[Congressional Record (Bound Edition), Volume 147 (2001), Part 20]
[Senate]
[Pages 26938-26998]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 26938]]

                           TEXT OF AMENDMENTS

  SA 2678. Mr. HUTCHINSON (for himself, Mr. Lott, Mr. Helms, Mr. 
Sessions, and Mrs. Hutchison) 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 ``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. 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. Direct 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. 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.
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.

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                      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.
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. Food Animal Residue Avoidance Database program.
Sec. 734. Office of Pest Management Policy.
Sec. 735. National Agricultural Research, Extension, Education, and 
              Economics Advisory Board.
Sec. 736. Grants for research on production and marketing of alcohols 
              and industrial hydrocarbons from agricultural commodities 
              and forest products.
Sec. 737. Biomass research and development.
Sec. 738. Agricultural experiment stations research facilities.
Sec. 739. Competitive, special, and facilities research grants national 
              research initiative.
Sec. 740. Federal agricultural research facilities authorization of 
              appropriations.
Sec. 740A. Cotton classification services.
Sec. 740B. Critical agricultural materials research.
Sec. 740C. 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.

[[Page 26940]]

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. Assistance for livestock producers.
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.
Sec. 931. Report regarding genetically engineered foods.
Sec. 932. Market name for pangasius fish species.
Sec. 933. Program of public education regarding use of biotechnology in 
              producing food for human consumption.
Sec. 934. GAO study.
Sec. 935. Interagency Task Force on Agricultural Competition.
Sec. 936. Authorization for additional staff and funding for the Grain 
              Inspection, Packers and Stockyards Administration.
Sec. 937. Enforcement of the Humane Methods of Slaughter Act of 1958.
Sec. 938. Penalties and foreign commerce provisions of the Animal 
              Welfare Act.
Sec. 939. Improve administration of Animal and Plant Health Inspection 
              Service.
Sec. 940. Renewable energy resources.
Sec. 941. Use of amounts provided for fixed, decoupled payments to 
              provide necessary funds for rural development programs.
Sec. 942. Study of nonambulatory livestock.

                      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.
       (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.

[[Page 26941]]

       (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 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.

[[Page 26942]]

       (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).
       (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. 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

[[Page 26943]]

     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
       (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)

[[Page 26944]]

     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 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)

[[Page 26945]]

     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 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

[[Page 26946]]

     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 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

[[Page 26947]]

     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.

     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.''.

[[Page 26948]]



     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:
       (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

[[Page 26949]]

     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;
       (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.

[[Page 26950]]

     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 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

[[Page 26951]]

     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.
       (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

[[Page 26952]]

     2001 crop years (excluding any crop year in which no 
     plantings were made), as determined by the Secretary; and
       (ii) direct payments and counter-cyclical payments shall be 
     reduced by an acre for each acre planted to the agricultural 
     commodity.

     SEC. 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

[[Page 26953]]

       (3) chapter 35 of title 44, United States Code (commonly 
     know as the ``Paperwork Reduction Act'').
       (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.

[[Page 26954]]

     3831(f)) is amended by adding at the end the following:
       ``(5) Priority.--In designating conservation priority areas 
     under paragraph (1), the Secretary shall give priority to 
     areas in which designated land would facilitate the most 
     rapid completion of projects that--
       ``(A) are ongoing as of the date of the application; and
       ``(B) meet the purposes of the program established under 
     this subchapter.''.
       (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 26955]]



     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 26956]]

       (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 26957]]

     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 26958]]

     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 26959]]

     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 26960]]

     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 26961]]

     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 26962]]

       ``(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 26963]]

     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 26964]]

     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 26965]]

     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 26966]]

     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 26967]]



     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 26968]]

     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 26969]]



     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 26970]]

     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 26971]]

       (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 26972]]



     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 26973]]

     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 26974]]

       ``(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 26975]]

     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. 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. 734. 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. 735. 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. 736. 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. 737. 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. 738. 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. 739. 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. 740. 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. 740A. 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. 740B. 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. 740C. 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.

[[Page 26976]]



                       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 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

[[Page 26977]]

     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 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,

[[Page 26978]]

     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--
       (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

[[Page 26979]]

     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:

     ``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

[[Page 26980]]

     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 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

[[Page 26981]]

     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.
       ``(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

[[Page 26982]]

     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;
       ``(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-

[[Page 26983]]

     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 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.
                                  ____

  SA 2679. Mr. DURBIN 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 section 164 and insert a 
     period and 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) 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.).''.

[[Page 26984]]

       (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 2680. 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 appropriate place, insert the following:

     SEC. 1022. STUDY OF PROPOSAL TO PROHIBIT PACKERS FROM OWNING, 
                   FEEDING, OR CONTROLLING LIVESTOCK.

       (a) In General.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     complete a study to determine the impact that prohibiting 
     packers described in subsection (b) from owning, feeding, or 
     controlling livestock intended for slaughter more than 14 
     days prior to slaughter would have on--
       (1) livestock producers that market under contract, grid, 
     basis contract, or forward contract;
       (2) rural communities and employees of commercial feedlots 
     associated with a packer;
       (3) private or cooperative joint ventures in packing 
     facilities;
       (4) livestock producers that market feeder livestock to 
     feedlots owned or controlled by packers;
       (5) the market price for livestock (both cash and future 
     prices);
       (6) the ability of livestock producers to obtain credit 
     from commercial sources;
       (7) specialized programs for marketing specific cuts of 
     meat;
       (8) the ability of the United States to compete in 
     international livestock markets; and
       (9) future investment decisions by packers and the 
     potential location of new livestock packing operations.
       (b) Packers.--The packers referred to in subsection (a) are 
     packers that slaughter more than 2 percent of the slaughter 
     of a particular type of livestock slaughtered in the United 
     States in any year.
       (c) Consideration.--In conducting the study under 
     subsection (a), the Secretary of Agriculture shall--
       (1) consider the legal conditions that have existed in the 
     past regarding the feeding by packers of livestock intended 
     for slaughter; and
       (2) determine the impact of those legal conditions.
       (d) Effectiveness of Other Provision.--The section entitled 
     ``PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING 
     LIVESTOCK'', amending section 202 of the Packers and 
     Stockyards Act, 1921 (7 U.S.C. 192), shall have no effect.
                                  ____

  SA 2681. Mr. CRAIG 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 OF PROPOSAL TO PROHIBIT PACKERS FROM OWNING, 
                   FEEDING, OR CONTROLLING LIVESTOCK.

       (a) In General.--Not later than 270 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     complete a study to determine the impact that prohibiting 
     packers described in subsection (b) from owning, feeding, or 
     controlling livestock intended for slaughter more than 14 
     days prior to slaughter would have on--
       (1) livestock producers that market under contract, grid, 
     basis contract, or forward contract;
       (2) rural communities and employees of commercial feedlots 
     associated with a packer;
       (3) private or cooperative joint ventures in packing 
     facilities;
       (4) livestock producers that market feeder livestock to 
     feedlots owned or controlled by packers;
       (5) the market price for livestock (both cash and future 
     prices);
       (6) the ability of livestock producers to obtain credit 
     from commercial sources;
       (7) specialized programs for marketing specific cuts of 
     meat;
       (8) the ability of the United States to compete in 
     international livestock markets; and
       (9) future investment decisions by packers and the 
     potential location of new livestock packing operations.
       (b) Packers.--The packers referred to in subsection (a) are 
     packers that slaughter more than 2 percent of the slaughter 
     of a particular type of livestock slaughtered in the United 
     States in any year.
       (c) Consideration.--In conducting the study under 
     subsection (a), the Secretary of Agriculture shall--
       (1) consider the legal conditions that have existed in the 
     past regarding the feeding by packers of livestock intended 
     for slaughter; and
       (2) determine the impact of those legal conditions.
       (d) Effectiveness of Other Provision.--The section entitled 
     ``PROHIBITION ON PACKERS OWNING, FEEDING, OR CONTROLLING 
     LIVESTOCK'', amending section 202 of the Packers and 
     Stockyards Act, 1921 (7 U.S.C. 192), shall have no effect.
                                  ____

  SA 2682. Mr. DORGAN 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 section 165 and insert the following:

     SEC. 165. PAYMENT AND NET INCOME LIMITATIONS.

       (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 (4) and inserting the following:
       ``(1) Limitation on direct payments.--The total amount of 
     direct payments made to a person during any fiscal year may 
     not exceed $80,000, with a separate limitation for--
       ``(A) all contract commodities; and
       ``(B) peanuts.
       ``(2) Limitation on counter-cyclical payments.--The total 
     amount of counter-cyclical payments made to a person during 
     any fiscal year may not exceed $75,000, with a separate 
     limitation for--
       ``(A) all contract commodities; and
       ``(B) peanuts.
       ``(3) Limitation on marketing loan gains and loan 
     deficiency payments.--
       ``(A) In general.--The total amount of the payments and 
     benefits specified in subparagraph (B) that a person shall be 
     entitled to receive under title I of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7201 et seq.) 
     for 1 or more loan commodities during any crop year may not 
     exceed $75,000, with a separate limitation for--
       ``(i) all loan commodities (other than wool and honey);
       ``(ii) wool;
       ``(iii) honey; and
       ``(iv) peanuts.
       ``(B) Description of payments and benefits subject to 
     limitation.--The payments referred to in subparagraph (A) are 
     the following:
       ``(i) Marketing loan 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) Loan deficiency payments.--Any loan deficiency 
     payment received for a loan commodity or peanuts under 
     section 135 or 158G(e) of that Act, respectively.
       ``(4) Definitions.--In paragraphs (1) through (3):
       ``(A) Contract commodity.--The term `contract commodity' 
     has the meaning given the term in section 102 of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7202).
       ``(B) Counter-cyclical payment.--The term `counter-cyclical 
     payment'' means a payment made under section 114 or 158D of 
     that Act.
       ``(C) Direct payment.--The term `direct payment' means a 
     payment made under section 113 or 158C of that Act.
       ``(D) Loan commodity.--The term `loan commodity' has the 
     meaning given the term in section 102 of that Act.
       ``(E) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.''.
       (2) 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 contract 
     commodity or loan commodity (as defined in section 102 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7202)).
       (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.

