
     regional conservation plan or strategy that maps economically 
     and ecologically important land, including a plan developed 
     pursuant to planning requirements under Title VIII of the 
     2001 Interior Appropriations Act and Title IX of the 2001 
     Commerce, Justice, State Appropriations Act.
       ``(i) Watershed Enhancement.--To the extent practicable, 
     the Secretary shall encourage the development of Farmland 
     Stewardship Program applications on a watershed basis.

     ``SEC. 1238C. PARTNERSHIP APPROACH TO PROGRAM.

       ``(a) Authority of Secretary Exercised Through 
     Partnerships.--The Secretary may administer agreements under 
     the Farmland Stewardship Program in partnership with other 
     Federal, State, and local agencies whose programs are 
     incorporated into the Program under section 1238A, and in 
     partnership with state departments of agriculture or other 
     designated state agencies.
       ``(b) Designation and Use of Contracting Agencies.--Subject 
     to subsection (c), the Secretary may authorize a local 
     conservation district, resource conservation and development 
     council, extension service office, state-chartered 
     stewardship entity, nonprofit organization, local office of 
     the Department of Agriculture, or other participating 
     government agency to enter into and administer agreements 
     under the Program as a contracting agency on behalf of the 
     Secretary.
       ``(c) Conditions of Designation.--The Secretary may 
     designate an eligible district or office as a contracting 
     agency under subsection (b) only if the district or office--
       ``(1) submits a written request for such designation to the 
     Secretary;
       ``(2) affirms that it is willing to follow all guidelines 
     for executing and administering an agreement, as promulgated 
     by the Secretary;
       ``(3) demonstrates to the satisfaction of the Secretary 
     that it has established working relationships with owners and 
     operators of eligible agricultural land, and based on the 
     history of these working relationships, demonstrates that it 
     has the ability to work with owners and operators of eligible 
     agricultural land in a cooperative manner;
       ``(4) affirms its responsibility for preparing all 
     documentation for the agreement, negotiating its terms with 
     an owner or operator, monitoring compliance, making annual 
     reports to the Secretary, and administering the agreement 
     throughout its full term; and
       ``(5) demonstrates to the satisfaction of the Secretary 
     that it has or will have the necessary staff resources and 
     expertise to carry out its responsibilities under paragraphs 
     (3) and (4).
       ``(d) Delegation of Responsibility.--The Secretary may 
     delegate responsibility for reviewing and approving 
     applications from local contracting agencies to the state 
     department of agriculture or other designated state agency in 
     the state in which the property is located, provided that the 
     designated agency follows the criteria for reviewing and 
     approving applications as established by the Secretary and 
     consults with the agencies with management authority and 
     responsibility for the resources affected on properties

[[Page 26837]]

     on which Farmland Stewardship Agreements are negotiated and 
     assembled.

     ``SEC. 1238D. PARTICIPATION OF OWNERS AND OPERATORS OF 
                   ELIGIBLE AGRICULTURAL LAND.

       ``(a) Application and Approval Process.--To participate in 
     the Farmland Stewardship Program, an owner or operator of 
     eligible agricultural land shall--
       ``(1) submit to the Secretary an application indicating 
     interest in the Program and describing the owner's or 
     operator's property, its resources, and their ecological and 
     agricultural values;
       ``(2) submit to the Secretary the purpose and objectives of 
     the proposed agreement and a list of services to be provided, 
     or a management plan to be implemented, or both, under the 
     proposed agreement;
       ``(3) if the application and list are accepted by the 
     Secretary, enter into an agreement that details the purpose 
     and objectives of the agreement and the services to be 
     provided, or management plan to be implemented, or both, and 
     requires compliance with the other terms of the agreement.
       ``(b) Application on Behalf of an Owner or Operator.--A 
     designated contracting agency may submit the application 
     required by subsection (a) on behalf of an owner or operator 
     if the contracting agency has secured the consent of the 
     owner or operator to enter into an agreement.
       ``(c) Delegation of Responsibility.--The Secretary may 
     delegate responsibility for reviewing and approving 
     applications from or on behalf of an owner or operator to the 
     state department of agriculture or other designated agency in 
     the state in which the property is located, provided that the 
     designated agency follows the criteria for reviewing and 
     approving applications as established by the Secretary and 
     consults with the agencies with management authority and 
     responsibility for the resources affected on properties on 
     which Farmland Stewardship Agreements are negotiated and 
     assembled.

     ``SEC. 1238E. CREATION OF A FARMLAND STEWARDSHIP COUNCIL 
                   REGARDING PROGRAM.

       ``(a) Appointment.--The Secretary shall appoint an advisory 
     committee to assist the Secretary in carrying out the 
     Farmland Stewardship Program.
       ``(b) In General.--The Committee shall be known as the 
     Farmland Stewardship Council and shall operate on the federal 
     level in the same manner, with the same roles and 
     responsibilities and the same membership requirements as 
     provided in the policies and guidelines governing State 
     Technical Committees in Subpart B of Part 501 of the United 
     States Department of Agriculture's directives to the Natural 
     Resources Conservation Service regarding Conservation Program 
     Delivery.
       ``(c) Duties.--The Farmland Stewardship Council shall 
     cooperate in all respects with the State Technical Committees 
     and Resource Advisory Committees in each state. In addition 
     to the roles and responsibilities set forth for these 
     committees, the Farmland Stewardship Council shall assist the 
     Secretary in--
       ``(1) drafting such regulations as are necessary to carry 
     out the Program;
       ``(2) developing the documents necessary for executing 
     farmland stewardship agreements;
       ``(3) developing procedures and guidelines to facilitate 
     partnerships with other levels of government and nonprofit 
     organizations and assist contracting agencies in gathering 
     data and negotiating agreements;
       ``(4) designing criteria to consider applications submitted 
     under sections 1238C and 1238D;
       ``(5) providing assistance and training to designated state 
     agencies, project partners and contracting agencies;
       ``(6) assisting designated state agencies, project partners 
     and contracting agencies in combining together other 
     conservation programs into agreements;
       ``(7) tailoring the agreements to each individual property;
       ``(8) developing agreements that are highly flexible and 
     can be used to respond to and fit in with the conservation 
     needs and opportunities on any property in the United States;
       ``(9) developing a methodology for determining a fair 
     market price in each state for each service rendered by a 
     private owner or operator under a Farmland Stewardship 
     Agreement;
       ``(10) developing guidelines for administering the Farmland 
     Stewardship Program on a national basis that respond to the 
     conservation needs and opportunities in each state and in 
     each rural community in which Farmland Stewardship Agreements 
     may be implemented;
       ``(11) monitoring progress under the agreements; and
       ``(12) reviewing and recommending possible modifications, 
     additions, adaptations, improvements, enhancements, or other 
     changes to the Program to improve the way in which the 
     program operates.
       ``(d) Membership.--The Farmland Stewardship Council shall 
     have the same membership requirements as the State Technical 
     Committees, except that C
       ``(1) All participating members must have offices located 
     in the Washington, D.C. metropolitan area;
       ``(2) The list of members representing `Federal Agencies 
     and Other Groups Required by Law' shall be expanded to 
     include all federal agencies whose programs might be included 
     in Farmland Stewardship Program;
       ``(3) State agency representation shall be provided by the 
     organizations located in the Washington, D.C. metropolitan 
     area representing state agencies and shall include 
     individuals from organizations representing wetland managers, 
     environmental councils, fish and wildlife agencies, counties, 
     resource and conservation development councils, state 
     conservation agencies, state departments of agriculture, 
     state foresters, and governors; and
       ``(4) Private Interest Membership shall be comprised of 21 
     members representing the principal agricultural commodity 
     groups, farm organizations, national forestry associations, 
     woodland owners, conservation districts, rural stewardship 
     organizations, and up to a maximum of six (6) conservation 
     and environment organizations, including organizations with 
     an emphasis on wildlife, rangeland management and soil and 
     water conservation.
       ``(5) The Secretary shall appoint one of the Private 
     Interest Members to serve as chair. The Private Interest 
     Members shall appoint another member to serve as co-chair.
       ``(6) The Secretary shall follow equal opportunity 
     practices in making appointments to the Farmland Stewardship 
     Council. To ensure that recommendations of the Council take 
     into account the needs of the diverse groups served by the 
     United States Department of Agriculture, membership will 
     include, to the extent practicable, individuals with 
     demonstrated ability to represent minorities, women, and 
     persons with disabilities.
       ``(e) Personnel Costs.--The technical assistance funds 
     designated in Sec. 1238A(g)(1)(B) may be used to provide 
     staff positions and support for the Farmland Stewardship 
     Council to--
       ``(1) carry out its duties as provided in subsection (c);
       ``(2) ensure communication and coordination with all 
     federal agencies, state organizations and Private Interest 
     Members on the council, and the constituencies represented by 
     these agencies, organizations and members;
       ``(3) ensure communication and coordination with the State 
     Technical Committees and Resource Advisory Committees in each 
     state;
       ``(4) solicit input from agricultural producers and owners 
     and operators of private forestry operations and woodland 
     through the organizations represented on the council and 
     other organizations, as necessary; and
       ``(5) take into consideration the needs and interests of 
     producers of different agricultural commodities and forest 
     products in different regions of the nation.
       ``(6) Representatives of federal agencies and state 
     organizations shall serve without additional compensation, 
     except for reimbursement of travel expenses and per diem 
     costs which are incurred as a result of their Council 
     responsibilities and service.
       ``(7) Payments may be made to the organizations serving as 
     Private Interest Members for the purposes of providing staff 
     and support to carry out paragraphs (1) through (5). The 
     amounts and duration of these payments and the number of 
     staff positions to be created within Private Interest Member 
     organizations to carry out these duties shall be determined 
     by the Secretary.
       ``(f) Reports.--The Farmland Stewardship Council shall 
     annually submit to the Secretary and make publicly available 
     a report that describes--
       ``(1) The progress achieved, the funds expended, the 
     purposes for which funds were expended and results obtained 
     by the council; and
       ``(2) The plans and objectives for future activities.
       ``(g) Termination.--The Farmland Stewardship Council shall 
     remain in force for as long as the Secretary administers the 
     Farmland Stewardship Program, except that the council will 
     terminate in 2011 unless renewed by Congress in the next Farm 
     Bill.

     ``SEC. 1238F. STATE BLOCK GRANT PROGRAM.

       ``(a) In General.--The Secretary of Agriculture may provide 
     agricultural stewardship block grants on an annual basis to 
     state departments of agriculture as a means of providing 
     assistance and support, cost-share payments, incentive 
     payments, technical assistance or education to agricultural 
     producers and owners and operators of agriculture, 
     silviculture, aquaculture, horticulture or equine operations 
     for environmental enhancements, best management practices, or 
     air and water quality improvements addressing resource 
     concerns. Under the block grant program, states shall have 
     maximum flexibility to--
       ``(1) Address threats to soil, air, water and related 
     natural resources including grazing land, wetland and 
     wildlife habitats;
       ``(2) Comply with state and federal environmental laws;
       ``(3) Make beneficial, cost-effective changes to cropping 
     systems; grazing management; nutrient, pest, or irrigation 
     management; land uses; or other measures needed to conserve 
     and improve soil, water, and related natural resources; and

[[Page 26838]]

       ``(4) Implement other practices or obtain other services to 
     benefit the public through Farmland Stewardship Agreements.
       ``(b) Program Application.--A state department of 
     agriculture, in collaboration with other state and local 
     agencies, conservation districts, tribes, partners or 
     organizations, may submit an application to the Secretary 
     requesting approval for an agricultural stewardship block 
     grant program. The Secretary shall approve the grant request 
     if the program proposed by the state maintains or improves 
     the state's natural resources, and the state has the 
     capability to implement the agricultural stewardship program. 
     Upon approval of a stewardship program submitted by a state 
     department of agriculture, the Secretary shall--
       ``(1) Allocate funds to the state for administration of the 
     program, and
       ``(2) Enter into a memorandum of understanding with the 
     state department of agriculture specifying the state's 
     responsibilities in carrying out the program and the amount 
     of the block grant that shall be provided to the state on an 
     annual basis.
       ``(c) Participation.--A state department of agriculture may 
     choose to operate the block grant program, may collaborate 
     with another local, state or federal agency, conservation 
     district or tribe in operating the program, or may delegate 
     responsibility for the program to another local, state or 
     federal agency, such as the state office of the United States 
     Department of Agriculture, Natural Resources Conservation 
     Service, or the state conservation district agency.
       ``(d) Coordination.--A state department of agriculture may 
     establish an agricultural stewardship planning committee, or 
     other advisory body, or expand the authority of an existing 
     body, to design, develop and implement the state's 
     agricultural stewardship block grant program. Such planning 
     committee or advisory committee shall cooperate fully with 
     the Farmland Stewardship Council established in Sec. 1238E 
     and the State Technical Committee and Resource Advisory 
     Committee in the state.
       ``(e) Delivery.--The state department of agriculture, or 
     other designated agency, shall administer the stewardship 
     block grants through existing delivery systems, 
     infrastructure or processes, including contracts, cooperative 
     agreements, and grants with local, state and federal agencies 
     that address resource concerns and were prioritized and 
     developed in cooperation with locally-led advisory groups.
       ``(f) Strategic Plans.--The state department of agriculture 
     may collaborate with a local advisory or planning committee 
     to develop a state strategic plan for the enhancement and 
     protection of land, air, water and wildlife through resource 
     planning. The state strategic plan shall be submitted to the 
     Secretary annually in a report on the implementation of 
     projects, activities, and other measures under the block 
     grant program. In general, state strategic plans shall 
     include--
       ``(1) A description of goals and objectives, including 
     outcome-related goals for designated program activities;
       ``(2) A description of how the goals and objectives are to 
     be achieved, including a description of the operational 
     processes, skills and technologies, and the human capital, 
     information and other resources required to meet the goals 
     and objectives;
       ``(3) A description of performance indicators to be used in 
     measuring or assessing the relevant output service levels and 
     outcomes of the program activities; and
       ``(4) A description of the program evaluation to be used in 
     comparing actual results with established goals and 
     objectives.
       ``(g) Annual Reports.--The state department of agriculture 
     shall annually submit to the Secretary and make publicly 
     available a report that describes--
       ``(1) The progress achieved, the funds expended, the 
     purposes for which funds were expended and monitoring results 
     obtained by the agricultural stewardship planning committee 
     or local advisory group, where applicable; and
       ``(2) The plans and objectives of the State for future 
     activities under the program.
       ``(h) Coordination With Federal Agencies.--To the maximum 
     extent possible, the Secretary shall coordinate with other 
     federal departments and agencies to acknowledge and ensure 
     that the block grant program is consistent with and is 
     meeting the needs and desired public benefits of other 
     federal programs on a state-by-state basis.
       ``(i) Payments.--The agricultural stewardship program may 
     be used as a means of providing compensation to owners and 
     operators for implementing on-farm practices that enhance 
     environmental goals. The type of financial assistance may be 
     in the form of cost-share payments, incentive payments or 
     Farmland Stewardship Agreements, as determined by guidelines 
     established by the state department of agriculture and the 
     agricultural stewardship planning committee.
       ``(j) Program Expenditures.--States shall have flexibility 
     to target resources where needed, including the ability to 
     allocate dollars between payments to owners and operators or 
     technical assistance based upon needs and priorities.
       ``(k) Method of Payment.--A state department of agriculture 
     may collaborate with the agricultural stewardship planning 
     committee or other local advisory group to determine payment 
     levels and methods for individual program activities and 
     projects, including any conditions, limitations or 
     restrictions. Payments may be made--
       ``(1) To compensate for a verifiable or measurable loss;
       ``(2) Under a binding agreement providing for payments to 
     carry out specific activities, measures, practices or 
     services prioritized by the state department of agriculture, 
     the agricultural stewardship planning committee or a local 
     advisory board; or
       ``(3) To fund portions of projects and measures to 
     complement other federal programs, including the Conservation 
     Reserve Program, the Environmental Quality Incentives 
     Program, the Wetlands Reserve Program, the Forestry 
     Incentives Program, the Farmland Protection Program, and the 
     Wildlife Habitat Incentives Program.''.

     SEC. 257. SMALL WATERSHED REHABILITATION PROGRAM.

       Section 14(h) of the Watershed Protection and Flood 
     Prevention Act (16 U.S.C. 1012(h)) is amended--
       (1) by adding ``and'' at the end of paragraph (1); and
       (2) by striking all that follows paragraph (1) and 
     inserting the following:
       ``(2) $15,000,000 for fiscal year 2002 and each succeeding 
     fiscal year.''.

     SEC. 258. PROVISION OF ASSISTANCE FOR REPAUPO CREEK TIDE GATE 
                   AND DIKE RESTORATION PROJECT, NEW JERSEY.

       Notwithstanding section 403 of the Agricultural Credit Act 
     of 1978 (16 U.S.C. 2203), the Secretary of Agriculture, 
     acting through the Natural Resources Conservation Service, 
     shall provide assistance for planning and implementation of 
     the Repaupo Creek Tide Gate and Dike Restoration Project in 
     the State of New Jersey.

     SEC. 259. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

       Section 1256 of the Food Security Act of 1985 (16 U.S.C. 
     2101 note) is amended to read as follows:

     ``SEC. 1256. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

       ``(a) In General.--The Secretary shall establish a national 
     grassroots water protection program to more effectively use 
     onsite technical assistance capabilities of each State rural 
     water association that, as of the date of enactment of the 
     Farm Security Act of 2001, operates a wellhead or groundwater 
     protection program in the State.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $5,000,000 for 
     each fiscal year.''.

                          Subtitle G--Repeals

     SEC. 261. PROVISIONS OF THE FOOD SECURITY ACT OF 1985.

       (a) Wetlands Mitigation Banking Program.--Section 1222 of 
     the Food Security Act of 1985 (16 U.S.C. 3822) is amended by 
     striking subsection (k).
       (b) Conservation Reserve Program.--
       (1) Repeals.--(A) Section 1234(f) of such Act (16 U.S.C. 
     3834(f)) is amended by striking paragraph (3) and by 
     redesignating paragraph (4) as paragraph (3).
       (B) Section 1236 of such Act (16 U.S.C. 3836) is repealed.
       (2) Conforming amendments.--(A) Section 1232(a)(5) of such 
     Act (16 U.S.C. 3832(a)(5)) is amended by striking ``in 
     addition to the remedies provided under section 1236(d),''.
       (B) Section 1234(d)(4) of such Act (16 U.S.C. 3834(d)(4)) 
     is amended by striking ``subsection (f)(4)'' and inserting 
     ``subsection (f)(3)''.
       (c) Wetlands Reserve Program.--Section 1237D(c) of such Act 
     (16 U.S.C. 3837d(c)) is amended by striking paragraph (3).
       (d) Environmental Easement Program.--
       (1) Repeal.--Chapter 3 of subtitle D of title XII of such 
     Act (16 U.S.C. 3839-3839d) is repealed.
       (2) Conforming amendment.--Section 1243(b)(3) of such Act 
     (16 U.S.C. 3843(b)(3)) is amended by striking ``or 3''.
       (e) Conservation Farm Option.--Chapter 5 of subtitle D of 
     title XII of such Act (16 U.S.C. 3839bb) is repealed.

     SEC. 262. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION 
                   ACT.

       Subtitle F of title III of the Federal Agriculture 
     Improvement and Reform Act of 1996 (16 U.S.C. 5801-5809) is 
     repealed.

                            TITLE III--TRADE

     SEC. 301. MARKET ACCESS PROGRAM.

       Section 211(c)(1) of the Agricultural Trade Act of 1978 (7 
     U.S.C. 5641(c)(1)) is amended--
       (1) by striking ``and not more'' and inserting ``not 
     more'';
       (2) by inserting ``and not more than $200,000,000 for each 
     of fiscal years 2002 through 2011,'' after ``2002,''; and
       (3) by striking ``2002'' and inserting ``2001''.

     SEC. 302. FOOD FOR PROGRESS.

       (a) In General.--Subsections (f)(3), (g), (k), and (l)(1) 
     of section 1110 of the Food Security Act of 1985 (7 U.S.C. 
     1736o) are each amended by striking ``2002'' and inserting 
     ``2011''.
       (b) Increase in Funding.--Section 1110(l)(1) of the Food 
     Security Act of 1985 (7 U.S.C.1736o(l)(1)) is amended--
       (1) by striking ``2002'' and inserting ``2011''; and
       (2) by striking ``$10,000,000'' and inserting 
     ``$15,000,000.
       (c) Exclusion From Limitation.--Section 1110(e)(2) of the 
     Food Security Act of 1985 (7

[[Page 26839]]

     U.S.C. 1736o(e)(2)) is amended by inserting ``, and 
     subsection (g) does not apply to such commodities furnished 
     on a grant basis or on credit terms under title I of the 
     Agricultural Trade Development Act of 1954'' before the final 
     period.
       (d) Transportation Costs.--Section 1110(f)(3) of the Food 
     Security Act of 1985 (7 U.S.C. 1736o(f)(3)) is amended by 
     striking ``$30,000,000'' and inserting ``$40,000,000''.
       (e) Amounts of Commodities.--Section 1110(g) of the Food 
     Security Act of 1985 (7 U.S.C. 1736o(g)) is amended by 
     striking ``500,000'' and inserting ``1,000,000''.
       (f) Multiyear Basis.--Section 1110(j) of the Food Security 
     Act of 1985 (7 U.S.C. 1736o(j)) is amended--
       (1) by striking ``may'' and inserting ``is encouraged''; 
     and
       (2) by inserting ``to'' before ``approve''.
       (g) Monetization.--Section 1110(l)(3) of the Food Security 
     Act of 1985 (7 U.S.C. 1736o(l)(3)) is amended by striking 
     ``local currencies'' and inserting ``proceeds''.
       (h) New Provisions.--Section 1110 of the Food Security Act 
     of 1985 (7 U.S.C. 1736o) is amended by adding at the end the 
     following:
       ``(p) The Secretary is encouraged to finalize program 
     agreements and resource requests for programs under this 
     section before the beginning of the relevant fiscal year. By 
     November 1 of the relevant fiscal year, the Secretary shall 
     provide to the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives, and 
     the Committee on Agriculture, Nutrition, and Forestry of the 
     Senate a list of approved programs, countries, and 
     commodities, and the total amounts of funds approved for 
     transportation and administrative costs, under this 
     section.''.

     SEC. 303. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY 
                   COUNTRIES.

       (a) Use of Currencies.--Section 416(b)(7)(D) of the 
     Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is 
     amended--
       (1) in clauses (i) and (iii), by striking ``foreign 
     currency'' each place it appears;
       (2) in clause (ii)--
       (A) by striking ``Foreign currencies'' and inserting 
     ``Proceeds''; and
       (B) by striking ``foreign currency''; and
       (3) in clause (iv)--
       (A) by striking ``Foreign currency proceeds'' and inserting 
     ``Proceeds'';
       (B) by striking ``country of origin'' the second place it 
     appears and all that follows through ``as necessary to 
     expedite'' and inserting ``country of origin as necessary to 
     expedite'';
       (C) by striking ``; or'' and inserting a period; and
       (D) by striking subclause (II).
       (b) Implementation of Agreements.--Section 416(b)(8)(A) of 
     the Agricultural Act of 1949 (7 U.S.C. 1431(b)(8)(A)) is 
     amended--
       (1) by inserting ``(i)'' after ``(A)''; and
       (2) by adding at the end the following new clauses:
       ``(ii) The Secretary shall publish in the Federal Register, 
     not later than October 31 of each fiscal year, an estimate of 
     the commodities that shall be available under this section 
     for that fiscal year.
       ``(iii) The Secretary is encouraged to finalize program 
     agreements under this section not later than December 31 of 
     each fiscal year.''.

     SEC. 304. EXPORT ENHANCEMENT PROGRAM.

       Section 301(e)(1)(G) of the Agricultural Trade Act of 1978 
     (7 U.S.C. 5651(e)(1)(G)) is amended by inserting ``and for 
     each fiscal year thereafter through fiscal year 2011'' after 
     ``2002''.

     SEC. 305. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

       (a) In General.--Section 703 of the Agricultural Trade Act 
     of 1978 (7 U.S.C.5723) is amended--
       (1) by inserting ``(a) Prior Years.--'' before ``There'';
       (2) by striking ``2002'' and inserting ``2001''; and
       (3) by adding at the end the following new subsection:
       ``(b) Fiscal 2002 and Later.--For each of fiscal years 2002 
     through 2011 there are authorized to be appropriated such 
     sums as may be necessary to carry out this title, and, in 
     addition to any sums so appropriated, the Secretary shall use 
     $37,000,000 of the funds of, or an equal value of the 
     commodities of, the Commodity Credit Corporation to carry out 
     this title.''.
       (b) Value Added Products.--
       (1) In general.--Section 702(a) of the Agricultural Trade 
     Act of 1978 (7 U.S.C. 5721 et seq.) is amended by inserting 
     ``, with a significant emphasis on the importance of the 
     export of value-added United States agricultural products 
     into emerging markets'' after ``products''.
       (2) Report to Congress.--Section 702 of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5722) is amended by adding at the 
     end the following:
       ``(c) Report to Congress.--
       ``(1) In general.--The Secretary shall report annually to 
     appropriate congressional committees the amount of funding 
     provided, types of programs funded, the value added products 
     that have been targeted, and the foreign markets for those 
     products that have been developed.
       ``(2) Definition.--In this subsection, the term 
     `appropriate congressional committees' means--
       ``(A) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       ``(B) the Committee on Agriculture, Nutrition and Forestry 
     and the Committee on Foreign Relations of the Senate.''.

     SEC. 306. EXPORT CREDIT GUARANTEE PROGRAM.

       (a) Reauthorization.--Section 211(b)(1) of the Agricultural 
     Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by 
     striking ``2002'' and inserting ``2011''.
       (b) Processed and High Value Products.--Section 202(k)(1) 
     of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) 
     is amended by striking ``, 2001, and 2002'' and inserting 
     ``through 2011''.

