[House Report 104-494]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                      HOUSE OF REPRESENTATIVES       
 2d Session                                                     104-494
_______________________________________________________________________


 
        FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2854




                 March 25, 1996.--Ordered to be printed



104th Congress                                                   Report
                      HOUSE OF REPRESENTATIVES    
 2d Session                                                     104-494
_______________________________________________________________________




        FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 2854




                 March 25, 1996.--Ordered to be printed



         FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-494
_______________________________________________________________________


         FEDERAL AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1966

                                _______


                 March 25, 1996.--Ordered to be printed

_______________________________________________________________________


 Mr. Roberts, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 2854]

      The committee of conference on the disagreeing votes of 
the two Houses on the amendment of the Senate to the bill (H.R. 
2854), to modify the operation of certain agricultural 
programs, having met, after full and free conference, have 
agreed to recommend and do recommend to their respective Houses 
as follows:
      That the House recede from its disagreement to the 
amendment of the Senate and agree to the same with an amendment 
as follows:
      In lieu of the matter proposed to be inserted by the 
Senate amendment, insert the following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal 
Agriculture Improvement and Reform Act of 1996''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:
Sec. 1. Short title; table of contents.

               TITLE I--AGRICULTURAL MARKET TRANSITION ACT

            Subtitle A--Short Title, Purpose, and Definitions

Sec. 101. Short title and purpose.
Sec. 102. Definitions.

              Subtitle B--Production Flexibility Contracts

Sec. 111. Authorization for use of production flexibility contracts.
Sec. 112. Elements of contracts.
Sec. 113. Amounts available for contract payments.
Sec. 114. Determination of contract payments under contracts.
Sec. 115. Payment limitations.
Sec. 116. Violations of contract.
Sec. 117. Transfer or change of interest in lands subject to contract.
Sec. 118. Planting flexibility.

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

Sec. 131. Availability of nonrecourse marketing assistance loans.
Sec. 132. Loan rates for marketing assistance loans.
Sec. 133. Term of loans.
Sec. 134. Repayment of loans.
Sec. 135. Loan deficiency payments.
Sec. 136. Special marketing loan provisions for upland cotton.
Sec. 137. Availability of recourse loans for high moisture feed grains 
          and seed cotton.

                      Subtitle D--Other Commodities

                            Chapter 1--Dairy

Sec. 141. Milk price support program.
Sec. 142. Recourse loan program for commercial processors of dairy 
          products.
Sec. 143. Consolidation and reform of Federal milk marketing orders.
Sec. 144. Effect on fluid milk standards in State of California.
Sec. 145. Milk manufacturing marketing adjustment.
Sec. 146. Promotion.
Sec. 147. Northeast Interstate Dairy Compact.
Sec. 148. Dairy export incentive program.
Sec. 149. Authority to assist in establishment and maintenance of one or 
          more export trading companies.
Sec. 150. Standby authority to indicate entity best suited to provide 
          international market development and export services.
Sec. 151. Study and report regarding potential impact of Uruguay Round 
          on prices, income, and Government purchases.
Sec. 152. Promotion of United States dairy products in international 
          markets through dairy promotion program.

                      Chapter 2--Peanuts and Sugar

Sec. 155. Peanut program.
Sec. 156. Sugar program.

                       Subtitle E--Administration

Sec. 161. Administration.
Sec. 162. Adjustments of loans.
Sec. 163. Commodity Credit Corporation interest rate.
Sec. 164. Personal liability of producers for deficiencies.
Sec. 165. Commodity Credit Corporation sales price restrictions.

              Subtitle F--Permanent Price Support Authority

Sec. 171. Suspension and repeal of permanent price support authority.
Sec. 172. Effect of amendments.

      Subtitle G--Commission on 21st Century Production Agriculture

Sec. 181. Establishment.
Sec. 182. Composition.
Sec. 183. Comprehensive review of past and future of production 
          agriculture.
Sec. 184. Reports.
Sec. 185. Powers.
Sec. 186. Commission procedures.
Sec. 187. Personnel matters.
Sec. 188. Termination of Commission.

             Subtitle H--Miscellaneous Commodity Provisions

Sec. 191. Options pilot program.
Sec. 192. Risk management education.
Sec. 193. Crop insurance.
Sec. 194. Establishment of Office of Risk Management.
Sec. 195. Revenue insurance.
Sec. 196. Administration and operation of noninsured crop assistance 
          program.

                      TITLE II--AGRICULTURAL TRADE

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

Sec. 201. Food aid to developing countries.
Sec. 202. Trade and development assistance.
Sec. 203. Agreements regarding eligible countries and private entities.
Sec. 204. Terms and conditions of sales.
Sec. 205. Use of local currency payment.
Sec. 206. Value-added foods.
Sec. 207. Eligible organizations.
Sec. 208. Generation and use of foreign currencies.
Sec. 209. General levels of assistance under Public Law 480.
Sec. 210. Food Aid Consultative Group.
Sec. 211. Support of nongovernmental organizations.
Sec. 212. Commodity determinations.
Sec. 213. General provisions.
Sec. 214. Agreements.
Sec. 215. Use of Commodity Credit Corporation.
Sec. 216. Administrative provisions.
Sec. 217. Expiration date.
Sec. 218. Regulations.
Sec. 219. Independent evaluation of programs.
Sec. 220. Authorization of appropriations. 
Sec. 221. Coordination of foreign assistance programs.
Sec. 222. Micronutrient fortification pilot program.
Sec. 223. Use of certain local currency.
Sec. 224. Farmer-to-farmer program.
Sec. 225. Food security commodity reserve.
Sec. 226. Protein byproducts derived from alcohol fuel production.
Sec. 227. Food for progress program.
Sec. 228. Use of foreign currency proceeds from export sales financing.
Sec. 229. Stimulation of foreign production.

        Subtitle B--Amendments to Agricultural Trade Act of 1978

Sec. 241. Agricultural export promotion strategy.
Sec. 242. Implementation of commitments under Uruguay Round Agreements.
Sec. 243. Export credits.
Sec. 244. Market access program.
Sec. 245. Export enhancement program.
Sec. 246. Arrival certification.
Sec. 247. Compliance.
Sec. 248. Regulations.
Sec. 249. Trade compensation and assistance programs.
Sec. 250. Foreign Agricultural Service.
Sec. 251. Reports.
Sec. 252. Foreign market development cooperator program.

         Subtitle C--Miscellaneous Agricultural Trade Provisions

Sec. 261. Edward R. Madigan United States Agricultural Export Excellence 
          Award.
Sec. 262. Reporting requirements relating to tobacco.
Sec. 263. Triggered export enhancement.
Sec. 264. Disposition of commodities to prevent waste.
Sec. 265. Debt-for-health-and-protection swap.
Sec. 266. Policy on expansion of international markets.
Sec. 267. Policy on maintenance and development of export markets.
Sec. 268. Policy on trade liberalization.
Sec. 269. Agricultural trade negotiations.
Sec. 270. Policy on unfair trade practices.
Sec. 271. Agricultural aid and trade missions.
Sec. 272. Annual reports by agricultural attaches.
Sec. 273. World livestock market price information.
Sec. 274. Orderly liquidation of stocks.
Sec. 275. Sales of extra long staple cotton.
Sec. 276. Regulations.
Sec. 277. Emerging markets.
Sec. 278. Reimbursement for overhead expenses.
Sec. 279. Labeling of domestic and imported lamb and mutton.
Sec. 280. Import assistance for CBI beneficiary countries and the 
          Philippines.
Sec. 281. Studies, reports, and other provisions.
Sec. 282. Sense of Congress concerning multilateral disciplines on 
          credit guarantees.
Sec. 283. International Cotton Advisory Committee.

                         TITLE III--CONSERVATION

                         Subtitle A--Definitions

Sec. 301. Definitions applicable to highly erodible cropland 
          conservation.

              Subtitle B--Highly Erodible Land Conservation

Sec. 311. Program ineligibility.
Sec. 312. Conservation reserve lands.
Sec. 313. Good faith exemption.
Sec. 314. Expedited procedures for granting variances from conservation 
          plans.
Sec. 315. Development and implementation of conservation plans and 
          conservation systems.
Sec. 316. Investigation of possible compliance deficiencies.
Sec. 317. Wind erosion estimation pilot project.

                    Subtitle C--Wetland Conservation

Sec. 321. Program ineligibility.
Sec. 322. Delineation of wetlands; exemptions to program ineligibility.
Sec. 323. Consultation and cooperation requirements.
Sec. 324. Application of program ineligibility to affiliated persons.
Sec. 325. Clarification of definition of agricultural lands in 
          memorandum of agreement.
Sec. 326. Effective date.

     Subtitle D--Environmental Conservation Acreage Reserve Program

Sec. 331. Environmental conservation acreage reserve program.
Sec. 332. Conservation reserve program.
Sec. 333. Wetlands reserve program.
Sec. 334. Environmental quality incentives program.
Sec. 335. Conservation farm option.
Sec. 336. Repeal of superseded authorities.

           Subtitle E--Conservation Funding and Administration

Sec. 341. Conservation funding and administration.
Sec. 342. State technical committees.
Sec. 343. Public notice and comment for revisions to certain State 
          technical guides.

     Subtitle F--National Natural Resources Conservation Foundation

Sec. 351. Short title.
Sec. 352. Definitions.
Sec. 353. National Natural Resources Conservation Foundation.
Sec. 354. Composition and operation.
Sec. 355. Officers and employees.
Sec. 356. Corporate powers and obligations of the Foundation.
Sec. 357. Administrative services and support.
Sec. 358. Audits and petition of Attorney General for equitable relief.
Sec. 359. Release from liability.
Sec. 360. Authorization of appropriations.

                          Subtitle G--Forestry

Sec. 371. Office of International Forestry.
Sec. 372. Cooperative work for protection, management, and improvement 
          of National Forest System.
Sec. 373. Forestry incentives program.
Sec. 374. Optional State grants for forest legacy program.

            Subtitle H--Miscellaneous Conservation Provisions

Sec. 381. Conservation activities of Commodity Credit Corporation.
Sec. 382. Floodplain easements.
Sec. 383. Resource conservation and development program.
Sec. 384. Repeal of report requirement.
Sec. 385. Flood risk reduction.
Sec. 386. Conservation of private grazing land.
Sec. 387. Wildlife habitat incentives program.
Sec. 388. Farmland protection program.
Sec. 389. Interim moratorium on bypass flows.
Sec. 390. Everglades ecosystem restoration.
Sec. 391. Agricultural air quality research oversight.

                     TITLE IV--NUTRITION ASSISTANCE

Sec. 401. Food stamp program.
Sec. 402. Commodity distribution program; commodity supplemental food 
          program.
Sec. 403. Emergency food assistance program.
Sec. 404. Soup kitchen and food bank program.
Sec. 405. National commodity processing.

                     TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

Sec. 501. Commodity promotion and evaluation.

Subtitle B--Issuance of Orders for Promotion, Research, and Information 
              Activities Regarding Agricultural Commodities

Sec. 511. Short title.
Sec. 512. Findings and purpose.
Sec. 513. Definitions.
Sec. 514. Issuance of orders.
Sec. 515. Required terms in orders.
Sec. 516. Permissive terms in orders.
Sec. 517. Assessments.
Sec. 518. Referenda.
Sec. 519. Petition and review of orders.
Sec. 520. Enforcement.
Sec. 521. Investigations and power to subpoena.
Sec. 522. Suspension or termination.
Sec. 523. Amendments to orders.
Sec. 524. Effect on other laws.
Sec. 525. Regulations.
Sec. 526. Authorization of appropriations.

                     Subtitle C--Canola and Rapeseed

Sec. 531. Short title.
Sec. 532. Findings and declaration of policy.
Sec. 533. Definitions.
Sec. 534. Issuance and amendment of orders.
Sec. 535. Required terms in orders.
Sec. 536. Assessments.
Sec. 537. Referenda.
Sec. 538. Petition and review.
Sec. 539. Enforcement.
Sec. 540. Investigations and power to subpoena.
Sec. 541. Suspension or termination.
Sec. 542. Regulations.
Sec. 543. Authorization of appropriations.

                          Subtitle D--Kiwifruit

Sec. 551. Short title.
Sec. 552. Findings and purposes.
Sec. 553. Definitions.
Sec. 554. Issuance of orders.
Sec. 555. National Kiwifruit Board.
Sec. 556. Required terms in order.
Sec. 557. Permissive terms in order.
Sec. 558. Petition and review.
Sec. 559. Enforcement.
Sec. 560. Investigations and power to subpoena.
Sec. 561. Referenda.
Sec. 562. Suspension or termination.
Sec. 563. Regulations.
Sec. 564. Authorization of appropriations.

                           Subtitle E--Popcorn

Sec. 571. Short title.
Sec. 572. Findings and declaration of policy.
Sec. 573. Definitions.
Sec. 574. Issuance of orders.
Sec. 575. Required terms in orders.
Sec. 576. Referenda.
Sec. 577. Petition and review.
Sec. 578. Enforcement.
Sec. 579. Investigations and power to subpoena.
Sec. 580. Relation to other programs.
Sec. 581. Regulations.
Sec. 582. Authorization of appropriations.

                        Subtitle F--Miscellaneous

Sec. 591. Maintenance of records for honey promotion program.

                            TITLE VI--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 601. Limitation on direct farm ownership loans.
Sec. 602. Purposes of loans.
Sec. 603. Soil and water conservation and protection.
Sec. 604. Interest rate requirements.
Sec. 605. Insurance of loans.
Sec. 606. Loans guaranteed.

                       Subtitle B--Operating Loans

Sec. 611. Limitation on direct operating loans.
Sec. 612. Purposes of operating loans.
Sec. 613. Participation in loans.
Sec. 614. Line-of-credit loans.
Sec. 615. Insurance of operating loans.
Sec. 616. Special assistance for beginning farmers and ranchers.
Sec. 617. Limitation on period for which borrowers are eligible for 
          guaranteed assistance.

                       Subtitle C--Emergency Loans

Sec. 621. Hazard insurance requirement.
Sec. 622. Narrowing of authority to waive application of the credit 
          elsewhere test.
Sec. 623. Linking of emergency loans for crop or livestock changes to 
          natural disasters.
Sec. 624. Maximum emergency loan indebtedness.
Sec. 625. Establishment of date for emergency loan asset valuation.
Sec. 626. Insurance of emergency loans.

                  Subtitle D--Administrative Provisions

Sec. 631. Temporary authority to enter into contracts.
Sec. 632. Use of collection agencies.
Sec. 633. Notice of loan service programs.
Sec. 634. Clarification of written statement required of borrowers.
Sec. 635. Annual review of the credit history, business operation, and 
          continued eligibility of a borrower.
Sec. 636. Extension of veterans preference.
Sec. 637. Verification of the credit elsewhere test.
Sec. 638. Sale of property.
Sec. 639. Easements on inventoried property.
Sec. 640. Definitions.
Sec. 641. Authorization for loans.
Sec. 642. Contracts on loan security properties.
Sec. 643. List of certified lenders and inventory property demonstration 
          project.
Sec. 644. Homestead property.
Sec. 645. Restructuring.
Sec. 646. Transfer of inventory land for conservation purposes.
Sec. 647. Implementation of target participation rates.
Sec. 648. Delinquent borrowers.
Sec. 649. Short form certification of farm program borrower compliance.
Sec. 650. Credit study.

                     Subtitle E--General Provisions

Sec. 661. Conforming amendments.
Sec. 662. Electronic filing of effective financing statements under the 
          clear title provisions of the Food Security Act of 1985.
Sec. 663. Effective date.

                      TITLE VII--RURAL DEVELOPMENT

Subtitle A--Amendments to the Food, Agriculture, Conservation, and Trade 
                               Act of 1990

                      Chapter 1--General Provisions

Sec. 701. Rural investment partnerships.
Sec. 702. Water and waste facility financing.
Sec. 703. Rural wastewater circuit rider program.
Sec. 704. Telemedicine and distance learning services in rural areas.
Sec. 705. Limitation on authorization of appropriations for rural 
          technology grants.
Sec. 706. Demonstration projects.
Sec. 707. Monitoring the economic progress of rural America.
Sec. 708. Analysis by Office of Technology Assessment.
Sec. 709. Rural health infrastructure improvement.
Sec. 710. Census of agriculture.
Sec. 711. Study of the transportation of fertilizer and agricultural 
          chemicals to farmers.

   Chapter 2--Alternative Agricultural Research and Commercialization

Sec. 721. Definitions.
Sec. 722. Alternative Agricultural Research and Commercialization 
          Corporation.
Sec. 723. Board of directors, employees, and facilities.
Sec. 724. Research and development grants, contracts, and agreements.
Sec. 725. Commercialization assistance.
Sec. 726. General rules regarding the provision of assistance.
Sec. 727. Regional centers.
Sec. 728. Alternative Agricultural Research and Commercialization 
          Revolving Fund.
Sec. 729. Procurement preferences for products receiving Corporation 
          assistance.
Sec. 730. Business plan and feasibility study and report.

 Subtitle B--Amendments to the Consolidated Farm and Rural Development 
                                   Act

                      Chapter 1--General Provisions

Sec. 741. Water and waste facility loans and grants.
Sec. 742. Emergency community water assistance grant program for small 
          communities.
Sec. 743. Emergency community water assistance grant program for 
          smallest communities.
Sec. 744. Agricultural Credit Insurance Fund.
Sec. 745. Rural Development Insurance Fund.
Sec. 746. Insured watershed and resource conservation and development 
          loans.
Sec. 747. Rural industrialization assistance.
Sec. 748. Administration.
Sec. 749. Authorization of appropriations.
Sec. 750. Testimony before congressional committees.
Sec. 751. Prohibition on use of loans for certain purposes.
Sec. 752. Rural development certified lenders program.
Sec. 753. System for delivery of certain rural development programs.
Sec. 754. State rural economic development review panel.
Sec. 755. Limited transfer authority of loan amounts.
Sec. 756. Allocation and transfer of loan guarantee authority.
Sec. 757. Water systems for rural and Native villages in Alaska.
Sec. 758. Application requirements relating to water and waste disposal 
          loan and grant programs.
Sec. 759. National Sheep Industry Improvement Center.
Sec. 759A. Cooperative agreements.
Sec. 759B. Eligibility for grants to broadcasting systems.

             Chapter 2--Rural Community Advancement Program

Sec. 761. Rural community advancement program.
Sec. 762. Simplified, uniform application for assistance from all 
          Federal rural development programs.
Sec. 763. Community facilities grant program.

     Subtitle C--Amendments to the Rural Electrification Act of 1936

Sec. 771. Purposes; investigations and reports.
Sec. 772. Authorization of appropriations.
Sec. 773. Loans for electrical plants and transmission lines.
Sec. 774. Loans for electrical and plumbing equipment.
Sec. 775. Testimony on budget requests.
Sec. 776. Transfer of functions of administration created by Executive 
          order.
Sec. 777. Annual report.
Sec. 778. Prohibition on restricting water and waste facility services 
          to electric customers.
Sec. 779. Telephone loan terms and conditions.
Sec. 780. Privatization program.
Sec. 781. Rural Business Incubator Fund.

         Subtitle D--Miscellaneous Rural Development Provisions

Sec. 791. Interest rate formula.
Sec. 792. Grants for financially stressed farmers, dislocated farmers, 
          and rural families.
Sec. 793. Fund for Rural America.
Sec. 794. Under Secretary of Agriculture for Rural Economic and 
          Community Development renamed the Under Secretary of 
          Agriculture for Rural Development.

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

   Subtitle A--Modification and Extension of Activities Under 1977 Act

Sec. 801. Purposes of agricultural research, extension, and education.
Sec. 802. National Agricultural Research, Extension, Education, and 
          Economics Advisory Board.
Sec. 803. Federal Advisory Committee Act exemption for Federal-State 
          cooperative programs.
Sec. 804. Coordination and planning of agricultural research, extension, 
          and education.
Sec. 805. Grants and fellowships for food and agricultural sciences 
          education.
Sec. 806. Grants for research on the production and marketing of 
          alcohols and industrial hydrocarbons from agricultural 
          commodities and forest products.
Sec. 807. Policy research centers.
Sec. 808. Human nutrition intervention and health promotion research 
          program.
Sec. 809. Food and nutrition education program.
Sec. 810. Purposes and findings relating to animal health and disease 
          research.
Sec. 811. Animal health and disease continuing research.
Sec. 812. Animal health and disease national or regional research.
Sec. 813. Grant program to upgrade agricultural and food sciences 
          facilities at 1890 land-grant colleges.
Sec. 814. National research and training centennial centers.
Sec. 815. Programs for Hispanic-serving institutions.
Sec. 816. International agricultural research and extension.
Sec. 817. Authorization of appropriations for agricultural research 
          programs.
Sec. 818. Authorization of appropriations for extension education.
Sec. 819. Supplemental and alternative crops research.
Sec. 820. Aquaculture assistance programs.
Sec. 821. Authorization of appropriations for rangeland research.

   Subtitle B--Modification and Extension of Activities Under 1990 Act

Sec. 831. Water quality research, education, and coordination.
Sec. 832. National genetics resources program.
Sec. 833. National agricultural weather information system.
Sec. 834. Livestock product safety and inspection program.
Sec. 835. Plant genome mapping program.
Sec. 836. Certain specialized research programs.
Sec. 837. Agricultural telecommunications program.
Sec. 838. National centers for agricultural product quality research.
Sec. 839. Red meat safety research center.
Sec. 840. Indian reservation extension agent program.
Sec. 841. Assistive technology program for farmers with disabilities.
Sec. 842. National rural information center clearinghouse.
Sec. 843. Global climate change.

        Subtitle C--Repeal of Certain Activities and Authorities

Sec. 851. Subcommittee on Food, Agricultural, and Forestry Research.
Sec. 852. Joint Council on Food and Agricultural Sciences.
Sec. 853. Agricultural Science and Technology Review Board.
Sec. 854. Animal Health Science Research Advisory Board.
Sec. 855. Resident instruction program at 1890 land-grant colleges.
Sec. 856. Grants to States for international trade development centers.
Sec. 857. Rangeland research.
Sec. 858. Composting research and extension program.
Sec. 859. Education program regarding handling of agricultural chemicals 
          and agricultural chemical containers.
Sec. 860. Program administration regarding sustainable agriculture 
          research and education.
Sec. 861. Research regarding production, preparation, processing, 
          handling, and storage of agricultural products.
Sec. 862. Plant and animal pest and disease control program.
Sec. 863. Certain specialized research programs.
Sec. 864. Commission on agricultural research facilities.
Sec. 865. Special grant to study constraints on agricultural trade.
Sec. 866. Pilot project to coordinate food and nutrition education 
          programs.
Sec. 867. Demonstration areas for rural economic development.
Sec. 868. Technical advisory committee regarding global climate change.
Sec. 869. Committee of nine under Hatch Act of 1887.
Sec. 870. Cotton crop reports.
Sec. 871. Rural economic and business development and additional 
          research grants under title V of Rural Development Act of 
          1972.
Sec. 872. Human nutrition research.
Sec. 873. Grants to upgrade 1890 land-grant college extension 
          facilities.
Sec. 874. Indian subsistence farming demonstration grant program.

              Subtitle D--Miscellaneous Research Provisions

Sec. 881. Critical agricultural materials research.
Sec. 882. Memorandum of agreement regarding 1994 Institutions.
Sec. 883. Smith-Lever Act funding for 1890 land-grant colleges, 
          including Tuskegee University.
Sec. 884. Agricultural research facilities.
Sec. 885. National competitive research initiative.
Sec. 886. Rural development research and education.
Sec. 887. Dairy goat research program.
Sec. 888. Competitive grants for research to eradicate and control brown 
          citrus aphid and citrus tristeza virus.
Sec. 889. Stuttgart National Aquaculture Research Center.
Sec. 890. Expansion of authorities related to National Arboretum.
Sec. 891. Transfer of aquacultural research center.
Sec. 892. Use of remote sensing data and other data to anticipate 
          potential food, feed, and fiber shortages or excesses and to 
          provide timely information to assist farmers with planting 
          decisions.
Sec. 893. Sense of Senate regarding methyl bromide alternative research 
          and extension activities.

          Subtitle E--Research Authority After Fiscal Year 1997

Sec. 897. Authorization of appropriations.
Sec. 898. Activities subject to availability of appropriations.

                         TITLE IX--MISCELLANEOUS

      Subtitle A--Commercial Transportation of Equine for Slaughter

Sec. 901. Findings.
Sec. 902. Definitions.
Sec. 903. Regulation of commercial transportation of equine for 
          slaughter.
Sec. 904. Limitation of authority to equine for slaughter.
Sec. 905. Effective date.

                     Subtitle B--General Provisions

Sec. 911. Interstate quarantine.
Sec. 912. Cotton classification services.
Sec. 913. Plant variety protection for certain tuber propagated plant 
          varieties.
Sec. 914. Swine health protection.
Sec. 915. Designation of Mount Pleasant National Scenic Area.
Sec. 916. Pseudorabies eradication program.
Sec. 917. Collection and use of agricultural quarantine and inspection 
          fees.
Sec. 918. Meat and poultry inspection.
Sec. 919. Reimbursable agreements.
Sec. 920. Overseas tort claims.
Sec. 921. Operation of Graduate School of Department of Agriculture as 
          nonappropriated fund instrumentality.
Sec. 922. Student internship programs.
Sec. 923. Conveyance of excess Federal personal property.
Sec. 924. Conveyance of land to White Oak Cemetery.
Sec. 925. Sale of land by the University of Arkansas.
Sec. 926. Designation of Dale Bumpers Small Farms Research Center.
Sec. 927. Department of Agriculture Washington Area Strategic Space 
          Plan.
Sec. 928. Severability.

              TITLE I--AGRICULTURAL MARKET TRANSITION ACT

           Subtitle A--Short Title, Purpose, and Definitions

SEC. 101. SHORT TITLE AND PURPOSE.

    (a) Short Title.--This title may be cited as the 
``Agricultural Market Transition Act''.
    (b) Purpose.--It is the purpose of this title--
            (1) to authorize the use of binding production 
        flexibility contracts between the United States and 
        agricultural producers to support farming certainty and 
        flexibility while ensuring continued compliance with 
        farm conservation and wetland protection requirements;
            (2) to make nonrecourse marketing assistance loans 
        and loan deficiency payments available for certain 
        crops;
            (3) to improve the operation of farm programs for 
        milk, peanuts, and sugar; and
            (4) to establish a commission to undertake a 
        comprehensive review of past and future production 
        agriculture in the United States.

SEC. 102. DEFINITIONS.

    In this title:
            (1) Agricultural act of 1949.--Except in section 
        171, the term ``Agricultural Act of 1949'' means the 
        Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), as in 
        effect prior to the suspensions under section 
        171(b)(1).
            (2) Considered planted.--The term ``considered 
        planted'' means acreage that is considered planted 
        under title V of the Agricultural Act of 1949 (7 U.S.C. 
        1461 et seq.) and such other acreage as the Secretary 
        considers fair and equitable.
            (3) Contract.--The terms ``contract'' and 
        ``production flexibility contract'' mean a production 
        flexibility contract entered into under section 111.
            (4) Contract acreage.--The term ``contract 
        acreage'' means 1 or more crop acreage bases 
        established for contract commodities under title V of 
        the Agricultural Act of 1949 (7 U.S.C. 1461 et seq.) 
        that would have been in effect for the 1996 crop (but 
        for suspension under section 171(b)(1)).
            (5) Contract commodity.--The term ``contract 
        commodity'' means wheat, corn, grain sorghum, barley, 
        oats, upland cotton, and rice.
            (6) Contract payment.--The term ``contract 
        payment'' means a payment made under this subtitle 
        pursuant to a contract.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) Extra long staple cotton.--The term ``extra 
        long staple cotton'' means cotton that--
                    (A) is produced from pure strain varieties 
                of the Barbadense species or any hybrid 
                thereof, or other similar types of extra long 
                staple cotton, designated by the Secretary, 
                having characteristics needed for various end 
                uses for which United States upland cotton is 
                not suitable and grown in irrigated cotton-
                growing regions of the United States designated 
                by the Secretary or other areas designated by 
                the Secretary as suitable for the production of 
                the varieties or types; and
                    (B) is ginned on a roller-type gin or, if 
                authorized by the Secretary, ginned on another 
                type gin for experimental purposes.
            (9) Farm program payment yield.--The term ``farm 
        program payment yield'' means the farm program payment 
        yield established for the 1995 crop of a contract 
        commodity under section 505 of the Agricultural Act of 
        1949 (7 U.S.C. 1465). The Secretary shall adjust the 
        farm program payment yield for the 1995 crop of a 
        contract commodity to account for any additional yield 
        payments made with respect to that crop under 
        subsection (b)(2) of the section.
            (10) Loan commodity.--The term ``loan commodity'' 
        means each contract commodity, extra long staple 
        cotton, and oilseed.
            (11) Oilseed.--The term ``oilseed'' means a crop of 
        soybeans, sunflower seed, rapeseed, canola, safflower, 
        flaxseed, mustard seed, or, if designated by the 
        Secretary, other oilseeds.
            (12) Producer.--The term ``producer'' means an 
        owner, operator, landlord, tenant, or sharecropper who 
        shares in the risk of producing a crop and who is 
        entitled to share in the crop available for marketing 
        from the farm, or would have shared had the crop been 
        produced. In determining whether a grower of hybrid 
        seed is a producer, the Secretary shall not take into 
        consideration the existence of a hybrid seed contract.
            (13) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (14) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, and any 
        other territory or possession of the United States.
            (15) United states.--The term ``United States'', 
        when used in a geographical sense, means all of the 
        States.

              Subtitle B--Production Flexibility Contracts

SEC. 111. AUTHORIZATION FOR USE OF PRODUCTION FLEXIBILITY CONTRACTS.

    (a) Offer and Terms.--The Secretary shall offer to enter 
into a production flexibility contract with an eligible owner 
or producer described in subsection (b) on a farm containing 
eligible cropland. Under the terms of a contract, the owner or 
producer shall agree, in exchange for annual contract payments, 
to--
            (1) comply with applicable conservation 
        requirements under subtitle B of title XII of the Food 
        Security Act of 1985 (16 U.S.C. 3811 et seq.);
            (2) comply with applicable wetland protection 
        requirements under subtitle C of title XII of the Act 
        (16 U.S.C. 3821 et seq.);
            (3) comply with the planting flexibility 
        requirements of section 118; and
            (4) use the land subject to the contract for an 
        agricultural or related activity, but not for a 
        nonagricultural commercial or industrial use, as 
        determined by the Secretary.
    (b) Eligible Owners and Producers Described.--The following 
producers and owners shall be eligible to enter into a 
contract:
            (1) An owner of eligible cropland who assumes all 
        or a part of the risk of producing a crop.
            (2) A producer (other than an owner) on eligible 
        cropland with a share-rent lease of the eligible 
        cropland, regardless of the length of the lease, if the 
        owner enters into the same contract.
            (3) A producer (other than an owner) on eligible 
        cropland who cash rents the eligible cropland under a 
        lease expiring on or after September 30, 2002, in which 
        case the owner is not required to enter into the 
        contract.
            (4) A producer (other than an owner) on eligible 
        cropland who cash rents the eligible cropland under a 
        lease expiring before September 30, 2002. The owner of 
        the eligible cropland may also enter into the same 
        contract. If the producer elects to enroll less than 
        100 percent of the eligible cropland in the contract, 
        the consent of the owner is required.
            (5) An owner of eligible cropland who cash rents 
        the eligible cropland and the lease term expires before 
        September 30, 2002, if the tenant declines to enter 
        into a contract. In the case of an owner covered by 
        this paragraph, contract payments shall not begin under 
        a contract until the lease held by the tenant ends.
            (6) An owner or producer described in any preceding 
        paragraph regardless of whether the owner or producer 
        purchased catastrophic risk protection for a 1996 crop 
        under section 508(b) of the Federal Crop Insurance Act 
        (7 U.S.C. 1508(b)).
    (c) Tenants and Sharecroppers.--In carrying out this 
subtitle, the Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
    (d) Eligible Cropland Described.--Land shall be considered 
to be cropland eligible for coverage under a contract only if 
the land has contract acreage attributable to the land and--
            (1) for at least 1 of the 1991 through 1995 crops, 
        at least a portion of the land was enrolled in the 
        acreage reduction program authorized for a crop of a 
        contract commodity under section 101B, 103B, 105B, or 
        107B of the Agricultural Act of 1949 or was considered 
        planted;
            (2) was subject to a conservation reserve contract 
        under section 1231 of the Food Security Act of 1985 (16 
        U.S.C. 3831) whose term expired, or was voluntarily 
        terminated, on or after January 1, 1995; or
            (3) is released from coverage under a conservation 
        reserve contract by the Secretary during the period 
        beginning on January 1, 1995, and ending on the date 
        specified in section 112(a)(2).
    (e) Quantity of Eligible Cropland Covered by Contract.--
Subject to subsection (b)(4), an owner or producer may enroll 
as contract acreage all or a portion of the eligible cropland 
on the farm.
    (f) Voluntary Reduction in Contract Acreage.--Subject to 
subsection (b)(4), an owner or producer who enters into a 
contract may subsequently reduce the quantity of contract 
acreage covered by the contract.

SEC. 112. ELEMENTS OF CONTRACTS.

    (a) Time for Contracting.--
            (1) Commencement.--To the extent practicable, the 
        Secretary shall commence entering into contracts not 
        later than 45 days after the date of enactment of this 
        title.
            (2) Deadline.--Except as provided in paragraph (3), 
        the Secretary may not enter into a contract after 
        August 1, 1996.
            (3) Conservation reserve lands.--
                    (A) In general.--At the beginning of each 
                fiscal year, the Secretary shall allow an 
                eligible owner or producer on a farm covered by 
                a conservation reserve contract entered into 
                under section 1231 of the Food Security Act of 
                1985 (16 U.S.C. 3831) that terminates after the 
                date specified in paragraph (2) to enter into 
                or expand a production flexibility contract to 
                cover the contract acreage of the farm that was 
                subject to the former conservation reserve 
                contract.
                    (B) Amount.--Contract payments made for 
                contract acreage under this paragraph shall be 
                made at the rate and amount applicable to the 
                annual contract payment level for the 
                applicable crop. For the fiscal year in which 
                the conservation reserve contract is 
                terminated, the owner or producer subject to 
                the production flexibility contract may elect 
                to receive either contract payments or a 
                prorated payment under the conservation reserve 
                contract, but not both.
    (b) Duration of Contract.--
            (1) Beginning date.--The term of a contract shall 
        begin with--
                    (A) the 1996 crop of a contract commodity; 
                or
                    (B) in the case of acreage that was subject 
                to a conservation reserve contract described in 
                subsection (a)(3), the date the production 
                flexibility contract was entered into or 
                expanded to cover the acreage.
            (2) Ending date.--The term of a contract shall 
        extend through the 2002 crop, unless earlier terminated 
        by the owner or producer.
    (c) Estimation of Contract Payments.--At the time the 
Secretary enters into a contract, the Secretary shall provide 
an estimate of the minimum contract payments anticipated to be 
made during at least the first fiscal year for which contract 
payments will be made.
    (d) Time for Payment.--
            (1) In general.--An annual contract payment shall 
        be made not later than September 30 of each of fiscal 
        years 1996 through 2002.
            (2) Advance payments.--
                    (A) Fiscal year 1996.--At the option of the 
                owner or producer, 50 percent of the contract 
                payment for fiscal year 1996 shall be made not 
                later than 30 days after the date on which the 
                contract is entered into and approved by the 
                Secretary and the owner or producer.
                    (B) Subsequent fiscal years.--At the option 
                of the owner or producer for fiscal year 1997 
                and each subsequent fiscal year, 50 percent of 
                the annual contract payment shall be made on 
                December 15 or January 15 of the fiscal year. 
                The owner or producer may change the date 
                selected under this subparagraph for a 
                subsequent fiscal year by providing advance 
                notice to the Secretary.

SEC. 113. AMOUNTS AVAILABLE FOR CONTRACT PAYMENTS.

    (a) Fiscal Year Amounts.--The Secretary shall, to the 
maximum extent practicable, expend the following amounts to 
satisfy the obligations of the Secretary under all contracts:
            (1) For fiscal year 1996, $5,570,000,000.
            (2) For fiscal year 1997, $5,385,000,000.
            (3) For fiscal year 1998, $5,800,000,000.
            (4) For fiscal year 1999, $5,603,000,000.
            (5) For fiscal year 2000, $5,130,000,000.
            (6) For fiscal year 2001, $4,130,000,000.
            (7) For fiscal year 2002, $4,008,000,000.
    (b) Allocation.--The amount made available for a fiscal 
year under subsection (a) shall be allocated as follows:
            (1) For wheat, 26.26 percent.
            (2) For corn, 46.22 percent.
            (3) For grain sorghum, 5.11 percent.
            (4) For barley, 2.16 percent.
            (5) For oats, 0.15 percent.
            (6) For upland cotton, 11.63 percent.
            (7) For rice, 8.47 percent.
    (c) Adjustment.--The Secretary shall adjust the amounts 
allocated for each contract commodity under subsection (b) for 
a particular fiscal year by--
            (1) adding an amount equal to the sum of all 
        repayments of deficiency payments required under 
        section 114(a)(2) of the Agricultural Act of 1949 (7 
        U.S.C. 1445j(a)(2)) for the commodity;
            (2) adding an amount equal to the sum of all 
        refunds of contract payments received during the 
        preceding fiscal year under section 116 for the 
        commodity; and
            (3) subtracting an amount equal to the amount, if 
        any, necessary during that fiscal year to satisfy 
        payment requirements for the commodity under sections 
        103B, 105B, or 107B of the Agricultural Act of 1949 for 
        the 1994 and 1995 crop years.
    (d) Additional Rice Allocation.--In addition to the 
adjustments required under subsection (c), the amount allocated 
under subsection (b) for rice contract payments shall be 
increased by $8,500,000 for each of fiscal years 1997 through 
2002.
    (e) Exclusion of Certain Amounts From Contract Payments.--
Any amount added pursuant to paragraphs (1) and (2) of 
subsection (c) to the amount available under subsection (a) for 
a fiscal year and paid to owners and producers under a contract 
shall not be treated as a contract payment for purposes of 
section 115(a) of this title or section 1001(1) of the Food 
Security Act of 1985 (7 U.S.C. 1308(1)). However, the amount of 
a payment covered by this subsection may not exceed $50,000 per 
person.
    (f) Effect of Payment Limitation.--The amount available 
under subsection (a) for a fiscal year shall be reduced by an 
amount equal to the total amount of contract payments for the 
fiscal year that owners and producers forgo as a result of 
operation of the payment limitation under section 1001(1) of 
the Food Security Act of 1985 (7 U.S.C. 1308(1)).

SEC. 114. DETERMINATION OF CONTRACT PAYMENTS UNDER CONTRACTS.

    (a) Individual Payment Quantity of Contract Commodities.--
For each contract, the payment quantity of a contract commodity 
for each fiscal year shall be equal to the product of--
            (1) 85 percent of the contract acreage; and
            (2) the farm program payment yield.
    (b) Annual Payment Quantity of Contract Commodities.--The 
payment quantity of each contract commodity covered by all 
contracts for each fiscal year shall be equal to the sum of the 
amounts calculated under subsection (a) for each individual 
contract.
    (c) Annual Payment Rate.--The payment rate for a contract 
commodity for each fiscal year shall be equal to--
            (1) the amount made available under section 113 for 
        the contract commodity for the fiscal year; divided by
            (2) the amount determined under subsection (b) for 
        the fiscal year.
    (d) Annual Payment Amount.--The amount to be paid under a 
contract in effect for each fiscal year with respect to all 
contract commodities covered by the contract shall be equal to 
the sum of the products of--
            (1) the payment quantity determined under 
        subsection (a) for each of the contract commodities 
        covered by the contract; and
            (2) the corresponding payment rate for the contract 
        commodity in effect under subsection (c).
    (e) Reduction in Payment Amount.--The contract payment 
determined under subsection (d) for an owner or producer for a 
fiscal year shall be immediately reduced by the amount of any 
repayment of deficiency payments that is required under section 
114(a)(2) of the Agricultural Act of 1949 (7 U.S.C. 
1445j(a)(2)) and is not repaid as of the date the contract 
payment is determined. The Secretary shall be required to 
collect the required repayment, or any claim based on the 
required repayment, as soon as the contract payment is 
determined.
    (f) Assignment of Contract Payments.--The provisions of 
section 8(g) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(g)) (relating to assignment of payments) 
shall apply to contract payments under this section. The owner 
or producer making the assignment, or the assignee, shall 
provide the Secretary with notice, in such manner as the 
Secretary may require in the contract, of any assignment made 
under this subsection.
    (g) Sharing of Contract Payments.--The Secretary shall 
provide for the sharing of contract payments among the owners 
and producers subject to the contract on a fair and equitable 
basis.

SEC. 115. PAYMENT LIMITATIONS.

    (a) Applicability of Payment Limitations.--Sections 1001 
through 1001C of the Food Security Act of 1985 (7 U.S.C. 1308 
through 1308-3), as amended by this section, shall be 
applicable to contract payments made under this subtitle.
    (b) Payment Limitations.--Section 1001 of the Food Security 
Act of 1985 (7 U.S.C. 1308) is amended by striking paragraphs 
(1) through (4) and inserting the following:
            ``(1) Limitation on payments under production 
        flexibility contracts.--The total amount of contract 
        payments made under the Agricultural Market Transition 
        Act to a person under 1 or more production flexibility 
        contracts during any fiscal year may not exceed 
        $40,000.
            ``(2) Limitation on marketing loan gains and loan 
        deficiency payments.--The total amount of the payments 
        specified in paragraph (3) that a person shall be 
        entitled to receive under the Agricultural Market 
        Transition Act for 1 or more contract commodities and 
        oilseeds during any crop year may not exceed $75,000.
            ``(3) Description of payments subject to 
        limitation.--The payments referred to in paragraph (2) 
        are the following:
                    ``(A) Any gain realized by a producer from 
                repaying a marketing assistance loan under 
                section 131 of the Agricultural Market 
                Transition Act for a crop of any loan commodity 
                at a lower level than the original loan rate 
                established for the loan commodity under 
                section 132 of the Act.
                    ``(B) Any loan deficiency payment received 
                for a loan commodity under section 135 of the 
                Act.
            ``(4) Definitions.--In this title, the terms 
        `contract commodity', `contract payment', `loan 
        commodity', `oilseed', and `production flexibility 
        contract' have the meaning given those terms in section 
        102 of the Agricultural Market Transition Act.''.
    (c) Conforming Amendments.--
            (1) Section 1001A of the Food Security Act of 1985 
        (7 U.S.C. 1308-1) is amended--
                    (A) in subsection (a)(1), by striking 
                ``under the Agricultural Act of 1949 (7 U.S.C. 
                1421 et seq.)''; and
                    (B) in subsection (b)(1), by striking 
                ``under the Agricultural Act of 1949''.
            (2) Section 1001C(a) of the Act (7 U.S.C. 1308-
        3(a)) is amended--
                    (A) by striking ``For each of the 1991 
                through 1997 crops, any'' and inserting 
                ``Any'';
                    (B) by striking ``production adjustment 
                payments, price support program loans, 
                payments, or benefits made available under the 
                Agricultural Act of 1949 (7 U.S.C. 1421 et 
                seq.),'' and inserting ``loans or payments made 
                available under the Agricultural Market 
                Transition Act,''; and
                    (C) by striking ``during the 1989 through 
                1997 crop years''.

SEC. 116. VIOLATIONS OF CONTRACT.

    (a) Termination of Contract For Violation.--Except as 
provided in subsection (b), if an owner or producer subject to 
a contract violates a requirement of the contract specified in 
section 111(a), the Secretary shall terminate the contract with 
respect to the owner or producer on each farm in which the 
owner or producer has an interest. On the termination, the 
owner or producer shall forfeit all rights to receive future 
contract payments on each farm in which the owner or producer 
has an interest and shall refund to the Secretary all contract 
payments received by the owner or producer during the period of 
the violation, together with interest on the contract payments 
as determined by the Secretary.
    (b) Refund or Adjustment.--If the Secretary determines that 
a violation does not warrant termination of the contract under 
subsection (a), the Secretary may require the owner or producer 
subject to the contract--
            (1) to refund to the Secretary that part of the 
        contract payments received by the owner or producer 
        during the period of the violation, together with 
        interest on the contract payments as determined by the 
        Secretary; or
            (2) to accept a reduction in the amount of future 
        contract payments that is proportionate to the severity 
        of the violation, as determined by the Secretary.
    (c) Foreclosure.--
            (1) Effect of foreclosure.--An owner or producer 
        subject to a contract may not be required to make 
        repayments to the Secretary of amounts received under 
        the contract if the contract acreage has been 
        foreclosed on and the Secretary determines that 
        forgiving the repayments is appropriate to provide fair 
        and equitable treatment.
            (2) Resumption of operation.--This subsection shall 
        not void the responsibilities of the owner or producer 
        under the contract if the owner or producer continues 
        or resumes operation, or control, of the contract 
        acreage. On the resumption of operation or control over 
        the contract acreage by the owner or producer, the 
        provisions of the contract in effect on the date of the 
        foreclosure shall apply.
    (d) Review.--A determination of the Secretary under this 
section shall be considered to be an adverse decision for 
purposes of the availability of administrative review of the 
determination.

SEC. 117. TRANSFER OR CHANGE OF INTEREST IN LANDS SUBJECT TO CONTRACT.

    (a) Termination.--Except as provided in subsection (c), a 
transfer of (or change in) the interest of an owner or producer 
subject to a contract in the contract acreage covered by the 
contract shall result in the termination of the contract with 
respect to the acreage, unless the transferee or owner of the 
acreage agrees to assume all obligations under the contract. 
The termination shall be effective on the date of the transfer 
or change.
    (b) Modification.--At the request of the transferee or 
owner, the Secretary may modify the contract if the 
modifications are consistent with the objectives of this 
subtitle, as determined by the Secretary.
    (c) Exception.--If an owner or producer who is entitled to 
a contract payment dies, becomes incompetent, or is otherwise 
unable to receive the contract payment, the Secretary shall 
make the payment, in accordance with regulations prescribed by 
the Secretary.

SEC. 118. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any 
commodity or crop may be planted on contract acreage on a farm.
    (b) Limitations and Exceptions Regarding Fruits and 
Vegetables.--
            (1) Limitations.--The planting of fruits and 
        vegetables (other than lentils, mung beans, and dry 
        peas) shall be prohibited on contract acreage.
            (2) Exceptions.--Paragraph (1) shall not limit the 
        planting of a fruit or vegetable--
                    (A) in any region in which there is a 
                history of double-cropping of contract 
                commodities with fruits or vegetables, as 
                determined by the Secretary, in which case the 
                double-cropping shall be permitted;
                    (B) on a farm that the Secretary determines 
                has a history of planting fruits or vegetables 
                on contract acreage, except that a contract 
                payment shall be reduced by an acre for each 
                acre planted to the fruit or vegetable; or
                    (C) by a producer who the Secretary 
                determines has an established planting history 
                of a specific fruit or vegetable, except that--
                            (i) the quantity planted may not 
                        exceed the producer's average annual 
                        planting history of the fruit or 
                        vegetable in the 1991 through 1995 crop 
                        years (excluding any crop year in which 
                        no plantings were made), as determined 
                        by the Secretary; and
                            (ii) a contract payment shall be 
                        reduced by an acre for each acre 
                        planted to the fruit or vegetable.

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

SEC. 131. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) Nonrecourse Loans Available.--For each of the 1996 
through 2002 crops of each loan commodity, the Secretary shall 
make available to producers on a farm nonrecourse marketing 
assistance loans for loan commodities produced on the farm. The 
loans shall be made under terms and conditions that are 
prescribed by the Secretary and at the loan rate established 
under section 132 for the loan commodity.
    (b) Eligible Production.--The following production shall be 
eligible for a marketing assistance loan under subsection (a):
            (1) In the case of a marketing assistance loan for 
        a contract commodity, any production by a producer on a 
        farm containing eligible cropland covered by a 
        production flexibility contract.
            (2) In the case of a marketing assistance loan for 
        extra long staple cotton and oilseeds, any production.
    (c) Compliance With Conservation and Wetlands 
Requirements.--As a condition of the receipt of a marketing 
assistance loan under subsection (a), the producer shall comply 
with applicable conservation requirements under subtitle B of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.) and applicable wetland protection requirements under 
subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) 
during the term of the loan.
    (d) Additional Outlays Prohibited.--The Secretary shall 
carry out this subtitle in such a manner that there are no 
additional outlays under this subtitle as a result of the 
reconstitution of a farm that occurs as a result of the 
combination of another farm that does not contain eligible 
cropland covered by a production flexibility contract.

SEC. 132. LOAN RATES FOR MARKETING ASSISTANCE LOANS.

    (a) Wheat.--
            (1) Loan rate.--Subject to paragraph (2), the loan 
        rate for a marketing assistance loan under section 131 
        for wheat shall be--
                    (A) not less than 85 percent of the simple 
                average price received by producers of wheat, 
                as determined by the Secretary, during the 
                marketing years for the immediately preceding 5 
                crops of wheat, excluding the year in which the 
                average price was the highest and the year in 
                which the average price was the lowest in the 
                period; but
                    (B) not more than $2.58 per bushel.
            (2) Stocks to use ratio adjustment.--If the 
        Secretary estimates for any marketing year that the 
        ratio of ending stocks of wheat to total use for the 
        marketing year will be--
                    (A) equal to or greater than 30 percent, 
                the Secretary may reduce the loan rate for 
                wheat for the corresponding crop by an amount 
                not to exceed 10 percent in any year;
                    (B) less than 30 percent but not less than 
                15 percent, the Secretary may reduce the loan 
                rate for wheat for the corresponding crop by an 
                amount not to exceed 5 percent in any year; or
                    (C) less than 15 percent, the Secretary may 
                not reduce the loan rate for wheat for the 
                corresponding crop.
    (b) Feed Grains.--
            (1) Loan rate for corn.--Subject to paragraph (2), 
        the loan rate for a marketing assistance loan under 
        section 131 for corn shall be--
                    (A) not less than 85 percent 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; but
                    (B) not more than $1.89 per bushel.
            (2) Stocks to use ratio adjustment.--If the 
        Secretary estimates for any marketing year that the 
        ratio of ending stocks of corn to total use for the 
        marketing year will be--
                    (A) equal to or greater than 25 percent, 
                the Secretary may reduce the loan rate for corn 
                for the corresponding crop by an amount not to 
                exceed 10 percent in any year;
                    (B) less than 25 percent but not less than 
                12.5 percent, the Secretary may reduce the loan 
                rate for corn for the corresponding crop by an 
                amount not to exceed 5 percent in any year; or
                    (C) less than 12.5 percent, the Secretary 
                may not reduce the loan rate for corn for the 
                corresponding crop.
            (3) 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.--
            (1) Loan rate.--Subject to paragraph (2), the loan 
        rate for a marketing assistance loan under section 131 
        for upland cotton shall be established by the Secretary 
        at such loan rate, per pound, as will reflect for the 
        base quality of upland cotton, as determined by the 
        Secretary, at average locations in the United States a 
        rate that is not less than the smaller of--
                    (A) 85 percent of the average price 
                (weighted by market and month) of the base 
                quality of cotton as quoted in the designated 
                United States spot markets during 3 years of 
                the 5-year period ending July 31 of the year 
                preceding the year in which the crop is 
                planted, excluding the year in which the 
                average price was the highest and the year in 
                which the average price was the lowest in the 
                period; or
                    (B) 90 percent of the average, for the 15-
                week period beginning July 1 of the year 
                preceding the year in which the crop is 
                planted, of the 5 lowest-priced growths of the 
                growths quoted for Middling 1\3/32\-inch cotton 
                C.I.F. Northern Europe (adjusted downward by 
                the average difference during the period April 
                15 through October 15 of the year preceding the 
                year in which the crop is planted between the 
                average Northern European price quotation of 
                such quality of cotton and the market 
                quotations in the designated United States spot 
                markets for the base quality of upland cotton), 
                as determined by the Secretary.
            (2) Limitations.--The loan rate for a marketing 
        assistance loan for upland cotton shall not be less 
        than $0.50 per pound or more than $0.5192 per pound.
    (d) Extra Long Staple Cotton.--The loan rate for a 
marketing assistance loan under section 131 for extra long 
staple cotton shall be--
            (1) not less than 85 percent of the simple average 
        price received by producers of extra long staple 
        cotton, as determined by the Secretary, during 3 years 
        of the 5-year period ending July 31 of the year 
        preceding the year in which the crop is planted, 
        excluding the year in which the average price was the 
        highest and the year in which the average price was the 
        lowest in the period; but
            (2) not more than $0.7965 per pound.
    (e) Rice.--The loan rate for a marketing assistance loan 
under section 131 for rice shall be $6.50 per hundredweight.
    (f) Oilseeds.--
            (1) Soybeans.--The loan rate for a marketing 
        assistance loan under section 131 for soybeans shall 
        be--
                    (A) not less than 85 percent of the simple 
                average price received by producers of 
                soybeans, as determined by the Secretary, 
                during the marketing years for the immediately 
                preceding 5 crops of soybeans, excluding the 
                year in which the average price was the highest 
                and the year in which the average price was the 
                lowest in the period; but
                    (B) not less than $4.92 or more than $5.26 
                per bushel.
            (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--
                    (A) not less than 85 percent 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; but
                    (B) not less than $0.087 or more than 
                $0.093 per pound.
            (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.