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross agricultural income.--The term 
     `adjusted gross agricultural

[[Page 26985]]

     income' means the adjusted gross income for all agricultural 
     enterprises of an owner or 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 
     owner or 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 owner or producer, 
     including payments and benefits described in section 
     1001(2)(B);
       ``(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 owner or producer; and
       ``(D) as represented on a schedule F of the Federal income 
     tax returns of the owner or producer or a comparable tax form 
     related to the agricultural enterprises of the owner or 
     producer, as approved by the Secretary.
       ``(2) Adjusted gross income.--The term `adjusted gross 
     income' has the meaning given the term in section 62 of the 
     Internal Revenue Code of 1986.
       ``(b) Limitation.--Notwithstanding any other provision of 
     title I of the Federal Agriculture Improvement and Reform Act 
     of 1996 (7 U.S.C. 7201 et seq.), an 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--
       ``(1) the average adjusted gross income of the owner or 
     producer for each of the preceding 3 taxable years exceeds 
     $2,500,000; and
       ``(2) less than 75 percent of the adjusted gross income of 
     the owner or producer is adjusted gross agricultural 
     income.''.
       (c) 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''.
       (d) 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. 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 2683. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 2568 submitted by Mr. Helms 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:

       In lieu of the matter proposed to be inserted, in amendment 
     No. 2568, insert the following:

     SEC. 1__. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

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

     ``SEC. 318. UNLAWFUL STOCKYARD PRACTICES INVOLVING 
                   NONAMBULATORY LIVESTOCK.

       ``(a) Definitions.--In this section:
       ``(1) Humanely euthanize.--The term `humanely euthanize' 
     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.--Except as provided in paragraph (2), it 
     shall be unlawful 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.
       ``(c) Application of Prohibition.--Subsection (b) shall 
     apply beginning one year after the date of the enactment of 
     the Agriculture, Conservation, and Rural Enhancement Act of 
     2001. By the end of such period, the Secretary shall 
     promulgate regulations to carry out this section.''.
                                  ____

  SA 2684. Mr. LEVIN 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 subtitle C of title X and 
     insert a period and the following:

     SEC. 1033. IMPORTATION OF MUNICIPAL SOLID WASTE.

       (a) Definition of Municipal Solid Waste.--
       (1) In general.--In this section, the term ``municipal 
     solid waste'' means waste material generated by--
       (A) a household (including a single family or multifamily 
     residence); and
       (B) a commercial, industrial, or institutional entity, to 
     the extent that the waste material--
       (i) is essentially the same as waste normally generated by 
     a household;
       (ii) is collected and disposed of with other municipal 
     solid waste as part of normal municipal solid waste 
     collection services; and
       (iii) contains a relative quantity of hazardous substances 
     no greater than the relative quantity of hazardous substances 
     contained in waste material generated by a typical single-
     family household.
       (2) Inclusions.--The term ``municipal solid waste'' 
     includes--
       (A) food and yard waste;
       (B) paper;
       (C) clothing;
       (D) appliances;
       (E) consumer product packaging;
       (F) disposable diapers;
       (G) office supplies;
       (H) cosmetics;
       (I) glass and metal food containers;
       (J) elementary or secondary school science laboratory 
     waste; and
       (K) household hazardous waste.

[[Page 26986]]

       (3) Exclusions.--The term ``municipal solid waste'' does 
     not include--
       (A) combustion ash generated by resource recovery 
     facilities or municipal incinerators; or
       (B) waste material from manufacturing or processing 
     operations (including pollution control operations) that is 
     not essentially the same as waste normally generated by 
     households.
       (b) Implementation of Agreements.--As soon as practicable 
     after the date of enactment of this Act, the President shall 
     implement the agreement entitled ``Agreement Between the 
     Government of the United States and the Government of Canada 
     Concerning the Transboundary Movement of Hazardous Waste, 
     Ottawa, 1986'', done at Ottawa on October 28, 1986 (TIAS 
     11099), as amended at Washington on November 4 and 25, 1992.
                                  ____

  SA 2685. 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. __. AGRICULTURAL RESEARCH AND TECHNOLOGY.

       (a) Field Studies.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     conduct field studies on--
       (A) the transmission of spongiform encephalopathy in deer, 
     elk, and moose; and
       (B) chronic wasting disease (including the risks that 
     chronic wasting disease poses to livestock).
       (2) Report.--Not later than February 1, 2002, the Secretary 
     shall submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report on the results of the 
     field studies.
       (b) Research and Extension Grant Program.--As soon as 
     practicable after the date of enactment of this Act, the 
     Secretary shall establish a program to provide research and 
     extension grants to eligible entities (as determined by the 
     Secretary) to develop, for livestock production--
       (1) prevention and control methodologies for infectious 
     animal diseases that affect trade, including--
       (A) vesicular stomatitis;
       (B) bovine tuberculosis;
       (C) transmissible spongiform encephalopathy;
       (D) burcellosis; and
       (E) E. coli 0157:H7 infection;
       (2) laboratory tests to expedite detection of--
       (A) infected livestock; and
       (B) the presence of diseases within herds or flocks of 
     livestock; and
       (3) prevention strategies, including vaccination programs, 
     for infectious diseases that affect livestock.
       (c) Office of Science and Technology Policy.--
       (1) In general.--As soon as practicable after the date of 
     enactment of this Act, the President shall--
       (A) establish within the Office of Science and Technology 
     Policy a noncareer, senior executive service appointment 
     position for a Veterinary Advisor; and
       (B) appoint an individual to the position.
       (2) Qualifications; duties.--The individual appointed to 
     the position described in paragraph (1) shall--
       (A) hold the degree of Doctor of Veterinary Medicine from 
     an accredited college of veterinary medicine in the United 
     States; and
       (B) provide to the science advisor of the President 
     expertise in--
       (i) exotic animal disease detection, prevention, and 
     control;
       (ii) food safety; and
       (iii) animal agriculture.
       (3) Executive schedule pay rates.--Section 5313 of title 5, 
     United States Code, is amended by adding at the end the 
     following:
       ``Veterinary Advisor, Office of Science and Technology 
     Policy.''.
       (d) Vaccines.--
       (1) Vaccine storage study.--Not later than December 1, 
     2001, the Secretary shall--
       (A) conduct a study to determine the number of doses of 
     livestock disease vaccines that should be available to 
     protect against livestock diseases that could be introduced 
     into the United States; and
       (B) compare that number with the number of doses of the 
     livestock disease vaccines that are available as of that 
     date.
       (2) Stockpiling of vaccines.--If, after conducting the 
     study and comparison described in paragraph (1), the 
     Secretary determines that there is an insufficient number of 
     doses of a particular vaccine referred to in that paragraph, 
     the Secretary shall take such actions as are necessary to 
     obtain the required additional doses of the vaccine.
       (e) Veterinary Training.--Not later than December 1, 2001, 
     the Secretary shall develop a plan to ensure that, during the 
     2-year period beginning on that date, veterinarians 
     representing all regions of the United States, especially 
     regions in which livestock production is a major industry, 
     are trained to identify highly infectious livestock diseases.
       (f) Funding for Fiscal Year 2002.--
       (1) In general.--On October 1, 2002, out of any moneys in 
     the Treasury not otherwise appropriated, the Secretary of the 
     Treasury shall provide to the Secretary $15,000,000 to carry 
     out this section, to remain available until expended.
       (2) Receipt and acceptance.--The Secretary shall be 
     entitled to receive the funds and shall accept the funds 
     provided under paragraph (1), without further appropriation.
                                  ____

  SA 2686. Mr. GRASSLEY (for himself, Mr. Hagel, Mr. Lugar, and Mr. 
Johnson) 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 to be inserted, insert:
       Notwithstanding any other provision of this act, the 
     payment limitation provisions shall be:

     SEC.       . 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 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.--

[[Page 26987]]

       ``(A) Married couples.--The total amount of payments and 
     benefits described paragraphs (1) and (2) that a married 
     couple may receive directly or indirectly may not exceed 
     $275,000 during the fiscal or crop year (as appropriate).
       ``(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.--An individual or entity 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) share rents the land; 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) 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--


[[Page 26988]]


       ``(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) 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)).''.
       (e) Loan Deficiency Payments.--
       (1) Eligibility.--Section 135 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7235) (as 
     amended by section 126(1)) is amended by striking subsection 
     (a) and inserting the following:
       ``(a) In General.--The Secretary may make loan deficiency 
     payments available to--
       ``(1) producers on a farm that, although eligible to obtain 
     a marketing assistance loan under section 131 with respect to 
     a loan commodity, agree to forgo obtaining the loan for the 
     covered commodity in return for payments under this section; 
     and
       ``(2) effective only for the 2000 and 2001 crop years, 
     producers that, although not eligible to obtain such a 
     marketing assistance loan under section 131, produce a loan 
     commodity.''.
       (2) Beneficial interest.--Section 135(e)(1) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7235(e)) (as amended by section 126(2)) is amended by 
     striking ``A producer'' and inserting ``Effective for the 
     2001 through 2006 crops, a producer''.
       (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''.
                                  ____

  SA 2687. 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. Procedures for civil actions.
       Sec. 402. Punitive damages against insurers.
                      TITLE I--GENERAL PROVISIONS

     SEC. 101. LOAN AND GRANT PROGRAMS.

       (a) In General.--If the Secretary determines that there are 
     losses 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 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 reinsurance 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 non-catastrophic 
     perils.

     SEC. 104. MONITORING AND ENFORCEMENT.

       (a) FTC Analysis and Enforcement.--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 or 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 titles 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

[[Page 26989]]

     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.

       In this Act:
       (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 purposes of clause (xiii), the lines 
     of business that may be voluntarily selected are 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 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 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 
     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

[[Page 26990]]

     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 that 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 copyof the certification received under paragraph 
     (1) to the 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. PROCEDURES FOR CIVIL ACTIONS.

       (a) Federal Cause of Action.--There shall exist a Federal 
     cause of action for property damage, personal injury, or 
     death arising out of or resulting from an act of terrorism, 
     which shall be the exclusive cause of action and remedy for 
     claims for property damage, personal injury, or death arising 
     out of or resulting from an act of terrorism. All State 
     causes of action of any kind for property damage, personal 
     injury, or death otherwise available arising out of or 
     resulting from an act of terrorism, are hereby preempted, 
     except as provided in subsection (c).
       (b) Governing Law.--The substantive law for decision in an 
     action for property damage, personal injury, or death arising 
     out of or resulting from an act of terrorism under this 
     section shall be derived from the law, including applicable 
     choice of law principles, of the State, or States determined 
     to be required by the district court having jurisdiction over 
     the action, unless such law is inconsistent with or otherwise 
     preempted by Federal law.
       (c) Claims Against Terrorists.--Nothing in this section 
     shall in any way limit the ability of any plaintiff to seek 
     any form of recovery from any person, government, or other 
     entity that was a participant in, or aider and abettor of, 
     any act of terrorism.
       (d) Effective Period.--This section shall apply only to 
     actions for property damage, personal injury, or death 
     arising out of or resulting from acts of terrorism that occur 
     during the period in which the Secretary is authorized to 
     make loans and grants under this Act, including, if 
     applicable, any extension of that period.

     SEC. 402. PUNITIVE DAMAGES AGAINST INSURERS.

