[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 845-857]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2826. Mr. DORGAN (for himself, Mr. Grassley, Mr. Hagel, Mr. 
Johnson, Mr. Lugar, Mr. Fitzgerald, Mr. Nelson of Nebraska, Mr. Ensign, 
Mr. Wellstone, Mr. Durbin, Mr. Torricelli, Mr. Kohl, and Mr. Brownback) 
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:

       Strike section 165 and insert the following:

     SEC. 165. PAYMENT LIMITATIONS; NUTRITION AND COMMODITY 
                   PROGRAMS.

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

     ``SEC. 1001. PAYMENT LIMITATIONS.

       ``(a) Definitions.--In this section and sections 1001A 
     through 1001F:
       ``(1) Beneficial interest.--The term `beneficial interest' 
     means an interest in an entity that is at least--
       ``(A) 10 percent; or
       ``(B) a lower percentage, which the Secretary shall 
     establish, on a case-by-case basis, as needed to achieve the 
     purposes of this section and sections 1001A through 1001F, 
     including effective implementation of section 1001A(b).

[[Page 846]]

       ``(2) Counter-cyclical payment.--The term `counter-cyclical 
     payment'' means a payment made under section 114 or 158D of 
     the Federal Agriculture Improvement and Reform Act of 1996.
       ``(3) Direct payment.--The term `direct payment' means a 
     payment made under section 113 or 158C of the Federal 
     Agriculture Improvement and Reform Act of 1996.
       ``(4) Entity.--
       ``(A) In general.--The term `entity' means--
       ``(i) an entity that (subject to the requirements of this 
     section and section 1001A) is eligible to receive a payment 
     under subsection (b) or (c);
       ``(ii) a corporation, joint stock company, association, 
     limited partnership, charitable organization, a grantor of a 
     revocable trust, or other similar entity (as determined by 
     the Secretary); and
       ``(iii) an entity that is participating in a farming 
     operation as a partner in a general partnership or as a 
     participant in a joint venture.
       ``(B) Exclusion.--Except in section 1001F, the term 
     `entity' does not include an entity that is a general 
     partnership or joint venture.
       ``(5) Individual.--The term `individual' means--
       ``(A) a natural person, and minor children of the natural 
     person (as determined by the Secretary), that (subject to the 
     requirements of this section and section 1001A) is eligible 
     to receive a payment under subsection (b) or (c); and
       ``(B) an individual participating in a farming operation as 
     a partner in a general partnership, a participant in a joint 
     venture, a grantor of a revocable trust, or a participant in 
     a similar entity (as determined by the Secretary).
       ``(6) Loan commodity.--The term `loan commodity' has the 
     meaning given the term in section 102 of the Federal 
     Agriculture Improvement and Reform Act of 1996.
       ``(7) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(b) Limitations on Direct and Counter-Cyclical 
     Payments.--Subject to subsections (d) through (i), the total 
     amount of direct payments and counter-cyclical payments that 
     an individual or entity may receive, directly or indirectly, 
     during any fiscal year shall not exceed $85,000.
       ``(c) Limitations on Marketing Loan Gains, Loan Deficiency 
     Payments, and Commodity Certificate Transactions.--
       ``(1) In general.--Subject to subsections (d) through (i), 
     the total amount of the payments and benefits described in 
     paragraph (2) that an individual or entity may receive, 
     directly or indirectly, during any crop year shall not exceed 
     $125,000.
       ``(2) Payments and benefits.--Paragraph (1) shall apply to 
     the following payments and benefits:
       ``(A) Marketing loan gains.--
       ``(i) Repayment gains.--Any gain realized by a producer 
     from repaying a marketing assistance loan under section 131 
     or 158G(a) of the Federal Agriculture Improvement and Reform 
     Act of 1996 for a crop of any loan commodity or peanuts, 
     respectively, at a lower level than the original loan rate 
     established for the loan commodity or peanuts under section 
     132 or 158G(d) of that Act, respectively.
       ``(ii) Forfeiture gains.--In the case of settlement of a 
     marketing assistance loan under section 131 or 158G(a) of 
     that Act for a crop of any loan commodity or peanuts, 
     respectively, by forfeiture, the amount by which the loan 
     amount exceeds the repayment amount for the loan if the loan 
     had been settled by repayment instead of forfeiture.
       ``(B) Loan deficiency payments.--Any loan deficiency 
     payment received for a loan commodity or peanuts under 
     section 135 or 158G(e) of that Act, respectively.
       ``(C) Commodity certificates.--Any gain realized from the 
     use of a commodity certificate issued by the Commodity Credit 
     Corporation, as determined by the Secretary, including the 
     use of a certificate for the settlement of a marketing 
     assistance loan made under section 131 or 158G(a) of that 
     Act.
       ``(d) Settlement of Certain Loans.--Notwithstanding 
     subtitle C and section 158G of the Federal Agriculture 
     Improvement and Reform Act of 1996, if the amount of payments 
     and benefits described in subsection (c)(2) attributed 
     directly or indirectly to an individual or entity for a crop 
     year reaches the limitation described in subsection (c)(1)--
       ``(1) the portion of any unsettled marketing assistance 
     loan made under section 131 or 158G(a) of that Act attributed 
     directly or indirectly to the individual or entity shall be 
     settled through the repayment of the total loan principal, 
     plus applicable interest; and
       ``(2) the Secretary may refuse to provide to the producer 
     for the crop year any additional marketing assistance loans 
     under section 131 or 158G(a) of that Act.
       ``(e) Payments to Individuals and Entities.--
       ``(1) Interests within the same entity.--All individuals or 
     entities that are owners of an entity, including 
     shareholders, may not collectively receive payments directly 
     or indirectly that are attributable to the ownership 
     interests in the entity for a fiscal or corresponding crop 
     year that exceed the limitations established under 
     subsections (b) and (c).
       ``(2) All interests of an individual or entity.--An 
     individual or entity may not receive, directly or indirectly, 
     through all ownership interests of the individual or entity 
     from all sources, payments for a fiscal or corresponding crop 
     year that exceed the limitations established under 
     subsections (b) and (c).
       ``(f) Married Couples.--During a fiscal and corresponding 
     crop year, the total amount of payments and benefits 
     described subsections (b) and (c) that a married couple may 
     receive directly or indirectly may not exceed--
       ``(1) the limits described in subsections (b) and (c); plus
       ``(2) if each spouse meets the other requirements 
     established under this section and section 1001A, a combined 
     total of an additional $50,000.
       ``(g) Public Schools.--The provisions of this section that 
     limit payments to any individual or entity shall not be 
     applicable to land owned by a public school district or land 
     owned by a State that is used to maintain a public school.
       ``(h) Time Limits.--The Secretary shall promulgate 
     regulations that establish time limits for the various steps 
     involved with notice, hearing, decision, and the appeals 
     procedure in order to ensure expeditious handling and 
     settlement of payment limitation disputes.
       ``(i) Good Faith Reliance.--Notwithstanding any other 
     provision of law, an action taken by an individual or other 
     entity in good faith on action or advice of an authorized 
     representative of the Secretary may be accepted as meeting 
     the requirements of this section or section 1001A, to the 
     extent the Secretary determines it is desirable in order to 
     provide fair and equitable treatment.''.
       (2) Substantive change.--Section 1001A(a) of the Food 
     Security Act of 1985 (7 U.S.C. 1308-1(a)) is amended--
       (A) in the section heading, by striking ``PREVENTION OF 
     CREATION OF ENTITIES TO QUALIFY AS SEPARATE PERSONS;'' and 
     inserting ``SUBSTANTIVE CHANGE;'';
       (B) by striking ``(a) Prevention'' and all that follows 
     through the end of paragraph (2) and inserting the following:
       ``(a) Substantive Change.--
       ``(1) In general.--The Secretary may not approve (for 
     purposes of the application of the limitations under this 
     section) any change in a farming operation that otherwise 
     will increase the number of individuals or entities to which 
     the limitations under this section are applied unless the 
     Secretary determines that the change is bona fide and 
     substantive.
       ``(2) Family members.--For the purpose of paragraph (1), 
     the addition of a family member to a farming operation under 
     the criteria established under subsection (b)(3)(B) shall be 
     considered a bona fide and substantive change in the farming 
     operation.'';
       (C) in the first sentence of paragraph (3)--
       (i) by striking ``as a separate person''; and
       (ii) by inserting ``, as determined by the Secretary'' 
     before the period at the end; and
       (D) by striking paragraph (4).
       (3) Actively engaged in farming.--Section 1001A(b) of the 
     Food Security Act of 1985 (7 U.S.C. 1308-1(b)) is amended--
       (A) by striking paragraph (1) and inserting the following:
       ``(1) In general.--To be eligible to receive, directly or 
     indirectly, payments or benefits (as described in subsections 
     (b) and (c) of section 1001 as being subject to limitation) 
     with respect to a particular farming operation an individual 
     or entity shall be actively engaged in farming with respect 
     to the operation, as provided under paragraphs (2), (3), and 
     (4).'';
       (B) in paragraph (2)--
       (i) in subparagraph (A)(i), by striking subclause (II) and 
     inserting the following:

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

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

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

[[Page 847]]

     beneficial interest and makes a significant contribution of 
     personal labor or active personal management; and

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

       ``(I) 1000 hours annually; or
       ``(II) 50 percent of the commensurate share of the total 
     number of hours of personal labor and active personal 
     management required to conduct the farming operation.

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

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

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

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

       ``(a) Definitions.--In this section:
       ``(1) Adjusted gross income.--The term `adjusted gross 
     income' means adjusted gross income of an individual or 
     entity--
       ``(A) as defined in section 62 of the Internal Revenue Code 
     of 1986 and implemented in accordance with procedures 
     established by the Secretary; and
       ``(B) that is earned directly or indirectly from all 
     agricultural and nonagricultural sources of an individual or 
     entity for a fiscal or corresponding crop year.
       ``(2) Average adjusted gross income.--
       ``(A) In general.--The term `average adjusted gross income' 
     means the average adjusted gross income of an individual or 
     entity for each of the 3 preceding taxable years.
       ``(B) Effective adjusted gross income.--In the case of an 
     individual or entity that does not have an adjusted gross 
     income for each of the 3 preceding taxable years, the 
     Secretary shall establish rules that provide the individual 
     or entity with an effective adjusted gross income for the 
     applicable year.
       ``(b) Limitation.--Notwithstanding any other provision of 
     title I of the Federal Agriculture Improvement and Reform Act 
     of 1996 (7 U.S.C. 7201 et seq.), an individual or entity 
     shall not be eligible for a payment or benefit described in 
     subsection (b) or (c) of section 1001 if the average adjusted 
     gross income of the individual or entity exceeds $2,500,000.
       ``(c) Certification.--To comply with the limitation under 
     subsection (b), an individual or entity shall provide to the 
     Secretary--
       ``(1) a certification by a certified public accountant or 
     another third party that is acceptable to the Secretary that 
     the average adjusted gross income of the individual or entity 
     does not exceed $2,500,000; or
       ``(2) information and documentation regarding the adjusted 
     gross income of the individual or entity through other 
     procedures established by the Secretary.
       ``(d) Commensurate Reduction.--In the case of a payment or 
     benefit made in a fiscal year or corresponding crop year to 
     an entity that has an average adjusted gross income of 
     $2,500,000 or less, the payment shall be reduced by an amount 
     that is commensurate with the direct and indirect ownership 
     interest in the entity of each individual who has an average 
     adjusted gross income in excess of $2,500,000 for that fiscal 
     year or corresponding crop year.
       ``(e) General Partnerships and Joint Ventures.--For 
     purposes of this section, a joint partnership or joint 
     venture shall be considered an entity.''.
       (c) Food Stamp Program.--
       (1) Increase in benefits to households with children.--
     Section 5(e) of the Food