SEC. 133. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity 
(other than upland cotton or extra long staple cotton), a 
marketing assistance loan under section 131 shall have a term 
of 9 months beginning on the first day of the first month after 
the month in which the loan is made.
    (b) Special Rule for Cotton.--A marketing assistance loan 
for upland cotton or extra long staple cotton shall have a term 
of 10 months beginning on the first day of the month in which 
the loan is made.
    (c) Extensions Prohibited.--The Secretary may not extend 
the term of a marketing assistance loan for any loan commodity.

SEC. 134. REPAYMENT OF LOANS.

    (a) Repayment Rates for Wheat, Feed Grains, and Oilseeds.--
The Secretary shall permit a producer to repay a marketing 
assistance loan under section 131 for wheat, corn, grain 
sorghum, barley, oats, and oilseeds at a rate that is the 
lesser of--
            (1) the loan rate established for the commodity 
        under section 132, plus interest (as determined by the 
        Secretary); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of 
                the commodity by the Federal Government;
                    (C) minimize the cost incurred by the 
                Federal Government in storing the commodity; 
                and
                    (D) allow the commodity produced in the 
                United States to be marketed freely and 
                competitively, both domestically and 
                internationally.
    (b) Repayment Rates for Upland Cotton and Rice.--The 
Secretary shall permit producers to repay a marketing 
assistance loan under section 131 for upland cotton and rice at 
a rate that is the lesser of--
            (1) the loan rate established for the commodity 
        under section 132, plus interest (as determined by the 
        Secretary); or
            (2) the prevailing world market price for the 
        commodity (adjusted to United States quality and 
        location), as determined by the Secretary.
    (c) Repayment Rates for Extra Long Staple Cotton.--
Repayment of a marketing assistance loan for extra long staple 
cotton shall be at the loan rate established for the commodity 
under section 132, plus interest (as determined by the 
Secretary).
    (d) Prevailing World Market Price.--For purposes of this 
section and section 136, the Secretary shall prescribe by 
regulation--
            (1) a formula to determine the prevailing world 
        market price for each loan commodity, adjusted to 
        United States quality and location; and
            (2) a mechanism by which the Secretary shall 
        announce periodically the prevailing world market price 
        for each loan commodity.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
            (1) In general.--During the period ending July 31, 
        2003, the prevailing world market price for upland 
        cotton (adjusted to United States quality and location) 
        established under subsection (d) shall be further 
        adjusted if--
                    (A) the adjusted prevailing world market 
                price is less than 115 percent of the loan rate 
                for upland cotton established under section 
                132, as determined by the Secretary; and
                    (B) the Friday through Thursday average 
                price quotation for the lowest-priced United 
                States growth as quoted for Middling (M) 1\3/
                32\-inch cotton delivered C.I.F. Northern 
                Europe is greater than the Friday through 
                Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for 
                Middling (M) 1\3/32\-inch cotton, delivered 
                C.I.F. Northern Europe (referred to in this 
                section as the ``Northern Europe price'').
            (2) Further adjustment.--Except as provided in 
        paragraph (3), the adjusted prevailing world market 
        price for upland cotton shall be further adjusted on 
        the basis of some or all of the following data, as 
        available:
                    (A) The United States share of world 
                exports.
                    (B) The current level of cotton export 
                sales and cotton export shipments.
                    (C) Other data determined by the Secretary 
                to be relevant in establishing an accurate 
                prevailing world market price for upland cotton 
                (adjusted to United States quality and 
                location).
            (3) Limitation on further adjustment.--The 
        adjustment under paragraph (2) may not exceed the 
        difference between--
                    (A) the Friday through Thursday average 
                price for the lowest-priced United States 
                growth as quoted for Middling 1\3/32\-inch 
                cotton delivered C.I.F. Northern Europe; and
                    (B) the Northern Europe price.

SEC. 135. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--Except as 
provided in subsection (d), the Secretary may make loan 
deficiency payments available to producers who, although 
eligible to obtain a marketing assistance loan under section 
131 with respect to a loan commodity, agree to forgo obtaining 
the loan for the commodity in return for payments under this 
section.
    (b) Computation.--A loan deficiency payment under this 
section shall be computed by multiplying--
            (1) the loan payment rate determined under 
        subsection (c) for the loan commodity; by
            (2) the quantity of the loan commodity that the 
        producers on a farm are eligible to place under loan 
        but for which the producers forgo obtaining the loan in 
        return for payments under this section.
    (c) Loan Payment Rate.--For purposes of this section, the 
loan payment rate shall be the amount by which--
            (1) the loan rate established under section 132 for 
        the loan commodity; exceeds
            (2) the rate at which a loan for the commodity may 
        be repaid under section 134.
    (d) Exception for Extra Long Staple Cotton.--This section 
shall not apply with respect to extra long staple cotton.

SEC. 136. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
            (1) Issuance.--Subject to paragraph (4), during the 
        period ending July 31, 2003, the Secretary shall issue 
        marketing certificates or cash payments to domestic 
        users and exporters for documented purchases by 
        domestic users and sales for export by exporters made 
        in the week following a consecutive 4-week period in 
        which--
                    (A) the Friday through Thursday average 
                price quotation for the lowest-priced United 
                States growth, as quoted for Middling (M) 1\3/
                32\-inch cotton, delivered C.I.F. Northern 
                Europe exceeds the Northern Europe price by 
                more than 1.25 cents per pound; and
                    (B) the prevailing world market price for 
                upland cotton (adjusted to United States 
                quality and location) does not exceed 130 
                percent of the loan rate for upland cotton 
                established under section 132.
            (2) Value of certificates or payments.--The value 
        of the marketing certificates or cash payments shall be 
        based on the amount of the difference (reduced by 1.25 
        cents per pound) in the prices during the 4th week of 
        the consecutive 4-week period multiplied by the 
        quantity of upland cotton included in the documented 
        sales.
            (3) Administration of marketing certificates.--
                    (A) Redemption, marketing, or exchange.--
                The Secretary shall establish procedures for 
                redeeming marketing certificates for cash or 
                marketing or exchange of the certificates for 
                agricultural commodities owned by the Commodity 
                Credit Corporation in such manner, and at such 
                price levels, as the Secretary determines will 
                best effectuate the purposes of cotton user 
                marketing certificates. Any price restrictions 
                that would otherwise apply to the disposition 
                of agricultural commodities by the Commodity 
                Credit Corporation shall not apply to the 
                redemption of certificates under this 
                subsection.
                    (B) Designation of commodities and 
                products.--To the extent practicable, the 
                Secretary shall permit owners of certificates 
                to designate the commodities and products, 
                including storage sites, the owners would 
                prefer to receive in exchange for certificates. 
                If any certificate is not presented for 
                redemption, marketing, or exchange within a 
                reasonable number of days after the issuance of 
                the certificate (as determined by the 
                Secretary), reasonable costs of storage and 
                other carrying charges, as determined by the 
                Secretary, shall be deducted from the value of 
                the certificate for the period beginning after 
                the reasonable number of days and ending with 
                the date of the presentation of the certificate 
                to the Commodity Credit Corporation.
                    (C) Transfers.--Marketing certificates 
                issued to domestic users and exporters of 
                upland cotton may be transferred to other 
                persons in accordance with regulations issued 
                by the Secretary.
            (4) Exception.--The Secretary shall not issue 
        marketing certificates or cash payments under paragraph 
        (1) if, for the immediately preceding consecutive 10-
        week period, the Friday through Thursday average price 
        quotation for the lowest priced United States growth, 
        as quoted for Middling (M) 1\3/32\-inch cotton, 
        delivered C.I.F. Northern Europe, adjusted for the 
        value of any certificate issued under this subsection, 
        exceeds the Northern Europe price by more than 1.25 
        cents per pound.
            (5) Limitation on expenditures.--Total expenditures 
        under this subsection shall not exceed $701,000,000 
        during fiscal years 1996 through 2002.
    (b) Special Import Quota.--
            (1) Establishment.--The President shall carry out 
        an import quota program that provides that, during the 
        period ending July 31, 2003, whenever the Secretary 
        determines and announces that for any consecutive 10-
        week period, the Friday through Thursday average price 
        quotation for the lowest-priced United States growth, 
        as quoted for Middling (M) 1\3/32\-inch cotton, 
        delivered C.I.F. Northern Europe, adjusted for the 
        value of any certificates issued under subsection (a), 
        exceeds the Northern Europe price by more than 1.25 
        cents per pound, there shall immediately be in effect a 
        special import quota.
            (2) Quantity.--The quota shall be equal to 1 week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the most recent 3 
        months for which data are available.
            (3) Application.--The quota shall apply to upland 
        cotton purchased not later than 90 days after the date 
        of the Secretary's announcement under paragraph (1) and 
        entered into the United States not later than 180 days 
        after the date.
            (4) Overlap.--A special quota period may be 
        established that overlaps any existing quota period if 
        required by paragraph (1), except that a special quota 
        period may not be established under this subsection if 
        a quota period has been established under subsection 
        (c).
            (5) Preferential tariff treatment.--The quantity 
        under a special import quota shall be considered to be 
        an in-quota quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade 
                Preference Act (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 
                (19 U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized 
                Tariff Schedule.
            (6) Definition.--In this subsection, the term 
        ``special import quota'' means a quantity of imports 
        that is not subject to the over-quota tariff rate of a 
        tariff-rate quota.
    (c) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an 
        import quota program that provides that whenever the 
        Secretary determines and announces that the average 
        price of the base quality of upland cotton, as 
        determined by the Secretary, in the designated spot 
        markets for a month exceeded 130 percent of the average 
        price of such quality of cotton in the markets for the 
        preceding 36 months, notwithstanding any other 
        provision of law, there shall immediately be in effect 
        a limited global import quota subject to the following 
        conditions:
                    (A) Quantity.--The quantity of the quota 
                shall be equal to 21 days of domestic mill 
                consumption of upland cotton at the seasonally 
                adjusted average rate of the most recent 3 
                months for which data are available.
                    (B) Quantity if prior quota.--If a quota 
                has been established under this subsection 
                during the preceding 12 months, the quantity of 
                the quota next established under this 
                subsection shall be the smaller of 21 days of 
                domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to 
                increase the supply to 130 percent of the 
                demand.
                    (C) Preferential tariff treatment.--The 
                quantity under a limited global import quota 
                shall be considered to be an in-quota quantity 
                for purposes of--
                            (i) section 213(d) of the Caribbean 
                        Basin Economic Recovery Act (19 U.S.C. 
                        2703(d));
                            (ii) section 204 of the Andean 
                        Trade Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade 
                        Act of 1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' 
                        means, using the latest official data 
                        of the Bureau of the Census, the 
                        Department of Agriculture, and the 
                        Department of the Treasury--
                                    (I) the carry-over of 
                                upland cotton at the beginning 
                                of the marketing year (adjusted 
                                to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the 
                                current crop; and
                                    (III) imports to the latest 
                                date available during the 
                                marketing year.
                            (ii) Demand.--The term ``demand'' 
                        means--
                                    (I) the average seasonally 
                                adjusted annual rate of 
                                domestic mill consumption 
                                during the most recent 3 months 
                                for which data are available; 
                                and
                                    (II) the larger of--
                                            (aa) average 
                                        exports of upland 
                                        cotton during the 
                                        preceding 6 marketing 
                                        years; or
                                            (bb) cumulative 
                                        exports of upland 
                                        cotton plus outstanding 
                                        export sales for the 
                                        marketing year in which 
                                        the quota is 
                                        established.
                            (iii) Limited global import 
                        quota.--The term ``limited global 
                        import quota'' means a quantity of 
                        imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate 
                        quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may 
                be entered under the quota during the 90-day 
                period beginning on the date the quota is 
                established by the Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a 
        quota period may not be established that overlaps an 
        existing quota period or a special quota period 
        established under subsection (b).

SEC. 137. AVAILABILITY OF RECOURSE LOANS FOR HIGH MOISTURE FEED GRAINS 
                    AND SEED COTTON.

    (a) High Moisture Feed Grains.--
            (1) Recourse loans available.--For each of the 1996 
        through 2002 crops of corn and grain sorghum, the 
        Secretary shall make available recourse loans, as 
        determined by the Secretary, to producers on a farm 
        containing eligible cropland covered by a production 
        flexibility contract who--
                    (A) normally harvest all or a portion of 
                their crop of corn or grain sorghum in a high 
                moisture state;
                    (B) present--
                            (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, 
                        feedlot, feed mill, distillery, or 
                        other similar entity approved by the 
                        Secretary, pursuant to regulations 
                        issued by the Secretary; or
                            (ii) field or other physical 
                        measurements of the standing or stored 
                        crop in regions of the United States, 
                        as determined by the Secretary, that do 
                        not have certified commercial scales 
                        from which certified scale tickets may 
                        be obtained within reasonable proximity 
                        of harvest operation;
                    (C) certify that they were the owners of 
                the feed grain at the time of delivery to, and 
                that the quantity to be placed under loan under 
                this subsection was in fact harvested on the 
                farm and delivered to, a feedlot, feed mill, or 
                commercial or on-farm high-moisture storage 
                facility, or to a facility maintained by the 
                users of corn and grain sorghum in a high 
                moisture state; and
                    (D) comply with deadlines established by 
                the Secretary for harvesting the corn or grain 
                sorghum and submit applications for loans under 
                this subsection within deadlines established by 
                the Secretary.
            (2) Eligibility of acquired feed grains.--A loan 
        under this subsection shall be made on a quantity of 
        corn or grain sorghum of the same crop acquired by the 
        producer equivalent to a quantity determined by 
        multiplying--
                    (A) the acreage of the corn or grain 
                sorghum in a high moisture state harvested on 
                the producer's farm; by
                    (B) the lower of the farm program payment 
                yield or the actual yield on a field, as 
                determined by the Secretary, that is similar to 
                the field from which the corn or grain sorghum 
                was obtained.
            (3) High moisture state defined.--In this 
        subsection, the term ``high moisture state'' means corn 
        or grain sorghum having a moisture content in excess of 
        Commodity Credit Corporation standards for marketing 
        assistance loans made by the Secretary under section 
        131.
    (b) Recourse Loans Available for Seed Cotton.--
            (1) Upland cotton.--For each of the 1996 through 
        2002 crops of upland cotton, the Secretary shall make 
        available recourse seed cotton loans, as determined by 
        the Secretary, to producers on a farm containing 
        eligible cropland covered by a production flexibility 
        contract.
            (2) Extra long staple cotton.--For each of the 1996 
        through 2002 crops of extra long staple cotton, the 
        Secretary shall make available recourse seed cotton 
        loans, as determined by the Secretary, on any 
        production.
    (c) Repayment Rates.--Repayment of a recourse loan made 
under this section shall be at the loan rate established for 
the commodity by the Secretary, plus interest (as determined by 
the Secretary).

                     Subtitle D--Other Commodities

                            CHAPTER 1--DAIRY

SEC. 141. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--The Secretary of Agriculture shall 
support the price of milk produced in the 48 contiguous States 
through the purchase of cheese, butter, and nonfat dry milk 
produced from the milk.
    (b) Rate.--The price of milk shall be supported at the 
following rates per hundredweight for milk containing 3.67 
percent butterfat:
            (1) During calendar year 1996, $10.35.
            (2) During calendar year 1997, $10.20.
            (3) During calendar year 1998, $10.05.
            (4) During calendar year 1999, $9.90.
    (c) Purchase Prices.--The support purchase prices under 
this section for each of the products of milk (butter, cheese, 
and nonfat dry milk) announced by the Secretary shall be the 
same for all of that product sold by persons offering to sell 
the product to the Secretary. The purchase prices shall be 
sufficient to enable plants of average efficiency to pay 
producers, on average, a price that is not less than the rate 
of price support for milk in effect under subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase 
Prices.--
            (1) Allocation of purchase prices.--The Secretary 
        may allocate the rate of price support between the 
        purchase prices for nonfat dry milk and butter in a 
        manner that will result in the lowest level of 
        expenditures by the Commodity Credit Corporation or 
        achieve such other objectives as the Secretary 
        considers appropriate. Not later than 10 days after 
        making or changing an allocation, the Secretary shall 
        notify the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate of the 
        allocation. Section 553 of title 5, United States Code, 
        shall not apply with respect to the implementation of 
        this section.
            (2) Timing of purchase price adjustments.--The 
        Secretary may make any such adjustments in the purchase 
        prices for nonfat dry milk and butter the Secretary 
        considers to be necessary not more than twice in each 
        calendar year.
    (e) Refunds of 1995 and 1996 Assessments.--
            (1) Refund required.--The Secretary shall provide 
        for a refund of the entire reduction required under 
        section 204(h)(2) of the Agricultural Act of 1949 (7 
        U.S.C. 1446e(h)(2)), as in effect on the day before the 
        amendment made by subsection (g), in the price of milk 
        received by a producer during calendar year 1995 or 
        1996, if the producer provides evidence that the 
        producer did not increase marketings in calendar year 
        1995 or 1996 when compared to calendar year 1994 or 
        1995, respectively.
            (2) Exception.--This subsection shall not apply 
        with respect to a producer for a particular calendar 
        year if the producer has already received a refund 
        under section 204(h) of the Agricultural Act of 1949 
        for the same fiscal year before the effective date of 
        this section.
            (3) Treatment of refund.--A refund under this 
        subsection shall not be considered as any type of price 
        support or payment for purposes of sections 1211 and 
        1221 of the Food Security Act of 1985 (16 U.S.C. 3811 
        and 3821).
    (f) Commodity Credit Corporation.--The Secretary shall 
carry out the program authorized by this section through the 
Commodity Credit Corporation.
    (g) Conforming Repeal.--Effective on the first day of the 
first month beginning after the date of enactment of this 
title, section 204 of the Agricultural Act of 1949 (7 U.S.C. 
1446e) is repealed.
    (h) Period of Effectiveness.--This section (other than 
subsection (g)) shall be effective only during the period 
beginning on the first day of the first month beginning after 
the date of enactment of this title and ending on December 31, 
1999. The program authorized by this section shall terminate on 
December 31, 1999, and shall be considered to have expired 
notwithstanding section 257 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 907).

SEC. 142. RECOURSE LOAN PROGRAM FOR COMMERCIAL PROCESSORS OF DAIRY 
                    PRODUCTS.

    (a) Recourse Loans Available.--Under such reasonable terms 
and conditions as the Secretary may prescribe, the Secretary 
shall make recourse loans available to commercial processors of 
eligible dairy products to assist the processors to manage 
inventories of eligible dairy products and assure a greater 
degree of price stability for the dairy industry during the 
year. The Secretary shall use the funds, facilities, and 
authorities of the Commodity Credit Corporation to carry out 
this section.
    (b) Amount of Loan.--The Secretary shall establish the 
amount of a loan for eligible dairy products, which shall 
reflect a milk equivalent value of $9.90 per hundredweight of 
milk containing 3.67 percent butterfat. The rate of interest 
charged participants under this section shall not be less than 
the rate of interest charged the Commodity Credit Corporation 
by the United States Treasury.
    (c) Period of Loan.--The original term of a recourse loan 
made under this section may not extend beyond the end of the 
fiscal year in which the loan is made. At the end of the fiscal 
year, the Secretary may extend the loan for an additional 
period not to exceed the end of the next fiscal year.
    (d) Definition of Eligible Dairy Products.--In this 
section, the term ``eligible dairy products'' means cheddar 
cheese, butter, and nonfat dry milk.
    (e) Effective Date.--This section shall be effective 
beginning January 1, 2000.

SEC. 143. CONSOLIDATION AND REFORM OF FEDERAL MILK MARKETING ORDERS.

    (a) Amendment of Orders.--
            (1) Required consolidation.--The Secretary shall 
        amend Federal milk marketing orders issued under 
        section 8c of the Agricultural Adjustment Act (7 U.S.C. 
        608c), reenacted with amendments by the Agricultural 
        Marketing Agreement Act of 1937, to limit the number of 
        Federal milk marketing orders to not less than 10 and 
        not more than 14 orders.
            (2) Inclusion of california as separate order.--
        Upon the petition and approval of California dairy 
        producers in the manner provided in section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
        with amendments by the Agricultural Marketing Agreement 
        Act of 1937, the Secretary shall designate the State of 
        California as a separate Federal milk marketing order. 
        The order covering California shall have the right to 
        reblend and distribute order receipts to recognize 
        quota value.
            (3) Related issues addressed in consolidation.--
        Among the issues the Secretary is authorized to 
        implement as part of the consolidation of Federal milk 
        marketing orders are the following:
                    (A) The use of utilization rates and 
                multiple basing points for the pricing of fluid 
                milk.
                    (B) The use of uniform multiple component 
                pricing when developing 1 or more basic formula 
                prices for manufacturing milk.
            (4) Effect of existing law.--In implementing the 
        consolidation of Federal milk marketing orders and 
        related reforms under this subsection, the Secretary 
        may not consider, or base any decision on, the table 
        contained in section 8c(5)(A) of the Agricultural 
        Adjustment Act (7 U.S.C. 608c(5)(A)), reenacted with 
        amendments by the Agricultural Marketing Agreement Act 
        of 1937, as added by section 131 of the Food Security 
        Act of 1985.
    (b) Expedited Process.--
            (1) Use of informal rulemaking.--To implement the 
        consolidation of Federal milk marketing orders and 
        related reforms under subsection (a), the Secretary 
        shall use the notice and comment procedures provided in 
        section 553 of title 5, United States Code.
            (2) Time limitations.--
                    (A) Proposed amendments.--The Secretary 
                shall announce the proposed amendments to be 
                made under subsection (a) not later than 2 
                years after the date of enactment of this 
                title.
                    (B) Final amendments.--The Secretary shall 
                implement the amendments not later than 3 years 
                after the date of enactment of this title.
            (3) Effect of court order.--The actions authorized 
        by this subsection are intended to ensure the timely 
        publication and implementation of new and amended 
        Federal milk marketing orders. In the event that the 
        Secretary is enjoined or otherwise restrained by a 
        court order from publishing or implementing the 
        consolidation and related reforms under subsection (a), 
        the length of time for which that injunction or other 
        restraining order is effective shall be added to the 
        time limitations specified in paragraph (2) thereby 
        extending those time limitations by a period of time 
        equal to the period of time for which the injunction or 
        other restraining order is effective.
    (c) Failure To Timely Consolidate Orders.--If the Secretary 
fails to implement the consolidation required under subsection 
(a)(1) within the time period required under subsection 
(b)(2)(B) (plus any additional period provided under subsection 
(b)(3)), the Secretary may not assess or collect assessments 
from milk producers or handlers under such section 8c for 
marketing order administration and services provided under such 
section after the end of that period until the consolidation is 
completed. The Secretary may not reduce the level of services 
provided under the section on account of the prohibition 
against assessments, but shall rather cover the cost of 
marketing order administration and services through funds 
available for the Agricultural Marketing Service of the 
Department.
    (d) Report Regarding Further Reforms.--
            (1) Report required.--Not later than April 1, 1997, 
        the Secretary shall submit to Congress a report--
                    (A) reviewing the Federal milk marketing 
                order system established pursuant to section 8c 
                of the Agricultural Adjustment Act (7 U.S.C. 
                608c), reenacted with amendments by the 
                Agricultural Marketing Agreement Act of 1937, 
                in light of the reforms required by subsection 
                (a);
                    (B) describing the efforts underway and the 
                progress made in implementing the reforms 
                required by subsection (a); and
                    (C) containing such recommendations as the 
                Secretary considers appropriate for further 
                improvements and reforms to the Federal milk 
                marketing order system.
            (2) Effect of other laws.--Any limitation imposed 
        by Act of Congress on the conduct or completion of 
        reports to Congress shall not apply to the report 
        required under this section, unless the limitation 
        specifically refers to this section.

SEC. 144. EFFECT ON FLUID MILK STANDARDS IN STATE OF CALIFORNIA.

    Nothing in this Act or any other provision of law shall be 
construed to preempt, prohibit, or otherwise limit the 
authority of the State of California, directly or indirectly, 
to establish or continue to effect any law, regulation, or 
requirement regarding--
            (1) the percentage of milk solids or solids not fat 
        in fluid milk products sold at retail or marketed in 
        the State of California; or
            (2) the labeling of such fluid milk products with 
        regard to milk solids or solids not fat.

SEC. 145. MILK MANUFACTURING MARKETING ADJUSTMENT.

    (a) Maximum Allowances Established.--No State shall provide 
for a manufacturing allowance for the processing of milk in 
excess of--
            (1) $1.65 per hundredweight of milk for milk 
        manufactured into butter and nonfat dry milk; and
            (2) $1.80 per hundredweight of milk for milk 
        manufactured into cheese.
    (b) Manufacturing Allowance Defined.--In this section, the 
term ``manufacturing allowance'' means--
            (1) the amount by which the product price value of 
        butter and nonfat dry milk manufactured from a hundred 
        pounds of milk containing 3.5 pounds of butterfat and 
        8.7 pounds of milk solids not fat resulting from a 
        State's yield and product price formulas exceeds the 
        class price for the milk used to produce those 
        products; or
            (2) the amount by which the product price value of 
        cheese manufactured from a hundred pounds of milk 
        containing 3.5 pounds of butterfat and 8.7 pounds of 
        milk solids not fat resulting from a State's yield and 
        product price formulas exceeds the class price for the 
        milk used to produce cheese.
    (c) Effect of Violation.--If the Secretary determines 
following a hearing that a State has in effect a manufacturing 
allowance that exceeds the manufacturing allowance authorized 
in subsection (a), the Secretary shall suspend purchases of 
cheddar cheese, butter, and nonfat dry milk produced in that 
State until such time as the State complies with such 
subsection.
    (d) Effective Date; Implementation.--This section (other 
than subsection (e)) shall be effective during the period 
beginning on the first day of the first month beginning after 
the date of enactment of this title and ending on December 31, 
1999. During that period, the Secretary may exercise the 
authority provided to the Secretary under this section without 
regard to the issuance of regulations intended to carry out 
this section.
    (e) Conforming Repeal.--Effective on the first day of the 
first month beginning after the date of enactment of this 
title, section 102 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1446e-1) is repealed.

SEC. 146. PROMOTION.

    (a) Congressional Purpose.--Section 1999B(a) of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6401(a)) is amended--
            (1) by redesignating paragraphs (6), (7) and (8) as 
        paragraphs (7), (8) and (9), respectively; and
            (2) by inserting after paragraph (5) the following:
            ``(6) the congressional purpose underlying this 
        subtitle is to maintain and expand markets for fluid 
        milk products, not to maintain or expand any 
        processor's share of those markets and that the 
        subtitle does not prohibit or restrict individual 
        advertising or promotion of fluid milk products since 
        the programs created and funded by this subtitle are 
        not extended to replace individual advertising and 
        promotion efforts;''.
    (b) Congressional Policy.--Section 1999B(b) of the Fluid 
Milk Promotion Act of 1990 (7 U.S.C. 6401(b)) is amended to 
read as follows:
    ``(b) Policy.--It is declared to be the policy of Congress 
that it is in the public interest to authorize the 
establishment, through the exercise of powers provided in this 
subtitle, of an orderly procedure for developing, financing, 
through adequate assessments on fluid milk products produced in 
the United States and carrying out an effective, continuous, 
and coordinated program of promotion, research, and consumer 
information designed to strengthen the position of the dairy 
industry in the marketplace and maintain and expand domestic 
and foreign markets and uses for fluid milk products, the 
purpose of which is not to compete with or replace individual 
advertising or promotion efforts designed to promote individual 
brand name or trade name fluid milk products, but rather to 
maintain and expand the markets for all fluid milk products, 
with the goal and purpose of this subtitle being a national 
governmental goal that authorizes and funds programs that 
result in government speech promoting government objectives.''.
    (c) Research.--Section 1999C(6) of the Fluid Milk Promotion 
Act of 1990 (7 U.S.C. 6402(6)) is amended to read as follows:
            ``(6) Research.--The term `research' means market 
        research to support advertising and promotion efforts, 
        including educational activities, research directed to 
        product characteristics, product development, including 
        new products or improved technology in production, 
        manufacturing or processing of milk and the products of 
        milk.''.
    (d) Voting.--
            (1) Initial referenda.--Section 1999N(b)(2) of the 
        Fluid Milk Promotion Act of 1990 (7 U.S.C. 6413(b)(2)) 
        is amended by striking ``all processors'' and inserting 
        ``fluid milk processors voting in the referendum''.
            (2) Suspension or termination.--Section 1999O(c) of 
        such Act (7 U.S.C. 6414(c)) is amended--
                    (A) in paragraph (1), by striking ``all 
                processors'' and inserting ``fluid milk 
                processors voting in the preceding 
                referendum''; and
                    (B) in paragraph (2)(B), by striking ``all 
                processors'' and inserting ``fluid milk 
                processors voting in the referendum''.
    (e) Duration.--Section 1999O(a) of the Fluid Milk Promotion 
Act of 1990 (7 U.S.C. 6414(a)) is amended by striking ``1996'' 
and inserting ``2002''.

SEC. 147. NORTHEAST INTERSTATE DAIRY COMPACT.

    Congress hereby consents to the Northeast Interstate Dairy 
Compact entered into among the States of Connecticut, Maine, 
Massachusetts, New Hampshire, Rhode Island and Vermont as 
specified in section 1(b) Senate Joint Resolution 28 of the 
104th Congress, as placed on the calendar of the Senate, 
subject to the following conditions:
            (1) Finding of Compelling Public Interest.--Based 
        upon a finding by the Secretary of a compelling public 
        interest in the Compact region, the Secretary may grant 
        the States that have ratified the Northeast Interstate 
        Dairy Compact, as of the date of enactment of this 
        title, the authority to implement the Northeast 
        Interstate Dairy Compact.
            (2) Limitation on Manufacturing Price.--The 
        Northeast Interstate Dairy Compact Commission shall not 
        regulate Class II, Class III, or Class III-A milk used 
        for manufacturing purposes or any other milk, other 
        than Class I (fluid) milk, as defined by a Federal milk 
        marketing order issued under section 8c of the 
        Agricultural Adjustment Act (7 U.S.C. 608c) reenacted 
        with amendments by the Agricultural Marketing Agreement 
        Act of 1937.
            (3) Duration.--Consent for the Northeast Interstate 
        Dairy Compact shall terminate concurrent with the 
        Secretary's implementation of the dairy pricing and 
        Federal milk marketing order consolidation and reforms 
        under section 143.
            (4) Additional States.--Delaware, New Jersey, New 
        York, Pennsylvania, Maryland, and Virginia are the only 
        additional States that may join the Northeast 
        Interstate Dairy Compact, individually or otherwise, if 
        upon entry the State is contiguous to a participating 
        State and if Congress consents to the entry of the 
        State into the Compact after the date of enactment of 
        this title.
            (5) Compensation of Commodity Credit Corporation.--
        Before the end of each fiscal year that a Compact price 
        regulation is in effect, the Northeast Interstate Dairy 
        Compact Commission shall compensate the Commodity 
        Credit Corporation for the cost of any purchases of 
        milk and milk products by the Corporation that result 
        from the projected rate of increase in milk production 
        for the fiscal year within the Compact region in excess 
        of the projected national average rate of the increase 
        in milk production, as determined by the Secretary.
            (6) Milk Marketing Order Administrator.--At the 
        request of the Northeast Interstate Dairy Compact 
        Commission, the Administrator of the applicable Federal 
        milk marketing order issued under section 8(c)5 of the 
        Agricultural Adjustment Act (7 U.S.C. 608c), reenacted 
        with amendments by the Agricultural Marketing Agreement 
        Act of 1937, shall provide technical assistance to the 
        Compact Commission and be compensated for that 
        assistance.
            (7) Further Conditions.--The Northeast Interstate 
        Dairy Compact Commission shall not prohibit or in any 
        way limit the marketing in the Compact region of any 
        milk or milk product produced in any other production 
        area in the United States. The Compact Commission shall 
        respect and abide by the ongoing procedures between 
        Federal milk marketing orders with respect to the 
        sharing of proceeds from sales within the Compact 
        region of bulk milk, packaged milk, or producer milk 
        originating from outside of the Compact region. The 
        Compact Commission shall not use compensatory payments 
        under section 10(6) of the Compact as a barrier to the 
        entry of milk into the Compact region or for any other 
        purpose. Establishment of a Compact over-order price, 
        in itself, shall not be considered a compensatory 
        payment or a limitation or prohibition on the marketing 
        of milk.

SEC. 148. DAIRY EXPORT INCENTIVE PROGRAM.

    (a) Duration.--Section 153(a) of the Food Security Act of 
1985 (15 U.S.C. 713a-14(a)) is amended by striking ``2001'' and 
inserting ``2002''.
    (b) Sole Discretion.--Section 153(b) of the Food Security 
Act of 1985 (15 U.S.C. 713a-14(b)) is amended by inserting 
``sole'' before ``discretion''.
    (c) Elements of Program.--Section 153(c) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(c)) is amended--
            (1) by striking ``and'' at the end of paragraph 
        (1);
            (2) by striking the period at the end of paragraph 
        (2) and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) the maximum volume of dairy product exports 
        allowable consistent with the obligations of the United 
        States as a member of the World Trade Organization is 
        exported under the program each year (minus the volume 
        sold under section 1163 of the Food Security Act of 
        1985 (Public Law 99-198; 7 U.S.C. 1731 note) during 
        that year), except to the extent that the export of 
        such a volume under the program would, in the judgment 
        of the Secretary, exceed the limitations on the value 
        set forth in subsection (f); and
            ``(4) payments may be made under the program for 
        exports to any destination in the world for the purpose 
        of market development, except a destination in a 
        country with respect to which shipments from the United 
        States are otherwise restricted by law.''.
    (d) Market Development.--Section 153(e)(1) of the Food 
Security Act of 1985 (15 U.S.C. 713a-14(e)(1)) is amended--
            (1) by striking ``and'' and inserting ``the''; and
            (2) by inserting before the period the following: 
        ``, and any additional amount that may be required to 
        assist in the development of world markets for United 
        States dairy products''.
    (e) Maximum Allowable Amounts.--Section 153 of the Food 
Security Act of 1985 (15 U.S.C. 713a-14) is amended by adding 
at the end the following:
    ``(f) Required Funding.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Commodity Credit Corporation shall in each 
        year use money and commodities for the program under 
        this section in the maximum amount consistent with the 
        obligations of the United States as a member of the 
        World Trade Organization, minus the amount expended 
        under section 1163 of the Food Security Act of 1985 
        (Public Law 99-198; 7 U.S.C. 1731 note) during that 
        year.
            ``(2) Volume limitations.--The Commodity Credit 
        Corporation may not exceed the limitations specified in 
        subsection (c)(3) on the volume of allowable dairy 
        product exports.''.

SEC. 149. AUTHORITY TO ASSIST IN ESTABLISHMENT AND MAINTENANCE OF ONE 
                    OR MORE EXPORT TRADING COMPANIES.

    The Secretary of Agriculture shall, consistent with the 
obligations of the United States as a member of the World Trade 
Organization, provide such advice and assistance to the United 
States dairy industry as may be necessary to enable that 
industry to establish and maintain one or more export trading 
companies under the Export Trading Company Act of 1982 (15 
U.S.C. 4001 et seq.) for the purpose of facilitating the 
international market development for and exportation of dairy 
products produced in the United States.

SEC. 150. STANDBY AUTHORITY TO INDICATE ENTITY BEST SUITED TO PROVIDE 
                    INTERNATIONAL MARKET DEVELOPMENT AND EXPORT 
                    SERVICES.

    (a) Indication of Entity Best Suited To Assist 
International Market Development for and Export of United 
States Dairy Products.--The Secretary of Agriculture shall 
indicate which entity or entities autonomous of the Government 
of the United States, which seeks such a designation, is best 
suited to facilitate the international market development for 
and exportation of United States dairy products, if the 
Secretary determines that--
            (1) the United States dairy industry has not 
        established an export trading company under the Export 
        Trading Company Act of 1982 (15 U.S.C. 4001 et seq.) 
        for the purpose of facilitating the international 
        market development for an exportation of dairy products 
        produced in the United States on or before June 30, 
        1997; or
            (2) the quantity of exports of United States dairy 
        products during the 12-month period preceding July 1, 
        1998 does not exceed the quantity of exports of United 
        States dairy products during the 12-month period 
        preceding July 1, 1997 by 1.5 billion pounds (milk 
        equivalent, total solids basis).
    (b) Funding of Export Activities.--The Secretary shall 
assist the entity or entities identified under subsection (a) 
in identifying sources of funding for the activities specified 
in subsection (a) from within the dairy industry and elsewhere.
    (c) Application of Section.--This section shall apply only 
during the period beginning on July 1, 1997 and ending on 
September 30, 2000.

SEC. 151. STUDY AND REPORT REGARDING POTENTIAL IMPACT OF URUGUAY ROUND 
                    ON PRICES, INCOME, AND GOVERNMENT PURCHASES.

    (a) Study.--The Secretary of Agriculture shall conduct a 
study, on a variety by variety of cheese basis, to determine 
the potential impact on milk prices in the United States, dairy 
producer income, and Federal dairy program costs, of the 
allocation of additional cheese granted access to the United 
States as a result of the obligations of the United States as a 
member of the world Trade Organization.
    (b) Report.--Not later than June 30, 1997, the Secretary 
shall report to the Committee on Agriculture, Nutrition, and 
Forestry of the Senate and the Committee on Agriculture of the 
House of Representatives the results of the study conducted 
under this section.
    (c) Rule of Construction.--Any limitation imposed by Act of 
Congress on the conduct or completion of studies or reports to 
Congress shall not apply to the study and report required under 
this section, unless the limitation specifically refers to this 
section.

SEC. 152. PROMOTION OF UNITED STATES DAIRY PRODUCTS IN INTERNATIONAL 
                    MARKETS THROUGH DAIRY PROMOTION PROGRAM.

    Section 113(e) of the Dairy Production Stabilization Act of 
1983 (7 U.S.C. 4504(e)) is amended by adding at the end the 
following new sentence: ``For each of fiscal years 1997 through 
2001, the Board's budget may provide for the expenditure of 
revenues available to the Board to develop international 
markets for, and to promote within such markets, the 
consumption of dairy products produced in the United States 
from milk produced in the United States.''.

                      CHAPTER 2--PEANUTS AND SUGAR

SEC. 155. PEANUT PROGRAM.

    (a) Quota Peanuts.--
            (1) Availability of loans.--The Secretary shall 
        make nonrecourse loans available to producers of quota 
        peanuts.
            (2) Loan rate.--The national average quota loan 
        rate for quota peanuts shall be $610 per ton.
            (3) Inspection, handling, or storage.--The loan 
        amount may not be reduced by the Secretary by any 
        deductions for inspection, handling, or storage.
            (4) Location and other factors.--The Secretary may 
        make adjustments in the loan rate for quota peanuts for 
        location of peanuts and such other factors as are 
        authorized by section 162.
            (5) Offers from handlers.--If a producer markets a 
        quota peanut crop, meeting quality requirements for 
        domestic edible use, through the marketing association 
        loan for two consecutive marketing years and the 
        Secretary determines that a handler provided the 
        producer with a written offer, upon delivery, for the 
        purchase of the quota peanut crops at a price equal to 
        or in excess of the quota support price, the producer 
        shall be ineligible for quota price support for the 
        next marketing year. The Secretary shall establish the 
        method by which a producer may appeal a determination 
        under this paragraph regarding ineligibility for quota 
        price support.
    (b) Additional Peanuts.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary shall make nonrecourse loans available to 
        producers of additional peanuts at such rates as the 
        Secretary finds appropriate, taking into consideration 
        the demand for peanut oil and peanut meal, expected 
        prices of other vegetable oils and protein meals, and 
        the demand for peanuts in foreign markets.
            (2) Limitation.--The Secretary shall establish the 
        support rate on additional peanuts at a level estimated 
        by the Secretary to ensure that there are no losses to 
        the Commodity Credit Corporation on the sale or 
        disposal of the peanuts.
            (3) Announcement.--The Secretary shall announce the 
        loan rate for additional peanuts of each crop not later 
        than February 15 preceding the marketing year for the 
        crop for which the loan rate is being determined.
    (c) Area Marketing Associations.--
            (1) Warehouse storage loans.--
                    (A) In general.--In carrying out 
                subsections (a) and (b), the Secretary shall 
                make warehouse storage loans available in each 
                of the producing areas (described in section 
                1446.95 of title 7 of the Code of Federal 
                Regulations (January 1, 1989)) to a designated 
                area marketing association of peanut producers 
                that is selected and approved by the Secretary 
                and that is operated primarily for the purpose 
                of conducting the loan activities. The 
                Secretary may not make warehouse storage loans 
                available to any cooperative that is engaged in 
                operations or activities concerning peanuts 
                other than those operations and activities 
                specified in this section and section 358e of 
                the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1359a).
                    (B) Administrative and supervisory 
                activities.--An area marketing association 
                shall be used in administrative and supervisory 
                activities relating to loans and marketing 
                activities under this section and section 358e 
                of the Agricultural Adjustment Act of 1938 (7 
                U.S.C. 1359a).
                    (C) Association costs.--Loans made to the 
                association under this paragraph shall include 
                such costs as the area marketing association 
                reasonably may incur in carrying out the 
                responsibilities, operations, and activities of 
                the association under this section and section 
                358e of the Agricultural Adjustment Act of 1938 
                (7 U.S.C. 1359a).
            (2) Pools for quota and additional peanuts.--
                    (A) In general.--The Secretary shall 
                require that each area marketing association 
                establish pools and maintain complete and 
                accurate records by area and segregation for 
                quota peanuts handled under loan and for 
                additional peanuts placed under loan, except 
                that separate pools shall be established for 
                Valencia peanuts produced in New Mexico.
                    (B) Eligibility to participate in new 
                mexico pools.--
                            (i) In general.--Except as provided 
                        in clause (ii), in the case of the 1996 
                        and subsequent crops, Valencia peanuts 
                        not physically produced in the State of 
                        New Mexico shall not be eligible to 
                        participate in the pools of the State.
                            (ii) Exception.--A producer of 
                        Valencia peanuts may enter Valencia 
                        peanuts that are produced in Texas into 
                        the pools of New Mexico in a quantity 
                        not greater than the average annual 
                        quantity of the peanuts that the 
                        producer entered into the New Mexico 
                        pools for the 1990 through 1995 crops.
                    (C) Types of peanuts.--Bright hull and dark 
                hull Valencia peanuts shall be considered as 
                separate types for the purpose of establishing 
                the pools.
                    (D) Net gains.--Net gains on peanuts in 
                each pool, unless otherwise approved by the 
                Secretary, shall be distributed only to 
                producers who placed peanuts in the pool and 
                shall be distributed in proportion to the value 
                of the peanuts placed in the pool by each 
                producer. Net gains for peanuts in each pool 
                shall consist of the following:
                            (i) Quota peanuts.--For quota 
                        peanuts, the net gains over and above 
                        the loan indebtedness and other costs 
                        or losses incurred on peanuts placed in 
                        the pool.
                            (ii) Additional peanuts.--For 
                        additional peanuts, the net gains over 
                        and above the loan indebtedness and 
                        other costs or losses incurred on 
                        peanuts placed in the pool for 
                        additional peanuts.
    (d) Losses.--Losses in quota area pools shall be covered 
using the following sources in the following order of priority:
            (1) Transfers from additional loan pools.--The 
        proceeds due any producer from any pool shall be 
        reduced by the amount of any loss that is incurred with 
        respect to peanuts transferred from an additional loan 
        pool to a quota loan pool by the producer under section 
        358-1(b)(8) of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1358-1(b)(8)).
            (2) Producers in same pool.--Further losses in an 
        area quota pool shall be offset by reducing the gain of 
        any producer in the pool by the amount of pool gains 
        attributed to the same producer from the sale of 
        additional peanuts for domestic and edible export use.
            (3) Offset within area.--Further losses in an area 
        quota pool shall be offset by any gains or profits from 
        additional peanuts (other than separate type pools 
        established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) owned or controlled by 
        the Commodity Credit Corporation in that area and sold 
        for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply 
        to profits or gains from a farm with 1 acre or less of 
        peanut production.
            (4) First use of marketing assessments.--The 
        Secretary shall use funds collected under subsection 
        (g) (except funds attributable to handlers) to offset 
        further losses in area quota pools. The Secretary shall 
        transfer to the Treasury those funds collected under 
        subsection (g) and available for use under this 
        paragraph that the Secretary determines are not 
        required to cover losses in area quota pools.
            (5) Cross compliance.--Further losses in area quota 
        pools, other than losses incurred as a result of 
        transfers from additional loan pools to quota loan 
        pools under section 358-1(b)(8) of the Agricultural 
        Adjustment Act of 1938 (7 U.S.C. 1358-1(b)(8)), shall 
        be offset by any gains or profits from quota pools in 
        other production areas (other than separate type pools 
        established under subsection (c)(2)(A) for Valencia 
        peanuts produced in New Mexico) in such manner as the 
        Secretary shall by regulation prescribe.
            (6) Offset generally.--If losses in an area quota 
        pool have not been entirely offset under the preceding 
        paragraphs, further losses shall be offset by any gains 
        or profits from additional peanuts (other than separate 
        type pools established under subsection (c)(2)(A) for 
        Valencia peanuts produced in New Mexico) owned or 
        controlled by the Commodity Credit Corporation and sold 
        for domestic edible use, in accordance with regulations 
        issued by the Secretary. This paragraph shall not apply 
        to profits or gains from a farm with 1 acre or less of 
        peanut production.
            (7) Second use of marketing assessments.--The 
        Secretary shall use funds collected under subsection 
        (g) and attributable to handlers to offset further 
        losses in area quota pools. The Secretary shall 
        transfer to the Treasury those funds collected under 
        subsection (g) and available for use under this 
        paragraph that the Secretary determines are not 
        required to cover losses in area quota pools.
            (8) Increased assessments.--If use of the 
        authorities provided in the preceding paragraphs is not 
        sufficient to cover losses in an area quota pool, the 
        Secretary shall increase the marketing assessment for 
        producers established under subsection (g) by such an 
        amount as the Secretary considers necessary to cover 
        the losses. The increased assessment shall apply only 
        to quota peanuts in the production area covered by the 
        pool. Amounts collected under subsection (g) as a 
        result of the increased assessment shall be retained by 
        the Secretary to cover losses in that pool.
    (e) Disapproval of Quotas.--Notwithstanding any other 
provision of law, no loan for quota peanuts may be made 
available by the Secretary for any crop of peanuts with respect 
to which poundage quotas have been disapproved by producers, as 
provided for in section 358-1(d) of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1358-1(d)).
    (f) Quality Improvement.--
            (1) In general.--With respect to peanuts under 
        loan, the Secretary shall--
                    (A) promote the crushing of peanuts at a 
                greater risk of deterioration before peanuts of 
                a lesser risk of deterioration;
                    (B) ensure that all Commodity Credit 
                Corporation inventories of peanuts sold for 
                domestic edible use must be shown to have been 
                officially inspected by licensed Department 
                inspectors both as farmer stock and shelled or 
                cleaned in-shell peanuts;
                    (C) continue to endeavor to operate the 
                peanut program so as to improve the quality of 
                domestic peanuts and ensure the coordination of 
                activities under the Peanut Administrative 
                Committee established under Marketing Agreement 
                No. 146, regulating the quality of domestically 
                produced peanuts (under the Agricultural 
                Adjustment Act (7 U.S.C. 601 et seq.), 
                reenacted with amendments by the Agricultural 
                Marketing Agreement Act of 1937); and
                    (D) ensure that any changes made in the 
                peanut program as a result of this subsection 
                requiring additional production or handling at 
                the farm level shall be reflected as an upward 
                adjustment in the Department loan schedule.
            (2) Exports and other peanuts.--The Secretary shall 
        require that all peanuts in the domestic and export 
        markets fully comply with all quality standards under 
        Marketing Agreement No. 146.
    (g) Marketing Assessment.--
            (1) In general.--The Secretary shall provide for a 
        nonrefundable marketing assessment. The assessment 
        shall be made on a per pound basis in an amount equal 
        to 1.1 percent for each of the 1994 and 1995 crops, 
        1.15 percent for the 1996 crop, and 1.2 percent for 
        each of the 1997 through 2002 crops, of the national 
        average quota or additional peanut loan rate for the 
        applicable crop.
            (2) First purchasers.--
                    (A) In general.--Except as provided under 
                paragraphs (3) and (4), the first purchaser of 
                peanuts shall--
                            (i) collect from the producer a 
                        marketing assessment equal to the 
                        quantity of peanuts acquired multiplied 
                        by--
                                    (I) in the case of each of 
                                the 1994 and 1995 crops, .55 
                                percent of the applicable 
                                national average loan rate;
                                    (II) in the case of the 
                                1996 crop, .6 percent of the 
                                applicable national average 
                                loan rate; and
                                    (III) in the case of each 
                                of the 1997 through 2002 crops, 
                                .65 percent of the applicable 
                                national average loan rate;
                            (ii) pay, in addition to the amount 
                        collected under clause (i), a marketing 
                        assessment in an amount equal to the 
                        quantity of peanuts acquired multiplied 
                        by .55 percent of the applicable 
                        national average loan rate; and
                            (iii) remit the amounts required 
                        under clauses (i) and (ii) to the 
                        Commodity Credit Corporation in a 
                        manner specified by the Secretary.
                    (B) Definition of first purchaser.--In this 
                subsection, the term ``first purchaser'' means 
                a person acquiring peanuts from a producer 
                except that in the case of peanuts forfeited by 
                a producer to the Commodity Credit Corporation, 
                the term means the person acquiring the peanuts 
                from the Commodity Credit Corporation.
            (3) Other private marketings.--In the case of a 
        private marketing by a producer directly to a consumer 
        through a retail or wholesale outlet or in the case of 
        a marketing by the producer outside of the continental 
        United States, the producer shall be responsible for 
        the full amount of the assessment and shall remit the 
        assessment by such time as is specified by the 
        Secretary.
            (4) Loan peanuts.--In the case of peanuts that are 
        pledged as collateral for a loan made under this 
        section, the producer portion of the assessment shall 
        be deducted from the proceeds of the loan. The 
        remainder of the assessment shall be paid by the first 
        purchaser of the peanuts. For purposes of computing net 
        gains on peanuts under this section, the reduction in 
        loan proceeds shall be treated as having been paid to 
        the producer.
            (5) Penalties.--If any person fails to collect or 
        remit the reduction required by this subsection or 
        fails to comply with the requirements for recordkeeping 
        or otherwise as are required by the Secretary to carry 
        out this subsection, the person shall be liable to the 
        Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of peanuts involved in the 
                violation; by
                    (B) the national average quota peanut rate 
                for the applicable crop year.
            (6) Enforcement.--The Secretary may enforce this 
        subsection in the courts of the United States.
    (h) Crops.--Subsections (a) through (g) shall be effective 
only for the 1996 through 2002 crops of peanuts.
    (i) Poundage Quotas.--
            (1) In general.--Part VI of subtitle B of title III 
        of the Agricultural Adjustment Act of 1938 is amended--
                    (A) in section 358-1 (7 U.S.C. 1358-1)--
                            (i) in the section heading, by 
                        striking ``1991 THROUGH 1997 CROPS 
                        OF'';
                            (ii) in subsections (a)(1), 
                        (b)(1)(B), (b)(2)(A), (b)(2)(C), and 
                        (b)(3)(A), by striking ``of the 1991 
                        through 1997 marketing years'' each 
                        place it appears and inserting 
                        ``marketing year'';
                            (iii) in subsection (a)(3), by 
                        striking ``1990'' and inserting ``1990, 
                        for the 1991 through 1995 marketing 
                        years, and 1995, for the 1996 through 
                        2002 marketing years'';
                            (iv) in subsection (b)(1)(A)--
                                    (I) by striking ``each of 
                                the 1991 through 1997 marketing 
                                years'' and inserting ``each 
                                marketing year''; and
                                    (II) in clause (i), by 
                                inserting before the semicolon 
                                the following: ``, in the case 
                                of the 1991 through 1995 
                                marketing years, and the 1995 
                                marketing year, in the case of 
                                the 1996 through 2002 marketing 
                                years'';
                            (v) in subsection (b)(1), by adding 
                        at the end the following:
                    ``(D) Certain farms ineligible for quota.--
                Effective beginning with the 1998 crop, the 
                Secretary shall not establish a farm poundage 
                quota under subparagraph (A) for a farm owned 
                or controlled by--
                            ``(i) a municipality, airport 
                        authority, school, college, refuge, or 
                        other public entity (other than a 
                        university used for research purposes); 
                        or
                            ``(ii) a person who is not a 
                        producer and resides in another 
                        State.'';
                            (vi) in subsection (b)(2), by 
                        adding at the end the following:
                    ``(E) Transfer of quota from ineligible 
                farms.--Any farm poundage quota held at the end 
                of the 1996 marketing year by a farm described 
                in paragraph (1)(D) shall be allocated to other 
                farms in the same State on such basis as the 
                Secretary may by regulation prescribe.''; and
                            (vii) in subsection (f), by 
                        striking ``1997'' and inserting 
                        ``2002'';
                    (B) in section 358b (7 U.S.C. 1358b)--
                            (i) in the section heading, by 
                        striking ``1991 THROUGH 1995 CROPS 
                        OF''; and
                            (ii) in subsection (c), by striking 
                        ``1995'' and inserting ``2002'';
                    (C) in section 358c(d) (7 U.S.C. 1358c(d)), 
                by striking ``1995'' and inserting ``2002''; 
                and
                    (D) in section 358e (7 U.S.C. 1359a)--
                            (i) in the section heading, by 
                        striking ``FOR 1991 THROUGH 1997 CROPS 
                        OF PEANUTS''; and
                            (ii) in subsection (i), by striking 
                        ``1997'' and inserting ``2002''.
            (2) Elimination of quota floor.--Section 358-
        1(a)(1) of the Agricultural Adjustment Act of 1938 (7 
        U.S.C. 1358-1(a)(1)) is amended by striking the second 
        sentence.
            (3) Temporary quota allocation.--Section 358-1 of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-
        1) is amended--
                    (A) in subsection (a)(1), by striking 
                ``domestic edible, seed,'' and inserting 
                ``domestic edible use (except seed)''; and
                    (B) in subsection (b)(2)--
                            (i) in subparagraph (A), by 
                        striking ``subparagraph (B) and subject 
                        to''; and
                            (ii) by striking subparagraph (B) 
                        and inserting the following:
                    ``(B) Temporary quota allocation.--
                            ``(i) Allocation related to seed 
                        peanuts.--Temporary allocation of quota 
                        pounds for the marketing year only in 
                        which the crop is planted shall be made 
                        to producers for each of the 1996 
                        through 2002 marketing years as 
                        provided in this subparagraph.
                            ``(ii) Quantity.--The temporary 
                        quota allocation shall be equal to the 
                        pounds of seed peanuts planted on the 
                        farm, as may be adjusted and determined 
                        under regulations prescribed by the 
                        Secretary.
                            ``(iii) Additional quota.--The 
                        temporary allocation of quota pounds 
                        under this paragraph shall be in 
                        addition to the farm poundage quota 
                        otherwise established under this 
                        subsection and shall be credited, for 
                        the applicable marketing year only, in 
                        total, to the producer of the peanuts 
                        on the farm in a manner prescribed by 
                        the Secretary.
                            ``(iv) Effect of other 
                        requirements.--Nothing in this section 
                        alters or changes the requirements 
                        regarding the use of quota and 
                        additional peanuts established by 
                        section 358e(b).''.
            (4) Undermarketings.--Part VI of subtitle B of 
        title III of the Agricultural Adjustment Act of 1938 is 
        amended--
                    (A) in section 358-1(b) (7 U.S.C. 1358-
                1(b))--
                            (i) in paragraph (1)(B), by 
                        striking ``including--'' and clauses 
                        (i) and (ii) and inserting ``including 
                        any increases resulting from the 
                        allocation of quotas voluntarily 
                        released for 1 year under paragraph 
                        (7).'';
                            (ii) in paragraph (3)(B), by 
                        striking ``include--'' and clauses (i) 
                        and (ii) and inserting ``include any 
                        increase resulting from the allocation 
                        of quotas voluntarily released for 1 
                        year under paragraph (7).''; and
                            (iii) by striking paragraphs (8) 
                        and (9); and
                    (B) in section 358b(a) (7 U.S.C. 
                1358b(a))--
                            (i) in paragraph (2), by striking 
                        ``(including any applicable under 
                        marketings)''; and
                            (ii) in paragraph (3), by striking 
                        ``(including any applicable 
                        undermarketings)''.
            (5) Disaster transfers.--Section 358-1(b) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358-
        1(b)), as amended by paragraph (4)(A)(iii), is amended 
        by adding at the end the following:
            ``(8) Disaster transfers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), additional peanuts produced 
                on a farm from which the quota poundage was not 
                harvested and marketed because of drought, 
                flood, or any other natural disaster, or any 
                other condition beyond the control of the 
                producer, may be transferred to the quota loan 
                pool for pricing purposes on such basis as the 
                Secretary shall by regulation provide.
                    ``(B) Limitation.--The poundage of peanuts 
                transferred under subparagraph (A) shall not 
                exceed the difference between--
                            ``(i) the total quantity of peanuts 
                        meeting quality requirements for 
                        domestic edible use, as determined by 
                        the Secretary, marketed from the farm; 
                        and
                            ``(ii) the total farm poundage 
                        quota, excluding quota pounds 
                        transferred to the farm in the fall.
                    ``(C) Support rate.--Peanuts transferred 
                under this paragraph shall be supported at 70 
                percent of the quota support rate for the 
                marketing years in which the transfers occur. 
                The transfers for a farm shall not exceed 25 
                percent of the total farm quota pounds, 
                excluding pounds transferred in the fall.''.
            (6) Sale or lease.--Section 358b(a) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1358b(a)) 
        is amended--
                    (A) by striking paragraph (1) and inserting 
                the following:
            ``(1) Sale and lease authority.--
                    ``(A) Sale or lease within same state.--
                Subject to subparagraph (B) and such terms and 
                conditions as the Secretary may prescribe, the 
                owner, or operator with the permission of the 
                owner, of a farm in a State for which a farm 
                poundage quota has been established may sell or 
                lease all or any part of the poundage quota to 
                any other owner or operator of a farm within 
                the same State for transfer to the farm. 
                However, any such lease of poundage quota may 
                be entered into in the fall or after the normal 
                planting season--
                            ``(i) if not less than 90 percent 
                        of the basic quota (the farm quota and 
                        temporary quota transfers), plus any 
                        poundage quota transferred to the farm 
                        under this subsection, has been planted 
                        or considered planted on the farm from 
                        which the quota is to be leased; and
                            ``(ii) under such terms and 
                        conditions as the Secretary may by 
                        regulation prescribe.
                ``In the case of a fall transfer or a transfer 
                after the normal planting season by a cash 
                lessee, the landowner shall not be required to 
                sign the transfer authorization. A fall 
                transfer or a transfer after the normal 
                planting season may be made not later than 72 
                hours after the peanuts that are the subject of 
                the transfer are inspected and graded.
                    ``(B) Percentage limitations on spring 
                transfers.--Spring transfers under subparagraph 
                (A) by sale or lease of a quota for farms in a 
                county to any owner or operator of a farm 
                outside the county within the same State shall 
                not exceed the applicable percentage specified 
                in this subparagraph of the quotas of all farms 
                in the originating county (as of January 1, 
                1996) for the crop year in which the transfer 
                is made, plus the total amount of quotas 
                eligible for transfer from the originating 
                county in the preceding crop year that were not 
                transferred in that year or that were 
                transferred through an expired lease. However, 
                not more than an aggregate of 40 percent of the 
                total poundage quota within a county (as of 
                January 1, 1996) may be transferred outside of 
                the county. Cumulative unexpired transfers 
                outside of a county may not exceed for a crop 
                year the following:
                            ``(i) For the 1996 crop, 15 
                        percent.
                            ``(ii) For the 1997 crop, 25 
                        percent.
                            ``(iii) For the 1998 crop, 30 
                        percent.
                            ``(iv) For the 1999 crop, 35 
                        percent.
                            ``(v) For the 2000 and subsequent 
                        crops, not more than an aggregate of 40 
                        percent of the total poundage quota 
                        within the county as of January 1, 
                        1996.
                    ``(C) Clarification regarding fall 
                transfers.--The limitation in subparagraph (B) 
                does not apply to 1-year fall transfers, which 
                in all cases may be made to any farm in the 
                same State.
                    ``(D) Effect of transfer.--Any farm 
                poundage quota transferred under this paragraph 
                shall not result in any reduction in the farm 
                poundage quota for the transferring farm if the 
                transferred quota is produced or considered 
                produced on the receiving farm.''; and
                    (B) by adding at the end the following:
            ``(4) Transfers in counties with small quotas.--
        Notwithstanding paragraphs (1) and (2), in the case of 
        any county in a State for which the poundage quota 
        allocated to the county was less than 100,000 pounds 
        for the preceding year's crop, all or any part of a 
        farm poundage quota may be transferred by sale or lease 
        or otherwise from a farm in the county to a farm in 
        another county in the same State.''.