       No punitive damages may be awarded in an action brought 
     under section 401(a) against an insurer.
                                  ____

  SA 2688. Mr. DODD (for himself, Mr. McConnell, Mr. Schumer, Mr. Bond, 
Mr. Torricelli, Mr. McCain, and Mr. Durbin) submitted an amendment 
intended to be proposed by him to the bill S. 565, to establish the 
Commission on Voting Rights and Procedures to study and make 
recommendations regarding election technology, voting, and election 
administration, to establish a grant program under which the Office of 
Justice Programs and the Civil Rights Division of the Department of 
Justice shall provide assistance to States and localities in improving 
election technology and the administration of Federal elections, to 
require States to meet uniform and nondiscriminatory election 
technology and administration requirements for the 2004 Federal 
elections, and for other purposes; which was ordered to lie on the 
table; as follows:

       Strike 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 ``Equal 
     Protection of Voting Rights Act of 2001''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

    TITLE I--UNIFORM AND NONDISCRIMINATORY ELECTION TECHNOLOGY AND 
                      ADMINISTRATION REQUIREMENTS

Sec. 101. Voting systems standards.
Sec. 102. Provisional voting and voting information requirements.
Sec. 103. Computerized statewide voter registration list requirements 
              and requirements for voters who register by mail.
Sec. 104. Enforcement by the Civil Rights Division of the Department of 
              Justice.

                        TITLE II--GRANT PROGRAMS

   Subtitle A--Uniform and Nondiscriminatory Election Technology and 
               Administration Requirements Grant Program

Sec. 201. Establishment of the Uniform and Nondiscriminatory Election 
              Technology and Administration Requirements Grant Program.
Sec. 202. State plans.
Sec. 203. Application.
Sec. 204. Approval of applications.
Sec. 205. Authorized activities.
Sec. 206. Payments.
Sec. 207. Audits and examinations of States and localities.
Sec. 208. Reports to Congress and the Attorney General.
Sec. 209. Authorization of appropriations.
Sec. 210. Effective date.

      Subtitle B--Federal Election Reform Incentive Grant Program

Sec. 211. Establishment of the Federal Election Reform Incentive Grant 
              Program.
Sec. 212. Application.
Sec. 213. Approval of applications.
Sec. 214. Authorized activities.
Sec. 215. Payments; Federal share.
Sec. 216. Audits and examinations of States and localities.
Sec. 217. Reports to Congress and the Attorney General.
Sec. 218. Authorization of appropriations.
Sec. 219. Effective date.

        Subtitle C--Federal Election Accessibility Grant Program

Sec. 221. Establishment of the Federal Election Accessibility Grant 
              Program.
Sec. 222. Application.
Sec. 223. Approval of applications.
Sec. 224. Authorized activities.
Sec. 225. Payments; Federal share.
Sec. 226. Audits and examinations of States and localities.

[[Page 26991]]

Sec. 227. Reports to Congress and the Attorney General.
Sec. 228. Authorization of appropriations.
Sec. 229. Effective date.

                       TITLE III--ADMINISTRATION

             Subtitle A--Election Administration Commission

Sec. 301. Establishment of the Election Administration Commission.
Sec. 302. Membership of the Commission.
Sec. 303. Duties of the Commission.
Sec. 304. Meetings of the Commission.
Sec. 305. Powers of the Commission.
Sec. 306. Commission personnel matters.
Sec. 307. Authorization of appropriations.

                   Subtitle B--Transition Provisions

Sec. 311. Equal Protection of Voting Rights Act of 2001.
Sec. 312. Federal Election Campaign Act of 1971.
Sec. 313. National Voter Registration Act of 1993.
Sec. 314. Transfer of property, records, and personnel.
Sec. 315. Coverage of Election Administration Commission under certain 
              laws and programs.
Sec. 316. Effective date; transition.

                        TITLE IV--MISCELLANEOUS

Sec. 401. Criminal penalties.
Sec. 402. Relationship to other laws.

    TITLE I--UNIFORM AND NONDISCRIMINATORY ELECTION TECHNOLOGY AND 
                      ADMINISTRATION REQUIREMENTS

     SEC. 101. VOTING SYSTEMS STANDARDS.

       (a) Requirements.--Each voting system used in an election 
     for Federal office shall meet the following requirements:
       (1) In general.--
       (A) Except as provided in subparagraph (B), the voting 
     system (including any lever voting system, optical scanning 
     voting system, or direct recording electronic system) shall--
       (i) permit the voter to verify the votes selected by the 
     voter on the ballot before the ballot is cast and counted;
       (ii) provide the voter with the opportunity to change the 
     ballot or correct any error before the ballot is cast and 
     counted (including the opportunity to correct the error 
     through the issuance of a replacement ballot if the voter was 
     otherwise unable to change the ballot or correct any error); 
     and
       (iii) if the voter selects votes for more than 1 candidate 
     for a single office, the voting system shall--

       (I) notify the voter that the voter has selected more than 
     1 candidate for a single office on the ballot;
       (II) notify the voter before the ballot is cast and counted 
     of the effect of casting multiple votes for the office; and
       (III) provide the voter with the opportunity to correct the 
     ballot before the ballot is cast and counted.

       (B) A State or locality that uses a paper ballot voting 
     system or a punchcard voting system may meet the requirement 
     of subparagraph (A) by--
       (i) establishing a voter education program specific to that 
     voting system that notifies each voter of the effect of 
     casting multiple votes for an office; and
       (ii) providing the voter with the opportunity to correct 
     the ballot before it is cast and counted.
       (C) The voting system shall ensure that any notification 
     required under this paragraph preserves the privacy of the 
     voter and the confidentiality of the ballot.
       (2) Audit capacity.--The voting system shall produce a 
     record with an audit capacity for such system.
       (3) Accessibility for individuals with disabilities.--The 
     voting system shall--
       (A) be accessible for individuals with disabilities, 
     including nonvisual accessibility for the blind and visually 
     impaired, in a manner that provides the same opportunity for 
     access and participation (including privacy and independence) 
     as for other voters;
       (B) satisfy the requirement of subparagraph (A) through the 
     use of at least 1 direct recording electronic voting system 
     or other voting system equipped for individuals with 
     disabilities at each polling place; and
       (C) meet the voting system standards for disability access 
     if purchased with funds made available under title II on or 
     after January 1, 2007.
       (4) Multilingual voting materials.--
       (A) In general.--Except as provided in subparagraph (B), 
     the voting system shall provide alternative language 
     accessibility--
       (i) with respect to a language other than English in a 
     State or jurisdiction if, as determined by the Director of 
     the Bureau of the Census--

       (I)(aa) at least 5 percent of the total number of voting-
     age citizens who reside in such State or jurisdiction speak 
     that language as their first language and who are limited-
     English proficient; or
       (bb) there are at least 10,000 voting-age citizens who 
     reside in that jurisdiction who speak that language as their 
     first language and who are limited-English proficient; and
       (II) the illiteracy rate of the group of citizens who speak 
     that language is higher than the national illiteracy rate; or

       (ii) with respect to a language other than English that is 
     spoken by Native American or Alaskan native citizens in a 
     jurisdiction that contains all or any part of an Indian 
     reservation if, as determined by the Director of the Bureau 
     of the Census--

       (I) at least 5 percent of the total number of citizens on 
     the reservation are voting-age Native American or Alaskan 
     native citizens who speak that language as their first 
     language and who are limited-English proficient; and
       (II) the illiteracy rate of the group of citizens who speak 
     that language is higher than the national illiteracy rate.

       (B) Exception.--If a State meets the criteria of item (aa) 
     of subparagraph (A)(i)(I) with respect to a language, a 
     jurisdiction of that State shall not be required to provide 
     alternative language accessibility under this paragraph with 
     respect to that language if--
       (i) less than 5 percent of the total number of voting age 
     citizens who reside in that jurisdiction speak that language 
     as their first language and are limited-English proficient; 
     and
       (ii) the jurisdiction does not meet the criteria of item 
     (bb) of such subparagraph with respect to that language.
       (5) Error rates.--The error rate of the voting system in 
     counting ballots (determined by taking into account only 
     those errors which are attributable to the voting system and 
     not attributable to an act of the voter) shall not exceed the 
     error rate standards established under the voting systems 
     standards issued and maintained by the Director of the Office 
     of Election Administration of the Federal Election Commission 
     (as revised by the Director of such Office under subsection 
     (c)).
       (b) Voting System Defined.--In this section, the term 
     ``voting system'' means--
       (1) the total combination of mechanical, electromechanical, 
     or electronic equipment (including the software, firmware, 
     and documentation required to program, control, and support 
     the equipment) that is used--
       (A) to define ballots;
       (B) to cast and count votes;
       (C) to report or display election results; and
       (D) to maintain and produce any audit trail information;
       (2) the practices and associated documentation used--
       (A) to identify system components and versions of such 
     components;
       (B) to test the system during its development and 
     maintenance;
       (C) to maintain records of system errors and defects;
       (D) to determine specific system changes to be made to a 
     system after the initial qualification of the system; and
       (E) to make available any materials to the voter (such as 
     notices, instructions, forms, or paper ballots).
       (c) Administration by the Office of Election 
     Administration.--
       (1) In general.--Not later than January 1, 2004, the 
     Director of the Office of Election Administration of the 
     Federal Election Commission, in consultation with the 
     Architectural and Transportation Barriers Compliance Board 
     (as established under section 502 of the Rehabilitation Act 
     of 1973 (29 U.S.C. 792)), shall promulgate standards revising 
     the voting systems standards issued and maintained by the 
     Director of such Office so that such standards meet the 
     requirements established under subsection (a).
       (2) Quadrennial review.--The Director of the Office of 
     Election Administration of the Federal Election Commission 
     shall review the voting systems standards revised under 
     paragraph (1) no less frequently than once every 4 years.
       (d) Construction.--Nothing in this section shall require a 
     jurisdiction to change the voting system or systems 
     (including paper balloting systems, including in-person, 
     absentee, and mail-in paper balloting systems, lever machine 
     systems, punchcard systems, optical scanning systems, and 
     direct recording electronic systems) used in an election in 
     order to be in compliance with this Act.
       (e) Effective Date.--Each State and locality shall be 
     required to comply with the requirements of this section on 
     and after January 1, 2006.

     SEC. 102. PROVISIONAL VOTING AND VOTING INFORMATION 
                   REQUIREMENTS.