     SEC. 307. FOOD FOR PEACE (PUBLIC LAW 480).

       The Agricultural Trade Development and Assistance Act of 
     1954 (7 U.S.C. 1691 et seq.) is amended--
       (1) in section 2 (7 U.S.C. 1691), by striking paragraph (2) 
     and inserting the following:
       ``(2) promote broad-based, equitable, and sustainable 
     development, including agricultural development as well as 
     conflict prevention;'';
       (2) in section 202(e)(1) (7 U.S.C. 1722(e)(1)), by striking 
     ``not less than $10,000,000, and not more than $28,000,000'' 
     and inserting ``not less than 5 percent and not more than 10 
     percent of such funds'';
       (3) in section 203(a) (7 U.S.C. 1723(a)), by striking ``the 
     recipient country, or in a country'' and inserting ``one or 
     more recipient countries, or one or more countries'';
       (4) in section 203(c) (7 U.S.C. 1723(c))--
       (A) by striking ``foreign currency''; and
       (B) by striking ``the recipient country, or in a country'' 
     and inserting ``one or more recipient countries, or one or 
     more countries'';
       (5) in section 203(d) (7 U.S.C. 1723(d))--
       (A) by striking ``Foreign currencies'' and inserting 
     ``Proceeds'';
       (B) in paragraph (2)--
       (i) by striking ``income generating'' and inserting 
     ``income-generating''; and
       (ii) by striking ``the recipient country or within a 
     country'' and inserting ``one or more recipient countries, or 
     one or more countries''; and
       (C) in paragraph (3), by inserting a comma after 
     ``invested'' and ``used'';
       (6) in section 204(a) (7 U.S.C. 1724(a))--
       (A) by striking ``1996 through 2002'' and inserting ``2002 
     through 2011''; and
       (B) by striking ``2,025,000'' and inserting ``2,250,000'';
       (7) in section 205(f) (7 U.S.C. 1725(f)), by striking 
     ``2002'' and inserting ``2011'';
       (8) by striking section 206 (7 U.S.C. 1726);
       (9) in section 207(a) (7 U.S.C. 1726a(a))--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by striking paragraph (1) and inserting the following:
       ``(1) Recipient countries.--A proposal to enter into a non-
     emergency food assistance agreement under this title shall 
     identify the recipient country or countries subject to the 
     agreement.
       ``(2) Time for decision.--Not later than 120 days after 
     receipt by the Administrator of a proposal submitted by an 
     eligible organization under this title, the Administrator 
     shall make a decision concerning such proposal.'';
       (10) in section 208(f), by striking ``2002'' and inserting 
     ``2011'';
       (11) in section 403 (7 U.S.C. 1733), by inserting after 
     subsection (k) the following:
       ``(l) Sales Procedures.--Subsections (b) and (h) shall 
     apply to sales of commodities to generate proceeds for titles 
     II and III of this Act, section 416(b) of the Agricultural 
     Act of 1949, and section 1110 of the Food and Security Act of 
     1985. Such sales transactions may be in United States dollars 
     and other currencies.'';
       (12) in section 407(c)(4), by striking ``2001 and 2002'' 
     and inserting ``2001 through 2011'';
       (13) in section 407(c)(1) (7 U.S.C. 1736a(c)(1))--
       (A) by striking ``The Administrator'' and inserting ``(A) 
     The Administrator''; and
       (B) by adding at the end the following:
       ``(B) In the case of commodities made available for 
     nonemergency assistance under title II for least developed 
     countries that meet the poverty and other eligibility 
     criteria established by the International Bank for 
     Reconstruction and Development for financing under the 
     International Development Association, the Administrator may 
     pay the transportation costs incurred in moving the 
     commodities from designated points of entry or ports of entry 
     abroad to storage and distribution sites and associated 
     storage and distribution costs.''.
       (14) in section 408, by striking ``2002'' and inserting 
     ``2011''; and
       (15) in section 501(c), by striking ``2002'' and inserting 
     ``2011''.

     SEC. 308. EMERGING MARKETS.

       Section 1542 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5622 note) is amended--
       (1) in subsections (a) and (d)(1)(A)(i), by striking 
     ``2002'' and inserting ``2011''; and
       (2) in subsection (d)(1)(H), by striking ``$10,000,000 in 
     any fiscal year'' and inserting ``$13,000,000 for each of 
     fiscal years 2002 through 2011''.

     SEC. 309. BILL EMERSON HUMANITARIAN TRUST.

       Subsections (b)(2)(B)(i), (h)(1), and (h)(2) of section 302 
     of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1) 
     are each

[[Page 26840]]

     amended by striking ``2002'' and inserting ``2011''.

     SEC. 310. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish an export assistance program (referred to in this 
     section as the ``program'') to address unique barriers that 
     prohibit or threaten the export of United States specialty 
     crops.


       (b) Purpose.--The program shall provide direct assistance 
     through public and private sector projects and technical 
     assistance to remove, resolve, or mitigate sanitary and 
     phytosanitary and related barriers to trade.
       (c) Priority.--The program shall address time sensitive and 
     strategic market access projects based on--
       (1) trade effect on market retention, market access, and 
     market expansion; and
       (2) trade impact.
       (d) Funding.--The Secretary shall make available $3,000,000 
     for each of fiscal years 2002 through 2011 of the funds of, 
     or an equal value of commodities owned by, the Commodity 
     Credit Corporation.

     SEC. 311. FARMERS FOR AFRICA AND CARIBBEAN BASIN PROGRAM.

       (a) Findings.--Congress finds the following:
       (1) Many African farmers and farmers in Caribbean Basin 
     countries use antiquated techniques to produce their crops, 
     which result in poor crop quality and low crop yields.
       (2) Many of these farmers are losing business to farmers in 
     European and Asian countries who use advanced planting and 
     production techniques and are supplying agricultural produce 
     to restaurants, resorts, tourists, grocery stores, and other 
     consumers in Africa and Caribbean Basin countries.
       (3) A need exists for the training of African farmers and 
     farmers in Caribbean Basin countries and other developing 
     countries in farming techniques that are appropriate for the 
     majority of eligible farmers in African or Caribbean 
     countries, including standard growing practices, insecticide 
     and sanitation procedures, and other farming methods that 
     will produce increased yields of more nutritious and 
     healthful crops.
       (4) African-American and other American farmers, as well as 
     banking and insurance professionals, are a ready source of 
     agribusiness expertise that would be invaluable for African 
     farmers and farmers in Caribbean Basin countries.
       (5) A United States commitment is appropriate to support 
     the development of a comprehensive agricultural skills 
     training program for these farmers that focuses on--
       (A) improving knowledge of insecticide and sanitation 
     procedures to prevent crop destruction;
       (B) teaching modern farming techniques, including the 
     identification and development of standard growing practices 
     and the establishment of systems for recordkeeping, that 
     would facilitate a continual analysis of crop production;
       (C) the use and maintenance of farming equipment that is 
     appropriate for the majority of eligible farmers in African 
     or Caribbean Basin countries;
       (D) expansion of small farming operations into agribusiness 
     enterprises through the development and use of village 
     banking systems and the use of agricultural risk insurance 
     pilot products, resulting in increased access to credit for 
     these farmers; and
       (E) marketing crop yields to prospective purchasers 
     (businesses and individuals) for local needs and export.
       (6) The participation of African-American and other 
     American farmers and American agricultural farming 
     specialists in such a training program promises the added 
     benefit of improving access to African and Caribbean Basin 
     markets for American farmers and United States farm equipment 
     and products and business linkages for United States 
     insurance providers offering technical assistance on, among 
     other things, agricultural risk insurance products.
       (7) Existing programs that promote the exchange of 
     agricultural knowledge and expertise through the exchange of 
     American and foreign farmers have been effective in promoting 
     improved agricultural techniques and food security, and, 
     thus, the extension of additional resources to such farmer-
     to- farmer exchanges is warranted.
       (b) Definitions.--In this section:
       (1) Agricultural farming specialist.--The term 
     ``agricultural farming specialist'' means an individual 
     trained to transfer information and technical support 
     relating to agribusiness, food security, the mitigation and 
     alleviation of hunger, the mitigation of agricultural and 
     farm risk, maximization of crop yields, agricultural trade, 
     and other needs specific to a geographical location as 
     determined by the President.
       (2) Caribbean basin country.--The term ``Caribbean Basin 
     country'' means a country eligible for designation as a 
     beneficiary country under section 212 of the Caribbean Basin 
     Economic Recovery Act (19 U.S.C. 2702).
       (3) Eligible farmer.--The term ``eligible farmer'' means an 
     individual owning or working on farm land (as defined by a 
     particular country's laws relating to property) in the sub-
     Saharan region of the continent of Africa, in a Caribbean 
     Basin country, or in any other developing country in which 
     the President determines there is a need for farming 
     expertise or for information or technical support described 
     in paragraph (1).
       (4) Program.--The term ``Program'' means the Farmers for 
     Africa and Caribbean Basin Program established under this 
     section.
       (c) Establishment of Program.--The President shall 
     establish a grant program, to be known as the ``Farmers for 
     Africa and Caribbean Basin Program'', to assist eligible 
     organizations in carrying out bilateral exchange programs 
     whereby African-American and other American farmers and 
     American agricultural farming specialists share technical 
     knowledge with eligible farmers regarding--
       (1) maximization of crop yields;
       (2) use of agricultural risk insurance as financial tools 
     and a means of risk management (as allowed by Annex II of the 
     World Trade Organization rules);
       (3) expansion of trade in agricultural products;
       (4) enhancement of local food security;
       (5) the mitigation and alleviation of hunger;
       (6) marketing agricultural products in local, regional, and 
     international markets; and
       (7) other ways to improve farming in countries in which 
     there are eligible farmers.
       (d) Eligible Grantees.--The President may make a grant 
     under the Program to--
       (1) a college or university, including a historically black 
     college or university, or a foundation maintained by a 
     college or university; and
       (2) a private organization or corporation, including 
     grassroots organizations, with an established and 
     demonstrated capacity to carry out such a bilateral exchange 
     program.
       (e) Terms of Program.--(1) It is the goal of the Program 
     that at least 1,000 farmers participate in the training 
     program by December 31, 2005, of which 80 percent of the 
     total number of participating farmers will be African farmers 
     or farmers in Caribbean Basin countries and 20 percent of the 
     total number of participating farmers will be American 
     farmers.
       (2) Training under the Program will be provided to eligible 
     farmers in groups to ensure that information is shared and 
     passed on to other eligible farmers. Eligible farmers will be 
     trained to be specialists in their home communities and will 
     be encouraged not to retain enhanced farming technology for 
     their own personal enrichment.
       (3) Through partnerships with American businesses, the 
     Program will utilize the commercial industrial capability of 
     businesses dealing in agriculture to train eligible farmers 
     on farming equipment that is appropriate for the majority of 
     eligible farmers in African or Caribbean Basin countries and 
     to introduce eligible farmers to the use of insurance as a 
     risk management tool.
       (f) Selection of Participants.--(1) The selection of 
     eligible farmers, as well as African-American and other 
     American farmers and agricultural farming specialists, to 
     participate in the Program shall be made by grant recipients 
     using an application process approved by the President.
       (2) Participating farmers must have sufficient farm or 
     agribusiness experience and have obtained certain targets 
     regarding the productivity of their farm or agribusiness.
       (g) Grant Period.--The President may make grants under the 
     Program during a period of 5 years beginning on October 1 of 
     the first fiscal year for which funds are made available to 
     carry out the Program.
       (h) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2002 through 2011.

     SEC. 312. GEORGE MCGOVERN-ROBERT DOLE INTERNATIONAL FOOD FOR 
                   EDUCATION AND CHILD NUTRITION PROGRAM.

       (a) In General.--The President may, subject to subsection 
     (j), direct the procurement of commodities and the provision 
     of financial and technical assistance to carry out--
       (1) preschool and school feeding programs in foreign 
     countries to improve food security, reduce the incidence of 
     hunger, and improve literacy and primary education, 
     particularly with respect to girls; and
       (2) maternal, infant, and child nutrition programs for 
     pregnant women, nursing mothers, infants, and children who 
     are 5 years of age or younger.
       (b) Eligible Commodities and Cost Items.--Notwithstanding 
     any other provision of law--
       (1) any agricultural commodity is eligible for distribution 
     under this section;
       (2) as necessary to achieve the purposes of this section--
       (A) funds may be used to pay the transportation costs 
     incurred in moving commodities (including prepositioned 
     commodities) provided under this section from the designated 
     points of entry or ports of entry of one or more recipient 
     countries to storage and distribution sites in these 
     countries, and associated storage and distribution costs;
       (B) funds may be used to pay the costs of activities 
     conducted in the recipient countries by a nonprofit voluntary 
     organization, cooperative, or intergovernmental agency or 
     organization that would enhance the effectiveness of the 
     activities implemented by such entities under this section; 
     and
       (C) funds may be provided to meet the allowable 
     administrative expenses of private

[[Page 26841]]

     voluntary organizations, cooperatives, or intergovernmental 
     organizations which are implementing activities under this 
     section; and
       (3) for the purposes of this section, the term 
     ``agricultural commodities'' includes any agricultural 
     commodity, or the products thereof, produced in the United 
     States.
       (c) General Authorities.--The President shall designate one 
     or more Federal agencies to--
       (1) implement the program established under this section;
       (2) ensure that the program established under this section 
     is consistent with the foreign policy and development 
     assistance objectives of the United States; and
       (3) consider, in determining whether a country should 
     receive assistance under this section, whether the government 
     of the country is taking concrete steps to improve the 
     preschool and school systems in its country.
       (d) Eligible Recipients.--Assistance may be provided under 
     this section to private voluntary organizations, 
     cooperatives, intergovernmental organizations, governments 
     and their agencies, and other organizations.
       (e) Procedures.--
       (1) In general.--In carrying out subsection (a) the 
     President shall assure that procedures are established that--
       (A) provide for the submission of proposals by eligible 
     recipients, each of which may include one or more recipient 
     countries, for commodities and other assistance under this 
     section;
       (B) provide for eligible commodities and assistance on a 
     multi-year basis;
       (C) ensure eligible recipients demonstrate the 
     organizational capacity and the ability to develop, 
     implement, monitor, report on, and provide accountability for 
     activities conducted under this section;
       (D) provide for the expedited development, review, and 
     approval of proposals submitted in accordance with this 
     section;
       (E) ensure monitoring and reporting by eligible recipients 
     on the use of commodities and other assistance provided under 
     this section; and
       (F) allow for the sale or barter of commodities by eligible 
     recipients to acquire funds to implement activities that 
     improve the food security of women and children or otherwise 
     enhance the effectiveness of programs and activities 
     authorized under this section.
       (2) Priorities for program funding.--In carrying out 
     paragraph (1) with respect to criteria for determining the 
     use of commodities and other assistance provided for programs 
     and activities authorized under this section, the 
     implementing agency may consider the ability of eligible 
     recipients to--
       (A) identify and assess the needs of beneficiaries, 
     especially malnourished or undernourished mothers and their 
     children who are 5 years of age or younger, and school-age 
     children who are malnourished, undernourished, or do not 
     regularly attend school;
       (B)(i) in the case of preschool and school-age children, 
     target low-income areas where children's enrollment and 
     attendance in school is low or girls' enrollment and 
     participation in preschool or school is low, and incorporate 
     developmental objectives for improving literacy and primary 
     education, particularly with respect to girls; and
       (ii) in the case of programs to benefit mothers and 
     children who are 5 years of age or younger, coordinate 
     supplementary feeding and nutrition programs with existing or 
     newly-established maternal, infant, and children programs 
     that provide health-needs interventions, and which may 
     include maternal, prenatal, and postnatal and newborn care;
       (C) involve indigenous institutions as well as local 
     communities and governments in the development and 
     implementation to foster local capacity building and 
     leadership; and
       (D) carry out multiyear programs that foster local self-
     sufficiency and ensure the longevity of recipient country 
     programs.
       (f) Use of Food and Nutrition Service.--The Food and 
     Nutrition Service of the Department of Agriculture may 
     provide technical advice on the establishment of programs 
     under subsection (a)(1) and on their implementation in the 
     field in recipient countries.
       (g) Multilateral Involvement.--The President is urged to 
     engage existing international food aid coordinating 
     mechanisms to ensure multilateral commitments to, and 
     participation in, programs like those supported under this 
     section. The President shall report annually to the Committee 
     on International Relations and the Committee on Agriculture 
     of the United States House of Representatives and the 
     Committee on Foreign Relations and the Committee on 
     Agriculture, Nutrition, and Forestry of the United States 
     Senate on the commitments and activities of governments, 
     including the United States government, in the global effort 
     to reduce child hunger and increase school attendance.
       (h) Private Sector Involvement.--The President is urged to 
     encourage the support and active involvement of the private 
     sector, foundations, and other individuals and organizations 
     in programs assisted under this section.
       (i) Requirement To Safeguard Local Production and Usual 
     Marketing.--The requirement of section 403(a) of the 
     Agricultural Trade Development and Assistance Act of 1954 (7 
     U.S.C. 1733(a) and 1733(h)) applies with respect to the 
     availability of commodities under this section.
       (j) Funding.--
       (1) In general.--There are authorized to be appropriated 
     such sums as may be necessary to carry out this section for 
     each of fiscal years 2002 through 2011. Nothing in this 
     section shall be interpreted to preclude the use of 
     authorities in effect before the date of the enactment of 
     this Act to carry out the ongoing Global Food for Education 
     Initiative.
       (2) Administrative expenses.--Funds made available to carry 
     out the purposes of this section may be used to pay the 
     administrative expenses of any agency of the Federal 
     Government implementing or assisting in the implementation of 
     this section.

     SEC. 313. STUDY ON FEE FOR SERVICES.

       (a) Study.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall provide a report 
     to the designated congressional committees on the feasibility 
     of instituting a program which would charge and retain a fee 
     to cover the costs for providing persons with commercial 
     services performed abroad on matters within the authority of 
     the Department of Agriculture administered through the 
     Foreign Agriculture Service or any successor agency.
       (b) Definition.--In this section, the term ``designated 
     congressional committees'' means the Committee on Agriculture 
     and the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition 
     and Forestry of the Senate.

     SEC. 314. NATIONAL EXPORT STRATEGY REPORT.

       (a) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary of Agriculture shall 
     provide to the designated congressional committees a report 
     on the policies and programs that the Department of 
     Agriculture has undertaken to implement the National Export 
     Strategy Report. The report shall contain a description of 
     the effective coordination of these policies and programs 
     through all other appropriate Federal agencies participating 
     in the Trade Promotion Coordinating Committee and the steps 
     the Department of Agriculture is taking to reduce the level 
     of protectionism in agricultural trade, to foster market 
     growth, and to improve the commercial potential of markets in 
     both developed and developing countries for United States 
     agricultural commodities.
       (b) Definition.--In this section, the term ``designated 
     congressional committees'' means the Committee on Agriculture 
     and the Committee on International Relations of the House of 
     Representatives and the Committee on Agriculture, Nutrition 
     and Forestry of the Senate.

                      TITLE IV--NUTRITION PROGRAMS

                     Subtitle A--Food Stamp Program

     SEC. 401. SIMPLIFIED DEFINITION OF INCOME.

       Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(d)) is amended--
       (1) in paragraph (3)--
       (A) by striking ``and (C)'' and inserting ``(C)''; and
       (B) by inserting after ``premiums,'' the following:
     ``and (D) to the extent that any other educational loans on 
     which payment is deferred, grants, scholarships, fellowships, 
     veterans' educational benefits, and the like, are required to 
     be excluded under title XIX of the Social Security Act, the 
     state agency may exclude it under this subsection,'';
       (2) by striking ``and (15)'' and inserting ``(15)'';
       (3) by inserting before the period at the end the 
     following:
     ``, (16) any state complementary assistance program payments 
     that are excluded pursuant to subsections (a) and (b) of 
     section 1931 of title XIX of the Social Security Act, and 
     (17) at the option of the State agency, any types of income 
     that the State agency does not consider when determining 
     eligibility for cash assistance under a program funded under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.) or medical assistance under section 1931 of the 
     Social Security Act (42 U.S.C. 1396u-1), except that this 
     paragraph shall not authorize a State agency to exclude 
     earned income, payments under title I, II, IV, X, XIV, or XVI 
     of the Social Security Act, or such other types of income 
     whose consideration the Secretary determines essential to 
     equitable determinations of eligibility and benefit levels 
     except to the extent that those types of income may be 
     excluded under other paragraphs of this subsection''.

     SEC. 402. STANDARD DEDUCTION.

       Section 5(e)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(1)) is amended--
       (1) by striking ``of $134, $229, $189, $269, and $118'' and 
     inserting ``equal to 9.7 percent of the eligibility limit 
     established under section 5(c)(1) for fiscal year 2002 but 
     not more than 9.7 percent of the eligibility limit 
     established under section 5(c)(1) for a household of six for 
     fiscal year 2002 nor less than $134, $229, $189, $269, and 
     $118''; and
       (2) by inserting before the period at the end the 
     following:
     ``, except that the standard deduction for Guam shall be 
     determined with reference to 2 times the eligibility limits 
     under section

[[Page 26842]]

     5(c)(1) for fiscal year 2002 for the 48 contiguous states and 
     the District of Columbia''.

     SEC. 403. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM 
                   WELFARE.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(s) Transitional Benefits Option.--
       ``(1) In general.--A State may provide transitional food 
     stamp benefits to a household that is no longer eligible to 
     receive cash assistance under a State program funded under 
     part A of title IV of the Social Security Act (42 U.S.C. 601 
     et seq.).
       ``(2) Transitional benefits period.--Under paragraph (1), a 
     household may continue to receive food stamp benefits for a 
     period of not more than 6 months after the date on which cash 
     assistance is terminated.
       ``(3) Amount.--During the transitional benefits period 
     under paragraph (2), a household shall receive an amount 
     equal to the allotment received in the month immediately 
     preceding the date on which cash assistance is terminated. A 
     household receiving benefits under this subsection may apply 
     for recertification at any time during the transitional 
     benefit period. If a household reapplies, its allotment shall 
     be determined without regard to this subsection for all 
     subsequent months.
       ``(4) Determination of future eligibility.--In the final 
     month of the transitional benefits period under paragraph 
     (2), the State agency may--
       ``(A) require a household to cooperate in a redetermination 
     of eligibility to receive an authorization card; and
       ``(B) renew eligibility for a new certification period for 
     the household without regard to whether the previous 
     certification period has expired.
       ``(5) Limitation.--A household sanctioned under section 6, 
     or for a failure to perform an action required by Federal, 
     State, or local law relating to such cash assistance program, 
     shall not be eligible for transitional benefits under this 
     subsection.''.
       (b) Conforming Amendments.--(1) Section 3(c) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2012(c)) is amended by adding at 
     the end the following: ``The limits in this section may be 
     extended until the end of any transitional benefit period 
     established under section 11(s).''.
       (2) Section 6(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)) is amended by striking ``No household'' and 
     inserting ``Except in a case in which a household is 
     receiving transitional benefits during the transitional 
     benefits period under section 11(s), no household''.

     SEC. 404. QUALITY CONTROL SYSTEMS.

       (a) Targeted Quality Control System.--Section 16(c) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2025(c)) is amended--
       (1) in paragraph (1)(C)--
       (A) in the matter preceding clause (i), by inserting ``the 
     Secretary determines that a 95 percent statistical 
     probability exists that for the 3d consecutive year'' after 
     ``year in which''; and
       (B) in clause (i)(II)(aa)(bbb) by striking ``the national 
     performance measure for the fiscal year'' and inserting ``10 
     percent'';
       (2) in the 1st sentence of paragraph (4)--
       (A) by striking ``or claim'' and inserting ``claim''; and
       (B) by inserting ``or performance under the measures 
     established under paragraph (10),'' after ``for payment 
     error,'';
       (3) in paragraph (5), by inserting ``to comply with 
     paragraph (10) and'' before ``to establish'';
       (4) in the 1st sentence of paragraph (6), by inserting 
     ``one percentage point more than'' after ``measure that shall 
     be''; and
       (5) by inserting at the end the following:
       ``(10)(A) In addition to the measures established under 
     paragraph (1), the Secretary shall measure the performance of 
     State agencies in each of the following regards--
       ``(i) compliance with the deadlines established under 
     paragraphs (3) and (9) of section 11(e); and
       ``(ii) the percentage of negative eligibility decisions 
     that are made correctly.
       ``(B) For each fiscal year, the Secretary shall make 
     excellence bonus payments of $1,000,000 each to the 5 States 
     with the highest combined performance in the 2 measures in 
     subparagraph (A) and to the 5 States whose combined 
     performance under the 2 measures in subparagraph (A) most 
     improved in such fiscal year.
       ``(C) For any fiscal year in which the Secretary determines 
     that a 95 percent statistical probability exists that a State 
     agency's performance with respect to any of the 2 performance 
     measures established in subparagraph (A) is substantially 
     worse than a level the Secretary deems reasonable, other than 
     for good cause shown, the Secretary shall investigate that 
     State agency's administration of the food stamp program. If 
     this investigation determines that the State's administration 
     has been deficient, the Secretary shall require the State 
     agency to take prompt corrective action.''.
       (b) Implementation.--The amendment made by subsection 
     (a)(5) shall apply to all fiscal years beginning on or after 
     October 1, 2001, and ending before October 1, 2007. All other 
     amendments made by this section shall apply to all fiscal 
     years beginning on or after October 1, 1999.

     SEC. 405. SIMPLIFIED APPLICATION AND ELIGIBILITY 
                   DETERMINATION SYSTEMS.

       Section 16 of the Food Stamp Act of 1977 (7 U.S.C. 2025) is 
     amended by inserting at the end the following:
       ``(l) Simplification of Systems.--The Secretary shall 
     expend up to $9,500,000 million in each fiscal year to pay 
     100 percent of the costs of State agencies to develop and 
     implement simple application and eligibility determination 
     systems.''.

     SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

       (a) Employment and Training Programs.--Section 16(h)(1) of 
     the Food Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
       (1) in subparagraph (A)(vii) by striking ``fiscal year 
     2002'' and inserting ``each of the fiscal years 2003 through 
     2011''; and
       (2) in subparagraph (B) by striking ``2002'' and inserting 
     ``2011''.
       (b) Cost Allocation.--Section 16(k)(3) of the Food Stamp 
     Act of 1977 (7 U.S.C. 2025(k)(3)) is amended--
       (1) in subparagraph (A) by striking ``2002'' and inserting 
     ``2011''; and
       (2) in subparagraph (B)(ii) by striking ``2002'' and 
     inserting ``2011''.
       (c) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is 
     amended by striking ``2002'' and inserting ``2011''.
       (d) Outreach Demonstration Projects.--Section 17(i)(1)(A) 
     of the Food Stamp Act of 1977 (7 U.S.C. 2026(i)(1)(A)) is 
     amended by striking ``1992 through 2002'' and inserting 
     ``2003 through 2011''.
       (e) Authorization of Appropriations.--Section 18(a)(1) of 
     the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended 
     by striking ``1996 through 2002'' and inserting ``2003 
     through 2011''.
       (f) Puerto Rico.--Section 19(a)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2028(a)(1)) is amended--
       (1) in subparagraph (A)--
       (A) in clause (ii) by striking ``and'' at the end;
       (B) in clause (iii) by adding ``and'' at the end; and
       (C) by inserting after clause (iii) the following:
       ``(iv) for each of fiscal years 2003 through 2011, the 
     amount equal to the amount required to be paid under this 
     subparagraph for the preceding fiscal year, as adjusted by 
     the percentage by which the thrifty food plan is adjusted 
     under section 3(o)(4) for the current fiscal year for which 
     the amount is determined under this clause;''; and
       (2) in subparagraph (B)--
       (A) by inserting ``(i)'' after ``(B)''; and
       (B) by adding at the end the following:
       ``(ii) Notwithstanding subparagraph (A) and clause (i), the 
     Commonwealth may spend up to $6,000,000 of the amount 
     required under subparagraph (A) to be paid for fiscal year 
     2002 to pay 100 percent of the cost to upgrade and modernize 
     the electronic data processing system used to provide such 
     food assistance and to implement systems to simplify the 
     determination of eligibility to receive such assistance.''.
       (g) Territory of American Samoa.--Section 24 of the Food 
     Stamp Act of 1977 (7 U.S.C. 2033) is amended--
       (1) by striking ``Effective October 1, 1995, from'' and 
     inserting ``From''; and
       (2) by striking ``$5,300,000 for each of fiscal years 1996 
     through 2002'' and inserting ``$5,750,000 for fiscal year 
     2002 and $5,800,000 for each of fiscal years 2003 though 
     2011''.
       (h) Assistance for Community Food Projects.--Section 
     25(b)(2) of the Food Stamp Act of 1977 (7 U.S.C. 2034(b)(2)) 
     is amended--
       (1) in subparagraph (A) by striking ``and'' at the end;
       (2) in subparagraph (B)--
       (A) by striking ``2002'' and inserting ``2001''; and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (3) by inserting after subparagraph (B) the following:
       ``(C) $7,500,000 for each of the fiscal years 2002 through 
     2011.''.
       (i) Availability of Commodities for the Emergency Food 
     Assistance Program.--Section 27 of the Food Stamp Act of 1977 
     (7 U.S.C. 2036) is amended--
       (1) in subsection (a)--
       (A) by striking ``1997 through 2002'' and inserting ``2002 
     through 2011''; and
       (B) by striking ``$100,000,000'' and inserting 
     ``$140,000,000''; and
       (2) by adding at the end the following:
       ``(c) Use of Funds for Related Costs.--For each of the 
     fiscal years 2002 through 2011, the Secretary shall use 
     $10,000,000 of the funds made available under subsection (a) 
     to pay for the direct and indirect costs of the States 
     related to the processing, storing, transporting, and 
     distributing to eligible recipient agencies of commodities 
     purchased by the Secretary under such subsection and 
     commodities secured from other sources, including commodities 
     secured by gleaning (as defined in section 111 of the Hunger 
     Prevention Act of 1988 (7 U.S.C. 612c note)).''.
       (j) Special Effective Date.--The amendments made by 
     subsections (g), (h), and (i) shall take effect on October 1, 
     2001.

                   Subtitle B--Commodity Distribution

     SEC. 441. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL 
                   NUTRITION PROJECTS.

       Section 1114(a) of the Agriculture and Food Act of 1981 (7 
     U.S.C. 1431e) is amended by striking ``2002'' and inserting 
     ``2011''.

[[Page 26843]]



     SEC. 442. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

       The Agriculture and Consumer Protection Act of 1973 (7 
     U.S.C. 612c note) is amended--
       (1) in section 4(a) by striking ``1991 through 2002'' and 
     inserting ``2003 through 2011''; and
       (2) in subsections (a)(2) and (d)(2) of section 5 by 
     striking ``1991 through 2002'' and inserting ``2003 through 
     2011''.

     SEC. 443. EMERGENCY FOOD ASSISTANCE.

       The 1st sentence of section 204(a)(1) of the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7508(a)(1)) is amended--
       (1) by striking ``1991 through 2002'' and inserting ``2003 
     through 2011'';
       (2) by striking ``administrative''; and
       (3) by inserting ``storage,'' after ``processing,''.

                  Subtitle C--Miscellaneous Provisions

     SEC. 461. HUNGER FELLOWSHIP PROGRAM.

       (a) Short Title; Findings.--
       (1) Short title.--This section may be cited as the 
     ``Congressional Hunger Fellows Act of 2001''.
       (2) Findings.--The Congress finds as follows:
       (A) There is a critical need for compassionate individuals 
     who are committed to assisting people who suffer from hunger 
     as well as a need for such individuals to initiate and 
     administer solutions to the hunger problem.
       (B) Bill Emerson, the distinguished late Representative 
     from the 8th District of Missouri, demonstrated his 
     commitment to solving the problem of hunger in a bipartisan 
     manner, his commitment to public service, and his great 
     affection for the institution and the ideals of the United 
     States Congress.
       (C) George T. (Mickey) Leland, the distinguished late 
     Representative from the 18th District of Texas, demonstrated 
     his compassion for those in need, his high regard for public 
     service, and his lively exercise of political talents.
       (D) The special concern that Mr. Emerson and Mr. Leland 
     demonstrated during their lives for the hungry and poor was 
     an inspiration for others to work toward the goals of 
     equality and justice for all.
       (E) These two outstanding leaders maintained a special bond 
     of friendship regardless of political affiliation and worked 
     together to encourage future leaders to recognize and provide 
     service to others, and therefore it is especially appropriate 
     to honor the memory of Mr. Emerson and Mr. Leland by creating 
     a fellowship program to develop and train the future leaders 
     of the United States to pursue careers in humanitarian 
     service.
       (b) Establishment.--There is established as an independent 
     entity of the legislative branch of the United States 
     Government the Congressional Hunger Fellows Program 
     (hereinafter in this section referred to as the ``Program'').
       (c) Board of Trustees.--
       (1) In general.--The Program shall be subject to the 
     supervision and direction of a Board of Trustees.
       (2) Members of the board of trustees.--
       (A) Appointment.--The Board shall be composed of 6 voting 
     members appointed under clause (i) and one nonvoting ex 
     officio member designated in clause (ii) as follows:
       (i) Voting members.--(I) The Speaker of the House of 
     Representatives shall appoint two members.
       (II) The minority leader of the House of Representatives 
     shall appoint one member.
       (III) The majority leader of the Senate shall appoint two 
     members.
       (IV) The minority leader of the Senate shall appoint one 
     member.
       (ii) Nonvoting member.--The Executive Director of the 
     program shall serve as a nonvoting ex officio member of the 
     Board.
       (B) Terms.--Members of the Board shall serve a term of 4 
     years.
       (C) Vacancy.--
       (i) Authority of board.--A vacancy in the membership of the 
     Board does not affect the power of the remaining members to 
     carry out this section.
       (ii) Appointment of successors.--A vacancy in the 
     membership of the Board shall be filled in the same manner in 
     which the original appointment was made.
       (iii) Incomplete term.--If a member of the Board does not 
     serve the full term applicable to the member, the individual 
     appointed to fill the resulting vacancy shall be appointed 
     for the remainder of the term of the predecessor of the 
     individual.
       (D) Chairperson.--As the first order of business of the 
     first meeting of the Board, the members shall elect a 
     Chairperson.
       (E) Compensation.--
       (i) In general.--Subject to clause (ii), members of the 
     Board may not receive compensation for service on the Board.
       (ii) Travel.--Members of the Board may be reimbursed for 
     travel, subsistence, and other necessary expenses incurred in 
     carrying out the duties of the program.
       (3) Duties.--
       (A) Bylaws.--
       (i) Establishment.--The Board shall establish such bylaws 
     and other regulations as may be appropriate to enable the 
     Board to carry out this section, including the duties 
     described in this paragraph.
       (ii) Contents.--Such bylaws and other regulations shall 
     include provisions--

       (I) for appropriate fiscal control, funds accountability, 
     and operating principles;
       (II) to prevent any conflict of interest, or the appearance 
     of any conflict of interest, in the procurement and 
     employment actions taken by the Board or by any officer or 
     employee of the Board and in the selection and placement of 
     individuals in the fellowships developed under the program;
       (III) for the resolution of a tie vote of the members of 
     the Board; and

       (IV) for authorization of travel for members of the Board.

       (iii) Transmittal to congress.--Not later than 90 days 
     after the date of the first meeting of the Board, the 
     Chairperson of the Board shall transmit to the appropriate 
     congressional committees a copy of such bylaws.
       (B) Budget.--For each fiscal year the program is in 
     operation, the Board shall determine a budget for the program 
     for that fiscal year. All spending by the program shall be 
     pursuant to such budget unless a change is approved by the 
     Board.
       (C) Process for selection and placement of fellows.--The 
     Board shall review and approve the process established by the 
     Executive Director for the selection and placement of 
     individuals in the fellowships developed under the program.
       (D) Allocation of funds to fellowships.--The Board of 
     Trustees shall determine the priority of the programs to be 
     carried out under this section and the amount of funds to be 
     allocated for the Emerson and Leland fellowships.
       (d) Purposes; Authority of Program.--
       (1) Purposes.--The purposes of the program are--
       (A) to encourage future leaders of the United States to 
     pursue careers in humanitarian service, to recognize the 
     needs of people who are hungry and poor, and to provide 
     assistance and compassion for those in need;
       (B) to increase awareness of the importance of public 
     service; and
       (C) to provide training and development opportunities for 
     such leaders through placement in programs operated by 
     appropriate organizations or entities.
       (2) Authority.--The program is authorized to develop such 
     fellowships to carry out the purposes of this section, 
     including the fellowships described in paragraph (3).
       (3) Fellowships.--
       (A) In general.--The program shall establish and carry out 
     the Bill Emerson Hunger Fellowship and the Mickey Leland 
     Hunger Fellowship.
       (B) Curriculum.--
       (i) In general.--The fellowships established under 
     subparagraph (A) shall provide experience and training to 
     develop the skills and understanding necessary to improve the 
     humanitarian conditions and the lives of individuals who 
     suffer from hunger, including--

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

       (ii) Focus of bill emerson hunger fellowship.--The Bill 
     Emerson Hunger Fellowship shall address hunger and other 
     humanitarian needs in the United States.
       (iii) Focus of mickey leland hunger fellowship.--The Mickey 
     Leland Hunger Fellowship shall address international hunger 
     and other humanitarian needs.
       (iv) Workplan.--To carry out clause (i) and to assist in 
     the evaluation of the fellowships under paragraph (4), the 
     program shall, for each fellow, approve a work plan that 
     identifies the target objectives for the fellow in the 
     fellowship, including specific duties and responsibilities 
     related to those objectives.
       (C) Period of fellowship.--
       (i) Emerson fellow.--A Bill Emerson Hunger Fellowship 
     awarded under this paragraph shall be for no more than 1 
     year.
       (ii) Leland fellow.--A Mickey Leland Hunger Fellowship 
     awarded under this paragraph shall be for no more than 2 
     years. Not less than 1 year of the fellowship shall be 
     dedicated to fulfilling the requirement of subparagraph 
     (B)(i)(I).
       (D) Selection of fellows.--
       (i) In general.--A fellowship shall be awarded pursuant to 
     a nationwide competition established by the program.
       (ii) Qualification.--A successful applicant shall be an 
     individual who has demonstrated--

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

       (iii) Amount of award.--

       (I) In general.--Each individual awarded a fellowship under 
     this paragraph shall receive a living allowance and, subject 
     to subclause (II), an end-of-service award as determined by 
     the program.
       (II) Requirement for successful completion of fellowship.--
     Each individual awarded a fellowship under this paragraph 
     shall be

[[Page 26844]]

     entitled to receive an end-of-service award at an appropriate 
     rate for each month of satisfactory service as determined by 
     the Executive Director.

       (iv) Recognition of fellowship award.--

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

       (4) Evaluation.--The program shall conduct periodic 
     evaluations of the Bill Emerson and Mickey Leland Hunger 
     Fellowships. Such evaluations shall include the following:
       (A) An assessment of the successful completion of the work 
     plan of the fellow.
       (B) An assessment of the impact of the fellowship on the 
     fellows.
       (C) An assessment of the accomplishment of the purposes of 
     the program.
       (D) An assessment of the impact of the fellow on the 
     community.
       (e) Trust Fund.--
       (1) Establishment.--There is established the Congressional 
     Hunger Fellows Trust Fund (hereinafter in this section 
     referred to as the ``Fund'') in the Treasury of the United 
     States, consisting of amounts appropriated to the Fund under 
     subsection (i), amounts credited to it under paragraph (3), 
     and amounts received under subsection (g)(3)(A).
       (2) Investment of funds.--The Secretary of the Treasury 
     shall invest the full amount of the Fund. Each investment 
     shall be made in an interest bearing obligation of the United 
     States or an obligation guaranteed as to principal and 
     interest by the United States that, as determined by the 
     Secretary in consultation with the Board, has a maturity 
     suitable for the Fund.
       (3) Return on investment.--Except as provided in subsection 
     (f)(2), the Secretary of the Treasury shall credit to the 
     Fund the interest on, and the proceeds from the sale or 
     redemption of, obligations held in the Fund.
       (f) Expenditures; Audits.--
       (1) In general.--The Secretary of the Treasury shall 
     transfer to the program from the amounts described in 
     subsection (e)(3) and subsection (g)(3)(A) such sums as the 
     Board determines are necessary to enable the program to carry 
     out the provisions of this section.
       (2) Limitation.--The Secretary may not transfer to the 
     program the amounts appropriated to the Fund under subsection 
     (i).
       (3) Use of funds.--Funds transferred to the program under 
     paragraph (1) shall be used for the following purposes:
       (A) Stipends for fellows.--To provide for a living 
     allowance for the fellows.
       (B) Travel of fellows.--To defray the costs of 
     transportation of the fellows to the fellowship placement 
     sites.
       (C) Insurance.--To defray the costs of appropriate 
     insurance of the fellows, the program, and the Board.
       (D) Training of fellows.--To defray the costs of preservice 
     and midservice education and training of fellows.
       (E) Support staff.--Staff described in subsection (g).
       (F) Awards.--End-of-service awards under subsection 
     (d)(3)(D)(iii)(II).
       (G) Additional approved uses.--For such other purposes that 
     the Board determines appropriate to carry out the program.
       (4) Audit by gao.--
       (A) In general.--The Comptroller General of the United 
     States shall conduct an annual audit of the accounts of the 
     program.
       (B) Books.--The program shall make available to the 
     Comptroller General all books, accounts, financial records, 
     reports, files, and all other papers, things, or property 
     belonging to or in use by the program and necessary to 
     facilitate such audit.
       (C) Report to congress.--The Comptroller General shall 
     submit a copy of the results of each such audit to the 
     appropriate congressional committees.
       (g) Staff; Powers of Program.--
       (1) Executive director.--
       (A) In general.--The Board shall appoint an Executive 
     Director of the program who shall administer the program. The 
     Executive Director shall carry out such other functions 
     consistent with the provisions of this section as the Board 
     shall prescribe.
       (B) Restriction.--The Executive Director may not serve as 
     Chairperson of the Board.
       (C) Compensation.--The Executive Director shall be paid at 
     a rate not to exceed the rate of basic pay payable for level 
     V of the Executive Schedule under section 5316 of title 5, 
     United States Code.
       (2) Staff.--
       (A) In general.--With the approval of a majority of the 
     Board, the Executive Director may appoint and fix the pay of 
     additional personnel as the Executive Director considers 
     necessary and appropriate to carry out the functions of the 
     provisions of this section.
       (B) Compensation.--An individual appointed under 
     subparagraph (A) shall be paid at a rate not to exceed the 
     rate of basic pay payable for level GS-15 of the General 
     Schedule.
       (3) Powers.--In order to carry out the provisions of this 
     section, the program may perform the following functions:
       (A) Gifts.--The program may solicit, accept, use, and 
     dispose of gifts, bequests, or devises of services or 
     property, both real and personal, for the purpose of aiding 
     or facilitating the work of the program. Gifts, bequests, or 
     devises of money and proceeds from sales of other property 
     received as gifts, bequests, or devises shall be deposited in 
     the Fund and shall be available for disbursement upon order 
     of the Board.
       (B) Experts and consultants.--The program may procure 
     temporary and intermittent services under section 3109 of 
     title 5, United States Code, but at rates for individuals not 
     to exceed the daily equivalent of the maximum annual rate of 
     basic pay payable for GS-15 of the General Schedule.
       (C) Contract authority.--The program may contract, with the 
     approval of a majority of the members of the Board, with and 
     compensate Government and private agencies or persons without 
     regard to section 3709 of the Revised Statutes (41 U.S.C. 5).
       (D) Other necessary expenditures.--The program shall make 
     such other expenditures which the program considers necessary 
     to carry out the provisions of this section, but excluding 
     project development.
       (h) Report.--Not later than December 31 of each year, the 
     Board shall submit to the appropriate congressional 
     committees a report on the activities of the program carried 
     out during the previous fiscal year, and shall include the 
     following:
       (1) An analysis of the evaluations conducted under 
     subsection (d)(4) (relating to evaluations of the Emerson and 
     Leland fellowships and accomplishment of the program 
     purposes) during that fiscal year.
       (2) A statement of the total amount of funds attributable 
     to gifts received by the program in that fiscal year (as 
     authorized under subsection (g)(3)(A)), and the total amount 
     of such funds that were expended to carry out the program 
     that fiscal year.
       (i) Authorization of Appropriations.--There are authorized 
     to be appropriated $18,000,000 to carry out the provisions of 
     this section.
       (j) Definition.--In this section, the term ``appropriate 
     congressional committees'' means--
       (1) the Committee on Agriculture and the Committee on 
     International Relations of the House of Representatives; and
       (2) the Committee on Agriculture, Nutrition and Forestry 
     and the Committee on Foreign Relations of the Senate.

     SEC. 462. GENERAL EFFECTIVE DATE.

       Except as otherwise provided in this title, the amendments 
     made by this title shall take effect on October 1, 2002.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

     SEC. 501. DIRECT LOANS.

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

     SEC. 502. FINANCING OF BRIDGE LOANS.

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

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

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

[[Page 26845]]



     SEC. 504. JOINT FINANCING ARRANGEMENTS.

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

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

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

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

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

     SEC. 507. DOWN PAYMENT LOAN PROGRAM.

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

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

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

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

       ``(a) In General.--Not later than October 1, 2002, the 
     Secretary shall carry out a pilot program in not fewer than 
     10 geographically dispersed States, as determined by the 
     Secretary, to guarantee up to 5 loans per State in each of 
     fiscal years 2003 through 2006 made by a private seller of a 
     farm or ranch to a qualified beginning farmer or rancher on a 
     contract land sale basis, if the loan meets applicable 
     underwriting criteria and a commercial lending institution 
     agrees to serve as escrow agent.
       ``(b) Date of Commencement of Program.--The Secretary shall 
     commence the pilot program on making a determination that 
     guarantees of contract land sales present a risk that is 
     comparable with the risk presented in the case of guarantees 
     to commercial lenders.''.
       (b) Regulations.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     promulgate such regulations as are necessary to implement the 
     amendment made by subsection (a).
       (2) Procedure.--The promulgation of the regulations and 
     administration of the amendment made by subsection (a) shall 
     be made without regard to--
       (A) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (B) 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
       (C) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (3) Congressional review of agency rulemaking.--In carrying 
     out the amendment made by subsection (a), the Secretary shall 
     use the authority provided under section 808 of title 5, 
     United States Code.

                      Subtitle B--Operating Loans

     SEC. 511. DIRECT LOANS.

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

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

       (a) Amount of Guarantee of Loans for Tribal Operations.--
     Section 309(h) of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1929(h)) is amended--
       (1) in paragraph (4), by striking ``paragraphs (5) and 
     (6)'' and inserting ``paragraphs (5), (6), and (7)''; and
       (2) by adding at the end the following:
       ``(7) Amount of guarantee of loans for tribal operations.--
     In the case of an operating loan made to a Native American 
     farmer or rancher whose farm or ranch is within an Indian 
     reservation (as defined in section 335(e)(1)(A)(ii)), the 
     Secretary shall guarantee 95 percent of the loan.''.
       (b) Waiver of Limitations.--Section 311(c) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1941(c)) is amended--
       (1) in paragraph (1), by striking ``paragraph (3)'' and 
     inserting ``paragraphs (3) and (4)''; and
       (2) by adding at the end the following:
       ``(4) Waivers.--
       ``(A) Tribal farm and ranch operations.--The Secretary 
     shall waive the limitation under paragraph (1)(C) for a 
     direct loan made under this subtitle to a Native American 
     farmer or rancher whose farm or ranch is within an Indian 
     reservation (as defined in section 335(e)(1)(A)(ii)) if the 
     Secretary determines that commercial credit is not generally 
     available for such farm or ranch operations.
       ``(B) Other farm and ranch operations.--On a case-by-case 
     determination not subject to administrative appeal, the 
     Secretary may grant a borrower a waiver, 1 time only for a 
     period of 2 years, of the limitation under paragraph (1)(C) 
     for a direct operating loan if the borrower demonstrates to 
     the satisfaction of the Secretary that--
       ``(i) the borrower has a viable farm or ranch operation;
       ``(ii) the borrower applied for commercial credit from at 
     least 2 commercial lenders;
       ``(iii) the borrower was unable to obtain a commercial loan 
     (including a loan guaranteed by the Secretary); and
       ``(iv) the borrower successfully has completed, or will 
     complete within 1 year, borrower training under section 359 
     (from which requirement the Secretary shall not grant a 
     waiver under section 359(f)).''.

                 Subtitle C--Administrative Provisions

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

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

     SEC. 522. DEBT SETTLEMENT.

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

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

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

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

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

     SEC. 525. ANNUAL REVIEW OF BORROWERS.

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

     SEC. 526. SIMPLIFIED LOAN APPLICATIONS.

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

     SEC. 527. INVENTORY PROPERTY.

       Section 335(c) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1985(c)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) in clause (i), by striking ``75 days'' and inserting 
     ``135 days''; and
       (ii) by adding at the end the following:
       ``(iv) Combining and dividing of property.--To the maximum 
     extent practicable, the Secretary shall maximize the 
     opportunity for beginning farmers and ranchers to

[[Page 26846]]

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

     SEC. 528. DEFINITIONS.

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

     SEC. 529. LOAN AUTHORIZATION LEVELS.

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

     SEC. 530. INTEREST RATE REDUCTION PROGRAM.

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

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

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

     SEC. 532. WAIVER OF BORROWER TRAINING CERTIFICATION 
                   REQUIREMENT.

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

     SEC. 533. ANNUAL REVIEW OF BORROWERS.

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

                        Subtitle D--Farm Credit

     SEC. 541. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

       (a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm 
     Credit Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
       (1) by striking clause (iii); and
       (2) by redesignating clause (iv) as clause (iii).

[[Page 26847]]

       (b) Other System Banks; Associations.--Section 4.18A of the 
     Farm Credit Act of 1971 (12 U.S.C. 2206a) is amended--
       (1) in subsection (a)(1), by striking ``3.11(11)(B)(iv)'' 
     and inserting ``3.11(11)(B)(iii)''; and
       (2) by striking subsection (c).

     SEC. 542. BANKS FOR COOPERATIVES.

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

     SEC. 543. INSURANCE CORPORATION PREMIUMS.

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

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

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

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

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

                     Subtitle E--General Provisions

     SEC. 551. INAPPLICABILITY OF FINALITY RULE.

       Section 281(a)(1) of the Department of Agriculture 
     Reorganization Act of 1994 (7 U.S.C. 7001(a)(1)) is amended--
       (1) by striking ``This subsection'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     this subsection''; and
       (2) by adding at the end the following:
       ``(B) Agricultural credit decisions.--This subsection shall 
     not apply with respect to an agricultural credit decision 
     made by such a State, county, or area committee, or employee 
     of such a committee, under the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1921 et seq.).''.

     SEC. 552. TECHNICAL AMENDMENTS.

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

     SEC. 553. EFFECT OF AMENDMENTS.

       (a) In General.--Except as otherwise specifically provided 
     in this title and notwithstanding any other provision of law, 
     this title and the amendments made by this title shall not 
     affect the authority of the Secretary of Agriculture to carry 
     out a farm credit program for any of the 1996 through 2001 
     fiscal years under a provision of law in effect immediately 
     before the enactment of this Act.
       (b) Liability.--A provision of this title or an amendment 
     made by this title shall not affect the liability of any 
     person under any provision of law as in effect immediately 
     before the enactment of this Act.

     SEC. 554. EFFECTIVE DATE.