SEC. 156. SUGAR PROGRAM.

    (a) Sugarcane.--The Secretary shall make loans available to 
processors of domestically grown sugarcane at a rate equal to 
18 cents per pound for raw cane sugar.
    (b) Sugar Beets.--The Secretary shall make loans available 
to processors of domestically grown sugar beets at a rate equal 
to 22.9 cents per pound for refined beet sugar.
    (c) Reduction in Loan Rates.--
            (1) Reduction required.--The Secretary shall reduce 
        the loan rate specified in subsection (a) for 
        domestically grown sugarcane and subsection (b) for 
        domestically grown sugar beets if the Secretary 
        determines that negotiated reductions in export 
        subsidies and domestic subsidies provided for sugar of 
        other major sugar growing, producing, and exporting 
        countries in the aggregate exceed the commitments made 
        as part of the Agreement on Agriculture.
            (2) Extent of reduction.--The Secretary shall not 
        reduce the loan rate under subsection (a) or (b) below 
        a rate that provides an equal measure of support to 
        that provided by other major sugar growing, producing, 
        and exporting countries, based on an examination of 
        both domestic and export subsidies subject to reduction 
        in the Agreement on Agriculture.
            (3) Announcement of reduction.--The Secretary shall 
        announce any loan rate reduction to be made under this 
        subsection as far in advance as is practicable.
            (4) Definitions.--In this subsection:
                    (A) Agreement on agriculture.--The term 
                ``Agreement on Agriculture'' means the 
                Agreement on Agriculture referred to in section 
                101(d)(2) of the Uruguay Round Agreements Act 
                (19 U.S.C. 3511(d)(2)).
                    (B) Major sugar countries.--The term 
                ``major sugar growing, producing, and exporting 
                countries'' means--
                            (i) the countries of the European 
                        Union; and
                            (ii) the 10 foreign countries not 
                        covered by subparagraph (A) that the 
                        Secretary determines produce the 
                        greatest quantity of sugar.
    (d) Term of Loans.--
            (1) In general.--A loan under this section during 
        any fiscal year shall be made available not earlier 
        than the beginning of the fiscal year and shall mature 
        at the earlier of--
                    (A) the end of the 9-month period beginning 
                on the first day of the first month after the 
                month in which the loan is made; or
                    (B) the end of the fiscal year in which the 
                loan is made.
            (2) Supplemental loans.--In the case of a loan made 
        under this section in the last 3 months of a fiscal 
        year, the processor may repledge the sugar as 
        collateral for a second loan in the subsequent fiscal 
        year, except that the second loan shall--
                    (A) be made at the loan rate in effect at 
                the time the second loan is made; and
                    (B) mature in 9 months less the quantity of 
                time that the first loan was in effect.
    (e) Loan Type; Processor Assurances.--
            (1) Recourse loans.--Subject to paragraph (2), the 
        Secretary shall carry out this section through the use 
        of recourse loans.
            (2) Nonrecourse loans.--During any fiscal year in 
        which the tariff rate quota for imports of sugar into 
        the United States is established at, or is increased 
        to, a level in excess of 1,500,000 short tons raw 
        value, the Secretary shall carry out this section by 
        making available nonrecourse loans. Any recourse loan 
        previously made available by the Secretary under this 
        section during the fiscal year shall be changed by the 
        Secretary into a nonrecourse loan.
            (3) Processor assurances.--If the Secretary is 
        required under paragraph (2) to make nonrecourse loans 
        available during a fiscal year or to change recourse 
        loans into nonrecourse loans, the Secretary shall 
        obtain from each processor that receives a loan under 
        this section such assurances as the Secretary considers 
        adequate to ensure that the processor will provide 
        payments to producers that are proportional to the 
        value of the loan received by the processor for sugar 
        beets and sugarcane delivered by producers served by 
        the processor. The Secretary may establish appropriate 
        minimum payments for purposes of this paragraph.
    (f) Marketing Assessment.--
            (1) Sugarcane.--Effective for marketings of raw 
        cane sugar during the 1996 through 2003 fiscal years, 
        the first processor of sugarcane shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to--
                    (A) in the case of marketings during fiscal 
                year 1996, 1.1 percent of the loan rate 
                established under subsection (a) per pound of 
                raw cane sugar, processed by the processor from 
                domestically produced sugarcane or sugarcane 
                molasses, that has been marketed (including the 
                transfer or delivery of the sugar to a refinery 
                for further processing or marketing); and
                    (B) in the case of marketings during each 
                of fiscal years 1997 through 2003, 1.375 
                percent of the loan rate established under 
                subsection (a) per pound of raw cane sugar, 
                processed by the processor from domestically 
                produced sugarcane or sugarcane molasses, that 
                has been marketed (including the transfer or 
                delivery of the sugar to a refinery for further 
                processing or marketing).
            (2) Sugar beets.--Effective for marketings of beet 
        sugar during the 1996 through 2003 fiscal years, the 
        first processor of sugar beets shall remit to the 
        Commodity Credit Corporation a nonrefundable marketing 
        assessment in an amount equal to--
                    (A) in the case of marketings during fiscal 
                year 1996, 1.1794 percent of the loan rate 
                established under subsection (a) per pound of 
                beet sugar, processed by the processor from 
                domestically produced sugar beets or sugar beet 
                molasses, that has been marketed; and
                    (B) in the case of marketings during each 
                of fiscal years 1997 through 2003, 1.47425 
                percent of the loan rate established under 
                subsection (a) per pound of beet sugar, 
                processed by the processor from domestically 
                produced sugar beets or sugar beet molasses, 
                that has been marketed.
            (3) Collection.--
                    (A) Timing.--A marketing assessment 
                required under this subsection shall be 
                collected on a monthly basis and shall be 
                remitted to the Commodity Credit Corporation 
                not later than 30 days after the end of each 
                month. Any cane sugar or beet sugar processed 
                during a fiscal year that has not been marketed 
                by September 30 of the year shall be subject to 
                assessment on that date. The sugar shall not be 
                subject to a second assessment at the time that 
                it is marketed.
                    (B) Manner.--Subject to subparagraph (A), 
                marketing assessments shall be collected under 
                this subsection in the manner prescribed by the 
                Secretary and shall be nonrefundable.
            (4) Penalties.--If any person fails to remit the 
        assessment required by this subsection or fails to 
        comply with such requirements for recordkeeping or 
        otherwise as are required by the Secretary to carry out 
        this subsection, the person shall be liable to the 
        Secretary for a civil penalty up to an amount 
        determined by multiplying--
                    (A) the quantity of cane sugar or beet 
                sugar involved in the violation; by
                    (B) the loan rate for the applicable crop 
                of sugarcane or sugar beets.
            (5) Enforcement.--The Secretary may enforce this 
        subsection in a court of the United States.
    (g) Forfeiture Penalty.--
            (1) In general.--A penalty shall be assessed on the 
        forfeiture of any sugar pledged as collateral for a 
        nonrecourse loan under this section.
            (2) Cane sugar.--The penalty for cane sugar shall 
        be 1 cent per pound.
            (3) Beet sugar.--The penalty for beet sugar shall 
        bear the same relation to the penalty for cane sugar as 
        the marketing assessment for sugar beets bears to the 
        marketing assessment for sugarcane.
            (4) Effect of forfeiture.--Any payments owed 
        producers by a processor that forfeits any sugar 
        pledged as collateral for a nonrecourse loan shall be 
        reduced in proportion to the loan forfeiture penalty 
        incurred by the processor.
    (h) Information Reporting.--
            (1) Duty of processors and refiners to report.--A 
        sugarcane processor, cane sugar refiner, and sugar beet 
        processor shall furnish the Secretary, on a monthly 
        basis, such information as the Secretary may require to 
        administer sugar programs, including the quantity of 
        purchases of sugarcane, sugar beets, and sugar, and 
        production, importation, distribution, and stock levels 
        of sugar.
            (2) Penalty.--Any person willfully failing or 
        refusing to furnish the information, or furnishing 
        willfully any false information, shall be subject to a 
        civil penalty of not more than $10,000 for each such 
        violation.
            (3) Monthly reports.--Taking into consideration the 
        information received under paragraph (1), the Secretary 
        shall publish on a monthly basis composite data on 
        production, imports, distribution, and stock levels of 
        sugar.
    (i) Crops.--This section (other than subsection (f)) shall 
be effective only for the 1996 through 2002 crops of sugar 
beets and sugarcane.

                       Subtitle E--Administration

SEC. 161. ADMINISTRATION.

    (a) Use of Commodity Credit Corporation.--The Secretary 
shall carry out this title through the Commodity Credit 
Corporation.
    (b) Limitation on Expenditure of Commodity Credit 
Corporation Funds.--
            (1) General powers and responsibilities.--Section 4 
        of the Commodity Credit Corporation Charter Act (15 
        U.S.C. 714b) is amended--
                    (A) in the first sentence of subsection 
                (g), by inserting before the period the 
                following: ``, except that obligations under 
                all such contracts or agreements (other than 
                reimbursable agreements under section 11) for 
                equipment or services relating to automated 
                data processing, information technologies, or 
                related items (including telecommunications 
                equipment and computer hardware and software) 
                may not exceed $170,000,000 in fiscal year 1996 
                and not more than $275,000,000 in the 6-fiscal 
                year period beginning on October 1, 1996, 
                unless additional amounts for such contracts 
                and agreements are provided in advance in 
                appropriation Acts''; and
                    (B) in subsection (h), by striking ``shall 
                have power to acquire personal property 
                necessary to the conduct of its business but''.
            (2) Reimbursable agreements.--Section 11 of the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 
        714i) is amended by adding at the end the following: 
        ``After September 30, 1996, the total amount of all 
        allotments and fund transfers from the Corporation 
        under this section (including allotments and transfers 
        for automated data processing or information resource 
        management activities) for a fiscal year may not exceed 
        the total amount of the allotments and transfers made 
        under this section in fiscal year 1995.''.
            (3) Reporting requirements.--Section 13 of the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 
        714k) is amended by adding at the end the following: 
        ``In addition to the annual report, the Corporation 
        shall submit to Congress on a quarterly basis an 
        itemized report of all expenditures over $10,000 made 
        under section 5 or 11 during the period covered by the 
        report, including expenditures in the form of 
        allotments or fund transfers to other agencies and 
        departments of the Federal Government.''.
    (c) Determinations by Secretary.--A determination made by 
the Secretary under this title shall be final and conclusive.
    (d) Regulations.--Not later than 90 days after the date of 
enactment of this title, the Secretary and the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as 
are necessary to implement this title. The issuance of the 
regulations shall be made without regard to--
            (1) the notice and comment provisions of section 
        553 of title 5, United States Code;
            (2) the Statement of Policy of the Secretary of 
        Agriculture effective July 24, 1971 (36 Fed. Reg. 
        13804) relating to notices of proposed rulemaking and 
        public participation in rulemaking; and
            (3) chapter 35 of title 44, United States Code 
        (commonly know as the ``Paperwork Reduction Act'').

SEC. 162. ADJUSTMENTS OF LOANS.

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

SEC. 163. COMMODITY CREDIT CORPORATION INTEREST RATE.

    Notwithstanding any other provision of law, the monthly 
Commodity Credit Corporation interest rate applicable to loans 
provided for agricultural commodities by the Corporation shall 
be 100 basis points greater than the rate determined under the 
applicable interest rate formula in effect on October 1, 1995.

SEC. 164. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    (a) In General.--Except as provided in subsection (b), no 
producer shall be personally liable for any deficiency arising 
from the sale of the collateral securing any nonrecourse loan 
made under this title unless the loan was obtained through a 
fraudulent representation by the producer.
    (b) Limitations.--Subsection (a) shall not prevent the 
Commodity Credit Corporation or the Secretary from requiring a 
producer to assume liability for--
            (1) a deficiency in the grade, quality, or quantity 
        of a commodity stored on a farm or delivered by the 
        producer;
            (2) a failure to properly care for and preserve a 
        commodity; or
            (3) a failure or refusal to deliver a commodity in 
        accordance with a program established under this title.
    (c) Acquisition of Collateral.--In the case of a 
nonrecourse loan made under this title or the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714 et seq.), if the 
Commodity Credit Corporation acquires title to the unredeemed 
collateral, the Corporation shall be under no obligation to pay 
for any market value that the collateral may have in excess of 
the loan indebtedness.
    (d) Sugarcane and Sugar Beets.--A security interest 
obtained by the Commodity Credit Corporation as a result of the 
execution of a security agreement by the processor of sugarcane 
or sugar beets shall be superior to all statutory and common 
law liens on raw cane sugar and refined beet sugar in favor of 
the producers of sugarcane and sugar beets and all prior 
recorded and unrecorded liens on the crops of sugarcane and 
sugar beets from which the sugar was derived.

SEC. 165. COMMODITY CREDIT CORPORATION SALES PRICE RESTRICTIONS.

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

             Subtitle F--Permanent Price Support Authority

SEC. 171. SUSPENSION AND REPEAL OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Adjustment Act of 1938 shall not be 
        applicable to the 1996 through 2002 crops of loan 
        commodities, peanuts, and sugar and shall not be 
        applicable to milk during the period beginning on the 
        date of enactment of this title and ending on December 
        31, 2002:
                    (A) Parts II through V of subtitle B of 
                title III (7 U.S.C. 1326-1351).
                    (B) Subsections (a) through (j) of section 
                358 (7 U.S.C. 1358).
                    (C) Subsections (a) through (h) of section 
                358a (7 U.S.C. 1358a).
                    (D) Subsections (a), (b), (d), and (e) of 
                section 358d (7 U.S.C. 1359).
                    (E) Part VII of subtitle B of title III (7 
                U.S.C. 1359aa-1359jj).
                    (F) In the case of peanuts, part I of 
                subtitle C of title III (7 U.S.C. 1361-1368).
                    (G) In the case of upland cotton, section 
                377 (7 U.S.C. 1377).
                    (H) Subtitle D of title III (7 U.S.C. 
                1379a-1379j).
                    (I) Title IV (7 U.S.C. 1401-1407).
            (2) Reports and records.--Effective only for the 
        1996 through 2002 crops of peanuts, the first sentence 
        of section 373(a) of the Agricultural Adjustment Act of 
        1938 (7 U.S.C. 1373(a)) is amended by inserting before 
        ``all brokers and dealers in peanuts'' the following: 
        ``all producers engaged in the production of 
        peanuts,''.
    (b) Agricultural Act of 1949.--
            (1) Suspensions.--The following provisions of the 
        Agricultural Act of 1949 shall not be applicable to the 
        1996 through 2002 crops of loan commodities, peanuts, 
        and sugar and shall not be applicable to milk during 
        the period beginning on the date of enactment of this 
        title and ending on December 31, 2002:
                    (A) Section 101 (7 U.S.C. 1441).
                    (B) Section 103(a) (7 U.S.C. 1444(a)).
                    (C) Section 105 (7 U.S.C. 1444b).
                    (D) Section 107 (7 U.S.C. 1445a).
                    (E) Section 110 (7 U.S.C. 1445e).
                    (F) Section 112 (7 U.S.C. 1445g).
                    (G) Section 115 (7 U.S.C. 1445k).
                    (H) Section 201 (7 U.S.C. 1446).
                    (I) Title III (7 U.S.C. 1447-1449).
                    (J) Title IV (7 U.S.C. 1421-1433d), other 
                than sections 404, 412, and 416 (7 U.S.C. 1424, 
                1429, and 1431).
                    (K) Title V (7 U.S.C. 1461-1469).
                    (L) Title VI (7 U.S.C. 1471-1471j).
            (2) Repeals.--The following provisions of the 
        Agricultural Act of
                    (A) Section 101B (7 U.S.C. 1441-2).
                    (B) Section 103B (7 U.S.C. 1444-2).
                    (C) Section 105B (7 U.S.C. 1444f).
                    (D) Section 107B (7 U.S.C. 1445-3a).
                    (E) Section 108B (7 U.S.C. 1445c-3).
                    (F) Section 113 (7 U.S.C. 1445h).
                    (G) Subsections (b) and (c) of section 114 
                (7 U.S.C. 1445j).
                    (H) Sections 205, 206, and 207 (7 U.S.C. 
                1446f, 1446g, and 1446h).
                    (I) Sections 406 and 427 (7 U.S.C. 1426 and 
                1433f).
            (3) Potential price support for rice.--Section 101 
        of the Agricultural Act of 1949 (7 U.S.C. 1441), as 
        suspended by paragraph (1), is amended by adding after 
        subsection (d) the following:
    ``(e) Rice.--The Secretary shall make available to 
producers of each crop of rice on a farm price support at a 
level that is not less than 50 percent, or more than 90 percent 
of the parity price for rice as the Secretary determines will 
not result in increasing stocks of rice to the Commodity Credit 
Corporation.''.
    (c) Suspension of Certain Quota Provisions.--The joint 
resolution entitled ``A joint resolution relating to corn and 
wheat marketing quotas under the Agricultural Adjustment Act of 
1938, as amended'', approved May 26, 1941 (7 U.S.C. 1330 and 
1340), shall not be applicable to the crops of wheat planted 
for harvest in the calendar years 1996 through 2002.

SEC. 172. EFFECT OF AMENDMENTS.

    (a) Effect on Prior Crops.--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 to 
carry out a price support or production adjustment program for 
any of the 1991 through 1995 crops of an agricultural commodity 
established under a provision of law in effect immediately 
before the date of 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 before the date of 
enactment of this title.

     Subtitle G--Commission on 21st Century Production Agriculture

SEC. 181. ESTABLISHMENT.

    There is established a commission to be known as the 
``Commission on 21st Century Production Agriculture'' (in this 
subtitle referred to as the ``Commission'').

SEC. 182. COMPOSITION.

    (a) Membership and Appointment.--The Commission shall be 
composed of 11 members, appointed as follows:
            (1) Three members shall be appointed by the 
        President.
            (2) Four members shall be appointed by the Chairman 
        of the Committee on Agriculture of the House of 
        Representatives in consultation with the ranking 
        minority member of the Committee.
            (3) Four members shall be appointed by the Chairman 
        of the Committee on Agriculture, Nutrition, and 
        Forestry of the Senate in consultation with the ranking 
        minority member of the Committee.
    (b) Qualifications.--At least 1 of the members appointed 
under each of paragraphs (1), (2), and (3) of subsection (a) 
shall be an individual who is primarily involved in production 
agriculture. All other members of the Commission shall be 
appointed from among individuals having knowledge and 
experience in agricultural production, marketing, finance, or 
trade.
    (c) Term of Members; Vacancies.--A member of the Commission 
shall be appointed for the life of the Commission. A vacancy on 
the Commission shall not affect its powers, but shall be filled 
in the same manner as the original appointment was made.
    (d) Time for Appointment; First Meeting.--The members of 
the Commission shall be appointed not later than October 1, 
1997. The Commission shall convene its first meeting to carry 
out its duties under this subtitle 30 days after 6 members of 
the Commission have been appointed.
    (e) Chairperson.--The chairperson of the Commission shall 
be designated jointly by the Chairman of the Committee on 
Agriculture of the House of Representatives and the Chairman of 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate from among the members of the Commission.

SEC. 183. COMPREHENSIVE REVIEW OF PAST AND FUTURE OF PRODUCTION 
                    AGRICULTURE.

    (a) Initial Review.--The Commission shall conduct a 
comprehensive review of changes in the condition of production 
agriculture in the United States since the date of enactment of 
this title and the extent to which the changes are the result 
of this title and the amendments made by this title. The review 
shall include the following:
            (1) An assessment of the initial success of 
        production flexibility contracts in supporting the 
        economic viability of farming in the United States.
            (2) An assessment of economic risks to farms 
        delineated by size of farm operation (such as small, 
        medium, or large farms) and region of production.
            (3) An assessment of the food security situation in 
        the United States in the areas of trade, consumer 
        prices, international competitiveness of United States 
        production agriculture, food supplies, and humanitarian 
        relief.
            (4) An assessment of the changes in farmland values 
        and agricultural producer incomes since the date of 
        enactment of this title.
            (5) An assessment of the extent to which regulatory 
        relief for agricultural producers has been enacted and 
        implemented, including the application of cost/benefit 
        principles in the issuance of agricultural regulations.
            (6) An assessment of the extent to which tax relief 
        for agricultural producers has been enacted in the form 
        of capital gains tax reductions, estate tax exemptions, 
        and mechanisms to average tax loads over high- and low-
        income years.
            (7) An assessment of the effect of any Federal 
        Government interference in agricultural export markets, 
        such as the imposition of trade embargoes, and the 
        degree of implementation and success of international 
        trade agreements and United States export programs.
            (8) An assessment of the likely affect of the sale, 
        lease, or transfer of farm poundage quota for peanuts 
        across State lines.
    (b) Subsequent Review.--The Commission shall conduct a 
comprehensive review of the future of production agriculture in 
the United States and the appropriate role of the Federal 
Government in support of production agriculture. The review 
shall include the following:
            (1) An assessment of changes in the condition of 
        production agriculture in the United States since the 
        initial review conducted under subsection (a).
            (2) Identification of the appropriate future 
        relationship of the Federal Government with production 
        agriculture after 2002.
            (3) An assessment of the personnel and 
        infrastructure requirements of the Department of 
        Agriculture necessary to support the future 
        relationship of the Federal Government with production 
        agriculture.
            (4) An assessment of economic risks to farms 
        delineated by size of farm operation (such as small, 
        medium, or large farms) and region of production.
    (c) Recommendations.--In carrying out the subsequent review 
under subsection (b), the Commission shall develop specific 
recommendations for legislation to achieve the appropriate 
future relationship of the Federal Government with production 
agriculture identified under subsection (a)(2).

SEC. 184. REPORTS.

    (a) Report on Initial Review.--Not later than June 1, 1998, 
the Commission shall submit to the President, the Committee on 
Agriculture of the House of Representatives, and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
containing the results of the initial review conducted under 
section 183(a).
    (b) Report on Subsequent Review.--Not later than January 1, 
2001, the Commission shall submit to the President and the 
congressional committees specified in subsection (a) a report 
containing the results of the subsequent review conducted under 
section 183(b).

SEC. 185. POWERS.

    (a) Hearings.--The Commission may, for the purpose of 
carrying out this subtitle, conduct such hearings, sit and act 
at such times, take such testimony, and receive such evidence, 
as the Commission considers appropriate.
    (b) Assistance From Other Agencies.--The Commission may 
secure directly from any department or agency of the Federal 
Government such information as may be necessary for the 
Commission to carry out its duties under this subtitle. On the 
request of the chairperson of the Commission, the head of the 
department or agency shall, to the extent permitted by law, 
furnish such information to the Commission.
    (c) Mail.--The Commission may use the United States mails 
in the same manner and under the same conditions as the 
departments and agencies of the Federal Government.
    (d) Assistance From Secretary.--The Secretary shall provide 
to the Commission appropriate office space and such reasonable 
administrative and support services as the Commission may 
request.

SEC. 186. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet on a regular basis 
(as determined by the chairperson) and at the call of the 
chairperson or a majority of its members.
    (b) Quorum.--A majority of the members of the Commission 
shall constitute a quorum for the transaction of business.

SEC. 187. PERSONNEL MATTERS.

    (a) Compensation.--Each member of the Commission shall 
serve without compensation, but shall be allowed travel 
expenses including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code, when 
engaged in the performance of Commission duties.
    (b) Staff.--
            (1) Appointment.--The Commission shall appoint a 
        staff director, who shall be paid at a rate not to 
        exceed the maximum rate of basic pay under section 5376 
        of title 5, United States Code, and such professional 
        and clerical personnel as may be reasonable and 
        necessary to enable the Commission to carry out its 
        duties under this subtitle without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and without 
        regard to the provisions of chapter 51 and subchapter 
        III of chapter 53 of such title, or any other provision 
        of law, relating to the number, classification, and 
        General Schedule rates.
            (2) Limitation on compensation.--No employee 
        appointed under this subsection (other than the staff 
        director) may be compensated at a rate to exceed the 
        maximum rate applicable to level GS-15 of the General 
        Schedule.
    (c) Detailed Personnel.--On the request of the chairperson 
of the Commission, the head of any department or agency of the 
Federal Government is authorized to detail, without 
reimbursement, any personnel of the department or agency to the 
Commission to assist the Commission in carrying out its duties 
under this section. The detail of any individual may not result 
in the interruption or loss of civil service status or other 
privilege of the individual.

SEC. 188. TERMINATION OF COMMISSION.

    The Commission shall terminate on submission of the final 
report required by section 184.

             Subtitle H--Miscellaneous Commodity Provisions

SEC. 191. OPTIONS PILOT PROGRAM.

    (a) Pilot Programs Authorized.--Until December 31, 2002, 
the Secretary of Agriculture may conduct a pilot program for 1 
or more agricultural commodities supported under this title to 
ascertain whether futures and options contracts can provide 
producers with reasonable protection from the financial risks 
of fluctuations in price, yield, and income inherent in the 
production and marketing of the commodities. The pilot program 
shall be an alternative to other related programs of the 
Department of Agriculture.
    (b) Distribution of Pilot Program.--For each agricultural 
commodity included in the pilot program, the Secretary may 
operate the pilot program in not more than 100 counties, except 
that not more than 6 of the counties may be located in any 1 
State. The pilot program for a commodity shall not be operated 
in any county for more than 3 of the 1996 through 2002 calendar 
years.
    (c) Eligible Participants.--In operating the pilot program, 
the Secretary may enter into contract with a producer who--
            (1) is eligible for a production flexibility 
        contract, a marketing assistance loan, or other 
        assistance under this title;
            (2) volunteers to participate in the pilot program;
            (3) operates a farm located in a county selected 
        for the pilot program; and
            (4) meets such other eligibility requirements as 
        the Secretary may establish.
    (d) Notice to Producers.--The Secretary shall provide 
notice to each producer participating in the pilot program 
that--
            (1) the participation of the producer is voluntary; 
        and
            (2) neither the United States, the Commodity Credit 
        Corporation, the Federal Crop Insurance Corporation, 
        the Department of Agriculture, nor any other Federal 
        agency is authorized to guarantee that participants in 
        the pilot program will be better or worse off 
        financially as a result of participation in the pilot 
        program than the producer would have been if the 
        producer had not participated in the pilot program.
    (e) Contracts.--The Secretary shall set forth in each 
contract under the pilot program the terms and conditions for 
participation in the pilot program and the notice required by 
subsection (d).
    (f) Eligible Markets.--Trades for futures and options 
contracts under the pilot program shall be carried out on 
commodity futures and options markets designated as contract 
markets under the Commodity Exchange Act (7 U.S.C. 1 et seq.)
    (g) Recordkeeping.--A producer participating in the pilot 
program shall compile, maintain, and submit (or authorize the 
compilation, maintenance, and submission) of such documentation 
as the regulations governing the pilot program require.
    (h) Use of Commodity Credit Corporation.--The Secretary 
shall fund and operate the pilot program through the Commodity 
Credit Corporation. To the maximum extent practicable, the 
Secretary shall operate the pilot program in a budget neutral 
manner.
    (i) Conforming Repeal.--The Options Pilot Program Act of 
1990 (subtitle E of title XI of Public Law 101-624; 7 U.S.C. 
1421 note) is repealed.

SEC. 192. RISK MANAGEMENT EDUCATION.

    In consultation with the Commodity Futures Trading 
Commission, the Secretary shall provide such education in 
management of the financial risks inherent in the production 
and marketing of agricultural commodities as the Secretary 
considers appropriate. As part of such educational activities, 
the Secretary may develop and implement programs to facilitate 
the participation of agricultural producers in commodity 
futures trading programs, forward contracting options, and 
insurance protection programs by assisting and training 
producers in the usage of such programs. In implementing this 
authority, the Secretary may use existing research and 
extension authorities and resources of the Department of 
Agriculture.

SEC. 193. CROP INSURANCE.

    (a) Catastrophic Risk Protection.--
            (1) Single delivery.--Section 508(b)(4) of the 
        Federal Crop Insurance Act (7 U.S.C. 1508(b)(4)) is 
        amended by adding at the end the following:
                    ``(C) Delivery of coverage.--
                            ``(i) In general.--In full 
                        consultation with approved insurance 
                        providers, the Secretary may continue 
                        to offer catastrophic risk protection 
                        in a State (or a portion of a State) 
                        through local offices of the Department 
                        if the Secretary determines that there 
                        is an insufficient number of approved 
                        insurance providers operating in the 
                        State or portion of the State to 
                        adequately provide catastrophic risk 
                        protection coverage to producers.
                            ``(ii) Coverage by approved 
                        insurance providers.--To the extent 
                        that catastrophic risk protection 
                        coverage by approved insurance 
                        providers is sufficiently available in 
                        a State (or a portion of a State) as 
                        determined by the Secretary, only 
                        approved insurance providers may 
                        provide the coverage in the State or 
                        portion of the State.
                            ``(iii) Timing of determinations.--
                        Not later than 90 days after the date 
                        of enactment of this subparagraph, the 
                        Secretary shall announce the results of 
                        the determinations under clause (i) for 
                        policies for the 1997 crop year. For 
                        subsequent crop years, the Secretary 
                        shall make the announcement not later 
                        than April 30 of the year preceding the 
                        year in which the crop will be 
                        produced, or at such other times during 
                        the year as the Secretary finds 
                        practicable in consultation with 
                        affected crop insurance providers for 
                        those States (or portions of States) in 
                        which catastrophic coverage remains 
                        available through local offices of the 
                        Department.
                            ``(iv) Current policies.--This 
                        clause shall take effect beginning with 
                        the 1997 crop year. Subject to clause 
                        (ii) all catastrophic risk protection 
                        policies written by local offices of 
                        the Department shall be transferred to 
                        the approved insurance provider for 
                        performance of all sales, service, and 
                        loss adjustment functions. Any fees in 
                        connection with such policies that are 
                        not yet collected at the time of the 
                        transfer shall be payable to the 
                        approved insurance providers assuming 
                        the policies. The transfer process for 
                        policies for the 1997 crop year with 
                        sales closing dates before January 1, 
                        1997, shall begin at the time of the 
                        Secretary's announcement under clause 
                        (iii) and be completed by the sales 
                        closing date for the crop and county. 
                        The transfer process for all subsequent 
                        policies (including policies for the 
                        1998 and subsequent crop years) shall 
                        begin at a date that permits the 
                        process to be completed not later than 
                        45 days before the sales closing 
                        date.''.
            (2) Waiver of mandatory linkage.--Section 508(b)(7) 
        of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)) 
        is amended by striking subparagraph (A) and inserting 
        the following:
                    ``(A) In general.--Effective for the 
                spring-planted 1996 and subsequent crops (and 
                fall-planted 1996 crops at the option of the 
                Secretary), to be eligible for any payment or 
                loan under the Agricultural Market Transition 
                Act, for the conservation reserve program, or 
                for any benefit described in section 371 of the 
                Consolidated Farm and Rural Development Act (7 
                U.S.C. 2008f), a person shall--
                            ``(i) obtain at least the 
                        catastrophic level of insurance for 
                        each crop of economic significance in 
                        which the person has an interest; or
                            ``(ii) provide a written waiver to 
                        the Secretary that waives any 
                        eligibility for emergency crop loss 
                        assistance in connection with the 
                        crop.''.
            (3) Special rule for 1996.--
                    (A) Effective period.--This paragraph shall 
                apply only to the 1996 crop year.
                    (B) Availability.--During a period of not 
                less than 2 weeks, but not more than 4 weeks, 
                beginning on the date of enactment of this 
                title, the Secretary shall provide producers 
                with an opportunity to obtain catastrophic risk 
                protection insurance under section 508(b) of 
                the Federal Crop Insurance Act (7 U.S.C. 
                1508(b)) for a spring-planted crop, and limited 
                additional coverage for malting barley under 
                the Malting Barley Price and Quality 
                Endorsement. The Federal Crop Insurance 
                Corporation may attach such limitations and 
                restrictions on obtaining insurance during this 
                period as the Corporation considers necessary 
                to maintain the actuarial soundness of the crop 
                insurance program.
                    (C) Attachment.--Insurance coverage under 
                any policy obtained under this paragraph during 
                the extended sales period shall not attach 
                until 10 days after the application.
                    (D) Cancellation.--During the extended 
                period, a producer may cancel a catastrophic 
                risk protection policy if--
                            (i) the policy is a continuation of 
                        a policy that was obtained for a 
                        previous crop year; and
                            (ii) the cancellation request is 
                        made before the acreage reporting date 
                        for the policy for the 1996 crop year.
    (b) Crop Insurance Pilot Project.--
            (1) Coverage.--The Secretary of Agriculture shall 
        develop and administer a pilot project for crop 
        insurance coverage that indemnifies crop losses due to 
        a natural disaster such as insect infestation or 
        disease.
            (2) Actuarial soundness.--A pilot project under 
        this paragraph shall be actuarially sound, as 
        determined by the Secretary and administered at no net 
        cost.
            (3) Duration.--A pilot project under this paragraph 
        shall be of two years' duration.
    (c) Crop Insurance for Nursery Crops.--Section 508(a)(6) of 
the Federal Crop Insurance Act (7 U.S.C. 1508(a)(6)) is amended 
by adding at the end the following:
                    ``(D) Addition of nursery crops.--Not later 
                than 2 years after the date of enactment of 
                this subparagraph, the Corporation shall 
                conduct a study and limited pilot program on 
                the feasibility of insuring nursery crops.''.
    (d) Marketing Windows.--Section 508(j) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(j)) is amended by adding at the 
end the following:
            ``(4) Marketing windows.--The Corporation shall 
        consider marketing windows in determining whether it is 
        feasible to require planting during a crop year.''.
    (e) Funding.--
            (1) Mandatory expenses.--Section 516(a)(2) of the 
        Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is 
        amended--
                    (A) by inserting ``and'' at the end of 
                subparagraph (A);
                    (B) by striking ``; and'' at the end of 
                subparagraph (B) and inserting a period; and
                    (C) by striking subparagraph (C).
            (2) Funding of sales commissions.--Section 516(b) 
        of the Federal Crop Insurance Act (7 U.S.C. 1516(b)) is 
        amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(A) In general'' 
                        and all that follows through 
                        ``subparagraph (B), in'' and inserting 
                        ``In''; and
                            (ii) by striking subparagraph (B); 
                        and
                    (B) in paragraph (2)(B), by striking 
                ``subject to paragraph (1)(B),''.
            (3) Other expenses.--Section 516(b)(2)(A) of the 
        Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)(A)) is 
        amended by striking ``, noninsured assistance 
        benefits,''.
    (f) Limitation on Multiple Benefits for Same Loss.--Section 
508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is 
amended by adding at the end the following:
    ``(n) Limitation on Multiple Benefits for Same Loss.--If a 
producer who is eligible to receive benefits under catastrophic 
risk protection under subsection (b) is also eligible to 
receive assistance for the same loss under any other program 
administered by the Secretary, the producer shall be required 
to elect whether to receive benefits under this title or under 
the other program, but not both. A producer who purchases 
additional coverage under subsection (c) may also receive 
assistance for the same loss under other programs administered 
by the Secretary, except that the amount received for the loss 
under the additional coverage together with the amount received 
under the other programs may not exceed the amount of the 
actual loss of the producer.''.

SEC. 194. ESTABLISHMENT OF OFFICE OF RISK MANAGEMENT.

    (a) Establishment.--The Department of Agriculture 
Reorganization Act of 1994 is amended by inserting after 
section 226 (7 U.S.C. 6932) the following new section:

``SEC. 226A. OFFICE OF RISK MANAGEMENT.

    ``(a) Establishment.--Subject to subsection (e), the 
Secretary shall establish and maintain in the Department an 
independent Office of Risk Management.
    ``(b) Functions of the Office of Risk Management.--The 
Office of Risk Management shall have jurisdiction over the 
following functions:
            ``(1) Supervision of the Federal Crop Insurance 
        Corporation.
            ``(2) Administration and oversight of all aspects, 
        including delivery through local offices of the 
        Department, of all programs authorized under the 
        Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
            ``(3) Any pilot or other programs involving revenue 
        insurance, risk management savings accounts, or the use 
        of the futures market to manage risk and support farm 
        income that may be established under the Federal Crop 
        Insurance Act or other law.
            ``(4) Such other functions as the Secretary 
        considers appropriate.
    ``(c) Administrator.--
            ``(1) Appointment.--The Office of Risk Management 
        shall be headed by an Administrator who shall be 
        appointed by the Secretary.
            ``(2) Manager.--The Administrator of the Office of 
        Risk Management shall also serve as Manager of the 
        Federal Crop Insurance Corporation.
    ``(d) Resources.--
            ``(1) Functional coordination.--Certain functions 
        of the Office of Risk Management, such as human 
        resources, public affairs, and legislative affairs, may 
        be provided by a consolidation of such functions under 
        the Under Secretary of Agriculture for Farm and Foreign 
        Agricultural Services.
            ``(2) Minimum provisions.--Notwithstanding 
        paragraph (1) or any other provision of law or order of 
        the Secretary, the Secretary shall provide the Office 
        of Risk Management with human and capital resources 
        sufficient for the Office to carry out its functions in 
        a timely and efficient manner.''.
    (b) Fiscal Year 1996 Funding.--From funds appropriated for 
the salaries and expenses of the Consolidated Farm Service 
Agency in the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act, 1996 
(Public Law 104-37), the Secretary of Agriculture may use such 
sums as necessary for the salaries and expenses of the Office 
of Risk Management established under subsection (a).
    (c) Conforming Amendment.--Section 226(b) of the Act (7 
U.S.C. 6932(b)) is amended by striking paragraph (2).

SEC. 195. REVENUE INSURANCE.

    Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 
1508(h)) is amended by adding at the end the following:
            ``(9) Revenue insurance pilot program.--
                    ``(A) In general.--Not later than December 
                31, 1996, the Secretary shall carry out a pilot 
                program in a limited number of counties, as 
                determined by the Secretary, for crop years 
                1997, 1998, 1999, and 2000, under which a 
                producer of wheat, feed grains, soybeans, or 
                such other commodity as the Secretary considers 
                appropriate may elect to receive insurance 
                against loss of revenue, as determined by the 
                Secretary.
                    ``(B) Administration.--Revenue insurance 
                under this paragraph shall--
                            ``(i) be offered through 
                        reinsurance arrangements with private 
                        insurance companies;
                            ``(ii) offer at least a minimum 
                        level of coverage that is an 
                        alternative to catastrophic crop 
                        insurance;
                            ``(iii) be actuarially sound; and
                            ``(iv) require the payment of 
                        premiums and administrative fees by an 
                        insured producer.''.

SEC. 196. ADMINISTRATION AND OPERATION OF NONINSURED CROP ASSISTANCE 
                    PROGRAM.