       (a) Requirements.--If an individual declares that such 
     individual is a registered voter in the jurisdiction in which 
     the individual desires to vote and that the individual is 
     eligible to vote in an election for Federal office, but the 
     name of the individual does not appear on the official list 
     of eligible voters for the polling place, or an election 
     official asserts that the individual is not eligible to vote, 
     such individual shall be permitted to cast a provisional 
     ballot as follows:
       (1) An election official at the polling place shall notify 
     the individual that the individual may cast a provisional 
     ballot in that election.
       (2) The individual shall be permitted to cast a provisional 
     ballot at that polling place upon the execution of a written 
     affirmation by the individual before an election official at 
     the polling place stating that the individual is--
       (A) a registered voter in the jurisdiction in which the 
     individual desires to vote; and
       (B) eligible to vote in that election.
       (3) An election official at the polling place shall 
     transmit the ballot cast by the individual to an appropriate 
     State or local election official for prompt verification of 
     the written affirmation executed by the individual under 
     paragraph (2).

[[Page 26992]]

       (4) If the appropriate State or local election official to 
     whom the ballot is transmitted under paragraph (3) determines 
     that the individual is eligible under State law to vote in 
     the jurisdiction, the individual's provisional ballot shall 
     be counted as a vote in that election.
       (5) At the time that an individual casts a provisional 
     ballot, the appropriate State or local election official 
     shall give the individual written information that states 
     that--
       (A) the individual will not receive any further 
     notification if the individual's vote is counted;
       (B) if the individual's vote is not counted, the individual 
     will be notified not later than the date that is 30 days 
     after the date of the election that the vote was not counted; 
     and
       (C) regardless of whether the individual's vote was 
     counted, any individual casting a provisional ballot will be 
     able to ascertain through a free access system (such as a 
     toll-free telephone number or an Internet website) whether 
     the vote was counted, and if the vote was not counted, the 
     reason that the vote was not counted.
       (6) The appropriate State or local election official 
     shall--
       (A) notify the individual who cast the ballot in writing 
     not later than the date that is 30 days after the date of the 
     election if a provisional ballot that is cast under this 
     subsection is not counted; and
       (B) establish a free access system (such as a toll-free 
     telephone number or an Internet website) that any individual 
     casting a provisional ballot may access to discover the 
     reason that such vote was not counted.
       (b) Voting Information Requirements.--
       (1) Public posting on election day.--The appropriate State 
     or local election official shall cause voting information to 
     be publicly posted at each polling place on the day of each 
     election for Federal office.
       (2) Voting information defined.--In this section, the term 
     ``voting information'' means--
       (A) a sample version of the ballot that will be used for 
     that election;
       (B) information regarding the date of the election and the 
     hours during which polling places will be open;
       (C) instructions on how to vote, including how to cast a 
     vote and how to cast a provisional ballot;
       (D) instructions for mail-in registrants and first-time 
     voters under section 103(b); and
       (E) general information on voting rights under applicable 
     Federal and State laws, including information on the right of 
     an individual to cast a provisional ballot and instructions 
     on how to contact the appropriate officials if these rights 
     are alleged to have been violated.
       (c) Administration by the Civil Rights Division.--Not later 
     than January 1, 2003, the Assistant Attorney General in 
     charge of the Civil Rights Division of the Department of 
     Justice shall promulgate such guidelines as are necessary to 
     implement the requirements of subsection (a).
       (d) Effective Date.--
       (1) Provisional voting.--Each State and locality shall be 
     required to comply with the requirements of subsection (a) on 
     and after January 1, 2004.
       (2) Voting information.--Each State and locality shall be 
     required to comply with the requirements of subsection (b) on 
     and after the date of enactment of this Act.

     SEC. 103. COMPUTERIZED STATEWIDE VOTER REGISTRATION LIST 
                   REQUIREMENTS AND REQUIREMENTS FOR VOTERS WHO 
                   REGISTER BY MAIL.

       (a) Computerized Statewide Voter Registration List 
     Requirements.--
       (1) Implementation.--
       (A) In general.--Except as provided in subparagraph (B), 
     each State, acting through the chief State election official, 
     shall implement an interactive computerized statewide voter 
     registration list that contains the name and registration 
     information of every legally registered voter in the State 
     and assigns a unique identifier to each legally registered 
     voter in the State (in this subsection referred to as the 
     ``computerized list'').
       (B) Exception.--The requirement under subparagraph (A) 
     shall not apply to a State in which, under a State law in 
     effect continuously on and after the date of enactment of 
     this Act, there is no voter registration requirement for 
     individuals in the State with respect to elections for 
     Federal office.
       (2) Access.--The computerized list shall be accessible to 
     each State and local election official in the State.
       (3) Computerized list maintenance.--
       (A) In general.--The appropriate State or local election 
     official shall perform list maintenance with respect to the 
     computerized list on a regular basis as follows:
       (i) If an individual is to be removed from the computerized 
     list, such individual shall be removed in accordance with the 
     provisions of the National Voter Registration Act of 1993 (42 
     U.S.C. 1973gg et seq.), including subsections (a)(4), (c)(2), 
     (d), and (e) of section 8 of such Act (42 U.S.C. 1973gg-6).
       (ii) For purposes of removing names of ineligible voters 
     from the official list of eligible voters--

       (I) under section 8(a)(3)(B) of such Act (42 U.S.C. 1973gg-
     6(a)(3)(B)), the State shall coordinate the computerized list 
     with State agency records on felony status; and
       (II) by reason of the death of the registrant under section 
     8(a)(4)(A) of such Act (42 U.S.C. 1973gg-6(a)(4)(A)), the 
     State shall coordinate the computerized list with State 
     agency records on death.

       (B) Conduct.--The list maintenance performed under 
     subparagraph (A) shall be conducted in a manner that ensures 
     that--
       (i) the name of each registered voter appears in the 
     computerized list;
       (ii) only voters who are not registered or who are not 
     eligible to vote are removed from the computerized list; and
       (iii) duplicate names are eliminated from the computerized 
     list.
       (b) Requirements for Voters Who Register by Mail.--
       (1) In general.--Notwithstanding section 6(c) of the 
     National Voter Registration Act of 1993 (42 U.S.C. 1973gg-
     4(c)) and subject to paragraph (3), a State shall require an 
     individual to meet the requirements of paragraph (2) if--
       (A) the individual registered to vote in a jurisdiction by 
     mail; and
       (B) the individual has not previously voted in an election 
     for Federal office in that jurisdiction.
       (2) Requirements.--
       (A) In general.--An individual meets the requirements of 
     this paragraph if the individual--
       (i) in the case of an individual who votes in person--

       (I) presents to the appropriate State or local election 
     official a current and valid photo identification; or
       (II) presents to the appropriate State or local election 
     official a copy of a current utility bill, bank statement, 
     Government check, paycheck, or other Government document that 
     shows the name and address of the voter; or

       (ii) in the case of an individual who votes by mail, 
     submits with the ballot--

       (I) a copy of a current and valid photo identification; or
       (II) a copy of a current utility bill, bank statement, 
     Government check, paycheck, or other Government document that 
     shows the name and address of the voter.

       (B) Provisional voting.--An individual who desires to vote 
     in person, but who does not meet the requirements of 
     subparagraph (A)(i), may cast a provisional ballot under 
     section 102(a).
       (3) Inapplicability.--Paragraph (1) shall not apply in the 
     case of a person--
       (A) who registers to vote by mail under section 6 of the 
     National Voter Registration Act of 1993 (42 U.S.C. 1973gg-4) 
     and submits as part of such registration either--
       (i) a copy of a current valid photo identification; or
       (ii) a copy of a current utility bill, bank statement, 
     Government check, paycheck, or Government document that shows 
     the name and address of the voter; or
       (B) who is described in a subparagraph of section 6(c)(2) 
     of the National Voter Registration Act of 1993 (42 U.S.C. 
     1973gg-4(c)(2)).
       (4) Contents of mail-in registration form.--The mail voter 
     registration form developed under section 6 of the National 
     Voter Registration Act of 1993 (42 U.S.C. 1973gg-4) shall 
     include:
       (A) The question ``Are you a citizen of the United States 
     of America?'' and boxes for the applicant to check to 
     indicate whether the applicant is or is not a citizen of the 
     United States.
       (B) The question ``Will you be 18 years of age on or before 
     election day?'' and boxes for the applicant to check to 
     indicate whether or not the applicant will be 18 or older on 
     election day.
       (C) The statement ``If you checked `no' in response to 
     either of these questions, do not complete this form''.
       (c) Administration by the Civil Rights Division.--Not later 
     than October 1, 2003, the Assistant Attorney General in 
     charge of the Civil Rights Division of the Department of 
     Justice shall promulgate such guidelines as are necessary to 
     implement the requirements of subsection (a).
       (d) Effective Date.--
       (1) Computerized statewide voter registration list 
     requirements.--Each State and locality shall be required to 
     comply with the requirements of subsection (a) on and after 
     January 1, 2004.
       (2) Requirements for voters who register by mail.--Each 
     State and locality shall be required to comply with the 
     requirements of subsection (b) on and after the date of 
     enactment of this Act.

     SEC. 104. ENFORCEMENT BY THE CIVIL RIGHTS DIVISION OF THE 
                   DEPARTMENT OF JUSTICE.

       (a) In General.--Subject to subsection (b), the Attorney 
     General, acting through the Assistant Attorney General in 
     charge of the Civil Rights Division of the Department of 
     Justice, may bring a civil action in an appropriate district 
     court for such declaratory or injunctive relief as may be 
     necessary to carry out this title.
       (b) Safe Harbor.--
       (1) In general.--Except as provided in paragraph (2), if a 
     State or locality receives funds under a grant program under 
     subtitle A or B of title II for the purpose of meeting

[[Page 26993]]

     a requirement under section 101, 102, or 103, such State or 
     locality shall be deemed to be in compliance with such 
     requirement until January 1, 2010, and no action may be 
     brought against such State or locality on the basis that the 
     State or locality is not in compliance with such requirement 
     before such date.
       (2) Exception.--The safe harbor provision under paragraph 
     (1) shall not apply with respect to the requirement described 
     in section 101(a)(3).
       (c) Relation to Other Laws.--The remedies established by 
     this section are in addition to all other rights and remedies 
     provided by law.

                        TITLE II--GRANT PROGRAMS

   Subtitle A--Uniform and Nondiscriminatory Election Technology and 
               Administration Requirements Grant Program

     SEC. 201. ESTABLISHMENT OF THE UNIFORM AND NONDISCRIMINATORY 
                   ELECTION TECHNOLOGY AND ADMINISTRATION 
                   REQUIREMENTS GRANT PROGRAM.

       (a) In General.--There is established a Uniform and 
     Nondiscriminatory Election Technology and Administration 
     Requirements Grant Program under which the Attorney General, 
     subject to the general policies and criteria for the approval 
     of applications established under section 204 and in 
     consultation with the Federal Election Commission and the 
     Architectural and Transportation Barriers Compliance Board 
     (as established under section 502 of the Rehabilitation Act 
     of 1973 (29 U.S.C. 792)), is authorized to make grants to 
     States and localities to pay the costs of the activities 
     described in section 205.
       (b) Action Through Office of Justice Programs and Civil 
     Rights Division.--In carrying out this subtitle, the Attorney 
     General shall act through the Assistant Attorney General in 
     charge of the Office of Justice Programs of the Department of 
     Justice and the Assistant Attorney General in charge of the 
     Civil Rights Division of that Department.