[[Page 848]]

     Stamp Act of 1977 (7 U.S.C. 2014(e)) is amended by striking 
     paragraph (1) and inserting the following:
       ``(1) Standard deduction.--
       ``(A) In general.--Subject to the other provisions of this 
     paragraph, the Secretary shall allow for each household a 
     standard deduction that is equal to the greater of--
       ``(i) the applicable percentage specified in subparagraph 
     (D) of the applicable income standard of eligibility 
     established under subsection (c)(1); or
       ``(ii) the minimum deduction specified in subparagraph (E).
       ``(B) Guam.--The Secretary shall allow for each household 
     in Guam a standard deduction that is--
       ``(i) equal to the applicable percentage specified in 
     subparagraph (D) of twice the income standard of eligibility 
     established under subsection (c)(1) for the 48 contiguous 
     States and the District of Columbia; but
       ``(ii) not less than the minimum deduction for Guam 
     specified in subparagraph (E).
       ``(C) Households of 6 or more members.--The income standard 
     of eligibility established under subsection (c)(1) for a 
     household of 6 members shall be used to calculate the 
     standard deduction for each household of 6 or more members.
       ``(D) Applicable percentage.--For the purpose of 
     subparagraph (A), the applicable percentage shall be--
       ``(i) 8 percent for each of fiscal years 2002 through 2004;
       ``(ii) 8.25 percent for each of fiscal years 2005 and 2006;
       ``(iii) 8.5 percent for each of fiscal years 2007 and 2008;
       ``(iv) 8.75 percent for fiscal year 2009; and
       ``(v) 9 percent for each of fiscal years 2010 and 2011.
       ``(E) Minimum deduction.--The minimum deduction shall be 
     $134, $229, $189, $269, and $118 for the 48 contiguous States 
     and the District of Columbia, Alaska, Hawaii, Guam, and the 
     Virgin Islands of the United States, respectively.''.
       (2) Excess shelter expense deduction.--
       (A) In general.--Section 5(e)(7)(B) of the Food Stamp Act 
     of 1977 (7 U.S.C. 2014(e)(7)(B)) is amended--
       (i) in clause (v), by striking ``and'' at the end; and
       (ii) by striking clause (vi) and inserting the following:
       ``(vi) for fiscal year 2002, $354, $566, $477, $416, and 
     $279 per month, respectively;
       ``(vii) for fiscal year 2003, $390, $624, $526, $458, and 
     $307 per month, respectively; and
       ``(viii) for fiscal years 2004 and each fiscal year 
     thereafter, the applicable amount for the preceding fiscal 
     year, as adjusted to reflect changes for the 12-month period 
     ending the preceding November 30 in the Consumer Price Index 
     for All Urban Consumers published by the Bureau of Labor 
     Statistics of the Department of Labor.''.
       (B) Prospective amendments.--Effective October 1, 2009, 
     section 5(e)(7) of the Food Stamp Act of 1977 (7 U.S.C. 
     2014(e)(7)) is amended--
       (i) by striking subparagraph (B); and
       (ii) by redesignating subparagraph (C) as subparagraph (B).
       (3) Participant expenses.--Section 6(d)(4)(I)(i)(I) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
     amended by striking ``, except that the State agency may 
     limit such reimbursement to each participant to $25 per 
     month''.
       (4) Federal reimbursement.--Section 16(h)(3) of the Food 
     Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by 
     striking ``such total amount shall not exceed an amount 
     representing $25 per participant per month for costs of 
     transportation and other actual costs (other than dependent 
     care costs) and'' and inserting ``the amount of the 
     reimbursement for dependent care expenses shall not exceed''.
       (5) Effectiveness of certain provisions.--Section 413 and 
     subsections (c) and (d) of section 433, and the amendments 
     made by section 413 and subsections (c) and (d) of section 
     433, shall have no effect.
       (d) Loan Deficiency Payments.--
       (1) Eligibility.--Section 135 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7235) (as 
     amended by section __) 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 __) is amended by striking 
     ``A producer'' and inserting ``Effective for the 2001 through 
     2006 crops, a producer''.
       (e) Loan Authorization Levels.--Section 346(b) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1994(b)) (as amended by section __) is amended by striking 
     paragraph (1) and inserting the following:
       ``(1) In general.--The Secretary may make or guarantee 
     loans under subtitles A and B from the Agricultural Credit 
     Insurance Fund provided for in section 309 for not more than 
     $3,796,000,000 for each of fiscal years 2002 through 2006, of 
     which, for each fiscal year--
       ``(A) $770,000,000 shall be for direct loans, of which--
       ``(i) $205,000,000 shall be for farm ownership loans under 
     subtitle A; and
       ``(ii) $565,000,000 shall be for operating loans under 
     subtitle B; and
       ``(B) $3,026,000,000 shall be for guaranteed loans, of 
     which--
       ``(i) $1,000,000,000 shall be for guarantees of farm 
     ownership loans under subtitle A; and
       ``(ii) $2,026,000,000 shall be for guarantees of operating 
     loans under subtitle B.''.
       (f) Beginning Farmer and Rancher Development Program.--In 
     addition to funds made available under the Agriculture, Rural 
     Development, Food and Drug Administration, and Related 
     Agencies Appropriations Act, 2002 (Public Law 107-76), the 
     Secretary of Agriculture shall use $5,000,000 of funds of the 
     Commodity Credit Corporation for fiscal year 2002 to make 
     loans described in section 346(b)(2)(A)(i) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1994(b)(2)(A)(i)).
       (g) Initiative for Future Agriculture and Food Systems.--
     Section 401(b)(1) of the Agricultural Research, Extension, 
     and Education Reform Act of 1998 (7 U.S.C. 7621(b)(1)) (as 
     amended by section __) is amended--
       (1) in subparagraph (A), by striking ``$120,000,000'' and 
     inserting ``$130,000,000''; and
       (2) in subparagraph (B), by striking ``$145,000,000'' and 
     inserting ``$225,000,000''.
       (h) Specialty Crop Insurance Initiative.--
       (1) Research and development funding.--Section 522(e) of 
     the Federal Crop Insurance Act (7 U.S.C. 1522(e)) is amended 
     by striking paragraph (1) and inserting the following:
       ``(1) Reimbursements.--Of the amounts made available from 
     the insurance fund established under section 516(c), the 
     Corporation may use to provide reimbursements under 
     subsection (b) not more than--
       ``(A) $32,000,000 for fiscal year 2002;
       ``(B) $27,500,000 for each of fiscal years 2003 and 2004;
       ``(C) $25,000,000 for each of fiscal years 2005 and 2006; 
     and
       ``(D) $15,000,000 for fiscal year 2007 and each subsequent 
     fiscal year.''.
       (2) Education and information funding.--Section 524(a)(4) 
     of the Federal Crop Insurance Act (7 U.S.C. 1524(a)(4)) is 
     amended by striking subparagraph (A) and inserting the 
     following:
       ``(A) for the education and information program established 
     under paragraph (2)--
       ``(i) $10,000,000 for fiscal year 2003;
       ``(ii) $13,000,000 for fiscal year 2004;
       ``(iii) $15,000,000 for each of fiscal years 2005 and 2006; 
     and
       ``(iv) $5,000,000 for fiscal year 2007 and each subsequent 
     fiscal year; and''.
       (3) Reports.--Not later than September 30, 2002, the 
     Secretary of Agriculture shall submit to the Committee on 
     Agriculture of the House of Representatives and the Committee 
     on Agriculture, Nutrition, and Forestry of the Senate a 
     report that describes--
       (A) the progress made by the Corporation in research and 
     development of innovative risk management products to include 
     cost of production insurance that provides coverage for 
     specialty crops, paying special attention to apples, 
     asparagus, blueberries (wild and domestic), cabbage, canola, 
     carrots, cherries, Christmas trees, citrus fruits, cucumbers, 
     dry beans, eggplants, floriculture, grapes, greenhouse and 
     nursery agricultural commodities, green peas, green peppers, 
     hay, lettuce, maple, mushrooms, pears, potatoes, pumpkins, 
     snap beans, spinach, squash, strawberries, sugar beets, and 
     tomatoes;
       (B) the progress made by the Corporation in increasing the 
     use of risk management products offered through the 
     Corporation by producers of specialty crops, by small and 
     moderate sized farms, and in areas that are underserved, as 
     determined by the Secretary; and
       (C) how the additional funding provided under the 
     amendments made by this section has been used.
       (i) Effective Date.--This section and the amendments made 
     by this section take effect 1 day after the date of enactment 
     of this Act.
                                  ____

  SA 2827. Mr. LUGAR 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:

       Strike title I and insert the following:

                      TITLE I--COMMODITY PROGRAMS

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Equity in Farming Act''.

[[Page 849]]



         Subtitle A--Equity Payments to Agricultural Producers

     SEC. 111. DEFINITIONS.