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

                      TITLE VI--RURAL DEVELOPMENT

     SEC. 601. FUNDING FOR RURAL LOCAL TELEVISION BROADCAST SIGNAL 
                   LOAN GUARANTEES.

       Section 1011(a) of the Launching Our Communities' Access to 
     Local Television Act of 2000 (title X of H.R. 5548, as 
     enacted by section 1(a)(2) of Public Law 106-553) is amended 
     by adding at the end the following: ``In addition, a total of 
     $200,000,000 of the funds of the Commodity Credit Corporation 
     shall be available during fiscal years 2002 through 2006, 
     without fiscal year limitation, for loan guarantees under 
     this title.''.

[[Page 26848]]



     SEC. 602. EXPANDED ELIGIBILITY FOR VALUE-ADDED AGRICULTURAL 
                   PRODUCT MARKET DEVELOPMENT GRANTS.

       Section 231(a) of the Agricultural Risk Protection Act of 
     2000 (7 U.S.C. 1621 note) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Establishment and purposes.--
       ``(A) In general.--In each of fiscal years 2002 through 
     2011, the Secretary shall award competitive grants--
       ``(i) to eligible independent producers (as determined by 
     the Secretary) of value-added agricultural commodities and 
     products of agricultural commodities to assist an eligible 
     producer--

       ``(I) to develop a business plan for viable marketing 
     opportunities for a value-added agricultural commodity or 
     product of an agricultural commodity; or
       ``(II) to develop strategies for the ventures that are 
     intended to create marketing opportunities for the producers; 
     and

       ``(ii) to public bodies, institutions of higher learning, 
     and trade associations to assist such entities--

       ``(I) to develop a business plan for viable marketing 
     opportunities in emerging markets for a value-added 
     agricultural commodity or product of an agricultural 
     commodity; or
       ``(II) to develop strategies for the ventures that are 
     intended to create marketing opportunities in emerging 
     markets for the producers.

       ``(B) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this paragraph $50,000,000 
     for each of fiscal years 2002 through 2011.'';
       (2) by striking ``producer'' each place it appears 
     thereafter and inserting ``grantee''; and
       (3) in the heading for paragraph (3), by striking 
     ``Producer'' and inserting ``Grantee''.

     SEC. 603. AGRICULTURE INNOVATION CENTER DEMONSTRATION 
                   PROGRAM.

       (a) Purposes.--The purposes of this section are to carry 
     out a demonstration program under which agricultural 
     producers are provided--
       (1) technical assistance, including engineering services, 
     applied research, scale production, and similar services to 
     enable the producers to establish businesses for further 
     processing of agricultural products;
       (2) marketing, market development, and business planning; 
     and
       (3) overall organizational, outreach, and development 
     assistance to increase the viability, growth, and 
     sustainability of value-added agricultural businesses.
       (b) Nature of Program.--The Secretary of Agriculture (in 
     this section referred to as the ``Secretary'') shall--
       (1) make grants to eligible applicants for the purposes of 
     enabling the applicants to obtain the assistance described in 
     subsection (a); and
       (2) provide assistance to eligible applicants through the 
     research and technical services of the Department of 
     Agriculture.
       (c) Eligibility Requirements.--
       (1) In general.--An applicant shall be eligible for a grant 
     and assistance described in subsection (b) to establish an 
     Agriculture Innovation Center if--
       (A) the applicant--
       (i) has provided services similar to those described in 
     subsection (a); or
       (ii) shows the capability of providing the services;
       (B) the application of the applicant for the grant and 
     assistance sets forth a plan, in accordance with regulations 
     which shall be prescribed by the Secretary, outlining support 
     of the applicant in the agricultural community, the technical 
     and other expertise of the applicant, and the goals of the 
     applicant for increasing and improving the ability of local 
     producers to develop markets and processes for value-added 
     agricultural products;
       (C) the applicant demonstrates that resources (in cash or 
     in kind) of definite value are available, or have been 
     committed to be made available, to the applicant, to increase 
     and improve the ability of local producers to develop markets 
     and processes for value-added agricultural products; and
       (D) the applicant meets the requirement of paragraph (2).
       (2) Board of directors.--The requirement of this paragraph 
     is that the applicant shall have a board of directors 
     comprised of representatives of the following groups:
       (A) The 2 general agricultural organizations with the 
     greatest number of members in the State in which the 
     applicant is located.
       (B) The Department of Agriculture or similar State 
     organization or department, for the State.
       (C) Organizations representing the 4 highest grossing 
     commodities produced in the State, according to annual gross 
     cash sales.
       (d) Grants and Assistance.--
       (1) In general.--Subject to subsection (g), the Secretary 
     shall make annual grants to eligible applicants under this 
     section, each of which grants shall not exceed the lesser 
     of--
       (A) $1,000,000; or
       (B) twice the dollar value of the resources (in cash or in 
     kind) that the applicant has demonstrated are available, or 
     have been committed to be made available, to the applicant in 
     accordance with subsection (c)(1)(C).
       (2) Initial limitation.--In the first year of the 
     demonstration program under this section, the Secretary shall 
     make grants under this section, on a competitive basis, to 
     not more than 5 eligible applicants.
       (3) Expansion of demonstration program.--In the second year 
     of the demonstration program under this section, the 
     Secretary may make grants under this section to not more than 
     10 eligible applicants, in addition to any entities to which 
     grants are made under paragraph (2) for such year.
       (4) State limitation.--In the first 3 years of the 
     demonstration program under this section, the Secretary shall 
     not make an Agricultural Innovation Center Demonstration 
     Program grant under this section to more than 1 entity in a 
     single State.
       (e) Use of Funds.--An entity to which a grant is made under 
     this section may use the grant only for the following 
     purposes, but only to the extent that the use is not 
     described in section 231(d) of the Agricultural Risk 
     Protection Act of 2000:
       (1) Applied research.
       (2) Consulting services.
       (3) Hiring of employees, at the discretion of the board of 
     directors of the entity.
       (4) The making of matching grants, each of which shall be 
     not more than $5,000, to agricultural producers, so long as 
     the aggregate amount of all such matching grants shall be not 
     more than $50,000.
       (5) Legal services.
       (f) Rule of Interpretation.--This section shall not be 
     construed to prevent a recipient of a grant under this 
     section from collaborating with any other institution with 
     respect to activities conducted using the grant.
       (g) Availability of Funds.--Of the amount made available 
     under section 231(a)(1) of the Agricultural Risk Protection 
     Act of 2000 (Public Law 106-224; 7 U.S.C. 1621 note), the 
     Secretary shall use to carry out this section--
       (1) not less than $5,000,000 for fiscal year 2002; and
       (2) not less than $10,000,000 for each of the fiscal years 
     2003 and 2004.
       (h) Report on Best Practices.--
       (1) Effects on the agricultural sector.--The Secretary 
     shall utilize $300,000 per year of the funds made available 
     pursuant to this section to support research at any 
     university into the effects of value-added projects on 
     agricultural producers and the commodity markets. The 
     research should systematically examine possible effects on 
     demand for agricultural commodities, market prices, farm 
     income, and Federal outlays on commodity programs using 
     linked, long-term, global projections of the agricultural 
     sector.
       (2) Department of agriculture.--Not later than 3 years 
     after the first 10 grants are made under this section, the 
     Secretary shall prepare and submit to the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate and to the 
     Committee on Agriculture of the House of Representatives a 
     written report on the effectiveness of the demonstration 
     program conducted under this section at improving the 
     production of value-added agricultural products and on the 
     effects of the program on the economic viability of the 
     producers, which shall include the best practices and 
     innovations found at each of the Agriculture Innovation 
     Centers established under the demonstration program under 
     this section, and detail the number and type of agricultural 
     projects assisted, and the type of assistance provided, under 
     this section.

     SEC. 604. FUNDING OF COMMUNITY WATER ASSISTANCE GRANT 
                   PROGRAM.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out section 306A of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 1926a) 
     $30,000,000 for each of fiscal years 2002 though 2011.
       (b) Extension of Program.--Section 306A(i) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1926a(i)) is amended by striking ``2002'' and inserting 
     ``2011''.
       (c) Miscellaneous Amendments.--Section 306A of such Act (7 
     U.S.C. 1926a) is amended--
       (1) in the heading by striking ``emergency'';
       (2) in subsection (a)(1)--
       (A) by striking ``after'' and inserting ``when''; and
       (B) by inserting ``is imminent'' after ``communities''; and
       (3) in subsection (c), by striking ``shall--'' and all that 
     follows and inserting ``shall be a public or private 
     nonprofit entity.''.

     SEC. 605. LOAN GUARANTEES FOR THE FINANCING OF THE PURCHASE 
                   OF RENEWABLE ENERGY SYSTEMS.

       Section 4 of the Rural Electrification Act of 1936 (7 
     U.S.C. 904) is amended--
       (1) by inserting ``(a)'' before ``The Secretary''; and
       (2) by adding after and below the end the following:
       ``(b) Loan Guarantees for the Financing of the Purchase of 
     Renewable Energy Systems.--The Secretary may provide a loan 
     guarantee, on such terms and conditions as the Secretary 
     deems appropriate, for the purpose of financing the purchase 
     of a renewable energy system, including a wind energy system 
     and anaerobic digestors for the purpose of energy generation, 
     by any person or

[[Page 26849]]

     individual who is a farmer, a rancher, or an owner of a small 
     business (as defined by the Secretary) that is located in a 
     rural area (as defined by the Secretary). In providing 
     guarantees under this subsection, the Secretary shall give 
     priority to loans used primarily for power generation on a 
     farm, ranch, or small business (as so defined).''.

     SEC. 606. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY 
                   SYSTEMS.

       Section 310B(a)(3) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(a)(3)) is amended by inserting 
     ``and other renewable energy systems including wind energy 
     systems and anaerobic digestors for the purpose of energy 
     generation'' after ``solar energy systems''.

     SEC. 607. RURAL BUSINESS OPPORTUNITY GRANTS.

       Section 306(a)(11)(D) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(11)(D)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 608. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE 
                   VILLAGES IN ALASKA.

       Section 306D(d)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking 
     ``and 2002'' and inserting ``through 2011''.

     SEC. 609. RURAL COOPERATIVE DEVELOPMENT GRANTS.

       Section 310B(e)(9) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(e)(9)) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 610. NATIONAL RESERVE ACCOUNT OF RURAL DEVELOPMENT TRUST 
                   FUND.

       Section 381E(e)(3)(F) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009d(e)(3)(F)) is amended by 
     striking ``fiscal year 2002'' and inserting ``each of the 
     fiscal years 2002 through 2011''.

     SEC. 611. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

       Section 381O(b)(3) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 2009n(b)(3)) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 612. INCREASE IN LIMIT ON CERTAIN LOANS FOR RURAL 
                   DEVELOPMENT.

       Section 310B(a) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(a)) is amended by striking 
     ``$25,000,000'' and inserting ``$100,000,000''.

     SEC. 613. PILOT PROGRAM FOR DEVELOPMENT AND IMPLEMENTATION OF 
                   STRATEGIC REGIONAL DEVELOPMENT PLANS.

       (a) Development.--
       (1) Selection of states.--The Secretary of Agriculture (in 
     this section referred to as the ``Secretary'') shall, on a 
     competitive basis, select States in which to implement 
     strategic regional development plans developed under this 
     subsection.
       (2) Grants.--
       (A) Authority.--
       (i) In general.--From the funds made available to carry out 
     this subsection, the Secretary shall make a matching grant to 
     1 or more entities in each State selected under subsection 
     (a), to develop a strategic regional development plan that 
     provides for rural economic development in a region in the 
     State in which the entity is located.
       (ii) Priority.--In making grants under this subsection, the 
     Secretary shall give priority to entities that represent a 
     regional coalition of community-based planning, development, 
     governmental, and business organizations.
       (B) Terms of match.--In order for an entity to be eligible 
     for a matching grant under this subsection, the entity shall 
     make a commitment to the Secretary to provide funds for the 
     development of a strategic regional development plan of the 
     kind referred to in subparagraph (A) in an amount that is not 
     less than the amount of the matching grant.
       (C) Limitation.--The Secretary shall not make a grant under 
     this subsection in an amount that exceeds $150,000.
       (3) Funding.--
       (A) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this section for each of 
     fiscal years 2002 through 2011 the total obtained by adding--
       (i) $2,000,000; and
       (ii) \2/13\ of the amounts made available by section 943 of 
     the Farm Security Act of 2001 for grants under this section.
       (B) Availability.--Funds made available pursuant to 
     subparagraph (A) shall remain available without fiscal year 
     limitation.
       (b) Strategic Planning Implementation.--
       (1) The Secretary shall use the authorities provided in the 
     provisions of law specified in section 793(c)(1)(A)(ii) of 
     the Federal Agriculture Improvement and Reform Act of 1996 to 
     implement the strategic regional development plans developed 
     pursuant to subsection (a) of this section.
       (2) Funding.--
       (A) In general.--The Secretary shall use $13,000,000 of the 
     funds of the Commodity Credit Corporation, plus \11/13\ of 
     the amounts made available by section 943 of the Farm 
     Security Act of 2001 for grants under this section, in each 
     of fiscal years 2002 through 2011 to carry out this 
     subsection.
       (B) Availability.--Funds made available pursuant to 
     subparagraph (A) shall remain available without fiscal year 
     limitation.
       (c) Use of Funds.--The amounts made available under 
     subsections (a) and (b) may be used as the Secretary deems 
     appropriate to carry out any provision of this section.

     SEC. 614. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                   CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                   INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS 
                   IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR 
                   MODERATE INCOMES.

       (a) In General.--Subtitle A of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1922-1949) is amended by 
     inserting after section 306D the following:

     ``SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                   CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                   INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS 
                   IN RURAL AREAS FOR INDIVIDUALS WITH LOW OR 
                   MODERATE INCOMES.

       ``(a) Definition of Eligible Individual.--In this section, 
     the term `eligible individual' means an individual who is a 
     member of a household, the combined income of whose members 
     for the most recent 12-month period for which the information 
     is available, is not more than 100 percent of the median 
     nonmetropolitan household income for the State or territory 
     in which the individual resides, according to the most recent 
     decennial census of the United States.
       ``(b) Grants.--The Secretary may make grants to private 
     nonprofit organizations for the purpose of assisting eligible 
     individuals in obtaining financing for the construction, 
     refurbishing, and servicing of individual household water 
     well systems in rural areas that are owned (or to be owned) 
     by the eligible individuals.
       ``(c) Use of Funds.--A grant made under this section may 
     be--
       ``(1) used, or invested to provide income to be used, to 
     carry out subsection (b); and
       ``(2) used to pay administrative expenses associated with 
     providing the assistance described in subsection (b).
       ``(d) Priority in Awarding Grants.--In awarding grants 
     under this section, the Secretary shall give priority to an 
     applicant that has substantial expertise and experience in 
     promoting the safe and productive use of individually-owned 
     household water well systems and ground water.''.
       (b) Effective Date.--The amendment made by this section 
     takes effect on October 1, 2001.

     SEC. 615. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       Subtitle E of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2009-2009n) is amended by adding at the end the 
     following:

     ``SEC. 381P. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

       ``(a) Rural Area Defined.--In this section, the term `rural 
     area' means such areas as the Secretary may determine.
       ``(b) Establishment.--There is established a National Rural 
     Development Partnership (in this section referred to as the 
     `Partnership'), which shall be composed of--
       ``(1) the National Rural Development Coordinating Committee 
     established in accordance with subsection (c); and
       ``(2) State rural development councils established in 
     accordance with subsection (d).
       ``(c) National Rural Development Coordinating Committee.--
       ``(1) Composition.--The National Rural Development 
     Coordinating Committee (in this section referred to as the 
     `Coordinating Committee') may be composed of--
       ``(A) representatives of all Federal departments and 
     agencies with policies and programs that affect or benefit 
     rural areas;
       ``(B) representatives of national associations of State, 
     regional, local, and tribal governments and intergovernmental 
     and multi-jurisdictional agencies and organizations;
       ``(C) national public interest groups; and
       ``(D) other national nonprofit organizations that elect to 
     participate in the activities of the Coordinating Committee.
       ``(2) Functions.--The Coordinating Committee may--
       ``(A) provide support for the work of the State rural 
     development councils established in accordance with 
     subsection (d); and
       ``(B) develop and facilitate strategies to reduce or 
     eliminate conflicting or duplicative administrative and 
     regulatory impediments confronting rural areas.
       ``(d) State Rural Development Councils.--
       ``(1) Composition.--A State rural development council may--
       ``(A) be composed of representatives of Federal, State, 
     local, and tribal governments, and nonprofit organizations, 
     the private sector, and other entities committed to rural 
     advancement; and
       ``(B) have a nonpartisan and nondiscriminatory membership 
     that is broad and representative of the economic, social, and 
     political diversity of the State.
       ``(2) Functions.--A State rural development council may--
       ``(A) facilitate collaboration among Federal, State, local, 
     and tribal governments and the private and non-profit sectors 
     in the planning and implementation of programs and policies 
     that affect the rural areas of the State, and to do so in 
     such a way that provides the greatest degree of flexibility 
     and innovation in responding to the unique needs of the State 
     and the rural areas; and

[[Page 26850]]

       ``(B) in conjunction with the Coordinating Committee, 
     develop and facilitate strategies to reduce or eliminate 
     conflicting or duplicative administrative and regulatory 
     impediments confronting the rural areas of the State.
       ``(e) Administration of the Partnership.--The Secretary may 
     provide for any additional support staff to the Partnership 
     as the Secretary determines to be necessary to carry out the 
     duties of the Partnership.
       ``(f) Termination.--The authority provided by this section 
     shall terminate on the date that is 5 years after the date of 
     the enactment of this section.''.

     SEC. 616. ELIGIBILITY OF RURAL EMPOWERMENT ZONES, RURAL 
                   ENTERPRISE COMMUNITIES, AND CHAMPION 
                   COMMUNITIES FOR DIRECT AND GUARANTEED LOANS FOR 
                   ESSENTIAL COMMUNITY FACILITIES.

       Section 306(a)(1) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(1)) is amended by inserting 
     after the 1st sentence the following: ``The Secretary may 
     also make or insure loans to communities that have been 
     designated as rural empowerment zones or rural enterprise 
     communities pursuant to part I of subchapter U of chapter 1 
     of the Internal Revenue Code of 1986, as rural enterprise 
     communities pursuant to section 766 of the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 1999, or as champion communities 
     (as determined by the Secretary), to provide for the 
     installation or improvement of essential community facilities 
     including necessary related equipment, and to furnish 
     financial assistance or other aid in planning projects for 
     such purposes.''.

     SEC. 617. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES 
                   AND TO TRAIN FARM WORKERS IN SPECIALIZED SKILLS 
                   NECESSARY FOR HIGHER VALUE CROPS.

       (a) In General.--The Secretary of Agriculture may make a 
     grant to a nonprofit organization with the capacity to train 
     farm workers, or to a consortium of non-profit organizations, 
     agribusinesses, State and local governments, agricultural 
     labor organizations, and community-based organizations with 
     that capacity.
       (b) Use of Funds.--An entity to which a grant is made under 
     this section shall use the grant to train farm workers to use 
     new technologies and develop specialized skills for 
     agricultural development.
       (c) Limitations on Authorization of Appropriations.--For 
     grants under this section, there are authorized to be 
     appropriated to the Secretary of Agriculture not more than 
     $10,000,000 for each of fiscal years 2002 through 2011.

     SEC. 618. LOAN GUARANTEES FOR THE PURCHASE OF STOCK IN A 
                   FARMER COOPERATIVE SEEKING TO MODERNIZE OR 
                   EXPAND.

       Section 310B(g)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1932(g)(2)) is amended by striking 
     ``start-up'' and all that follows and inserting ``capital 
     stock of a farmer cooperative established for an agricultural 
     purpose.''.

     SEC. 619. INTANGIBLE ASSETS AND SUBORDINATED UNSECURED DEBT 
                   REQUIRED TO BE CONSIDERED IN DETERMINING 
                   ELIGIBILITY OF FARMER-OWNED COOPERATIVE FOR 
                   BUSINESS AND INDUSTRY GUARANTEED LOAN.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is amended by adding at the end the 
     following:
       ``(h) Intangible Assets and Subordinated Unsecured Debt 
     Required To Be Considered in Determining Eligibility of 
     Farmer-Owned Cooperative for Business and Industry Guaranteed 
     Loan.--In determining whether a cooperative organization 
     owned by farmers is eligible for a guaranteed loan under 
     subsection (a)(1), the Secretary may consider the value of 
     the intangible assets and subordinated unsecured debt of the 
     cooperative organization.''.

     SEC. 620. BAN ON LIMITING ELIGIBILITY OF FARMER COOPERATIVE 
                   FOR BUSINESS AND INDUSTRY LOAN GUARANTEE BASED 
                   ON POPULATION OF AREA IN WHICH COOPERATIVE IS 
                   LOCATED; REFINANCING.

       Section 310B of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1932) is further amended by adding at the end 
     of the following:
       ``(i) Special Rules Applicable to Farmer Cooperatives Under 
     the Business and Industry Loan Program.--In determining 
     whether a cooperative organization owned by farmers is 
     eligible for a guaranteed loan under subsection (a)(1), the 
     Secretary shall not apply any lending restriction based on 
     population to the area in which the cooperative organization 
     is located.
       ``(j) Refinancing.--A cooperative organization owned by 
     farmers that is eligible to receive a business or industry 
     guaranteed loan under subsection (a) shall be eligible to 
     refinance an existing loan with the same lender or a new 
     lender if--
       ``(1) the original loan--
       ``(A) is current and performing; and
       ``(B) is not in default; and
       ``(2) the cooperative organization has adequate security or 
     collateral (including tangible and intangible assets).''.

     SEC. 621. RURAL WATER AND WASTE FACILITY GRANTS.

       Section 306(a)(2) of the Consolidated Farm and Rural 
     Development Act (7 U.S.C. 1926(a)(2)) is amended by striking 
     ``aggregating not to exceed $590,000,000 in any fiscal 
     year''.

     SEC. 622. RURAL WATER CIRCUIT RIDER PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish a national rural water and wastewater circuit rider 
     grant program that shall be modeled after the National Rural 
     Water Association Rural Water Circuit Rider Program that 
     receives funding from the Rural Utilities Service.
       (b) Limitations on Authorization of Appropriations.--To 
     carry out subsection (a), there are authorized to be 
     appropriated to the Secretary of Agriculture $15,000,000 for 
     each fiscal year.

     SEC. 623. RURAL WATER GRASSROOTS SOURCE WATER PROTECTION 
                   PROGRAM.

       (a) Establishment.--The Secretary of Agriculture shall 
     establish a national grassroots source water protection 
     program that will utilize the on-site technical assistance 
     capabilities of State rural water associations that are 
     operating wellhead or ground water protection programs in 
     each State.
       (b) Limitations on Authorization of Appropriations.--To 
     carry out subsection (a), there are authorized to be 
     appropriated to the Secretary of Agriculture $5,000,000 for 
     each fiscal year.

     SEC. 624. DELTA REGIONAL AUTHORITY.

       Section 382N of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 2009aa-13) is amended by striking ``2002'' and 
     inserting ``2011''.

     SEC. 625. PREDEVELOPMENT AND SMALL CAPITALIZATION LOAN FUND.

       The Secretary of Agriculture may make grants to private, 
     nonprofit, multi-State rural community assistance programs to 
     capitalize revolving funds for the purpose of financing 
     eligible projects of predevelopment, repair, and improvement 
     costs of existing water and wastewater systems. Financing 
     provided using funds appropriated to carry out this program 
     may not exceed $300,000.

     SEC. 626. RURAL ECONOMIC DEVELOPMENT LOAN AND GRANT PROGRAM.

       The Secretary of Agriculture may use an additional source 
     of funding for economic development programs administered by 
     the Department of Agriculture through guaranteeing fees on 
     guarantees of bonds and notes issued by cooperative lenders 
     for electricity and telecommunications purposes.

                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

     SEC. 700. MARKET EXPANSION RESEARCH.

       Section 1436(b)(3)(C) of the Food Security Act of 1985 (7 
     U.S.C. 1632(b)(3)(C)) is amended by striking ``1990'' and 
     inserting ``2011''.

     SEC. 701. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

       Section 2381(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 702. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL 
                   SCIENCES EDUCATION.

       Section 1417(l) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(l)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 703. POLICY RESEARCH CENTERS.

       Section 1419A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 704. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION 
                   RESEARCH PROGRAM.

       Section 1424(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 705. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                   AGRICULTURAL RESEARCH.

       Section 1424A(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3174a(d)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 706. NUTRITION EDUCATION PROGRAM.

       Section 1425(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3175(c)(3)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 707. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH 
                   PROGRAMS.

       Section 1433(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 708. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL 
                   PROBLEMS.

       Section 1434(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 709. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                   FACILITIES AT 1890 LAND-GRANT COLLEGES, 
                   INCLUDING TUSKEGEE UNIVERSITY.

       Section 1447(b) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3222b(b)) is

[[Page 26851]]

     amended by striking ``2002'' and inserting ``2011''.

     SEC. 710. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS 
                   AT 1890 LAND-GRANT INSTITUTIONS.

       Sections 1448(a)(1) and (f) of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3222c(a)(1) and (f)) are amended by striking ``2002'' 
     each place it appears and inserting ``2011''.

     SEC. 711. HISPANIC-SERVING INSTITUTIONS.

       Section 1455(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 712. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL 
                   SCIENCE AND EDUCATION PROGRAMS.

       Section 1459A(c) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3292b(c)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 713. UNIVERSITY RESEARCH.

       Subsections (a) and (b) of section 1463 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3311(a) and (b)) are amended by striking 
     ``2002'' each place it appears and inserting ``2011''.

     SEC. 714. EXTENSION SERVICE.

       Section 1464 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
     amended by striking ``2002'' and inserting ``2011''.

     SEC. 715. SUPPLEMENTAL AND ALTERNATIVE CROPS.