     SEC. 202. STATE PLANS.

       (a) In General.--Each State that desires to receive a grant 
     under this subtitle shall develop a State plan, in 
     consultation with State and local election officials of that 
     State, that provides for each of the following:
       (1) Uniform and nondiscriminatory election technology and 
     administration requirements.--A description of how the State 
     will use the funds made available under this subtitle to meet 
     each of the following requirements:
       (A) The voting system standards under section 101.
       (B) The provisional voting requirements under section 102.
       (C) The computerized statewide voter registration list 
     requirements under section 103(a), including a description 
     of--
       (i) how State and local election officials will ensure the 
     accuracy of the list of eligible voters in the State to 
     ensure that only registered voters appear in such list; and
       (ii) the precautions that the State will take to prevent 
     the removal of eligible voters from the list.
       (D) The requirements for voters who register by mail under 
     section 103(b), including the steps that the State will take 
     to ensure--
       (i) the accuracy of mail-in and absentee ballots; and
       (ii) that the use of mail-in and absentee ballots does not 
     result in duplicate votes.
       (2) Identification, deterrence, and investigation of voting 
     fraud.--An assessment of the susceptibility of elections for 
     Federal office in the State to voting fraud and a description 
     of how the State intends to identify, deter, and investigate 
     such fraud.
       (3) Compliance with existing federal law.--Assurances that 
     the State will comply with existing Federal laws, including 
     the following:
       (A) The Voting Rights Act of 1965 (42 U.S.C. 1973 et seq.), 
     including sections 4(f)(4) and 203 of such Act (42 U.S.C. 
     1973b(f)(4) and 1973aa-1a).
       (B) The Voting Accessibility for the Elderly and 
     Handicapped Act (42 U.S.C. 1973ee et seq.).
       (C) The Uniformed and Overseas Citizens Absentee Voting Act 
     (42 U.S.C. 1973ff et seq.).
       (D) The National Voter Registration Act of 1993 (42 U.S.C. 
     1973gg et seq.).
       (E) The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
       (4) Timetable.--A timetable for meeting the elements of the 
     State plan.
       (b) Availability of State Plans for Review and Comment.--A 
     State shall make the State plan developed under subsection 
     (a) available for public review and comment before the 
     submission of an application under section 203(a).

     SEC. 203. APPLICATION.

       (a) In General.--Each State or locality that desires to 
     receive a grant under this subtitle shall submit an 
     application to the Attorney General at such time and in such 
     manner as the Attorney General may require, and containing 
     the information required under subsection (b) and such other 
     information as the Attorney General may require.
       (b) Contents.--
       (1) States.--Each application submitted by a State shall 
     contain the State plan developed under section 202 and a 
     description of how the State proposes to use funds made 
     available under this subtitle to implement such State plan.
       (2) Localities.--Each application submitted by a locality 
     shall contain a description of how the locality proposes to 
     use the funds made available under this subtitle in a manner 
     that is consistent with the State plan developed under 
     section 202.
       (c) Safe Harbor.--No action may be brought against a State 
     or locality on the basis of any information contained in the 
     application submitted under subsection (a), including any 
     information contained in the State plan developed under 
     section 202.

     SEC. 204. APPROVAL OF APPLICATIONS.

       The Attorney General shall establish general policies and 
     criteria with respect to the approval of applications 
     submitted by States and localities under section 203(a) 
     (including a review of State plans developed under section 
     202), the awarding of grants under this subtitle, and the use 
     of assistance made available under this subtitle.

     SEC. 205. AUTHORIZED ACTIVITIES.

       A State or locality may use grant payments received under 
     this subtitle for any of the following purposes:
       (1) To implement voting system standards that meet the 
     requirements of section 101.
       (2) To provide for provisional voting that meets the 
     requirements of section 102(a) and to meet the voting 
     information requirements under section 102(b).
       (3) To establish a computerized statewide voter 
     registration list that meets the requirements of section 
     103(a) and to meet the requirements for voters who register 
     by mail under section 103(b).

     SEC. 206. PAYMENTS.

       (a) In General.--The Attorney General shall pay to each 
     State or locality having an application approved under 
     section 203 the cost of the activities described in that 
     application.
       (b) Retroactive Payments.--The Attorney General may make 
     retroactive payments to States and localities having an 
     application approved under section 203 for any costs for 
     election technology or administration that meets a 
     requirement of section 101, 102, or 103 that were incurred 
     during the period beginning on January 1, 2001, and ending on 
     the date on which such application was approved under such 
     section.

     SEC. 207. AUDITS AND EXAMINATIONS OF STATES AND LOCALITIES.

       (a) Recordkeeping Requirement.--Each recipient of a grant 
     under this subtitle shall keep such records as the Attorney 
     General, in consultation with the Federal Election 
     Commission, shall prescribe.
       (b) Audits and Examinations.--The Attorney General and the 
     Comptroller General, or any authorized representative of the 
     Attorney General or the Comptroller General, may audit or 
     examine any recipient of a grant under this subtitle and 
     shall, for the purpose of conducting an audit or examination, 
     have access to any record of a recipient of a grant under 
     this subtitle that the Attorney General or the Comptroller 
     General determines may be related to the grant.

     SEC. 208. REPORTS TO CONGRESS AND THE ATTORNEY GENERAL.

       (a) Reports to Congress.--
       (1) In general.--Not later than January 31, 2003, and each 
     year thereafter, the Attorney General shall submit to the 
     President and Congress a report on the grant program 
     established under this subtitle for the preceding year.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall contain the following:
       (A) A description and analysis of any activities funded by 
     a grant awarded under this subtitle.
       (B) Any recommendation for legislative or administrative 
     action that the Attorney General considers appropriate.
       (b) Reports to the Attorney General.--The Attorney General 
     shall require each recipient of a grant under this subtitle 
     to submit reports to the Attorney General at such time, in 
     such manner, and containing such information as the Attorney 
     General considers appropriate.

     SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     carry out the provisions of this subtitle the following 
     amounts:
       (1) For fiscal year 2003, $1,000,000,000.
       (2) For fiscal year 2004, $1,300,000,000.
       (3) For fiscal year 2005, $500,000,000.
       (4) For fiscal year 2006, $200,000,000.
       (5) For each subsequent fiscal year, such sums as may be 
     necessary.
       (b) Availability.--Any amounts appropriated pursuant to the 
     authority of subsection (a) shall remain available until 
     expended.

     SEC. 210. EFFECTIVE DATE.

       The Attorney General shall establish the general policies 
     and criteria for the approval of applications under section 
     204 in a manner that ensures that the Attorney General is 
     able to approve applications not later than October 1, 2002.

      Subtitle B--Federal Election Reform Incentive Grant Program

     SEC. 211. ESTABLISHMENT OF THE FEDERAL ELECTION REFORM 
                   INCENTIVE GRANT PROGRAM.

       (a) In General.--There is established a Federal Election 
     Reform Incentive Grant

[[Page 26994]]

     Program under which the Attorney General, subject to the 
     general policies and criteria for the approval of 
     applications established under section 213(a) and in 
     consultation with the Federal Election Commission and the 
     Architectural and Transportation Barriers Compliance Board 
     (as established under section 502 of the Rehabilitation Act 
     of 1973 (29 U.S.C. 792)), is authorized to make grants to 
     States and localities to pay the costs of the activities 
     described in section 214.
       (b) Action Through Office of Justice Programs and Civil 
     Rights Division.--In carrying out this subtitle, the Attorney 
     General shall act through--
       (1) the Assistant Attorney General in charge of the Office 
     of Justice Programs of the Department of Justice; and
       (2) the Assistant Attorney General in charge of the Civil 
     Rights Division of the Department of Justice (in this 
     subtitle referred to as the ``Assistant Attorney General for 
     Civil Rights'').

     SEC. 212. APPLICATION.

       (a) In General.--Each State or locality that desires to 
     receive a grant under this subtitle shall submit an 
     application to the Attorney General at such time, in such 
     manner, and containing such information as the Attorney 
     General shall require, consistent with the provisions of this 
     section.
       (b) Contents.--Each application submitted under subsection 
     (a) shall--
       (1) describe the activities for which assistance under this 
     section is sought;
       (2) contain a request for certification by the Assistant 
     Attorney General for Civil Rights described in subsection 
     (c);
       (3) provide assurances that the State or locality will pay 
     the non-Federal share of the cost of the activities for which 
     assistance is sought from non-Federal sources; and
       (4) provide such additional assurances as the Attorney 
     General determines to be essential to ensure compliance with 
     the requirements of this subtitle.
       (c) Request for Certification by the Civil Rights 
     Division.--
       (1) Compliance with current federal election law.--
       (A) In general.--Except as provided in subparagraph (B), 
     each request for certification described in subsection (b)(2) 
     shall contain a specific and detailed demonstration that the 
     State or locality is in compliance with each of the following 
     laws:
       (i) The Voting Rights Act of 1965 (42 U.S.C. 1973 et seq.), 
     including sections 4(f)(4) and 203 of such Act (42 U.S.C. 
     1973b(f)(4) and 1973aa-1a).
       (ii) The Voting Accessibility for the Elderly and 
     Handicapped Act (42 U.S.C. 1973ee et seq.).
       (iii) The Uniformed and Overseas Citizens Absentee Voting 
     Act (42 U.S.C. 1973ff et seq.).
       (iv) The National Voter Registration Act of 1993 (42 U.S.C. 
     1973gg et seq.).
       (v) The Americans with Disabilities Act of 1990 (42 U.S.C. 
     1994 et seq.).
       (vi) The Rehabilitation Act of 1973 (29 U.S.C. 701 et 
     seq.).
       (B) Applicants unable to meet requirements.--Each State or 
     locality that, at the time it applies for a grant under this 
     subtitle, does not demonstrate that it meets each requirement 
     described in subparagraph (A), shall submit to the Attorney 
     General a detailed and specific demonstration of how the 
     State or locality intends to use grant funds to meet each 
     such requirement.
       (2) Uniform and nondiscriminatory requirements for election 
     technology and administration.--In addition to the 
     demonstration required under paragraph (1), each request for 
     certification described in subsection (b)(2) shall contain a 
     specific and detailed demonstration that the proposed use of 
     grant funds by the State or locality is not inconsistent with 
     the requirements under section 101, 102, or 103.
       (d) Safe Harbor.--No action may be brought against a State 
     or locality on the basis of any information contained in the 
     application submitted under subsection (a), including any 
     information contained in the request for certification 
     described in subsection (c).