       In this subtitle:
       (1) Adjusted gross revenue.--The term ``adjusted gross 
     revenue'' means the adjusted gross income for all 
     agricultural enterprises of a producer in an applicable year, 
     excluding revenue earned from nonagricultural sources, as 
     determined by the Secretary--
       (A) by taking into account gross receipts from the sale of 
     crops and livestock on all agricultural enterprises of the 
     producer, including insurance indemnities resulting from 
     losses in the agricultural enterprises;
       (B) by including all farm payments paid by the Secretary 
     for all agricultural enterprises of the producer, including 
     any marketing loan gains described in section 1001(3)(A) of 
     the Food Security Act of 1985 (7 U.S.C. 1308(3)(A)); and
       (C) by deducting the cost or basis of livestock or other 
     items purchased for resale, such as feeder livestock, on all 
     agricultural enterprises of the producer.
       (2) Agricultural commodity.--
       (A) In general.--The term ``agricultural commodity'' means 
     any agricultural commodity, food, feed, fiber, or livestock.
       (B) Tobacco.--The term ``agricultural commodity'' does not 
     include tobacco.
       (3) Agricultural enterprise.--The term ``agricultural 
     enterprise'' means the production and marketing of all 
     agricultural commodities (including livestock) on a farm or 
     ranch.
       (4) Applicable year.--The term ``applicable year'' means 
     the year during which the producer elects to receive an 
     equity payment under section 112.
       (5) Average adjusted gross revenue.--The term ``average 
     adjusted gross revenue'' means--
       (A) the average of the adjusted gross revenue of a producer 
     for each of the preceding 5 taxable years, as determined by 
     the Secretary through--
       (i) a certification provided by a certified public 
     accountant or another third party that is acceptable to the 
     Secretary; or
       (ii) information and documentation regarding the adjusted 
     gross income revenue of the producer through other procedures 
     established by the Secretary; and
       (B) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, the estimated adjusted 
     gross revenue of the producer that will be earned from all 
     agricultural enterprises for the applicable year, as 
     determined by the Secretary.
       (6) Entity.--
       (A) In general.--The term ``entity'' means--
       (i) a corporation, joint stock company, association, 
     limited partnership, charitable organization, a grantor of a 
     revocable trust, or other similar entity (as determined by 
     the Secretary); and
       (ii) an entity that is participating in a farming operation 
     as a partner in a general partnership or as a participant in 
     a joint venture.
       (B) Exclusion.--The term ``entity'' does not include an 
     entity that is a general partnership or joint venture.
       (7) Individual.--The term `individual' means--
       (A) a natural person, and minor children of the natural 
     person (as determined by the Secretary); and
       (B) an individual participating in a farming operation as a 
     partner in a general partnership, a participant in a joint 
     venture, a grantor of a revocable trust, or a participant in 
     a similar entity (as determined by the Secretary).
       (8) Producer.--The term ``producer'' means an individual or 
     entity, as determined by the Secretary for an applicable 
     year, that--
       (A) shares in the risk of producing, or provides a material 
     contribution in producing, an agricultural commodity for the 
     applicable year;
       (B) has a substantial beneficial interest in the 
     agricultural enterprise in which the agricultural commodity 
     is produced;
       (C) has a share of the profits or losses from the farming 
     operation that is commensurate with the contributions of the 
     individual or entity to the operation; and
       (D)(i) has earned at least $20,000 in average adjusted 
     gross revenue for each of the preceding 5 taxable years; or
       (ii) in the case of a beginning farmer or rancher or other 
     producer that does not have adjusted gross revenue for each 
     of the preceding 5 taxable years, has at least $20,000 in 
     estimated adjusted gross revenue from all agricultural 
     enterprises for the applicable year, as determined by the 
     Secretary.
       (9) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.

     SEC. 112. EQUITY PAYMENTS TO AGRICULTURAL PRODUCERS.

       (a) In General.--Each producer of an agricultural commodity 
     (as determined by the Secretary) shall receive a payment that 
     equals $7,000 for each of the 2003 through 2006 crops or, in 
     the case of milk, the 2003 through 2006 calendar years.
       (b) Additional Payments.--Equity payments received by a 
     producer under this section shall be in addition to any price 
     support loan, marketing loan gain, or loan deficiency payment 
     that the producer receives for the applicable year.
       (c) Ineligible Entities.--An entity shall be ineligible to 
     receive an equity payment under this section if the entity 
     is--
       (1) an agency of the Federal Government, a State, or a 
     political subdivision of a State;
       (2) an issuer of any type of security on a national 
     securities exchange (as those terms are defined in section 3 
     of the Securities Exchange Act of 1934 (15 U.S.C. 78c)); or
       (3) another entity, as determined by the Secretary.
       (d) Verification.--The Secretary shall determine which 
     individuals or entities are eligible for an equity payment 
     under this section by using social security numbers or 
     taxpayer identification numbers.
       (e) Payment Limitation.--
       (1) In general.--Section 1001 of the Food Security Act of 
     1985 (7 U.S.C. 1308) is amended by striking paragraph (1) and 
     inserting the following:
       ``(1) Equity payments.--
       ``(A) In general.--An individual or entity (as defined in 
     the Equity in Farming Act) may not receive directly or 
     indirectly more than $7,000 in equity payments under that 
     Act.
       ``(B) Administration.--Sections 1001A(b), 1001B, and 1001C 
     shall apply to an individual or entity that receives a 
     payment described in subparagraph (A).''.
       (2) Conforming amendments.--
       (A) Section 1001 of the Food Security Act of 1985 (7 U.S.C. 
     1308) is amended--
       (i) by striking paragraph (4) and inserting the following:
       ``(4) Payments to individuals and entities.--
       ``(A) Interests within the same entity.--All individuals or 
     entities that are owners of an entity, including 
     shareholders, may not collectively receive payments directly 
     or indirectly that are attributable to the ownership 
     interests in such entity for a fiscal or corresponding crop 
     year that exceed the limitation established under paragraph 
     (1).
       ``(B) All interests of an individual or entity.--An 
     individual or entity may not receive, directly or indirectly, 
     through all ownership interests of the individual or entity 
     from all sources, payments for a fiscal or corresponding crop 
     year that exceed the limitations established under paragraph 
     (1).'';
       (ii) in paragraph (5)--

       (I) by striking subparagraphs (A), (B), (C), and (E); and
       (II) in subparagraph (D), by striking ``(D)'';

       (iii) by striking paragraph (6); and
       (iv) by redesignating paragraph (7) as paragraph (6).
       (B) Section 1009 of the Food Security Act of 1985 (7 U.S.C. 
     1308a) is amended--
       (i) in subsection (a), by striking ``subsection (c), (d), 
     or (e)'' and inserting ``subsection (c) or (d)'';
       (ii) by striking subsection (d); and
       (iii) by redesignating subsections (e) and (f) as 
     subsections (d) and (e), respectively.
       (g) Crop and Calendar Years.--This section and the 
     amendments made by this section apply to each of the 2003 
     through 2006 crop or calendar years, as applicable.

              Subtitle B--Phase Out of Commodity Programs

     SEC. 121. PROHIBITION ON AGRICULTURAL PRICE SUPPORT AND 
                   PRODUCTION ADJUSTMENT.

       (a) In General.--Notwithstanding any other provision of 
     law, except as otherwise provided in this subtitle and 
     effective beginning with the 2003 crop or the 2003 marketing, 
     fiscal, or calendar year (as applicable) for each 
     agricultural commodity, the Secretary of Agriculture and the 
     Commodity Credit Corporation may not provide loans, 
     purchases, payments, or other operations or take any other 
     action to support the price, or adjust or control the 
     production, of an agricultural commodity by using the funds, 
     facilities, and authorities of the Commodity Credit 
     Corporation or under the authority of any law.
       (b) Exceptions.--Subsection (a) shall not apply to--
       (1) any activities under the Agricultural Adjustment Act (7 
     U.S.C. 601 et seq.), reenacted with amendments by the 
     Agricultural Marketing Act of 1937;
       (2) section 32 of the Act of August 24, 1935 (7 U.S.C. 
     612c; 49 Stat. 774, chapter 641);
       (3) part I of subtitle B of title III of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1311 et seq.); and
       (4) sections 106, 106A, and 106B of the Agricultural Act of 
     1949 (7 U.S.C. 1445, 1445-1, 1445-2).

     SEC. 122. AGRICULTURAL MARKET TRANSITION ACT.

       (a) Repeals.--
       (1) 2003 and subsequent crops.--Effective beginning with 
     the 2003 crop, the Agricultural Market Transition Act (7 
     U.S.C. 7201 et seq.) is repealed, other than the following:
       (A) Subtitle A (7 U.S.C. 7201 et seq.).
       (B) Sections 131, 132, and 133 (7 U.S.C. 7231, 7232, 7233).
       (C) Subsections (a) through (d) of section 134 (7 U.S.C. 
     7234).
       (D) Section 135 (7 U.S.C. 7235).
       (E) Sections 141 and 142 (7 U.S.C. 7251, 7252).
       (F) Chapter 2 of subtitle D (7 U.S.C. 7271 et seq.).
       (G) Sections 161 through 165 (7 U.S.C. 7281 et seq.).

[[Page 850]]

       (H) Subtitle H (7 U.S.C. 7331 et seq.).
       (2) 2003 and subsequent calendar years.--Effective January 
     1, 2003, sections 141 and 142 of the Agricultural Market 
     Transition Act (7 U.S.C. 7251, 7252) are repealed.
       (3) 2006 and subsequent crops.--Effective beginning with 
     the 2006 crop, the following provisions of the Agricultural 
     Market Transition Act (7 U.S.C. 7231 et seq.) are repealed:
       (A) Subtitle C (7 U.S.C. 7231 et seq.).
       (B) Chapter 2 of subtitle D (7 U.S.C. 7271 et seq.), other 
     than section 156(f) (7 U.S.C. 7272(f)).
       (b) Availability of Nonrecourse Marketing Assistance 
     Loans.--Section 131 of the Agricultural Market Transition Act 
     (7 U.S.C. 7231) is amended --
       (1) in subsection (a) by striking ``2002'' and inserting 
     ``2005''; and
       (2) by striking subsection (b) and inserting the following:
       ``(b) Eligible Production.--The producers on a farm shall 
     be eligible for a marketing assistance loan under subsection 
     (a) for any quantity of a loan commodity produced on the 
     farm.''.
       (c) Loan Rates for Marketing Assistance Loans.--Section 132 
     of the Agricultural Market Transition Act (7 U.S.C. 7232) is 
     amended to read as follows:

     ``SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

       ``(a) Wheat.--The loan rate for a marketing assistance loan 
     under section 131 for wheat shall be 90 percent for the 2003 
     crop, 85 percent for the 2004 crop, and 80 percent for the 
     2005 crop, of the simple average price received by producers 
     of wheat, as determined by the Secretary, during the 
     marketing years for the immediately preceding 5 crops of 
     wheat, excluding the year in which the average price was the 
     highest and the year in which the average price was the 
     lowest in the period.
       ``(b) Feed Grains.--
       ``(1) Corn.--The loan rate for a marketing assistance loan 
     under section 131 for corn shall be 90 percent for the 2003 
     crop, 85 percent for the 2004 crop, and 80 percent for the 
     2005 crop, of the simple average price received by producers 
     of corn, as determined by the Secretary, during the marketing 
     years for the immediately preceding 5 crops of corn, 
     excluding the year in which the average price was the highest 
     and the year in which the average price was the lowest in the 
     period.
       ``(2) Other feed grains.--The loan rate for a marketing 
     assistance loan under section 131 for grain sorghum, barley, 
     and oats, respectively, shall be established at such level as 
     the Secretary determines is fair and reasonable in relation 
     to the rate that loans are made available for corn, taking 
     into consideration the feeding value of the commodity in 
     relation to corn.
       ``(c) Upland Cotton.--The loan rate for a marketing 
     assistance loan under section 131 for upland cotton shall be 
     90 percent for the 2003 crop, 85 percent for the 2004 crop, 
     and 80 percent for the 2005 crop, of the simple average price 
     received by producers of upland cotton, as determined by the 
     Secretary, during the marketing years for the immediately 
     preceding 5 crops of upland cotton, 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.
       ``(d) Extra Long Staple Cotton.--The loan rate for a 
     marketing assistance loan under section 131 for extra long 
     staple cotton shall be 90 percent for the 2003 crop, 85 
     percent for the 2004 crop, and 80 percent for the 2005 crop, 
     of the simple average price received by producers of extra 
     long staple cotton, as determined by the Secretary, during 
     the marketing years for the immediately preceding 5 crops of 
     extra long staple cotton, 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.
       ``(e) Rice.--The loan rate for a marketing assistance loan 
     under section 131 for rice shall be 90 percent for the 2003 
     crop, 85 percent for the 2004 crop, and 80 percent for the 
     2005 crop, of the simple average price received by producers 
     of rice, as determined by the Secretary, during the marketing 
     years for the immediately preceding 5 crops of rice, 
     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.
       ``(f) Oilseeds.--
       ``(1) Soybeans.--The loan rate for a marketing assistance 
     loan under section 131 for soybeans shall be 90 percent for 
     the 2003 crop, 85 percent for the 2004 crop, and 80 percent 
     for the 2005 crop, of the simple average price received by 
     producers of soybeans, as determined by the Secretary, during 
     the marketing years for the immediately preceding 5 crops of 
     soybeans, excluding the year in which the average price was 
     the highest and the year in which the average price was the 
     lowest in the period.
       ``(2) Sunflower seed, canola, rapeseed, safflower, mustard 
     seed, and flaxseed.--The loan rate for a marketing assistance 
     loan under section 131 for sunflower seed, canola, rapeseed, 
     safflower, mustard seed, and flaxseed, individually, shall be 
     90 percent for the 2003 crop, 85 percent for the 2004 crop, 
     and 80 percent for the 2005 crop, of the simple average price 
     received by producers of sunflower seed, individually, as 
     determined by the Secretary, during the marketing years for 
     the immediately preceding 5 crops of sunflower seed, 
     individually, excluding the year in which the average price 
     was the highest and the year in which the average price was 
     the lowest in the period.
       ``(3) Other oilseeds.--The loan rates for a marketing 
     assistance loan under section 131 for other oilseeds shall be 
     established at such level as the Secretary determines is fair 
     and reasonable in relation to the loan rate available for 
     soybeans, except in no event shall the rate for the oilseeds 
     (other than cottonseed) be less than the rate established for 
     soybeans on a per-pound basis for the same crop.''.
       (d) Recourse Loan Program for Silage.--Section 403 of the 
     Food Security Act of 1985 (7 U.S.C. 1444e-1) is repealed.
       (e) Peanut Program.--Section 155 of the Agricultural Market 
     Transition Act (7 U.S.C. 7271) is amended--
       (1) in subsection (g), by striking ``2002'' each place it 
     appears and inserting ``2005''; and
       (2) by striking subsections (h) and (i) and inserting the 
     following:
       ``(h) Phased Reduction of Loan Rate.--For each of the 2003, 
     2004, and 2005 crops of quota and additional peanuts, the 
     Secretary shall lower the loan rate for each succeeding crop 
     in a manner that progressively and uniformly lowers the loan 
     rate for quota and additional peanuts to $0 for the 2006 
     crop.
       ``(i) Crops.--This section shall be effective only for the 
     1996 through 2005 crops.''.
       (f) Sugar Program.--Section 156 of the Agricultural Market 
     Transition Act (7 U.S.C. 7272) is amended--
       (1) in subsection (e), by striking paragraph (1) and 
     inserting the following:
       ``(1) Loans.--The Secretary shall carry out this section 
     through the use of recourse loans.'';
       (2) in subsection (f), by striking ``2003'' each place it 
     appears and inserting ``2005'';
       (3) by redesignating subsection (i) as subsection (j);
       (4) by inserting after subsection (h) the following:
       ``(i) Phased Reduction of Loan Rate.--For each of the 2003, 
     2004, and 2005 crops of sugar beets and sugarcane, the 
     Secretary shall lower the loan rate for each succeeding crop 
     in a manner that progressively and uniformly lowers the loan 
     rate for sugar beets and sugarcane to $0 for the 2006 
     crop.''; and
       (5) in subsection (j) (as redesignated), by striking 
     ``2002'' and inserting ``2005''.

     SEC. 123. AGRICULTURAL ADJUSTMENT ACT OF 1938.

       (a) Repeals.--
       (1) 2003 and subsequent marketing years and crops.--
     Effective beginning with the 2003 marketing or crop year (as 
     applicable), the Agricultural Adjustment Act of 1938 (7 
     U.S.C. 1281 et seq.) is repealed, other than the following:
       (A) The first section (7 U.S.C. 1281).
       (B) Section 301 (7 U.S.C. 1301).
       (C) Part I of subtitle B of title III (7 U.S.C. 1311 et 
     seq.).
       (D) Part VI of subtitle B of title III (7 U.S.C. 1357 et 
     seq.).
       (E) Subtitle C of title III (7 U.S.C. 1361 et seq.).
       (F) Subtitle F of title III (7 U.S.C. 1381 et seq.).
       (G) Title V (7 U.S.C. 1501 et seq.).
       (2) 2006 and subsequent marketing years and crops.--
     Effective beginning with the 2006 marketing year or crop year 
     (as applicable), part VI of subtitle B of title III (7 U.S.C. 
     1357 et seq.) is repealed.
       (b) Peanut Quota.--
       (1) Extension.--Sections 358-1, 358b(c), 358c(d), and 
     358e(i) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
     1358-1, 1358b(c), 1358c(d), 1359a(i)) are amended by striking 
     ``2002'' each place it appears and inserting ``2005''.
       (2) Peanut quota.--Part VI of subtitle B of title III of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 358F. PHASED INCREASE IN QUOTA.

       ``For each of the 2003, 2004, and 2005 crops of quota 
     peanuts, the Secretary shall increase the marketing quota and 
     allotment for each succeeding marketing year in a manner that 
     progressively and uniformly increases the marketing quota to 
     anticipate the elimination of the marketing quota for the 
     2006 crop.''.

     SEC. 124. COMMODITY CREDIT CORPORATION CHARTER ACT.

       (a) In General.--Section 5 of the Commodity Credit 
     Corporation Charter Act (15 U.S.C. 714c) is amended--
       (1) by striking subsection (a); and
       (2) by redesignating subsections (b) through (g) as 
     subsections (a) through (f), respectively.
       (b) Conforming Amendment.--Section 619 of the Agricultural 
     Trade Development and Assistance Act of 1954 (7 U.S.C. 1738r) 
     is amended by striking ``section 5(f) of the Commodity Credit 
     Corporation Charter Act'' and inserting ``section 5(e) of the 
     Commodity Credit Corporation Charter Act (15 U.S.C. 
     714c(e))''.
       (c) Crops.--The amendments made by this section apply 
     beginning with the 2006 crop.

     SEC. 125. AGRICULTURAL ACT OF 1949.

       The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) is 
     repealed, other than the following:

[[Page 851]]

       (1) The first section (7 U.S.C. 1421 note).
       (2) Sections 106, 106A, and 106B (7 U.S.C. 1445, 1445-1, 
     1445-2).
       (3) Section 416 (7 U.S.C. 1431).

     SEC. 126. AGRICULTURAL ADJUSTMENT ACT.

       Effective January 1, 2003, section 8c(5) of the 
     Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted 
     with amendments by the Agricultural Marketing Agreement Act 
     of 1937, is amended by adding at the end the following:
       ``(M) Milk classes.--
       ``(i) In general.--Notwithstanding any other provision of 
     this subsection, the Secretary shall establish--

       ``(I) 1 class of milk for fluid milk; and
       ``(II) 1 class of milk for other uses of milk.

       ``(ii) Component prices.--The classes of milk established 
     under clause (i) shall be used to determine the prices of 
     milk components.''.

     SEC. 127. CROP.

       This subtitle and the amendments made by this subtitle 
     apply beginning with the 2003 crop of each agricultural 
     commodity or the 2003 marketing, reinsurance, fiscal, or 
     calendar year, as applicable.

                       Subtitle C--Effective Date

     SEC. 141. EFFECT OF TITLE.

       (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 an agricultural market transition, price support, or 
     production adjustment program for any of the 1996 through 
     2002 crops, or for any of the 1996 through 2002 marketing, 
     reinsurance, fiscal, or calendar years, as applicable, under 
     a provision of law in effect immediately before the enactment 
     of this title.
       (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 enactment of this title.
                                  ____

  SA 2828. Mr. HUTCHINSON submitted an amendment intended to be 
proposed to amendment SA 2471 submitted by Mr. Daschle and intended to 
be proposed to the bill (S. 1731) to strengthen the safety net for 
agricultural producers, to enhance resource conservation and rural 
development, to provide the 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, add the following:

     SEC.   . PERMANENT REENACTMENT OF CHAPTER 12.

       (a) Reenactment.--
       (1) In general.--Chapter 12 of title 11, United States 
     Code, as reenacted by section 149 of division C of the 
     Omnibus Consolidated and Emergency Supplemental 
     Appropriations Act, 1999 (Public Law 105-277, 112 Stat. 2681-
     610), is reenacted.
       (2) Effective date.--Subsection (a) shall deemed to have 
     taken effect on October 1, 2000.
       (b) Conforming Amendment.--Section 302 of the Bankruptcy, 
     Judges, United States Trustees, and Family Farmer Bankruptcy 
     Act of 1986 (28 U.S.C. 581 note) is amended by striking 
     subsection (f).''.
                                  ____

  SA 2829. Mrs. FEINSTEIN 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 the 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 143 and insert a 
     period and the following:

     SEC. 144. REALLOCATION OF SUGAR QUOTA.

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

        ``PART VIII--REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS

     ``SEC. 360. REALLOCATING CERTAIN SUGAR QUOTAS.

       ``(a) In General.--Notwithstanding any other provision of 
     law, not later than June 1 of each year, the United States 
     Trade Representative, in consultation with the Secretary, 
     shall determine the amount of the quota of cane sugar used by 
     each qualified supplying country for that fiscal year, and 
     shall reallocate the unused quota for that fiscal year among 
     qualified supplying countries on a first come basis.
       ``(b) Method for Allocating Quota.--In establishing the 
     tariff-rate quota for a fiscal year, the Secretary shall 
     consider the amount of the preceding year's quota that was 
     not used and shall increase the tariff-rate quota allowed by 
     an amount equal to the amount not used in the preceding year.
       ``(c) Definitions.--In this section:
       ``(1) Qualified supplying country.--The term `qualified 
     supplying country' means one of the following 40 foreign 
     countries that is allowed to export cane sugar to the United 
     States under an agreement or any other country with which the 
     United States has an agreement relating to the importation of 
     cane sugar:

      Argentina
      Australia
      Barbados
      Belize
      Bolivia
      Brazil
      Colombia
      Congo
      Costa Rica
      Dominican Republic
      Ecuador
      El Salvador
      Fiji
      Gabon
      Guatemala
      Guyana
      Haiti
      Honduras
      India
      Ivory Coast
      Jamaica
      Madagascar
      Malawi
      Mauritius
      Mexico
      Mozambique
      Nicaragua
      Panama
      Papua New Guinea
      Paraguay
      Peru
      Philippines
      St. Kitts and Nevis
      South Africa
      Swaziland
      Taiwan
      Thailand
      Trinidad-Tobago
      Uruguay
      Zimbabwe.