    (a) Operation and Administration of Program.--
            (1) In general.--In the case of an eligible crop 
        described in paragraph (2), the Secretary of 
        Agriculture shall operate a noninsured crop disaster 
        assistance program to provide coverage equivalent to 
        the catastrophic risk protection otherwise available 
        under section 508(b) of the Federal Crop Insurance Act 
        (7 U.S.C. 1508(b)). The Secretary shall carry out this 
        section through the Consolidated Farm Service Agency 
        (in this section referred to as the ``Agency'').
            (2) Eligible crops.--
                    (A) In general.--In this section, the term 
                ``eligible crop'' means each commercial crop or 
                other agricultural commodity (except 
                livestock)--
                            (i) for which catastrophic risk 
                        protection under section 508(b) of the 
                        Federal Crop Insurance Act (7 U.S.C. 
                        1508(b)) is not available; and
                            (ii) that is produced for food or 
                        fiber.
                    (B) Crops specifically included.--The term 
                ``eligible crop'' shall include floricultural, 
                ornamental nursery, and Christmas tree crops, 
                turfgrass sod, seed crops, aquaculture 
                (including ornamental fish), and industrial 
                crops.
            (3) Cause of loss.--To qualify for assistance under 
        this section, the losses of the noninsured commodity 
        shall be due to drought, flood, or other natural 
        disaster, as determined by the Secretary.
    (b) Application for Noninsured Crop Disaster Assistance.--
            (1) Timely application.--To be eligible for 
        assistance under this section, a producer shall submit 
        an application for noninsured crop disaster assistance 
        at a local office of the Department. The application 
        shall be in such form, contain such information, and be 
        submitted at such time as the Secretary may require.
            (2) Records.--A producer shall provide records, as 
        required by the Secretary, of crop acreage, acreage 
        yields, and production.
            (3) Acreage reports.--A producer shall provide 
        reports on acreage planted or prevented from being 
        planted, as required by the Secretary, by the 
        designated acreage reporting date for the crop and 
        location as established by the Secretary.
    (c) Loss Requirements.--
            (1) Required area loss.--A producer of an eligible 
        crop shall not receive noninsured crop disaster 
        assistance unless the average yield for that crop, or 
        an equivalent measure in the event yield data are not 
        available, in an area falls below 65 percent of the 
        expected area yield, as established by the Secretary.
            (2) Prevented planting.--Subject to paragraph (1), 
        the Secretary shall make a prevented planting 
        noninsured crop disaster assistance payment if the 
        producer is prevented from planting more than 35 
        percent of the acreage intended for the eligible crop 
        because of drought, flood, or other natural disaster, 
        as determined by the Secretary.
            (3) Reduced yields.--Subject to paragraph (1), the 
        Secretary shall make a reduced yield noninsured crop 
        disaster assistance payment to a producer if the total 
        quantity of the eligible crop that the producer is able 
        to harvest on any farm is, because of drought, flood, 
        or other natural disaster as determined by the 
        Secretary, less than 50 percent of the expected 
        individual yield for the crop, as determined by the 
        Secretary, factored for the interest of the producer 
        for the crop.
    (d) Payment.--The Secretary shall make available to a 
producer eligible for noninsured assistance under this section 
a payment computed by multiplying--
            (1) the quantity that is less than 50 percent of 
        the established yield for the crop; by
            (2)(A) in the case of each of the 1996 through 1998 
        crop years, 60 percent of the average market price for 
        the crop (or any comparable coverage determined by the 
        Secretary); or
            (B) in the case of each of the 1999 and subsequent 
        crop years, 55 percent of the average market price for 
        the crop (or any comparable coverage determined by the 
        Secretary); by
            (3) a payment rate for the type of crop (as 
        determined by the Secretary) that--
                    (A) in the case of a crop that is produced 
                with a significant and variable harvesting 
                expense, reflects the decreasing cost incurred 
                in the production cycle for the crop that is--
                            (i) harvested;
                            (ii) planted but not harvested; and
                            (iii) prevented from being planted 
                        because of drought, flood, or other 
                        natural disaster (as determined by the 
                        Secretary); and
                    (B) in the case of a crop that is not 
                produced with a significant and variable 
                harvesting expense, is determined by the 
                Secretary.
    (e) Yield Determinations.--
            (1) Establishment.--The Secretary shall establish 
        farm yields for purposes of providing noninsured crop 
        disaster assistance under this section.
            (2) Actual production history.--The Secretary shall 
        determine yield coverage using the actual production 
        history of the producer over a period of not less than 
        the 4 previous consecutive crop years and not more than 
        10 consecutive crop years. Subject to paragraph (3), 
        the yield for the year in which noninsured crop 
        disaster assistance is sought shall be equal to the 
        average of the actual production history of the 
        producer during the period considered.
            (3) Assignment of yield.--If a producer does not 
        submit adequate documentation of production history to 
        determine a crop yield under paragraph (2), the 
        Secretary shall assign to the producer a yield equal to 
        not less than 65 percent of the transitional yield of 
        the producer (adjusted to reflect actual production 
        reflected in the records acceptable to the Secretary 
        for continuous years), as specified in regulations 
        issued by the Secretary based on production history 
        requirements.
            (4) Prohibition on assigned yields in certain 
        counties.--
                    (A) In general.--
                            (i) Documentation.--If sufficient 
                        data are available to demonstrate that 
                        the acreage of a crop in a county for 
                        the crop year has increased by more 
                        than 100 percent over any year in the 
                        preceding 7 crop years or, if data are 
                        not available, if the acreage of the 
                        crop in the county has increased 
                        significantly from the previous crop 
                        years, a producer must provide such 
                        detailed documentation of production 
                        costs, acres planted, and yield for the 
                        crop year for which benefits are being 
                        claimed as is required by the 
                        Secretary. If the Secretary determines 
                        that the documentation provided is not 
                        sufficient, the Secretary may require 
                        documenting proof that the crop, had 
                        the crop been harvested, could have 
                        been marketed at a reasonable price.
                            (ii) Prohibition.--Except as 
                        provided in subparagraph (B), a 
                        producer who produces a crop on a farm 
                        located in a county described in clause 
                        (i) may not obtain an assigned yield.
                    (B) Exception.--A crop or a producer shall 
                not be subject to this subsection if--
                            (i) the planted acreage of the 
                        producer for the crop has been 
                        inspected by a third party acceptable 
                        to the Secretary; or
                            (ii)(I) the County Executive 
                        Director and the State Executive 
                        Director recommend an exemption from 
                        the requirement to the Administrator of 
                        the Agency; and
                            (II) the Administrator approves the 
                        recommendation.
            (5) Limitation on receipt of subsequent assigned 
        yield.--A producer who receives an assigned yield for 
        the current year of a natural disaster because required 
        production records were not submitted to the local 
        office of the Department shall not be eligible for an 
        assigned yield for the year of the next natural 
        disaster unless the required production records of the 
        previous 1 or more years (as applicable) are provided 
        to the local office.
            (6) Yield variations due to different farming 
        practices.--The Secretary shall ensure that noninsured 
        crop disaster assistance accurately reflects 
        significant yield variations due to different farming 
        practices, such as between irrigated and nonirrigated 
        acreage.
    (f) Contract Payments.--A producer who has received a 
guaranteed payment for production, as opposed to delivery, of a 
crop pursuant to a contract shall have the production of the 
producer adjusted upward by the amount of the production equal 
to the amount of the contract payment received.
    (g) Use of Commodity Credit Corporation.--The Secretary may 
use the funds of the Commodity Credit Corporation to carry out 
this section.
    (h) Exclusions.--Noninsured crop disaster assistance under 
this section shall not cover losses due to--
            (1) the neglect or malfeasance of the producer;
            (2) the failure of the producer to reseed to the 
        same crop in those areas and under such circumstances 
        where it is customary to reseed; or
            (3) the failure of the producer to follow good 
        farming practices, as determined by the Secretary.
    (i) Payment and Income Limitations.--
            (1) Definitions.--In this subsection:
                    (A) Person.--The term ``person'' has the 
                meaning provided the term in regulations issued 
                by the Secretary. The regulations shall 
                conform, to the extent practicable, to the 
                regulations defining the term ``person'' issued 
                under section 1001 of the Food Security Act of 
                1985 (7 U.S.C. 1308).
                    (B) Qualifying gross revenues.--The term 
                ``qualifying gross revenues'' means--
                            (i) if a majority of the gross 
                        revenue of the person is received from 
                        farming, ranching, and forestry 
                        operations, the gross revenue from the 
                        farming, ranching, and forestry 
                        operations of the person; and
                            (ii) if less than a majority of the 
                        gross revenue of the person is received 
                        from farming, ranching, and forestry 
                        operations, the gross revenue of the 
                        person from all sources.
            (2) Payment limitation.--The total amount of 
        payments that a person shall be entitled to receive 
        annually under this section may not exceed $100,000.
            (3) Limitation on multiple benefits for same 
        loss.--If a producer who is eligible to receive 
        benefits under this section is also eligible to receive 
        assistance for the same loss under any other program 
        administered by the Secretary, the producer shall be 
        required to elect whether to receive benefits under 
        this section or under the other program, but not both.
            (4) Income limitation.--A person who has qualifying 
        gross revenues in excess of the amount specified in 
        section 2266(a) of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 1421 note) (as in 
        effect on November 28, 1990) during the taxable year 
        (as determined by the Secretary) shall not be eligible 
        to receive any noninsured assistance payment under this 
        section.
            (5) Regulations.--The Secretary shall issue 
        regulations prescribing such rules as the Secretary 
        determines necessary to ensure a fair and equitable 
        application of section 1001 of the Food Security Act of 
        1985 (7 U.S.C. 1308), the general payment limitation 
        regulations of the Secretary, and the limitations 
        established under this subsection.
    (j) Conforming Repeal.--Section 519 of the Federal Crop 
Insurance Act (7 U.S.C. 1519) is repealed.

                      TITLE II--AGRICULTURAL TRADE

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

SEC. 201. FOOD AID TO DEVELOPING COUNTRIES.

    (a) In General.--Section 3 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1691a) is 
amended to read as follows:

``SEC. 3. FOOD AID TO DEVELOPING COUNTRIES.

    ``(a) Policy.--In light of the Uruguay Round Agreement on 
Agriculture and the Ministerial Decision on Measures Concerning 
the Possible Negative Effects of the Reform Program on Least-
Developed and Net-Food Importing Developing Countries, the 
United States reaffirms the commitment of the United States to 
providing food aid to developing countries.
    ``(b) Sense of Congress.--It is the sense of Congress 
that--
            ``(1) the President should initiate consultations 
        with other donor nations to consider appropriate levels 
        of food aid commitments to meet the legitimate needs of 
        developing countries; and
            ``(2) the United States should increase its 
        contribution of bona fide food assistance to developing 
        countries consistent with the Agreement on 
        Agriculture.''.
    (b) Conforming Amendment.--Section 411 of the Uruguay Round 
Agreements Act is amended by striking subsection (e) (19 U.S.C. 
3611).

SEC. 202. TRADE AND DEVELOPMENT ASSISTANCE.

    Section 101 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1701) is amended--
            (1) by striking ``developing countries'' each place 
        it appears and inserting ``developing countries and 
        private entities''; and
            (2) in subsection (b), by inserting ``and 
        entities'' before the period at the end.

SEC. 203. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE ENTITIES.

    Section 102 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1702) is amended to read as 
follows:

``SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES AND PRIVATE 
                    ENTITIES.

    ``(a) Priority.--In selecting agreements to be entered into 
under this title, the Secretary shall give priority to 
agreements providing for the export of agricultural commodities 
to developing countries that--
            ``(1) have the demonstrated potential to become 
        commercial markets for competitively priced United 
        States agricultural commodities;
            ``(2) are undertaking measures for economic 
        development purposes to improve food security and 
        agricultural development, alleviate poverty, and 
        promote broad-based equitable and sustainable 
        development; and
            ``(3) demonstrate the greatest need for food.
    ``(b) Private Entities.--An agreement entered into under 
this title with a private entity shall require such security, 
or such other provisions as the Secretary determines necessary, 
to provide reasonable and adequate assurance of repayment of 
the financing extended to the private entity.
    ``(c) Agricultural Market Development Plan.--
            ``(1) Definition of agricultural trade 
        organization.--In this subsection, the term 
        `agricultural trade organization' means a United States 
        agricultural trade organization that promotes the 
        export and sale of a United States agricultural 
        commodity and that does not stand to profit directly 
        from the specific sale of the commodity.
            ``(2) Plan.--The Secretary shall consider a 
        developing country for which an agricultural market 
        development plan has been approved under this 
        subsection to have the demonstrated potential to become 
        a commercial market for competitively priced United 
        States agricultural commodities for the purpose of 
        granting a priority under subsection (a).
            ``(3) Requirements.--
                    `(A) In general.--To be approved by the 
                Secretary, an agricultural market development 
                plan shall--
                            ``(i) be submitted by a developing 
                        country or private entity, in 
                        conjunction with an agricultural trade 
                        organization;
                            ``(ii) describe a project or 
                        program for the development and 
                        expansion of a commercial market for a 
                        United States agricultural commodity in 
                        a developing country, and the economic 
                        development of the country, using funds 
                        derived from the sale of agricultural 
                        commodities received under an agreement 
                        described in section 101;
                            ``(iii) provide for any matching 
                        funds that are required by the 
                        Secretary for the project or program;
                            ``(iv) provide for a results-
                        oriented means of measuring the success 
                        of the project or program; and
                            ``(v) provide for graduation to the 
                        use of non-Federal funds to carry out 
                        the project or program, consistent with 
                        requirements established by the 
                        Secretary.
                    ``(B) Agricultural trade organization.--The 
                project or program shall be designed and 
                carried out by the agricultural trade 
                organization.
                    ``(C) Additional requirements.--An 
                agricultural market development plan shall 
                contain such additional requirements as are 
                determined necessary by the Secretary.
            ``(4) Administrative costs.--
                    ``(A) In general.--The Secretary may make 
                funds made available to carry out this title 
                available for the reimbursement of 
                administrative expenses incurred by 
                agricultural trade organizations in developing, 
                implementing, and administering agricultural 
                market development plans, subject to such 
                requirements and in such amounts as the 
                Secretary considers appropriate.
                    ``(B) Duration.--The funds may be made 
                available to agricultural trade organizations 
                for the duration of the applicable agricultural 
                market development plan.
                    ``(C) Termination.--The Secretary may 
                terminate assistance made available under this 
                subsection if the agricultural trade 
                organization is not carrying out the approved 
                agricultural market development plan.''.

SEC. 204. TERMS AND CONDITIONS OF SALES.

    Section 103 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1703) is amended--
            (1) in subsection (a)(2)(A)--
                    (A) by striking ``a recipient country to 
                make''; and
                    (B) by striking ``such country'' and 
                inserting ``the appropriate country'';
            (2) in subsection (c), by striking ``less than 10 
        nor''; and
            (3) in subsection (d)--
                    (A) by striking ``recipient country'' and 
                inserting ``developing country or private 
                entity''; and
                    (B) by striking ``7'' and inserting ``5''.

SEC. 205. USE OF LOCAL CURRENCY PAYMENT.

    Section 104 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1704) is amended--
            (1) in subsection (a), by striking ``recipient 
        country'' and inserting ``developing country or private 
        entity''; and
            (2) in subsection (c)--
                    (A) by striking ``recipient country'' each 
                place it appears and inserting ``appropriate 
                developing country''; and
                    (B) in paragraph (3), by striking 
                ``recipient countries'' and inserting 
                ``appropriate developing countries''.

SEC. 206. VALUE-ADDED FOODS.

    Section 105 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1705) is repealed.

SEC. 207. ELIGIBLE ORGANIZATIONS.

    (a) In General.--Section 202 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1722) is 
amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Nonemergency Assistance.--
            ``(1) In general.--The Administrator may provide 
        agricultural commodities for nonemergency assistance 
        under this title through eligible organizations (as 
        described in subsection (d)) that have entered into an 
        agreement with the Administrator to use the commodities 
        in accordance with this title.
            ``(2) Limitation.--The Administrator may not deny a 
        request for funds submitted under this subsection 
        because the program for which the funds are requested--
                    ``(A) would be carried out by the eligible 
                organization in a foreign country in which the 
                Agency for International Development does not 
                have a mission, office, or other presence; or
                    ``(B) is not part of a development plan for 
                the country prepared by the Agency.''; and
            (2) in subsection (e)--
                    (A) in the subsection heading, by striking 
                ``Private Voluntary Organizations and 
                Cooperatives'' and inserting ``Eligible 
                Organizations'';
                    (B) in paragraph (1)--
                            (i) by striking ``$13,500,000'' and 
                        inserting ``$28,000,000''; and
                            (ii) by striking ``private 
                        voluntary organizations and 
                        cooperatives to assist such 
                        organizations and cooperatives'' and 
                        inserting ``eligible organizations 
                        described in subsection (d), to assist 
                        the organizations'';
                    (C) by striking paragraph (2) and inserting 
                the following:
            ``(2) Request for funds.--To receive funds made 
        available under paragraph (1), an eligible organization 
        described in subsection (d) shall submit a request for 
        the funds that is subject to approval by the 
        Administrator.''; and
                    (D) in paragraph (3), by striking ``a 
                private voluntary organization or cooperative, 
                the Administrator may provide assistance to 
                that organization or cooperative'' and 
                inserting ``an eligible organization, the 
                Administrator may provide assistance to the 
                eligible organization''.
    (b) Conforming Amendments.--Section 207 of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) 
is amended--
            (1) in subsection (a)(1), by striking ``a private 
        voluntary organization or cooperative'' each place it 
        appears and inserting ``an eligible organization''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``private 
                voluntary organizations and cooperatives'' and 
                inserting ``eligible organizations''; and
                    (B) in paragraph (2), by striking 
                ``organizations, cooperatives,'' and inserting 
                ``eligible organizations''.

SEC. 208. GENERATION AND USE OF FOREIGN CURRENCIES.

    Section 203 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1723) is amended--
            (1) in subsection (a), by inserting ``, or in a 
        country in the same region,'' after ``in the recipient 
        country'';
            (2) in subsection (b)--
                    (A) by inserting ``or in countries in the 
                same region,'' after ``in recipient 
                countries,''; and
                    (B) by striking ``10 percent'' and 
                inserting ``15 percent'';
            (3) in subsection (c), by inserting ``or in a 
        country in the same region,'' after ``in the recipient 
        country,''; and
            (4) in subsection (d)(2), by inserting ``or within 
        a country in the same region'' after ``within the 
        recipient country''.

SEC. 209. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC LAW 480.

    Section 204 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1724) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``amount 
                that'' and all that follows through the period 
                at the end and inserting ``amount that for each 
                of fiscal years 1996 through 2002 is not less 
                than 2,025,000 metric tons.'';
                    (B) in paragraph (2), by striking ``amount 
                that'' and all that follows through the period 
                at the end and inserting ``amount that for each 
                of fiscal years 1996 through 2002 is not less 
                than 1,550,000 metric tons.''; and
                    (C) in paragraph (3), by adding at the end 
                the following: ``No waiver shall be made before 
                the beginning of the applicable fiscal year.''; 
                and
            (2) in subsection (b)(1), by inserting before the 
        period at the end the following: ``and that not less 
        than 50 percent of the quantity of the bagged 
        commodities that are whole grain commodities be bagged 
        in the United States''.

SEC. 210. FOOD AID CONSULTATIVE GROUP.

    Section 205 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1725) is amended--
            (1) in subsection (a), by striking ``private 
        voluntary organizations, cooperatives and indigenous 
        non-governmental organizations'' and inserting 
        ``eligible organizations described in section 
        202(d)(1)'';
            (2) in subsection (b)--
                    (A) in paragraph (2), by striking ``for 
                International Affairs and Commodity Programs'' 
                and inserting ``of Agriculture for Farm and 
                Foreign Agricultural Services'';
                    (B) in paragraph (4), by striking ``and'' 
                at the end;
                    (C) in paragraph (5), by striking the 
                period at the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(6) representatives from agricultural producer 
        groups in the United States.'';
            (3) in the second sentence of subsection (d), by 
        inserting ``(but at least twice per year)'' after 
        ``when appropriate''; and
            (4) in subsection (f), by striking ``1995'' and 
        inserting ``2002''.

SEC. 211. SUPPORT OF NONGOVERNMENTAL ORGANIZATIONS.

    (a) In General.--Section 306(b) of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1727e(b)) is 
amended--
            (1) in the subsection heading, by striking 
        ``Indigenous Non-Governmental'' and inserting 
        ``Nongovernmental''; and
            (2) by striking ``utilization of indigenous'' and 
        inserting ``utilization of''.
    (b) Conforming Amendment.--Section 402 of the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1732) is 
amended by striking paragraph (6) and inserting the following:
            ``(6) Nongovernmental organization.--The term 
        `nongovernmental organization' means an organization 
        that works at the local level to solve development 
        problems in a foreign country in which the organization 
        is located, except that the term does not include an 
        organization that is primarily an agency or 
        instrumentality of the government of the foreign 
        country.''.

SEC. 212. COMMODITY DETERMINATIONS.

    Section 401 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1731) is amended--
            (1) by striking subsections (a) through (d) and 
        inserting the following:
    ``(a) Availability of Commodities.--No agricultural 
commodity shall be available for disposition under this Act if 
the Secretary determines that the disposition would reduce the 
domestic supply of the commodity below the supply needed to 
meet domestic requirements and provide adequate carryover (as 
determined by the Secretary), unless the Secretary determines 
that some part of the supply should be used to carry out urgent 
humanitarian purposes under this Act.'';
            (2) by redesignating subsections (e) and (f) as 
        subsections (b) and (c), respectively; and
            (3) in subsection (c) (as so redesignated), by 
        striking ``(e)(1)'' and inserting ``(b)(1)''.

SEC. 213. GENERAL PROVISIONS.

    Section 403 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1733) is amended--
            (1) in subsection (b)--
                    (A) in the subsection heading, by striking 
                ``Consultations'' and inserting ``Impact on 
                Local Farmers and Economy''; and
                    (B) by striking ``consult with'' and all 
                that follows through ``other donor 
                organizations to'';
            (2) in subsection (c)--
                    (A) by striking ``from countries''; and
                    (B) by striking ``for use'' and inserting 
                ``or use'';
            (3) in subsection (f)--
                    (A) by inserting ``or private entities, as 
                appropriate,'' after ``from countries''; and
                    (B) by inserting ``or private entities'' 
                after ``such countries''; and
            (4) in subsection (i)(2), by striking subparagraph 
        (C).

SEC. 214. AGREEMENTS.

    Section 404 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1734) is amended--
            (1) in subsection (a), by inserting ``with foreign 
        countries'' after ``Before entering into agreements'';
            (2) in subsection (b)(2)--
                    (A) by inserting ``with foreign countries'' 
                after ``with respect to agreements entered 
                into''; and
                    (B) by inserting before the semicolon at 
                the end the following: ``and broad-based 
                economic growth''; and
            (3) in subsection (c), by striking paragraph (1) 
        and inserting the following:
            ``(1) In general.--Agreements to provide assistance 
        on a multi-year basis to recipient countries or to 
        eligible organizations--
                    ``(A) may be made available under titles I 
                and III; and
                    ``(B) shall be made available under title 
                II.''.

SEC. 215. USE OF COMMODITY CREDIT CORPORATION.

    Section 406 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736) is amended--
            (1) in subsection (a), by striking ``shall'' and 
        inserting ``may'';
            (2) in subsection (b)--
                    (A) by striking ``this Act'' and inserting 
                ``titles II and III''; and
                    (B) by striking paragraph (4) and inserting 
                the following:
            ``(4) the vessel freight charges from United States 
        ports or designated Canadian transshipment ports, as 
        determined by the Secretary, to designated ports of 
        entry abroad;''; and
            (3) by striking subsection (d).

SEC. 216. ADMINISTRATIVE PROVISIONS.

    Section 407 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736a) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``or 
                private entity that enters into an agreement 
                under title I'' after ``importing country''; 
                and
                    (B) in paragraph (2), by adding at the end 
                the following: ``Resulting contracts may 
                contain such terms and conditions as the 
                Secretary determines are necessary and 
                appropriate.'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(A), by inserting 
                ``importer or'' before ``importing country''; 
                and
                    (B) in paragraph (2)(A), by inserting 
                ``importer or'' before ``importing country'';
            (3) in subsection (d)--
                    (A) by striking paragraph (2) and inserting 
                the following:
            ``(2) Freight procurement.--Notwithstanding the 
        Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 471 et seq.) or other similar 
        provisions of law relating to the making or performance 
        of Federal Government contracts, ocean transportation 
        under titles II and III may be procured on the basis of 
        full and open competitive procedures. Resulting 
        contracts may contain such terms and conditions as the 
        Administrator determines are necessary and 
        appropriate.''; and
                    (B) by striking paragraph (4);
            (4) in subsection (g)(2)--
                    (A) in subparagraph (B), by striking 
                ``and'' at the end;
                    (B) in subparagraph (C), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) an assessment of the progress towards 
                achieving food security in each country 
                receiving food assistance from the United 
                States Government, with special emphasis on the 
                nutritional status of the poorest populations 
                in each country.''; and
            (5) by striking subsection (h).

SEC. 217. EXPIRATION DATE.

    Section 408 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736b) is amended by striking 
``1995'' and inserting ``2002''.

SEC. 218. REGULATIONS.

    Section 409 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736c) is repealed.

SEC. 219. INDEPENDENT EVALUATION OF PROGRAMS.

    Section 410 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736d) is repealed.

SEC. 220. AUTHORIZATION OF APPROPRIATIONS.

    Section 412 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736f) is amended--
            (1) by striking subsections (b) and (c) and 
        inserting the following:
    ``(b) Transfer of Funds.--
            ``(1) In general.--Except as provided in paragraph 
        (2) and notwithstanding any other provision of law, the 
        President may direct that up to 15 percent of the funds 
        available for any fiscal year for carrying out any 
        title of this Act be used to carry out any other title 
        of this Act.
            ``(2) Title iii funds.--The President may direct 
        that up to 50 percent of the funds available for any 
        fiscal year for carrying out title III be used to carry 
        out title II.''; and
            (2) by redesignating subsections (d) and (e) as 
        subsections (c) and (d), respectively.

SEC. 221. COORDINATION OF FOREIGN ASSISTANCE PROGRAMS.

    Section 413 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736g) is amended by striking 
``this Act'' each place it appears and inserting ``title III''.

SEC. 222. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    Title IV of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1731 et seq.) is amended by 
adding at the end the following:

``SEC. 415. MICRONUTRIENT FORTIFICATION PILOT PROGRAM.

    ``(a) In General.--Subject to the availability of practical 
technology and to cost effectiveness, not later than September 
30, 1997, the Secretary, in consultation with the 
Administrator, shall establish a micronutrient fortification 
pilot program under this Act. The purpose of the program shall 
be to--
            ``(1) assist developing countries in correcting 
        micronutrient dietary deficiencies among segments of 
        the populations of the countries; and
            ``(2) encourage the development of technologies for 
        the fortification of whole grains and other commodities 
        that are readily transferable to developing countries.
    ``(b) Selection of Participating Countries.--From among the 
countries eligible for assistance under this Act, the Secretary 
may select not more than 5 developing countries to participate 
in the pilot program.
    ``(c) Fortification.--Under the pilot program, whole grains 
and other commodities made available to a developing country 
selected to participate in the pilot program may be fortified 
with 1 or more micronutrients (including vitamin A, iron, and 
iodine) with respect to which a substantial portion of the 
population in the country is deficient. The commodity may be 
fortified in the United States or in the developing country.
    ``(d) Termination of Authority.--The authority to carry out 
the pilot program established under this section shall 
terminate on September 30, 2002.''.

SEC. 223. USE OF CERTAIN LOCAL CURRENCY.

    Title IV of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1731 et seq.) (as amended by 
section 222) is amended by adding at the end the following:

``SEC. 416. USE OF CERTAIN LOCAL CURRENCY.

    ``Local currency payments received by the United States 
pursuant to agreements entered into under title I (as in effect 
on November 27, 1990) may be utilized by the Secretary in 
accordance with section 108 (as in effect on November 27, 
1990).''.

SEC. 224. FARMER-TO-FARMER PROGRAM.

    Section 501 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1737) is amended--
            (1) in subsection (a), by striking paragraph (6) 
        and inserting the following:
            ``(6) to the extent that local currencies can be 
        used to meet the costs of a program established under 
        this section, augment funds of the United States that 
        are available for such a program through the use of 
        foreign currencies that accrue from the sale of 
        agricultural commodities under this Act, and local 
        currencies generated from other types of foreign 
        assistance activities, within the country where the 
        program is being conducted.''; and
            (2) in subsection (c)--
                    (A) by striking ``0.2'' and inserting 
                ``0.4'';
                    (B) by striking ``1991 through 1995'' and 
                inserting ``1996 through 2002''; and
                    (C) by striking ``0.1'' and inserting 
                ``0.2''.

SEC. 225. FOOD SECURITY COMMODITY RESERVE.

    (a) In General.--Title III of the Agricultural Act of 1980 
(7 U.S.C. 1736f-1 et seq.) is amended to read as follows:

              ``TITLE III--FOOD SECURITY COMMODITY RESERVE

``SEC. 301. SHORT TITLE.

    ``This title may be cited as the `Food Security Commodity 
Reserve Act of 1996'.

``SEC. 302. ESTABLISHMENT OF COMMODITY RESERVE.

    ``(a) In General.--To provide for a reserve solely to meet 
emergency humanitarian food needs in developing countries, the 
Secretary of Agriculture (referred to in this title as the 
`Secretary') shall establish a reserve stock of wheat, rice, 
corn, or sorghum, or any combination of the commodities, 
totalling not more than 4,000,000 metric tons for use as 
described in subsection (c).
    ``(b) Commodities in Reserve.--
            ``(1) In general.--The reserve established under 
        this section shall consist of--
                    ``(A) wheat in the reserve established 
                under the Food Security Wheat Reserve Act of 
                1980 as of the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 1996;
                    ``(B) wheat, rice, corn, and sorghum 
                (referred to in this section as `eligible 
                commodities') acquired in accordance with 
                paragraph (2) to replenish eligible commodities 
                released from the reserve, including wheat to 
                replenish wheat released from the reserve 
                established under the Food Security Wheat 
                Reserve Act of 1980 but not replenished as of 
                the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 1996; 
                and
                    ``(C) such rice, corn, and sorghum as the 
                Secretary may, at such time and in such manner 
                as the Secretary determines appropriate, 
                acquire as a result of exchanging an equivalent 
                value of wheat in the reserve established under 
                this section.
            ``(2) Replenishment of reserve.--
                    ``(A) In general.--Subject to subsection 
                (h), commodities of equivalent value to 
                eligible commodities in the reserve established 
                under this section may be acquired--
                            ``(i) through purchases--
                                    ``(I) from producers; or
                                    ``(II) in the market, if 
                                the Secretary determines that 
                                the purchases will not unduly 
                                disrupt the market; or
                            ``(ii) by designation by the 
                        Secretary of stocks of eligible 
                        commodities of the Commodity Credit 
                        Corporation.
                    ``(B) Funds.--Any use of funds to acquire 
                eligible commodities through purchases from 
                producers or in the market to replenish the 
                reserve must be authorized in an appropriations 
                Act.
    ``(c) Release of Eligible Commodities.--
            ``(1) Emergency assistance.--
                    ``(A) In general.--Notwithstanding 
                paragraph (2), to meet unanticipated need, the 
                Secretary may release eligible commodities in 
                any fiscal year, without regard to the 
                availability of domestic supply of the 
                commodities, to provide emergency assistance to 
                developing countries under title II of the 
                Agricultural Trade Development and Assistance 
                Act of 1954 (7 U.S.C. 1721 et seq.).
                    ``(B) Release for emergency assistance.--If 
                the eligible commodities needed to meet 
                unanticipated need cannot be made available in 
                a timely manner under normal means for 
                obtaining eligible commodities for food 
                assistance because of unanticipated need for 
                emergency assistance as provided under section 
                202(a) of the Agricultural Trade Development 
                and Assistance Act of 1954 (7 U.S.C. 1722(a)), 
                the Secretary may in any fiscal year release 
                from the reserve--
                            ``(i) up to 500,000 metric tons of 
                        wheat or the equivalent value of 
                        eligible commodities other than wheat; 
                        and
                            ``(ii) up to 500,000 metric tons of 
                        any eligible commodities under this 
                        paragraph that could have been released 
                        but were not released in prior fiscal 
                        years.
                    ``(C) Waiver of minimum tonnage 
                requirements.--Nothing in this paragraph shall 
                require a waiver under section 204(a)(3) of the 
                Agricultural Trade Development and Assistance 
                Act of 1954 (7 U.S.C. 1724(a)(3)) as a 
                prerequisite for the release of eligible 
                commodities under this paragraph.
            ``(2) Emergency food assistance.--Notwithstanding 
        any other provision of law, eligible commodities 
        designated or acquired for the reserve established 
        under this section may be released by the Secretary to 
        provide, on a donation or sale basis, emergency food 
        assistance to developing countries at such time as the 
        domestic supply of the eligible commodities is so 
        limited that quantities of the eligible commodities 
        cannot be made available for disposition under the 
        Agricultural Trade Development and Assistance Act of 
        1954 (7 U.S.C. 1691 et seq.) (other than disposition 
        for urgent humanitarian purposes under section 401 of 
        the Act (7 U.S.C. 1731)).
            ``(3) Processing of eligible commodities.--Eligible 
        commodities that are released from the reserve 
        established under this section may be processed in the 
        United States and shipped to a developing country when 
        conditions in the recipient country require processing.
            ``(4) Exchange.--The Secretary may exchange an 
        eligible commodity for another United States commodity 
        of equal value, including powdered milk, pulses, and 
        vegetable oil.
            ``(5) Use of normal commercial practices.--To the 
        maximum extent practicable consistent with the 
        fulfillment of the purposes of this section and the 
        effective and efficient administration of this section, 
        the Secretary shall use the usual and customary 
        channels, facilities, arrangements, and practices of 
        trade and commerce to carry out this subsection.
    ``(d) Management of Eligible Commodities.--The Secretary 
shall provide--
            ``(1) for the management of eligible commodities in 
        the reserve established under this section as to 
        location and quality of eligible commodities needed to 
        meet emergency situations; and
            ``(2) for the periodic rotation or replacement of 
        stocks of eligible commodities in the reserve to avoid 
        spoilage and deterioration of the commodities.
    ``(e) Treatment of Reserve Under Other Law.--Eligible 
commodities in the reserve established under this section shall 
not be--
            ``(1) considered a part of the total domestic 
        supply (including carryover) for the purpose of 
        subsection (c) or for the purpose of administering the 
        Agricultural Trade Development and Assistance Act of 
        1954 (7 U.S.C. 1691 et seq.); and
            ``(2) subject to any quantitative limitation on 
        exports that may be imposed under section 7 of the 
        Export Administration Act of 1979 (50 U.S.C. App. 
        2406).
    ``(f) Use of Commodity Credit Corporation.--
            ``(1) In general.--Subject to the limitations 
        provided in this section, the funds, facilities, and 
        authorities of the Commodity Credit Corporation shall 
        be used by the Secretary in carrying out this section, 
        except that any restriction applicable to the 
        acquisition, storage, or disposition of eligible 
        commodities owned or controlled by the Commodity Credit 
        Corporation shall not apply.
            ``(2) Reimbursement.--
                    ``(A) In general.--The Commodity Credit 
                Corporation shall be reimbursed for the release 
                of eligible commodities from funds made 
                available to carry out the Agricultural Trade 
                Development and Assistance Act of 1954 (7 
                U.S.C. 1691 et seq.).
                    ``(B) Basis for reimbursement.--The 
                reimbursement shall be made on the basis of the 
                lesser of--
                            ``(i) the actual costs incurred by 
                        the Commodity Credit Corporation with 
                        respect to the eligible commodity; or
                            ``(ii) the export market price of 
                        the eligible commodity (as determined 
                        by the Secretary) as of the time the 
                        eligible commodity is released from the 
                        reserve.
                    ``(C) Source of funds.--The reimbursement 
                may be made from funds appropriated for 
                subsequent fiscal years.
    ``(g) Finality of Determination.--Any determination by the 
Secretary under this section shall be final.
    ``(h) Termination of Authority.--
            ``(1) In general.--The authority to replenish 
        stocks of eligible commodities to maintain the reserve 
        established under this section shall terminate on 
        September 30, 2002.
            ``(2) Disposal of eligible commodities.--Eligible 
        commodities remaining in the reserve after September 
        30, 2002, shall be disposed of by release for use in 
        providing for emergency humanitarian food needs in 
        developing countries as provided in this section.''.
    (b) Conforming Amendment.--Section 208(d) of the 
Agricultural Trade Suspension Adjustment Act of 1980 (7 U.S.C. 
4001(d)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Applicability of certain provisions.--
        Subsections (c), (d), (e), and (f)(2) of section 302 of 
        the Food Security Commodity Reserve Act of 1996 shall 
        apply to commodities in any reserve established under 
        paragraph (1), except that the references to `eligible 
        commodities' in the subsections shall be deemed to be 
        references to `agricultural commodities'.''.

SEC. 226. PROTEIN BYPRODUCTS DERIVED FROM ALCOHOL FUEL PRODUCTION.

    Section 1208 of the Agriculture and Food Act of 1981 (7 
U.S.C. 1736n) is repealed.

SEC. 227. FOOD FOR PROGRESS PROGRAM.

    The Food for Progress Act of 1985 (7 U.S.C. 1736o) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``(b)(1)'' and 
                        inserting ``(b)''; and
                            (ii) in the first sentence, by 
                        inserting ``intergovernmental 
                        organizations,'' after 
                        ``cooperatives,''; and
                    (B) by striking paragraph (2);
            (2) in subsection (e)(4), by striking ``203'' and 
        inserting ``406'';
            (3) in subsection (f)--
                    (A) in paragraph (1)(B), by striking ``in 
                the case of the independent states of the 
                former Soviet Union,'';
                    (B) by striking paragraph (2);
                    (C) in paragraph (4), by inserting ``for 
                each of fiscal years 1996 through 2002'' after 
                ``may be used''; and
                    (D) by redesignating paragraphs (3) through 
                (5) as paragraphs (2) through (4), 
                respectively;
            (4) in subsection (g), by striking ``1995'' and 
        inserting ``2002'';
            (5) in subsection (j), by striking ``shall'' and 
        inserting ``may'';
            (6) in subsection (k), by striking ``1995'' and 
        inserting ``2002'';
            (7) in subsection (l)(1)--
                    (A) by striking ``1991 through 1995'' and 
                inserting ``1996 through 2002''; and
                    (B) by inserting ``, and to provide 
                technical assistance for monetization 
                programs,'' after ``monitoring of food 
                assistance programs''; and
            (8) in subsection (m)--
                    (A) by striking ``with respect to the 
                independent states of the former Soviet 
                Union'';
                    (B) by striking ``private voluntary 
                organizations and cooperatives'' each place it 
                appears and inserting ``agricultural trade 
                organizations, intergovernmental organizations, 
                private voluntary organizations, and 
                cooperatives''; and
                    (C) in paragraph (2), by striking ``in the 
                independent states''.

SEC. 228. USE OF FOREIGN CURRENCY PROCEEDS FROM EXPORT SALES FINANCING.

    Section 402 of the Mutual Security Act of 1954 (22 U.S.C. 
1922) is repealed.

SEC. 229. STIMULATION OF FOREIGN PRODUCTION.

    Section 7 of the Act of December 30, 1947 (61 Stat. 947, 
chapter 526; 50 U.S.C. App. 1917), is repealed.

        Subtitle B--Amendments to Agricultural Trade Act of 1978

SEC. 241. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    (a) In General.--Section 103 of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5603) is amended to read as follows:

``SEC. 103. AGRICULTURAL EXPORT PROMOTION STRATEGY.

    ``(a) In General.--The Secretary shall develop a strategy 
for implementing Federal agricultural export promotion programs 
that takes into account the new market opportunities for 
agricultural products, including opportunities that result 
from--
            ``(1) the North American Free Trade Agreement and 
        the Uruguay Round Agreements;
            ``(2) any accession to membership in the World 
        Trade Organization;
            ``(3) the continued economic growth in the Pacific 
        Rim; and
            ``(4) other developments.
    ``(b) Purpose of Strategy.--The strategy developed under 
subsection (a) shall encourage the maintenance, development, 
and expansion of export markets for United States agricultural 
commodities and related products, including high-value and 
value-added products.
    ``(c) Goals of Strategy.--The strategy developed under 
subsection (a) shall have the following goals:
            ``(1) Increase the value of United States 
        agricultural exports each year.
            ``(2) Increase the value of United States 
        agricultural exports each year at a faster rate than 
        the rate of increase in the value of overall world 
        export trade in agricultural products.
            ``(3) Increase the value of United States high-
        value and value-added agricultural exports each year.
            ``(4) Increase the value of United States high-
        value and value-added agricultural exports each year at 
        a faster rate than the rate of increase in the value of 
        overall world export trade in high-value and value-
        added agricultural products.
            ``(5) Ensure that to the extent practicable--
                    ``(A) all obligations undertaken in the 
                Uruguay Round Agreement on Agriculture that 
                significantly increase access for United States 
                agricultural commodities are implemented to the 
                extent required by the Uruguay Round 
                Agreements; or
                    ``(B) applicable United States laws are 
                used to secure United States rights under the 
                Uruguay Round Agreement on Agriculture.
    ``(d) Priority Markets.--
            ``(1) Identification of markets.--In developing the 
        strategy required under subsection (a), the Secretary 
        shall annually identify as priority markets--
                    ``(A) those markets in which imports of 
                agricultural products show the greatest 
                potential for increase; and
                    ``(B) those markets in which, with the 
                assistance of Federal export promotion 
                programs, exports of United States agricultural 
                products show the greatest potential for 
                increase.
            ``(2) Identification of supporting offices.--The 
        President shall identify annually in the budget of the 
        United States Government submitted under section 1105 
        of title 31, United States Code, each overseas office 
        of the Foreign Agricultural Service that provides 
        assistance to United States exporters in each of the 
        priority markets identified under paragraph (1).''.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate should conduct a 
        thorough review of agricultural export and food aid 
        programs not later than December 31, 1998; and
            (2) the review should examine what changes, if any, 
        need to be made in the programs as a result of the 
        effects of the Agricultural Market Transition Act, the 
        Uruguay Round agreements, changing world market 
        conditions, and such other factors as the Committees 
        consider appropriate.
    (c) Elimination of Report.--
            (1) In general.--Section 601 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5711) is repealed.
            (2) Conforming amendment.--The last sentence of 
        section 603 of the Agricultural Trade Act of 1978 (7 
        U.S.C. 5713) is amended by striking ``, in a 
        consolidated report,'' and all that follows through 
        ``section 601'' and inserting ``or in a consolidated 
        report''.

SEC. 242. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND AGREEMENTS.

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

``SEC. 106. IMPLEMENTATION OF COMMITMENTS UNDER URUGUAY ROUND 
                    AGREEMENTS.

    ``Not later than September 30 of each year, the Secretary 
shall evaluate whether the obligations undertaken by foreign 
countries under the Uruguay Round Agreement on Agriculture are 
being fully implemented. If the Secretary has reason to believe 
(based on the evaluation) that any foreign country, by not 
implementing the obligations of the country, may be 
significantly constraining an opportunity for United States 
agricultural exports, the Secretary shall--
            ``(1) submit the evaluation to the United States 
        Trade Representative; and
            ``(2) transmit a copy of the evaluation to the 
        Committee on Agriculture, and the Committee on Ways and 
        Means, of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry, and 
        the Committee on Finance, of the Senate.''.
    (b) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--Section 414 of the Agricultural Trade Act of 1978 (7 
U.S.C. 5674) is amended by adding at the end the following:
    ``(c) Monitoring Compliance With Sanitary and Phytosanitary 
Measures.--The Secretary shall monitor the compliance of World 
Trade Organization member countries with the sanitary and 
phytosanitary measures of the Agreement on Agriculture of the 
Uruguay Round of Multilateral Trade Negotiations of the General 
Agreement on Tariffs and Trade. If the Secretary has reason to 
believe that any country may have failed to meet the commitment 
on sanitary and phytosanitary measures under the Agreement in a 
manner that adversely impacts the exports of a United States 
agricultural commodity, the Secretary shall--
            ``(1) provide such information to the United States 
        Trade Representative of the circumstances surrounding 
        the matter arising under this subsection; and
            ``(2) with respect to any such circumstances that 
        the Secretary considers to have a continuing adverse 
        effect on United States agricultural exports, report to 
        the Committee on Agriculture, and the Committee on Ways 
        and Means, of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry, and 
        the Committee on Finance, of the Senate--
                    ``(A) that a country may have failed to 
                meet the sanitary and phytosanitary 
                commitments; and
                    ``(B) any notice given by the Secretary to 
                the United States Trade Representative.''.

SEC. 243. EXPORT CREDITS.

    (a) Export Credit Guarantee Program.--Section 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5622) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Guarantees.--The'' and 
                inserting the following: ``Guarantees.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Supplier credits.--In carrying out this 
        section, the Commodity Credit Corporation may issue 
        guarantees for the repayment of credit made available 
        for a period of not more than 180 days by a United 
        States exporter to a buyer in a foreign country.'';
            (2) in subsection (f)--
                    (A) by striking ``(f) Restrictions.--The'' 
                and inserting the following:
    ``(f) Restrictions.--
            ``(1) In general.--The''; and
                    (B) by adding at the end the following:
            ``(2) Criteria for determination.--In making the 
        determination required under paragraph (1) with respect 
        to credit guarantees under subsection (b) for a 
        country, the Secretary may consider, in addition to 
        financial, macroeconomic, and monetary indicators--
                    ``(A) whether an International Monetary 
                Fund standby agreement, Paris Club rescheduling 
                plan, or other economic restructuring plan is 
                in place with respect to the country;
                    ``(B) whether the country is addressing 
                issues such as--
                            ``(i) the convertibility of the 
                        currency of the country;
                            ``(ii) adequate legal protection 
                        for foreign investments;
                            ``(iii) the viability of the 
                        financial markets of the country; and
                            ``(iv) adequate legal protection 
                        for the private property rights of 
                        citizens of the country; or
                    ``(C) any other factors that are relevant 
                to the ability of the country to service the 
                debt of the country.'';
            (3) by striking subsection (h) and inserting the 
        following:
    ``(h) United States Agricultural Commodities.--The 
Commodity Credit Corporation shall finance or guarantee under 
this section only United States agricultural commodities.'';
            (4) in subsection (i)--
                    (A) by striking paragraph (1);
                    (B) by striking ``Institutions.--A 
                financial'' and inserting the following: 
                ``Institutions.--
            ``(1) In general.--A financial'';
                    (C) by striking ``(2) is'' and inserting 
                the following:
                    ``(A) is'';
                    (D) by striking ``(3) is'' and inserting 
                the following:
                    ``(B) is''; and
                    (E) by adding at the end the following:
            ``(2) Third country banks.--The Commodity Credit 
        Corporation may guarantee under subsections (a) and (b) 
        the repayment of credit made available to finance an 
        export sale irrespective of whether the obligor is 
        located in the country to which the export sale is 
        destined.''; and
            (5) by striking subsection (k) and inserting the 
        following:
    ``(k) Processed and High-Value Products.--
            ``(1) In general.--In issuing export credit 
        guarantees under this section, the Commodity Credit 
        Corporation shall, subject to paragraph (2), ensure 
        that not less than 25 percent for each of fiscal years 
        1996 and 1997, 30 percent for each of fiscal years 1998 
        and 1999, and 35 percent for each of fiscal years 2000, 
        2001, and 2002, of the total amount of credit 
        guarantees issued for a fiscal year is issued to 
        promote the export of processed or high-value 
        agricultural products and that the balance is issued to 
        promote the export of bulk or raw agricultural 
        commodities.
            ``(2) Limitation.--The percentage requirement of 
        paragraph (1) shall apply for a fiscal year to the 
        extent that a reduction in the total amount of credit 
        guarantees issued for the fiscal year is not required 
        to meet the percentage requirement.''.
    (b) Funding Levels.--Section 211 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5641) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Export Credit Guarantee Programs.--
            ``(1) Export credit guarantees.--The Commodity 
        Credit Corporation shall make available for each of 
        fiscal years 1996 through 2002 not less than 
        $5,500,000,000 in credit guarantees under subsections 
        (a) and (b) of section 202.
            ``(2) Limitation on origination fee.--
        Notwithstanding any other provision of law, the 
        Secretary may not charge an origination fee with 
        respect to any credit guarantee transaction under 
        section 202(a) in excess of an amount equal to 1 
        percent of the amount of credit to be guaranteed under 
        the transaction, except with respect to an export 
        credit guarantee transaction pursuant to section 
        1542(b) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 5622 
        note).''.
    (c) Definition of United States Agricultural Commodity.--
Section 102(7) of the Agricultural Trade Act of 1978 (7 U.S.C. 
5602(7)) is amended by striking subparagraphs (A) and (B) and 
inserting the following:
                    ``(A) an agricultural commodity or product 
                entirely produced in the United States; or
                    ``(B) a product of an agricultural 
                commodity--
                            ``(i) 90 percent or more of the 
                        agricultural components of which by 
                        weight, excluding packaging and added 
                        water, is entirely produced in the 
                        United States; and
                            ``(ii) that the Secretary 
                        determines to be a high value 
                        agricultural product.''.
    (d) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall issue 
regulations to carry out the amendments made by this section.

SEC. 244. MARKET ACCESS PROGRAM.

    (a) Change of Name.--
            (1) In general.--Section 203 of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5623) is amended--
                    (A) in the section heading, by striking 
                ``MARKET PROMOTION PROGRAM'' and inserting 
                ``MARKET ACCESS PROGRAM''; and
                    (B) by striking ``marketing promotion 
                program'' each place it appears and inserting 
                ``market access program''.
            (2) Conforming amendments.--
                    (A) Section 1302 of the Omnibus Budget 
                Reconciliation Act of 1993 (Public Law 103-66; 
                7 U.S.C. 5623) is amended--
                            (i) in the section heading, by 
                        striking ``MARKET PROMOTION PROGRAM'' 
                        and inserting ``MARKET ACCESS 
                        PROGRAM''; and
                            (ii) in subsection (b), by striking 
                        ``market promotion program'' each place 
                        it appears and inserting ``market 
                        access program''.
                    (B) Section 211(c) of the Agricultural 
                Trade Act of 1978 (7 U.S.C. 5641(c)) is 
                amended--
                            (i) in the subsection heading, by 
                        striking ``Marketing Promotion 
                        Programs'' and inserting ``Market 
                        Access Programs'';
                            (ii) by striking ``market promotion 
                        activities'' and inserting ``market 
                        access activities'';
                            (iii) in paragraph (1), by striking 
                        ``market development program'' and 
                        inserting ``market access program''; 
                        and
                            (iv) in paragraph (2), by striking 
                        ``marketing promotion program'' and 
                        inserting ``market access program''.
    (b) Use of Funds.--Section 203(f) of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5623(f)) is amended by adding at the end 
the following:
            ``(4) Use of funds.--Funds made available to carry 
        out this section--
                    ``(A) shall not be used to provide direct 
                assistance to any foreign for-profit 
                corporation for the corporation's use in 
                promoting foreign-produced products;
                    ``(B) shall not be used to provide direct 
                assistance to any for-profit corporation that 
                is not recognized as a small-business concern 
                described in section 3(a) of the Small Business 
                Act (15 U.S.C. 632(a)), excluding--
                            ``(i) a cooperative;
                            ``(ii) an association described in 
                        the first section of the Act entitled 
                        `An Act To authorize association of 
                        producers of agricultural products', 
                        approved February 18, 1922 (7 U.S.C. 
                        291); and
                            ``(iii) a nonprofit trade 
                        association; and
                    ``(C) may be used by a United States trade 
                association, cooperative, or small business for 
                individual branded promotional activity related 
                to a United States branded product, if the 
                beneficiaries of the activity have provided 
                funds for the activity in an amount that is at 
                least equivalent to the amount of assistance 
                provided under this section.''.
    (c) Funding.--Effective October 1, 1995, section 211(c)(1) 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5641(c)(1)) is 
amended--
            (1) by striking ``and'' after ``1991 through 
        1993,''; and
            (2) by striking ``through 1997,'' and inserting 
        ``through 1995, and not more than $90,000,000 for each 
        of fiscal years 1996 through 2002,''.

SEC. 245. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Effective October 1, 1995, section 301(e) 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5651(e)) is 
amended by striking paragraph (1) and inserting the following:
            ``(1) In general.--The Commodity Credit Corporation 
        shall make available to carry out the program 
        established under this section not more than--
                    ``(A) $350,000,000 for fiscal year 1996;
                    ``(B) $250,000,000 for fiscal year 1997;
                    ``(C) $500,000,000 for fiscal year 1998;
                    ``(D) $550,000,000 for fiscal year 1999;
                    ``(E) $579,000,000 for fiscal year 2000;
                    ``(F) $478,000,000 for fiscal year 2001; 
                and
                    ``(G) $478,000,000 for fiscal year 2002.''.
    (b) Priority Funding for Intermediate Products.--Section 
301 of the Agricultural Trade Act of 1978 (7 U.S.C. 5651) is 
amended by adding at the end the following:
    ``(h) Priority Funding for Intermediate Products.--
            ``(1) In general.--Effective beginning in fiscal 
        year 1996, and consistent, as determined by the 
        Secretary, with the obligations and reduction 
        commitments undertaken by the United States under the 
        Uruguay Round Agreements, the Secretary may make 
        available not more than $100,000,000 for each fiscal 
        year under this section for the sale of intermediate 
        agricultural products in sufficient quantities to 
        attain the volume of export sales consistent with the 
        volume of intermediate agricultural products exported 
        by the United States during the Uruguay Round base 
        period years of 1986 through 1990.
            ``(2) Additional assistance.--Notwithstanding 
        paragraph (1), if the export sale of any intermediate 
        agricultural product attains the volume of export sales 
        consistent with the volume of the intermediate 
        agricultural product exported by the United States 
        during the Uruguay Round base period years of 1986 
        through 1990, the Secretary may make available 
        additional amounts under this section for the 
        encouragement of export sales of the intermediate 
        agricultural product.''.