     SEC. 213. APPROVAL OF APPLICATIONS.

       (a) In General.--Subject to subsection (b), the Attorney 
     General shall establish general policies and criteria for the 
     approval of applications submitted under section 212(a).
       (b) Certification Procedure.--
       (1) In general.--The Attorney General may not approve an 
     application of a State or locality submitted under section 
     212(a) unless the Attorney General has received a 
     certification from the Assistant Attorney General for Civil 
     Rights under paragraph (4) with respect to such State or 
     locality.
       (2) Transmittal of request.--Upon receipt of the request 
     for certification submitted under section 212(b)(2), the 
     Attorney General shall transmit such request to the Assistant 
     Attorney General for Civil Rights.
       (3) Certification; noncertification.--
       (A) Certification.--If the Assistant Attorney General for 
     Civil Rights finds that the request for certification 
     demonstrates that--
       (i) a State or locality meets the requirements of 
     subparagraph (A) of section 212(c)(1), or that a State or 
     locality has provided a detailed and specific demonstration 
     of how it will use funds received under this section to meet 
     such requirements under subparagraph (B) of such section; and
       (ii) the proposed use of grant funds by the State or 
     locality meets the requirements of section 212(c)(2),
     the Assistant Attorney General for Civil Rights shall certify 
     that the State or locality is eligible to receive a grant 
     under this subtitle.
       (B) Noncertification.--If the Assistant Attorney General 
     for Civil Rights finds that the request for certification 
     does not demonstrate that a State or locality meets the 
     requirements described in subparagraph (A), the Assistant 
     Attorney General for Civil Rights shall not certify that the 
     State or locality is eligible to receive a grant under this 
     subtitle.
       (4) Transmittal of certification.--The Assistant Attorney 
     General for Civil Rights shall transmit to the Attorney 
     General either--
       (A) a certification under subparagraph (A) of paragraph 
     (3); or
       (B) a notice of noncertification under subparagraph (B) of 
     such paragraph, together with a report identifying the 
     relevant deficiencies in the State's or locality's system for 
     voting or administering elections for Federal office or in 
     the request for certification submitted by the State or 
     locality.

     SEC. 214. AUTHORIZED ACTIVITIES.

       A State or locality may use grant payments received under 
     this subtitle--
       (1) to improve, acquire, lease, modify, or replace voting 
     systems and technology and to improve the accessibility of 
     polling places, including providing physical access for 
     individuals with disabilities, providing nonvisual access for 
     individuals with visual impairments, and providing assistance 
     to individuals with limited proficiency in the English 
     language;
       (2) to implement new election administration procedures to 
     increase voter participation and to reduce 
     disenfranchisement, such as ``same-day'' voter registration 
     procedures;
       (3) to educate voters concerning voting procedures, voting 
     rights or voting technology, and to train election officials, 
     poll workers, and election volunteers;
       (4) to implement new election administration procedures 
     such as requiring individuals to present identification at 
     the polls and programs to identify, to deter, and to 
     investigate voting fraud and to refer allegations of voting 
     fraud to the appropriate authority;
       (5) to meet the requirements of current Federal election 
     law in accordance with the demonstration submitted under 
     section 212(c)(1)(B) of such section; or
       (6) to meet the requirements under section 101, 102, or 
     103.

     SEC. 215. PAYMENTS; FEDERAL SHARE.

       (a) Payments.--
       (1) In general.--The Attorney General shall pay to each 
     State or locality having an application approved under 
     section 213 the Federal share of the costs of the activities 
     described in that application.
       (2) Retroactive payments.--The Attorney General may make 
     retroactive payments to States and localities having an 
     application approved under section 213 for the Federal share 
     of any costs for election technology or administration that 
     meets the requirements of sections 101, 102, and 103 that 
     were incurred during the period beginning on January 1, 2001, 
     and ending on the date on which such application was approved 
     under such section.
       (b) Federal Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     Federal share of the costs shall be a percentage determined 
     by the Attorney General that does not exceed 80 percent.
       (2) Exception.--The Attorney General may provide for a 
     Federal share of greater than 80 percent of the costs for a 
     State or locality if the Attorney General determines that 
     such greater percentage is necessary due to the lack of 
     resources of the State or locality.

     SEC. 216. AUDITS AND EXAMINATIONS OF STATES AND LOCALITIES.

       (a) Recordkeeping Requirement.--Each recipient of a grant 
     under this subtitle shall keep such records as the Attorney 
     General, in consultation with the Federal Election 
     Commission, shall prescribe.
       (b) Audits and Examinations.--The Attorney General and the 
     Comptroller General, or any authorized representative of the 
     Attorney General or the Comptroller General, may audit or 
     examine any recipient of a grant under this subtitle and 
     shall, for the purpose of conducting an audit or examination, 
     have access to any record of a recipient of a grant under 
     this subtitle that the Attorney General or the Comptroller 
     General determines may be related to the grant.
       (c) Other Audits.--If the Assistant Attorney General for 
     Civil Rights has certified a State or locality as eligible to 
     receive a grant under this subtitle in order to meet a 
     certification requirement described in section 212(c)(1)(A) 
     (as permitted under section 214(5)) and such State or 
     locality is a recipient of such a grant, such Assistant 
     Attorney General, in consultation with the Federal Election 
     Commission shall--
       (1) audit such recipient to ensure that the recipient has 
     achieved, or is achieving, compliance with the certification 
     requirements described in section 212(c)(1)(A); and
       (2) have access to any record of the recipient that the 
     Attorney General determines may be related to such a grant 
     for the purpose of conducting such an audit.

[[Page 26995]]



     SEC. 217. REPORTS TO CONGRESS AND THE ATTORNEY GENERAL.

       (a) Reports to Congress.--
       (1) In general.--Not later than January 31, 2003, and each 
     year thereafter, the Attorney General shall submit to the 
     President and Congress a report on the grant program 
     established under this subtitle for the preceding year.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall contain the following:
       (A) A description and analysis of any activities funded by 
     a grant awarded under this subtitle.
       (B) Any recommendation for legislative or administrative 
     action that the Attorney General considers appropriate.
       (b) Reports to the Attorney General.--The Attorney General 
     shall require each recipient of a grant under this subtitle 
     to submit reports to the Attorney General at such time, in 
     such manner, and containing such information as the Attorney 
     General considers appropriate.

     SEC. 218. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     $400,000,000 for fiscal year 2002 to carry out the provisions 
     of this subtitle.
       (b) Availability.--Any amounts appropriated pursuant to the 
     authority of subsection (a) shall remain available without 
     fiscal year limitation until expended.

     SEC. 219. EFFECTIVE DATE.

       The Attorney General shall establish the general policies 
     and criteria for the approval of applications under section 
     213(a) in a manner that ensures that the Attorney General is 
     able to approve applications not later than October 1, 2002.

        Subtitle C--Federal Election Accessibility Grant Program

     SEC. 221. ESTABLISHMENT OF THE FEDERAL ELECTION ACCESSIBILITY 
                   GRANT PROGRAM.

       (a) In General.--There is established a Federal Election 
     Accessibility Grant Program under which the Attorney General, 
     subject to the general policies and criteria for the approval 
     of applications established under section 223 by the 
     Architectural and Transportation Barriers Compliance Board 
     (as established under section 502 of the Rehabilitation Act 
     of 1973 (29 U.S.C. 792)) (in this subtitle referred to as the 
     ``Access Board''), is authorized to make grants to States and 
     localities to pay the costs of the activities described in 
     section 224.
       (b) Action Through Office of Justice Programs and Civil 
     Rights Division.--In carrying out this subtitle, the Attorney 
     General shall act through--
       (1) the Assistant Attorney General in charge of the Office 
     of Justice Programs of the Department of Justice; and
       (2) the Assistant Attorney General in charge of the Civil 
     Rights Division of that Department.

     SEC. 222. APPLICATION.

       (a) In General.--Each State or locality that desires to 
     receive a grant under this subtitle shall submit an 
     application to the Attorney General at such time, in such 
     manner, and containing such information as the Attorney 
     General shall require, consistent with the provisions of this 
     section.
       (b) Contents.--Each application submitted under subsection 
     (a) shall--
       (1) describe the activities for which assistance under this 
     section is sought;
       (2) provide assurances that the State or locality will pay 
     the non-Federal share of the cost of the activities for which 
     assistance is sought from non-Federal sources; and
       (3) provide such additional assurances as the Attorney 
     General determines to be essential to ensure compliance with 
     the requirements of this subtitle.
       (c) Relation to Federal Election Reform Incentive Grant 
     Program.--A State or locality that desires to do so may 
     submit an application under this section as part of any 
     application submitted under section 212(a).
       (d) Safe Harbor.--No action may be brought against a State 
     or locality on the basis of any information contained in the 
     application submitted under subsection (a).

     SEC. 223. APPROVAL OF APPLICATIONS.

       The Access Board shall establish general policies and 
     criteria for the approval of applications submitted under 
     section 222(a).

     SEC. 224. AUTHORIZED ACTIVITIES.

       A State or locality may use grant payments received under 
     this subtitle--
       (1) to make polling places, including the path of travel, 
     entrances, exits, and voting areas of each polling facility, 
     accessible to individuals with disabilities, including the 
     blind and visually impaired, in a manner that provides the 
     same opportunity for access and participation (including 
     privacy and independence) as for other voters; and
       (2) to provide individuals with disabilities and the other 
     individuals described in paragraph (1) with information about 
     the accessibility of polling places, including outreach 
     programs to inform the individuals about the availability of 
     accessible polling places and to train election officials, 
     poll workers, and election volunteers on how best to promote 
     the access and participation of the individuals in elections 
     for Federal office.

     SEC. 225. PAYMENTS; FEDERAL SHARE.

       (a) Payments.--The Attorney General shall pay to each State 
     or locality having an application approved under section 223 
     the Federal share of the costs of the activities described in 
     that application.
       (b) Federal Share.--
       (1) In general.--Except as provided in paragraph (2), the 
     Federal share of the costs shall be a percentage determined 
     by the Attorney General that does not exceed 80 percent.
       (2) Exception.--The Attorney General may provide for a 
     Federal share of greater than 80 percent of the costs for a 
     State or locality if the Attorney General determines that 
     such greater percentage is necessary due to the lack of 
     resources of the State or locality.

     SEC. 226. AUDITS AND EXAMINATIONS OF STATES AND LOCALITIES.

       (a) Recordkeeping Requirement.--Each recipient of a grant 
     under this subtitle shall keep such records as the Attorney 
     General, in consultation with the Access Board, shall 
     prescribe.
       (b) Audits and Examinations.--The Attorney General and the 
     Comptroller General, or any authorized representative of the 
     Attorney General or the Comptroller General, may audit or 
     examine any recipient of a grant under this subtitle and 
     shall, for the purpose of conducting an audit or examination, 
     have access to any record of a recipient of a grant under 
     this subtitle that the Attorney General or the Comptroller 
     General determines may be related to the grant.