       ``(2) Cane sugar.--The term `cane sugar' has the same 
     meaning as the term has under part VII.''.
                                  ____

  SA 2830. Mrs. CARNAHAN (for herself, Mr. Hutchinson, Mr. Harkin, Mr. 
Leahy, and Mr. Johnson) 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:

       At the appropriate place, insert the following:

     SEC.  . REENACTMENT OF FAMILY FARMER BANKRUPTCY PROVISIONS.

       (a) Reenactment.--Notwithstanding any other provision of 
     law, chapter 12 of title 11, United States Code, is hereby 
     reenacted.
       (b) Conforming Repeal.--Section 303(f) of Public Law 99-554 
     (100 Stat. 3124) is repealed.
       (c) Effective Date.--This section shall be deemed to have 
     taken effect on October 1, 2001.
                                  ____

  SA 2831. Mr. GREGG submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

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

     SEC. 1__. TERMINATION OF TOBACCO PRICE SUPPORT PROGRAM.

       (a) Parity Price Support.--Section 101 of the Agricultural 
     Act of 1949 (7 U.S.C. 1441) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``tobacco (except as otherwise provided herein), corn,'' and 
     inserting ``corn'';
       (2) by striking subsections (c), (g), (h), and (i);
       (3) in subsection (d)(3)--
       (A) by striking ``, except tobacco,''; and
       (B) by striking ``and no price support shall be made 
     available for any crop of tobacco for which marketing quotas 
     have been disapproved by producers;''; and
       (4) by redesignating subsections (d) and (e) as subsections 
     (c) and (d), respectively.
       (b) Termination of Tobacco Price Support and No Net Cost 
     Provisions.--Sections 106, 106A, and 106B of the Agricultural 
     Act of 1949 (7 U.S.C. 1445, 1445-1, 1445-2) are repealed.

[[Page 852]]

       (c) Definition of Basic Agricultural Commodity.--Section 
     408(c) of the Agricultural Act of 1949 (7 U.S.C. 1428(c)) is 
     amended by striking ``tobacco,''.
       (d) Review of Burley Tobacco Imports.--Section 3 of Public 
     Law 98-59 (7 U.S.C. 625) is repealed.
       (e) Powers of Commodity Credit Corporation.--Section 5 of 
     the Commodity Credit Corporation Charter Act (15 U.S.C. 714c) 
     is amended by inserting ``(other than tobacco)'' after 
     ``agricultural commodities'' each place it appears.
       (f) Transition Provisions.--
       (1) Liability.--The amendments made by this section shall 
     not affect the liability of any person under any provision of 
     law as in effect before the effective date of this section.
       (2) Tobacco stocks and loans.--The Secretary shall issue 
     regulations that require--
       (A) the orderly disposition of tobacco stocks; and
       (B) the repayment of all tobacco price support loans by not 
     later than 1 year after the effective date of this section.
       (g) Crops.--This section and the amendments made by this 
     section shall apply with respect to the 2002 and subsequent 
     crops of the kind of tobacco involved.

     SEC. 1__. TERMINATION OF TOBACCO PRODUCTION ADJUSTMENT 
                   PROGRAMS.

       (a) Declaration of Policy.--Section 2 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1282) is amended by striking 
     ``tobacco,''.
       (b) Definitions.--Section 301(b) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1301(b)) is amended--
       (1) in paragraph (3)--
       (A) by striking subparagraph (C); and
       (B) by redesignating subparagraph (D) as subparagraph (C);
       (2) in paragraph (6)(A), by striking ``tobacco,'';
       (3) in paragraph (7), by striking the following:
       ``tobacco (flue-cured), July 1--June 30;
       ``tobacco (other than flue-cured), October 1-September 
     30;'';
       (4) in paragraph (10)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B);
       (5) in paragraph (11)(B), by striking ``and tobacco'';
       (6) in paragraph (12), by striking ``tobacco,'';
       (7) in paragraph (14)--
       (A) in subparagraph (A), by striking ``(A)''; and
       (B) by striking subparagraphs (B), (C), and (D);
       (8) by striking paragraph (15);
       (9) in paragraph (16)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (10) by redesignating paragraphs (16) and (17) as 
     paragraphs (15) and (16), respectively.
       (c) Parity Payments.--Section 303 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1303) is amended in the 
     first sentence by striking ``rice, or tobacco,'' and 
     inserting ``or rice,''.
       (d) Marketing Quotas.--Part I of subtitle B of title III of 
     the Agricultural Adjustment Act of 1938 (7 U.S.C. 1311 et 
     seq.) is repealed.
       (e) Administrative Provisions.--Section 361 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
     amended by striking ``tobacco,''.
       (f) Adjustment of Quotas.--Section 371 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1371) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``peanuts, or tobacco'' and inserting ``or peanuts''; and
       (2) in the first sentence of subsection (b), by striking 
     ``peanuts or tobacco'' and inserting ``or peanuts''.
       (g) Reports and Records.--Section 373 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1373) is amended--
       (1) by striking ``peanuts, or tobacco'' each place it 
     appears in subsections (a) and (b) and inserting ``or 
     peanuts''; and
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``all persons 
     engaged in the business of redrying, prizing, or stemming 
     tobacco for producers,''; and
       (B) in the last sentence, by striking ``$500;'' and all 
     that follows through the period at the end of the sentence 
     and inserting ``$500.''.
       (h) Regulations.--Section 375(a) of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1375(a)) is amended by 
     striking ``peanuts, or tobacco'' and inserting ``or 
     peanuts''.
       (i) Eminent Domain.--Section 378 of the Agricultural 
     Adjustment Act of 1938 (7 U.S.C. 1378) is amended--
       (1) in the first sentence of subsection (c), by striking 
     ``cotton, tobacco, and peanuts'' and inserting ``cotton and 
     peanuts''; and
       (2) by striking subsections (d), (e), and (f).
       (j) Burley Tobacco Farm Reconstitution.--Section 379 of the 
     Agricultural Adjustment Act of 1938 (7 U.S.C. 1379) is 
     amended--
       (1) in subsection (a)--
       (A) by striking ``(a)''; and
       (B) in paragraph (6), by striking ``, but this clause (6) 
     shall not be applicable in the case of burley tobacco''; and
       (2) by striking subsections (b) and (c).
       (k) Acreage-Poundage Quotas.--Section 4 of the Act entitled 
     ``An Act to amend the Agricultural Adjustment Act of 1938, as 
     amended, to provide for acreage-poundage marketing quotas for 
     tobacco, to amend the tobacco price support provisions of the 
     Agricultural Act of 1949, as amended, and for other 
     purposes'', approved April 16, 1965 (Public Law 89-12; 7 
     U.S.C. 1314c note), is repealed.
       (l) Burley Tobacco Acreage Allotments.--The Act entitled 
     ``An Act relating to burley tobacco farm acreage allotments 
     under the Agricultural Adjustment Act of 1938, as amended'', 
     approved July 12, 1952 (7 U.S.C. 1315), is repealed.
       (m) Transfer of Allotments.--Section 703 of the Food and 
     Agriculture Act of 1965 (7 U.S.C. 1316) is repealed.
       (n) Advance Recourse Loans.--Section 13(a)(2)(B) of the 
     Food Security Improvements Act of 1986 (7 U.S.C. 1433c-
     1(a)(2)(B)) is amended by striking ``tobacco and''.
       (o) Tobacco Field Measurement.--Section 1112 of the Omnibus 
     Budget Reconciliation Act of 1987 (Public Law 100-203) is 
     amended by striking subsection (c).
       (p) Liability.--The amendments made by this section shall 
     not affect the liability of any person under any provision of 
     law as in effect before the effective date under subsection 
     (q).
       (q) Crops.--This section and the amendments made by this 
     section shall apply with respect to the 2002 and subsequent 
     crops of the kind of tobacco involved.

     SEC. 1__. PROHIBITION OF FEDERAL INSURANCE, REINSURANCE, OR 
                   NONINSURED CROP DISASTER ASSISTANCE FOR 
                   TOBACCO.

       (a) Crop Insurance.--
       (1) Definition of agricultural commodity.--Section 518 of 
     the Federal Crop Insurance Act (7 U.S.C. 1518) is amended--
       (A) by striking the section heading and all that follows 
     through ``as used in this title, means'' and inserting the 
     following:

     ``SEC. 518. DEFINITION OF AGRICULTURAL COMMODITY.

       ``(a) Definition.--In this title, the term `agricultural 
     commodity' means'';
       (B) by striking ``tobacco,''; and
       (C) by adding at the end the following:
       ``(b) Exception.--In this title, the term `agricultural 
     commodity' does not include tobacco. The Corporation may not 
     insure, provide reinsurance for insurers of, or pay any part 
     of the premium related to the coverage of a crop of 
     tobacco.''.
       (2) Conforming amendments.--Section 508(a)(2) of the 
     Federal Crop Insurance Act (7 U.S.C. 1508(a)(2)) is amended 
     in the first sentence by striking ``cases of tobacco and'' 
     and inserting ``case of''.
       (b) Noninsured Crop Disaster Assistance.--Section 196(a)(2) 
     of the Federal Agriculture Improvement and Reform Act of 1996 
     (7 U.S.C. 7333(a)(2)) is amended by adding at the end the 
     following:
       ``(D) Crops specifically excluded.--The term `eligible 
     crop' does not include tobacco. The Secretary may not make 
     assistance available under this section to cover losses to a 
     crop of tobacco.''.
       (c) Application of Amendments.--
       (1) In general.--Subject to paragraph (2), the amendments 
     made by this section shall apply with respect to the 2002 and 
     subsequent crops of tobacco.
       (2) Existing contracts.--The amendments made by this 
     section shall not apply to a contract of insurance of the 
     Federal Crop Insurance Corporation, or a contract of 
     insurance reinsured by the Corporation, in existence on the 
     date of enactment of this Act.
                                  ____

  SA 2832. Mr. MILLER (for himself and Mr. Cleland) submitted an 
amendment intended to be proposed to amendment SA 2471 submitted by Mr. 
Daschle and intended to be proposed to the bill (S. 1731) to strengthen 
the safety net for agricultural producers, to enhance resource 
conservation and rural development, to provide for farm credit, 
agricultural research, nutrition, and related programs, to ensure 
consumers abundant food and fiber, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 120, line 3, strike ``$0.10'' and insert ``$0.12''.
                                  ____

  SA 2833. Mr. BAUCUS submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

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

             Subtitle __--Emergency Agriculture Assistance

     SEC. __01. INCOME LOSS ASSISTANCE.

       (a) In General.--The Secretary of Agriculture (referred to 
     in this subtitle as the ``Secretary'') shall use 
     $1,800,000,000 of funds

[[Page 853]]

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

     SEC. __02. LIVESTOCK ASSISTANCE PROGRAM.

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

     SEC. __03. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.

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

     SEC. __04. COMMODITY CREDIT CORPORATION.

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

     SEC. __05. ADMINISTRATIVE EXPENSES.

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

     SEC. __06. REGULATIONS.

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

     SEC. __07. EMERGENCY REQUIREMENT.