SEC. 246. ARRIVAL CERTIFICATION.

    Section 401 of the Agricultural Trade Act of 1978 (7 U.S.C. 
5661) is amended by striking subsection (a) and inserting the 
following:
    ``(a) Arrival Certification.--With respect to a commodity 
provided, or for which financing or a credit guarantee or other 
assistance is made available, under a program authorized in 
section 201, 202, or 301, the Commodity Credit Corporation 
shall require the exporter of the commodity to maintain records 
of an official or customary commercial nature or other 
documents as the Secretary may require, and shall allow 
representatives of the Commodity Credit Corporation access to 
the records or documents as needed, to verify the arrival of 
the commodity in the country that is the intended destination 
of the commodity.''.

SEC. 247. COMPLIANCE.

    Section 402(a) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5662(a)) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph 
        (2).

SEC. 248. REGULATIONS.

    Section 404 of the Agricultural Trade Act of 1978 (7 U.S.C. 
5664) is repealed.

SEC. 249. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    Subtitle B of title IV of the Agricultural Trade Act of 
1978 (7 U.S.C. 5671 et seq.) is amended by adding at the end 
the following:

``SEC. 417. TRADE COMPENSATION AND ASSISTANCE PROGRAMS.

    ``(a) In General.--Except as provided in subsection (f), 
notwithstanding any other provision of law, if, after the date 
of enactment of this section, the President or any other member 
of the executive branch causes exports from the United States 
to any country to be unilaterally suspended for reasons of 
national security or foreign policy, and if within 90 days 
after the date on which the suspension is imposed on United 
States exports no other country with an agricultural economic 
interest agrees to participate in the suspension, the Secretary 
shall carry out a trade compensation assistance program in 
accordance with this section (referred to in this section as a 
`program').
    ``(b) Compensation or Provision of Funds.--Under a program, 
the Secretary shall, based on an evaluation by the Secretary of 
the method most likely to produce the greatest compensatory 
benefit for producers of the commodity involved in the 
suspension--
            ``(1) compensate producers of the commodity by 
        making payments available to producers, as provided by 
        subsection (c)(1); or
            ``(2) make available an amount of funds calculated 
        under subsection (c)(2), to promote agricultural 
        exports or provide agricultural commodities to 
        developing countries under any authorities available to 
        the Secretary.
    ``(c) Determination of Amount of Compensation or Funds.--
            ``(1) Compensation.--If the Secretary makes 
        payments available to producers under subsection 
        (b)(1), the amount of the payment shall be determined 
        by the Secretary based on the Secretary's estimate of 
        the loss suffered by producers of the commodity 
        involved due to any decrease in the price of the 
        commodity as a result of the suspension.
            ``(2) Determination of amount of funds.--For each 
        fiscal year of a program, the amount of funds made 
        available under subsection (b)(2) shall be equal to 90 
        percent of the average annual value of United States 
        agricultural exports to the country with respect to 
        which exports are suspended during the most recent 3 
        years prior to the suspension for which data are 
        available.
    ``(d) Duration of Program.--For each suspension of exports 
for which a program is implemented under this section, funds 
shall be made available under subsection (b) for each fiscal 
year or part of a fiscal year for which the suspension is in 
effect, but not to exceed 3 fiscal years.
    ``(e) Commodity Credit Corporation.--The Secretary shall 
use funds of the Commodity Credit Corporation to carry out this 
section.
    ``(f) Exception to Carrying Out a Program.--This section 
shall not apply to any suspension of trade due to a war or 
armed hostility.
    ``(g) Partial Year Embargoes.--If the Secretary makes funds 
available under subsection (b)(2), regardless of whether an 
embargo is in effect for only part of a fiscal year, the full 
amount of funds as calculated under subsection (c)(2) shall be 
made available under a program for the fiscal year. If the 
Secretary determines that making the required amount of funds 
available in a partial fiscal year is impracticable, the 
Secretary may make all or part of the funds required to be made 
available in the following fiscal year (in addition to any 
funds otherwise required under a program to be made available 
in the following fiscal year).
    ``(h) Short Supply Embargoes.--If the President or any 
other member of the executive branch causes exports to be 
suspended based on a determination of short supply, the 
Secretary shall carry out section 1002 of the Food and 
Agriculture Act of 1977 (7 U.S.C. 1310).''.

SEC. 250. FOREIGN AGRICULTURAL SERVICE.

    Section 503 of the Agricultural Trade Act of 1978 (7 U.S.C. 
5693) is amended to read as follows:

``SEC. 503. DUTIES OF FOREIGN AGRICULTURAL SERVICE.

    ``The Service shall assist the Secretary in carrying out 
the agricultural trade policy and international cooperation 
policy of the United States by--
            ``(1) acquiring information pertaining to 
        agricultural trade;
            ``(2) carrying out market promotion and development 
        activities;
            ``(3) providing agricultural technical assistance 
        and training; and
            ``(4) carrying out the programs authorized under 
        this Act, the Agricultural Trade Development and 
        Assistance Act of 1954 (7 U.S.C. 1691 et seq.), and 
        other Acts.''.

SEC. 251. REPORTS.

    The first sentence of section 603 of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5713) is amended by striking ``The'' and 
inserting ``Subject to section 217 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6917), the''.

SEC. 252. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

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

       ``TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM

``SEC. 701. DEFINITION OF ELIGIBLE TRADE ORGANIZATION.

    ``In this title, the term `eligible trade organization' 
means a United States trade organization that--
            ``(1) promotes the export of 1 or more United 
        States agricultural commodities or products; and
            ``(2) does not have a business interest in or 
        receive remuneration from specific sales of 
        agricultural commodities or products.

``SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    ``(a) In General.--The Secretary shall establish and, in 
cooperation with eligible trade organizations, carry out a 
foreign market development cooperator program to maintain and 
develop foreign markets for United States agricultural 
commodities and products.
    ``(b) Administration.--Funds made available to carry out 
this title shall be used only to provide--
            ``(1) cost-share assistance to an eligible trade 
        organization under a contract or agreement with the 
        organization; and
            ``(2) assistance for other costs that are necessary 
        or appropriate to carry out the foreign market 
        development cooperator program, including contingent 
        liabilities that are not otherwise funded.

``SEC. 703. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
title such sums as may be necessary for each of fiscal years 
1996 through 2002.''.

        Subtitle C--Miscellaneous Agricultural Trade Provisions

SEC. 261. EDWARD R. MADIGAN UNITED STATES AGRICULTURAL EXPORT 
                    EXCELLENCE AWARD.

    (a) Findings.--Congress finds that--
            (1) United States producers of agricultural 
        products are some of the most productive and efficient 
        producers of agricultural products in the world;
            (2) continued growth and expansion of markets for 
        United States agricultural exports is crucial to the 
        continued development and economic well-being of rural 
        areas of the United States and the agricultural sector 
        of the United States economy;
            (3) in recent years, United States agricultural 
        exports have steadily increased, surpassing 
        $54,000,000,000 in value in 1995;
            (4) as United States agricultural producers move 
        toward a market-oriented system in which planting and 
        other decisions by producers are driven by national and 
        international market signals, developing new and 
        expanding agricultural export markets is vital to 
        maintaining a vibrant and healthy agricultural sector 
        and rural economy; and
            (5) a United States agricultural export excellence 
        award will increase United States agricultural exports 
        by--
                    (A) identifying efforts of United States 
                entities to develop and expand markets for 
                United States agricultural exports through the 
                development of new products and services and 
                through the use of innovative marketing 
                techniques;
                    (B) recognizing achievements of those who 
                have exhibited or supported entrepreneurial 
                efforts to expand and create new markets for 
                United States agricultural exports or increase 
                the volume or value of United States 
                agricultural exports; and
                    (C) disseminating information on successful 
                methods used to develop and expand markets for 
                United States agricultural exports.
    (b) Establishment.--There is established the Edward R. 
Madigan United States Agricultural Export Excellence Award, 
which shall be evidenced by a medal bearing the inscription 
``Edward R. Madigan United States Agricultural Export 
Excellence Award''. The medal shall be of such design and 
materials and bear such additional inscriptions as the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may prescribe.
    (c) Selection of Recipient.--The President or the Secretary 
(on the basis of recommendations received from the board 
established under subsection (h)) shall periodically provide 
the award to companies and other entities that in the judgment 
of the President or the Secretary substantially encourage 
entrepreneurial efforts in the food and agriculture sector for 
advancing United States agricultural exports.
    (d) Presentation of Award.--The presentation of the award 
shall be made by the President or the Secretary with such 
ceremonies as the President or the Secretary considers proper.
    (e) Publication of Award.--An entity to which an award is 
made under this section may publicize the receipt of the award 
by the entity and use the award in advertising of the entity.
    (f) Categories for Which Award May Be Given.--Separate 
awards shall be made to qualifying entities in each of the 
following categories:
            (1) Development of new products or services for 
        agricultural export markets.
            (2) Development of new agricultural export markets.
            (3) Creative marketing of products or services in 
        agricultural export markets.
    (g) Criteria for Qualification.--An entity may qualify for 
an award under this section only if the entity--
            (1)(A) applies to the board established under 
        subsection (h) in writing for the award; or
            (B) is recommended for the award by a Governor of a 
        State;
            (2)(A) has exhibited significant entrepreneurial 
        effort to create new markets for United States 
        agricultural exports or increase United States 
        agricultural exports; or
            (B) has provided significant assistance to others 
        in an effort to create new markets for United States 
        agricultural exports or increase United States 
        agricultural exports;
            (3) has not received another award in the same 
        category under subsection (f) during the preceding 5-
        year period; and
            (4) meets such other requirements and 
        specifications as the Secretary determines are 
        appropriate to achieve the objectives of this section.
    (h) Board.--
            (1) Selection.--The Secretary shall appoint a board 
        of evaluators, consisting of at least 5 individuals 
        from the private sector selected for their knowledge 
        and experience in exporting United States agricultural 
        products.
            (2) Meetings.--The board shall meet at least once 
        annually to review and evaluate all applicants and 
        entities recommended by States under subsection (g)(1).
            (3) Recommendations of board.--The board shall 
        report its recommendations concerning the making of the 
        award to the Secretary.
            (4) Term.--Each member of the board may serve a 
        term of not to exceed 3 years.
    (i) Funding.--The Secretary may seek and accept gifts from 
public and private sources to carry out this section.

SEC. 262. REPORTING REQUIREMENTS RELATING TO TOBACCO.

    Section 214 of the Tobacco Adjustment Act of 1983 (7 U.S.C. 
509) is repealed.

SEC. 263. TRIGGERED EXPORT ENHANCEMENT.

    (a) Readjustment of Support Levels.--Section 1302 of the 
Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508; 
7 U.S.C. 1421 note) is repealed.
    (b) Triggered Marketing Loans and Export Enhancement.--
Section 4301 of the Omnibus Trade and Competitiveness Act of 
1988 (Public Law 100-418; 7 U.S.C. 1446 note) is repealed.
    (c) Effective Date.--The amendments made by this section 
shall be effective beginning with the 1996 crops of wheat, feed 
grains, upland cotton, and rice.

SEC. 264. DISPOSITION OF COMMODITIES TO PREVENT WASTE.

    Section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) 
is amended--
            (1) in subsection (b)--
                    (A) in paragraph (7)--
                            (i) in subparagraph (D)(iv), by 
                        striking ``one year of acquisition'' 
                        and all that follows through the period 
                        at the end and inserting the following: 
                        ``a reasonable length of time, as 
                        determined by the Secretary, except 
                        that the Secretary may permit the use 
                        of proceeds in a country other than the 
                        country of origin--
                    ``(I) as necessary to expedite the 
                transportation of commodities and products 
                furnished under this subsection; or
                    ``(II) if the proceeds are generated in a 
                currency generally accepted in the other 
                country.''; and
                            (ii) by striking the sentence 
                        following subparagraph (F) and 
                        inserting the following: ``The 
                        Secretary may approve the use of 
                        proceeds or services realized from the 
                        sale or barter of a commodity furnished 
                        under this subsection by a nonprofit 
                        voluntary agency, cooperative, or 
                        intergovernmental agency or 
                        organization to meet administrative 
                        expenses incurred in connection with 
                        activities undertaken under this 
                        subsection.'';
                    (B) in paragraph (8), by striking 
                subparagraph (C); and
                    (C) by striking paragraphs (10), (11), and 
                (12); and
            (2) by striking subsection (c).

SEC. 265. DEBT-FOR-HEALTH-AND-PROTECTION SWAP.

    (a) In General.--Section 1517 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 1706) is 
repealed.
    (b) Technical Amendment.--Subsection (e)(3) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(e)(3)) is amended by 
striking ``section 106'' and inserting ``section 103''.

SEC. 266. POLICY ON EXPANSION OF INTERNATIONAL MARKETS.

    Section 1207 of the Agriculture and Food Act of 1981 (7 
U.S.C. 1736m) is repealed.

SEC. 267. POLICY ON MAINTENANCE AND DEVELOPMENT OF EXPORT MARKETS.

    Section 1121 of the Food Security Act of 1985 (7 U.S.C. 
1736p) is amended--
            (1) by striking subsection (a); and
            (2) in subsection (b)--
                    (A) by striking ``(b)''; and
                    (B) by striking paragraphs (1) through (4) 
                and inserting the following:
            ``(1) be the premier supplier of agricultural and 
        food products to world markets and expand exports of 
        high value products;
            ``(2) support the principle of free trade and the 
        promotion of fair trade in agricultural commodities and 
        products;
            ``(3) cooperate fully in all efforts to negotiate 
        with foreign countries further reductions in tariff and 
        nontariff barriers to trade, including sanitary and 
        phytosanitary measures and trade-distorting subsidies;
            ``(4) aggressively counter unfair foreign trade 
        practices as a means of encouraging fairer trade;''.

SEC. 268. POLICY ON TRADE LIBERALIZATION.

    Section 1122 of the Food Security Act of 1985 (7 U.S.C. 
1736q) is repealed.

SEC. 269. AGRICULTURAL TRADE NEGOTIATIONS.

    Section 1123 of the Food Security Act of 1985 (7 U.S.C. 
1736r) is amended to read as follows:

``SEC. 1123. TRADE NEGOTIATIONS POLICY.

    ``(a) Findings.--Congress finds that--
            ``(1) on a level playing field, United States 
        producers are the most competitive suppliers of 
        agricultural products in the world;
            ``(2) exports of United States agricultural 
        products accounted for $54,000,000,000 in 1995, 
        contributing a net $24,000,000,000 to the merchandise 
        trade balance of the United States and supporting 
        approximately 1,000,000 jobs;
            ``(3) increased agricultural exports are critical 
        to the future of the farm, rural, and overall United 
        States economy, but the opportunities for increased 
        agricultural exports are limited by the unfair 
        subsidies of the competitors of the United States, and 
        a variety of tariff and nontariff barriers to highly 
        competitive United States agricultural products;
            ``(4) international negotiations can play a key 
        role in breaking down barriers to United States 
        agricultural exports;
            ``(5) the Uruguay Round Agreement on Agriculture 
        made significant progress in the attainment of 
        increased market access opportunities for United States 
        exports of agricultural products, for the first time--
                    ``(A) restraining foreign trade-distorting 
                domestic support and export subsidy programs; 
                and
                    ``(B) developing common rules for the 
                application of sanitary and phytosanitary 
                restrictions;
        that should result in increased exports of United 
        States agricultural products, jobs, and income growth 
        in the United States;
            ``(6) the Uruguay Round Agreement on Agriculture 
        did not succeed in completely eliminating trade 
        distorting domestic support and export subsidies by--
                    ``(A) allowing the European Union to 
                continue unreasonable levels of spending on 
                export subsidies; and
                    ``(B) failing to discipline monopolistic 
                state trading entities, such as the Canadian 
                Wheat Board, that use nontransparent and 
                discriminatory pricing as a hidden de facto 
                export subsidy;
            ``(7) during the period 1996 through 2002, there 
        will be several opportunities for the United States to 
        negotiate fairer trade in agricultural products, 
        including further negotiations under the World Trade 
        Organization, and steps toward possible free trade 
        agreements of the Americas and Asian-Pacific Economic 
        Cooperation (APEC); and
            ``(8) the United States should aggressively use 
        these opportunities to achieve more open and fair 
        opportunities for trade in agricultural products.
    ``(b) Goals of the United States in Agricultural Trade 
Negotiations.--The objectives of the United States with respect 
to future negotiations on agricultural trade include--
            ``(1) increasing opportunities for United States 
        exports of agricultural products by eliminating tariff 
        and nontariff barriers to trade;
            ``(2) leveling the playing field for United States 
        producers of agricultural products by limiting per unit 
        domestic production supports to levels that are no 
        greater than those available in the United States;
            ``(3) ending the practice of export dumping by 
        eliminating all trade distorting export subsidies and 
        disciplining state trading entities so that they do not 
        (except in cases of bona fide food aid) sell in foreign 
        markets at prices below domestic market prices or 
        prices below their full costs of acquiring and 
        delivering agricultural products to the foreign 
        markets; and
            ``(4) encouraging government policies that avoid 
        price-depressing surpluses.''.

SEC. 270. POLICY ON UNFAIR TRADE PRACTICES.

    Section 1164 of the Food Security Act of 1985 (Public Law 
99-198; 99 Stat. 1499) is repealed.

SEC. 271. AGRICULTURAL AID AND TRADE MISSIONS.

    (a) In General.--The Agricultural Aid and Trade Missions 
Act (7 U.S.C. 1736bb et seq.) is repealed.
    (b) Conforming Amendment.--Section 7 of Public Law 100-277 
(7 U.S.C. 1736bb note) is repealed.

SEC. 272. ANNUAL REPORTS BY AGRICULTURAL ATTACHES.

    Section 108(b)(1)(B) of the Agricultural Act of 1954 (7 
U.S.C. 1748(b)(1)(B)) is amended by striking ``including 
fruits, vegetables, legumes, popcorn and ducks''.

SEC. 273. WORLD LIVESTOCK MARKET PRICE INFORMATION.

    Section 1545 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1761 note) is 
repealed.

SEC. 274. ORDERLY LIQUIDATION OF STOCKS.

    Sections 201 and 207 of the Agricultural Act of 1956 (7 
U.S.C. 1851 and 1857) are repealed.

SEC. 275. SALES OF EXTRA LONG STAPLE COTTON.

    Section 202 of the Agricultural Act of 1956 (7 U.S.C. 1852) 
is repealed.

SEC. 276. REGULATIONS.

    Section 707 of the Freedom for Russia and Emerging Eurasian 
Democracies and Open Markets Support Act of 1992 (Public Law 
102-511; 7 U.S.C. 5621 note) is amended by striking subsection 
(d).

SEC. 277. EMERGING MARKETS.

    (a) Promotion of Agricultural Exports to Emerging 
Markets.--
            (1) Emerging markets.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 
        (Public Law 101-624; 7 U.S.C. 5622 note) is amended--
                    (A) in the section heading, by striking 
                ``EMERGING DEMOCRACIES'' and inserting 
                ``EMERGING MARKETS'';
                    (B) by striking ``emerging democracies'' 
                each place it appears in subsections (b), (d), 
                and (e) and inserting ``emerging markets'';
                    (C) in subsection (c), by striking 
                ``emerging democracy'' each place it appears 
                and inserting ``emerging market''; and
                    (D) by striking subsection (f) and 
                inserting the following:
    ``(f) Emerging Market.--In this section and section 1543, 
the term `emerging market' means any country that the Secretary 
determines--
            ``(1) is taking steps toward a market-oriented 
        economy through the food, agriculture, or rural 
        business sectors of the economy of the country; and
            ``(2) has the potential to provide a viable and 
        significant market for United States agricultural 
        commodities or products of United States agricultural 
        commodities.''.
            (2) Funding.--Section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 is 
        amended by striking subsection (a) and inserting the 
        following:
    ``(a) Funding.--The Commodity Credit Corporation shall make 
available for fiscal years 1996 through 2002 not less than 
$1,000,000,000 of direct credits or export credit guarantees 
for exports to emerging markets under section 201 or 202 of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5621 and 5622), in 
addition to the amounts acquired or authorized under section 
211 of the Act (7 U.S.C. 5641) for the program.''.
            (3) Agricultural fellowship program.--Section 1542 
        of the Food, Agriculture, Conservation, and Trade Act 
        of 1990 is amended--
                    (A) in subsection (b), by striking the last 
                sentence and inserting the following: ``The 
                Commodity Credit Corporation shall give 
                priority under this subsection to--
            ``(A) projects that encourage the privatization of 
        the agricultural sector or that benefit private farms 
        or cooperatives in emerging markets; and
            ``(B) projects for which nongovernmental persons 
        agree to assume a relatively larger share of the 
        costs.''; and
                    (B) in subsection (d)--
                            (i) in the matter preceding 
                        paragraph (1), by striking ``the Soviet 
                        Union'' and inserting ``emerging 
                        markets'';
                            (ii) in paragraph (1)--
                                    (I) in subparagraph 
                                (A)(i)--
                                            (aa) by striking 
                                        ``1995'' and inserting 
                                        ``2002''; and
                                            (bb) by striking 
                                        ``those systems, and 
                                        identify'' and 
                                        inserting ``the 
                                        systems, including 
                                        potential reductions in 
                                        trade barriers, and 
                                        identify and carry 
                                        out'';
                                    (II) in subparagraph (B), 
                                by striking ``shall'' and 
                                inserting ``may'';
                                    (III) in subparagraph (D), 
                                by inserting ``(including the 
                                establishment of extension 
                                services)'' after ``technical 
                                assistance'';
                                    (IV) by striking 
                                subparagraph (F); and
                                    (V) by redesignating 
                                subparagraphs (G), (H), and (I) 
                                as subparagraphs (F), (G), and 
                                (H), respectively;
                            (iii) in paragraph (2)--
                                    (I) by striking ``the 
                                Soviet Union'' each place it 
                                appears and inserting 
                                ``emerging markets'';
                                    (II) in subparagraph (A), 
                                by striking ``a free market 
                                food production and 
                                distribution system'' and 
                                inserting ``free market food 
                                production and distribution 
                                systems'';
                                    (III) in subparagraph (B)--
                                            (aa) in clause (i), 
                                        by striking 
                                        ``Government'' and 
                                        inserting 
                                        ``governments'';
                                            (bb) in clause 
                                        (iii)(II), by striking 
                                        ``and'' at the end;
                                            (cc) in clause 
                                        (iii)(III), by striking 
                                        the period at the end 
                                        and inserting ``; 
                                        and''; and
                                            (dd) by adding at 
                                        the end of clause (iii) 
                                        the following:
                                    ``(IV) to provide for the 
                                exchange of administrators and 
                                faculty members from 
                                agricultural and other 
                                institutions to strengthen and 
                                revise educational programs in 
                                agricultural economics, 
                                agribusiness, and agrarian law, 
                                to support change towards a 
                                free market economy in emerging 
                                markets.'';
                                    (IV) by striking 
                                subparagraph (D); and
                                    (V) by redesignating 
                                subparagraph (E) as 
                                subparagraph (D); and
                            (iv) by striking paragraph (3).
            (4) United states agricultural commodity.--
        Subsections (b) and (c) of section 1542 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990 are 
        amended by striking ``section 101(6)'' each place it 
        appears and inserting ``section 102(7)''.
            (5) Report.--The first sentence of section 
        1542(e)(2) of the Food, Agriculture, Conservation, and 
        Trade Act of 1990 is amended by striking ``Not'' and 
        inserting ``Subject to section 217 of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 6917), 
        not''.
    (b) Agricultural Fellowship Program for Middle Income 
Countries, Emerging Democracies, and Emerging Markets.--Section 
1543 of the Food, Agriculture, Conservation, and Trade Act of 
1990 (7 U.S.C. 3293) is amended--
            (1) in the section heading, by striking ``MIDDLE 
        INCOME COUNTRIES AND EMERGING DEMOCRACIES'' and 
        inserting ``MIDDLE INCOME COUNTRIES, EMERGING 
        DEMOCRACIES, AND EMERGING MARKETS'';
            (2) in subsection (b), by adding at the end the 
        following:
            ``(5) Emerging market.--Any emerging market, as 
        defined in section 1542(f).''; and
            (3) in subsection (c)(1), by striking ``food 
        needs'' and inserting ``food and fiber needs''.
    (c) Conforming Amendments.--
            (1) Section 501 of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1737) 
        is amended--
                    (A) in subsection (a), by striking 
                ``emerging democracies'' and inserting 
                ``emerging markets''; and
                    (B) in subsection (b), by striking 
                paragraph (1) and inserting the following:
            ``(1) Emerging market.--The term `emerging market' 
        means any country that the Secretary determines--
                    ``(A) is taking steps toward a market-
                oriented economy through the food, agriculture, 
                or rural business sectors of the economy of the 
                country; and
                    ``(B) has the potential to provide a viable 
                and significant market for United States 
                agricultural commodities or products of United 
                States agricultural commodities.''.
            (2) Section 201(d)(1)(C)(ii) of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5621(d)(1)(C)(ii)) is 
        amended by striking ``emerging democracies'' and 
        inserting ``emerging markets''.
            (3) Section 202(d)(3)(B) of the Agricultural Trade 
        Act of 1978 (7 U.S.C. 5622(d)(3)(B)) is amended by 
        striking ``emerging democracies'' and inserting 
        ``emerging markets''.

SEC. 278. REIMBURSEMENT FOR OVERHEAD EXPENSES.

    Section 1542(d)(1)(D) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 7 
U.S.C. 5622 note) is amended by adding at the end the 
following: ``Notwithstanding any other provision of law, the 
assistance shall include assistance for administrative and 
overhead expenses of the International Cooperation and 
Development Program Area of the Foreign Agriculture Service, to 
the extent that the expenses were incurred pursuant to 
reimbursable agreements entered into prior to September 30, 
1993, the expenses do not exceed $2,000,000 per year, and the 
expenses are not incurred for information technology 
systems.''.

SEC. 279. LABELING OF DOMESTIC AND IMPORTED LAMB AND MUTTON.

    Section 7 of the Federal Meat Inspection Act (21 U.S.C. 
607) is amended by adding at the end the following:
    ``(f) Lamb and Mutton.--The Secretary, consistent with 
United States international obligations, shall establish 
standards for the labeling of sheep carcasses, parts of sheep 
carcasses, sheepmeat, and sheepmeat food products.''.

SEC. 280. IMPORT ASSISTANCE FOR CBI BENEFICIARY COUNTRIES AND THE 
                    PHILIPPINES.

    Section 583 of Public Law 100-202 (101 Stat. 1329-182) is 
repealed.

SEC. 281. STUDIES, REPORTS, AND OTHER PROVISIONS.

    (a) In General.--Sections 1551 through 1555, section 1558, 
and section 1559 of subtitle E of title XV of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 
101-624; 104 Stat. 3696) (as redesignated by section 1011(d) of 
the Federal Reports Elimination and Sunset Act of 1995 (Public 
Law 104-66; 109 Stat. 709)) are repealed.
    (b) Language Proficiency.--Section 1556 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (Public Law 
101-624; 7 U.S.C. 5694 note) is amended by striking subsection 
(c).

SEC. 282. SENSE OF CONGRESS CONCERNING MULTILATERAL DISCIPLINES ON 
                    CREDIT GUARANTEES.

    It is the sense of Congress that--
            (1) in negotiations to establish multilateral 
        disciplines on agricultural export credits and credit 
        guarantees, the United States should not agree to any 
        arrangement that is incompatible with the provisions of 
        United States law that authorize agricultural export 
        credits and credit guarantees;
            (2) in the negotiations (which are held under the 
        auspices of the Organization for Economic Cooperation 
        and Development), the United States should not reach 
        any agreement that fails to impose disciplines on the 
        practices of foreign government trading entities such 
        as the Australian Wheat Board, the Canadian Wheat 
        Board, the New Zealand Dairy Board, and the Australian 
        Dairy Board; and
            (3) the disciplines should include greater openness 
        in the operations of the entities as long as the 
        entities are subsidized by the foreign government or 
        have monopolies for exports of a commodity that are 
        sanctioned by the foreign government.

SEC. 283. INTERNATIONAL COTTON ADVISORY COMMITTEE.

    (a) In General.--The President shall ensure that the 
Government of the United States participates as a full member 
of the International Cotton Advisory Committee.
    (b) Representation by the Secretary.--The Secretary of 
Agriculture shall represent the Government of the United States 
as a member of the International Cotton Advisory Committee and 
shall delegate the primary responsibility to represent the 
Government of the United States to appropriately qualified 
individuals.

                        TITLE III--CONSERVATION

                        Subtitle A--Definitions

SEC. 301. DEFINITIONS APPLICABLE TO HIGHLY ERODIBLE CROPLAND 
                    CONSERVATION.

    (a) Conservation Plan and Conservation System.--Section 
1201(a) of the Food Security Act of 1985 (16 U.S.C. 3801(a)) is 
amended--
            (1) by redesignating paragraphs (2) through (16) as 
        paragraphs (4) through (18), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) Conservation plan.--The term `conservation 
        plan' means the document that--
                    ``(A) applies to highly erodible cropland;
                    ``(B) describes the conservation system 
                applicable to the highly erodible cropland and 
                describes the decisions of the person with 
                respect to location, land use, tillage systems, 
                and conservation treatment measures and 
                schedule; and
                    ``(C) is approved by the local soil 
                conservation district, in consultation with the 
                local committees established under section 
                8(b)(5) of the Soil Conservation and Domestic 
                Allotment Act (16 U.S.C. 590h(b)(5)) and the 
                Secretary, or by the Secretary.
            ``(3) Conservation system.--The term `conservation 
        system' means a combination of 1 or more conservation 
        measures or management practices that--
                    ``(A) are based on local resource 
                conditions, available conservation technology, 
                and the standards and guidelines contained in 
                the Natural Resources Conservation Service 
                field office technical guides; and
                    ``(B) are designed to achieve, in a cost 
                effective and technically practicable manner, a 
                substantial reduction in soil erosion or a 
                substantial improvement in soil conditions on a 
                field or group of fields containing highly 
                erodible cropland when compared to the level of 
                erosion or soil conditions that existed before 
                the application of the conservation measures 
                and management practices.''.
    (b) Field.--Section 1201(a) of the Food Security Act of 
1985 is amended by striking paragraph (7) (as redesignated by 
subsection (a)(1)) and inserting the following:
            ``(7) Field.--The term `field' means a part of a 
        farm that is separated from the balance of the farm by 
        permanent boundaries such as fences, roads, permanent 
        waterways, or other similar features. At the option of 
        the owner or operator of the farm, croplines may also 
        be used to delineate a field if farming practices make 
        it probable that the croplines are not subject to 
        change. Any highly erodible land on which an 
        agricultural commodity is produced after December 23, 
        1985, and that is not exempt under section 1212, shall 
        be considered as part of the field in which the land 
        was included on December 23, 1985, unless the owner and 
        Secretary agree to modification of the boundaries of 
        the field to carry out this title.''.
    (c) Highly Erodible Land.--Section 1201(a)(9) of the Food 
Security Act of 1985 (as redesignated by subsection (a)(1)) is 
amended by adding at the end the following:
                    ``(C) Equations.--Not later than 60 days 
                after the date of enactment of this 
                subparagraph, the Secretary shall publish in 
                the Federal Register the universal soil loss 
                equation and wind erosion equation used by the 
                Department of Agriculture as of that date. The 
                Secretary may not change the equations after 
                that date except following notice and comment 
                in a manner consistent with section 553 of 
                title 5, United States Code.''.
    (d) Conforming Amendments.--Section 1212 of the Food 
Security Act of 1985 (16 U.S.C. 3812) is amended--
            (1) in the first sentence of subsection (a)(2), by 
        striking ``that documents'' and all that follows 
        through ``by the Secretary'';
            (2) in subsection (c)(3), by striking ``based on'' 
        and all that follows through ``and the Secretary,'' and 
        inserting ``, in which case,'';
            (3) in subsection (e)(1)(A), by striking 
        ``conservation compliance plan'' and inserting 
        ``conservation plan''; and
            (4) in subsection (f)--
                    (A) in paragraph (1), by striking ``that 
                documents'' and all that follows through 
                ``under subsection (a)'';
                    (B) in paragraph (3), by striking 
                ``prepared under subsection (a)''; and
                    (C) in paragraph (4), by striking ``that 
                documents'' and all that follows through 
                ``subsection (a)''.

             Subtitle B--Highly Erodible Land Conservation

SEC. 311. PROGRAM INELIGIBILITY.

    Effective 90 days after the date of enactment of this Act, 
section 1211 of the Food Security Act of 1985 (16 U.S.C. 3811) 
is amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``following the date of enactment of this 
        Act,'';
            (2) in paragraph (1)--
                    (A) by striking subparagraph (A) and 
                inserting the following:
                    ``(A) contract payments under a production 
                flexibility contract, marketing assistance 
                loans, and any type of price support or payment 
                made available under the Agricultural Market 
                Transition Act, the Commodity Credit 
                Corporation Charter Act (15 U.S.C. 714 et 
                seq.), or any other Act;'';
                    (B) by striking subparagraph (C);
                    (C) in subparagraph (D), by striking ``made 
                under'' and all that follows through ``August 
                14, 1989'';
                    (D) in subparagraph (E), by striking 
                ``Farmers Home Administration'' and inserting 
                ``Consolidated Farm Service Agency''; and
                    (E) by redesignating subparagraphs (D) and 
                (E) as subparagraphs (C) and (D), respectively; 
                and
            (3) by striking paragraph (3) and inserting the 
        following:
            ``(3) during the crop year--
                    ``(A) a payment made pursuant to a contract 
                entered into under the environmental quality 
                incentives program under chapter 4 of subtitle 
                D;
                    ``(B) a payment under any other provision 
                of subtitle D;
                    ``(C) a payment under section 401 or 402 of 
                the Agricultural Credit Act of 1978 (16 U.S.C. 
                2201 and 2202); or
                    ``(D) a payment, loan, or other assistance 
                under section 3 or 8 of the Watershed 
                Protection and Flood Prevention Act (16 U.S.C. 
                1003 and 1006a).''.

SEC. 312. CONSERVATION RESERVE LANDS.

    Section 1212(a)(3) of the Food Security Act of 1985 (16 
U.S.C. 3812(a)(3)) is amended by striking ``shall, if the 
conservation plan established under this subtitle for such land 
requires structures to be constructed,'' and inserting ``shall 
only be required to apply a conservation plan established under 
this subtitle. The person shall not be required to meet a 
higher conservation standard than the standard applied to other 
highly erodible cropland located within the same area. If the 
person's conservation plan requires structures to be 
constructed, the person shall''.

SEC. 313. GOOD FAITH EXEMPTION.

    (a) Grace Period To Resume Conservation Compliance.--
Section 1212(f)(1) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(1)) is amended--
            (1) by striking ``Except to the extent provided in 
        paragraph (2), no'' and inserting ``No''; and
            (2) by striking ``such person has--'' and all that 
        follows through the period at the end of subparagraph 
        (B) and inserting the following: ``the person has acted 
        in good faith and without an intent to violate this 
        subtitle. A person who meets the requirements of this 
        paragraph shall be allowed a reasonable period of time, 
        as determined by the Secretary, but not to exceed 1 
        year, during which to implement the measures and 
        practices necessary to be considered to be actively 
        applying the person's conservation plan.''.
    (b) Special Penalties Regarding Certain Highly Erodible 
Cropland.--Section 1212(f)(2) of the Food Security Act of 1985 
(16 U.S.C. 3812(f)(2)) is amended by striking ``meets the 
requirements of paragraph (1)'' and inserting ``with respect to 
highly erodible cropland that was not in production prior to 
December 23, 1985, and has acted in good faith and without an 
intent to violate the provisions''.
    (c) Conforming Amendment.--Section 1212(f)(4) of the Food 
Security Act of 1985 (16 U.S.C. 3812(f)(4)) is amended by 
striking the last sentence.

SEC. 314. EXPEDITED PROCEDURES FOR GRANTING VARIANCES FROM CONSERVATION 
                    PLANS.

    Section 1212(f) of the Food Security Act of 1985 (16 U.S.C. 
3812(f)(4)) is amended--
            (1) in paragraph (4)(C), by striking ``problem'' 
        and inserting ``problem, including weather, pest, and 
        disease problems''; and
            (2) by adding at the end the following:
            ``(5) Expedited procedures for temporary 
        variances.--After consultation with local conservation 
        districts, the Secretary shall establish expedited 
        procedures for the consideration and granting of 
        temporary variances under paragraph (4)(C). If the 
        request for a temporary variance under paragraph (4)(C) 
        involves the use of practices or measures to address 
        weather, pest, or disease problems, the Secretary shall 
        make a decision on whether to grant the variance during 
        the 30-day period beginning on the date of receipt of 
        the request. If the Secretary fails to render a 
        decision during the period, the temporary variance 
        shall be considered granted.''.

SEC. 315. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
                    CONSERVATION SYSTEMS.

    (a) Development and Implementation.--The Food Security Act 
of 1985 is amended--
            (1) by redesignating section 1213 (16 U.S.C. 3813) 
        as section 1214; and
            (2) by inserting after section 1212 (16 U.S.C. 
        3812) the following:

``SEC. 1213. DEVELOPMENT AND IMPLEMENTATION OF CONSERVATION PLANS AND 
                    CONSERVATION SYSTEMS.

    ``(a) Technical Requirements.--In connection with the 
standards and guidelines contained in Natural Resources 
Conservation Service field office technical guides applicable 
to the development and use of conservation measures and 
management practices as part of a conservation system, the 
Secretary shall ensure that the standards and guidelines permit 
a person to use a conservation system that--
            ``(1) is technically and economically feasible;
            ``(2) is based on local resource conditions and 
        available conservation technology;
            ``(3) is cost-effective; and
            ``(4) does not cause undue economic hardship on the 
        person applying the conservation system under the 
        person's conservation plan.
    ``(b) Measurement of Erosion Reduction.--For the purpose of 
determining whether there is a substantial reduction in soil 
erosion on a field containing highly erodible cropland, the 
measurement of erosion reduction achieved by the application of 
a conservation system under a person's conservation plan shall 
be based on the estimated annual level of erosion at the time 
of the measurement compared to the estimated annual level of 
erosion that existed before the implementation of the 
conservation measures and management practices provided for in 
the conservation system.
    ``(c) Residue Measurement.--
            ``(1) Responsibilities of the secretary.--For the 
        purpose of measuring the level of residue on a field, 
        the Secretary shall--
                    ``(A) take into account any residue 
                incorporated into the top 2 inches of soil, as 
                well as the growing crop, in the measurement;
                    ``(B) provide technical guidelines for 
                acceptable residue measurement methods;
                    ``(C) provide a certification system for 
                third parties to perform residue measurements; 
                and
                    ``(D) provide for the acceptance and use of 
                information and data voluntarily provided by 
                the producer regarding the field.
            ``(2) Acceptance of producer measurements.--Annual 
        residue measurements supplied by a producer (including 
        measurements performed by a certified third party) 
        shall be used by the Secretary if the Secretary 
        determines that the measurements indicate that the 
        residue level for the field meets the level required 
        under the conservation plan.
    ``(d) Certification of Compliance.--
            ``(1) In general.--For the purpose of determining 
        the eligibility of a person for program benefits 
        specified in section 1211 at the time application is 
        made for the benefits, the Secretary shall permit the 
        person to certify that the person is complying with the 
        person's conservation plan.
            ``(2) Status reviews.--If a person makes a 
        certification under paragraph (1), the Secretary shall 
        not be required to carry out a review of the status of 
        compliance of the person with the conservation plan 
        under which the conservation system is being applied.
            ``(3) Revisions and modifications.--The Secretary 
        shall permit a person who makes a certification under 
        paragraph (1) with respect to a conservation plan to 
        revise the conservation plan in any manner, if the same 
        level of conservation treatment provided for by the 
        conservation system under the person's conservation 
        plan is maintained. The Secretary may not revise the 
        person's conservation plan without the concurrence of 
        the person.
    ``(e) Technical Assistance.--The Secretary shall, using 
available resources and consistent with the Secretary's other 
conservation responsibilities and objectives, provide technical 
assistance to a person throughout the development, revision, 
and application of the conservation plan and any conservation 
system of the person. At the request of the person, the 
Secretary may provide technical assistance regarding 
conservation measures and management practices for other lands 
of the person that do not contain highly erodible cropland.
    ``(f) Encouragement of On-Farm Research.--To encourage on-
farm conservation research, the Secretary may allow a person to 
include in the person's conservation plan or a conservation 
system under the plan, on a field trial basis, practices that 
are not currently approved but that the Secretary considers 
have a reasonable likelihood of success.''.
    (b) Treatment of Technical Determinations.--Section 
226(d)(2) of the Department of Agriculture Reorganization Act 
of 1994 (7 U.S.C. 6932(d)(2)) is amended--
            (1) by striking ``determination.--With'' and 
        inserting ``determination.--
                    ``(A) In general.--With''; and
            (2) by adding at the end the following:
                    ``(B) Economic hardship.--After a technical 
                determination has been made, on a producer's 
                request, if a county or area committee 
                determines that the application of the 
                producer's conservation system would impose an 
                undue economic hardship on the producer, the 
                committee shall provide the producer with 
                relief to avoid the hardship.''.

SEC. 316. INVESTIGATION OF POSSIBLE COMPLIANCE DEFICIENCIES.

    Subtitle B of title XII of the Food Security Act of 1985 
(as amended by section 315(a)(1)) is amended by adding at the 
end the following:

``SEC. 1215. NOTICE AND INVESTIGATION OF POSSIBLE COMPLIANCE 
                    DEFICIENCIES.

    ``(a) In General.--An employee of the Department of 
Agriculture who observes a possible compliance deficiency or 
other potential violation of a conservation plan or this 
subtitle while providing on-site technical assistance shall 
provide to the responsible persons, not later than 45 days 
after observing the possible violation, information regarding 
actions needed to comply with the plan and this subtitle. The 
employee shall provide the information in lieu of reporting the 
observation as a compliance violation.
    ``(b) Corrective Action.--The responsible persons shall 
attempt to correct the deficiencies as soon as practicable 
after receiving the information.
    ``(c) Review.--If the corrective action is not fully 
implemented not later than 1 year after the responsible persons 
receive the information, the Secretary may conduct a review of 
the status of compliance of the persons with the conservation 
plan and this subtitle.''.

SEC. 317. WIND EROSION ESTIMATION PILOT PROJECT.

    (a) In General.--The Secretary of Agriculture shall conduct 
a pilot project to review, and modify as appropriate, the use 
of wind erosion factors under the highly erodible conservation 
requirements of subtitle B of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3811 et seq.)
    (b) Selection of Counties and Producers.--The pilot project 
shall be conducted for producers in those counties that--
            (1) have approximately 100 percent of their 
        cropland determined to be highly erodible under title 
        XII of the Act;
            (2) have a reasonable likelihood that the use of 
        wind erosion factors under title XII of the Act have 
        resulted in an inequitable application of the highly 
        erodible land requirements of title XII of the Act; and
            (3) if the use of the land classification system 
        under section 1201(a)(9)(A) of the Act (as redesignated 
        by section 301(a)(1)) may result in a more accurate 
        delineation of the cropland.
    (c) Errors in Delineation.--If the Secretary determines 
that a significant error has occurred in delineating cropland 
under the pilot project, the Secretary shall, at the request of 
the owners or operators of the cropland, conduct a new 
delineation of the cropland using the most accurate available 
delineation process, as determined by the Secretary.

                    Subtitle C--Wetland Conservation

SEC. 321. PROGRAM INELIGIBILITY.

    (a) Program Ineligibility.--Section 1221 of the Food 
Security Act of 1985 (16 U.S.C. 3821) is amended--
            (1) by redesignating subsection (b) as subsection 
        (c); and
            (2) by striking the section heading and all that 
        follows through the end of subsection (a) and inserting 
        the following:

``SEC. 1221. PROGRAM INELIGIBILITY.

    ``(a) Production on Converted Wetland.--Except as provided 
in this subtitle and notwithstanding any other provision of 
law, any person who in any crop year produces an agricultural 
commodity on converted wetland, as determined by the Secretary, 
shall be--
            ``(1) in violation of this section; and
            ``(2) ineligible for loans or payments in an amount 
        determined by the Secretary to be proportionate to the 
        severity of the violation.
    ``(b) Ineligibility for Certain Loans and Payments.--If a 
person is determined to have committed a violation under 
subsection (a) during a crop year, the Secretary shall 
determine which of, and the amount of, the following loans and 
payments for which the person shall be ineligible:
            ``(1) Contract payments under a production 
        flexibility contract, marketing assistance loans, and 
        any type of price support or payment made available 
        under the Agricultural Market Transition Act, the 
        Commodity Credit Corporation Charter Act (15 U.S.C. 714 
        et seq.), or any other Act.
            ``(2) A loan made or guaranteed under the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1921 et seq.) or any other provision of law 
        administered by the Consolidated Farm Service Agency, 
        if the Secretary determines that the proceeds of the 
        loan will be used for a purpose that will contribute to 
        conversion of a wetland (other than as provided in this 
        subtitle) to produce an agricultural commodity.
            ``(3) During the crop year:
                    ``(A) A payment made pursuant to a contract 
                entered into under the environmental quality 
                incentives program under chapter 4 of subtitle 
                D.
                    ``(B) A payment under any other provision 
                of subtitle D.
                    ``(C) A payment under section 401 or 402 of 
                the Agricultural Credit Act of 1978 (16 U.S.C. 
                2201 and 2202).
                    ``(D) A payment, loan, or other assistance 
                under section 3 or 8 of the Watershed 
                Protection and Flood Prevention Act (16 U.S.C. 
                1003 and 1006a).''.
    (b) Conforming Amendments.--
            (1) Section 1221(c) of the Food Security Act of 
        1985 (as redesignated by subsection (a)(1)) is 
        amended--
                    (A) by striking ``Except'' and inserting 
                ``Wetland Conversion.--Except'';
                    (B) by striking ``subsequent to the date of 
                enactment of the Food, Agriculture, 
                Conservation, and Trade Act of 1990'' and 
                inserting ``beginning after November 28, 
                1990,''; and
                    (C) by striking ``subsections (a) (1) 
                through (3)'' and inserting ``subsection (b)''.
            (2) Section 1221 of the Food Security Act of 1985 
        (as amended by subsection (a)) is amended by adding at 
        the end the following:
    ``(d) Prior Loans.--This section shall not apply to a loan 
described in subsection (b) made before December 23, 1985.''.

SEC. 322. DELINEATION OF WETLANDS; EXEMPTIONS TO PROGRAM INELIGIBILITY.