     SEC. 227. REPORTS TO CONGRESS AND THE ATTORNEY GENERAL.

       (a) Reports to Congress.--
       (1) In general.--Not later than January 31, 2003, and each 
     year thereafter, the Attorney General shall submit to the 
     President and Congress a report on the grant program 
     established under this subtitle for the preceding year.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall contain the following:
       (A) A description and analysis of any activities funded by 
     a grant awarded under this subtitle.
       (B) Any recommendation for legislative or administrative 
     action that the Attorney General considers appropriate.
       (b) Reports to the Attorney General.--The Attorney General 
     shall require each recipient of a grant under this subtitle 
     to submit reports to the Attorney General at such time, in 
     such manner, and containing such information as the Attorney 
     General considers appropriate.

     SEC. 228. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     $100,000,000 for fiscal year 2002 to carry out the provisions 
     of this subtitle.
       (b) Availability.--Any amounts appropriated pursuant to the 
     authority of subsection (a) shall remain available without 
     fiscal year limitation until expended.

     SEC. 229. EFFECTIVE DATE.

       The Access Board shall establish the general policies and 
     criteria for the approval of applications under section 223 
     in a manner that ensures that the Attorney General is able to 
     approve applications not later than October 1, 2002.

                       TITLE III--ADMINISTRATION

             Subtitle A--Election Administration Commission

     SEC. 301. ESTABLISHMENT OF THE ELECTION ADMINISTRATION 
                   COMMISSION.

       There is established the Election Administration Commission 
     (in this subtitle referred to as the ``Commission'') as an 
     independent establishment (as defined in section 104 of title 
     5, United States Code).

     SEC. 302. MEMBERSHIP OF THE COMMISSION.

       (a) Number and Appointment.--
       (1) Composition.--The Commission shall be composed of 4 
     members appointed by the President, by and with the advice 
     and consent of the Senate.
       (2) Recommendations.--Before the initial appointment of the 
     members of the Commission and before the appointment of any 
     individual to fill a vacancy on the Commission, the Majority 
     Leader of the Senate, the Speaker of the House of 
     Representatives, the Minority Leader of the Senate, and the 
     Minority Leader of the House of Representatives shall each 
     submit to the President a candidate recommendation with 
     respect to each vacancy on the Commission affiliated with the 
     political party of the officer involved.
       (b) Qualifications.--
       (1) In general.--Each member appointed under subsection (a) 
     shall be appointed on the basis of--
       (A) knowledge of--
       (i) and experience with, election law;
       (ii) and experience with, election technology;
       (iii) and experience with, Federal, State, or local 
     election administration;
       (iv) the Constitution; or
       (v) the history of the United States; and
       (B) integrity, impartiality, and good judgment.
       (2) Party affiliation.--Not more than 2 of the 4 members 
     appointed under subsection (a) may be affiliated with the 
     same political party.
       (3) Federal officers and employees.--Members appointed 
     under subsection (a)

[[Page 26996]]

     shall be individuals who, at the time appointed to the 
     Commission, are not elected or appointed officers or 
     employees of the Federal Government.
       (4) Other activities.--No member appointed to the 
     Commission under subsection (a) may engage in any other 
     business, vocation, or employment while serving as a member 
     of the Commission and shall terminate or liquidate such 
     business, vocation, or employment not later than the date on 
     which the Commission first meets.
       (c) Date of Appointment.--The appointments of the members 
     of the Commission shall be made not later than the date that 
     is 90 days after the date of enactment of this Act.
       (d) Period of Appointment; Vacancies.--
       (1) Period of appointment.--Members shall be appointed for 
     a term of 6 years, except that, of the members first 
     appointed, 2 of the members who are not affiliated with the 
     same political party shall be appointed for a term of 4 
     years. Except as provided in paragraph (2), a member may only 
     serve 1 term.
       (2) Vacancies.--
       (A) In general.--A vacancy on the Commission shall not 
     affect its powers, but shall be filled in the manner in which 
     the original appointment was made. The appointment made to 
     fill the vacancy shall be subject to any conditions which 
     applied with respect to the original appointment.
       (B) Expired terms.--A member of the Commission may serve on 
     the Commission after the expiration of the member's term 
     until the successor of such member has taken office as a 
     member of the Commission.
       (C) Unexpired terms.--An individual appointed to fill a 
     vacancy on the Commission occurring before the expiration of 
     the term for which the individual's predecessor was appointed 
     shall be appointed for the unexpired term of the member 
     replaced. Such individual may be appointed to a full term in 
     addition to the unexpired term for which that individual is 
     appointed.
       (e) Chairperson; Vice Chairperson.--
       (1) In general.--The Commission shall elect a chairperson 
     and vice chairperson from among its members for a term of 1 
     year.
       (2) Number of terms.--A member of the Commission may serve 
     as the chairperson only twice during the term of office to 
     which such member is appointed.
       (3) Political affiliation.--The chairperson and vice 
     chairperson may not be affiliated with the same political 
     party.

     SEC. 303. DUTIES OF THE COMMISSION.

       (a) In General.--The Commission--
       (1) shall serve as a clearinghouse, gather information, 
     conduct studies, and issue reports concerning issues relating 
     to elections for Federal office;
       (2) shall carry out the provisions of section 9 of the 
     National Voter Registration Act of 1993 (42 U.S.C. 1973gg-7);
       (3) shall make available information regarding the Federal 
     election system to the public and media;
       (4) shall compile and make available to the public the 
     official certified results of elections for Federal office 
     and statistics regarding national voter registration and 
     turnout;
       (5) shall establish an Internet website to facilitate 
     public access, public comment, and public participation in 
     the activities of the Commission, and shall make all 
     information on such website available in print;
       (6) shall conduct the study on election technology and 
     administration under subsection (b)(1) and submit the report 
     under subsection (b)(2); and
       (7) beginning on the transition date (as defined in section 
     316(a)(2)), shall administer--
       (A) the voting systems standards under section 101;
       (B) the provisional voting requirements under section 102;
       (C) the computerized statewide voter registration list 
     requirements and requirements for voters who register by mail 
     under section 103;
       (D) the Uniform and Nondiscriminatory Election Technology 
     and Administration Requirements Grant Program under subtitle 
     A of title II;
       (E) the Federal Election Reform Incentive Grant Program 
     under subtitle C of title II; and
       (F) the Federal Election Accessibility Grant Program under 
     subtitle B of title II.
       (b) Studies and Reports on Election Technology and 
     Administration.--
       (1) Studies.--The Commission shall conduct periodic studies 
     of--
       (A) methods of election technology and voting systems in 
     elections for Federal office, including the over-vote and 
     under-vote notification capabilities of such technology and 
     systems;
       (B) ballot designs for elections for Federal office;
       (C) methods of ensuring the accessibility of voting, 
     registration, polling places, and voting equipment to all 
     voters, including blind and disabled voters, and voters with 
     limited proficiency in the English language;
       (D) nationwide statistics and methods of identifying, 
     deterring, and investigating voting fraud in elections for 
     Federal office;
       (E) methods of voter intimidation;
       (F) the recruitment and training of poll workers;
       (G) the feasibility and advisability of conducting 
     elections for Federal office on different days, at different 
     places, and during different hours, including the 
     advisability of establishing a uniform poll closing time and 
     establishing election day as a Federal holiday;
       (H) ways that the Federal Government can best assist State 
     and local authorities to improve the administration of 
     elections for Federal office and what levels of funding would 
     be necessary to provide such assistance; and
       (I) such other matters as the Commission determines are 
     appropriate.
       (2) Reports.--The Commission shall submit to the President 
     and Congress a report on each study conducted under paragraph 
     (1) together with such recommendations for administrative and 
     legislative action as the Commission determines is 
     appropriate.

     SEC. 304. MEETINGS OF THE COMMISSION.

       The Commission shall meet at the call of any member of the 
     Commission, but may not meet less often than monthly.

     SEC. 305. POWERS OF THE COMMISSION.

       (a) Hearings.--The Commission or, at its direction, any 
     subcommittee or member of the Commission, may, for the 
     purpose of carrying out this subtitle hold such hearings, sit 
     and act at such times and places, take such testimony, 
     receive such evidence, administer such oaths as the 
     Commission or such subcommittee or member considers 
     advisable.
       (b) Voting.--
       (1) In general.--Each action of the Commission shall be 
     approved by a majority vote of the members of the Commission 
     and each member of the Commission shall have 1 vote.
       (2) Special rules.--
       (A) Uniform and nondiscriminatory election technology and 
     administration requirements.--
       (i) Adoption or revision of standards and guidelines.--If 
     standards or guidelines have been promulgated under section 
     101, 102, or 103 as of the transition date (as defined in 
     section 316(a)(2)), not later than 30 days after the 
     transition date, the Commission shall--

       (I) adopt such standards or guidelines by a majority vote 
     of the members of the Commission; or
       (II) promulgate revisions to such standards or guidelines 
     and such revisions shall take effect only upon the approval 
     of a majority of the members of the Commission.

       (ii) Establishment of standards and guidelines.--

       (I) If standards or guidelines have not been promulgated 
     under section 101, 102, or 103 as of the transition date (as 
     defined in section 316(a)(2)), the Commission shall 
     promulgate such standards or guidelines not later than the 
     date described in subclause (II) and such standards or 
     guidelines shall take effect only upon the approval of a 
     majority of the members of the Commission.
       (II) The date described this subclause is the later of--

       (aa) the date described in section 101(c)(1), 102(c), or 
     103(c) (as applicable); or
       (bb) the date that is 30 days after the transition date (as 
     defined in section 316(a)(2)).
       (B) Grant programs.--
       (i) Approval or denial.--The grants shall be approved or 
     denied under sections 204, 213, and 223 by a majority vote of 
     the members of the Commission not later than the date that is 
     30 days after the date on which the application is submitted 
     to the Commission under section 203, 212, or 222.
       (ii) Adoption or revision of general policies and 
     criteria.--If general policies and criteria for the approval 
     of applications have been established under section 204, 213, 
     or 223 as of the transition date (as defined in section 
     316(a)(2)), not later than 30 days after the transition date, 
     the Commission shall--

       (I) adopt such general policies and criteria by a majority 
     vote of the members of the Commission; or
       (II) promulgate revisions to such general policies and 
     criteria and such revisions shall take effect only upon the 
     approval of a majority of the members of the Commission.