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

  SA 2834. Mr. LEAHY submitted an amendment intended to be proposed to 
amendment SA 2471 submitted by Mr. Daschle and intended to be proposed 
to the bill (S. 1731) to strengthen the safety net for agricultural 
producers, to enhance resource conservation and rural development, to 
provide for farm credit, agricultural research, nutrition, and related 
programs, to ensure consumers abundant food and fiber, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 985, strike line 1 and insert the following:

                 Subtitle D--Organic Products Promotion

     SEC. 1081. SHORT TITLE.

       This subtitle may be cited as the ``Organic Products 
     Promotion, Research, and Information Act of 2002''.

     SEC. 1082. DEFINITIONS.

       In this subtitle:
       (1) Agricultural commodity.--The term ``agricultural 
     commodity'' means--
       (A) agricultural, horticultural, viticul-
     tural, and dairy products;
       (B) livestock and the products of livestock;
       (C) the products of poultry and bee raising;
       (D) the products of forestry;
       (E) other commodities raised or produced on farms, as 
     determined appropriate by the Secretary; and
       (F) products processed or manufactured from products 
     specified in the preceding subparagraphs, as determined 
     appropriate by the Secretary.
       (2) Board.--The term ``Board'' means the National Organic 
     Products Board established under section 1084(b).
       (3) Commodity promotion law.--The term ``commodity 
     promotion law'' has the meaning given the term in section 
     501(a) of the Federal Agriculture Improvement and Reform Act 
     of 1996 (7 U.S.C. 7401(a)).
       (4) Conflict of interest.--The term ``conflict of 
     interest'' means a situation in which a member or employee of 
     the Board has a direct or indirect financial interest in a 
     person that performs a service for, or enters into a contract 
     with, the Board for anything of economic value.
       (5) Department.--The term ``Department'' means the 
     Department of Agriculture.
       (6) First handler.--The term ``first handler'' means--
       (A) the first person that buys or takes possession of an 
     organic product from a producer for marketing; and
       (B) in a case in which a producer markets an organic 
     product directly to consumers, the producer.
       (7) Importer.--The term ``importer'' means any person that 
     imports an organic product from outside the United States for 
     sale in the United States as a principal or as an agent, 
     broker, or consignee of any person.
       (8) Information.--The term ``information'' means 
     information and programs that are designed to increase--
       (A) efficiency in processing; and
       (B) the development of new markets, marketing strategies, 
     increased marketing efficiency, and activities to enhance the 
     image of organic products on a national or international 
     basis.
       (9) Market.--The term ``market'' means to sell or to 
     otherwise dispose of an organic product in interstate, 
     foreign, or intrastate commerce.
       (10) Order.--The term ``order'' means the order issued by 
     the Secretary under section 1083 that provides for a program 
     of generic promotion, research, and information regarding 
     organic products designed to--
       (A) strengthen the position of organic products in the 
     marketplace;
       (B) maintain and expand existing domestic and foreign 
     markets and uses for organic products;
       (C) develop new markets and uses for organic products; or
       (D) assist producers in meeting conservation objectives.
       (11) Organically produced.--The term ``organically 
     produced'', with respect to an agricultural product, means 
     produced and handled in accordance with the Organic Foods 
     Production Act of 1990 (7 U.S.C. 6501 et seq.).
       (12) Organic product.--The term ``organic product'' means 
     an agricultural product that is organically produced.
       (13) Organic products industry.--The term ``organic 
     products industry'' includes nonprofit and other 
     organizations representing the interests of producers, first 
     handlers, and importers of organic products.
       (14) Person.--The term ``person'' means any individual, 
     group of individuals, partnership, corporation, association, 
     cooperative, or any other legal entity.
       (15) Producer.--The term ``producer'' means any person that 
     is engaged in the production and sale of an organic product 
     in the United States.
       (16) Promotion.--The term ``promotion'' means any action 
     taken by the Board under the order, including paid 
     advertising, to present a favorable image of organic products 
     to the public to improve the competitive position of organic 
     products in the marketplace and to stimulate sales of organic 
     products.
       (17) Research.--The term ``research'' means any type of 
     test, study, or analysis designed to advance the image, 
     desirability, use, marketability, production, product 
     development, or quality of an organic product.
       (18) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (19) State.--The term ``State'' means--
       (A) a State;
       (B) the District of Columbia;
       (C) the Commonwealth of Puerto Rico; and
       (D) any other territory or possession of the United States.
       (20) Suspend.--The term ``suspend'' means to issue a rule 
     under section 553 of title 5,

[[Page 854]]

     United States Code, to temporarily prevent the operation of 
     the order during a particular period of time specified in the 
     rule.
       (21) Terminate.--The term ``terminate'' means to issue a 
     rule under section 553 of title 5, United States Code, to 
     cancel permanently the operation of the order beginning on a 
     date certain specified in the rule.
       (22) United states.--The term ``United States'', when used 
     in a geographical sense, means all of the States.

     SEC. 1083. ISSUANCE OF ORDERS.

       (a) Order.--
       (1) In general.--To effectuate the purpose of this 
     subtitle, the Secretary may issue, and amend from time to 
     time, an order applicable to--
       (A) producers of organic products;
       (B) the first handlers of organic products (and other 
     persons in the marketing chain, as appropriate); and
       (C) the importers of organic products.
       (2) National scope.--The order shall be national in scope.
       (b) Procedure for Issuance.--
       (1) Development or receipt of proposed order.--A proposed 
     order with respect to organic products may be--
       (A) prepared by the Secretary at any time on or after 
     January 1, 2004; or
       (B) submitted to the Secretary on or after January 1, 2004 
     by--
       (i) an association of producers of organic products; or
       (ii) any other person that may be affected by the issuance 
     of the order with respect to organic products.
       (2) Consideration of proposed order.--If the Secretary 
     determines that a proposed order is consistent with and will 
     effectuate the purpose of this subtitle, the Secretary 
     shall--
       (A) publish the proposed order in the Federal Register; and
       (B) give due notice and opportunity for public comment on 
     the proposed order.
       (3) Preparation of final order.--After notice and 
     opportunity for public comment under paragraph (2) regarding 
     a proposed order, the Secretary shall--
       (A) take into consideration the comments received in 
     preparing a final order; and
       (B) ensure, to the maximum extent practicable, that the 
     final order is in conformity with the terms, conditions, and 
     requirements of this subtitle.
       (c) Issuance and Effective Date.--
       (1) In general.--Except as provided in paragraph (2), if 
     the Secretary determines that the order is consistent with 
     and will effectuate the purpose of this subtitle, the 
     Secretary shall issue the final order.
       (2) Exception.--Paragraph (1) shall not apply in a case in 
     which an initial referendum is conducted under section 
     1087(a).
       (3) Effective date.--The final order shall be issued and 
     shall take effect not later than 270 days after the date of 
     publication of the proposed order that was the basis for the 
     final order.

     SEC. 1084. REQUIRED TERMS IN ORDER.

       (a) In General.--The order shall contain the terms and 
     conditions specified in this section.
       (b) Board.--
       (1) Establishment.--The order shall establish a National 
     Organic Products Board to carry out a program of generic 
     promotion, research, and information relating to organic 
     products that effectuates the purposes of this subtitle.
       (2) Board membership.--
       (A) Number of members.--
       (i) In general.--The Board shall consist of the number of 
     members determined by the Secretary, in consultation with the 
     organic products industry.
       (ii) Alternate members.--In addition to the members 
     described in clause (i), the Secretary may appoint alternate 
     members of the Board.
       (B) Appointment.--
       (i) In general.--The Secretary shall appoint members of the 
     Board (including any alternate members) from among producers, 
     first handlers, and importers of organic products that elect 
     to pay the assessment described in section 1086, and others 
     in the marketing chain, as appropriate.
       (ii) Members of the public.--The Secretary may appoint 1 or 
     more members of the general public to the Board.
       (C) Nominations.--The Secretary may make appointments from 
     nominations made in accordance with the method described in 
     the order.
       (D) Geographical and industry representation.--To ensure 
     fair and equitable representation of organic producers and 
     others covered by the order, the composition of the Board 
     shall reflect--
       (i) the geographical distribution of the production of 
     organic products in the United States;
       (ii) the quantity or value of organic products covered by 
     the order imported into the United States; and
       (iii) the variations in the United States in the scale of 
     organic production operations.
       (3) Reapportionment of board membership.--In accordance 
     with rules issued by the Secretary, at least once in each 4-
     year period, the Board shall--
       (A) review the geographical distribution in the United 
     States of the production of organic products in, variations 
     in the scale of organic production operations in, and 
     quantity or value of organic products imported into, the 
     United States; and
       (B) as necessary, recommend to the Secretary the 
     reapportionment of the Board membership to reflect changes in 
     that geographical distribution of production, variations in 
     scale of organic production operations, or quantity or value 
     imported.
       (4) Notice.--
       (A) Vacancies.--The order shall provide for notice of Board 
     vacancies to the organic products industry.
       (B) Meetings.--
       (i) In general.--The Board shall provide prior notice of 
     meetings of the Board to--

       (I) the Secretary, to permit the Secretary, or a designated 
     representative of the Secretary, to attend the meetings; and
       (II) the public.

       (ii) Attendance.--A meeting of the Board shall be open to 
     the public.
       (5) Term of office.--
       (A) In general.--The members and any alternate members of 
     the Board shall each serve for a term of 3 years, except that 
     the members and any alternate members initially appointed to 
     the Board shall serve for terms of not more than 2, 3, and 4 
     years, as specified by the order.
       (B) Limitation on consecutive terms.--A member or alternate 
     member may serve not more than 2 consecutive terms.
       (C) Continuation of term.--Notwithstanding subparagraph 
     (B), each member or alternate member shall continue to serve 
     until a successor is appointed by the Secretary.
       (D) Vacancies.--A vacancy arising before the expiration of 
     a term of office of an incumbent member or alternate of the 
     Board shall be filled in a manner provided for in the order.
       (6) Compensation.--
       (A) In general.--Members and any alternate members of the 
     Board shall serve without compensation.
       (B) Travel expenses.--If approved by the Board, members or 
     alternate members shall be reimbursed for reasonable travel 
     expenses, which may include a per diem allowance or actual 
     subsistence incurred while away from their homes or regular 
     places of business in the performance of services for the 
     Board.
       (c) Powers and Duties of Board.--The order shall specify 
     the powers and duties of the Board established under the 
     order, including the power and duty--
       (1) to administer, and collect assessments under, the order 
     in accordance with the terms and conditions of the order;
       (2) to develop and recommend to the Secretary for 
     approval--
       (A) such bylaws as are necessary for the functioning of the 
     Board;
       (B) such rules as are necessary to administer the order; 
     and
       (C) such activities as are authorized to be carried out 
     under the order;
       (3) to meet, organize, and select from among the members of 
     the Board a chairperson, other officers, and committees and 
     subcommittees, as the Board determines to be appropriate;
       (4) to employ persons, other than the members, as the Board 
     considers necessary to assist the Board in carrying out the 
     duties of the Board (and to determine the compensation and 
     specify the duties of those persons);
       (5) subject to subsection (e), to develop and carry out 
     generic promotion, research, and information activities 
     relating to organic products;
       (6) to prepare and submit for the approval of the 
     Secretary, before the beginning of each fiscal year--
       (A) rates of assessment under section 1086; and
       (B) an annual budget of the anticipated expenses to be 
     incurred in the administration of the order, including the 
     probable cost of each promotion, research, and information 
     activity proposed to be developed or carried out by the 
     Board;
       (7) to borrow funds necessary for the startup expenses of 
     the order;
       (8) subject to subsection (f), to enter into contracts or 
     agreements to develop and carry out generic promotion, 
     research, and information activities relating to organic 
     products;
       (9) to pay the cost of the activities with--
       (A) assessments collected under section 1086;
       (B) earnings from invested assessments; and
       (C) other funds;
       (10)(A) to keep records that accurately reflect the actions 
     and transactions of the Board;
       (B) to keep and report minutes of each meeting of the Board 
     to the Secretary; and
       (C) to furnish the Secretary with any information or 
     records the Secretary requests;
       (11) to receive, investigate, and report to the Secretary 
     complaints of violations of the order; and
       (12) after providing public notice and an opportunity to 
     comment, to recommend to the Secretary such amendments to the 
     order as the Board considers appropriate.
       (d) Prohibited Activities.--The Board may not engage in, 
     and shall prohibit the employees and agents of the Board from 
     engaging in--
       (1) any action that would be a conflict of interest;