    (a) Delineation of Wetlands.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (a) and inserting the following:
    ``(a) Delineation by the Secretary.--
            ``(1) In general.--Subject to subsection (b) and 
        paragraph (6), the Secretary shall delineate, 
        determine, and certify all wetlands located on subject 
        land on a farm.
            ``(2) Wetland delineation maps.--The Secretary 
        shall delineate wetlands on wetland delineation maps. 
        On the request of a person, the Secretary shall make a 
        reasonable effort to make an on-site wetland 
        determination prior to delineation.
            ``(3) Certification.--On providing notice to 
        affected persons, the Secretary shall--
                    ``(A) certify whether a map is sufficient 
                for the purpose of making a determination of 
                ineligibility for program benefits under 
                section 1221; and
                    ``(B) provide an opportunity to appeal the 
                certification prior to the certification 
                becoming final.
            ``(4) Duration of certification.--A final 
        certification made under paragraph (3) shall remain 
        valid and in effect as long as the area is devoted to 
        an agricultural use or until such time as the person 
        affected by the certification requests review of the 
        certification by the Secretary.
            ``(5) Review of mapping on appeal.--In the case of 
        an appeal of the Secretary's certification, the 
        Secretary shall review and certify the accuracy of the 
        mapping of all land subject to the appeal to ensure 
        that the subject land has been accurately delineated. 
        Prior to rendering a decision on the appeal, the 
        Secretary shall conduct an on-site inspection of the 
        subject land on a farm.
            ``(6) Reliance on prior certified delineation.--No 
        person shall be adversely affected because of having 
        taken an action based on a previous certified wetland 
        delineation by the Secretary. The delineation shall not 
        be subject to a subsequent wetland certification or 
        delineation by the Secretary, unless requested by the 
        person under paragraph (4).''.
    (b) Exemptions.--Section 1222 of the Food Security Act of 
1985 (16 U.S.C. 3822) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Exemptions.--No person shall become ineligible under 
section 1221 for program loans or payments under the following 
circumstances:
            ``(1) As the result of the production of an 
        agricultural commodity on the following lands:
                    ``(A) A converted wetland if the conversion 
                of the wetland was commenced before December 
                23, 1985.
                    ``(B) Land that is a nontidal drainage or 
                irrigation ditch excavated in upland.
                    ``(C) A wet area created by a water 
                delivery system, irrigation, irrigation system, 
                or application of water for irrigation.
                    ``(D) A wetland on which the owner or 
                operator of a farm or ranch uses normal 
                cropping or ranching practices to produce an 
                agricultural commodity in a manner that is 
                consistent for the area where the production is 
                possible as a result of a natural condition, 
                such as drought, and is without action by the 
                producer that destroys a natural wetland 
                characteristic.
                    ``(E) Land that is an artificial lake or 
                pond created by excavating or diking land (that 
                is not a wetland) to collect and retain water 
                and that is used primarily for livestock 
                watering, fish production, irrigation, 
                wildlife, fire control, flood control, 
                cranberry growing, or rice production, or as a 
                settling pond.
                    ``(F) A wetland that is temporarily or 
                incidentally created as a result of adjacent 
                development activity.
                    ``(G) A converted wetland if the original 
                conversion of the wetland was commenced before 
                December 23, 1985, and the Secretary determines 
                the wetland characteristics returned after that 
                date as a result of--
                            ``(i) the lack of maintenance of 
                        drainage, dikes, levees, or similar 
                        structures;
                            ``(ii) a lack of management of the 
                        lands containing the wetland; or
                            ``(iii) circumstances beyond the 
                        control of the person.
                    ``(H) A converted wetland, if--
                            ``(i) the converted wetland was 
                        determined by the Natural Resources 
                        Conservation Service to have been 
                        manipulated for the production of an 
                        agricultural commodity or forage prior 
                        to December 23, 1985, and was returned 
                        to wetland conditions through a 
                        voluntary restoration, enhancement, or 
                        creation action subsequent to that 
                        determination;
                            ``(ii) technical determinations 
                        regarding the prior site conditions and 
                        the restoration, enhancement, or 
                        creation action have been adequately 
                        documented by the Natural Resources 
                        Conservation Service;
                            ``(iii) the proposed conversion 
                        action is approved by the Natural 
                        Resources Conservation Service prior to 
                        implementation; and
                            ``(iv) the extent of the proposed 
                        conversion is limited so that the 
                        conditions will be at least equivalent 
                        to the wetland functions and values 
                        that existed prior to implementation of 
                        the voluntary wetland restoration, 
                        enhancement, or creation action.
            ``(2) For the conversion of the following:
                    ``(A) An artificial lake or pond created by 
                excavating or diking land that is not a wetland 
                to collect and retain water and that is used 
                primarily for livestock watering, fish 
                production, irrigation, wildlife, fire control, 
                flood control, cranberry growing, rice 
                production, or as a settling pond.
                    ``(B) A wetland that is temporarily or 
                incidentally created as a result of adjacent 
                development activity.
                    ``(C) A wetland on which the owner or 
                operator of a farm or ranch uses normal 
                cropping or ranching practices to produce an 
                agricultural commodity in a manner that is 
                consistent for the area where the production is 
                possible as a result of a natural condition, 
                such as drought, and is without action by the 
                producer that destroys a natural wetland 
                characteristic.
                    ``(D) A wetland previously identified as a 
                converted wetland (if the original conversion 
                of the wetland was commenced before December 
                23, 1985), but that the Secretary determines 
                returned to wetland status after that date as a 
                result of--
                            ``(i) the lack of maintenance of 
                        drainage, dikes, levees, or similar 
                        structures;
                            ``(ii) a lack of management of the 
                        lands containing the wetland; or
                            ``(iii) circumstances beyond the 
                        control of the person.
                    ``(E) A wetland, if--
                            ``(i) the wetland was determined by 
                        the Natural Resources Conservation 
                        Service to have been manipulated for 
                        the production of an agricultural 
                        commodity or forage prior to December 
                        23, 1985, and was returned to wetland 
                        conditions through a voluntary 
                        restoration, enhancement, or creation 
                        action subsequent to that 
                        determination;
                            ``(ii) technical determinations 
                        regarding the prior site conditions and 
                        the restoration, enhancement, or 
                        creation action have been adequately 
                        documented by the Natural Resources 
                        Conservation Service;,
                            ``(iii) the proposed conversion 
                        action is approved by the Natural 
                        Resources Conservation Service prior to 
                        implementation; and
                            ``(iv) the extent of the proposed 
                        conversion is limited so that the 
                        conditions will be at least equivalent 
                        to the wetland functions and values 
                        that existed prior to implementation of 
                        the voluntary wetland restoration, 
                        enhancement, or creation action.''.
    (c) Identification of Minimal Effect Exemptions.--Section 
1222 of the Food Security Act of 1985 (16 U.S.C. 3822) is 
amended by striking subsection (d) and inserting the following:
    ``(d) Identification of Minimal Effect Exemptions.--For 
purposes of applying the minimal effect exemption under 
subsection (f)(1), the Secretary shall identify by regulation 
categorical minimal effect exemptions on a regional basis to 
assist persons in avoiding a violation of the ineligibility 
provisions of section 1221. The Secretary shall ensure that 
employees of the Department of Agriculture who administer this 
subtitle receive appropriate training to properly apply the 
minimal effect exemptions determined by the Secretary.''.
    (d) Minimal Effect and Mitigation Exemptions.--Section 1222 
of the Food Security Act of 1985 (16 U.S.C. 3822) is amended by 
striking subsection (f) and inserting the following:
    ``(f) Minimal Effect; Mitigation.--The Secretary shall 
exempt a person from the ineligibility provisions of section 
1221 for any action associated with the production of an 
agricultural commodity on a converted wetland, or the 
conversion of a wetland, if 1 or more of the following 
conditions apply, as determined by the Secretary:
            ``(1) The action, individually and in connection 
        with all other similar actions authorized by the 
        Secretary in the area, will have a minimal effect on 
        the functional hydrological and biological value of the 
        wetlands in the area, including the value to waterfowl 
        and wildlife.
            ``(2) The wetland and the wetland values, acreage, 
        and functions are mitigated by the person through the 
        restoration of a converted wetland, the enhancement of 
        an existing wetland, or the creation of a new wetland, 
        and the restoration, enhancement, or creation is--
                    ``(A) in accordance with a wetland 
                conservation plan;
                    ``(B) in advance of, or concurrent with, 
                the action;
                    ``(C) not at the expense of the Federal 
                Government;
                    ``(D) in the case of enhancement or 
                restoration of wetlands, on not greater than a 
                1-for-1 acreage basis unless more acreage is 
                needed to provide equivalent functions and 
                values that will be lost as a result of the 
                wetland conversion to be mitigated;
                    ``(E) in the case of creation of wetlands, 
                on greater than a 1-for-1 acreage basis if more 
                acreage is needed to provide equivalent 
                functions and values that will be lost as a 
                result of the wetland conversion that is 
                mitigated;
                    ``(F) on lands in the same general area of 
                the local watershed as the converted wetland; 
                and
                    ``(G) with respect to the restored, 
                enhanced, or created wetland, made subject to 
                an easement that--
                            ``(i) is recorded on public land 
                        records;
                            ``(ii) remains in force for as long 
                        as the converted wetland for which the 
                        restoration, enhancement, or creation 
                        to be mitigated remains in agricultural 
                        use or is not returned to its original 
                        wetland classification with equivalent 
                        functions and values; and
                            ``(iii) prohibits making 
                        alterations to the restored, enhanced, 
                        or created wetland that lower the 
                        wetland's functions and values.
            ``(3) The wetland was converted after December 23, 
        1985, but before November 28, 1990, and the wetland 
        values, acreage, and functions are mitigated by the 
        producer through the requirements of subparagraphs (A), 
        (B), (C), (D), (F), and (G) of paragraph (2).
            ``(4) The action was authorized by a permit issued 
        under section 404 of the Federal Water Pollution 
        Control Act (33 U.S.C. 1344) and the wetland values, 
        acreage, and functions of the converted wetland were 
        adequately mitigated for the purposes of this 
        subtitle.''.
    (e) References to Producer.--Section 1222(g) of the Food 
Security Act of 1985 (16 U.S.C. 3822(g)) is amended by striking 
``producer'' and inserting ``person''.
    (f) Good Faith Exemption.--Section 1222 of the Food 
Security Act of 1985 (16 U.S.C. 3822) is amended by striking 
subsection (h) and inserting the following:
    ``(h) Good Faith Exemption.--
            ``(1) Exemption described.--The Secretary may waive 
        a person's ineligibility under section 1221 for program 
        loans, payments, and benefits as the result of the 
        conversion of a wetland subsequent to November 28, 
        1990, or the production of an agricultural commodity on 
        a converted wetland, if the Secretary determines that 
        the person has acted in good faith and without intent 
        to violate this subtitle.
            ``(2) Period for compliance.--The Secretary shall 
        provide a person who the Secretary determines has acted 
        in good faith and without intent to violate this 
        subtitle with a reasonable period, but not to exceed 1 
        year, during which to implement the measures and 
        practices necessary to be considered to actively 
        restoring the subject wetland.''.
    (g) Restoration.--Section 1222(i) of the Food Security Act 
of 1985 (16 U.S.C. 3822(i)) is amended by inserting before the 
period at the end the following: ``or has otherwise mitigated 
for the loss of wetland values, as determined by the Secretary, 
through the restoration, enhancement, or creation of wetland 
values in the same general area of the local watershed as the 
converted wetland''.
    (h) Determinations.--Section 1222 of the Food Security Act 
of 1985 (16 U.S.C. 3822) is amended by striking subsection (j) 
and inserting the following:
    ``(j) Determinations; Restoration and Mitigation Plans; 
Monitoring Activities.--Technical determinations, the 
development of restoration and mitigation plans, and monitoring 
activities under this section shall be made by the National 
Resources Conservation Service.''.
    (i) Mitigation Banking.--Section 1222 of the Food Security 
Act of 1985 (16 U.S.C. 3822) is amended by adding at the end 
the following:
    ``(k) Mitigation Banking Program.--Using authorities 
available to the Secretary, the Secretary may operate a pilot 
program for mitigation banking of wetlands to assist persons to 
increase the efficiency of agricultural operations while 
protecting wetland functions and values. Subsection (f)(2)(C) 
shall not apply to this subsection.''.

SEC. 323. CONSULTATION AND COOPERATION REQUIREMENTS.

    Section 1223 of the Food Security Act of 1985 (16 U.S.C. 
3823) is repealed.

SEC. 324. APPLICATION OF PROGRAM INELIGIBILITY TO AFFILIATED PERSONS.

    The Food Security Act of 1985 (as amended by section 323) 
is amended by inserting after section 1222 (16 U.S.C. 3822) the 
following:

``SEC. 1223. AFFILIATED PERSONS.

    ``If a person is affected by a reduction in benefits under 
section 1221 and the affected person is affiliated with other 
persons for the purpose of receiving the benefits, the benefits 
of each affiliated person shall be reduced under section 1221 
in proportion to the interest held by the affiliated person.''.

SEC. 325. CLARIFICATION OF DEFINITION OF AGRICULTURAL LANDS IN 
                    MEMORANDUM OF AGREEMENT.

    (a) Agricultural Lands.--For purposes of implementing the 
memorandum of agreement entered into between the Department of 
Agriculture, the Environmental Protection Agency, the 
Department of the Interior, and the Department of the Army on 
January 6, 1994, relating to the delineation of wetlands, the 
term ``agricultural lands'' shall include--
            (1) native pasture, rangelands, and other lands 
        used to produce or support the production of livestock; 
        and
            (2) tree farms.
    (b) Wetland Conservation.--Subsection (a) shall not apply 
with respect to the delineation of wetlands under subtitle C of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3821 et 
seq.) or to the enforcement of the subtitle.
    (c) Successor Memorandum.--Subsection (a) shall apply to 
any amendment to or successor of the memorandum of agreement 
described in subsection (a).

SEC. 326. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle 
shall become effective 90 days after the date of enactment of 
this Act.

     Subtitle D--Environmental Conservation Acreage Reserve Program

SEC. 331. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    Section 1230 of the Food Security Act of 1985 (16 U.S.C. 
3830) is amended to read as follows:

``SEC. 1230. ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 
        calendar years, the Secretary shall establish an 
        environmental conservation acreage reserve program 
        (referred to in this section as `ECARP') to be 
        implemented through contracts and the acquisition of 
        easements to assist owners and operators of farms and 
        ranches to conserve and enhance soil, water, and 
        related natural resources, including grazing land, 
        wetland, and wildlife habitat.
            ``(2) Means.--The Secretary shall carry out the 
        ECARP by--
                    ``(A) providing for the long-term 
                protection of environmentally sensitive land; 
                and
                    ``(B) providing technical and financial 
                assistance to farmers and ranchers to--
                            ``(i) improve the management and 
                        operation of the farms and ranches; and
                            ``(ii) reconcile productivity and 
                        profitability with protection and 
                        enhancement of the environment.
            ``(3) Programs.--The ECARP shall consist of--
                    ``(A) the conservation reserve program 
                established under subchapter B;
                    ``(B) the wetlands reserve program 
                established under subchapter C; and
                    ``(C) the environmental quality incentives 
                program established under chapter 4.
    ``(b) Administration.--
            ``(1) In general.--In carrying out the ECARP, the 
        Secretary shall enter into contracts with owners and 
        operators and acquire interests in land through 
        easements from owners, as provided in this chapter and 
        chapter 4.
            ``(2) Prior enrollments.--Acreage enrolled in the 
        conservation reserve or wetlands reserve program prior 
        to the date of enactment of this paragraph shall be 
        considered to be placed into the ECARP.
    ``(c) Conservation Priority Areas.--
            ``(1) Designation.--The Secretary may designate 
        watersheds, multistate areas, or regions of special 
        environmental sensitivity as conservation priority 
        areas that are eligible for enhanced assistance under 
        this chapter and chapter 4.
            ``(2) Assistance.--The Secretary may designate 
        areas as conservation priority areas to assist, to the 
        maximum extent practicable, agricultural producers 
        within the conservation priority areas to comply with 
        nonpoint source pollution requirements under the 
        Federal Water Pollution Control Act (33 U.S.C. 1251 et 
        seq.) and other Federal and State environmental laws 
        and to meet other conservation needs.
            ``(3) Producers.--The Secretary may provide 
        technical assistance, cost-share payments, and 
        incentive payments to producers in a conservation 
        priority area under this chapter and chapter 4 based 
        on--
                    ``(A) the significance of the soil, water, 
                wildlife habitat, and related natural resource 
                problems in a watershed, multistate area, or 
                region; and
                    ``(B) the structural practices or land 
                management practices that best address the 
                problems, and that maximize environmental 
                benefits for each dollar expended, as 
                determined by the Secretary.''.

SEC. 332. CONSERVATION RESERVE PROGRAM.

    (a) Program Extensions.--
            (1) Conservation reserve program.--Section 1231 of 
        the Food Security Act of 1985 (16 U.S.C. 3831) is 
        amended by striking ``1995'' each place it appears and 
        inserting ``2002''.
            (2) Duties of owners and operators.--Section 
        1232(c) of the Food Security Act of 1985 (16 U.S.C. 
        3832(c)) is amended by striking ``1995'' and inserting 
        ``2002''.
    (b) Maximum Enrollment.--Section 1231 of the Food Security 
Act of 1985 (16 U.S.C. 3831) is amended by striking subsection 
(d) and inserting the following:
    ``(d) Maximum Enrollment.--The Secretary may maintain up to 
36,400,000 acres in the conservation reserve at any one time 
during the 1986 through 2002 calendar years (including 
contracts extended by the Secretary pursuant to section 1437(c) 
of the Food, Agriculture, Conservation, and Trade Act of 1990 
(Public Law 101-624; 16 U.S.C. 3831 note).''.
    (c) Optional Contract Termination by Producers.--Section 
1235 of the Food Security Act of 1985 (16 U.S.C. 3835) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``3-
                year'' and inserting ``1-year''; and
                    (B) in paragraph (2)(B)(i), by striking ``3 
                years'' and inserting ``1 year''; and
            (2) by adding at the end the following:
    ``(e) Termination by Owner or Operator.--
            ``(1) Early termination authorized.--Subject to the 
        other provisions of this subsection, the Secretary 
        shall allow a participant who entered into a contract 
        before January 1, 1995, to terminate the contract at 
        any time if the contract has been in effect for at 
        least 5 years. The termination shall not relieve the 
        participant of liability for a contract violation 
        occurring before the date of the termination. The 
        participant shall provide the Secretary with reasonable 
        notice of the participant's desire to terminate the 
        contract.
            ``(2) Certain lands excepted.--The following lands 
        shall not be subject to an early termination of 
        contract under this subsection:
                    ``(A) Filterstrips, waterways, strips 
                adjacent to riparian areas, windbreaks, and 
                shelterbelts.
                    ``(B) Land with an erodibility index of 
                more than 15.
                    ``(C) Other lands of high environmental 
                value (including wetlands), as determined by 
                the Secretary.
            ``(3) Effective date.--The contract termination 
        shall become effective 60 days after the date on which 
        the owner or operator submits the notice required under 
        paragraph (1).
            ``(4) Prorated rental payment.--If a contract 
        entered into under this subchapter is terminated under 
        this subsection before the end of the fiscal year for 
        which a rental payment is due, the Secretary shall 
        provide a prorated rental payment covering the portion 
        of the fiscal year during which the contract was in 
        effect.
            ``(5) Renewed enrollment.--The termination of a 
        contract entered into under this subchapter shall not 
        affect the ability of the owner or operator who 
        requested the termination to submit a subsequent bid to 
        enroll the land that was subject to the contract into 
        the conservation reserve.
            ``(6) Conservation requirements.--If land that was 
        subject to a contract is returned to production of an 
        agricultural commodity, the conservation requirements 
        under subtitles B and C shall apply to the use of the 
        land to the extent that the requirements are similar to 
        those requirements imposed on other similar lands in 
        the area, except than the requirements may not be more 
        onerous than the requirements imposed on other 
        lands.''.
    (d) Enrollments in 1997.--Section 725 of the Agriculture, 
Rural Development, Food and Drug Administration, and Related 
Agencies Appropriations Act, 1996 (Public Law 104-37; 109 Stat. 
332), is amended by striking ``: Provided,'' and all that 
follows through ``1997''.

SEC. 333. WETLANDS RESERVE PROGRAM.

    (a) Enrollment.--Section 1237 of the Food Security Act of 
1985 (16 U.S.C. 3837) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of 
        acres enrolled in the wetlands reserve program shall 
        not exceed 975,000 acres.
            ``(2) Methods of enrollment.--
                    ``(A) In general.--Subject to subparagraph 
                (B), effective beginning October 1, 1996, to 
                the maximum extent practicable, the Secretary 
                shall enroll into the wetlands reserve 
                program--
                            ``(i) \1/3\ of the acres through 
                        the use of permanent easements;
                            ``(ii) \1/3\ of the acres through 
                        the use of 30-year easements; and
                            ``(iii) \1/3\ of the acres through 
                        the use of restoration cost-share 
                        agreements.
                    ``(B) Temporary easements.--Effective 
                beginning October 1, 1996, the Secretary shall 
                not enroll acres in the wetlands reserve 
                program through the use of new permanent 
                easements until the Secretary has enrolled at 
                least 75,000 acres in the program through the 
                use of temporary easements.''.
    (b) Eligibility.--Section 1237(c) of the Food Security Act 
of 1985 (16 U.S.C. 3837(c)) is amended--
            (1) by striking ``2000'' and inserting ``2002'';
            (2) by redesignating paragraphs (1) and (2) as 
        paragraphs (2) and (3), respectively; and
            (3) by inserting after ``determines that--'' the 
        following:
            ``(1) such land maximizes wildlife benefits and 
        wetland values and functions;''.
    (c) Other Eligible Lands.--Section 1237(d) of the Food 
Security Act of 1985 (16 U.S.C. 3837(d)) is amended--
            (1) by inserting after ``subsection (c)'' the 
        following ``, land that maximizes wildlife benefits and 
        that is''; and
            (2) in paragraph (2), by striking ``and'' at the 
        end and inserting ``or''.
    (d) Easements.--Section 1237A of the Food Security Act of 
1985 (16 U.S.C. 3837a) is amended--
            (1) in the section heading, by inserting before the 
        period at the end the following: ``AND AGREEMENTS'';
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Restoration Plans.--The development of a restoration 
plan, including any compatible use, under this section shall be 
made through the local Natural Resources Conservation Service 
representative, in consultation with the State technical 
committee.'';
            (3) in subsection (f), by striking the third 
        sentence and inserting the following: ``Compensation 
        may be provided in not less than 5, nor more than 30, 
        annual payments of equal or unequal size, as agreed to 
        by the owner and the Secretary.''; and
            (4) by adding at the end the following:
    ``(h) Restoration Cost-Share Agreements.--The Secretary may 
enroll land into the wetlands reserve program through an 
agreement that requires the landowner to restore wetlands on 
the land, if the agreement does not provide the Secretary with 
an easement.''.
    (e) Cost-Share and Technical Assistance.--Section 1237C of 
the Food Security Act of 1985 (16 U.S.C. 3837c) is amended by 
striking subsection (b) and inserting the following:
    ``(b) Cost-Share and Technical Assistance.--
            ``(1) Easements.--Effective beginning October 1, 
        1996, in making cost-share payments under subsection 
        (a)(1), the Secretary shall--
                    ``(A) in the case of a permanent easement, 
                pay the owner an amount that is not less than 
                75 percent, but not more than 100 percent, of 
                the eligible costs; and
                    ``(B) in the case of a 30-year easement, 
                pay the owner an amount that is not less than 
                50 percent, but not more than 75 percent, of 
                the eligible costs.
            ``(2) Restoration cost-share agreements.--In making 
        cost-share payments in connection with a restoration 
        cost-share agreement entered into under section 
        1237A(h), the Secretary shall pay the owner an amount 
        that is not less than 50 percent, but not more than 75 
        percent, of the eligible costs.
            ``(3) Technical assistance.--The Secretary shall 
        provide owners with technical assistance to assist 
        owners in complying with the terms of easements and 
        restoration cost-share agreements.''.
    (f) Effect on Existing Agreements.--The amendments made by 
this section shall not affect the validity or terms of any 
agreements entered into by the Secretary of Agriculture under 
subchapter C of chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3837 et seq.) before the 
date of enactment of this Act or any payments required to be 
made in connection with the agreements.

SEC. 334. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

         ``CHAPTER 4--ENVIRONMENTAL QUALITY INCENTIVES PROGRAM

``SEC. 1240. PURPOSES.

    ``The purposes of the environmental quality incentives 
program established by this chapter are to--
            ``(1) combine into a single program the functions 
        of--
                    ``(A) the agricultural conservation program 
                authorized by sections 7 and 8 of the Soil 
                Conservation and Domestic Allotment Act (16 
                U.S.C. 590g and 590h) (as in effect before the 
                amendments made by section 336(a)(1) of the 
                Federal Agriculture Improvement and Reform Act 
                of 1996);
                    ``(B) the Great Plains conservation program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 
                U.S.C. 590p(b)) (as in effect before the 
                amendment made by section 336(b)(1) of the 
                Federal Agriculture Improvement and Reform Act 
                of 1996);
                    ``(C) the water quality incentives program 
                established under chapter 2 (as in effect 
                before the amendment made by section 336(h) of 
                the Federal Agriculture Improvement and Reform 
                Act of 1996); and
                    ``(D) the Colorado River Basin salinity 
                control program established under section 
                202(c) of the Colorado River Basin Salinity 
                Control Act (43 U.S.C. 1592(c)) (as in effect 
                before the amendment made by section 336(c)(1) 
                of the Federal Agriculture Improvement and 
                Reform Act of 1996); and
            ``(2) carry out the single program in a manner that 
        maximizes environmental benefits per dollar expended, 
        and that provides--
                    ``(A) flexible technical and financial 
                assistance to farmers and ranchers that face 
                the most serious threats to soil, water, and 
                related natural resources, including grazing 
                lands, wetlands, and wildlife habitat;
                    ``(B) assistance to farmers and ranchers in 
                complying with this title and Federal and State 
                environmental laws, and encourages 
                environmental enhancement;
                    ``(C) assistance to farmers and ranchers in 
                making beneficial, cost-effective changes to 
                cropping systems, grazing management, manure, 
                nutrient, pest, or irrigation management, land 
                uses, or other measures needed to conserve and 
                improve soil, water, and related natural 
                resources; and
                    ``(D) for the consolidation and 
                simplification of the conservation planning 
                process to reduce administrative burdens on 
                producers.

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
            ``(1) Eligible land.--The term `eligible land' 
        means agricultural land (including cropland, rangeland, 
        pasture, and other land on which crops or livestock are 
        produced), including agricultural land that the 
        Secretary determines poses a serious threat to soil, 
        water, or related resources by reason of the soil 
        types, terrain, climatic, soil, topographic, flood, or 
        saline characteristics, or other factors or natural 
        hazards.
            ``(2) Land management practice.--The term `land 
        management practice' means a site-specific nutrient or 
        manure management, integrated pest management, 
        irrigation management, tillage or residue management, 
        grazing management, or other land management practice 
        carried out on eligible land that the Secretary 
        determines is needed to protect, in the most cost-
        effective manner, water, soil, or related resources 
        from degradation.
            ``(3) Livestock.--The term `livestock' means dairy 
        cattle, beef cattle, laying hens, broilers, turkeys, 
        swine, sheep, and such other animals as determined by 
        the Secretary.
            ``(4) Producer.--The term `producer' means a person 
        who is engaged in livestock or agricultural production 
        (as defined by the Secretary).
            ``(5) Structural practice.--The term `structural 
        practice' means--
                    ``(A) the establishment on eligible land of 
                a site-specific animal waste management 
                facility, terrace, grassed waterway, contour 
                grass strip, filterstrip, tailwater pit, 
                permanent wildlife habitat, or other structural 
                practice that the Secretary determines is 
                needed to protect, in the most cost-effective 
                manner, water, soil, or related resources from 
                degradation; and
                    ``(B) the capping of abandoned wells on 
                eligible land.

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

    ``(a) Establishment.--
            ``(1) In general.--During the 1996 through 2002 
        fiscal years, the Secretary shall provide technical 
        assistance, cost-share payments, incentive payments, 
        and education to producers, who enter into contracts 
        with the Secretary, through an environmental quality 
        incentives program in accordance with this chapter.
            ``(2) Eligible practices.--
                    ``(A) Structural practices.--A producer who 
                implements a structural practice shall be 
                eligible for any combination of technical 
                assistance, cost-share payments, and education.
                    ``(B) Land management practices.--A 
                producer who performs a land management 
                practice shall be eligible for any combination 
                of technical assistance, incentive payments, 
                and education.
    ``(b) Application and Term.--A contract between a producer 
and the Secretary under this chapter may--
            ``(1) apply to 1 or more structural practices or 1 
        or more land management practices, or both; and
            ``(2) have a term of not less than 5, nor more than 
        10, years, as determined appropriate by the Secretary, 
        depending on the practice or practices that are the 
        basis of the contract.
    ``(c) Structural Practices.--
            ``(1) Offer selection process.--The Secretary 
        shall, to the maximum extent practicable, establish a 
        process for selecting applications for financial 
        assistance if there are numerous applications for 
        assistance for structural practices that would provide 
        substantially the same level of environmental benefits. 
        The process shall be based on--
                    ``(A) a reasonable estimate of the 
                projected cost of the proposals and other 
                factors identified by the Secretary for 
                determining which applications will result in 
                the least cost to the program authorized by 
                this chapter; and
                    ``(B) the priorities established under this 
                subtitle and such other factors determined by 
                the Secretary that maximize environmental 
                benefits per dollar expended.
            ``(2) Concurrence of owner.--If the producer making 
        an offer to implement a structural practice is a tenant 
        of the land involved in agricultural production, for 
        the offer to be acceptable, the producer shall obtain 
        the concurrence of the owner of the land with respect 
        to the offer.
    ``(d) Land Management Practices.--The Secretary shall 
establish an application and evaluation process for awarding 
technical assistance or incentive payments, or both, to a 
producer in exchange for the performance of 1 or more land 
management practices by the producer.
    ``(e) Cost-Share Payments, Incentive Payments, and 
Technical Assistance.--
            ``(1) Cost-share payments.--
                    ``(A) In general.--The Federal share of 
                cost-share payments to a producer proposing to 
                implement 1 or more structural practices shall 
                be not more than 75 percent of the projected 
                cost of the practice, as determined by the 
                Secretary, taking into consideration any 
                payment received by the producer from a State 
                or local government.
                    ``(B) Limitation.--A producer who owns or 
                operates a large confined livestock operation 
                (as defined by the Secretary) shall not be 
                eligible for cost-share payments to construct 
                an animal waste management facility.
                    ``(C) Other payments.--A producer shall not 
                be eligible for cost-share payments for 
                structural practices on eligible land under 
                this chapter if the producer receives cost-
                share payments or other benefits for the same 
                land under chapter 1 or 3.
            ``(2) Incentive payments.--The Secretary shall make 
        incentive payments in an amount and at a rate 
        determined by the Secretary to be necessary to 
        encourage a producer to perform 1 or more land 
        management practices.
            ``(3) Technical assistance.--
                    ``(A) Funding.--The Secretary shall 
                allocate funding under this chapter for the 
                provision of technical assistance according to 
                the purpose and projected cost for which the 
                technical assistance is provided for a fiscal 
                year. The allocated amount may vary according 
                to the type of expertise required, quantity of 
                time involved, and other factors as determined 
                appropriate by the Secretary. Funding shall not 
                exceed the projected cost to the Secretary of 
                the technical assistance provided for a fiscal 
                year.
                    ``(B) Other authorities.--The receipt of 
                technical assistance under this chapter shall 
                not affect the eligibility of the producer to 
                receive technical assistance under other 
                authorities of law available to the Secretary.
                    ``(C) Private sources.--The Secretary shall 
                ensure that the processes of writing and 
                developing proposals and plans for contracts 
                under this chapter, and of assisting in the 
                implementation of structural practices and land 
                management practices covered by the contracts, 
                are open to individuals in agribusiness, 
                including agricultural producers, 
                representatives from agricultural cooperatives, 
                agricultural input retail dealers, and 
                certified crop advisers. The requirements of 
                this subparagraph shall also apply to any other 
                conservation program of the Department of 
                Agriculture that provides incentive payments, 
                technical assistance, or cost-share payments.
    ``(f) Modification or Termination of Contracts.--
            ``(1) Voluntary modification or termination.--The 
        Secretary may modify or terminate a contract entered 
        into with a producer under this chapter if--
                    ``(A) the producer agrees to the 
                modification or termination; and
                    ``(B) the Secretary determines that the 
                modification or termination is in the public 
                interest.
            ``(2) Involuntary termination.--The Secretary may 
        terminate a contract under this chapter if the 
        Secretary determines that the producer violated the 
        contract.
    ``(g) Non-Federal Assistance.--The Secretary may request 
the services of a State water quality agency, State fish and 
wildlife agency, State forestry agency, or any other 
governmental or private resource considered appropriate to 
assist in providing the technical assistance necessary for the 
development and implementation of a structural practice or land 
management practice.

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

    ``In providing technical assistance, cost-share payments, 
and incentive payments to producers, the Secretary shall accord 
a higher priority to assistance and payments that--
            ``(1) are provided in conservation priority areas 
        established under section 1230(c);
            ``(2) maximize environmental benefits per dollar 
        expended; or
            ``(3) are provided in watersheds, regions, or 
        conservation priority areas in which State or local 
        governments have provided, or will provide, financial 
        or technical assistance to producers for the same 
        conservation or environmental purposes.

``SEC. 1240D. DUTIES OF PRODUCERS.

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

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

    ``(a) In General.--To be eligible to enter into a contract 
under the environmental quality incentives program, an owner or 
producer of a livestock or agricultural operation must submit 
to the Secretary for approval a plan of operations that 
incorporates such conservation practices, and is based on such 
principles, as the Secretary considers necessary to carry out 
the program, including a description of structural practices 
and land management practices to be implemented and the 
objectives to be met by the plan's implementation.
    ``(b) Avoidance of Duplication.--The Secretary shall, to 
the maximum extent practicable, eliminate duplication of 
planning activities under the environmental quality incentives 
program and comparable conservation programs.

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

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

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``(a) In General.--The total amount of cost-share and 
incentive payments paid to a producer under this chapter may 
not exceed--
            ``(1) $10,000 for any fiscal year; or
            ``(2) $50,000 for any multiyear contract.
    ``(b) Exception to Annual Limit.--The Secretary may exceed 
the limitation on the annual amount of a payment under 
subsection (a)(1) on a case-by-case basis if the Secretary 
determines that a larger payment is--
            ``(1) essential to accomplish the land management 
        practice or structural practice for which the payment 
        is made; and
            ``(2) consistent with the maximization of 
        environmental benefits per dollar expended and the 
        purposes of this chapter specified in section 1240.
    ``(c) Timing of Expenditures.--Expenditures under a 
contract entered into under this chapter during a fiscal year 
may not be made by the Secretary until the subsequent fiscal 
year.

``SEC. 1240H. TEMPORARY ADMINISTRATION OF ENVIRONMENTAL QUALITY 
                    INCENTIVES PROGRAM.

    ``(a) Interim Administration.--
            ``(1) In general.--During the period beginning on 
        the date of enactment of this section and ending on the 
        termination date provided under paragraph (2), to 
        ensure that technical assistance, cost-share payments, 
        and incentive payments continue to be administered in 
        an orderly manner until such time as assistance can be 
        provided through final regulations issued to implement 
        the environmental quality incentives program 
        established under this chapter, the Secretary shall 
        continue to--
                    ``(A) provide technical assistance, cost-
                share payments, and incentive payments under 
                the terms and conditions of the agricultural 
                conservation program, the Great Plains 
                conservation program, the water quality 
                incentives program, and the Colorado River 
                Basin salinity control program, to the extent 
                the terms and conditions of the program are 
                consistent with the environmental quality 
                incentives program; and
                    ``(B) use for those purposes--
                            ``(i) any funds remaining available 
                        for the agricultural conservation 
                        program, the Great Plains conservation 
                        program, the water quality incentives 
                        program, and the Colorado River Basin 
                        salinity control program; and
                            ``(ii) as the Secretary determines 
                        to be necessary, any funds authorized 
                        to be used to carry out the 
                        environmental quality incentives 
                        program.
            ``(2) Termination of authority.--The authority of 
        the Secretary to carry out paragraph (1) shall 
        terminate on the date that is 180 days after the date 
        of enactment of this section.
    ``(b) Permanent Administration.--Effective beginning on the 
termination date provided under subsection (a)(2), the 
Secretary shall provide technical assistance, cost-share 
payments, and incentive payments for structural practices and 
land management practices related to crop and livestock 
production in accordance with final regulations issued to carry 
out the environmental quality incentives program.''.

SEC. 335. CONSERVATION FARM OPTION.

    Subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3830 et seq.) (as amended by section 334) is amended 
by adding at the end the following:

                 ``CHAPTER 5--CONSERVATION FARM OPTION

``SEC. 1240M. CONSERVATION FARM OPTION.

    ``(a) In General.--The Secretary shall establish 
conservation farm option pilot programs for producers of wheat, 
feed grains, cotton, and rice.
    ``(b) Eligible Owners and Producers.--An owner or producer 
with a farm that has contract acreage enrolled in the 
agricultural market transition program established under the 
Agricultural Market Transition Act shall be eligible to 
participate in the conservation farm option offered under a 
pilot program under subsection (a) if the owner or producer 
meets the conditions established under section (e).
    ``(c) Purposes.--The purposes of the conservation farm 
option pilot programs shall include--
            ``(1) conservation of soil, water, and related 
        resources;
            ``(2) water quality protection or improvement;
            ``(3) wetland restoration, protection, and 
        creation;
            ``(4) wildlife habitat development and protection; 
        or
            ``(5) other similar conservation purposes.
    ``(d) Conservation Farm Plan.--
            ``(1) In general.--To be eligible to enter into a 
        conservation farm option contract, an owner or producer 
        must prepare and submit to the Secretary, for approval, 
        a conservation farm plan that shall become a part of 
        the conservation farm option contract.
            ``(2) Requirements.--A conservation farm plan 
        shall--
                    ``(A) describe the resource-conserving crop 
                rotations, and all other conservation 
                practices, to be implemented and maintained on 
                the acreage that is subject to contract during 
                the contract period;
                    ``(B) contain a schedule for the 
                implementation and maintenance of the practices 
                described in the conservation farm plan;
                    ``(C) comply with highly erodible land and 
                wetland conservation requirements of this 
                title; and
                    ``(D) contain such other terms as the 
                Secretary may require.
    ``(e) Contracts.--
            ``(1) In general.--On approval of a conservation 
        farm plan, the Secretary may enter into a contract with 
        the owner or producer that specifies the acres being 
        enrolled and the practices being adopted.
            ``(2) Duration of contract.--The contract shall be 
        for a period of 10 years. The contract may be renewed 
        for a period of not to exceed 5 years on mutual 
        agreement of the Secretary and the owner or producer.
            ``(3) Consideration.--In exchange for payments 
        under this subsection, the owner or producer shall not 
        participate in and shall forgo payments under--
                    ``(A) the conservation reserve program 
                established under subchapter B of chapter 1;
                    ``(B) the wetlands reserve program 
                established under subchapter C of chapter 1; 
                and
                    ``(C) the environmental quality incentives 
                program established under chapter 4.
            ``(4) Owner or producer responsibilities under the 
        agreement.--Under the terms of the contract entered 
        into under this section, an owner or producer shall 
        agree to--
                    ``(A) actively comply with the terms and 
                conditions of the approved conservation farm 
                plan;
                    ``(B) keep such records as the Secretary 
                may reasonably require for purposes of 
                evaluation of the implementation of the 
                conservation farm plan; and
                    ``(C) not engage in any activity that would 
                defeat the purposes of the conservation farm 
                option pilot program.
            ``(5) Payments.--The Secretary shall offer an owner 
        or producer annual payments under the contract that are 
        equivalent to the payments the owner or producer would 
        have received under the conservation reserve program, 
        the wetlands reserve program, and the environmental 
        quality incentives program.
            ``(6) Balance of benefits.--The Secretary shall not 
        permit an owner or producer to terminate a conservation 
        reserve program contract and enter a conservation farm 
        option contract if the Secretary determines that such 
        action will reduce net environmental benefits.
    ``(f) Secretarial Determinations.--
            ``(1) Acreage estimates.--Prior to each year during 
        which the Secretary intends to offer conservation 
        reserve program contracts, the Secretary shall estimate 
        the number of acres that--
                    ``(A) will be retired under the 
                conservation farm option under the terms and 
                conditions the Secretary intends to offer for 
                that program; and
                    ``(B) would be retired under the 
                conservation reserve program if the 
                conservation farm option were not available.
            ``(2) Total land retirement.--The Secretary shall 
        announce a number of acres to be enrolled in the 
        conservation reserve program that will result in a 
        total number of acres retired under the conservation 
        reserve program and the conservation farm option that 
        does not exceed the amount estimated under paragraph 
        (1)(B) for the current or future years.
            ``(3) Limitation.--The Secretary shall not enroll 
        additional conservation reserve program contracts to 
        offset the land retired under the conservation farm 
        option.
    ``(g) Commodity Credit Corporation.--The Secretary shall 
use the funds, authorities, and facilities of the Commodity 
Credit Corporation to carry out this subsection.
    ``(h) Funding.--Of the funds of the Commodity Credit 
Corporation, the Corporation shall make available to carry out 
this section--
            ``(1) $7,500,000 for fiscal year 1997;
            ``(2) $15,000,000 for fiscal year 1998;
            ``(3) $25,000,000 for fiscal year 1999;
            ``(4) $37,500,000 for fiscal year 2000;
            ``(5) $50,000,000 for fiscal year 2001; and
            ``(6) $62,500,000 for fiscal year 2002.''.

SEC. 336. REPEAL OF SUPERSEDED AUTHORITIES.

    (a) Agricultural Conservation Program.--
            (1) Elimination.--
                    (A) Section 8 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590h) is 
                amended--
                            (i) in subsection (b)--
                                    (I) by striking paragraphs 
                                (1) through (4) and inserting 
                                the following:
            ``(1) Environmental quality incentives program.--
        The Secretary shall provide technical assistance, cost-
        share payments, and incentive payments to operators 
        through the environmental quality incentives program in 
        accordance with chapter 4 of subtitle D of title XII of 
        the Food Security Act of 1985.''; and
                                    (II) by striking paragraphs 
                                (6) through (8); and
                            (ii) by striking subsections (d), 
                        (e), and (f).
                    (B) The first sentence of section 11 of the 
                Soil Conservation and Domestic Allotment Act 
                (16 U.S.C. 590k) is amended by striking 
                ``performance: Provided further,'' and all that 
                follows through ``or other law'' and inserting 
                ``performance''.
                    (C) Section 14 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590n) is 
                amended--
                            (i) in the first sentence, by 
                        striking ``or 8''; and
                            (ii) by striking the second 
                        sentence.
                    (D) Section 15 of the Soil Conservation and 
                Domestic Allotment Act (16 U.S.C. 590o) is 
                amended--
                            (i) in the first undesignated 
                        paragraph--
                                    (I) in the first sentence, 
                                by striking ``sections 7 and 
                                8'' and inserting ``section 
                                7''; and
                                    (II) by striking the third 
                                sentence; and
                            (ii) by striking the second 
                        undesignated paragraph.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of the last proviso of 
                the matter under the heading ``conservation 
                reserve program'' under the heading ``Soil Bank 
                Programs'' of title I of the Department of 
                Agriculture and Farm Credit Administration 
                Appropriation Act, 1959 (72 Stat. 195; 7 U.S.C. 
                1831a), is amended by striking ``Agricultural 
                Conservation Program'' and inserting 
                ``environmental quality incentives program 
                established under chapter 4 of subtitle D of 
                title XII of the Food Security Act of 1985''.
                    (B) Section 4 of the Cooperative Forestry 
                Assistance Act of 1978 (16 U.S.C. 2103) is 
                amended by striking ``as added by the 
                Agriculture and Consumer Protection Act of 
                1973'' each place it appears in subsections (d) 
                and (i) and inserting ``as in effect before the 
                amendment made by section 336(d)(1) of the 
                Federal Agriculture Improvement and Reform Act 
                of 1996''.
                    (C) Section 226(b)(4) of the Department of 
                Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6932(b)(4)) is amended by striking ``and 
                the agricultural conservation program under the 
                Soil Conservation and Domestic Allotment Act 
                (16 U.S.C. 590g et seq.)''.
                    (D) Section 246(b)(8) of the Department of 
                Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6962(b)(8)) is amended by striking ``and 
                the agricultural conservation program under the 
                Soil Conservation and Domestic Allotment Act 
                (16 U.S.C. 590g et seq.)''.
                    (E) Section 1271(c)(3)(C) of the Food, 
                Agriculture, Conservation, and Trade Act of 
                1990 (16 U.S.C. 2106a(c)(3)(C)) is amended by 
                striking ``Agricultural Conservation Program 
                established under section 16(b) of the Soil 
                Conservation and Domestic Allotment Act (16 
                U.S.C. 590h, 590l, or 590p)'' and inserting 
                ``environmental quality incentives program 
                established under chapter 4 of subtitle D of 
                title XII of the Food Security Act of 1985''.
                    (F) Section 304(a) of the Lake Champlain 
                Special Designation Act of 1990 (Public Law 
                101-596; 33 U.S.C. 1270 note) is amended--
                            (i) in the subsection heading, by 
                        striking ``Special Project Area Under 
                        the Agricultural Conservation Program'' 
                        and inserting ``Priority Area Under the 
                        Environmental Quality Incentives 
                        Program''; and
                            (ii) in paragraph (1), by striking 
                        ``special project area under the 
                        Agricultural Conservation Program 
                        established under section 8(b) of the 
                        Soil Conservation and Domestic 
                        Allotment Act (16 U.S.C. 590h(b))'' and 
                        inserting ``priority area under the 
                        environmental quality incentives 
                        program established under chapter 4 of 
                        subtitle D of title XII of the Food 
                        Security Act of 1985''.
                    (G) Section 6 of the Department of 
                Agriculture Organic Act of 1956 (70 Stat. 1033) 
                is amended by striking subsection (b).
    (b) Great Plains Conservation Program.--
            (1) Elimination.--Section 16 of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 
        590p) is repealed.
            (2) Conforming amendments.--
                    (A) The Agricultural Adjustment Act of 1938 
                is amended by striking ``Great Plains program'' 
                each place it appears in sections 344(f)(8) and 
                377 (7 U.S.C. 1344(f)(8) and 1377) and 
                inserting ``environmental quality incentives 
                program established under chapter 4 of subtitle 
                D of title XII of the Food Security Act of 
                1985''.
                    (B) Section 246(b) of the Department of 
                Agriculture Reorganization Act of 1994 (7 
                U.S.C. 6962(b)) is amended by striking 
                paragraph (2).
    (c) Colorado River Basin Salinity Control Program.--
            (1) In general.--Section 202 of the Colorado River 
        Basin Salinity Control Act (43 U.S.C. 1592) is amended 
        by striking subsection (c) and inserting the following:
    ``(c) Salinity Control Measures.--The Secretary of 
Agriculture shall carry out salinity control measures 
(including watershed enhancement and cost-share measures with 
livestock and crop producers) in the Colorado River Basin as 
part of the environmental quality incentives program 
established under chapter 4 of subtitle D of title XII of the 
Food Security Act of 1985.''.
            (2) Funds.--Section 205 of the Colorado River Basin 
        Salinity Control Act (43 U.S.C. 1595) is amended--
                    (A) in subsection (a), by striking 
                ``pursuant to section 202(c)(2)(C)''; and
                    (B) by adding at the end the following:
    ``(f) Funds.--The Secretary may expend funds available in 
the Basin Funds referred to in this section to carry out cost-
share salinity measures in a manner that is consistent with the 
cost allocations required under this section.''.
            (3) Conforming amendment.--Section 246(b)(6) of the 
        Department of Agriculture Reorganization Act of 1994 (7 
        U.S.C. 6962(b)(6)) is amended by striking ``program'' 
        and inserting ``measures''.
    (d) Rural Environmental Conservation Program.--
            (1) Elimination.--Title X of the Agricultural Act 
        of 1970 (16 U.S.C. 1501 et seq.) is repealed.
            (2) Conforming amendments.--Section 246 of the 
        Department of Agriculture Reorganization Act of 1994 (7 
        U.S.C. 6962) (as amended by subsection (b)(2)(B))) is 
        amended--
                    (A) in subsection (b)--
                            (i) by striking paragraph (1); and
                            (ii) by redesignating paragraphs 
                        (3) through (8) as paragraphs (1) 
                        through (6), respectively; and
                    (B) in subsection (c), by striking ``(2), 
                (3), (4), and (6)'' and inserting ``(1), (2), 
                and (4)''.
    (e) Other Conservation Provisions.--Subtitle F of title XII 
of the Food Security Act of 1985 (16 U.S.C. 2005a and 2101 
note) is repealed.
    (f) Resource Conservation.--
            (1) Elimination.--Subtitles A, B, D, E, and F of 
        title XV of the Agriculture and Food Act of 1981 (95 
        Stat. 1328; 16 U.S.C. 3401 et seq.) are repealed.
            (2) Conforming amendment.--Section 739 of the 
        Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations 
        Act, 1992 (7 U.S.C. 2272a), is repealed.
    (g) Technical Amendment.--The first sentence of the matter 
under the heading ``Commodity Credit Corporation'' of Public 
Law 99-263 (100 Stat. 59; 16 U.S.C. 3841 note) is amended by 
striking ``prices: Provided further,'' and all that follows 
through ``Acts.'' and inserting ``prices.''.
    (h) Agricultural Water Quality Incentives Program.--Chapter 
2 of subtitle D of title XII of the Food Security Act of 1985 
(16 U.S.C. 3838 et seq.) is repealed.

          Subtitle E--Conservation Funding and Administration

SEC. 341. CONSERVATION FUNDING AND ADMINISTRATION.

    Subtitle E of title XII of the Food Security Act of 1985 
(16 U.S.C. 3841 et seq.) is amended to read as follows:

                ``Subtitle E--Funding and Administration

``SEC. 1241. FUNDING.

    ``(a) Mandatory Expenses.--For each of fiscal years 1996 
through 2002, the Secretary shall use the funds of the 
Commodity Credit Corporation to carry out the programs 
authorized by--
            ``(1) subchapter B of chapter 1 of subtitle D 
        (including contracts extended by the Secretary pursuant 
        to section 1437 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (Public Law 101-624; 16 U.S.C. 
        3831 note));
            ``(2) subchapter C of chapter 1 of subtitle D; and
            ``(3) chapter 4 of subtitle D.
    ``(b) Environmental Quality Incentives Program.--
            ``(1) In general.--Of the funds of the Commodity 
        Credit Corporation, the Secretary shall make available 
        $130,000,000 for fiscal year 1996, and $200,000,000 for 
        each of fiscal years 1997 through 2002, for providing 
        technical assistance, cost-share payments, incentive 
        payments, and education under the environmental quality 
        incentives program under chapter 4 of subtitle D.
            ``(2) Livestock production.--For each of fiscal 
        years 1996 through 2002, 50 percent of the funding 
        available for technical assistance, cost-share 
        payments, incentive payments, and education under the 
        environmental quality incentives program shall be 
        targeted at practices relating to livestock production.

``SEC. 1242. USE OF OTHER AGENCIES.

    ``(a) Committees.--In carrying out subtitles B, C, and D, 
the Secretary shall use the services of local, county, and 
State committees established under section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)).
    ``(b) Other Agencies.--
            ``(1) Use.--In carrying out subtitles C and D, the 
        Secretary may utilize the services of the Natural 
        Resources Conservation Service and the Forest Service, 
        the Fish and Wildlife Service, State forestry agencies, 
        State fish and game agencies, land-grant colleges, 
        local, county, and State committees established under 
        section 8(b) of the Soil Conservation and Domestic 
        Allotment Act (16 U.S.C. 590h), soil and water 
        conservation districts, and other appropriate agencies.
            ``(2) Consultation.--In carrying out subtitle D at 
        the State and county levels, the Secretary shall 
        consult with, to the extent practicable, the Fish and 
        Wildlife Service, State forestry agencies, State fish 
        and game agencies, land-grant colleges, soil-
        conservation districts, and other appropriate agencies.

``SEC. 1243. ADMINISTRATION.

    ``(a) Plans.--The Secretary shall, to the extent 
practicable, avoid duplication in--
            ``(1) the conservation plans required for--
                    ``(A) highly erodible land conservation 
                under subtitle B;
                    ``(B) the conservation reserve program 
                established under subchapter B of chapter 1 of 
                subtitle D; and
                    ``(C) the wetlands reserve program 
                established under subchapter C of chapter 1 of 
                subtitle D; and
            ``(2) the environmental quality incentives program 
        established under chapter 4 of subtitle D.
    ``(b) Acreage Limitation.--
            ``(1) In general.--The Secretary shall not enroll 
        more than 25 percent of the cropland in any county in 
        the programs administered under the conservation 
        reserve and wetlands reserve programs established under 
        subchapters B and C, respectively, of chapter 1 of 
        subtitle D. Not more than 10 percent of the cropland in 
        a county may be subject to an easement acquired under 
        the subchapters.
            ``(2) Exception.--The Secretary may exceed the 
        limitations in paragraph (1) if the Secretary 
        determines that--
                    ``(A) the action would not adversely affect 
                the local economy of a county; and
                    ``(B) operators in the county are having 
                difficulties complying with conservation plans 
                implemented under section 1212.
            ``(3) Shelterbelts and windbreaks.--The limitations 
        established under this subsection shall not apply to 
        cropland that is subject to an easement under chapter 1 
        or 3 of subtitle D that is used for the establishment 
        of shelterbelts and windbreaks.
    ``(c) Tenant Protection.--Except for a person who is a 
tenant on land that is subject to a conservation reserve 
contract that has been extended by the Secretary, the Secretary 
shall provide adequate safeguards to protect the interests of 
tenants and sharecroppers, including provision for sharing, on 
a fair and equitable basis, in payments under the programs 
established under subtitles B through D.
    ``(d) Provision of Technical Assistance by Other Sources.--
In the preparation and application of a conservation compliance 
plan under subtitle B or similar plan required as a condition 
for assistance from the Department of Agriculture, the 
Secretary shall permit persons to secure technical assistance 
from approved sources, as determined by the Secretary, other 
than the Natural Resources Conservation Service. If the 
Secretary rejects a technical determination made by such a 
source, the basis of the Secretary's determination must be 
supported by documented evidence.
    ``(e) Regulations.--Not later than 90 days after the date 
of enactment of the Federal Agriculture Improvement and Reform 
Act of 1996, the Secretary shall issue regulations to implement 
the conservation reserve and wetlands reserve programs 
established under chapter 1 of subtitle D.''.

SEC. 342. STATE TECHNICAL COMMITTEES.

    (a) Composition.--Section 1261(c) of the Food Security Act 
of 1985 (16 U.S.C. 3861(c))--
            (1) in paragraph (7), by striking ``and'' at the 
        end;
            (2) in paragraph (8), by striking the period at the 
        end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(9) agricultural producers with demonstrable 
        conservation expertise;
            ``(10) nonprofit organizations with demonstrable 
        conservation expertise;
            ``(11) persons knowledgeable about conservation 
        techniques; and
            ``(12) agribusiness.''.
    (b) Responsibilities.--Section 1262 of the Food Security 
Act of 1985 (16 U.S.C. 3862) is amended--
            (1) in subsection (a), by adding at the end the 
        following: ``Each State technical committee shall 
        provide public notice of, and permit public attendance 
        at meetings considering, issues of concern related to 
        carrying out this title.'';
            (2) in subsection (b)(1), by adding at the end the 
        following: ``Each State technical committee shall 
        establish criteria and guidelines for evaluating 
        petitions by agricultural producers regarding new 
        conservation practices and systems not already 
        described in field office technical guides.''; and
            (3) in subsection (c)--
                    (A) in paragraph (7), by striking ``and'' 
                at the end;
                    (B) by redesignating paragraph (8) as 
                paragraph (9); and
                    (C) by inserting after paragraph (7) the 
                following:
            ``(8) establishing criteria and priorities for 
        State initiatives under the environmental quality 
        incentives program under chapter 4 of subtitle D; 
        and''.