       Section 1473D(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3319d(a)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 716. AGRICULTURE RESEARCH FACILITIES.

       The first sentence of section 1477 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3324) is amended by striking ``2002'' and 
     inserting ``2011''.

     SEC. 717. RANGELAND RESEARCH.

       Section 1483(a) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 718. NATIONAL GENETICS RESOURCES PROGRAM.

       Section 1635(b) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 719. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

       Section 1672(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925(h)) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 720. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION 
                   INITIATIVE.

       Section 1672A(g) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5925a(g)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 721. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

       Section 1673(h) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND 
                   COMMERCIALIZATION REVOLVING FUND.

       (a) Authorization of Appropriations.--Section 1664(g)(1) of 
     the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 5908(g)(1)) is amended by striking ``2002'' and 
     inserting ``2011''.
       (b) Capitalization.--Section 1664(g)(2) of such Act (7 
     U.S.C. 5908(g)(2)) is amended by striking ``2002'' and 
     inserting ``2011''.

     SEC. 723. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH 
                   DISABILITIES.

       Section 1680(c)(1) of the Food, Agriculture, Conservation, 
     and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 724. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT 
                   QUALITY RESEARCH.

       Section 402(g) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 725. BIOBASED PRODUCTS.

       (a) Pilot Project.--Section 404(e)(2) of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7624(e)(2)) is amended by striking ``2001'' and 
     inserting ``2011''.
       (b) Authorization of Appropriations.--Section 404(h) of 
     such Act (7 U.S.C. 7624(h)) is amended by striking ``2002'' 
     and inserting ``2011''.

     SEC. 726. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION 
                   COMPETITIVE GRANTS PROGRAM.

       Section 406(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7626(e)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 727. INSTITUTIONAL CAPACITY BUILDING GRANTS.

       (a) Generally.--Section 535(b)(1) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
     is amended by striking ``2000'' and inserting ``2011''.
       (b) Authorization of Appropriations.--Section 535(c) of 
     such Act is amended by striking ``2000'' and inserting 
     ``2011''.

     SEC. 728. 1994 INSTITUTION RESEARCH GRANTS.

       Section 536(c) of the Equity in Educational Land-Grant 
     Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
     ``2002'' and inserting ``2011''.

     SEC. 729. ENDOWMENT FOR 1994 INSTITUTIONS.

       The first sentence of section 533(b) of the Equity in 
     Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
     is amended by striking ``$4,600,000'' and all that follows 
     through the period and inserting ``such sums as are necessary 
     to carry out this section for each of fiscal years 1996 
     through 2011.''.

     SEC. 730. PRECISION AGRICULTURE.

       Section 403(i) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 731. THOMAS JEFFERSON INITIATIVE FOR CROP 
                   DIVERSIFICATION.

       Section 405(h) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 732. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, 
                   TRITICALE, AND BARLEY CAUSED BY FUSARIUM 
                   GRAMINEARUM OR BY TILLETIA INDICA.

       Section 408(e) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 733. OFFICE OF PEST MANAGEMENT POLICY.

       Section 614(f) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
     striking ``2002'' and inserting ``2011''.

     SEC. 734. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, 
                   EDUCATION, AND ECONOMICS ADVISORY BOARD.

       Section 1408(h) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 735. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF 
                   ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                   AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

       Section 1419(d) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 736. BIOMASS RESEARCH AND DEVELOPMENT.

       Title III of the Agricultural Risk Protection Act of 2000 
     (7 U.S.C. 7624 note) is amended--
       (1) in section 307(f), by striking ``2005'' and inserting 
     ``2011''; and
       (2) in section 310, by striking ``2005'' and inserting 
     ``2011''.

     SEC. 737. AGRICULTURAL EXPERIMENT STATIONS RESEARCH 
                   FACILITIES.

       Section 6(a) of the Research Facilities Act (7 U.S.C. 
     390d(a)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 738. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANTS NATIONAL RESEARCH INITIATIVE.

       Section 2(b)(10) of the Competitive, Special, and 
     Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is 
     amended by striking ``2002'' and inserting ``2011''.

     SEC. 739. FEDERAL AGRICULTURAL RESEARCH FACILITIES 
                   AUTHORIZATION OF APPROPRIATIONS.

       Section 1431 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1556) is amended by striking ``2002'' 
     and inserting ``2011''.

     SEC. 740. COTTON CLASSIFICATION SERVICES.

       The first sentence of section 3a of the Act of March 3, 
     1927 (commonly known as the ``Cotton Statistics and Estimates 
     Act''; 7 U.S.C. 473a) is amended by striking ``2002'' and 
     inserting ``2011''.

     SEC. 740A. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

       Section 16(a) of the Critical Agricultural Materials Act (7 
     U.S.C. 178n(a)) is amended by striking ``2002'' and inserting 
     ``2011''.

     SEC. 740B. PRIVATE NONINDUSTRIAL HARDWOOD RESEARCH PROGRAM.

       (a) In General.--The Secretary shall establish a program to 
     provide competitive grants to producers to be used for basic 
     hardwood research projects directed at--
       (1) improving timber management techniques;
       (2) increasing timber production;
       (3) expanding genetic research; and
       (4) addressing invasive and endangered species.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section $10,000,000 for 
     each of fiscal years 2002 through 2011.

                       Subtitle B--Modifications

     SEC. 741. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 
                   1994.

       (a) Authorization of Appropriations.--Section 534(a)(1)(A) 
     of the Equity in Educational Land-Grant Status Act of 1994 (7 
     U.S.C. 301 note) is amended by striking ``$50,000'' and 
     inserting ``$100,000''.
       (b) Withdrawals and Expenditures.--Section 533(c)(4)(A) of 
     such Act is amended by striking ``section 390(3)'' and all 
     that follows

[[Page 26852]]

     through ``1998)'' and inserting ``section 2(a)(7) of the 
     Tribally Controlled College or University Assistance Act of 
     1978)''.
       (c) Accreditation.--Section 533(a)(3) of such Act is 
     amended by striking ``under sections 534 and 535'' and 
     inserting ``under sections 534, 535, and 536''.
       (d) 1994 Institutions.--Section 532 of such Act is amended 
     by striking paragraphs (1) through (30) and inserting the 
     following:
       ``(1) Bay Mills Community College.
       ``(2) Blackfeet Community College.
       ``(3) Cankdeska Cikana Community College.
       ``(4) College of Menominee Nation.
       ``(5) Crownpoint Institute of Technology.
       ``(6) D-Q University.
       ``(7) Dine College.
       ``(8) Dull Knife Memorial College.
       ``(9) Fond du Lac Tribal and Community College.
       ``(10) Fort Belknap College.
       ``(11) Fort Berthold Community College.
       ``(12) Fort Peck Community College.
       ``(13) Haskell Indian Nations University.
       ``(14) Institute of American Indian and Alaska Native 
     Culture and Arts Development.
       ``(15) Lac Courte Oreilles Ojibwa Community College.
       ``(16) Leech Lake Tribal College.
       ``(17) Little Big Horn College.
       ``(18) Little Priest Tribal College.
       ``(19) Nebraska Indian Community College.
       ``(20) Northwest Indian College.
       ``(21) Oglala Lakota College.
       ``(22) Salish Kootenai College.
       ``(23) Sinte Gleska University.
       ``(24) Sisseton Wahpeton Community College.
       ``(25) Si Tanka/Huron University.
       ``(26) Sitting Bull College.
       ``(27) Southwestern Indian Polytechnic Institute.
       ``(28) Stone Child College.
       ``(29) Turtle Mountain Community College.
       ``(30) United Tribes Technical College.''.

     SEC. 742. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
                   TEACHING POLICY ACT OF 1977.

       Section 1404(4) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(4)) 
     is amended--
       (1) by striking the period at the end of subparagraph (E) 
     and inserting ``, or''; and
       (2) by adding at the end the following: ``(F) is one of the 
     1994 Institutions (as defined in section 532 of the Equity in 
     Educational Land-Grant Status Act of 1994).''.

     SEC. 743. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION 
                   REFORM ACT OF 1998.

       (a) Priority Mission Areas.--Section 401(c)(2) of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7621(c)(2)) is amended--
       (1) by striking ``and'' at the end of subparagraph (E);
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(G) alternative fuels and renewable energy sources.''.
       (b) Precision Agriculture.--Section 403 of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7623) is amended--
       (1) in subsection (a)(5)(F), by inserting ``(including 
     improved use of energy inputs)'' after ``farm production 
     efficiencies''; and
       (2) in subsection (d)--
       (A) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively; and
       (B) by inserting after paragraph (3) the following new 
     paragraph:
       ``(4) Improve on farm energy use efficiencies.''.
       (c) Thomas Jefferson Initiative for Crop Diversification.--
     Section 405(a) of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (7 U.S.C. 7625(a)) is amended by 
     striking ``and marketing'' and inserting ``, marketing, and 
     efficient use''.
       (d) Coordinated Program of Research, Extension, and 
     Education To Improve Viability of Small- and Medium-Size 
     Dairy, Livestock, and Poultry Operations.--Section 407(b)(3) 
     of the Agricultural Research, Extension, and Education Reform 
     Act of 1998 (7 U.S.C. 7627(b)(3)) is amended by inserting 
     ``(including improved use of energy inputs)'' after ``poultry 
     systems that increase efficiencies''.
       (e) Support for Research Regarding Diseases of Wheat, 
     Triticale, and Barley Caused by Fusarium Graminearum or by 
     Tilletia Indica.--
       (1) Research grant authorized.--Section 408(a) of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7628(a)) is amended to read as follows:
       ``(a) Research Grant Authorized.--The Secretary of 
     Agriculture may make grants to consortia of land-grant 
     colleges and universities to enhance the ability of the 
     consortia to carry out multi-State research projects aimed at 
     understanding and combating diseases of wheat, triticale, and 
     barley caused by Fusarium graminearum and related fungi 
     (referred to in this section as `wheat scab') or by Tilletia 
     indica and related fungi (referred to in this section as 
     `Karnal bunt').''.
       (2) Research components.--Section 408(b) of such Act (7 
     U.S.C. 7628(b)) is amended--
       (A) in paragraph (1), by inserting ``or of Karnal bunt,'' 
     after ``epidemiology of wheat scab'';
       (B) in paragraph (1), by inserting ``, triticale,'' after 
     ``occurring in wheat'';
       (C) in paragraph (2), by inserting ``or Karnal bunt'' after 
     ``wheat scab'';
       (D) in paragraph (3)(A), by striking ``and barley for the 
     presence of'' and inserting ``, triticale, and barley for the 
     presence of Karnal bunt or of'';
       (E) in paragraph (3)(B), by striking ``and barley infected 
     with wheat scab'' and inserting ``, triticale, and barley 
     infected with wheat scab or with Karnal bunt'';
       (F) in paragraph (3)(C), by inserting ``wheat scab'' after 
     ``to render'';
       (G) in paragraph (4), by striking ``and barley to wheat 
     scab'' and inserting ``, triticale, and barley to wheat scab 
     and to Karnal bunt''; and
       (H) in paragraph (5)--
       (i) by inserting ``and Karnal bunt'' after ``wheat scab''; 
     and
       (ii) by inserting ``, triticale,'' after ``resistant 
     wheat''.
       (3) Communications networks.--Section 408(c) of such Act (7 
     U.S.C. 7628(c)) is amended by inserting ``or Karnal bunt'' 
     after ``wheat scab''.
       (4) Technical amendments.--(A) The section heading for 
     section 408 of such Act is amended by striking ``AND BARLEY 
     CAUSED BY FUSARIUM GRAMINEARUM'' and inserting ``, TRITICALE, 
     AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY TILLETIA 
     INDICA''.
       (B) The table of sections for such Act is amended by 
     striking ``and barley caused by fusarium graminearum'' in the 
     item relating to section 408 and inserting ``, triticale, and 
     barley caused by Fusarium graminearum or by Tilletia 
     indica''.
       (f) Program To Control Johne's Disease.--Title IV of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7621 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

       ``(a) Establishment.--The Secretary of Agriculture, in 
     coordination with State veterinarians and other appropriate 
     State animal health professionals, may establish a program to 
     conduct research, testing, and evaluation of programs for the 
     control and management of Johne's disease in livestock.
       ``(b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to carry out this section for each of fiscal years 
     2003 through 2011.''.

     SEC. 744. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 
                   1990.

       (a) Agricultural Genome Initiative.--Section 1671(b) of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 (7 
     U.S.C. 5924(b)) is amended--
       (1) in paragraph (3), by inserting ``pathogens and'' before 
     ``diseases causing economic hardship'';
       (2) in paragraph (6), by striking ``and'' at the end;
       (3) by redesignating paragraph (7) as paragraph (8); and
       (4) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7) reducing the economic impact of plant pathogens on 
     commercially important crop plants; and''.
       (b) High-Priority Research and Extension Initiatives.--
     Section 1672(e) of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5925) is amended by adding at the 
     end the following new paragraphs:
       ``(25) Research to protect the united states food supply 
     and agriculture from bioterrorism.--Research grants may be 
     made under this section for the purpose of developing 
     technologies, which support the capability to deal with the 
     threat of agricultural bioterrorism.
       ``(26) Wind erosion research and extension.--Research and 
     extension grants may be made under this section for the 
     purpose of validating wind erosion models.
       ``(27) Crop loss research and extension.--Research and 
     extension grants may be made under this section for the 
     purpose of validating crop loss models.
       ``(28) Land use management research and extension.--
     Research and extension grants may be made under this section 
     for the purposes of evaluating the environmental benefits of 
     land use management tools such as those provided in the 
     Farmland Protection Program.
       ``(29) Water and air quality research and extension.--
     Research and extension grants may be made under this section 
     for the purpose of better understanding agricultural impacts 
     to air and water quality and means to address them.
       ``(30) Revenue and insurance tools research and 
     extension.--Research and extension grants may be made under 
     this section for the purposes of better understanding the 
     impact of revenue and insurance tools on farm income.
       ``(31) Agrotourism research and extension.--Research and 
     extension grants may be made under this section for the 
     purpose of better understanding the economic, environmental, 
     and food systems impacts on agrotourism.
       ``(32) Harvesting productivity for fruits and vegetables.--
     Research and extension

[[Page 26853]]

     grants may be made under this section for the purpose of 
     improving harvesting productivity for fruits and vegetables 
     (including citrus), including the development of mechanical 
     harvesting technologies and effective, economical, and safe 
     abscission compounds.
       ``(33) Nitrogen-fixation by plants.--Research and extension 
     grants may be made under this section for the purpose of 
     enhancing the nitrogen-fixing ability and efficiency of 
     legumes, developing new varieties of legumes that fix 
     nitrogen more efficiently, and developing new varieties of 
     other commercially important crops that potentially are able 
     to fix nitrogen.
       ``(34) Agricultural marketing.--Extension grants may be 
     made under this section for the purpose of providing 
     education materials, information, and outreach programs 
     regarding commodity and livestock marketing strategies for 
     agricultural producers and for cooperatives and other 
     marketers of any agricultural commodity, including livestock.
       ``(35) Environment and private lands research and 
     extension.--Research and extension grants may be made under 
     this section for the purpose of researching the use of 
     computer models to aid in assessment of best management 
     practices on a watershed basis, working with government, 
     industry, and private landowners to help craft industry-led 
     solutions to identified environmental issues, researching and 
     monitoring water, air, or soil environmental quality to aid 
     in the development of new approaches to local environmental 
     concerns, and working with local, State, and federal 
     officials to help craft effective environmental solutions 
     that respect private property rights and agricultural 
     production realities.
       ``(36) Livestock disease research and extension.--Research 
     and extension grants may be made under this section for the 
     purpose of identifying possible livestock disease threats, 
     educating the public regarding livestock disease threats, 
     training persons to deal with such threats, and conducting 
     related research.
       ``(37) Plant gene expression.--Research and development 
     grants may be made under this section for the purpose of 
     plant gene expression research to accelerate the application 
     of basic plant genomic science to the development and testing 
     of new varieties of enhanced food crops, crops that can be 
     used as renewable energy sources, and other alternative uses 
     of agricultural crops.''.

     SEC. 745. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND 
                   TEACHING POLICY ACT OF 1977.

       (a) National Agricultural Research, Extension, Education, 
     and Economic Advisory Board.--Section 1408 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3123) is amended--
       (1) in subsection (b)(3)--
       (A) by redesignating subparagraphs (R) through (DD) as 
     subparagraphs (S) through (EE), respectively; and
       (B) by inserting after subparagraph (Q) the following new 
     subparagraph:
       ``(R) 1 member representing a nonland grant college or 
     university with a historic commitment to research in the food 
     and agricultural sciences.'';
       (2) in subsection (c)(1), by striking ``and land-grant 
     colleges and universities'' and inserting ``, land-grant 
     colleges and universities, and the Committee on Agriculture 
     of the House of Representatives, the Committee on 
     Agriculture, Nutrition, and Forestry of the Senate, the 
     Subcommittee on Agriculture, Rural Development, Food and Drug 
     Administration and Related Agencies of the Committee on 
     Appropriations of the House of Representatives, and the 
     Subcommittee on Agriculture, Rural Development and Related 
     Agencies of the Committee on Appropriations of the Senate'';
       (3) in subsection (d)(1), inserting ``consult with any 
     appropriate agencies of the Department of Agriculture and'' 
     after ``the Advisory Board shall''; and
       (4) in subsection (b)(1), by striking ``30 members'' and 
     inserting ``31 members''.
       (b) Grants for Research on Production and Marketing of 
     Alcohols and Industrial Hydrocarbons From Agricultural 
     Commodities and Forest Products.--Section 1419 of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3154) is amended--
       (1) in subsection (a)(2), by inserting ``and animal fats 
     and oils'' after ``industrial oilseed crops''; and
       (2) in subsection (a)(4), by inserting ``or triglycerides'' 
     after ``other industrial hydrocarbons''.
       (c) FAS Overseas Intern Program.--Section 1458(a) of the 
     National Agricultural Research, Extension, and Teaching 
     Policy Act of 1977 (7 U.S.C. 3291(a)) is amended--
       (1) by striking ``and'' at the end of paragraph (8);
       (2) by striking the period at the end of paragraph (9) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(10) establish a program, to be coordinated by the 
     Cooperative State Research, Education, and Extension Service 
     and the Foreign Agricultural Service, to place interns from 
     United States colleges and universities at Foreign 
     Agricultural Service field offices overseas.''.

     SEC. 746. BIOMASS RESEARCH AND DEVELOPMENT.

       Title III of the Agricultural Risk Protection Act of 2000 
     (7 U.S.C. 7624 note) is amended--
       (1) in section 302(3), by inserting ``or biodiesel'' after 
     ``such as ethanol'';
       (2) in section 303(3), by inserting ``animal byproducts,'' 
     after ``fibers,''; and
       (3) in section 306(b)(1)--
       (A) by redesignating subparagraphs (E) through (J) as 
     subparagraphs (F) through (K), respectively; and
       (B) by inserting after subparagraph (D) the following new 
     subparagraph:
       ``(E) an individual affiliated with a livestock trade 
     association;''.

     SEC. 747. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

       Section 1668 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5921) is amended to read as 
     follows:

     ``SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

       ``(a) Purpose.--It is the purpose of this section--
       ``(1) to authorize and support environmental assessment 
     research to help identify and analyze environmental effects 
     of biotechnology; and
       ``(2) to authorize research to help regulators develop 
     long-term policies concerning the introduction of such 
     technology.
       ``(b) Grant Program.--The Secretary of Agriculture shall 
     establish a grant program within the Cooperative State 
     Research, Education, and Extension Service and the 
     Agricultural Research Service to provide the necessary 
     funding for environmental assessment research concerning the 
     introduction of genetically engineered plants and animals 
     into the environment.
       ``(c) Types of Research.--Types of research for which 
     grants may be made under this section shall include the 
     following:
       ``(1) Research designed to identify and develop appropriate 
     management practices to minimize physical and biological 
     risks associated with genetically engineered animals and 
     plants once they are introduced into the environment.
       ``(2) Research designed to develop methods to monitor the 
     dispersal of genetically engineered animals and plants.
       ``(3) Research designed to further existing knowledge with 
     respect to the characteristics, rates and methods of gene 
     transfer that may occur between genetically engineered plants 
     and animals and related wild and agricultural organisms.
       ``(4) Environmental assessment research designed to provide 
     analysis, which compares the relative impacts of plants and 
     animals modified through genetic engineering to other types 
     of production systems.
       ``(5) Other areas of research designed to further the 
     purposes of this section.
       ``(d) Eligibility Requirements.--Grants under this section 
     shall be--
       ``(1) made on the basis of the quality of the proposed 
     research project; and
       ``(2) available to any public or private research or 
     educational institution or organization.
       ``(e) Consultation.--In considering specific areas of 
     research for funding under this section, the Secretary of 
     Agriculture shall consult with the Administrator of the 
     Animal and Plant Health Inspection Service and the National 
     Agricultural Research, Extension, Education, and Economics 
     Advisory Board.
       ``(f) Program Coordination.--The Secretary of Agriculture 
     shall coordinate research funded under this section with the 
     Office of Research and Development of the Environmental 
     Protection Agency in order to avoid duplication of research 
     activities.
       ``(g) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     such sums as necessary to carry out this section.
       ``(2) Withholdings from biotechnology outlays.--The 
     Secretary of Agriculture shall withhold from outlays of the 
     Department of Agriculture for research on biotechnology, as 
     defined and determined by the Secretary, at least 3 percent 
     of such amount for the purpose of making grants under this 
     section for research on biotechnology risk assessment. Except 
     that, funding from this authorization should be collected and 
     applied to the maximum extent practicable to risk assessment 
     research on all categories identified as biotechnology by the 
     Secretary.''.

     SEC. 748. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH 
                   GRANTS.

       Section 2(a) of the Competitive, Special, and Facilities 
     Research Grant Act (7 U.S.C. 450i(a)) is amended by adding at 
     the end the following new paragraph:
       ``(3) Determination of high priority research.--Research 
     priorities shall be determined by the Secretary on an annual 
     basis, taking into account input as gathered by the Secretary 
     through the National Agricultural Research, Extension, 
     Education, and Economics Advisory Board.''.

     SEC. 749. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES OF 1890 INSTITUTIONS.

       Section 1449 of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d) 
     is amended--

[[Page 26854]]

       (1) by amending subsection (c) to read as follows:
       ``(c) Matching Formula.--For each of fiscal years 2003 
     through 2011, the State shall provide matching funds from 
     non-Federal sources. Such matching funds shall be for an 
     amount equal to not less than 60 percent of the formula funds 
     to be distributed to the eligible institution, and shall 
     increase by 10 percent each fiscal year thereafter until 
     fiscal year 2007.''; and
       (2) by amending subsection (d) to read as follows:
       ``(d) Waiver Authority.--Notwithstanding subsection (f), 
     the Secretary may waive the matching funds requirement under 
     subsection (c) above the 50 percent level for fiscal years 
     2003 through 2011 for an eligible institution of a State if 
     the Secretary determines that the State will be unlikely to 
     satisfy the matching requirement.''.

     SEC. 749A. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND 
                   EXTENSION ACTIVITIES FOR THE UNITED STATES 
                   TERRITORIES.

       (a) Research Matching Requirement.--Section 3(d)(4) of the 
     Hatch Act of 1887 (7 U.S.C. 361c(d)(4)) is amended by 
     striking ``the same matching funds'' and all that follows 
     through the end of the sentence and inserting ``matching 
     funds requirements from non-Federal sources for fiscal years 
     2003 through 2011 in an amount equal to not less than 50 
     percent of the formula funds to be distributed to the 
     Territory. The Secretary may waive the matching funds 
     requirements for a Territory for any of the fiscal years 2003 
     through 2011 if the Secretary determines that the Territory 
     will be unlikely to satisfy the matching funds requirement 
     for that fiscal year.''.
       (b) Extension Matching Requirement.--Section 3(e)(4) of the 
     Smith-Lever Act (7 U.S.C. 343(e)(4)) is amended by striking 
     ``the same matching funds'' and all that follows through the 
     end of the sentence and inserting ``matching funds 
     requirements from non-Federal sources for fiscal years 2003 
     through 2011 in an amount equal to not less than 50 percent 
     of the formula funds to be distributed to the Territory. The 
     Secretary may waive the matching funds requirements for a 
     Territory for any of the fiscal years 2003 through 2011 if 
     the Secretary determines that the Territory will be unlikely 
     to satisfy the matching funds requirement for that fiscal 
     year.''.

     SEC. 750. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

       (a) Funding.--Section 401(b)(1) of the Agricultural 
     Research, Extension, and Education Reform Act of 1998 (7 
     U.S.C. 7621(b)(1)) is amended to read as follows:
       ``(1) In general.--
       ``(A) Total amount to be transferred.--On October 1, 2003, 
     and each October 1 thereafter through September 30, 2011, the 
     Secretary of Agriculture shall deposit funds of the Commodity 
     Credit Corporation into the Account. The total amount of 
     Commodity Credit Corporation funds deposited into the Account 
     under this subparagraph shall equal $1,160,000,000.
       ``(B) Equal amounts.--To the maximum extent practicable, 
     the amounts deposited into the Account pursuant to 
     subparagraph (A) shall be deposited in equal amounts for each 
     fiscal year.
       ``(C) Availability of funds.--Amounts deposited into the 
     Account pursuant to subparagraph (A) shall remain available 
     until expended.''.
       (b) Availability of Funds.--Section 401(f)(6) of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7621(f)(6)) is amended to read as follows:
       ``(6) Availability of funds.--Funds made available under 
     this section to the Secretary prior to October 1, 2003, for 
     grants under this section shall be available to the Secretary 
     for a 2-year period.''.

     SEC. 751. CARBON CYCLE RESEARCH.