[[Page 855]]

       (2) using funds collected by the Board under the order, any 
     action carried out for the purpose of influencing any 
     legislation or governmental action or policy (other than 
     recommending to the Secretary amendments to the order); and
       (3) any advertising (including promotion, research, and 
     information activities authorized to be carried out under the 
     order) that may be false or misleading or disparaging to 
     another agricultural commodity.
       (e) Activities and Budgets.--
       (1) Activities.--The order shall require the Board 
     established under the order to submit to the Secretary for 
     approval plans and projects for promotion, research, or 
     information relating to organic products.
       (2) Budgets.--
       (A) Submission to secretary.--
       (i) In general.--The order shall require the Board 
     established under the order to submit to the Secretary for 
     approval a budget of the anticipated annual expenses and 
     disbursements of the Board to be paid to administer the 
     order.
       (ii) Submission.--The budget shall be submitted--

       (I) before the beginning of a fiscal year; and
       (II) as frequently as is necessary after the beginning of 
     the fiscal year.

       (B) Reimbursement of secretary.--The order shall require 
     that the Secretary be reimbursed for all expenses incurred by 
     the Secretary in the implementation, administration, and 
     supervision of the order.
       (3) Incurring expenses.--The Board may incur the expenses 
     described in paragraph (2) and other expenses for the 
     administration, maintenance, and functioning of the Board as 
     authorized by the Secretary.
       (4) Payment of expenses.--
       (A) In general.--Expenses incurred under paragraph (3) 
     shall be paid by the Board using--
       (i) assessments collected under section 1086;
       (ii) earnings obtained from assessments; and
       (iii) other income of the Board.
       (B) Borrowed funds.--Any funds borrowed by the Board shall 
     be expended only for startup costs and capital outlays.
       (5) Limitation on spending.--For fiscal years beginning 3 
     or more years after the date of the establishment of the 
     Board, the Board may not expend for administration (except 
     for reimbursements to the Secretary required under paragraph 
     (2)(B)), maintenance, and functioning of the Board in a 
     fiscal year an amount that exceeds 15 percent of the 
     assessment and other income received by the Board for the 
     fiscal year.
       (f) Contracts and Agreements.--
       (1) In general.--The order shall provide that, with the 
     approval of the Secretary, the Board established under the 
     order may--
       (A) enter into contracts and agreements to carry out 
     generic promotion, research, and information activities 
     relating to organic products, including contracts and 
     agreements with producer associations or other entities as 
     considered appropriate by the Secretary; and
       (B) pay the cost of approved generic promotion, research, 
     and information activities using--
       (i) assessments collected under section 1086;
       (ii) earnings obtained from assessments; and
       (iii) other income of the Board.
       (2) Requirements.--Each contract or agreement shall provide 
     that any person that enters into the contract or agreement 
     with the Board shall--
       (A) develop and submit to the Board a proposed activity 
     together with a budget that specifies the cost to be incurred 
     to carry out the activity;
       (B) keep accurate records of all of transactions of the 
     person relating to the contract or agreement;
       (C) account for funds received and expended in connection 
     with the contract or agreement;
       (D) make periodic reports to the Board of activities 
     conducted under the contract or agreement; and
       (E) make such other reports as the Board or the Secretary 
     considers relevant.
       (g) Records of Board.--
       (1) In general.--The order shall require the Board--
       (A)(i) to maintain such records as the Secretary may 
     require; and
       (ii) to make the records available to the Secretary for 
     inspection and audit;
       (B) to collect and submit to the Secretary, at any time the 
     Secretary may specify, any information the Secretary may 
     request;
       (C) to account for the receipt and disbursement of all 
     funds in the possession, or under the control, of the Board; 
     and
       (D) to make public to the participants in the order the 
     minutes of Board meetings and actions of the Board.
       (2) Audits.--The order shall require the Board to have--
       (A) its records audited by an independent auditor at the 
     end of each fiscal year; and
       (B) a report of the audit submitted directly to the 
     Secretary.
       (h) Periodic Evaluation.--
       (1) In general.--In accordance with section 501(c) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7401(c)), the order shall require the Board to provide 
     for the independent evaluation of all generic promotion, 
     research, and information activities carried out under the 
     order.
       (2) Results.--The results of an evaluation described in 
     paragraph (1), with any confidential business information 
     expunged, shall be made available for public review by 
     producers, first handlers, importers, and other participants 
     in the order.
       (3) Conforming amendment.--Section 501(a) of the Federal 
     Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
     7401(a)) is amended--
       (A) in paragraph (17), by striking ``or'' at the end;
       (B) in paragraph (18), by striking the period at the end 
     and inserting ``; or''; and
       (C) by adding at the end the following:
       ``(19) section 1084(h) of the Organic Products Promotion, 
     Research, and Information Act of 2002.''.
       (i) Books and Records of Persons Covered by Order.--
       (1) In general.--The order shall require that producers, 
     first handlers and other persons in the marketing chain, as 
     appropriate, and importers covered by the order shall--
       (A) maintain records sufficient to ensure compliance with 
     the order and regulations;
       (B) submit to the Board any information required by the 
     Board to carry out the responsibilities of the Board under 
     the order; and
       (C) make the records described in subparagraph (A) 
     available, during normal business hours, for inspection by 
     employees or agents of the Board or the Department, including 
     any records necessary to verify information required under 
     subparagraph (B).
       (2) Time requirement.--Any record required to be maintained 
     under paragraph (1) shall be maintained for such time period 
     as the Secretary may prescribe.
       (3) Other information.--The Secretary may use, and may 
     authorize the Board to use under this subtitle, information 
     regarding persons subject to the order that is collected by 
     the Department under any other law.
       (4) Confidentiality of information.--
       (A) In general.--Except as otherwise provided in this 
     subtitle, all information obtained under paragraph (1) or as 
     part of a referendum under section 1087 shall be kept 
     confidential by all officers, employees, and agents of the 
     Department and of the Board.
       (B) Disclosure.--Information referred to in subparagraph 
     (A) may be disclosed only if--
       (i) the Secretary considers the information relevant; and
       (ii) the information is revealed in a judicial proceeding 
     or administrative hearing--

       (I) brought at the direction or on the request of the 
     Secretary; or
       (II) to which the Secretary or any officer of the 
     Department is a party.

       (C) Other exceptions.--This paragraph shall not prohibit--
       (i) the issuance of general statements based on reports or 
     on information relating to a number of persons subject to the 
     order if the statements do not identify the information 
     furnished by any person; or
       (ii) the publication, by direction of the Secretary, of--

       (I) the name of any person violating any order; and
       (II) a statement of the particular provisions of the order 
     violated by the person.

       (D) Penalty.--Any person that willfully violates this 
     subsection shall be subject, on conviction, to a fine of not 
     more than $1,000 or to imprisonment for not more than 1 year, 
     or both.
       (5) Withholding information.--This subsection shall not 
     authorize the withholding of information from Congress.

     SEC. 1085. PERMISSIVE TERMS IN ORDER.

       (a) Exemptions.--The order may contain--
       (1) authority for the Secretary to exempt from the order 
     any de minimis quantity of organic products otherwise covered 
     by the order; and
       (2) authority for the Board to require satisfactory 
     safeguards against improper use of the exemption.
       (b) Different Payment and Reporting Schedules.--The order 
     may contain authority for the Board to designate different 
     payment and reporting schedules to recognize differences in 
     organic product industry marketing practices and procedures 
     used in different production and importing areas.
       (c) Activities.--
       (1) In general.--The order may contain authority to develop 
     and carry out research, promotion, and information activities 
     designed to expand, improve, or make more efficient the 
     marketing or use of organic products in domestic and foreign 
     markets.
       (2) Applicable authority.--Section 1084(e) shall apply with 
     respect to activities authorized under this subsection.
       (d) Reserve Funds.--The order may contain authority to 
     reserve funds from assessments collected under section 1086 
     to permit an effective and continuous coordinated program of 
     research, promotion, and information in years in which the 
     yield from assessments may be reduced, except that the amount 
     of funds reserved may not exceed the greatest aggregate 
     amount of the anticipated disbursements specified in budgets 
     approved under section 1084(e) by the Secretary for any 2 
     fiscal years.

[[Page 856]]

       (e) Generic Activities.--The order may contain authority to 
     provide credits of assessments in accordance with section 
     1086(d) for those individuals that contribute to other 
     similar generic research, promotion, and information programs 
     at the State, regional, or local level.
       (f) Other Authority.--The order may contain authority to 
     take any other action that--
       (1) is not inconsistent with the purpose of this subtitle, 
     any term or condition specified in section 1084, or any rule 
     issued to carry out this subtitle; and
       (2) is necessary to administer the order.

     SEC. 1086. ASSESSMENTS.

       (a) In General.--A producer, first handler, or importer of 
     an organic product may elect to pay an assessment under the 
     order.
       (b) Payment.--If a first handler or importer of an organic 
     product elects to pay an assessment, the assessment shall be, 
     as appropriate--
       (1) paid by first handlers with respect to the organic 
     product produced and marketed in the United States; and
       (2) paid by importers with respect to the organic product 
     imported into the United States, if the imported organic 
     product is covered by the order under section 1085(f).
       (c) Collection.--Any assessment collected under the order 
     shall be remitted to the Board at the time and in the manner 
     prescribed by the order.
       (d) Limitation on Assessments.--Not more than 1 assessment 
     may be collected on a first handler or importer under 
     subsection (a) with respect to any organic product.
       (e) Investment of Assessments.--Pending disbursement of 
     assessments under a budget approved by the Secretary, the 
     Board may invest assessments collected under this section 
     in--
       (1) obligations of the United States or any agency of the 
     United States;
       (2) general obligations of any State or any political 
     subdivision of a State;
       (3) interest-bearing accounts or certificates of deposit of 
     financial institutions that are members of the Federal 
     Reserve System; or
       (4) obligations fully guaranteed as to principal and 
     interest by the United States.
       (f) Credits.--Notwithstanding any other provision of law or 
     any order issued under any commodity promotion law, the 
     Secretary shall permit a producer, first handler, or importer 
     of an organic product that pays an assessment to the Board to 
     receive a credit for the assessment against any assessment 
     that would otherwise be paid by the producer, first handler, 
     or importer under an order issued under another commodity 
     promotion law.