SEC. 343. PUBLIC NOTICE AND COMMENT FOR REVISIONS TO CERTAIN STATE 
                    TECHNICAL GUIDES.

    After the date of enactment of this Act, the Secretary of 
Agriculture shall provide for public notice and comment under 
section 553 of title 5, United States Code, with regard to any 
future revisions to those provisions of the Natural Resources 
Conservation Service State technical guides that are used to 
carry out subtitles A, B, and C of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3801 et seq.).

     Subtitle F--National Natural Resources Conservation Foundation

SEC. 351. SHORT TITLE.

    This subtitle may be cited as the ``National Natural 
Resources Conservation Foundation Act''.

SEC. 352. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the Board of 
        Trustees established under section 354.
            (2) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (3) Foundation.--The term ``Foundation'' means the 
        National Natural Resources Conservation Foundation 
        established by section 353(a).
            (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.

SEC. 353. NATIONAL NATURAL RESOURCES CONSERVATION FOUNDATION.

    (a) Establishment.--A National Natural Resources 
Conservation Foundation is established as a charitable and 
nonprofit corporation for charitable, scientific, and 
educational purposes specified in subsection (b). The 
Foundation is not an agency or instrumentality of the United 
States.
    (b) Duties.--The Foundation shall--
            (1) promote innovative solutions to the problems 
        associated with the conservation of natural resources 
        on private lands, particularly with respect to 
        agriculture and soil and water conservation;
            (2) promote voluntary partnerships between 
        government and private interests in the conservation of 
        natural resources;
            (3) conduct research and undertake educational 
        activities, conduct and support demonstration projects, 
        and make grants to State and local agencies and 
        nonprofit organizations;
            (4) provide such other leadership and support as 
        may be necessary to address conservation challenges, 
        such as the prevention of excessive soil erosion, the 
        enhancement of soil and water quality, and the 
        protection of wetlands, wildlife habitat, and 
        strategically important farmland subject to urban 
        conversion and fragmentation;
            (5) encourage, accept, and administer private gifts 
        of money and real and personal property for the benefit 
        of, or in connection with, the conservation and related 
        activities and services of the Department, particularly 
        the Natural Resources Conservation Service;
            (6) undertake, conduct, and encourage educational, 
        technical, and other assistance, and other activities, 
        that support the conservation and related programs 
        administered by the Department (other than activities 
        carried out on National Forest System lands), 
        particularly the Natural Resources Conservation 
        Service, except that the Foundation may not enforce or 
        administer a regulation of the Department; and
            (7) raise private funds to promote the purposes of 
        the Foundation.
    (c) Limitations and Conflicts of Interest.--
            (1) Political activities.--The Foundation shall not 
        participate or intervene in a political campaign on 
        behalf of any candidate for public office.
            (2) Conflicts of interest.--No director, officer, 
        or employee of the Foundation shall participate, 
        directly or indirectly, in the consideration or 
        determination of any question before the Foundation 
        affecting--
                    (A) the financial interests of the 
                director, officer, or employee; or
                    (B) the interests of any corporation, 
                partnership, entity, organization, or other 
                person in which the director, officer, or 
                employee--
                            (i) is an officer, director, or 
                        trustee; or
                            (ii) has any direct or indirect 
                        financial interest.
            (3) Legislation or government action or policy.--No 
        funds of the Foundation may be used in any manner for 
        the purpose of influencing legislation or government 
        action or policy.
            (4) Litigation.--No funds of the Foundation may be 
        used to bring or join an action against the United 
        States.

SEC. 354. COMPOSITION AND OPERATION.

    (a) Composition.--The Foundation shall be administered by a 
Board of Trustees that shall consist of 9 voting members, each 
of whom shall be a United States citizen and not a Federal 
officer. The Board shall be composed of--
            (1) individuals with expertise in agricultural 
        conservation policy matters;
            (2) a representative of private sector 
        organizations with a demonstrable interest in natural 
        resources conservation;
            (3) a representative of statewide conservation 
        organizations;
            (4) a representative of soil and water conservation 
        districts;
            (5) a representative of organizations outside the 
        Federal Government that are dedicated to natural 
        resources conservation education; and
            (6) a farmer or rancher.
    (b) Nongovernmental Employees.--Service as a member of the 
Board shall not constitute employment by, or the holding of, an 
office of the United States for the purposes of any Federal 
law.
    (c) Membership.--
            (1) Initial members.--The Secretary shall appoint 9 
        persons who meet the criteria established under 
        subsection (a) as the initial members of the Board and 
        designate 1 of the members as the initial chairperson 
        for a 2-year term.
            (2) Terms of office.--
                    (A) In general.--A member of the Board 
                shall serve for a term of 3 years, except that 
                the members appointed to the initial Board 
                shall serve, proportionately, for terms of 1, 
                2, and 3 years, as determined by the Secretary.
                    (B) Limitation on terms.--No individual may 
                serve more than 2 consecutive 3-year terms as a 
                member of the Board.
            (3) Subsequent members.--The initial members of the 
        Board shall adopt procedures in the constitution of the 
        Foundation for the nomination and selection of 
        subsequent members of the Board. The procedures shall 
        require that each member, at a minimum, meets the 
        criteria established under subsection (a) and shall 
        provide for the selection of an individual, who is not 
        a Federal officer or a member of the Board.
    (d) Chairperson.--After the appointment of an initial 
chairperson under subsection (c)(1), each succeeding 
chairperson of the Board shall be elected by the members of the 
Board for a 2-year term.
    (e) Vacancies.--A vacancy on the Board shall be filled by 
the Board not later than 60 days after the occurrence of the 
vacancy.
    (f) Compensation.--A member of the Board shall receive no 
compensation from the Foundation for the service of the member 
on the Board.
    (g) Travel Expenses.--While away from the home or regular 
place of business of a member of the Board in the performance 
of services for the Board, the member shall be allowed travel 
expenses paid by the Foundation, including per diem in lieu of 
subsistence, at the same rate as a person employed 
intermittently in the Government service is allowed under 
section 5703 of title 5, United States Code.

SEC. 355. OFFICERS AND EMPLOYEES.

    (a) In General.--The Board may--
            (1) appoint, hire, and discharge the officers and 
        employees of the Foundation, other than appoint the 
        initial Executive Director of the Foundation;
            (2) adopt a constitution and bylaws for the 
        Foundation that are consistent with the purposes of 
        this subtitle; and
            (3) undertake any other activities that may be 
        necessary to carry out this subtitle.
    (b) Officers and Employees.--
            (1) Appointment and hiring.--An officer or employee 
        of the Foundation--
                    (A) shall not, by virtue of the appointment 
                or employment of the officer or employee, be 
                considered a Federal employee for any purpose, 
                including the provisions of title 5, United 
                States Code, governing appointments in the 
                competitive service, except that such an 
                individual may participate in the Federal 
                employee retirement system as if the individual 
                were a Federal employee; and
                    (B) may not be paid by the Foundation a 
                salary in excess of $125,000 per year.
            (2) Executive director.--
                    (A) Initial director.--The Secretary shall 
                appoint an individual to serve as the initial 
                Executive Director of the Foundation who shall 
                serve, at the direction of the Board, as the 
                chief operating officer of the Foundation.
                    (B) Subsequent directors.--The Board shall 
                appoint each subsequent Executive Director of 
                the Foundation who shall serve, at the 
                direction of the Board, as the chief operating 
                officer of the Foundation.
                    (C) Qualifications.--The Executive Director 
                shall be knowledgeable and experienced in 
                matters relating to natural resources 
                conservation.

SEC. 356. CORPORATE POWERS AND OBLIGATIONS OF THE FOUNDATION.

    (a) In General.--The Foundation--
            (1) may conduct business throughout the United 
        States and the territories and possessions of the 
        United States; and
            (2) shall at all times maintain a designated agent 
        who is authorized to accept service of process for the 
        Foundation, so that the serving of notice to, or 
        service of process on, the agent, or mailed to the 
        business address of the agent, shall be considered as 
        service on or notice to the Foundation.
    (b) Seal.--The Foundation shall have an official seal 
selected by the Board that shall be judicially noticed.
    (c) Powers.--To carry out the purposes of the Foundation 
under section 353(b), the Foundation shall have, in addition to 
the powers otherwise provided under this subtitle, the usual 
powers of a corporation, including the power--
            (1) to accept, receive, solicit, hold, administer, 
        and use any gift, devise, or bequest, either absolutely 
        or in trust, of real or personal property or any income 
        from, or other interest in, the gift, devise, or 
        bequest;
            (2) to acquire by purchase or exchange any real or 
        personal property or interest in property, except that 
        funds provided under section 360 may not be used to 
        purchase an interest in real property;
            (3) unless otherwise required by instrument of 
        transfer, to sell, donate, lease, invest, reinvest, 
        retain, or otherwise dispose of any property or income 
        from property;
            (4) to borrow money from private sources and issue 
        bonds, debentures, or other debt instruments, subject 
        to section 359, except that the aggregate amount of the 
        borrowing and debt instruments outstanding at any time 
        may not exceed $1,000,000;
            (5) to sue and be sued, and complain and defend 
        itself, in any court of competent jurisdiction, except 
        that a member of the Board shall not be personally 
        liable for an action in the performance of services for 
        the Board, except for gross negligence;
            (6) to enter into a contract or other agreement 
        with an agency of State or local government, 
        educational institution, or other private organization 
        or person and to make such payments as may be necessary 
        to carry out the functions of the Foundation; and
            (7) to do any and all acts that are necessary to 
        carry out the purposes of the Foundation.
    (d) Interests in Property.--
            (1) Interests in real property.--The Foundation may 
        acquire, hold, and dispose of lands, waters, or other 
        interests in real property by donation, gift, devise, 
        purchase, or exchange. An interest in real property 
        shall be treated, among other things, as including an 
        easement or other right for the preservation, 
        conservation, protection, or enhancement of 
        agricultural, natural, scenic, historic, scientific, 
        educational, inspirational, or recreational resources.
            (2) Gifts.--A gift, devise, or bequest may be 
        accepted by the Foundation even though the gift, 
        devise, or bequest is encumbered, restricted, or 
        subject to a beneficial interest of a private person if 
        any current or future interest in the gift, devise, or 
        bequest is for the benefit of the Foundation.

SEC. 357. ADMINISTRATIVE SERVICES AND SUPPORT.

    For each of fiscal years 1996 through 1998, the Secretary 
may provide, without reimbursement, personnel, facilities, and 
other administrative services of the Department to the 
Foundation.

SEC. 358. AUDITS AND PETITION OF ATTORNEY GENERAL FOR EQUITABLE RELIEF.

    (a) Audits.--
            (1) In general.--The accounts of the Foundation 
        shall be audited in accordance with Public Law 88-504 
        (36 U.S.C. 1101 et seq.), including an audit of 
        lobbying and litigation activities carried out by the 
        Foundation.
            (2) Conforming amendment.--The first section of 
        Public Law 88-504 (36 U.S.C. 1101) is amended by adding 
        at the end the following:
            ``(77) The National Natural Resources Conservation 
        Foundation.''.
    (b) Relief With Respect to Certain Foundation Acts or 
Failure To Act.--The Attorney General may petition in the 
United States District Court for the District of Columbia for 
such equitable relief as may be necessary or appropriate, if 
the Foundation--
            (1) engages in, or threatens to engage in, any act, 
        practice, or policy that is inconsistent with this 
        subtitle; or
            (2) refuses, fails, neglects, or threatens to 
        refuse, fail, or neglect, to discharge the obligations 
        of the Foundation under this subtitle.

SEC. 359. RELEASE FROM LIABILITY.

    (a) In General.--The United States shall not be liable for 
any debt, default, act, or omission of the Foundation. The full 
faith and credit of the United States shall not extend to the 
Foundation.
    (b) Statement.--An obligation issued by the Foundation, and 
a document offering an obligation, shall include a prominent 
statement that the obligation is not directly or indirectly 
guaranteed, in whole or in part, by the United States (or an 
agency or instrumentality of the United States).

SEC. 360. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department 
to be made available to the Foundation $1,000,000 for each of 
fiscal years 1997 through 1999 to initially establish and carry 
out activities of the Foundation.

                          Subtitle G--Forestry

SEC. 371. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 6704) is amended by adding at the 
end the following:
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated for each of fiscal years 1996 
through 2002 such sums as are necessary to carry out this 
section.''.

SEC. 372. COOPERATIVE WORK FOR PROTECTION, MANAGEMENT, AND IMPROVEMENT 
                    OF NATIONAL FOREST SYSTEM.

    The penultimate paragraph of the matter under the heading 
``FOREST SERVICE.'' of the first section of the Act of June 30, 
1914 (38 Stat. 430, chapter 131; 16 U.S.C. 498), is amended--
            (1) by inserting ``, management,'' after ``the 
        protection'';
            (2) by striking ``national forests,'' and inserting 
        ``National Forest System,'';
            (3) by inserting ``management,'' after 
        ``protection,'' both places it appears; and
            (4) by adding at the end the following: ``Payment 
        for work undertaken pursuant to this paragraph may be 
        made from any appropriation of the Forest Service that 
        is available for similar work if a written agreement so 
        provides and reimbursement will be provided by a 
        cooperator in the same fiscal year as the expenditure 
        by the Forest Service. A reimbursement received from a 
        cooperator that covers the proportionate share of the 
        cooperator of the cost of the work shall be deposited 
        to the credit of the appropriation of the Forest 
        Service from which the payment was initially made or, 
        if the appropriation is no longer available, to the 
        credit of an appropriation of the Forest Service that 
        is available for similar work. The Secretary of 
        Agriculture shall establish written rules that 
        establish criteria to be used to determine whether the 
        acceptance of contributions of money under this 
        paragraph would adversely affect the ability of an 
        officer or employee of the Department of Agriculture to 
        carry out a duty or program of the officer or employee 
        in a fair and objective manner or would compromise, or 
        appear to compromise, the integrity of the program, 
        officer, or employee. The Secretary of Agriculture 
        shall establish written rules that protect the 
        interests of the Forest Service in cooperative work 
        agreements.''.

SEC. 373. FORESTRY INCENTIVES PROGRAM.

    Section 4 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103) is amended--
            (1) in subsection (j), by striking ``annually'' and 
        inserting ``for each of fiscal years 1996 through 
        2002''; and
            (2) by striking subsection (k).

SEC. 374. OPTIONAL STATE GRANTS FOR FOREST LEGACY PROGRAM.

    Section 7 of the Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103c) is amended--
            (1) by redesignating subsection (l) as subsection 
        (m); and
            (2) by inserting after subsection (k) the 
        following:
    ``(l) Optional State Grants.--
            ``(1) In general.--The Secretary shall, at the 
        request of a participating State, provide a grant to 
        the State to carry out the Forest Legacy Program in the 
        State.
            ``(2) Administration.--If a State elects to receive 
        a grant under this subsection--
                    ``(A) the Secretary shall use a portion of 
                the funds made available under subsection (m), 
                as determined by the Secretary, to provide a 
                grant to the State; and
                    ``(B) the State shall use the grant to 
                carry out the Forest Legacy Program in the 
                State, including the acquisition by the State 
                of lands and interests in lands.''.

           Subtitle H--Miscellaneous Conservation Provisions

SEC. 381. CONSERVATION ACTIVITIES OF COMMODITY CREDIT CORPORATION.

    (a) In General.--Section 5 of the Commodity Credit 
Corporation Charter Act (15 U.S.C. 714c) is amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the 
        following:
    ``(g) Carry out conservation or environmental programs 
authorized by law.''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall become effective on January 1, 1997.

SEC. 382. FLOODPLAIN EASEMENTS.

    Section 403 of the Agricultural Credit Act of 1978 (16 
U.S.C. 2203) is amended by inserting ``, including the purchase 
of floodplain easements,'' after ``emergency measures''.

SEC. 383. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

    Section 1538 of the Agriculture and Food Act of 1981 (16 
U.S.C. 3461) is amended by striking ``1991 through 1995'' and 
inserting ``1996 through 2002''.

SEC. 384. REPEAL OF REPORT REQUIREMENT.

    Section 1342 of title 44, United States Code, is repealed.

SEC. 385. FLOOD RISK REDUCTION.

    (a) In General.--During fiscal years 1996 through 2002, the 
Secretary of Agriculture (referred to in this section as the 
``Secretary'') may enter into a contract with a producer on a 
farm who has contract acreage under the Agricultural Market 
Transition Act that is frequently flooded.
    (b) Duties of Producers.--Under the terms of the contract, 
with respect to acres that are subject to the contract, the 
producer must agree to--
            (1) the termination of any contract acreage and 
        production flexibility contract under the Agricultural 
        Market Transition Act;
            (2) forgo loans for contract commodities, oilseeds, 
        and extra long staple cotton;
            (3) not apply for crop insurance issued or 
        reinsured by the Secretary;
            (4) comply with applicable highly erodible land and 
        wetlands conservation compliance requirements 
        established under title XII of the Food Security Act of 
        1985 (16 U.S.C. 3801 et seq.);
            (5) not apply for any conservation program payments 
        from the Secretary;
            (6) not apply for disaster program benefits 
        provided by the Secretary; and
            (7) refund the payments, with interest, issued 
        under the flood risk reduction contract to the 
        Secretary, if the producer violates the terms of the 
        contract or if the producer transfers the property to 
        another person who violates the contract.
    (c) Duties of the Secretary.--In return for a contract 
entered into by a producer under this section, the Secretary 
shall pay the producer an amount that is not more than 95 
percent of projected contract payments under the Agricultural 
Market Transition Act that the Secretary estimates the producer 
would otherwise have received during the period beginning at 
the time the contract is entered into under this section and 
ending September 30, 2002.
    (d) Commodity Credit Corporation.--The Secretary shall 
carry out the program authorized by this section (other than 
subsection (e)) through the Commodity Credit Corporation.
    (e) Additional Payments.--
            (1) In general.--Subject to the availability of 
        advanced appropriations, the Secretary may make 
        payments to a producer described in subsection (a), in 
        addition to the payments provided under subsection (c), 
        to offset other estimated Federal Government outlays on 
        frequently flooded land.
            (2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out paragraph (1).
    (f) Limitation on Payments.--Amounts made available for 
production flexibility contracts under section 113 shall be 
reduced by an amount that is equal to the contract payments 
that producers forgo under subsection (b)(1) of this section.

SEC. 386. CONSERVATION OF PRIVATE GRAZING LAND.

    (a) Findings.--Congress finds that--
            (1) private grazing land constitutes nearly \1/2\ 
        of the non-Federal land of the United States and is 
        basic to the environmental, social, and economic 
        stability of rural communities;
            (2) private grazing land contains a complex set of 
        interactions among soil, water, air, plants, and 
        animals;
            (3) grazing land constitutes the single largest 
        watershed cover type in the United States and 
        contributes significantly to the quality and quantity 
        of water available for all of the many uses of the 
        land;
            (4) private grazing land constitutes the most 
        extensive wildlife habitat in the United States;
            (5) private grazing land can provide opportunities 
        for improved nutrient management from land application 
        of animal manures and other by-product nutrient 
        resources;
            (6) owners and managers of private grazing land 
        need to continue to recognize conservation problems 
        when the problems arise and receive sound technical 
        assistance to improve or conserve grazing land 
        resources to meet ecological and economic demands;
            (7) new science and technology must continually be 
        made available in a practical manner so owners and 
        managers of private grazing land may make informed 
        decisions concerning vital grazing land resources;
            (8) agencies of the Department with private grazing 
        land responsibilities are the agencies that have the 
        expertise and experience to provide technical 
        assistance, education, and research to owners and 
        managers of private grazing land for the long-term 
        productivity and ecological health of grazing land;
            (9) although competing demands on private grazing 
        land resources are greater than ever before, assistance 
        to private owners and managers of private grazing land 
        is currently limited and does not meet the demand and 
        basic need for adequately sustaining or enhancing the 
        private grazing land resources; and
            (10) private grazing land can be enhanced to 
        provide many benefits to all citizens of the United 
        States through voluntary cooperation among owners and 
        managers of the land, local conservation districts, and 
        the agencies of the Department responsible for 
        providing assistance to owners and managers of land and 
        to conservation districts.
    (b) Purpose.--It is the purpose of this section to 
authorize the Secretary to provide a coordinated technical, 
educational, and related assistance program to conserve and 
enhance private grazing land resources and provide related 
benefits to all citizens of the United States by--
            (1) establishing a coordinated and cooperative 
        Federal, State, and local grazing conservation program 
        for management of private grazing land;
            (2) strengthening technical, educational, and 
        related assistance programs that provide assistance to 
        owners and managers of private grazing land;
            (3) conserving and improving wildlife habitat on 
        private grazing land;
            (4) conserving and improving fish habitat and 
        aquatic systems through grazing land conservation 
        treatment;
            (5) protecting and improving water quality;
            (6) improving the dependability and consistency of 
        water supplies;
            (7) identifying and managing weed, noxious weed, 
        and brush encroachment problems on private grazing 
        land; and
            (8) integrating conservation planning and 
        management decisions by owners and managers of private 
        grazing land, on a voluntary basis.
    (c) Definitions.--In this section:
            (1) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (2) Private grazing land.--The term ``private 
        grazing land'' means private, State-owned, tribally-
        owned, and any other non-federally owned rangeland, 
        pastureland, grazed forest land, and hay land.
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
    (d) Private Grazing Land Conservation Assistance.--
            (1) Assistance to grazing landowners and others.--
        Subject to the availability of appropriations for this 
        section, the Secretary shall establish a voluntary 
        program to provide technical, educational, and related 
        assistance to owners and managers of private grazing 
        land and public agencies, through local conservation 
        districts, to enable the landowners, managers, and 
        public agencies to voluntarily carry out activities 
        that are consistent with this section, including--
                    (A) maintaining and improving private 
                grazing land and the multiple values and uses 
                that depend on private grazing land;
                    (B) implementing grazing land management 
                technologies;
                    (C) managing resources on private grazing 
                land, including--
                            (i) planning, managing, and 
                        treating private grazing land 
                        resources;
                            (ii) ensuring the long-term 
                        sustainability of private grazing land 
                        resources;
                            (iii) harvesting, processing, and 
                        marketing private grazing land 
                        resources; and
                            (iv) identifying and managing weed, 
                        noxious weed, and brush encroachment 
                        problems;
                    (D) protecting and improving the quality 
                and quantity of water yields from private 
                grazing land;
                    (E) maintaining and improving wildlife and 
                fish habitat on private grazing land;
                    (F) enhancing recreational opportunities on 
                private grazing land;
                    (G) maintaining and improving the aesthetic 
                character of private grazing lands; and
                    (H) identifying the opportunities and 
                encouraging the diversification of private 
                grazing land enterprises.
            (2) Program elements.--
                    (A) Funding.--If funding is provided to 
                carry out this section, it shall be provided 
                through a specific line-item in the annual 
                appropriations for the Natural Resources 
                Conservation Service.
                    (B) Technical assistance and education.--
                Personnel of the Department trained in pasture 
                and range management shall be made available 
                under the program to deliver and coordinate 
                technical assistance and education to owners 
                and managers of private grazing land, at the 
                request of the owners and managers.
    (e) Grazing Technical Assistance Self-Help.--
            (1) Findings.--Congress finds that--
                    (A) there is a severe lack of technical 
                assistance for farmers and ranchers who graze 
                livestock;
                    (B) Federal budgetary constraints preclude 
                any significant expansion, and may force a 
                reduction of, current levels of technical 
                support; and
                    (C) farmers and ranchers have a history of 
                cooperatively working together to address 
                common needs in the promotion of their products 
                and in the drainage of wet areas through 
                drainage districts.
            (2) Establishment of grazing demonstration.--In 
        accordance with paragraph (3), the Secretary may 
        establish 2 grazing management demonstration districts 
        at the recommendation of the grazing lands conservation 
        initiative steering committee.
            (3) Procedure.--
                    (A) Proposal.--Within a reasonable time 
                after the submission of a request of an 
                organization of farmers or ranchers engaged in 
                grazing, the Secretary shall propose that a 
                grazing management district be established.
                    (B) Funding.--The terms and conditions of 
                the funding and operation of the grazing 
                management district shall be proposed by the 
                producers.
                    (C) Approval.--The Secretary shall approve 
                the proposal if the Secretary determines that 
                the proposal--
                            (i) is reasonable;
                            (ii) will promote sound grazing 
                        practices; and
                            (iii) contains provisions similar 
                        to the provisions contained in the beef 
                        promotion and research order issued 
                        under section 4 of the Beef Research 
                        and Information Act (7 U.S.C. 2903) in 
                        effect on the date of enactment of this 
                        Act.
                    (D) Area included.--The area proposed to be 
                included in a grazing management district shall 
                be determined by the Secretary on the basis of 
                a petition by farmers or ranchers.
                    (E) Authorization.--The Secretary may use 
                authority under the Agricultural Adjustment Act 
                (7 U.S.C. 601 et seq.), reenacted with 
                amendments by the Agricultural Marketing 
                Agreement Act of 1937, to operate, on a 
                demonstration basis, a grazing management 
                district.
                    (F) Activities.--The activities of a 
                grazing management district shall be 
                scientifically sound activities, as determined 
                by the Secretary in consultation with a 
                technical advisory committee composed of 
                ranchers, farmers, and technical experts.
    (f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
            (1) $20,000,000 for fiscal year 1996;
            (2) $40,000,000 for fiscal year 1997; and
            (3) $60,000,000 for fiscal year 1998 and each 
        subsequent fiscal year.

SEC. 387. WILDLIFE HABITAT INCENTIVES PROGRAM.

    (a) In General.--The Secretary of Agriculture, in 
consultation with the State technical committees established 
under section 1261 of the Food Security Act of 1985 (16 U.S.C. 
3861), shall establish a program under the Natural Resources 
Conservation Service to be known as the ``Wildlife Habitat 
Incentive Program''.
    (b) Cost-Share Payments.--Under the program, the Secretary 
shall make cost-share payments to landowners to develop upland 
wildlife, wetland wildlife, threatened and endangered species, 
fish, and other types of wildlife habitat approved by the 
Secretary.
    (c) Funding.--To carry out this section, a total of 
$50,000,000 shall be made available for fiscal years 1996 
through 2002 from funds made available to carry out subchapter 
B of chapter 1 of subtitle D of title XII of the Food Security 
Act of 1985 (16 U.S.C. 3831 et seq.).

SEC. 388. FARMLAND PROTECTION PROGRAM.

    (a) In General.--The Secretary of Agriculture shall 
establish and carry out a farmland protection program under 
which the Secretary shall purchase conservation easements or 
other interests in not less than 170,000, nor more than 
340,000, acres of land with prime, unique, or other productive 
soil that is subject to a pending offer from a State or local 
government for the purpose of protecting topsoil by limiting 
nonagricultural uses of the land.
    (b) Conservation Plan.--Any highly erodible cropland for 
which a conservation easement or other interest is purchased 
under this section shall be subject to the requirements of a 
conservation plan that requires, at the option of the 
Secretary, the conversion of the cropland to less intensive 
uses.
    (c) Funding.--The Secretary shall use not more than 
$35,000,000 of the funds of the Commodity Credit Corporation to 
carry out this section.

SEC. 389. INTERIM MORATORIUM ON BYPASS FLOWS.

    (a) Moratorium.--There shall be an 18-month moratorium on 
any Forest Service decision to require bypass flows or any 
other relinquishment of the unimpaired use of a decreed water 
right as a condition of renewal or reissuance of a land use 
authorization permit.
    (b) Limitations.--Subsection (a) shall not affect--
            (1) obligations or authority of the Secretary of 
        Agriculture to protect public health and safety; and
            (2) obligations or authority under the Endangered 
        Species Act of 1973 (16 U.S.C. 1531 et seq.), or 
        applicable State law.
    (c) Rules of Construction.--
            (1) Existing non-federal water rights.--Nothing in 
        this section prevents or inhibits the exercise of the 
        use and operation of existing non-Federal water rights 
        on or above the National Forest land that require land 
        use authorization permits from the Forest Service to 
        access water supply facilities.
            (2) Renewal or reissuance of expiring land use 
        authorization for decreed water rights.--Nothing in 
        this section prevents or inhibits the renewal or 
        reissuance of expiring land use authorizations for 
        decreed water rights. The Forest Service may extend, as 
        needed, any expiring land use authorization for such 
        time as is necessary to incorporate the results of the 
        study authorized by subsection (d).
    (d) Study of Water Rights Across Federal Lands.--
            (1) Establishment.--Not later than 60 days after 
        the date of enactment of this Act, there shall be 
        established a Water Rights Task Force to study the 
        subjects described in paragraph (3).
            (2) Membership.--The Task Force shall be composed 
        of 7 members appointed as follows:
                    (A) 1 member shall be appointed by the 
                Secretary of Agriculture.
                    (B) 2 members shall be appointed by the 
                Speaker of the House of Representatives and 1 
                member shall be appointed by the Minority 
                Leader of the House of Representatives.
                    (C) 2 members shall be appointed by the 
                Majority Leader of the Senate and 1 member 
                shall be appointed by the Minority Leader of 
                the Senate.
            (3) Subjects to be studied.--The Task Force shall 
        study and make recommendations on--
                    (A) whether Federal water rights should be 
                acquired for environmental protection on 
                National Forest land;
                    (B) measures necessary to protect the free 
                exercise of non-Federal water rights requiring 
                easements and permits from the Forest Service;
                    (C) the protection of minimum instream 
                flows for environmental and watershed 
                management purposes on National Forest land 
                through purchases or exchanges from willing 
                sellers in accordance with State law;
                    (D) the effects of any of the 
                recommendations made under this paragraph on 
                existing State laws, regulations, and customs 
                of water usage; and
                    (E) measures that would be useful in 
                avoiding or resolving conflicts between the 
                Forest Service's responsibilities for natural 
                resource and environmental protection, the 
                public interest, and the property rights and 
                interests of water holders with special use 
                permits for water facilities, including the 
                study of the Federal acquisition of water 
                rights, dispute resolution, mitigation, and 
                compensation.
            (4) Final report.--As soon as practicable, but not 
        later than 1 year, after the date of enactment of this 
        Act, the Task Force shall provide the final report of 
        the Task Force to--
                    (A) the Secretary of Agriculture;
                    (B) the Speaker of the House of 
                Representatives;
                    (C) the President pro tempore of the 
                Senate;
                    (D) the Chairman of the Committee on 
                Agriculture of the House of Representatives;
                    (E) the Chairman of the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate;
                    (F) the Chairman of the Committee on 
                Resources of the House of Representatives; and
                    (G) the Chairman of the Committee on Energy 
                and Natural Resources of the Senate.
            (5) Authorization of funds.--The Secretary of 
        Agriculture shall use funds made available for salaries 
        and administrative expenses of the Department of 
        Agriculture to carry out this subsection.

SEC. 390. EVERGLADES ECOSYSTEM RESTORATION.

    (a) In General.--On July 1, 1996, out of any funds in the 
Treasury not otherwise appropriated, the Secretary of the 
Treasury shall provide $200,000,000 to the Secretary of the 
Interior to carry out this section.
    (b) Entitlement.--The Secretary of the Interior (referred 
to in this section as the ``Secretary'')--
            (1) shall be entitled to receive the funds made 
        available under subsection (a);
            (2) shall accept the funds; and
            (3) shall use the funds to--
                    (A) conduct restoration activities in the 
                Everglades ecosystem in South Florida, which 
                shall include the acquisition of real property 
                and interests in real property located within 
                the Everglades ecosystem; and
                    (B) fund resource protection and resource 
                maintenance activities in the Everglades 
                ecosystem.
    (c) Savings Provision.--Nothing in this subsection 
precludes the Secretary from transferring funds to the Army 
Corps of Engineers, the State of Florida, or the South Florida 
Water Management District to carry out subsection (b)(3).
    (d) Deadline.--The Secretary shall use the funds made 
available under subsection (a) for restoration activities 
referred to in subsection (b)(3) not later than December 31, 
1999.
    (e) Report to Congress.--For each of calendar years 1996 
through 1999, the Secretary shall submit an annual report to 
Congress describing all activities carried out under subsection 
(b)(3).
    (f) Separate and Additional Everglades Restoration 
Account.--
            (1) Establishment.--There is established in the 
        Treasury a special account (to be known as the 
        ``Everglades Restoration Account''), which shall 
        consist of such funds as may be deposited in the 
        account under paragraph (2). The account shall be 
        separate, and in addition to, funds deposited in the 
        Treasury under subsection (a).
            (2) Source of funds for account.--
                    (A) Proceeds from surplus property.--
                            (i) In general.--Subject to 
                        subparagraph (B), the Administrator 
                        shall deposit in the special account 
                        all funds received by the 
                        Administrator, on or after the date of 
                        enactment of this Act, from the 
                        disposal pursuant to the Federal 
                        Property and Administrative Services 
                        Act of 1949 (40 U.S.C. 471 et seq.) of 
                        surplus real property located in the 
                        State of Florida.
                            (ii) Availability and disposition 
                        of federal land.--
                                    (I) Identification.--Any 
                                Federal real property located 
                                in the State of Florida 
                                (excluding lands under the 
                                administrative jurisdiction of 
                                the Secretary that are set 
                                aside for conservation 
                                purposes) shall be identified 
                                for disposal or exchange under 
                                this subsection and shall be 
                                presumed available for purposes 
                                of this subsection unless the 
                                head of the agency controlling 
                                the property determines that 
                                there is a compelling program 
                                need for any property 
                                identified by the Secretary.
                                    (II) Availability.--
                                Property identified by the 
                                Secretary for which there is no 
                                demonstrated compelling program 
                                need shall, not later than 90 
                                days after a request by the 
                                Secretary, be reported to the 
                                Administrator and shall be made 
                                available to the Administrator 
                                who shall consider the property 
                                to be surplus property for 
                                purposes of the Federal 
                                Property and Administrative 
                                Services Act of 1949 (40 U.S.C 
                                471 et. seq.).
                                    (III) Prioritization of 
                                disposition.--The Administrator 
                                may prioritize the disposition 
                                of property made available 
                                under this subparagraph to 
                                permit the property to be sold 
                                as quickly as practicable in a 
                                manner that is consistent with 
                                the best interests of the 
                                Federal Government.
                    (B) Limit on total amount of deposits.--The 
                total amount of funds deposited in the special 
                account under subparagraph (A) shall not exceed 
                $100,000,000.
                    (C) Effect on closure of military 
                installations.--Nothing in this section alters 
                the disposition of any proceeds arising from 
                the disposal of real property pursuant to a 
                base closure law.
            (3) Use of special account.--Funds in the special 
        account shall be available to the Secretary until 
        expended under this paragraph. The Secretary shall use 
        funds in the special account to assist in the 
        restoration of the Everglades ecosystem in South 
        Florida through--
                    (A) subject to paragraph (4), the 
                acquisition of real property and interests in 
                real property located within the Everglades 
                ecosystem; and
                    (B) the funding of resource protection and 
                resource maintenance activities in the 
                Everglades ecosystem.
            (4) State contribution.--The Secretary may not 
        expend any funds from the special account to acquire a 
        parcel of real property, or an interest in a parcel of 
        real property, under paragraph (3)(A) unless the 
        Secretary obtains, or has previously obtained, a 
        contribution from the State of Florida in an amount 
        equal to not less than 50 percent of the appraised 
        value of the parcel or interest to be acquired, as 
        determined by the Secretary.
            (5) Definitions.--In this subsection:
                    (A) Administrator.--The term 
                ``Administrator'' means the Administrator of 
                General Services.
                    (B) Base closure law.--The term ``base 
                closure law'' means each of the following:
                            (i) The Defense Base Closure and 
                        Realignment Act of 1990 (part A of 
                        title XXIX of Public Law 101-510; 10 
                        U.S.C. 2687 note).
                            (ii) Title II of the Defense 
                        Authorization Amendments and Base 
                        Closure and Realignment Act (Public Law 
                        100-526; 10 U.S.C. 2687 note).
                            (iii) Section 2687 of title 10, 
                        United States Code.
                            (iv) Any other similar law enacted 
                        after the date of enactment of this 
                        Act.
                    (C) Everglades ecosystem.--The term 
                ``Everglades ecosystem'' means the Florida 
                Everglades Restoration area that extends from 
                the Kissimmee River basin to Florida Bay.
                    (D) Excess property.--The term ``excess 
                property'' has the meaning provided in section 
                3 of the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 472).
                    (E) Executive agency.--The term ``executive 
                agency'' has the meaning provided in section 3 
                of the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 472).
                    (F) Special account.--The term ``special 
                account'' means the Everglades Restoration 
                Account established under paragraph (1).
                    (G) Surplus property.--The term ``surplus 
                property'' has the meaning provided in section 
                3 of the Federal Property and Administrative 
                Services Act of 1949 (40 U.S.C. 472).
    (g) Report To Determine the Feasibility of Additional Land 
Acquisition and Restoration Activities.--
            (1) In general.--The Secretary shall conduct an 
        investigation to determine what, if any, unreserved and 
        unappropriated Federal lands (or mineral interests in 
        any such lands) under the administrative jurisdiction 
        of the Secretary are suitable for disposal or exchange 
        for the purpose of conducting restoration activities in 
        the Everglades region.
            (2) Conservation lands.--No lands under the 
        administrative jurisdiction of the Secretary that are 
        set aside for conservation purposes shall be identified 
        for disposal or exchange under this subsection.
            (3) Florida.--In carrying out this subsection, the 
        Secretary shall, to the maximum extent practicable, 
        determine which lands and mineral interests located 
        within the State of Florida are suitable for disposal 
        or exchange before making the determination for 
        eligible lands or interests in other States.
            (4) Public access.--In carrying out this 
        subsection, the Secretary shall consider that in 
        disposing of lands, the Secretary shall retain such 
        interest in the lands as may be necessary to ensure 
        that the general public is not precluded from 
        reasonable access to the lands for purposes of fishing, 
        hunting, or other recreational uses.
            (5) Report.--Not later than 1 year after the date 
        of enactment of this Act, the Secretary shall submit a 
        report to the Committee on Resources of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate describing the results of the 
        investigation conducted under this subsection. The 
        report shall describe the specific parcels identified 
        under this subsection, establish the priorities for 
        disposal or exchange among the parcels, and estimate 
        the values of the parcels.

SEC. 391. AGRICULTURAL AIR QUALITY RESEARCH OVERSIGHT.

    (a) Findings.--Congress finds that--
            (1) various studies have alleged that agriculture 
        is a source of PM-10 emissions;
            (2) many of these studies have often been based on 
        erroneous data;
            (3) Federal research activities are currently being 
        conducted by the Department of Agriculture to determine 
        the true extent to which agricultural activities 
        contribute to air pollution and to determine cost-
        effective ways in which the agricultural industry can 
        reduce any pollution that exists; and
            (4) any Federal policy recommendations that may be 
        issued by any Federal agency to address air pollution 
        problems related to agriculture or any other industrial 
        activity should be based on sound scientific findings 
        that are subject to adequate peer review and should 
        take into account economic feasibility.
    (b) Purpose.--The purpose of this section is to encourage 
the Secretary of Agriculture to continue to strengthen vital 
research efforts related to agricultural air quality.
    (c) Oversight Coordination.--
            (1) Intergovernmental cooperation.--The Secretary 
        shall, to the maximum extent practicable with respect 
        to the Department of Agriculture and other Federal 
        departments and agencies, ensure intergovernmental 
        cooperation in research activities related to 
        agricultural air quality and avoid duplication of the 
        activities.
            (2) Correct data.--The Secretary shall, to the 
        maximum extent practicable, ensure that the results of 
        any research related to agricultural air quality 
        conducted by Federal agencies not report erroneous data 
        with respect to agricultural air quality.
    (d) Task Force.--
            (1) Establishment.--The Chief of the National 
        Resources Conservation Service shall establish a task 
        force to address agricultural air quality issues.
            (2) Composition.--The task force shall be comprised 
        of employees of the Department of Agriculture, industry 
        representatives, and other experts in the fields of 
        agriculture and air quality.
            (3) Duties.--The task force shall advise the 
        Secretary with respect to the role of the Secretary for 
        providing oversight and coordination related to 
        agricultural air quality.

                     TITLE IV--NUTRITION ASSISTANCE

SEC. 401. FOOD STAMP PROGRAM.

    (a) Disqualification of a Store or Concern.--Section 
12(b)(3)(B) of the Food Stamp Act of 1977 (7 U.S.C. 
2021(b)(3)(B)) is amended--
            (1) by striking the second parenthetical; and
            (2) by striking ``; or'' and inserting the 
        following: ``, including evidence that--
                            ``(i) the ownership of the store or 
                        food concern was not aware of, did not 
                        approve of, did not benefit from, and 
                        was not involved in the conduct of the 
                        violation; and
                            ``(ii)(I) the management of the 
                        store or food concern was not aware of, 
                        did not approve of, did not benefit 
                        from, and was not involved in the 
                        conduct of the violation; or
                            ``(II) the management was aware of, 
                        approved of, benefited from, or was 
                        involved in the conduct of no more than 
                        1 previous violation by the store or 
                        food concern; or''.
    (b) Employment and Training.--Section 16(h)(1) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(h)(1)) is amended by striking 
``1995'' each place it appears and inserting ``2002''.
    (c) Authorization of Pilot Projects.--The last sentence of 
section 17(b)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(b)(1)(A)) is amended by striking ``1995'' and inserting 
``2002''.
    (d) Outreach Demonstration Projects.--The first sentence of 
section 17(j)(1)(A) of the Food Stamp Act of 1977 (7 U.S.C. 
2026(j)(1)(A)) is amended by striking ``1995'' and inserting 
``2002''.
    (e) Authorization for Appropriations.--The first sentence 
of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2027(a)(1)) is amended by striking ``1995'' and inserting 
``1997''.
    (f) Reauthorization of Puerto Rico Nutrition Assistance 
Program.--The first sentence of section 19(a)(1)(A) of the Food 
Stamp Act of 1977 (7 U.S.C. 2028(a)(1)(A)) is amended by 
striking ``$974,000,000'' and all that follows through ``fiscal 
year 1995'' and inserting ``$1,143,000,000 for fiscal year 
1996, $1,174,000,000 for fiscal year 1997, $1,204,000,000 for 
fiscal year 1998, $1,236,000,000 for fiscal year 1999, 
$1,268,000,000 for fiscal year 2000, $1,301,000,000 for fiscal 
year 2001, and $1,335,000,000 for fiscal year 2002''.
    (g) American Samoa.--The Food Stamp Act of 1977 (7 U.S.C. 
2011 et seq.) is amended by adding at the end the following:

``SEC. 24. TERRITORY OF AMERICAN SAMOA.

    ``Effective October 1, 1995, from amounts made available to 
carry out this Act, the Secretary shall pay to the Territory of 
American Samoa not more than $5,300,000 for each of fiscal 
years 1996 through 2002 to finance 100 percent of the 
expenditures for the fiscal year for a nutrition assistance 
program extended under section 601(c) of Public Law 96-597 (48 
U.S.C. 1469d(c)).''.
    (h) Assistance for Community Food Projects.--The Food Stamp 
Act of 1977 (7 U.S.C. 2011 et seq.) (as amended by subsection 
(g)) is amended by adding at the end the following:

``SEC. 25. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    ``(a) Definition of Community Food Projects.--In this 
section, the term `community food project' means a community-
based project that requires a 1-time infusion of Federal 
assistance to become self-sustaining and that is designed to--
            ``(1) meet the food needs of low-income people;
            ``(2) increase the self-reliance of communities in 
        providing for their own food needs; and
            ``(3) promote comprehensive responses to local 
        food, farm, and nutrition issues.
    ``(b) Authority To Provide Assistance.--
            ``(1) In general.--From amounts made available to 
        carry out this Act, the Secretary may make grants to 
        assist eligible private nonprofit entities to establish 
        and carry out community food projects.
            ``(2) Limitation on grants.--The total amount of 
        funds provided as grants under this section may not 
        exceed--
                    ``(A) $1,000,000 for fiscal year 1996; and
                    ``(B) $2,500,000 for each of fiscal years 
                1997 through 2002.
    ``(c) Eligible Entities.--To be eligible for a grant under 
subsection (b), a private nonprofit entity must--
            ``(1) have experience in the area of--
                    ``(A) community food work, particularly 
                concerning small and medium-sized farms, 
                including the provision of food to people in 
                low-income communities and the development of 
                new markets in low-income communities for 
                agricultural producers; or
                    ``(B) job training and business development 
                activities for food-related activities in low-
                income communities;
            ``(2) demonstrate competency to implement a 
        project, provide fiscal accountability, collect data, 
        and prepare reports and other necessary documentation; 
        and
            ``(3) demonstrate a willingness to share 
        information with researchers, practitioners, and other 
        interested parties.
    ``(d) Preference for Certain Projects.--In selecting 
community food projects to receive assistance under subsection 
(b), the Secretary shall give a preference to projects designed 
to--
            ``(1) develop linkages between 2 or more sectors of 
        the food system;
            ``(2) support the development of entrepreneurial 
        projects;
            ``(3) develop innovative linkages between the for-
        profit and nonprofit food sectors; or
            ``(4) encourage long-term planning activities and 
        multi-system, interagency approaches.
    ``(e) Matching Funds Requirements.--
            ``(1) Requirements.--The Federal share of the cost 
        of establishing or carrying out a community food 
        project that receives assistance under subsection (b) 
        may not exceed 50 percent of the cost of the project 
        during the term of the grant.
            ``(2) Calculation.--In providing for the non-
        Federal share of the cost of carrying out a community 
        food project, the entity receiving the grant shall 
        provide for the share through a payment in cash or in 
        kind, fairly evaluated, including facilities, 
        equipment, or services.
            ``(3) Sources.--An entity may provide for the non-
        Federal share through State government, local 
        government, or private sources.
    ``(f) Term of Grant.--
            ``(1) Single grant.--A community food project may 
        be supported by only a single grant under subsection 
        (b).
            ``(2) Term.--The term of a grant under subsection 
        (b) may not exceed 3 years.
    ``(g) Technical Assistance and Related Information.--
            ``(1) Technical assistance.--In carrying out this 
        section, the Secretary may provide technical assistance 
        regarding community food projects, processes, and 
        development to an entity seeking the assistance.
            ``(2) Sharing Information.--
                    ``(A) In general.--The Secretary may 
                provide for the sharing of information 
                concerning community food projects and issues 
                among and between government, private for-
                profit and nonprofit groups, and the public 
                through publications, conferences, and other 
                appropriate forums.
                    ``(B) Other interested parties.--The 
                Secretary may share information concerning 
                community food projects with researchers, 
                practitioners, and other interested parties.
    ``(h) Evaluation.--
            ``(1) In general.--The Secretary shall provide for 
        the evaluation of the success of community food 
        projects supported using funds under this section.
            ``(2) Report.--Not later than January 30, 2002, the 
        Secretary shall submit a report to Congress regarding 
        the results of the evaluation.''.

SEC. 402. COMMODITY DISTRIBUTION PROGRAM; COMMODITY SUPPLEMENTAL FOOD 
                    PROGRAM.

    (a) Reauthorization.--The first sentence of section 4(a) of 
the Agriculture and Consumer Protection Act of 1973 (Public Law 
93-86; 7 U.S.C. 612c note) is amended by striking ``1995'' and 
inserting ``2002''.
    (b) Funding.--Section 5 of the Agriculture and Consumer 
Protection Act of 1973 (Public Law 93-86; 7 U.S.C. 612c note) 
is amended--
            (1) in subsection (a)(2), by striking ``1995'' and 
        inserting ``2002'';
            (2) in subsection (d)(2), by striking ``1995'' and 
        inserting ``2002''; and
            (3) by adding at the end the following:
    ``(l) Carried-Over Funds.--Not more than 20 percent of any 
commodity supplemental food program food funds carried over 
under this section shall be available for administrative 
expenses of the program.''.

SEC. 403. EMERGENCY FOOD ASSISTANCE PROGRAM.

    (a) Reauthorization.--The first sentence of section 
204(a)(1) of the Emergency Food Assistance Act of 1983 (Public 
Law 98-8; 7 U.S.C. 612c note) is amended by striking ``1995'' 
and inserting ``2002''.
    (b) Program Termination.--Section 212 of the Emergency Food 
Assistance Act of 1983 (Public Law 98-8; 7 U.S.C. 612c note) is 
amended by striking ``1995'' and inserting ``2002''.
    (c) Required Purchases of Commodities.--Section 214 of the 
Emergency Food Assistance Act of 1983 (Public Law 98-8; 7 
U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by 
        striking ``1995'' and inserting ``2002''; and
            (2) in subsection (e), by striking ``1995'' each 
        place it appears and inserting ``2002''.

SEC. 404. SOUP KITCHEN AND FOOD BANK PROGRAM.

    Section 110 of the Hunger Prevention Act of 1988 (Public 
Law 100-435; 7 U.S.C. 612c note) is amended--
            (1) in the first sentence of subsection (a), by 
        striking ``1995'' and inserting ``2002''; and
            (2) in subsection (c)(2)--
                    (A) in the paragraph heading, by striking 
                ``1992 through 1995'' and inserting 
                ``Subsequent''; and
                    (B) by striking ``1995'' each place it 
                appears and inserting ``2002''.

SEC. 405. NATIONAL COMMODITY PROCESSING.

    The first sentence of section 1114(a)(2)(A) of the 
Agriculture and Food Act of 1981 (7 U.S.C. 1431e(2)(A)) is 
amended by striking ``1995'' and inserting ``2002''.

                    TITLE V--AGRICULTURAL PROMOTION

             Subtitle A--Commodity Promotion and Evaluation

SEC. 501. COMMODITY PROMOTION AND EVALUATION.