       Section 221 of the Agricultural Risk Protection Act of 2000 
     (Public Law 106-224; 114 Stat. 407) is amended--
       (1) in subsection (a), by striking ``Of the amount'' and 
     all that follows through ``to provide'' and inserting ``To 
     the extent funds are made available for this purpose, the 
     Secretary shall provide'';
       (2) in subsection (d), by striking ``under subsection (a)'' 
     and inserting ``for this section''; and
       (3) by adding at the end the following new subsection:
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated for fiscal years 2002 through 
     2011 such sums as may be necessary to carry out this 
     section.''.

     SEC. 752. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.

       Section 2(3) of the Research Facilities Act (7 U.S.C. 
     390(2)(3)) is amended to read as follows:
       ``(3) Food and agricultural sciences.--The term `food and 
     agricultural sciences' has the meaning given that term in 
     section 1404(8) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3103(8)).''.

     SEC. 753. FEDERAL EXTENSION SERVICE.

       Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) 
     is amended by striking ``$5,000,000'' and inserting ``such 
     sums as are necessary''.

     SEC. 754. POLICY RESEARCH CENTERS.

       Section 1419A(c)(3) of the National Agricultural Research, 
     Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
     3155(c)(3)) is amended by striking ``collect and analyze 
     data'' and inserting ``collect, analyze, and disseminate 
     data''.

     SEC. 755. ANIMALS USED IN RESEARCH.

       Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) 
     is amended by inserting ``birds, rats of the genus Rattus, 
     and mice of the genus Mus, that are bred for use in research, 
     and'' after ``excludes''.

                      Subtitle C--Related Matters

     SEC. 761. RESIDENT INSTRUCTION AT LAND-GRANT COLLEGES IN 
                   UNITED STATES TERRITORIES.

       (a) Purpose.--It is the purpose of this section to promote 
     and strengthen higher education in the food and agricultural 
     sciences at agricultural and mechanical colleges located in 
     the Commonwealth of Puerto Rico, the Virgin Islands of the 
     United States, Guam, American Samoa, the Commonwealth of the 
     Northern Mariana Islands, the Federated States of Micronesia, 
     the Republic of the Marshall Islands, or the Republic of 
     Palau (hereinafter referred to in this section as ``eligible 
     institutions'') by formulating and administering programs to 
     enhance teaching programs in agriculture, natural resources, 
     forestry, veterinary medicine, home economics, and 
     disciplines closely allied to the food and agriculture 
     production and delivery system.
       (b) Grants.--The Secretary of Agriculture shall make 
     competitive grants to those eligible institutions having a 
     demonstrable capacity to carry out the teaching of food and 
     agricultural sciences.
       (c) Use of Grant Funds.--Grants made under subsection (b) 
     shall be used to--
       (1) strengthen institutional educational capacities, 
     including libraries, curriculum, faculty, scientific 
     instrumentation, instruction delivery systems, and student 
     recruitment and retention, in order to respond to identified 
     State, regional, national, or international education needs 
     in the food and agricultural sciences;
       (2) attract and support undergraduate and graduate students 
     in order to educate them in identified areas of national need 
     to the food and agriculture sciences;
       (3) facilitate cooperative initiatives between two or more 
     eligible institutions or between eligible institutions and 
     units of State Government, organizational in the private 
     sector, to maximize the development and use of resources such 
     as faculty, facilities, and equipment to improve food and 
     agricultural sciences teaching programs; and
       (4) conduct undergraduate scholarship programs to assist in 
     meeting national needs for training food and agricultural 
     scientists.
       (d) Grant Requirements.--
       (1) The Secretary of Agriculture shall ensure that each 
     eligible institution, prior to receiving grant funds under 
     subsection (b), shall have a significant demonstrable 
     commitment to higher education programs in the food and 
     agricultural sciences and to each specific subject area for 
     which grant funds under this subsection are to be used.
       (2) The Secretary of Agriculture may require that any grant 
     awarded under this section contain provisions that require 
     funds to be targeted to meet the needs identified in section 
     1402 of the National Agriculture Research, Extension, and 
     Teaching Policy Act of 1977.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as are necessary for each of the 
     fiscal years 2002 through 2011 to carry out this section.

     SEC. 762. DECLARATION OF EXTRAORDINARY EMERGENCY AND 
                   RESULTING AUTHORITIES.

       (a) Review of Payment of Compensation.--Section 415(e) of 
     the Plant Protection Act (7 U.S.C. 7715(e)) is amended by 
     inserting before the final period the following: ``or review 
     by any officer of the Government other than the Secretary or 
     the designee of the Secretary''.
       (b) Review of Certain Decisions.--
       (1) Plant protection act.--Section 442 of the Plant 
     Protection Act (7 U.S.C. 7772) is amended by adding at the 
     end following new subsection:
       ``(f) Secretarial Discretion.--The action of any officer, 
     employee, or agent of the Secretary in carrying out this 
     section, including determining the amount of and making any 
     payment authorized to be made under this section, shall not 
     be subject to review by any officer of the Government other 
     than the Secretary or the designee of the Secretary.''.
       (2) Other plant and animal pest and disease laws.--Section 
     11 of the Act of May 29, 1884 (21 U.S.C. 114a; commonly known 
     as the ``Animal Industry Act'') and the first section of the 
     Act of September 25, 1981 (7 U.S.C. 147b), are each amended 
     by adding at the end the following new sentence: ``The action 
     of any officer, employee, or agent of the Secretary in 
     carrying out this section, including determining the amount 
     of and making any payment authorized to be made under this 
     section, shall not be subject to review by any officer of the 
     Government other than the Secretary or the designee of the 
     Secretary.''.
       (c) Methyl Bromide.--The Plant Protection Act (7 U.S.C. 
     7701 et seq.) is amended by inserting after section 418 the 
     following new section:

[[Page 26855]]



     ``SEC. 419. METHYL BROMIDE.

       ``(a) In General.--The Secretary, upon request of State, 
     local, or tribal authorities, shall determine whether methyl 
     bromide treatments or applications required by State, local, 
     or tribal authorities to prevent the introduction, 
     establishment, or spread of plant pests (including diseases) 
     or noxious weeds should be authorized as an official control 
     or official requirement.
       ``(b) Administration.--
       ``(1) Timeline for determination.--The Secretary shall make 
     the determination required by subsection (a) not later than 
     90 days after receiving the request for such a determination.
       ``(2) Regulations.--The promulgation of regulations for and 
     the administration of this section shall be made without 
     regard to--
       ``(A) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       ``(B) 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
       ``(C) chapter 35 of title 44, United States Code (commonly 
     known as the `Paperwork Reduction Act').
       ``(c) Registry.--Not later than 180 days after the date of 
     the enactment of this section, the Secretary shall publish, 
     and thereafter maintain, a registry of State, local, and 
     tribal requirements authorized by the Secretary under this 
     section.''.

     SEC. 763. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT 
                   FOR THE DEVELOPING WORLD.

       (a) Grant Program.--The Secretary of Agriculture shall 
     establish a program to award grants to entities described in 
     subsection (b) for the development of agricultural 
     biotechnology with respect to the developing world. The 
     Secretary shall administer and oversee the program through 
     the Foreign Agricultural Service of the Department of 
     Agriculture.
       (b) Partnerships.--(1) In order to be eligible to receive a 
     grant under this section, the grantee must be a participating 
     institution of higher education, a nonprofit organization, or 
     consortium of for profit institutions with in-country 
     agricultural research institutions.
       (2) A participating institution of higher education shall 
     be an historically black or land-grant college or university, 
     an Hispanic serving institution, or a tribal college or 
     university that has agriculture or the biosciences in its 
     curricula.
       (c) Competitive Award.--Grants shall be awarded under this 
     section on a merit-reviewed competitive basis.
       (d) Use of Funds.--The activities for which the grant funds 
     may be expended include the following:
       (1) Enhancing the nutritional content of agricultural 
     products that can be grown in the developing world to address 
     malnutrition through biotechnology.
       (2) Increasing the yield and safety of agricultural 
     products that can be grown in the developing world through 
     biotechnology.
       (3) Increasing through biotechnology the yield of 
     agricultural products that can be grown in the developing 
     world that are drought and stress-resistant.
       (4) Extending the growing range of crops that can be grown 
     in the developing world through biotechnology.
       (5) Enhancing the shelf-life of fruits and vegetables grown 
     in the developing world through biotechnology.
       (6) Developing environmentally sustainable agricultural 
     products through biotechnology.
       (7) Developing vaccines to immunize against life-
     threatening illnesses and other medications that can be 
     administered by consuming genetically engineered agricultural 
     products.
       (e) Funding Source.--Of the funds deposited in the Treasury 
     account known as the Initiative for Future Agriculture and 
     Food Systems on October 1, 2003, and each October 1 
     thereafter through October 1, 2007, the Secretary of 
     Agriculture shall use $5,000,000 during each of fiscal years 
     2004 through 2008 to carry out this section.

        Subtitle D--Repeal of Certain Activities and Authorities

     SEC. 771. FOOD SAFETY RESEARCH INFORMATION OFFICE AND 
                   NATIONAL CONFERENCE.

       (a) Repeal.--Subsections (b) and (c) of section 615 of the 
     Agricultural Research, Extension, and Education Reform Act of 
     1998 (7 U.S.C. 7654(b) and (c)) are repealed.
       (b) Conforming Amendments.--
       (1) Generally.--Section 615 of such Act is amended--
       (A) in the section heading, by striking ``and national 
     conference'';
       (B) by striking ``(a) Food Safety Research Information 
     Office.--'';
       (C) by redesignating paragraphs (1), (2), and (3) as 
     subsections (a), (b), and (c), respectively, and moving the 
     margins 2 ems to the left;
       (D) in subsection (b) (as so redesignated), by 
     redesignating subparagraphs (A) and (B) as paragraphs (1) and 
     (2), respectively, and moving the margins 2 ems to the left; 
     and
       (E) in subsection (c) (as so redesignated), by striking 
     ``this subsection'' and inserting ``this section''.
       (2) Table of sections.--The table of sections for such Act 
     is amended by striking ``and National Conference'' in the 
     item relating to section 615.

     SEC. 772. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, 
                   RESEARCH, AND INFORMATION ACT OF 1994.

       Section 617 of the Agricultural Research, Extension, and 
     Education Reform Act of 1998 (Public Law 105-185; 112 Stat. 
     607) is repealed.

     SEC. 773. NATIONAL GENETIC RESOURCES PROGRAM.

       Section 1634 of the Food, Agriculture, Conservation, and 
     Trade Act of 1990 (7 U.S.C. 5843) is repealed.

     SEC. 774. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

       (a) Repeal.--Section 1639 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 5853) is 
     repealed.
       (b) Conforming Amendment.--Section 1640(b) of the Food, 
     Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
     5854(b)) is amended by striking ``take into'' and all that 
     follows through ``Weather and''.

     SEC. 775. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.

       Section 1420 of the National Agricultural Research, 
     Extension and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1551) is repealed.

     SEC. 776. PESTICIDE RESISTANCE STUDY.

       Section 1437 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1558) is repealed.

     SEC. 777. EXPANSION OF EDUCATION STUDY.

       Section 1438 of the National Agricultural Research, 
     Extension, and Teaching Policy Act Amendments of 1985 (Public 
     Law 99-198; 99 Stat. 1559) is repealed.

     SEC. 778. SUPPORT FOR ADVISORY BOARD.

       (a) Repeal.--Section 1412 of the National Agricultural 
     Research, Extension, and Teaching Policy Act of 1977 (7 
     U.S.C. 3127) is repealed.
       (b) Conforming Amendment.--Section 1413(c) of such Act (7 
     U.S.C. 3128(c)) is amended by striking ``section 1412 of this 
     title and''.

     SEC. 779. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR 
                   AGRICULTURAL RESEARCH FACILITIES.

       (a) Repeal.--Section 4 of the Research Facilities Act (7 
     U.S.C. 390b) is repealed.
       (b) Conforming Amendment.--Section 2 of such Act (7 U.S.C. 
     390) is amended by striking paragraph (5).

              Subtitle E--Agriculture Facility Protection

     SEC. 790. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL 
                   ENTERPRISES, RESEARCH FACILITIES, AND OTHER 
                   ENTITIES.

       (a) Definitions.--The Research Facilities Act (7 U.S.C. 390 
     et seq.) is amended--
       (1) by redesignating section 6 as section 7; and
       (2) by inserting after section 5 the following new section:

     ``SEC. 6. ADDITIONAL PROTECTIONS FOR ANIMAL OR AGRICULTURAL 
                   ENTERPRISES, RESEARCH FACILITIES, AND OTHER 
                   ENTITIES AGAINST DISRUPTION.

       ``(a) Definitions.--For the purposes of this section, the 
     following definitions apply:
       ``(1) Animal or agricultural enterprise.--The term `animal 
     or agricultural enterprise' means any of the following:
       ``(A) A commercial, governmental, or academic enterprise 
     that uses animals, plants, or other biological materials for 
     food or fiber production, breeding, processing, research, or 
     testing.
       ``(B) A zoo, aquarium, circus, rodeo, or other entity that 
     exhibits or uses animals, plants, or other biological 
     materials for educational or entertainment purposes.
       ``(C) A fair or similar event intended to advance 
     agricultural arts and sciences.
       ``(D) A facility managed or occupied by an association, 
     federation, foundation, council, or other group or entity of 
     food or fiber producers, processors, or agricultural or 
     biomedical researchers intended to advance agricultural or 
     biomedical arts and sciences.
       ``(2) Economic damage.--The term `economic damage' means 
     the replacement of the following:
       ``(A) The cost of lost or damaged property (including all 
     real and personal property) of an animal or agricultural 
     enterprise.
       ``(B) The cost of repeating an interrupted or invalidated 
     experiment.
       ``(C) The loss of revenue (including costs related to 
     business recovery) directly related to the disruption of an 
     animal or agricultural enterprise.
       ``(D) The cost of the tuition and expenses of any student 
     to complete an academic program that was disrupted, or to 
     complete a replacement program, when the tuition and expenses 
     are incurred as a result of the damage or loss of the 
     property of an animal or agricultural enterprise.
       ``(3) Property of an animal or agricultural enterprise.--
     The term `property of an animal or agricultural enterprise' 
     means real and personal property of or used by any of the 
     following:
       ``(A) An animal or agricultural enterprise.
       ``(B) An employee of an animal or agricultural enterprise.
       ``(C) A student attending an academic animal or 
     agricultural enterprise.
       ``(4) Disruption.--The term `disruption' does not include 
     any lawful disruption that

[[Page 26856]]

     results from lawful public, governmental, or animal or 
     agricultural enterprise employee reaction to the disclosure 
     of information about an animal or agricultural enterprise.
       ``(b) Violation.--A person may not recklessly, knowingly, 
     or intentionally cause, or contribute to, the disruption of 
     the functioning of an animal or agricultural enterprise by 
     damaging or causing the loss of any property of the animal or 
     agricultural enterprise that results in economic damage, as 
     determined by the Secretary.
       ``(c) Assessment of Civil Penalty.--
       ``(1) In general.--The Secretary may impose on any person 
     that the Secretary determines violates subsection (b) a civil 
     penalty in an amount determined under paragraphs (2) and (3). 
     The civil penalty may be assessed only on the record after an 
     opportunity for a hearing.
       ``(2) Recovery of department costs.--The civil penalty 
     assessed by the Secretary against a person for a violation of 
     subsection (b) shall be not less than the total cost incurred 
     by the Secretary for investigation of the violation, 
     conducting any hearing regarding the violation, and assessing 
     the civil penalty.
       ``(3) Recovery of economic damage.--In addition to the 
     amount determined under paragraph (2), the amount of the 
     civil penalty shall include an amount not less than the total 
     cost (or, in the case of knowing or intentional disruption, 
     not less than 150 percent of the total cost) of the economic 
     damage incurred by the animal or agricultural enterprise, any 
     employee of the animal or agricultural enterprise, or any 
     student attending an academic animal or agricultural 
     enterprise as a result of the damage or loss of the property 
     of an animal or agricultural enterprise.
       ``(d) Identification.--The Secretary shall identify for 
     each civil penalty assessed under subsection (c), the portion 
     of the amount of the civil penalty that represents the 
     recovery of Department costs and the portion that represents 
     the recovery of economic losses.
       ``(e) Other Factors in Determining Penalty.-- In 
     determining the amount of a civil penalty under subsection 
     (c), the Secretary shall consider the following:
       ``(1) The nature, circumstance, extent, and gravity of the 
     violation or violations.
       ``(2) The ability of the injured animal or agricultural 
     enterprise to continue to operate, costs incurred by the 
     animal or agricultural enterprise to recover lost business, 
     and the effect of the violation on earnings of employees of 
     the animal or agricultural enterprise.
       ``(3) The interruptions experienced by students attending 
     an academic animal or agricultural enterprise.
       ``(4) Whether the violator has previously violated 
     subsection (a).
       ``(5) The violator's degree of culpability.
       ``(f) Fund to Assist Victims of Disruption.--
       ``(1) Fund established.--There is established in the 
     Treasury a fund which shall consist of that portion of each 
     civil penalty collected under subsection (c) that represents 
     the recovery of economic damages.
       ``(2) Use of amounts in fund.--The Secretary of Agriculture 
     shall use amounts in the fund to compensate animal or 
     agricultural enterprises, employees of an animal or 
     agricultural enterprise, and student attending an academic 
     animal or agricultural enterprise for economic losses 
     incurred as a result of the disruption of the functioning of 
     an animal or agricultural enterprise in violation of 
     subsection (b).''.

                    TITLE VIII--FORESTRY INITIATIVES

     SEC. 801. REPEAL OF FORESTRY INCENTIVES PROGRAM AND 
                   STEWARDSHIP INCENTIVE PROGRAM.

       The Cooperative Forestry Assistance Act of 1978 is amended 
     by striking section 4 (16 U.S.C. 2103) and section 6 (16 
     U.S.C. 2103b).

     SEC. 802. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

       (a) Findings.--Congress finds the following:
       (1) There is a growing dependence on private nonindustrial 
     forest lands to supply the necessary market commodities and 
     nonmarket values, such as habitat for fish and wildlife, 
     aesthetics, outdoor recreation opportunities, and other 
     forest resources, required by a growing population.
       (2) There is a strong demand for expanded assistance 
     programs for owners of nonindustrial private forest land 
     since the majority of the wood supply of the United States 
     comes from nonindustrial private forest land.
       (3) The soil, carbon stores, water and air quality of the 
     United States can be maintained and improved through good 
     stewardship of nonindustrial private forest lands.
       (4) The products and services resulting from stewardship of 
     nonindustrial private forest lands provide income and 
     employment that contribute to the economic health and 
     diversity of rural communities.
       (5) Wildfires threaten human lives, property, forests, and 
     other resources, and Federal and State cooperation in forest 
     fire prevention and control has proven effective and 
     valuable, in that properly managed forest stands are less 
     susceptible to catastrophic fire, as dramatized by the 
     catastrophic fire seasons of 1998 and 2000.
       (6) Owners of private nonindustrial forest lands are being 
     faced with increased pressure to convert their forestland to 
     development and other uses.
       (7) Complex, long-rotation forest investments, including 
     sustainable hardwood management, are often the most difficult 
     commitment for small, nonindustrial private forest landowners 
     and, thus, should receive equal consideration under cost-
     share programs.
       (8) The investment of one Federal dollar in State and 
     private forestry programs is estimated to leverage $9 on 
     average from State, local, and private sources.
       (b) Purpose.--It is the purpose of this section to 
     strengthen the commitment of the Department of Agriculture to 
     sustainable forestry and to establish a coordinated and 
     cooperative Federal, State, and local sustainable forest 
     program for the establishment, management, maintenance, 
     enhancement, and restoration of forests on nonindustrial 
     private forest lands in the United States.
       (c) Forest Land Enhancement Program.--The Cooperative 
     Forestry Assistance Act of 1978 is amended by inserting after 
     section 3 (16 U.S.C. 2102) the following new section 4:

     ``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

       ``(a) Establishment.--
       ``(1) Establishment; purpose.--The Secretary shall 
     establish a Forest Land Enhancement Program (in this section 
     referred to as the `Program') for the purpose of providing 
     financial, technical, educational, and related assistance to 
     State foresters to encourage the long-term sustainability of 
     nonindustrial private forest lands in the United States by 
     assisting the owners of such lands in more actively managing 
     their forest and related resources by utilizing existing 
     State, Federal, and private sector resource management 
     expertise, financial assistance, and educational programs.
       ``(2) Administration.--The Secretary shall carry out the 
     Program within, and administer the Program through, the 
     Natural Resources Conservation Service.
       ``(3) Coordination.--The Secretary shall implement the 
     Program in coordination with State foresters.
       ``(b) Program Objectives.--In implementing the Program, the 
     Secretary shall target resources to achieve the following 
     objectives:
       ``(1) Investment in practices to establish, restore, 
     protect, manage, maintain, and enhance the health and 
     productivity of the nonindustrial private forest lands in the 
     United States for timber, habitat for flora and fauna, water 
     quality, and wetlands.
       ``(2) Ensuring that afforestation, reforestation, 
     improvement of poorly stocked stands, timber stand 
     improvement, practices necessary to improve seedling growth 
     and survival, and growth enhancement practices occur where 
     needed to enhance and sustain the long-term productivity of 
     timber and nontimber forest resources to help meet future 
     public demand for all forest resources and provide 
     environmental benefits.
       ``(3) Reduce the risks and help restore, recover, and 
     mitigate the damage to forests caused by fire, insects, 
     invasive species, disease, and damaging weather.
       ``(4) Increase and enhance carbon sequestration 
     opportunities.
       ``(5) Enhance implementation of agroforestry practices.
       ``(6) Maintain and enhance the forest landbase and leverage 
     State and local financial and technical assistance to owners 
     that promote the same conservation and environmental values.
       ``(c) Eligibility.--
       ``(1) In general.--An owner of nonindustrial private forest 
     land is eligible for cost-sharing assistance under the 
     Program if the owner--
       ``(A) agrees to develop and implement an individual 
     stewardship, forest, or stand management plan addressing site 
     specific activities and practices in cooperation with, and 
     approved by, the State forester, state official, or private 
     sector program in consultation with the State forester;
       ``(B) agrees to implement approved activities in accordance 
     with the plan for a period of not less than 10 years, unless 
     the State forester approves a modification to such plan; and
       ``(C) meets the acreage restrictions as determined by the 
     State forester in conjunction with the State Forest 
     Stewardship Coordinating Committee established under section 
     19.
       ``(2) State priorities.--The Secretary, in consultation 
     with the State forester and the State Forest Stewardship 
     Coordinating Committee may develop State priorities for cost 
     sharing under the Program that will promote forest management 
     objectives in that State.
       ``(3) Development of plan.--An owner shall be eligible for 
     cost-share assistance for the development of the individual 
     stewardship, forest, or stand management plan required by 
     paragraph (1).
       ``(d) Approved Activities.--
       ``(1) Development.--The Secretary, in consultation with the 
     State forester and the State Forest Stewardship Coordinating 
     Committee, shall develop a list of approved forest activities 
     and practices that will be eligible for cost-share assistance 
     under the Program within each State.

[[Page 26857]]

       ``(2) Type of activities.--In developing a list of approved 
     activities and practices under paragraph (1), the Secretary 
     shall attempt to achieve the establishment, restoration, 
     management, maintenance, and enhancement of forests and trees 
     for the following:
       ``(A) The sustainable growth and management of forests for 
     timber production.
       ``(B) The restoration, use, and enhancement of forest 
     wetlands and riparian areas.
       ``(C) The protection of water quality and watersheds 
     through the application of State-developed forestry best 
     management practices.
       ``(D) Energy conservation and carbon sequestration 
     purposes.
       ``(E) Habitat for flora and fauna.
       ``(F) The control, detection, and monitoring of invasive 
     species on forestlands as well as preventing the spread and 
     providing for the restoration of lands affected by invasive 
     species.
       ``(G) Hazardous fuels reduction and other management 
     activities that reduce the risks and help restore, recover, 
     and mitigate the damage to forests caused by fire.
       ``(H) The development of forest or stand management plans.
       ``(I) Other activities approved by the Secretary, in 
     coordination with the State forester and the State Forest 
     Stewardship Coordinating Committee.
       ``(e) Cooperation.--In implementing the Program, the 
     Secretary shall cooperate with other Federal, State, and 
     local natural resource management agencies, institutions of 
     higher education, and the private sector.
       ``(f) Reimbursement of Eligible Activities.--
       ``(1) In general.--The Secretary shall share the cost of 
     implementing the approved activities that the Secretary 
     determines are appropriate, in the case of an owner that has 
     entered into an agreement to place nonindustrial private 
     forest lands of the owner in the Program.
       ``(2) Rate.--The Secretary shall determine the appropriate 
     reimbursement rate for cost-share payments under paragraph 
     (1) and the schedule for making such payments.
       ``(3) Maximum.--The Secretary shall not make cost-share 
     payments under this subsection to an owner in an amount in 
     excess of 75 percent of the total cost, or a lower percentage 
     as determined by the State forester, to such owner for 
     implementing the practices under an approved plan. The 
     maximum payments to any one owner shall be determined by the 
     Secretary.
       ``(4) Consultation.--The Secretary shall make 
     determinations under this subsection in consultation with the 
     State forester.
       ``(g) Recapture.--
       ``(1) In general.--The Secretary shall establish and 
     implement a mechanism to recapture payments made to an owner 
     in the event that the owner fails to implement any approved 
     activity specified in the individual stewardship, forest, or 
     stand management plan for which such owner received cost-
     share payments.
       ``(2) Additional remedy.--The remedy provided in paragraph 
     (1) is in addition to any other remedy available to the 
     Secretary.
       ``(h) Distribution.--The Secretary shall distribute funds 
     available for cost sharing under the Program among the States 
     only after giving appropriate consideration to--
       ``(1) the total acreage of nonindustrial private forest 
     land in each State;
       ``(2) the potential productivity of such land;
       ``(3) the number of owners eligible for cost sharing in 
     each State;
       ``(4) the opportunities to enhance non-timber resources on 
     such forest lands;
       ``(5) the anticipated demand for timber and nontimber 
     resources in each State;
       ``(6) the need to improve forest health to minimize the 
     damaging effects of catastrophic fire, insects, disease, or 
     weather; and
       ``(7) the need and demand for agroforestry practices in 
     each State.
       ``(i) Definitions.--In this section:
       ``(1) Nonindustrial private forest lands.--The term 
     `nonindustrial private forest lands' means rural lands, as 
     determined by the Secretary, that--
       ``(A) have existing tree cover or are suitable for growing 
     trees; and
       ``(B) are owned or controlled by any nonindustrial private 
     individual, group, association, corporation, Indian tribe, or 
     other private legal entity (other than a nonprofit private 
     legal entity) so long as the individual, group, association, 
     corporation, tribe, or entity has definitive decision-making 
     authority over the lands, including through long-term leases 
     and other land tenure systems, for a period of time long 
     enough to ensure compliance with the Program.
       ``(2) Owner.--The term `owner' includes a private 
     individual, group, association, corporation, Indian tribe, or 
     other private legal entity (other than a nonprofit private 
     legal entity) that has definitive decision-making authority 
     over nonindustrial private forest lands through a long-term 
     lease or other land tenure systems.
       ``(3) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(4) State forester.--The term `State forester' means the 
     director or other head of a State Forestry Agency or 
     equivalent State official.
       ``(j) Availability of Funds.--The Secretary shall use 
     $200,000,000 of funds of the Commodity Credit Corporation to 
     carry out the Program during the period beginning on October 
     1, 2001, and ending on September 30, 2011.''.
       (d) Conforming Amendment.--Section 246(b)(2) of the 
     Department of Agriculture Reorganization Act of 1994 (7 
     U.S.C. 6962(b)(2)) is amended by striking ``forestry 
     incentive program'' and inserting ``Forest Land Enhancement 
     Program''.