     SEC. 1087. REFERENDA.

       (a) Initial Referendum.--
       (1) In general.--For the purpose of ascertaining whether 
     the persons to be covered by the order favor the order going 
     into effect, the Secretary shall conduct an initial 
     referendum among persons that, during a representative period 
     determined by the Secretary, engaged in--
       (A) the production or handling of organic products; or
       (B) the importation of organic products.
       (2) Procedure.--The results of the referendum shall be 
     determined in accordance with subsection (e).
       (b) Subsequent Referendum.--Not later than 3 years after 
     the date on which assessments were first carried out under 
     the order, and at least once every 4 years thereafter, for 
     the purpose of ascertaining whether the persons covered by 
     the order favor the continuation, suspension, or termination 
     of the order, the Secretary shall conduct a referendum among 
     persons that, during a representative period determined by 
     the Secretary, have engaged in--
       (1) the production or handling of organic products; or
       (2) the importation of organic products.
       (c) Additional Referenda.--For the purpose of ascertaining 
     whether persons covered by the order favor the continuation, 
     suspension, or termination of the order, the Secretary shall 
     conduct additional referenda--
       (1) at the request of the Board; or
       (2) at the request of 10 percent or more of the number of 
     persons eligible to vote under subsection (b).
       (d) Optional Referenda.--The Secretary may conduct a 
     referendum at any time to determine whether the continuation, 
     suspension, or termination of the order or a provision of the 
     order is favored by persons eligible to vote under subsection 
     (b).
       (e) Approval of Order.--The order may provide for the 
     approval of the order in a referendum by a majority of 
     persons voting in the referendum.
       (f) Manner of Conducting Referenda.--
       (1) In general.--A referendum conducted under this section 
     shall be conducted in the manner determined by the Secretary 
     to be appropriate.
       (2) Advance registration.--If the Secretary determines that 
     an advance registration of eligible voters in a referendum is 
     necessary before the voting period to facilitate the conduct 
     of the referendum, the Secretary may institute the advance 
     registration procedures--
       (A) by mail;
       (B) in person through the use of national and local offices 
     of the Department; or
       (C) by such other means as may be prescribed by the 
     Secretary.
       (3) Voting.--Eligible voters may vote in the referendum--
       (A) by mail ballot;
       (B) in person; or
       (C) by such other means as may be prescribed by the 
     Secretary.
       (4) Notice.--
       (A) In general.--Not later than 30 days before the date on 
     which a referendum is conducted under this section with 
     respect to the order, the Secretary shall notify the organic 
     product industry, in such manner as determined to be 
     appropriate by the Secretary, of the period during which 
     voting in the referendum will occur.
       (B) Contents.--The notice shall explain any registration 
     and voting procedures established under this subsection.
       (g) Results of Referenda.--The results of referenda 
     conducted under this section shall be made available to the 
     public.

     SEC. 1088. PETITION AND REVIEW OF ORDERS.

       (a) Petition.--
       (1) In general.--A person subject to the order may file 
     with the Secretary a petition--
       (A) stating that the order, any provision of the order, or 
     any obligation imposed in connection with the order, is not 
     established in accordance with law; and
       (B) requesting a modification of the order or an exemption 
     from the order.
       (2) Hearing.--The Secretary shall give the petitioner an 
     opportunity for a hearing on the petition, in accordance with 
     regulations promulgated by the Secretary.
       (3) Ruling.--
       (A) In general.--After the hearing, the Secretary shall 
     make a ruling on the petition.
       (B) Finality.--The ruling shall be final, subject to review 
     in accordance with subsection (b).
       (4) Limitation on petition.--Any petition filed under this 
     subsection challenging the order, any provision of the order, 
     or any obligation imposed in connection with the order, shall 
     be filed not later than 2 years after the effective date of 
     the order, provision, or obligation subject to challenge in 
     the petition.
       (b) Review.--
       (1) Commencement of action.--The district court of the 
     United States for any district in which a person that is a 
     petitioner under subsection (a) resides or carries on 
     business shall have jurisdiction to review the final ruling 
     on the petition of the person, if a complaint for that 
     purpose is filed not later than 20 days after the date of the 
     entry of the final ruling by the Secretary under subsection 
     (a)(3).
       (2) Process.--Service of process in a proceeding may be 
     made on the Secretary by delivering a copy of the complaint 
     to the Secretary.
       (3) Remands.--If the court determines that the ruling is 
     not in accordance with law, the court shall remand the matter 
     to the Secretary with directions--
       (A) to make such ruling as the court determines to be in 
     accordance with law; or
       (B) to take such further action as, in the opinion of the 
     court, the law requires.
       (c) Effect on Enforcement Proceedings.--The pendency of a 
     petition filed under subsection (a) or an action commenced 
     under subsection (b) shall not operate as a stay of any 
     action authorized by section 1089 to be taken to enforce this 
     subtitle, including any rule, order, or penalty in effect 
     under this subtitle.

     SEC. 1089. ENFORCEMENT.

       (a) Jurisdiction.--The district courts of the United States 
     shall have jurisdiction specifically to enforce, and to 
     prevent and restrain a person from violating, the order 
     issued, or any regulation promulgated, under this subtitle.
       (b) Referral to Attorney General.--A civil action 
     authorized to be brought under this section shall be referred 
     to the Attorney General for appropriate action, except that 
     the Secretary shall not be required to refer to the Attorney 
     General a violation of this subtitle if the Secretary 
     believes that the administration and enforcement of this 
     subtitle would be adequately served by--
       (1) providing a suitable written notice or warning to the 
     person that committed the violation; or
       (2) conducting an administrative action under this section.
       (c) Civil Penalties and Orders.--
       (1) Civil penalties.--A person that willfully violates the 
     order or regulation promulgated by the Secretary under this 
     subtitle may be assessed by the Secretary a civil penalty of 
     not less than $1,000 and not more than $10,000 for each 
     violation.
       (2) Separate offense.--Each violation and each day during 
     which there is a failure to comply with the order, or with 
     any regulation promulgated by the Secretary, shall be 
     considered to be a separate offense.
       (3) Cease-and-desist orders.--In addition to, or in lieu 
     of, a civil penalty, the Secretary issue an order requiring a 
     person to cease and desist from violating--
       (A) the order; or
       (B) any regulation promulgated under this subtitle.
       (4) Notice and hearing.--No order assessing a penalty or 
     cease-and-desist order may be issued by the Secretary under 
     this subsection unless the Secretary provides notice

[[Page 857]]

     and an opportunity for a hearing on the record with respect 
     to the violation.
       (5) Finality.--An order assessing a penalty, or a cease-
     and-desist order issued under this subsection by the 
     Secretary, shall be final and conclusive unless the person 
     against whom the order is issued files an appeal from the 
     order with the United States court of appeals, as provided in 
     subsection (d).
       (d) Review by Court of Appeals.--
       (1) In general.--A person against whom an order is issued 
     under subsection (c) may obtain review of the order by--
       (A) filing, not later than 30 days after the person 
     receives notice of the order, a notice of appeal in--
       (i) the United States court of appeals for the circuit in 
     which the person resides or carries on business; or
       (ii) the United States Court of Appeals for the District of 
     Columbia Circuit; and
       (B) simultaneously sending a copy of the notice of appeal 
     by certified mail to the Secretary.
       (2) Record.--The Secretary shall file with the court a 
     certified copy of the record on which the Secretary has 
     determined that the person has committed a violation.
       (3) Standard of review.--A finding of the Secretary under 
     this section shall be set aside only if the finding is found 
     to be unsupported by substantial evidence on the record.
       (e) Failure To Obey Cease-And-Desist Orders.--
       (1) In general.--A person that fails to obey a valid cease-
     and-desist order issued by the Secretary under this section, 
     after an opportunity for a hearing, shall be subject to a 
     civil penalty assessed by the Secretary of not less than 
     $1,000 and not more than $10,000 for each offense.
       (2) Separate violations.--Each day during which the failure 
     continues shall be considered to be a separate violation of 
     the cease-and-desist order.
       (f) Failure To Pay Penalties.--
       (1) In general.--If a person fails to pay a civil penalty 
     imposed under this section by the Secretary, the Secretary 
     shall refer the matter to the Attorney General for recovery 
     of the amount assessed in the district court of the United 
     States for any district in which the person resides or 
     carries on business.
       (2) Reviewability.--In the action, the validity and 
     appropriateness of the order imposing the civil penalty shall 
     not be subject to review.
       (g) Additional Remedies.--The remedies provided in this 
     section shall be in addition to, and not exclusive of, other 
     remedies that may be available.

     SEC. 1090. INVESTIGATIONS AND POWER TO SUBPOENA.

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

     SEC. 1091. SUSPENSION OR TERMINATION.

       (a) Mandatory Suspension or Termination.--The Secretary 
     shall suspend or terminate an order or a provision of an 
     order if the Secretary determines that--
       (1) an order or a provision of an order obstructs or does 
     not tend to effectuate the purpose of this subtitle; or
       (2) an order or a provision of an order is not favored by 
     persons voting in a referendum conducted under section 1087.
       (b) Implementation of Suspension or Termination.--If, as a 
     result of a referendum conducted under section 1087, the 
     Secretary determines that an order is not approved, the 
     Secretary shall--
       (1) not later than 180 days after making the determination, 
     suspend or terminate, as the case may be, collection of 
     assessments under the order; and
       (2) as soon as practicable, suspend or terminate, as the 
     case may be, activities under the order in an orderly manner.

     SEC. 1092. AMENDMENTS TO ORDERS.

       The provisions of this subtitle applicable to an order 
     shall be applicable to any amendment to an order, except that 
     section 1087 shall not apply to an amendment.

     SEC. 1093. EFFECT ON OTHER LAWS.

       Except as otherwise expressly provided in this subtitle, 
     this subtitle shall not affect or preempt any other Federal 
     or State law authorizing promotion or research relating to an 
     organic product.

     SEC. 1094. REGULATIONS.

       The Secretary may promulgate such regulations as are 
     necessary to carry out this subtitle and the power vested in 
     the Secretary under this subtitle.

     SEC. 1095. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     such sums as are necessary to carry out this subtitle.
       (b) Limitation on Expenditures for Administrative 
     Expenses.--Funds made available to carry out this subtitle 
     may not be expended for the payment of expenses incurred by 
     the Board to administer the order.

                       Subtitle E--Administration

  SA 2835. Mr. CRAIG 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:

       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 slaughter 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) Effective 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.

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