       (iii) Establishment of general policies and criteria.--

       (I) If general policies and criteria for the approval of 
     applications have been established under section 204, 213, or 
     223 as of the transition date (as defined in section 
     316(a)(2)), the Commission shall promulgate such general 
     policies and criteria not later than the date described in 
     subclause (II) and such general policies and criteria shall 
     take effect only upon the approval of a majority of the 
     members of the Commission.
       (II) The date described this subclause is the later of--

       (aa) the date described in section 101(c)(1), 102(c), or 
     103(c) (as applicable); or
       (bb) the date that is 30 days after the transition date (as 
     defined in section 316(a)(2)).
       (c) Information From Federal Agencies.--The Commission may 
     secure directly from any Federal department or agency such 
     information as the Commission considers necessary to carry 
     out this subtitle. Upon request of the Commission, the head 
     of such department or agency shall furnish such information 
     to the Commission.
       (d) Postal Services.--The Commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.

[[Page 26997]]



     SEC. 306. COMMISSION PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the Commission 
     shall be compensated at the annual rate of basic pay 
     prescribed for level IV of the Executive Schedule under 
     section 5315 of title 5, United States Code.
       (b) Staff.--
       (1) Appointment and termination.--Subject to paragraph (2), 
     the Commission may, without regard to the provisions of title 
     5, United States Code, governing appointments in the 
     competitive service, appoint and terminate an Executive 
     Director, a General Counsel, and such other personnel as may 
     be necessary to enable the Commission to perform its duties.
       (2) Executive director; general counsel.--
       (A) Appointment and termination.--The appointment and 
     termination of the Executive Director and General Counsel 
     under paragraph (1) shall be approved by a majority of the 
     members of the Commission.
       (B) Initial appointment.--Beginning on the transition date 
     (as defined in section 316(a)(2)), the Director of the Office 
     of Election Administration of the Federal Election Commission 
     shall serve as the Executive Director of the Commission until 
     such date as a successor is appointed under paragraph (1).
       (C) Term.--The term of the Executive Director and the 
     General Counsel shall be for a period of 6 years. An 
     individual may not serve for more than 2 terms as the 
     Executive Director or the General Counsel. The appointment of 
     an individual with respect to each term shall be approved by 
     a majority of the members of the Commission.
       (D) Continuance in office.--Notwithstanding subparagraph 
     (C), the Executive Director and General Counsel shall 
     continue in office until a successor is appointed under 
     paragraph (1).
       (3) Compensation.--The Commission may fix the compensation 
     of the Executive Director, General Counsel, and other 
     personnel without regard to chapter 51 and subchapter III of 
     chapter 53 of title 5, United States Code, relating to 
     classification of positions and General Schedule pay rates, 
     except that the rate of pay for the Executive Director, 
     General Counsel, and other personnel may not exceed the rate 
     payable for level V of the Executive Schedule under section 
     5316 of such title.
       (c) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.
       (d) Procurement of Temporary and Intermittent Services.--
     The Commission may procure temporary and intermittent 
     services under section 3109(b) of title 5, United States 
     Code, at rates for individuals which do not exceed the daily 
     equivalent of the annual rate of basic pay prescribed for 
     level V of the Executive Schedule under section 5316 of such 
     title.

     SEC. 307. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Commission 
     such sums as may be necessary to carry out this subtitle.

                   Subtitle B--Transition Provisions

     SEC. 311. EQUAL PROTECTION OF VOTING RIGHTS ACT OF 2001.

       (a) Transfer of Certain Functions of Federal Election 
     Commission.--There are transferred to the Election 
     Administration Commission established under section 301 all 
     functions of the Federal Election Commission under section 
     101 and under subtitles A and B of title II before the 
     transition date (as defined in section 316(a)(2)).
       (b) Transfer of Certain Functions of the Attorney 
     General.--
       (1) Title i functions.--There are transferred to the 
     Election Administration Commission established under section 
     301 all functions of the Assistant Attorney General in charge 
     of the Civil Rights Division of the Department of Justice 
     under sections 102 and 103 before the transition date (as 
     defined in section 316(a)(2)).
       (2) Grantmaking Functions.--
       (A) In general.--Except as provided in paragraph (2), there 
     are transferred to the Election Administration Commission 
     established under section 301 all functions of the Attorney 
     General, the Assistant Attorney General in charge of the 
     Office of Justice Programs of the Department of Justice, and 
     the Assistant Attorney General in charge of the Civil Rights 
     Division of the Department of Justice under subtitles A, B, 
     and C of title II before the transition date (as defined in 
     section 316(a)(2)).
       (B) Exception.--The functions of the Attorney General 
     relating to the review of State plans under section 204 and 
     the certification requirements under section 213 shall not be 
     transferred under paragraph (1).
       (3) Enforcement.--The Attorney General shall remain 
     responsible for any enforcement action required under this 
     Act, including the enforcement of the voting systems 
     standards through the Assistant Attorney General in charge of 
     the Civil Rights Division of the Department of Justice under 
     section 104 and the criminal penalties under section 401.
       (c) Transfer of Certain Functions of the Access Board.--
     There are transferred to the Election Administration 
     Commission established under section 301 all functions of the 
     Architectural and Transportation Barriers Compliance Board 
     (as established under section 502 of the Rehabilitation Act 
     of 1973 (29 U.S.C. 792)) under section 101 and under 
     subtitles A, B, and C of title II before the transition date 
     (as defined in section 316(a)(2)).

     SEC. 312. FEDERAL ELECTION CAMPAIGN ACT OF 1971.

       (a) Transfer of Functions of Office of Election 
     Administration.--There are transferred to the Election 
     Administration Commission established under section 301 all 
     functions of the Director of the Office of the Election 
     Administration of the Federal Election Commission before the 
     transition date (as defined in section 316(a)(2)).
       (b) Conforming Amendment.--Section 311(a) of the Federal 
     Election Campaign Act of 1971 (2 U.S.C. 438(a)) is amended--
       (1) in paragraph (8), by inserting ``and'' at the end;
       (2) in paragraph (9), by striking ``; and'' and inserting a 
     period; and
       (3) by striking paragraph (10) and the second and third 
     sentences.

     SEC. 313. NATIONAL VOTER REGISTRATION ACT OF 1993.

       (a) Transfer of Functions.--There are transferred to the 
     Election Administration Commission established under section 
     301 all functions of the Federal Election Commission under 
     the National Voter Registration Act of 1993 before the 
     transition date (as defined in section 316(a)(2)).
       (b) Conforming Amendment.--For purposes of section 9(a) of 
     the National Voter Registration Act of 1993 (42 U.S.C. 
     1973gg-7(a)), the reference to the Federal Election 
     Commission shall be deemed to be a reference to the Election 
     Administration Commission.

     SEC. 314. TRANSFER OF PROPERTY, RECORDS, AND PERSONNEL.

       (a) Property and Records.--The contracts, liabilities, 
     records, property, and other assets and interests of, or made 
     available in connection with, the offices and functions of 
     the Federal Election Commission which are transferred by this 
     subtitle are transferred to the Election Administration 
     Commission for appropriate allocation.
       (b) Personnel.--The personnel employed in connection with 
     the offices and functions of the Federal Election Commission 
     which are transferred by this subtitle are transferred to the 
     Election Administration Commission.

     SEC. 315. COVERAGE OF ELECTION ADMINISTRATION COMMISSION 
                   UNDER CERTAIN LAWS AND PROGRAMS.

       (a) Treatment of Commission Personnel Under Certain Civil 
     Service Laws.--
       (1) Coverage under hatch act.--Section 7323(b)(2)(B)(i)(I) 
     of title 5, United States Code, is amended by inserting ``or 
     the Election Administration Commission'' after 
     ``Commission''.
       (2) Exclusion from senior executive service.--Section 
     3132(a)(1)(C) of title 5, United States Code, is amended by 
     inserting ``or the Election Administration Commission'' after 
     ``Commission''.
       (b) Coverage Under Inspector General Act of 1978.--Section 
     8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. App.) 
     is amended by inserting ``, the Election Administration 
     Commission,'' after ``Federal Election Commission,''.

     SEC. 316. EFFECTIVE DATE; TRANSITION.

       (a) Effective Date.--
       (1) In general.--This subtitle and the amendments made by 
     this subtitle shall take effect on the transition date (as 
     defined in paragraph (2)).
       (2) Transition date defined.--In this section, the term 
     ``transition date'' means the earlier of--
       (A) the date that is 1 year after the date of enactment of 
     this Act; or
       (B) the date that is 60 days after the first date on which 
     all of the members of the Election Administration Commission 
     have been appointed under section 302.
       (b) Transition.--With the consent of the entity involved, 
     the Election Administration Commission is authorized to 
     utilize the services of such officers, employees, and other 
     personnel of the entities from which functions have been 
     transferred to the Commission under this title or the 
     amendments made by this title for such period of time as may 
     reasonably be needed to facilitate the orderly transfer of 
     such functions.

                        TITLE IV--MISCELLANEOUS

     SEC. 401. CRIMINAL PENALTIES.

       (a) Conspiracy To Deprive Voters of a Fair Election.--Any 
     individual who gives false information in registering or 
     voting in violation of section 11(c) of the National Voting 
     Rights Act of 1965 (42 U.S.C. 1973i(c)), or conspires with 
     another to violate such section, shall be fined or 
     imprisoned, or both, in accordance with such section.
       (b) False Information in Registering and Voting.--Any 
     individual who commits fraud or makes a false statement with 
     respect to the naturalization, citizenry, or alien registry 
     of such individual in violation of section 1015 of title 18, 
     United States Code, shall be fined or imprisoned, or both, in 
     accordance with such section.

     SEC. 402. RELATIONSHIP TO OTHER LAWS.

       (a) In General.--Except as otherwise provided in this Act, 
     nothing in this Act may be

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     construed to authorize or require conduct prohibited under 
     the following laws, or supersede, restrict, or limit such 
     laws:
       (1) The Voting Rights Act of 1965 (42 U.S.C. 1973 et seq.).
       (2) The Voting Accessibility for the Elderly and 
     Handicapped Act (42 U.S.C. 1973ee et seq.).
       (3) The Uniformed and Overseas Citizens Absentee Voting Act 
     (42 U.S.C. 1973ff et seq.).
       (4) The National Voter Registration Act of 1993 (42 U.S.C. 
     1973gg et seq.).
       (5) The Americans with Disabilities Act of 1990 (42 U.S.C. 
     1994 et seq.).
       (6) The Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.).
       (b) No Effect on Preclearance or Other Requirements Under 
     Voting Rights Act.--The approval by the Attorney General of a 
     State's application for a grant under title II, or any other 
     action taken by the Attorney General or a State under such 
     title, shall not be considered to have any effect on 
     requirements for preclearance under section 5 of the Voting 
     Rights Act of 1965 (42 U.S.C. 1973c) or any other 
     requirements of such Act.

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