     SEC. 803. RENEWABLE RESOURCES EXTENSION ACTIVITIES.

       (a) Extension and Authorization Increase.--Section 6 of the 
     Renewable Resources Extension Act of 1978 (16 U.S.C. 1675) is 
     amended--
       (1) by striking ``$15,000,000'' and inserting 
     ``$30,000,000''; and
       (2) by striking ``2002'' and inserting ``2011''.
       (b) Sustainable Forestry Outreach Initiative.--The 
     Renewable Resources Extension Act of 1978 is amended by 
     inserting after section 5A (16 U.S.C. 1674a) the following 
     new section:

     ``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

       ``The Secretary shall establish a program to be known as 
     the `Sustainable Forestry Outreach Initiative' for the 
     purpose of educating landowners regarding the following:
       ``(1) The value and benefits of practicing sustainable 
     forestry.
       ``(2) The importance of professional forestry advice in 
     achieving their sustainable forestry objectives.
       ``(3) The variety of public and private sector resources 
     available to assist them in planning for and practicing 
     sustainable forestry.''.

     SEC. 804. ENHANCED COMMUNITY FIRE PROTECTION.

       (a) Findings.--Congress finds the following:
       (1) The severity and intensity of wildland fires has 
     increased dramatically over the past few decades as a result 
     of past fire and land management policies.
       (2) The record 2000 fire season is a prime example of what 
     can be expected if action is not taken.
       (3) These wildfires threaten not only the nation's forested 
     resources, but the thousands of communities intermingled with 
     the wildlands in the wildland-urban interface.
       (4) The National Fire Plan developed in response to the 
     2000 fire season is the proper, coordinated, and most 
     effective means to address this wildfire issue.
       (5) Whereas adequate authorities exist to tackle the 
     wildfire issues at the landscape level on Federal lands, 
     there is limited authority to take action on most private 
     lands where the largest threat to life and property lies.
       (6) There is a significant Federal interest in enhancing 
     community protection from wildfire.
       (b) Enhanced Protection.--The Cooperative Forestry 
     Assistance Act of 1978 is amended by inserting after section 
     10 (16 U.S.C. 2106) the following new section:

     ``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

       ``(a) Cooperative Management Related to Wildfire Threats.--
     The Secretary may cooperate with State foresters and 
     equivalent State officials in the management of lands in the 
     United States for the following purposes:
       ``(1) Aid in wildfire prevention and control.
       ``(2) Protect communities from wildfire threats.
       ``(3) Enhance the growth and maintenance of trees and 
     forests that promote overall forest health.
       ``(4) Ensure the continued production of all forest 
     resources, including timber, outdoor recreation 
     opportunities, wildlife habitat, and clean water, through 
     conservation of forest cover on watersheds, shelterbelts, and 
     windbreaks.
       ``(b) Community and Private Land Fire Assistance Program.--
       ``(1) Establishment; purpose.--The Secretary shall 
     establish a Community and Private Land Fire Assistance 
     program (in this section referred to as the `Program')--
       ``(A) to focus the Federal role in promoting optimal 
     firefighting efficiency at the Federal, State, and local 
     levels;
       ``(B) to augment Federal projects that establish landscape 
     level protection from wildfires;
       ``(C) to expand outreach and education programs to 
     homeowners and communities about fire prevention; and
       ``(D) to establish defensible space around private 
     landowners homes and property against wildfires.
       ``(2) Administration and implementation.--The Program shall 
     be administered by the Forest Service and implemented through 
     the State forester or equivalent State official.
       ``(3) Components.--In coordination with existing 
     authorities under this Act, the Secretary may undertake on 
     both Federal and non-Federal lands--
       ``(A) fuel hazard mitigation and prevention;
       ``(B) invasive species management;
       ``(C) multi-resource wildfire planning;
       ``(D) community protection planning;

[[Page 26858]]

       ``(E) community and landowner education enterprises, 
     including the program known as FIREWISE;
       ``(F) market development and expansion;
       ``(G) improved wood utilization;
       ``(H) special restoration projects.
       ``(4) Considerations.--The Secretary shall use local 
     contract personnel wherever possible to carry out projects 
     under the Program.
       ``(c) Authorization of Appropriations.--There are hereby 
     authorized to be appropriated to the Secretary $35,000,000 
     for each of fiscal years 2002 through 2011, and such sums as 
     may be necessary thereafter, to carry out this section.''.

     SEC. 805. INTERNATIONAL FORESTRY PROGRAM.

       Section 2405(d) of the Global Climate Change Prevention Act 
     of 1990 (title XXIV of Public Law 101-624; 7 U.S.C. 6704(d)) 
     is amended by striking ``2002'' and inserting ``2011''.

     SEC. 806. WILDFIRE PREVENTION AND HAZARDOUS FUEL PURCHASE 
                   PROGRAM.

       (a) Findings.--Congress finds that--
       (1) the damage caused by wildfire disasters has been 
     equivalent in magnitude to the damage resulting from the 
     Northridge earthquake, Hurricane Andrew, and the recent 
     flooding of the Mississippi River and the Red River;
       (2) more than 20,000 communities in the United States are 
     at risk from wildfire and approximately 11,000 of those 
     communities are located near Federal land;
       (3) the accumulation of heavy forest fuel loads continues 
     to increase as a result of disease, insect infestations, and 
     drought, further increasing the risk of fire each year;
       (4) modification of forest fuel load conditions through the 
     removal of hazardous fuels would--
       (A) minimize catastrophic damage from wildfires;
       (B) reduce the need for emergency funding to respond to 
     wildfires; and
       (C) protect lives, communities, watersheds, and wildlife 
     habitat;
       (5) the hazardous fuels removed from forest land represent 
     an abundant renewable resource, as well as a significant 
     supply of biomass for biomass-to-energy facilities;
       (6) the United States should invest in technologies that 
     promote economic and entrepreneurial opportunities in 
     processing forest products removed through hazardous fuel 
     reduction activities; and
       (7) the United States should--
       (A) develop and expand markets for traditionally underused 
     wood and other biomass as a value-added outlet for excessive 
     forest fuels; and
       (B) commit resources to support planning, assessments, and 
     project reviews to ensure that hazardous fuels management is 
     accomplished expeditiously and in an environmentally sound 
     manner.
       (b) Definitions.--In this section:
       (1) Biomass-to-energy facility.--The term ``biomass-to-
     energy facility'' means a facility that uses biomass as a raw 
     material to produce electric energy, useful heat, or a 
     transportation fuel.
       (2) Eligible community.--The term ``eligible community'' 
     means--
       (A) any town, township, municipality, or other similar unit 
     of local government (as determined by the Secretary), or any 
     area represented by a nonprofit corporation or institution 
     organized under Federal or State law to promote broad-based 
     economic development, that--
       (i) has a population of not more than 10,000 individuals;
       (ii) is located within a county in which at least 15 
     percent of the total primary and secondary labor and 
     proprietor income is derived from forestry, wood products, 
     and forest-related industries, such as recreation, forage 
     production, and tourism; and
       (iii) is located near forest land, the condition of which 
     land the Secretary determines poses a substantial present or 
     potential hazard to the safety of--

       (I) a forest ecosystem;
       (II) wildlife; or
       (III) in the case of a wildfire, human, community, or 
     firefighter safety, in a year in which drought conditions are 
     present; and

       (B) any county that is not contained within a metropolitan 
     statistical area that meets the conditions described in 
     clauses (ii) and (iii) of subparagraph (A).
       (3) Forest biomass.--The term ``forest biomass'' means fuel 
     and biomass accumulation from precommercial thinnings, slash, 
     and brush on forest land of the United States.
       (4) Hazardous fuel.--
       (A) In general.--The term ``hazardous fuel'' means any 
     excessive accumulation of organic material on public and 
     private forest land (especially land in an urban-wildland 
     interface area or in an area that is located near an eligible 
     community and designated as condition class 2 under the 
     report of the Forest Service entitled `Protecting People and 
     Sustainable Resources in Fire-Adapted Ecosystems', dated 
     October 13, 2000, or that is designated as condition class 3 
     under that report) that the Secretary determines poses a 
     substantial present or potential hazard to the safety of--
       (i) a forest ecosystem;
       (ii) wildlife; or
       (iii) in the case of wildfire, human, community, or 
     firefighter safety, in a year in which drought conditions are 
     present.
       (B) Exclusion.--The term ``hazardous fuel'' does not 
     include forest biomass.
       (5) Indian tribe.--The term ``Indian tribe'' has the 
     meaning given the term in section 4 of the Indian Self-
     Determination and Education Assistance Act (25 U.S.C. 450b).
       (6) Secretary.--The term ``Secretary'' means--
       (A) the Secretary of Agriculture (or a designee), with 
     respect to National Forest System land and private land in 
     the United States; and
       (B) the Secretary of the Interior (or a designee) with 
     respect to Federal land under the jurisdiction of the 
     Secretary of the Interior or an Indian tribe.
       (c) Hazardous Fuel Grant Program.--
       (1) Grants.--
       (A) In general.--Subject to the availability of 
     appropriations, the Secretary may make grants to persons that 
     operate biomass-to-energy facilities to offset the costs 
     incurred by those persons in purchasing hazardous fuels 
     derived from public and private forest land adjacent to 
     eligible communities.
       (B) Selection criteria.--The Secretary shall select 
     recipients for grants under subparagraph (A) based on--
       (i) planned purchases by the recipients of hazardous fuels, 
     as demonstrated by the recipient through the submission to 
     the Secretary of such assurances as the Secretary may 
     require; and
       (ii) the level of anticipated benefits of those purchases 
     in reducing the risk of wildfires.
       (2) Grant amounts.--
       (A) In general.--A grant under this subsection shall--
       (i) be based on--

       (I) the distance required to transport hazardous fuels to a 
     biomass-to-energy facility; and
       (II) the cost of removal of hazardous fuels; and

       (ii) be in an amount that is at least equal to the product 
     obtained by multiplying--

       (I) the number of tons of hazardous fuels delivered to a 
     grant recipient; by
       (II) an amount that is at least $5 but not more than $10 
     per ton of hazardous fuels, as determined by the Secretary 
     taking into consideration the factors described in clause 
     (i).

       (B) Limitation on individual grants.--
       (i) In general.--Except as provided in clause (ii), a grant 
     under subparagraph (A) shall not exceed $1,500,000 for any 
     biomass-to-energy facility for any year.
       (ii) Small biomass-to-energy facilities.--A biomass-to-
     energy facility that has an annual production of 5 megawatts 
     or less shall not be subject to the limitation under clause 
     (i).
       (3) Monitoring of grant recipient activities.--
       (A) In general.--As a condition of receipt of a grant under 
     this subsection, a grant recipient shall keep such records as 
     the Secretary may require, including records that--
       (i) completely and accurately disclose the use of grant 
     funds; and
       (ii) describe all transactions involved in the purchase of 
     hazardous fuels derived from forest land.
       (B) Access.--On notice by the Secretary, the operator of a 
     biomass-to-energy facility that purchases hazardous fuels, or 
     uses hazardous fuels purchased, with funds from a grant under 
     this subsection shall provide the Secretary with--
       (i) reasonable access to the biomass-to-facility; and
       (ii) an opportunity to examine the inventory and records of 
     the biomass-to-energy facility.
       (4) Monitoring of effect of treatments.--The Secretary 
     shall monitor Federal land from which hazardous fuels are 
     removed and sold to a biomass-to-energy facility under this 
     subsection to determine and document the reduction in fire 
     hazards on that land.
       (5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $50,000,000 
     for each fiscal year.
       (d) Long-Term Forest Stewardship Contracts for Hazardous 
     Fuels Removal.--
       (1) Annual assessment of treatment acreage.--
       (A) In general.--Subject to the availability of 
     appropriations, not later than March 1 of each of fiscal 
     years 2002 through 2006, the Secretary shall submit to 
     Congress an assessment of the number of acres of Federal 
     forest land recommended to be treated during the subsequent 
     fiscal year using stewardship end result contracts authorized 
     by paragraph (3).
       (B) Components.--The assessment shall--
       (i) be based on the treatment schedules contained in the 
     report entitled `Protecting People and Sustaining Resources 
     in Fire-Adapted Ecosystems', dated October 13, 2000 and 
     incorporated into the National Fire Plan;
       (ii) identify the acreage by condition class, type of 
     treatment, and treatment year to achieve the restoration 
     goals outlined in the report within 10-, 15-, and 20-year 
     time periods;
       (iii) give priority to condition class 3 areas (as 
     described in subsection (a)(4)(A)), include

[[Page 26859]]

     modifications in the restoration goals based on the effects 
     of--

       (I) fire;
       (II) hazardous fuel treatments under the National Fire 
     Plan; or
       (III) updates in data;

       (iv) provide information relating to the type of material 
     and estimated quantities and range of sizes of material that 
     shall be included in the treatments;
       (v) describe the land allocation categories in which the 
     contract authorities shall be used; and
       (vi) give priority to areas described in subsection 
     (a)(4)(A).
       (2) Funding recommendation.--The Secretary shall include in 
     the annual assessment under paragraph (1) a request for funds 
     sufficient to implement the recommendations contained in the 
     assessment using stewardship end result contracts described 
     in paragraph (3) in any case in which the Secretary 
     determines that the objectives of the National Fire Plan 
     would best be accomplished through forest stewardship end 
     result contracting.
       (3) Stewardship end result contracting.--
       (A) In general.--Subject to the availability of 
     appropriations, the Secretary may enter into stewardship end 
     result contracts to implement the National Fire Plan on 
     National Forest System land based on the stewardship 
     treatment schedules provided in the annual assessments 
     conducted under paragraph (1).
       (B) Period of contracts.--The contracting goals and 
     authorities described in subsections (b) through (g) of 
     section 347 of the Department of the Interior and Related 
     Agencies Appropriations Act, 1999 (commonly known as the 
     `Stewardship End Result Contracting Demonstration Project') 
     (16 U.S.C. 2104 note; Public Law 105-277), shall apply to 
     contracts entered into under this paragraph, except that the 
     period of each such contract shall be 10 years.
       (C) Status report.--Beginning with the assessment required 
     under paragraph (1) for fiscal year 2003, the Secretary shall 
     include in the annual assessment under paragraph (1) a status 
     report of the stewardship end result contracts entered into 
     under this paragraph.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subsection.
       (e) Termination of Authority.--The authority provided under 
     this section shall terminate on September 30, 2006.

     SEC. 807. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH 
                   PROGRAM.

       It is the sense of Congress to reaffirm the importance of 
     Public Law 87-88 (16 U.S.C. 582a et seq.), commonly known as 
     the McIntire-Stennis Cooperative Forestry Act.

                   TITLE IX--MISCELLANEOUS PROVISIONS

                  Subtitle A--Tree Assistance Program

     SEC. 901. ELIGIBILITY.

       (a) Loss.--Subject to the limitation in subsection (b), the 
     Secretary of Agriculture shall provide assistance, as 
     specified in section 902, to eligible orchardists that 
     planted trees for commercial purposes but lost such trees as 
     a result of a natural disaster, as determined by the 
     Secretary.
       (b) Limitation.--An eligible orchardist shall qualify for 
     assistance under subsection (a) only if such orchardist's 
     tree mortality, as a result of the natural disaster, exceeds 
     15 percent (adjusted for normal mortality).

     SEC. 902. ASSISTANCE.

       The assistance provided by the Secretary of Agriculture to 
     eligible orchardists for losses described in section 901 
     shall consist of either--
       (1) reimbursement of 75 percent of the cost of replanting 
     trees lost due to a natural disaster, as determined by the 
     Secretary, in excess of 15 percent mortality (adjusted for 
     normal mortality); or
       (2) at the discretion of the Secretary, sufficient 
     seedlings to reestablish the stand.

     SEC. 903. LIMITATION ON ASSISTANCE.

       (a) Limitation.--The total amount of payments that a person 
     shall be entitled to receive under this subtitle may not 
     exceed $50,000, or an equivalent value in tree seedlings.
       (b) Regulations.--The Secretary of Agriculture shall issue 
     regulations--
       (1) defining the term ``person'' for the purposes of this 
     subtitle, which shall conform, to the extent practicable, to 
     the regulations defining the term ``person'' issued under 
     section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
     and the Disaster Assistance Act of 1988 (7 U.S.C. 1421 note); 
     and
       (2) prescribing such rules as the Secretary determines 
     necessary to ensure a fair and reasonable application of the 
     limitation established under this section.

     SEC. 904. DEFINITIONS.

       In this subtitle:
       (1) Eligible orchardist.--The term ``eligible orchardist'' 
     means a person who produces annual crops from trees for 
     commercial purposes and owns 500 acres or less of such trees.
       (2) Natural disaster.--The term ``natural disaster'' 
     includes plant disease, insect infestation, drought, fire, 
     freeze, flood, earthquake, and other occurrences, as 
     determined by the Secretary.
       (3) Tree.--The term ``tree'' includes trees, bushes, and 
     vines.

                       Subtitle B--Other Matters

     SEC. 921. BIOENERGY PROGRAM.

       Notwithstanding any limitations in the Commodity Credit 
     Corporation Charter Act (15 U.S.C. 714 et seq.) or part 1424 
     of title 7, Code of Federal Regulations, the Commodity Credit 
     Corporation shall designate animal fats, agricultural 
     byproducts, and oils as eligible agricultural commodities for 
     use in the Bioenergy Program to promote industrial 
     consumption of agricultural commodities for the production of 
     ethanol and biodiesel fuels.

     SEC. 922. AVAILABILITY OF SECTION 32 FUNDS.

       The 2d undesignated paragraph of section 32 of the Act of 
     August 24, 1935 (Public Law 320; 49 Stat. 774; 7 U.S.C. 
     612c), is amended by striking ``$300,000,000'' and inserting 
     ``$500,000,000''.

     SEC. 923. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

       (a) Establishment.--For each of the fiscal years 2002 
     through 2011, the Secretary of Agriculture shall use 
     $15,000,000 of the funds available to the Commodity Credit 
     Corporation to carry out and expand a seniors farmers' market 
     nutrition program.
       (b) Program Purposes.-- The purposes of the seniors 
     farmers' market nutrition program are--
       (1) to provide resources in the form of fresh, nutritious, 
     unprepared, locally grown fruits, vegetables, and herbs from 
     farmers' markets, roadside stands and community supported 
     agriculture programs to low-income seniors;
       (2) to increase the domestic consumption of agricultural 
     commodities by expanding or aiding in the expansion of 
     domestic farmers' markets, roadside stands, and community 
     supported agriculture programs; and
       (3) to develop or aid in the development of new and 
     additional farmers' markets, roadside stands, and community 
     supported agriculture programs.
       (c) Regulations.--The Secretary may issue such regulations 
     as the Secretary considers necessary to carry out the seniors 
     farmers' market nutrition program.

     SEC. 924. DEPARTMENT OF AGRICULTURE AUTHORITIES REGARDING 
                   CANEBERRIES.

       (a) Authority for Marketing Order and Research and 
     Promotion Order.--Section 8c of the Agricultural Adjustment 
     Act (7 U.S.C. 608c), reenacted with amendments by the 
     Agricultural Marketing Agreement Act of 1937, is amended--
       (1) in subsection (2)--
       (A) in paragraph (A), by inserting ``caneberries (including 
     raspberries, blackberries, and logenberries),'' after ``other 
     than pears, olives, grapefruit,''; and
       (B) in the second sentence, by inserting ``caneberries 
     (including raspberries, blackberries, and logenberries),'' 
     after ``effective as to cherries, apples,''; and
       (2) in subsection (6)(I), by inserting ``caneberries 
     (including raspberries, blackberries, and logenberries)'' 
     after ``tomatoes,''.
       (b) Authority With Respect to Imports.--Section 8e(a) of 
     such Act (7 U.S.C. 608e-1(a)) is amended by inserting 
     ``caneberries (including raspberries, blackberries, and 
     logenberries),'' after ``pistachios,''.

     SEC. 925. NATIONAL APPEALS DIVISION.

       Section 278 of the Department of Agriculture Reorganization 
     Act of 1994 (7 U.S.C. 6998) is amended by adding at the end 
     the following new subsection:
       ``(f) Finality of Certain Appeal Decisions.--If an 
     appellant prevails at the regional level in an administrative 
     appeal of a decision by the Division, the agency may not 
     pursue an administrative appeal of that decision to the 
     national level.''.

     SEC. 926. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED 
                   FARMERS AND RANCHERS.

       Subsection (a) of section 2501 of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (7 U.S.C. 2279) is 
     amended to read as follows:
       ``(a) Outreach and Assistance.--
       ``(1) In general.--The Secretary of Agriculture (in this 
     section referred to as the `Secretary') shall provide 
     outreach and technical assistance programs specifically to 
     encourage and assist socially disadvantaged farmers and 
     ranchers to own and operate farms and ranches and to 
     participate equitably in the full range of agricultural 
     programs. This assistance, which should enhance coordination 
     and make more effective the outreach, technical assistance, 
     and education efforts authorized in specific agriculture 
     programs, shall include information and assistance on 
     commodity, conservation, credit, rural, and business 
     development programs, application and bidding procedures, 
     farm and risk management, marketing, and other essential 
     information to participate in agricultural and other programs 
     of the Department.
       ``(2) Grants and contracts.--The Secretary may make grants 
     and enter into contracts and other agreements in the 
     furtherance of this section with the following entities:
       ``(A) Any community-based organization, network, or 
     coalition of community-based organizations that--
       ``(i) has demonstrated experience in providing agricultural 
     education or other agriculturally related services to 
     socially disadvantaged farmers and ranchers;

[[Page 26860]]

       ``(ii) provides documentary evidence of its past experience 
     of working with socially disadvantaged farmers and ranchers 
     during the 2 years preceding its application for assistance 
     under this section; and
       ``(iii) does not engage in activities prohibited under 
     section 501(c)(3) of the Internal Revenue Code of 1986.
       ``(B) 1890 Land-Grant Colleges, including Tuskegee 
     Institute, Indian tribal community colleges and Alaska native 
     cooperative colleges, Hispanic serving post-secondary 
     educational institutions, and other post-secondary 
     educational institutions with demonstrated experience in 
     providing agriculture education or other agriculturally 
     related services to socially disadvantaged family farmers and 
     ranchers in their region.
       ``(C) Federally recognized tribes and national tribal 
     organizations with demonstrated experience in providing 
     agriculture education or other agriculturally related 
     services to socially disadvantaged family farmers and 
     ranchers in their region.
       ``(3) Funding.--There are authorized to be appropriated 
     $25,000,000 for each fiscal year to make grants and enter 
     into contracts and other agreements with the entities 
     described in paragraph (2) and to otherwise carry out the 
     purposes of this subsection.''.

     SEC. 927. EQUAL TREATMENT OF POTATOES AND SWEET POTATOES.

       Section 508(a)(2) of the Federal Crop Insurance Act (7 
     U.S.C. 1508(a)(2)) is amended by striking ``and potatoes'' 
     and inserting ``, potatoes, and sweet potatoes''.

     SEC. 928. REFERENCE TO SEA GRASS AND SEA OATS AS CROPS 
                   COVERED BY NONINSURED CROP DISASTER ASSISTANCE 
                   PROGRAM.

       Section 196(a)(2)(B) of the Federal Agriculture Improvement 
     and Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by 
     inserting ``sea grass and sea oats,'' after ``fish),''.

     SEC. 929. ASSISTANCE FOR LIVESTOCK PRODUCERS.

       (a) Availability of Assistance.--In such amounts as are 
     provided in advance in appropriation Acts, the Secretary may 
     provide assistance to dairy and other livestock producers to 
     cover economic losses incurred by such producers in 
     connection with the production of livestock.
       (b) Types of Assistance.--The assistance provided to 
     livestock producers may be in the form of--
       (1) indemnity payments to livestock producers who incur 
     livestock mortality losses;
       (2) livestock feed assistance to livestock producers 
     affected by shortages of feed;
       (3) compensation for sudden increases in production costs; 
     and
       (4) such other assistance, and for such other economic 
     losses, as the Secretary considers appropriate.
       (c) Limitations.--Notwithstanding section 181(a), the 
     Secretary may not use the funds of the Commodity Credit 
     Corporation to provide assistance under this section.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary to carry out this section.

     SEC. 930. COMPLIANCE WITH BUY AMERICAN ACT AND SENSE OF 
                   CONGRESS REGARDING PURCHASE OF AMERICAN-MADE 
                   EQUIPMENT, PRODUCTS, AND SERVICES USING FUNDS 
                   PROVIDED UNDER THIS ACT.

       (a) Compliance With Buy American Act.--No funds made 
     available under this Act, whether directly using funds of the 
     Commodity Credit Corporation or pursuant to an authorization 
     of appropriations contained in this Act, may be provided to a 
     producer or other person or entity unless the producer, 
     person, or entity agrees to comply with the Buy American Act 
     (41 U.S.C. 10a-10c) in the expenditure of the funds.
       (b) Sense of Congress.--In the case of any equipment, 
     products, or services that may be authorized to be purchased 
     using funds provided under this Act, it is the sense of 
     Congress that producers and other recipients of such funds 
     should, in expending the funds, purchase only American-made 
     equipment, products, and services.
       (c) Notice to Recipients of Funds.--In providing payments 
     or other assistance under this Act, the Secretary of 
     Agriculture shall provide to each recipient of the funds a 
     notice describing the requirements of subsection (a) and the 
     statement made in subsection (b) by Congress.

     SEC. 931. REPORT REGARDING GENETICALLY ENGINEERED FOODS.

       (a) In General.--Not later than 1 year after funds are made 
     available to carry out this section, the Secretary of 
     Agriculture, acting through the National Academy of Sciences, 
     shall complete and transmit to Congress a report that 
     includes recommendations for the following:
       (1) Data and tests.--The type of data and tests that are 
     needed to sufficiently assess and evaluate human health risks 
     from the consumption of genetically engineered foods.
       (2) Monitoring system.--The type of Federal monitoring 
     system that should be created to assess any future human 
     health consequences from long-term consumption of genetically 
     engineered foods.
       (3) Regulations.--A Federal regulatory structure to approve 
     genetically engineered foods that are safe for human 
     consumption.
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Agriculture $500,000 
     to carry out this section.

     SEC. 932. MARKET NAME FOR PANGASIUS FISH SPECIES.

       The term ``catfish'' may not be considered to be a common 
     or usual name (or part thereof) for the fish Pangasius 
     bocourti, or for any other fish not classified within the 
     family Ictalariidae, for purposes of section 403 of the 
     Federal Food, Drug, and Cosmetic Act, including with respect 
     to the importation of such fish pursuant to section 801 of 
     such Act.

     SEC. 933. PROGRAM OF PUBLIC EDUCATION REGARDING USE OF 
                   BIOTECHNOLOGY IN PRODUCING FOOD FOR HUMAN 
                   CONSUMPTION.

       (a) Public Information Campaign.--Not later than 1 year 
     after the date of the enactment of this Act, the Secretary of 
     Agriculture shall develop and implement a program to 
     communicate with the public regarding the use of 
     biotechnology in producing food for human consumption. The 
     information provided under the program shall include the 
     following:
       (1) Science-based evidence on the safety of foods produced 
     with biotechnology.
       (2) Scientific data on the human outcomes of the use of 
     biotechnology to produce food for human consumption.
       (b) Authorization of Appropriations.--For each of fiscal 
     years 2002 through 2011 there are authorized to be 
     appropriated such sums as may be necessary to carry out this 
     section.

     SEC. 934. GAO STUDY.

       (a) In General.--The Comptroller General shall conduct a 
     study and make findings and recommendations with respect to 
     determining how producer income would be affected by updating 
     yield bases, including--
       (1) whether crop yields have increased over the past 20 
     years for both program crops and oilseeds;
       (2) whether program payments would be disbursed differently 
     in this Act if yield bases were updated;
       (3) what impact this Act's target prices with updated yield 
     bases would have on producer income; and
       (4) what impact lower target prices with updated yield 
     bases would have on producer income compared to this Act.
       (b) Report.--The Comptroller General shall submit a report 
     to Congress on the study, findings, and recommendations 
     required by subsection (a), not later than 6 months after the 
     date of the enactment of this Act.

     SEC. 935. INTERAGENCY TASK FORCE ON AGRICULTURAL COMPETITION.

       (a) Appointment.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary of Agriculture shall 
     establish an Interagency Task Force on Agricultural 
     Competition (in this section referred to as the ``Task 
     Force'') and, after consultation with the Attorney General, 
     shall appoint as members of the Task Force such nine 
     employees of the Department of Agriculture and the Department 
     of Justice as the Secretary considers to be appropriate. The 
     Secretary shall designate one member of the Task Force to 
     serve as chairperson of the Task Force.
       (b) Hearings.--The Task Force shall conduct hearings to 
     review the lessening of competition among purchasers of 
     livestock, poultry, and unprocessed agricultural commodities 
     in the United States and shall include in such hearings 
     review of the following matters:
       (1) The enforcement of particular Federal laws relating to 
     competition.
       (2) The concentration and vertical integration of the 
     business operations of such purchasers.
       (3) Discrimination and transparency in prices paid by such 
     purchasers to producers of livestock, poultry, and 
     unprocessed agricultural commodities in the United States.
       (4) The economic protection and bargaining rights of 
     producers who raise livestock and poultry under contracts.
       (5) Marketing innovations and alternatives available to 
     producers of livestock, poultry, and unprocessed agricultural 
     commodities in the United States.
       (c) Report.--Not later than 1 year after the last member of 
     the Task Force is appointed, the Task Force 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 containing the findings and 
     recommendations of the Task Force for appropriate 
     administrative and legislative action.

     SEC. 936. AUTHORIZATION FOR ADDITIONAL STAFF AND FUNDING FOR 
                   THE GRAIN INSPECTION, PACKERS AND STOCKYARDS 
                   ADMINISTRATION.

       There are authorized to be appropriated such sums as are 
     necessary to enhance the capability of the Grain Inspection, 
     Packers and Stockyards Administration to monitor, 
     investigate, and pursue the competitive implications of 
     structural changes in the meat packing industry. Sums are 
     specifically earmarked to hire litigating attorneys to allow 
     the Grain Inspection, Packers and Stockyards Administration 
     to more comprehensively and effectively pursue its 
     enforcement activities.

     SEC. 937. ENFORCEMENT OF THE HUMANE METHODS OF SLAUGHTER ACT 
                   OF 1958.

       (a) Findings.--Congress finds as follows:

[[Page 26861]]

       (1) Public demand for passage of Public Law 85-765 (7 
     U.S.C. 1901 et seq.; commonly known as the ``Humane Methods 
     of Slaughter Act of 1958'') was so great that when President 
     Eisenhower was asked at a press conference if he would sign 
     the bill, he replied, ``If I went by mail, I'd think no one 
     was interested in anything but humane slaughter''.
       (2) The Humane Methods of Slaughter Act of 1958 requires 
     that animals be rendered insensible to pain when they are 
     slaughtered.
       (3) Scientific evidence indicates that treating animals 
     humanely results in tangible economic benefits.
       (4) The United States Animal Health Association passed a 
     resolution at a meeting in October 1998 to encourage strong 
     enforcement of the Humane Methods of Slaughter Act of 1958 
     and reiterated support for the resolution at a meeting in 
     2000.
       (5) The Secretary of Agriculture is responsible for fully 
     enforcing the Act, including monitoring compliance by the 
     slaughtering industry.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Agriculture should fully enforce Public Law 
     85-765 (7 U.S.C. 1901 et seq.; commonly known as the ``Humane 
     Methods of Slaughter Act of 1958'') by ensuring that humane 
     methods in the slaughter of livestock--
       (1) prevent needless suffering;
       (2) result in safer and better working conditions for 
     persons engaged in the slaughtering industry;
       (3) bring about improvement of products and economies in 
     slaughtering operations; and
       (4) produce other benefits for producers, processors, and 
     consumers that tend to expedite an orderly flow of livestock 
     and livestock products in interstate and foreign commerce.
       (c) Policy of the United States.--It is the policy of the 
     United States that the slaughtering of livestock and the 
     handling of livestock in connection with slaughter shall be 
     carried out only by humane methods, as provided by Public Law 
     85-765 (7 U.S.C. 1901 et seq.; commonly known as the ``Humane 
     Methods of Slaughter Act of 1958'').

     SEC. 938. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE 
                   ANIMAL WELFARE ACT.

       (a) Penalties and Foreign Commerce Provisions of the Animal 
     Welfare Act.--Section 26 of the Animal Welfare Act (7 U.S.C. 
     2156) is amended--
       (1) in subsection (e)--
       (A) by inserting ``Penalties.--'' after ``(e)'';
       (B) by striking ``$5,000'' and inserting ``$15,000''; and
       (C) by striking ``1 year'' and inserting ``2 years''; and
       (2) in subsection (g)(2)(B), by inserting at the end before 
     the semicolon the following: ``or from any State into any 
     foreign country''.
       (b) Effective Date.--The amendments made by this section 
     take effect 30 days after the date of the enactment of this 
     Act.

     SEC. 939. IMPROVE ADMINISTRATION OF ANIMAL AND PLANT HEALTH 
                   INSPECTION SERVICE.

       (a) Definitions.--In this section:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture, acting through the Administrator of the 
     Service.
       (2) Service.--The term ``Service'' means the Animal and 
     Plant Health Inspection Service of the Department of 
     Agriculture.
       (b) Exemption.--Notwithstanding any other provision of law, 
     any migratory bird management carried out by the Secretary 
     shall be exempt from the National Environmental Policy Act of 
     1969 (42 U.S.C. 4321 et seq.) (including regulations).
       (c) Permits; Management.--An agent, officer, or employee of 
     the Service that carries out any activity relating to 
     migratory bird management may, under the Migratory Bird 
     Treaty Act (16 U.S.C. 703 et seq.)--
       (1) issue a depredation permit to a stakeholder or 
     cooperator of the Service; and
       (2) manage and take migratory birds.

     SEC. 940. RENEWABLE ENERGY RESOURCES.

       (a) Environmental Quality Incentives Program.--Section 1240 
     of the Food Security Act of 1985 (16 U.S.C. 3839aa), as 
     amended by section 231 of this Act, is amended--
       (1) by striking ``and'' at the end of paragraph (3);
       (2) by striking the period at the end of paragraph (4); and
       (3) by adding at the end the following:
       ``(5) assistance to farmers and ranchers for the assessment 
     and development of their on-farm renewable resources, 
     including biomass for the production of power and fuels, 
     wind, and solar.''.
       (b) Cooperative State Research, Education, and Extension 
     Service.--The Secretary of Agriculture, through the 
     Cooperative State Research, Education, and Extension Service 
     and, to the extent practicable, in collaboration with the 
     Natural Resources Conservation Service, regional biomass 
     programs under the Department of Energy, and other 
     appropriate entities, may provide education and technical 
     assistance to farmers and ranchers for the development and 
     marketing of renewable energy resources, including biomass 
     for the production of power and fuels, wind, solar, and 
     geothermal.

     SEC. 941. USE OF AMOUNTS PROVIDED FOR FIXED, DECOUPLED 
                   PAYMENTS TO PROVIDE NECESSARY FUNDS FOR RURAL 
                   DEVELOPMENT PROGRAMS.

       Notwithstanding section 104 of this Act, in each of fiscal 
     years 2002 through 2011, the Secretary of Agriculture shall--
       (1) reduce the total amount payable under section 104 of 
     this Act, on a pro rata basis, so that the total amount of 
     such reductions equals $100,000,000; and
       (2) expend--
       (A) $45,000,000 for grants under 306A of the Consolidated 
     Farm and Rural Development Act (relating to the community 
     water assistance grant program);
       (B) $45,000,000 for grants under 613 of this Act (relating 
     to the pilot program for development and implementation of 
     strategic regional development plans); and
       (C) $10,000,000 for grants under section 231(a)(1) of the 
     Agricultural Risk Protection Act of 2000 (relating to value-
     added agricultural product market development grants).

     SEC. 942. STUDY OF NONAMBULATORY LIVESTOCK.

       The Secretary--
       (1) shall investigate and submit to Congress a report on--
       (A) the scope and cause of nonambulatory livestock; and
       (B) the extent to which nonambulatory livestock may present 
     handling and disposition problems during marketing; and
       (2) based on the findings in the report, may promulgate 
     regulations for the appropriate treatment, handling, and 
     disposition of nonambulatory livestock at market agencies and 
     dealers.
                                  ____

  SA 2677. Mr. DORGAN (for himself, Mr. Grassley, Mr. Hagel, Mr. Lugar, 
Mr. Johnson, Mr. Nelson of Nebraska, Mr. Torricelli, and Mr. Wellstone) 
submitted an amendment intended to be proposed to amendment SA 2471 
submitted by Mr. Daschle and intended to be proposed to the bill (S. 
1731) to strengthen the safety net for agricultural producers, to 
enhance resource conservation and rural development, to provide for 
farm credit, agricultural research, nutrition, and related programs, to 
ensure consumers abundant food and fiber, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. 165. PAYMENT LIMITATIONS; NUTRITION AND COMMODITY 
                   PROGRAMS.

       (a) Payment Limitations.--
       (1) In general.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308) is amended by striking paragraphs (1) 
     through (6) and inserting the following:
       ``(1) Limitations on direct and counter-cyclical 
     payments.--Subject to paragraph (5)(A), the total amount of 
     direct payments and counter-cyclical payments made directly 
     or indirectly to an individual or entity during any fiscal 
     year may not exceed $75,000.
       ``(2) Limitations on marketing loan gains, loan deficiency 
     payments, and commodity certificate transactions.--
       ``(A) In general.--Subject to paragraph (5)(A), the total 
     amount of the payments and benefits described in subparagraph 
     (B) that an individual or entity may directly or indirectly 
     receive during any crop year may not exceed $150,000.
       ``(B) Payments and benefits.--Subparagraph (A) shall apply 
     to the following payments and benefits:
       ``(i) Marketing loan gains.--

       ``(I) Repayment gains.--Any gain realized by a producer 
     from repaying a marketing assistance loan under section 131 
     or 158G(a) of the Federal Agriculture Improvement and Reform 
     Act of 1996 for a crop of any loan commodity or peanuts, 
     respectively, at a lower level than the original loan rate 
     established for the loan commodity or peanuts under section 
     132 or 158G(d) of that Act, respectively.
       ``(II) Forfeiture gains.--In the case of settlement of a 
     marketing assistance loan under section 131 or 158G(a) of 
     that Act for a crop of any loan commodity or peanuts, 
     respectively, by forfeiture, the amount by which the loan 
     amount exceeds the repayment amount for the loan if the loan 
     had been settled by repayment instead of forfeiture.

       ``(ii) Loan deficiency payments.--Any loan deficiency 
     payment received for a loan commodity or peanuts under 
     section 135 or 158G(e) of that Act, respectively.
       ``(iii) Commodity certificates.--Any gain realized from the 
     use of a commodity certificate issued by the Commodity Credit 
     Corporation, as determined by the Secretary, including the 
     use of a certificate for the settlement of a marketing 
     assistance loan made under section 131 or 158G(a) of that 
     Act.
       ``(3) Settlement of certain loans.--Notwithstanding 
     subtitle C and section 158G of the Federal Agriculture 
     Improvement and Reform Act of 1996, if the amount of payments 
     and benefits described in paragraph (2)(B) attributed 
     directly or indirectly to an individual or entity for a crop 
     year reaches the limitation described in paragraph (2)(A), 
     the portion of any unsettled marketing assistance loan made 
     under section 131 or

[[Page 26862]]

     158G(a) of that Act attributed directly or indirectly to the 
     individual or entity shall be settled through the repayment 
     of the total loan principal, plus applicable interest.
       ``(4) Definitions.--In this section and sections 1001A 
     through 1001F:
       ``(A) Counter-cyclical payment.--The term `counter-cyclical 
     payment'' means a payment made under section 114 or 158D of 
     the Federal Agriculture Improvement and Reform Act of 1996.
       ``(B) Direct payment.--The term `direct payment' means a 
     payment made under section 113 or 158C of that Act.
       ``(C) Loan commodity.--The term `loan commodity' has the 
     meaning given the term in section 102 of that Act.
       ``(D) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(5) Application of limitation.--
       ``(A) Married couples.--A married couple is limited to the 
     amount of payments and benefits described in paragraphs (1) 
     and (2), except that a married couple may receive an 
     additional $50,000 in combined benefits, to the extent that 
     the combined benefit does not exceed $275,000 during the 
     fiscal or crop year (as applicable).
       ``(B) Tenant rule.--
       ``(i) In general.--Any individual or entity that conducts a 
     farming operation to produce a crop subject to the 
     limitations established under this section as a tenant shall 
     be ineligible to receive any payment or benefit described in 
     paragraph (1) or (2), or subtitle D of title XII, with 
     respect to the land unless the individual or entity makes a 
     contribution of active personal labor to the operation that 
     is at least equal to the lesser of--

       ``(I) 1000 hours; or
       ``(II) 40 percent of the minimum number of labor hours 
     required to produce each commodity by the operation (as 
     described in clause (ii)).

       ``(ii) Minimum number of labor hours.--For the purpose of 
     clause (i)(II), the minimum number of labor hours required to 
     produce each commodity shall be equal to the number of hours 
     that would be necessary to conduct a farming operation for 
     the production of each commodity that is comparable in size 
     to an individual or entity's commensurate share in the 
     farming operation for the production of the commodity, based 
     on the minimum number of hours per acre required to produce 
     the commodity in the State where the farming operation is 
     located, as determined by the Secretary.
       ``(6) Public schools.--The provisions of this section that 
     limit payments to any individual or entity shall not be 
     applicable to land owned by a public school district or land 
     owned by a State that is used to maintain a public school.''.
       (2) Substantive change.--Section 1001A(a) of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1(a)) is amended--
       (A) in the section heading, by striking ``PREVENTION OF 
     CREATION OF ENTITIES TO QUALITY AS SEPARATE PERSONS;'' and 
     inserting ``SUBSTANTIVE CHANGE;'';
       (B) by striking ``(a) Prevention'' and all that follows 
     through the end of paragraph (2) and inserting the following:
       ``(a) Substantive change.--
       ``(1) In general.--The Secretary may not approve (for 
     purposes of the application of the limitations under this 
     section) any change in a farming operation that otherwise 
     will increase the number of individuals or entities to which 
     the limitations under this section are applied unless the 
     Secretary determines that the change is bona fide and 
     substantive.
       ``(2) Family members.--For the purpose of paragraph (1), 
     the addition of a family member to a farming operation under 
     the criteria established under subsection (b)(1)(B) shall be 
     considered a bona fide and substantive change in the farming 
     operation.'';
       (C) in the first sentence of paragraph (3)--
       (i) by striking ``as a separate person''; and
       (ii) by inserting ``, as determined by the Secretary'' 
     before the period at the end; and
       (D) by striking paragraph (4).
       (3) Actively engaged in farming.--Section 1001A(b) of the 
     Food Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--To be eligible to receive, directly or 
     indirectly, payments (as described in paragraphs (1) and (2) 
     of section 1001 as being subject to limitation) with respect 
     to a particular farming operation an individual or entity 
     shall be actively engaged in farming with respect to the 
     operation, as provided under paragraphs (2), (3), and (4).'';
       (B) in paragraph (2), by adding at the end the following:
       ``(E) Active personal management.--For an individual to be 
     considered to be providing active personal management under 
     this paragraph on behalf of the individual or a corporation 
     or entity, the management provided by the individual shall be 
     personally provided on a regular, substantial, and continuous 
     basis through the direction supervision and direction of--
       ``(i) activities and labor involved in the farming 
     operation; and
       ``(ii) on-site services that are directly related and 
     necessary to the farming operation.'';
       (C) in paragraph (3)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Landowners.--A person that is a landowner 
     contributing the owned land to the farming operation and that 
     meets the standard provided in clauses (ii) and (iii) of 
     paragraph (2)(A), if the landowner--
       ``(i)(I) share rents the land to a tenant that is actively 
     engaged in farming; and
       ``(II) has a share of any payments described in paragraphs 
     (1), (2), and (3) of section 1001 that is commensurate with 
     the person's share in the crop produced on the land for which 
     the payments are made; or
       ``(ii) makes a significant contribution of active personal 
     management.''; and
       (ii) in subparagraph (B), by striking ``persons'' and 
     inserting ``individuals and entities''; and
       (D) in paragraph (4)--
       (i) in the paragraph heading, by striking ``Persons'' and 
     inserting ``Individuals and entities'';
       (ii) in the matter preceding subparagraph (A), by striking 
     ``persons'' and inserting ``individuals and entities''; and
       (iii) in subparagraph (B)--

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

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

     ``SEC. 1001F. NET INCOME LIMITATION.

       ``Notwithstanding any other provision of title I of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7201 et seq.), an owner or producer shall not be 
     eligible for a payment or benefit described in paragraphs (1) 
     or (2) of section 1001 for a fiscal or crop year (as 
     appropriate) if the average adjusted gross income (as defined 
     in section 62 of the Internal Revenue Code of 1986)

[[Page 26863]]

     of the owner or producer for each of the preceding 3 taxable 
     years exceeds $2,500,000.''.
       (c) Food Stamp Program.--
       (1) Increase in benefits to households with children.--
     Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 2014(e)) 
     is amended by striking paragraph (1) and inserting the 
     following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow for each household a 
     standard deduction that is equal to the greater of--
       ``(i) the applicable percentage specified in subparagraph 
     (D) of the applicable income standard of eligibility 
     established under subsection (c)(1); or
       ``(ii) the minimum deduction specified in subparagraph (E).
       ``(B) Guam.--The Secretary shall allow for each household 
     in Guam a standard deduction that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2004;
       ``(ii) 8.25 percent for each of fiscal years 2005 and 2006;
       ``(iii) 8.5 percent for each of fiscal years 2007 and 2008;
       ``(iv) 8.75 percent for fiscal year 2009; and
       ``(v) 9 percent for each of fiscal years 2010 and 2011.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.
       (2) Participant expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``, except that the State agency may 
     limit such reimbursement to each participant to $25 per 
     month''.
       (3) Federal reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``such total amount shall not exceed an amount 
     representing $25 per participant per month for costs of 
     transportation and other actual costs (other than dependent 
     care costs) and'' and inserting ``the amount of the 
     reimbursement for dependent care expenses shall not exceed''.
       (4) Effectiveness of certain provisions.--Section 413 and 
     subsections (c) and (d) of section 433, and the amendments 
     made by section 413 and subsections (c) and (d) of section 
     433, shall have no effect.
       (d) Loan Deficiency Payments.--
       (1) Eligibility.--Section 135 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7235) (as 
     amended by section 126(1)) is amended by striking subsection 
     (a) and inserting the following:
       ``(a) In General.--The Secretary may make loan deficiency 
     payments available to--
       ``(1) producers on a farm that, although eligible to obtain 
     a marketing assistance loan under section 131 with respect to 
     a loan commodity, agree to forgo obtaining the loan for the 
     covered commodity in return for payments under this section; 
     and
       ``(2) effective only for the 2000 and 2001 crop years, 
     producers that, although not eligible to obtain such a 
     marketing assistance loan under section 131, produce a loan 
     commodity.''.
       (2) Beneficial interest.--Section 135(e)(1) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7235(e)) (as amended by section 126(2)) is amended by 
     striking ``A producer'' and inserting ``Effective for the 
     2001 crop, a producer''.
       (e) Specialty Crop Insurance Initiative.--
       (1) Research and development funding.--Section 522(e) of 
     the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended 
     by striking paragraph (1) and inserting the following:
       ``(1) Reimbursements.--Of the amounts made available from 
     the insurance fund established under section 516(c), the 
     Corporation may use to provide reimbursements under 
     subsection (b) not more than--
       ``(A) $32,000,000 for fiscal year 2002;
       ``(B) $27,500,000 for each of fiscal years 2003 and 2004;
       ``(C) $25,000,000 for each of fiscal years 2005 and 2006; 
     and
       ``(D) $15,000,000 for fiscal year 2006 and each subsequent 
     fiscal year.''.
       (2) Education and information funding.--Section 524(a)(4) 
     of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(4)) is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A) for the education and information program established 
     under paragraph (2)--
       ``(i) $10,000,000 for fiscal year 2003;
       ``(ii) $13,000,000 for fiscal year 2004;
       ``(iii) $15,000,000 for each of fiscal years 2005 and 2006; 
     and
       ``(iv) $5,000,000 for fiscal year 2007 and each subsequent 
     fiscal year; and''.
       (3) Reports.--Not later than September 30, 2002, the 
     Secretary of Agriculture shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report that describes--
       (A) the progress made by the Corporation in research and 
     development of innovative risk management products to include 
     cost of production insurance that provides coverage for 
     specialty crops, paying special attention to apples, 
     asparagus, blueberries (wild and domestic), cabbage, canola, 
     carrots, cherries, Christmas trees, citrus fruits, cucumbers, 
     dry beans, eggplants, floriculture, grapes, greenhouse and 
     nursery agricultural commodities, green peas, green peppers, 
     hay, lettuce, maple, mushrooms, pears, potatoes, pumpkins, 
     snap beans, spinach, squash, strawberries, sugar beets, and 
     tomatoes;
       (B) the progress made by the Corporation in increasing the 
     use of risk management products offered through the 
     Corporation by producers of specialty crops, by small and 
     moderate sized farms, and in areas that are underserved, as 
     determined by the Secretary; and
       (C) how the additional funding provided under the 
     amendments made by this section has been used.
       (f) Initiative for Future Agriculture and Food Systems.--
     Section 401(b)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) (as 
     amended by section 741) is amended--
       (1) in subparagraph (A), by striking ``$120,000,000'' and 
     inserting ``$130,000,000''; and
       (2) in subparagraph (B), by striking ``$145,000,000'' and 
     inserting ``$225,000,000''.

                          ____________________