    (a) Commodity Promotion Law Defined.--In this section, the 
term ``commodity promotion law'' means a Federal law that 
provides for the establishment and operation of a promotion 
program regarding an agricultural commodity that includes a 
combination of promotion, research, industry information, or 
consumer information activities, is funded by mandatory 
assessments on producers or processors, and is designed to 
maintain or expand markets and uses for the commodity (as 
determined by the Secretary). The term includes--
            (1) the marketing promotion provisions under 
        section 8c(6)(I) of the Agricultural Adjustment Act (7 
        U.S.C. 608c(6)(I)), reenacted with amendments by the 
        Agricultural Marketing Agreement Act of 1937;
            (2) Public Law 89-502 (7 U.S.C. 2101 et seq.);
            (3) title III of Public Law 91-670 (7 U.S.C. 2611 
        et seq.);
            (4) Public Law 93-428 (7 U.S.C. 2701 et seq.);
            (5) Public Law 94-294 (7 U.S.C. 2901 et seq.);
            (6) subtitle B of title I of Public Law 98-180 (7 
        U.S.C. 4501 et seq.);
            (7) Public Law 98-590 (7 U.S.C. 4601 et seq.);
            (8) subtitle B of title XVI of Public Law 99-198 (7 
        U.S.C. 4801 et seq.);
            (9) subtitle C of title XVI of Public Law 99-198 (7 
        U.S.C. 4901 et seq.);
            (10) subtitle B of title XIX of Public Law 101-624 
        (7 U.S.C. 6101 et seq.);
            (11) subtitle E of title XIX of Public Law 101-624 
        (7 U.S.C. 6301 et seq.);
            (12) subtitle H of title XIX of Public Law 101-624 
        (7 U.S.C. 6401 et seq.);
            (13) Public Law 103-190 (7 U.S.C. 6801 et seq.);
            (14) Public Law 103-407 (7 U.S.C. 7101 et seq.);
            (15) subtitle B;
            (16) subtitle C;
            (17) subtitle D; or
            (18) subtitle E.
    (b) Findings.--Congress finds the following:
            (1) It is in the national public interest and vital 
        to the welfare of the agricultural economy of the 
        United States to maintain and expand existing markets 
        and develop new markets and uses for agricultural 
        commodities through industry-funded, Government-
        supervised, generic commodity promotion programs 
        established under commodity promotion laws.
            (2) These generic commodity promotion programs, 
        funded by the agricultural producers or processors who 
        most directly reap the benefits of the programs and 
        supervised by the Secretary of Agriculture, provide a 
        unique opportunity for producers and processors to 
        inform consumers about their products.
            (3) The central congressional purpose underlying 
        each commodity promotion law has always been to 
        maintain and expand markets for the agricultural 
        commodity covered by the law, rather than to maintain 
        or expand the share of those markets held by any 
        individual producer or processor.
            (4) The commodity promotion laws were neither 
        designed nor intended to prohibit or restrict, and the 
        promotion programs established and funded pursuant to 
        these laws do not prohibit or restrict, individual 
        advertising or promotion of the covered commodities by 
        any producer, processor, or group of producers or 
        processors.
            (5) It has never been the intent of Congress for 
        the generic commodity promotion programs established 
        and funded by the commodity promotion laws to replace 
        the individual advertising and promotion efforts of 
        producers or processors.
            (6) An individual producer's or processor's own 
        advertising initiatives are typically designed to 
        increase the share of the market held by that producer 
        or processor rather than to increase or expand the 
        overall size of the market.
            (7) In contrast, a generic commodity promotion 
        program is intended and designed to maintain or 
        increase the overall demand for the agricultural 
        commodity covered by the program and increase the size 
        of the market for that commodity, often by utilizing 
        promotion methods and techniques that individual 
        producers and processors typically are unable, or have 
        no incentive, to employ.
            (8) The commodity promotion laws establish 
        promotion programs that operate as ``self-help'' 
        mechanisms for producers and processors to fund generic 
        promotions for covered commodities which, under the 
        required supervision and oversight of the Secretary of 
        Agriculture--
                    (A) further specific national governmental 
                goals, as established by Congress; and
                    (B) produce nonideological and commercial 
                communication the purpose of which is to 
                further the governmental policy and objective 
                of maintaining and expanding the markets for 
                the covered commodities.
            (9) While some commodity promotion laws grant a 
        producer or processor the option of crediting 
        individual advertising conducted by the producer or 
        processor for all or a portion of the producer's or 
        processor's marketing promotion assessments, all 
        promotion programs established under the commodity 
        promotion laws, both those programs that permit credit 
        for individual advertising and those programs that do 
        not contain such provisions, are very narrowly tailored 
        to fulfill the congressional purposes of the commodity 
        promotion laws without impairing or infringing the 
        legal or constitutional rights of any individual 
        producer or processor.
            (10) These generic commodity promotion programs are 
        of particular benefit to small producers who often lack 
        the resources or market power to advertise on their own 
        and who are otherwise often unable to benefit from the 
        economies of scale available in promotion and 
        advertising.
            (11) Periodic independent evaluation of the 
        effectiveness of these generic commodity promotion 
        programs will assist Congress and the Secretary of 
        Agriculture in ensuring that the objectives of the 
        programs are met.
    (c) Independent Evaluation of Promotion Program 
Effectiveness.--Except as otherwise provided by law, each 
commodity board established under the supervision and oversight 
of the Secretary of Agriculture pursuant to a commodity 
promotion law shall, not less often than every 5 years, 
authorize and fund, from funds otherwise available to the 
board, an independent evaluation of the effectiveness of the 
generic commodity promotion programs and other programs 
conducted by the board pursuant to a commodity promotion law. 
The board shall submit to the Secretary, and make available to 
the public, the results of each periodic independent evaluation 
conducted under this subsection.
    (d) Administrative Costs.--The Secretary shall annually 
provide to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate information on administrative 
expenses on programs established under commodity promotion 
laws.

Subtitle B--Issuance of Orders for Promotion, Research, and Information 
             Activities Regarding Agricultural Commodities

SEC. 511. SHORT TITLE.

    This subtitle may be cited as the ``Commodity Promotion, 
Research, and Information Act of 1996''.

SEC. 512. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) The production of agricultural commodities 
        plays a significant role in the economy of the United 
        States. Thousands of producers in the United States are 
        involved in the production of agricultural commodities, 
        and such commodities are consumed by millions of people 
        throughout the United States and foreign countries.
            (2) Agricultural commodities must be of high 
        quality, readily available, handled properly, and 
        marketed efficiently to ensure that consumers have an 
        adequate supply.
            (3) The maintenance and expansion of existing 
        markets and the development of new markets for 
        agricultural commodities through generic commodity 
        promotion, research, and information programs are vital 
        to the welfare of persons engaged in the production, 
        marketing, and consumption of such commodities, as well 
        as to the general economy of the United States.
            (4) Generic promotion, research, and information 
        activities for agricultural commodities play a unique 
        role in advancing the demand for such commodities, 
        since such activities increase the total market for a 
        product to the benefit of consumers and all producers. 
        These generic activities complement branded advertising 
        initiatives, which are aimed at increasing the market 
        share of individual competitors, and are of particular 
        benefit to small producers who lack the resources or 
        market power to advertise on their own. These generic 
        activities do not impede the branded advertising 
        efforts of individual firms, but instead increase 
        general market demand for an agricultural commodity 
        using methods that individual companies do not have the 
        incentive to employ.
            (5) Generic promotion, research, and information 
        activities for agricultural commodities, paid by the 
        producers and others in the industry who reap the 
        benefits of such activities, provide a unique 
        opportunity for producers to inform consumers about a 
        particular agricultural commodity.
            (6) It is important to ensure that generic 
        promotion, research, and information activities for 
        agricultural commodities be carried out in an effective 
        and coordinated manner designed to strengthen the 
        position of the commodities in the marketplace and to 
        maintain and expand their markets and uses. Independent 
        evaluation of the effectiveness of the generic 
        promotion activities of these programs will assist the 
        Secretary of Agriculture and Congress in ensuring that 
        these objectives are met.
            (7) The cooperative development, financing, and 
        implementation of a coordinated national program of 
        research, promotion, and information regarding 
        agricultural commodities are necessary to maintain and 
        expand existing markets and to develop new markets for 
        these commodities.
            (8) Agricultural commodities move in interstate and 
        foreign commerce, and agricultural commodities and 
        their products that do not move in such channels of 
        commerce directly burden or affect interstate commerce 
        in agricultural commodities and their products.
            (9) Commodity promotion programs have the ability 
        to provide significant conservation benefits to 
        producers and the public.
    (b) Purpose.--The purpose of this subtitle is to authorize 
the establishment, through the exercise by the Secretary of 
Agriculture of the authority provided in this subtitle, of an 
orderly program for developing, financing, and carrying out an 
effective, continuous, and coordinated program of generic 
promotion, research, and information regarding agricultural 
commodities designed to--
            (1) strengthen the position of agricultural 
        commodity industries in the marketplace;
            (2) maintain and expand existing domestic and 
        foreign markets and uses for agricultural commodities;
            (3) develop new markets and uses for agricultural 
        commodities; or
            (4) assist producers in meeting their conservation 
        objectives.
    (c) Rule of Construction.--Nothing in this subtitle 
provides for the control of production or otherwise limits the 
right of any person to produce, handle, or import an 
agricultural commodity.

SEC. 513. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Agricultural commodity.--The term 
        ``agricultural commodity'' means--
                    (A) agricultural, horticultural, 
                viticultural, and dairy products;
                    (B) livestock and the products of 
                livestock;
                    (C) the products of poultry and bee 
                raising;
                    (D) the products of forestry;
                    (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 a board 
        established under an order issued under section 514.
            (3) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member or 
        employee of a board has a direct or indirect financial 
        interest in a person that performs a service for, or 
        enters into a contract with, a board for anything of 
        economic value.
            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) First handler.--The term ``first handler'' 
        means the first person who buys or takes possession of 
        an agricultural commodity from a producer for 
        marketing. If a producer markets the agricultural 
        commodity directly to consumers, the producer shall be 
        considered to be the first handler with respect to the 
        agricultural commodity produced by the producer.
            (6) Importer.--The term ``importer'' means any 
        person who imports an agricultural commodity from 
        outside the United States for sale in the United States 
        as a principal or as an agent, broker, or consignee of 
        any person.
            (7) 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 agricultural commodities on a national or 
                international basis.
            (8) Market.--The term ``market'' means to sell or 
        to otherwise dispose of an agricultural commodity in 
        interstate, foreign, or intrastate commerce.
            (9) Order.--The term ``order'' means an order 
        issued by the Secretary under section 514 that provides 
        for a program of generic promotion, research, and 
        information regarding agricultural commodities designed 
        to--
                    (A) strengthen the position of agricultural 
                commodity industries in the marketplace;
                    (B) maintain and expand existing domestic 
                and foreign markets and uses for agricultural 
                commodities;
                    (C) develop new markets and uses for 
                agricultural commodities; or
                    (D) assist producers in meeting their 
                conservation objectives.
            (10) Person.--The term ``person'' means any 
        individual, group of individuals, partnership, 
        corporation, association, cooperative, or any other 
        legal entity.
            (11) Producer.--The term ``producer'' means any 
        person who is engaged in the production and sale of an 
        agricultural commodity in the United States and who 
        owns, or shares the ownership and risk of loss of, the 
        agricultural commodity.
            (12) Promotion.--The term ``promotion'' means any 
        action taken by a board under an order, including paid 
        advertising, to present a favorable image of an 
        agricultural commodity to the public to improve the 
        competitive position of the agricultural commodity in 
        the marketplace and to stimulate sales of the 
        agricultural commodity.
            (13) 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 
        agricultural commodity.
            (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (15) State.--The term ``State'' means any of the 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, or any territory or possession of the 
        United States.
            (16) Suspend.--The term ``suspend'' means to issue 
        a rule under section 553 of title 5, United States 
        Code, to temporarily prevent the operation of an order 
        during a particular period of time specified in the 
        rule.
            (17) Terminate.--The term ``terminate'' means to 
        issue a rule under section 553 of title 5, United 
        States Code, to cancel permanently the operation of an 
        order beginning on a date certain specified in the 
        rule.
            (18) United states.--The term ``United States'' 
        means collectively the 50 States, the District of 
        Columbia, the Commonwealth of Puerto Rico and the 
        territories and possessions of the United States.

SEC. 514. ISSUANCE OF ORDERS.

    (a) Issuance Authorized.--
            (1) In general.--To effectuate the purpose of this 
        subtitle, the Secretary may issue, and amend from time 
        to time, orders applicable to--
                    (A) the producers of an agricultural 
                commodity;
                    (B) the first handlers of the agricultural 
                commodity and other persons in the marketing 
                chain as appropriate; and
                    (C) the importers of the agricultural 
                commodity, if imports of the agricultural 
                commodity are subject to assessment under 
                section 516(f).
            (2) National scope.--Each order issued under this 
        section shall be national in scope.
    (b) Procedure for Issuance.--
            (1) Development or receipt of proposed order.--A 
        proposed order with respect to an agricultural 
        commodity may be--
                    (A) prepared by the Secretary at any time; 
                or
                    (B) submitted to the Secretary by--
                            (i) an association of producers of 
                        the agricultural commodity; or
                            (ii) any other person that may be 
                        affected by the issuance of an order 
                        with respect to the agricultural 
                        commodity.
            (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 publish the proposed 
        order in the Federal Register and give due notice and 
        opportunity for public comment on the proposed order.
            (3) Existence of other orders.--In deciding whether 
        a proposal for an order is consistent with and will 
        effectuate the purpose of this subtitle, the Secretary 
        may consider the existence of other Federal promotion, 
        research, and information programs or orders issued or 
        developed pursuant to any other law.
            (4) Preparation of final order.--After notice and 
        opportunity for public comment under paragraph (2) 
        regarding a proposed order, the Secretary shall take 
        into consideration the comments received in preparing a 
        final order. The Secretary shall ensure that the final 
        order is in conformity with the terms, conditions, and 
        requirements of this subtitle.
    (c) Issuance and Effective Date.--If the Secretary 
determines that the final order developed with respect to an 
agricultural commodity is consistent with and will effectuate 
the purpose of this subtitle, the Secretary shall issue the 
final order. Except in the case of an order for which an 
initial referendum is conducted under section 518(a), the final 
order shall be issued and become effective not later than 270 
days after the date of publication of the proposed order that 
was the basis for the final order.
    (d) Amendments.--From time to time the Secretary may amend 
any order, consistent with the requirements of section 523.

SEC. 515. REQUIRED TERMS IN ORDERS.

    (a) In General.--Each order shall contain the terms and 
conditions specified in this section.
    (b) Board.--
            (1) Establishment.--Each order shall establish a 
        board to carry out a program of generic promotion, 
        research, and information regarding the agricultural 
        commodity covered by the order and intended to 
        effectuate the purpose of this subtitle.
            (2) Board membership.--
                    (A) Number of members.--Each board shall 
                consist of the number of members considered by 
                the Secretary, in consultation with the 
                agricultural commodity industry involved, to be 
                appropriate to administer the order. In 
                addition to members, the Secretary may also 
                provide for alternates on the board.
                    (B) Appointment.--The Secretary shall 
                appoint the members and any alternates of a 
                board from among producers of the agricultural 
                commodity and first handlers and others in the 
                marketing chain as appropriate. If imports of 
                the agricultural commodity covered by an order 
                are subject to assessment under section 516(f), 
                the Secretary shall also appoint importers as 
                members of the board and as alternates if 
                alternates are included on the board. The 
                Secretary may appoint 1 or more members of the 
                general public to each board.
                    (C) Nominations.--The Secretary may make 
                appointments from nominations made pursuant to 
                the method set forth in the order.
                    (D) Geographical representation.--To ensure 
                fair and equitable representation of the 
                agricultural commodity industry covered by an 
                order, the composition of each board shall 
                reflect the geographical distribution of the 
                production of the agricultural commodity 
                involved in the United States and the quantity 
                or value of the agricultural commodity imported 
                into the United States.
            (3) Reapportionment of board membership.--In 
        accordance with rules issued by the Secretary, at least 
        once in each 5-year period, but not more frequently 
        than once in each 3-year period, each board shall--
                    (A) review the geographical distribution in 
                the United States of the production of the 
                agricultural commodity covered by the order 
                involved and the quantity or value of the 
                agricultural commodity imported into the United 
                States; and
                    (B) if warranted, recommend to the 
                Secretary the reapportionment of the board 
                membership to reflect changes in the 
                geographical distribution of the production of 
                the agricultural commodity and the quantity or 
                value of the imported agricultural commodity.
            (4) Notice.--
                    (A) Vacancies.--Each order shall provide 
                for notice of board vacancies to the 
                agricultural commodity industry involved.
                    (B) Meetings.--Each board shall provide the 
                Secretary with prior notice of meetings of the 
                board to permit the Secretary, or a designated 
                representative of the Secretary, to attend the 
                meetings.
            (5) Term of office.--
                    (A) In general.--The members and any 
                alternates of a board shall each serve for a 
                term of 3 years, except that the members and 
                any alternates initially appointed to a 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 may serve not more than 2 
                consecutive terms.
                    (C) Continuation of term.--Notwithstanding 
                subparagraph (B), each member or alternate 
                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 a board shall 
                be filled in a manner provided for in the 
                order.
            (6) Compensation.--
                    (A) In general.--Members and any alternates 
                of a board shall serve without compensation.
                    (B) Travel expenses.--If approved by a 
                board, members or alternates 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 a Board.--Each order shall specify 
the powers and duties of the board established under the order, 
which shall include the power and duty--
            (1) to administer the order in accordance with its 
        terms and conditions and to collect assessments;
            (2) to develop and recommend to the Secretary for 
        approval such bylaws as may be necessary for the 
        functioning of the board and such rules as may be 
        necessary to administer the order, including activities 
        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 its duties, and to determine the 
        compensation and specify the duties of the persons;
            (5) subject to subsection (e), to develop and carry 
        out generic promotion, research, and information 
        activities relating to the agricultural commodity 
        covered by the order;
            (6) to prepare and submit for the approval of the 
        Secretary, before the beginning of each fiscal year, 
        rates of assessment under section 517 and 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 the agricultural commodity covered by the 
        order;
            (9) to pay the cost of the activities with 
        assessments collected under section 517, earnings from 
        invested assessments, and other funds;
            (10) to keep records that accurately reflect the 
        actions and transactions of the board, to keep and 
        report minutes of each meeting of the board to the 
        Secretary, and 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) to recommend to the Secretary such amendments 
        to the order as the board considers appropriate.
    (d) Prohibited Activities.--A board may not engage in, and 
shall prohibit the employees and agents of the board from 
engaging in--
            (1) any action that would be a conflict of 
        interest;
            (2) using funds collected by the board under the 
        order, any action undertaken 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.--Each 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 the agricultural 
        commodity covered by the order.
            (2) Budgets.--
                    (A) Submission to secretary.--Each order 
                shall require the board established under the 
                order to submit to the Secretary for approval a 
                budget of its anticipated annual expenses and 
                disbursements to be paid to administer the 
                order. The budget shall be submitted before the 
                beginning of a fiscal year and as frequently as 
                may be necessary after the beginning of the 
                fiscal year.
                    (B) Reimbursement of secretary.--Each order 
                shall require that the Secretary be reimbursed 
                for all expenses incurred by the Secretary in 
                the implementation, administration, and 
                supervision of the order, including all 
                referenda costs incurred in connection with the 
                order.
            (3) Incurring expenses.--A 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.--Expenses incurred under 
        paragraph (3) shall be paid by a board using 
        assessments collected under section 517, earnings 
        obtained from assessments, and other income of the 
        board. 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 a 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.--Each 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 the 
                agricultural commodity covered by the order, 
                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 assessments collected under section 517, 
                earnings obtained from assessments, and other 
                income of the board.
            (2) Requirements.--Each contract or agreement shall 
        provide that any person who 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 its 
                transactions 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.--Each order shall require the board 
        established under the order--
                    (A) to maintain such records as the 
                Secretary may require and 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; and
                    (C) to account for the receipt and 
                disbursement of all funds in the possession, or 
                under the control, of the board.
            (2) Audits.--Each order shall require the board 
        established under the order 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.--In accordance with section 
501(c), each order shall require the board established under 
the order to provide for the independent evaluation of all 
generic promotion, research, and information activities 
undertaken under the order.
    (i) Books and Records of Persons Covered by Order.--
            (1) In general.--Each 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 established under 
                the order any information required by the board 
                to carry out its responsibilities 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 an 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 518 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 brought at the direction or on 
                        the request of the Secretary or 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 an order if the 
                        statements do not identify the 
                        information furnished by any person; or
                            (ii) the publication, by direction 
                        of the Secretary, of the name of any 
                        person violating any order and a 
                        statement of the particular provisions 
                        of the order violated by the person.
                    (D) Penalty.--Any person who 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. 516. PERMISSIVE TERMS IN ORDERS.

    (a) Exemptions.--An order issued under this subtitle may 
contain--
            (1) authority for the Secretary to exempt from the 
        order any de minimis quantity of an agricultural 
        commodity otherwise covered by the order; and
            (2) authority for the board established under the 
        order to require satisfactory safeguards against 
        improper use of the exemption.
    (b) Different Payment and Reporting Schedules.--An order 
issued under this subtitle may contain authority for the board 
established under the order to designate different payment and 
reporting schedules to recognize differences in agricultural 
commodity industry marketing practices and procedures used in 
different production and importing areas.
    (c) Activities.--An order issued under this subtitle 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 the agricultural 
commodity covered by the order in domestic and foreign markets. 
Section 515(e) shall apply with respect to activities 
authorized under this subsection.
    (d) Reserve Funds.--An order issued under this subtitle may 
contain authority to reserve funds from assessments collected 
under section 517 to permit an effective and continuous 
coordinated program of research, promotion, and information in 
years when 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 515(e) by the Secretary for any 
2 fiscal years.
    (e) Credits.--
            (1) Generic activities.--An order issued under this 
        subtitle may contain authority to provide credits of 
        assessments for those individuals who contribute to 
        other similar generic research, promotion, and 
        information programs at the State, regional, or local 
        level.
            (2) Branded activities.--
                    (A) In general.--The Secretary may permit a 
                farmer cooperative that engages in branded 
                activities relating to the marketing of the 
                products of members of the cooperative to 
                receive an annual credit for the activities and 
                related expenditures in the form of a deduction 
                of the total cost of the activities and related 
                expenditures from the amount of any assessment 
                that would otherwise be required to be paid by 
                the producer members of the cooperative under 
                an order issued under this subtitle.
                    (B) Election by cooperative.--A farmer 
                cooperative may elect to voluntarily waive the 
                application of subparagraph (A) to the 
                cooperative.
    (f) Assessment of Imports.--An order issued under this 
subtitle may contain authority for the board established under 
the order to assess under section 517 an imported agricultural 
commodity, or products of such an agricultural commodity, at a 
rate comparable to the rate determined by the appropriate board 
for the domestic agricultural commodity covered by the order.
    (g) Other Authority.--An order issued under this subtitle 
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 
        515, or any rule issued to carry out this subtitle; and
            (2) is necessary to administer the order.

SEC. 517. ASSESSMENTS.

    (a) Assessments Authorized.--While an order issued under 
this subtitle is in effect with respect to an agricultural 
commodity, assessments shall be--
            (1) paid by first handlers with respect to the 
        agricultural commodity produced and marketed in the 
        United States; and
            (2) paid by importers with respect to the 
        agricultural commodity imported into the United States, 
        if the imported agricultural commodity is covered by 
        the order pursuant to section 516(f).
    (b) Collection.--Assessments required under an order shall 
be remitted to the board established under the order at the 
time and in the manner prescribed by the order.
    (c) Limitation on Assessments.--Not more than 1 assessment 
may be levied on a first handler or importer under subsection 
(a) with respect to any agricultural commodity.
    (d) Assessment Rates.--The board shall recommend to the 
Secretary 1 or more rates of assessment to be levied under 
subsection (a). If approved by the Secretary, the rates shall 
take effect. An order may provide that an assessment rate may 
not be increased unless approved by a referendum conducted 
pursuant to section 518.
    (e) Late-Payment and Interest Charges.--
            (1) In general.--Late-payment and interest charges 
        may be levied on each person subject to an order who 
        fails to remit an assessment in accordance with 
        subsection (b).
            (2) Rate.--The rate for the charges shall be 
        specified by the Secretary.
    (f) Investment of Assessments.--Pending disbursement of 
assessments under a budget approved by the Secretary, a 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.
    (g) Refund of Assessments From Escrow Account.--
            (1) Escrow account.--During the period beginning on 
        the effective date of an order and ending on the date 
        the Secretary announces the results of a referendum 
        that is conducted under section 518(b)(1) with respect 
        to the order, the board established under the order 
        shall--
                    (A) establish and maintain an escrow 
                account of the kind described in subsection 
                (f)(3) to be used to refund assessments; and
                    (B) deposit funds in the account in 
                accordance with paragraph (2).
            (2) Amount to be deposited.--The board shall 
        deposit in the account an amount equal to 10 percent of 
        the assessments collected during the period referred to 
        in paragraph (1).
            (3) Right to receive refund.--Subject to paragraphs 
        (4), (5), and (6), persons subject to an order shall be 
        eligible to demand a refund of assessments collected 
        during the period referred to in paragraph (1) if--
                    (A) the assessments were remitted on behalf 
                of the person; and
                    (B) the order is not approved in the 
                referendum.
            (4) Form of demand.--The demand for a refund shall 
        be made at such time and in such form as specified by 
        the order.
            (5) Payment of refund.--A person entitled to a 
        refund shall be paid promptly after the board receives 
        satisfactory proof that the assessment for which the 
        refund is demanded was paid on behalf of the person who 
        makes the demand.
            (6) Proration.--If the funds in the escrow account 
        required by paragraph (1) are insufficient to pay the 
        amount of all refunds that persons subject to an order 
        otherwise would have a right to receive under this 
        subsection, the board shall prorate the amount of the 
        funds among all the persons.
            (7) Closing of escrow account.--If the order is 
        approved in a referendum conducted under section 
        518(b)(1)--
                    (A) the escrow account shall be closed; and
                    (B) the funds shall be available to the 
                board for disbursement as authorized in the 
                order.

SEC. 518. REFERENDA.

    (a) Initial Referendum.--
            (1) Optional referendum.--For the purpose of 
        ascertaining whether the persons to be covered by an 
        order favor the order going into effect, the order may 
        provide for the Secretary to conduct an initial 
        referendum among persons to be subject to an assessment 
        under section 517 who, during a representative period 
        determined by the Secretary, engaged in--
                    (A) the production or handling of the 
                agricultural commodity covered by the order; or
                    (B) the importation of the agricultural 
                commodity.
            (2) Procedure.--The results of the referendum shall 
        be determined in accordance with subsection (e). The 
        Secretary may require that the agricultural commodity 
        industry involved post a bond or other collateral to 
        cover the cost of the referendum.
    (b) Required Referenda.--
            (1) In general.--For the purpose of ascertaining 
        whether the persons covered by an order favor the 
        continuation, suspension, or termination of the order, 
        the Secretary shall conduct a referendum among persons 
        subject to assessments under section 517 who, during a 
        representative period determined by the Secretary, have 
        engaged in--
                    (A) the production or handling of the 
                agricultural commodity covered by the order; or
                    (B) the importation of the agricultural 
                commodity.
            (2) Time for referendum.--The referendum shall be 
        conducted not later than 3 years after assessments 
        first begin under the order.
            (3) Exception.--This subsection shall not apply if 
        an initial referendum was conducted under subsection 
        (a).
    (c) Subsequent Referenda.--The Secretary shall conduct a 
subsequent referendum--
            (1) not later than 7 years after assessments first 
        begin under the order;
            (2) at the request of the board established under 
        the order; or
            (3) at the request of 10 percent or more of the 
        number of persons eligible to vote under subsection 
        (b)(1);
to determine if the persons favor the continuation, suspension 
or termination of the order.
    (d) Other 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)(1).
    (e) Approval of Order.--An order may provide for its 
approval in a referendum--
            (1) by a majority of those persons voting;
            (2) by persons voting for approval who represent a 
        majority of the volume of the agricultural commodity; 
        or
            (3) by a majority of those persons voting for 
        approval who also represent a majority of the volume of 
        the agricultural commodity.
    (f) Costs of Referenda.--The board established under an 
order with respect to which a referendum is conducted under 
this section shall reimburse the Secretary for any expenses 
incurred by the Secretary to conduct the referendum.
    (g) 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 in order to facilitate the conduct of the 
        referendum, the Secretary may institute the advance 
        registration procedures by mail, or in person through 
        the use of national and local offices of the 
        Department.
            (3) Voting.--Eligible voters may vote by mail 
        ballot in the referendum or in person if so prescribed 
        by the Secretary.
            (4) Notice.--Not later than 30 days before a 
        referendum is conducted under this section with respect 
        to an order, the Secretary shall notify the 
        agricultural commodity industry involved, in such 
        manner as determined by the Secretary, of the period 
        during which voting in the referendum will occur. The 
        notice shall explain any registration and voting 
        procedures established under this subsection.

SEC. 519. PETITION AND REVIEW OF ORDERS.

    (a) Petition.--
            (1) In general.--A person subject to an order 
        issued under this subtitle 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 issued by the 
        Secretary.
            (3) Ruling.--After the hearing, the Secretary shall 
        make a ruling on the petition. The ruling shall be 
        final, subject to review as set forth in subsection 
        (b).
            (4) Limitation on petition.--Any petition filed 
        under this subsection challenging an order, any 
        provision of the order, or any obligation imposed in 
        connection with the order, shall be filed within 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 
        who 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 520 to be taken to enforce this subtitle, 
including any rule, order, or penalty in effect under this 
subtitle.

SEC. 520. 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, an order or regulation 
issued 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 providing a suitable written notice or 
warning to the person who committed the violation or by an 
administrative action under this section.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--A person who willfully 
        violates an order or regulation issued by the Secretary 
        under this Act 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 an order 
        or regulation issued 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 may issue an 
        order requiring a person to cease and desist from 
        violating the order or regulation.
            (4) Notice and hearing.--No order assessing a 
        penalty or cease-and-desist order may be issued by the 
        Secretary under this subsection unless the Secretary 
        provides notice and an opportunity for a hearing on the 
        record with respect to the violation.
            (5) Finality.--An order assessing a penalty or a 
        cease-and-desist order issued under this subsection by 
        the Secretary shall be final and conclusive unless the 
        person against whom the order is issued files an appeal 
        from the order with the United States court of appeals, 
        as provided in subsection (d).
    (d) Review by Court of Appeals.--
            (1) In general.--A person against whom an order is 
        issued under subsection (c) may obtain review of the 
        order by--
                    (A) filing, not later than 30 days after 
                the person receives notice of the order, a 
                notice of appeal in--
                            (i) the United States court of 
                        appeals for the circuit in which the 
                        person resides or carries on business; 
                        or
                            (ii) the United States Court of 
                        Appeals for the District of Columbia 
                        Circuit; and
                    (B) simultaneously sending a copy of the 
                notice of appeal by certified mail to the 
                Secretary.
            (2) Record.--The Secretary shall file with the 
        court a certified copy of the record on which the 
        Secretary has determined that the person has committed 
        a violation.
            (3) Standard of review.--A finding of the Secretary 
        under this section shall be set aside only if the 
        finding is found to be unsupported by substantial 
        evidence on the record.
    (e) Failure To Obey Cease-and-Desist Orders.--A person who 
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. 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.--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. 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. 521. 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 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.--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. 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.--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. 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 in the judicial district in which the person resides or 
carries on business or wherever the person may be found.

SEC. 522. 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 finds that an order or a provision of an order 
obstructs or does not tend to effectuate the purpose of this 
subtitle, or if the Secretary determines that the order or a 
provision of an order is not favored by persons voting in a 
referendum conducted under section 518.
    (b) Implementation of Suspension or Termination.--If, as a 
result of a referendum conducted under section 518, 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. 523. AMENDMENTS TO ORDERS.

    The provisions of this subtitle applicable to an order 
shall be applicable to any amendment to an order, except that 
section 518 shall not apply to an amendment.

SEC. 524. EFFECT ON OTHER LAWS.

    This subtitle shall not affect or preempt any other Federal 
or State law authorizing promotion or research relating to an 
agricultural commodity.

SEC. 525. REGULATIONS.

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

SEC. 526. AUTHORIZATION OF APPROPRIATIONS.

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

                    Subtitle C--Canola and Rapeseed

SEC. 531. SHORT TITLE.

    This subtitle may be cited as the ``Canola and Rapeseed 
Research, Promotion, and Consumer Information Act''.

SEC. 532. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) canola and rapeseed products are an important 
        and nutritious part of the human diet;
            (2) the production of canola and rapeseed products 
        plays a significant role in the economy of the United 
        States in that--
                    (A) canola and rapeseed products are 
                produced by thousands of canola and rapeseed 
                producers and processed by numerous processing 
                entities; and
                    (B) canola and rapeseed products produced 
                in the United States are consumed by people 
                throughout the United States and foreign 
                countries;
            (3) canola, rapeseed, and canola and rapeseed 
        products should be readily available and marketed 
        efficiently to ensure that consumers have an adequate 
        supply of canola and rapeseed products at a reasonable 
        price;
            (4) the maintenance and expansion of existing 
        markets and development of new markets for canola, 
        rapeseed, and canola and rapeseed products are vital to 
        the welfare of canola and rapeseed producers and 
        processors and those persons concerned with marketing 
        canola, rapeseed, and canola and rapeseed products, as 
        well as to the general economy of the United States, 
        and are necessary to ensure the ready availability and 
        efficient marketing of canola, rapeseed, and canola and 
        rapeseed products;
            (5) there exist established State and national 
        organizations conducting canola and rapeseed research, 
        promotion, and consumer education programs that are 
        valuable to the efforts of promoting the consumption of 
        canola, rapeseed, and canola and rapeseed products;
            (6) the cooperative development, financing, and 
        implementation of a coordinated national program of 
        canola and rapeseed research, promotion, consumer 
        information, and industry information is necessary to 
        maintain and expand existing markets and develop new 
        markets for canola, rapeseed, and canola and rapeseed 
        products; and
            (7) canola, rapeseed, and canola and rapeseed 
        products move in interstate and foreign commerce, and 
        canola, rapeseed, and canola and rapeseed products that 
        do not move in interstate or foreign commerce directly 
        burden or affect interstate commerce in canola, 
        rapeseed, and canola and rapeseed products.
    (b) Policy.--It is the policy of this subtitle to establish 
an orderly procedure for developing, financing through 
assessments on domestically produced canola and rapeseed, and 
implementing a program of research, promotion, consumer 
information, and industry information designed to strengthen 
the position in the marketplace of the canola and rapeseed 
industry, to maintain and expand existing domestic and foreign 
markets and uses for canola, rapeseed, and canola and rapeseed 
products, and to develop new markets and uses for canola, 
rapeseed, and canola and rapeseed products.
    (c) Construction.--Nothing in this subtitle provides for 
the control of production or otherwise limits the right of 
individual producers to produce canola, rapeseed, or canola or 
rapeseed products.

SEC. 533. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National 
        Canola and Rapeseed Board established under section 
        535(b).
            (2) Canola; rapeseed.--The terms ``canola'' and 
        ``rapeseed'' mean any brassica plant grown in the 
        United States for the production of an oilseed, the oil 
        of which is used for a food or nonfood use.
            (3) Canola or rapeseed product.--The term ``canola 
        or rapeseed product'' means a product produced, in 
        whole or in part, from canola or rapeseed.
            (4) Commerce.--The term ``commerce'' includes 
        interstate, foreign, and intrastate commerce.
            (5) Conflict of interest.--The term ``conflict of 
        interest'' means a situation in which a member of the 
        Board has a direct or indirect financial interest in a 
        corporation, partnership, sole proprietorship, joint 
        venture, or other business entity dealing directly or 
        indirectly with the Board.
            (6) Consumer information.--The term ``consumer 
        information'' means information that will assist 
        consumers and other persons in making evaluations and 
        decisions regarding the purchase, preparation, and use 
        of canola, rapeseed, or canola or rapeseed products.
            (7) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (8) First purchaser.--The term ``first purchaser'' 
        means--
                    (A) except as provided in subparagraph (B), 
                a person who buys or otherwise acquires canola, 
                rapeseed, or canola or rapeseed products 
                produced by a producer; or
                    (B) the Commodity Credit Corporation, in a 
                case in which canola or rapeseed is forfeited 
                to the Commodity Credit Corporation as 
                collateral for a loan issued under a price 
                support loan program administered by the 
                Commodity Credit Corporation.
            (9) Industry information.--The term ``industry 
        information'' means information or a program that will 
        lead to the development of new markets, new marketing 
        strategies, or increased efficiency for the canola and 
        rapeseed industry, or an activity to enhance the image 
        of the canola or rapeseed industry.
            (10) Industry member.--The term ``industry member'' 
        means a member of the canola and rapeseed industry who 
        represents--
                    (A) manufacturers of canola or rapeseed 
                products; or
                    (B) persons who commercially buy or sell 
                canola or rapeseed.
            (11) Marketing.--The term ``marketing'' means the 
        sale or other disposition of canola, rapeseed, or 
        canola or rapeseed products in a channel of commerce.
            (12) Order.--The term ``order'' means an order 
        issued under section 534.
            (13) Person.--The term ``person'' means an 
        individual, partnership, corporation, association, 
        cooperative, or any other legal entity.
            (14) Producer.--The term ``producer'' means a 
        person engaged in the growing of canola or rapeseed in 
        the United States who owns, or who shares the ownership 
        and risk of loss of, the canola or rapeseed.
            (15) Promotion.--The term ``promotion'' means an 
        action, including paid advertising, technical 
        assistance, or a trade servicing activity, to enhance 
        the image or desirability of canola, rapeseed, or 
        canola or rapeseed products in domestic and foreign 
        markets, or an activity designed to communicate to 
        consumers, processors, wholesalers, retailers, 
        government officials, or other persons information 
        relating to the positive attributes of canola, 
        rapeseed, or canola or rapeseed products or the 
        benefits of use or distribution of canola, rapeseed, or 
        canola or rapeseed products.
            (16) Research.--The term ``research'' means any 
        type of test, study, or analysis to advance the image, 
        desirability, marketability, production, product 
        development, quality, or functional or nutritional 
        value of canola, rapeseed, or canola or rapeseed 
        products, including research activity designed to 
        identify and analyze barriers to export sales of canola 
        or rapeseed produced in the United States.
            (17) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (18)  State.--The term ``State'' means any of the 
        50 States, the District of Columbia and the 
        Commonwealth of Puerto Rico.
            (19)  United states.--The term ``United States'' 
        means collectively the 50 States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.

SEC. 534. ISSUANCE AND AMENDMENT OF ORDERS.

    (a) In General.--Subject to subsection (b), the Secretary 
shall issue 1 or more orders under this subtitle applicable to 
producers and first purchasers of canola, rapeseed, or canola 
or rapeseed products. The order shall be national in scope. Not 
more than 1 order shall be in effect under this subtitle at any 
1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The 
        Secretary may propose the issuance of an order under 
        this subtitle, or an association of canola and rapeseed 
        producers or any other person that would be affected by 
        an order issued pursuant to this subtitle may request 
        the issuance of, and submit a proposal for, an order.
            (2) Notice and comment concerning proposed order.--
        Not later than 60 days after the receipt of a request 
        and proposal for an order pursuant to paragraph (1), or 
        whenever the Secretary determines to propose an order, 
        the Secretary shall publish a proposed order and give 
        due notice and opportunity for public comment on the 
        proposed order.
            (3) Issuance of order.--After notice and 
        opportunity for public comment are given as provided in 
        paragraph (2), the Secretary shall issue an order, 
        taking into consideration the comments received and 
        including in the order provisions necessary to ensure 
        that the order is in conformity with the requirements 
        of this subtitle. The order shall be issued and become 
        effective not later than 180 days following publication 
        of the proposed order.
    (c) Amendments.--The Secretary may amend an order issued 
under this section.

SEC. 535. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order issued under this subtitle shall 
contain the terms and conditions specified in this section.
    (b) Establishment and Membership of the National Canola and 
Rapeseed Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a 
        National Canola and Rapeseed Board to administer the 
        order.
            (2) Service to entire industry.--The Board shall 
        carry out programs and projects that will provide 
        maximum benefit to the canola and rapeseed industry in 
        all parts of the United States and only promote canola, 
        rapeseed, or canola or rapeseed products.
            (3) Board membership.--The Board shall consist of 
        15 members, including--
                    (A) 11 members who are producers, 
                including--
                            (i) 1 member from each of the 6 
                        geographic regions comprised of States 
                        where canola or rapeseed is produced, 
                        as determined by the Secretary; and
                            (ii) 5 members from the geographic 
                        regions referred to in clause (i), 
                        allocated according to the production 
                        in each region; and
                    (B) 4 members who are industry members, 
                including at least--
                            (i) 1 member who represents 
                        manufacturers of canola or rapeseed end 
                        products; and
                            (ii) 1 member who represents 
                        persons who commercially buy or sell 
                        canola or rapeseed.
            (4) Limitation on state residence.--There shall be 
        no more than 4 producer members of the Board from any 1 
        State.
            (5) Modifying board membership.--In accordance with 
        regulations approved by the Secretary, at least once 
        each 3 years and not more than once each 2 years, the 
        Board shall review the geographic distribution of 
        canola and rapeseed production throughout the United 
        States and, if warranted, recommend to the Secretary 
        that the Secretary--
                    (A) reapportion regions in order to reflect 
                the geographic distribution of canola and 
                rapeseed production; and
                    (B) reapportion the seats on the Board to 
                reflect the production in each region.
            (6) Certification of organizations.--
                    (A) In general.--For the purposes of 
                section 536, the eligibility of any State 
                organization to represent producers shall be 
                certified by the Secretary.
                    (B) Criteria.--The Secretary shall certify 
                any State organization that the Secretary 
                determines has a history of stability and 
                permanency and meets at least 1 of the 
                following criteria:
                            (i) Majority representation.--The 
                        total paid membership of the 
                        organization--
                                    (I) is comprised of at 
                                least a majority of canola or 
                                rapeseed producers; or
                                    (II) represents at least a 
                                majority of the canola or 
                                rapeseed producers in the 
                                State.
                            (ii) Substantial number of 
                        producers represented.--The 
                        organization represents a substantial 
                        number of producers that produce a 
                        substantial quantity of canola or 
                        rapeseed in the State.
                            (iii) Purpose.--The organization is 
                        a general farm or agricultural 
                        organization that has as a stated 
                        objective the promotion and development 
                        of the United States canola or rapeseed 
                        industry and the economic welfare of 
                        United States canola or rapeseed 
                        producers.
                    (C) Report.--The Secretary shall make a 
                certification under this paragraph on the basis 
                of a factual report submitted by the State 
                organization.
            (7) Terms of office.--
                    (A) In general.--A member of the Board 
                shall serve for a term of 3 years, except that 
                the members appointed to the initial Board 
                shall serve, proportionately, for terms of 1, 
                2, and 3 years, as determined by the Secretary.
                    (B) Limitation on terms.--No individual may 
                serve more than 2 consecutive 3-year terms as a 
                member.
                    (C) Termination of terms.--Notwithstanding 
                subparagraph (B), each member shall continue to 
                serve until a successor is appointed by the 
                Secretary.
            (8) Compensation.--A member of the Board shall 
        serve without compensation, but shall be reimbursed for 
        necessary and reasonable expenses incurred in the 
        performance of duties for and approved by the Board.
    (c) Powers and Duties of the Board.--The order shall define 
the powers and duties of the Board, which shall include the 
power and duty--
            (1) to administer the order in accordance with the 
        terms and conditions of the order;
            (2) to issue regulations to effectuate the terms 
        and conditions of the order;
            (3) to meet, organize, and select from among 
        members of the Board a chairperson, other officers, and 
        committees and subcommittees, as the Board determines 
        appropriate;
            (4) to establish working committees of persons 
        other than Board members;
            (5) to employ such persons, other than Board 
        members, as the Board considers necessary, and to 
        determine the compensation and define the duties of the 
        persons;
            (6) to prepare and submit for the approval of the 
        Secretary, when appropriate or necessary, a recommended 
        rate of assessment under section 536, and a fiscal 
        period budget of the anticipated expenses in the 
        administration of the order, including the probable 
        costs of all programs and projects;
            (7) to develop programs and projects, subject to 
        subsection (d);
            (8) to enter into contracts or agreements, subject 
        to subsection (e), to develop and carry out programs or 
        projects of research, promotion, industry information, 
        and consumer information;
            (9) to carry out research, promotion, industry 
        information, and consumer information projects, and to 
        pay the costs of the projects with assessments 
        collected under section 536;
            (10) to keep minutes, books, and records that 
        reflect the actions and transactions of the Board, and 
        promptly report minutes of each Board meeting to the 
        Secretary;
            (11) to appoint and convene, from time to time, 
        working committees comprised of producers, industry 
        members, and the public to assist in the development of 
        research, promotion, industry information, and consumer 
        information programs for canola, rapeseed, and canola 
        and rapeseed products;
            (12) to invest, pending disbursement under a 
        program or project, funds collected through assessments 
        authorized under section 536, or funds earned from 
        investments, only in--
                    (A) obligations of the United States or an 
                agency of the United States;
                    (B) general obligations of a State or a 
                political subdivision of a State;
                    (C) an interest-bearing account or 
                certificate of deposit of a bank that is a 
                member of the Federal Reserve System; or
                    (D) obligations fully guaranteed as to 
                principal and interest by the United States;
            (13) to receive, investigate, and report to the 
        Secretary complaints of violations of the order;
            (14) to furnish the Secretary with such information 
        as the Secretary may request;
            (15) to recommend to the Secretary amendments to 
        the order;
            (16) to develop and recommend to the Secretary for 
        approval such regulations as may be necessary for the 
        development and execution of programs or projects, or 
        as may otherwise be necessary, to carry out the order; 
        and
            (17) to provide the Secretary with advance notice 
        of meetings.
    (d) Programs and Budgets.--
            (1) Submission to secretary.--The order shall 
        provide that the Board shall submit to the Secretary 
        for approval any program or project of research, 
        promotion, consumer information, or industry 
        information. No program or project shall be implemented 
        prior to approval by the Secretary.
            (2) Budgets.--The order shall require the Board, 
        prior to the beginning of each fiscal year, or as may 
        be necessary after the beginning of a fiscal year, to 
        submit to the Secretary for approval budgets of 
        anticipated expenses and disbursements in the 
        implementation of the order, including projected costs 
        of research, promotion, consumer information, and 
        industry information programs and projects.
            (3) Incurring expenses.--The Board may incur such 
        expenses for programs or projects of research, 
        promotion, consumer information, or industry 
        information, and other expenses for the administration, 
        maintenance, and functioning of the Board as may be 
        authorized by the Secretary, including any 
        implementation, administrative, and referendum costs 
        incurred by the Department.
            (4) Paying expenses.--The funds to cover the 
        expenses referred to in paragraph (3) shall be paid by 
        the Board from assessments collected under section 536 
        or funds borrowed pursuant to paragraph (5).
            (5) Authority to borrow.--To meet the expenses 
        referred to in paragraph (3), the Board shall have the 
        authority to borrow funds, as approved by the 
        Secretary, for capital outlays and startup costs.
    (e) Contracts and Agreements.--
            (1) In general.--To ensure efficient use of funds, 
        the order shall provide that the Board may enter into a 
        contract or agreement for the implementation and 
        carrying out of a program or project of canola, 
        rapeseed, or canola or rapeseed products research, 
        promotion, consumer information, or industry 
        information, including a contract with a producer 
        organization, and for the payment of the costs with 
        funds received by the Board under the order.
            (2) Requirements.--A contract or agreement under 
        paragraph (1) shall provide that--
                    (A) the contracting party shall develop and 
                submit to the Board a program or project 
                together with a budget that shall show the 
                estimated costs to be incurred for the program 
                or project;
                    (B) the program or project shall become 
                effective on the approval of the Secretary; and
                    (C) the contracting party shall keep 
                accurate records of all transactions, account 
                for funds received and expended, make periodic 
                reports to the Board of activities conducted, 
                and make such other reports as the Board or the 
                Secretary may require.
            (3) Producer organizations.--The order shall 
        provide that the Board may contract with a producer 
        organization for any services required in addition to 
        the services described in paragraph (1). The contract 
        shall include provisions comparable to the provisions 
        required by paragraph (2).
    (f) Books and Records of the Board.--
            (1) In general.--The order shall require the Board 
        to--
                    (A) maintain such books and records (which 
                shall be available to the Secretary for 
                inspection and audit) as the Secretary may 
                prescribe;
                    (B) prepare and submit to the Secretary, 
                from time to time, such reports as the 
                Secretary may prescribe; and
                    (C) account for the receipt and 
                disbursement of all funds entrusted to the 
                Board.
            (2) Audits.--The Board shall cause the books and 
        records of the Board to be audited by an independent 
        auditor at the end of each fiscal year, and a report of 
        the audit to be submitted to the Secretary.
    (g) Prohibition.--
            (1) In general.--Subject to paragraph (2), the 
        Board shall not engage in any action to, nor shall any 
        funds received by the Board under this subtitle be used 
        to--
                    (A) influence legislation or governmental 
                action;
                    (B) engage in an action that would be a 
                conflict of interest;
                    (C) engage in advertising that is false or 
                misleading; or
                    (D) engage in promotion that would 
                disparage other commodities.
            (2) Action permitted.--Paragraph (1) does not 
        preclude--
                    (A) the development and recommendation of 
                amendments to the order;
                    (B) the communication to appropriate 
                government officials of information relating to 
                the conduct, implementation, or results of 
                promotion, research, consumer information, or 
                industry information activities under the 
                order; or
                    (C) any action designed to market canola or 
                rapeseed products directly to a foreign 
                government or political subdivision of a 
                foreign government.
    (h) Books and Records.--
            (1) In general.--The order shall require that each 
        producer, first purchaser, or industry member shall--
                    (A) maintain and submit to the Board any 
                reports considered necessary by the Secretary 
                to ensure compliance with this subtitle; and
                    (B) make available during normal business 
                hours, for inspection by employees of the Board 
                or Secretary, such books and records as are 
                necessary to carry out this subtitle, including 
                such records as are necessary to verify any 
                required reports.
            (2) Confidentiality.--
                    (A) In general.--Except as otherwise 
                provided in this subtitle, all information 
                obtained from books, records, or reports 
                required to be maintained under paragraph (1) 
                shall be kept confidential, and shall not be 
                disclosed to the public by any person.
                    (B) Disclosure.--Information referred to in 
                subparagraph (A) may be disclosed to the public 
                if--
                            (i) the Secretary considers the 
                        information relevant;
                            (ii) the information is revealed in 
                        a suit or administrative hearing 
                        brought at the direction or on the 
                        request of the Secretary or to which 
                        the Secretary or any officer of the 
                        Department is a party; and
                            (iii) the information relates to 
                        this subtitle.
                    (C) Misconduct.--A knowing disclosure of 
                confidential information in violation of 
                subparagraph (A) by an officer or employee of 
                the Board or Department, except as required by 
                other law or allowed under subparagraph (B) or 
                (D), shall be considered a violation of this 
                subtitle.
                    (D) General statements.--Nothing in this 
                paragraph prohibits--
                            (i) the issuance of general 
                        statements based on the reports of a 
                        number of persons subject to an order 
                        or statistical data collected from the 
                        reports, if the statements do not 
                        identify the information furnished by 
                        any person; or
                            (ii) the publication, by direction 
                        of the Secretary, of the name of a 
                        person violating the order, together 
                        with a statement of the particular 
                        provisions of the order violated by the 
                        person.
            (3) Availability of information for law 
        enforcement.--Information obtained under this subtitle 
        may be made available to another agency of the Federal 
        Government for a civil or criminal law enforcement 
        activity if the activity is authorized by law and if 
        the head of the agency has made a written request to 
        the Secretary specifying the particular information 
        desired and the law enforcement activity for which the 
        information is sought.
            (4) Penalty.--Any person knowingly violating this 
        subsection, on conviction, shall be subject to a fine 
        of not more than $1,000 or to imprisonment for not more 
        than 1 year, or both, and if an officer or employee of 
        the Board or the Department, shall be removed from 
        office or terminated from employment, as applicable.
            (5) Withholding of information.--Nothing in this 
        subtitle authorizes the withholding of information from 
        Congress.
    (i) Use of Assessments.--The order shall provide that the 
assessments collected under section 536 shall be used for 
payment of the expenses in implementing and administering this 
subtitle, with provision for a reasonable reserve, and to cover 
administrative costs incurred by the Secretary in implementing 
and administering this subtitle.
    (j) Other Terms and Conditions.--The order shall contain 
such other terms and conditions, not inconsistent with this 
subtitle, as are determined necessary by the Secretary to 
effectuate this subtitle.

SEC. 536. ASSESSMENTS.

    (a) In General.--
            (1) First purchasers.--During the effective period 
        of an order issued pursuant to this subtitle, 
        assessments shall be--
                    (A) levied on all canola or rapeseed 
                produced in the United States and marketed; and
                    (B) deducted from the payment made to a 
                producer for all canola or rapeseed sold to a 
                first purchaser.
            (2) Direct processing.--The order shall provide 
        that any person processing canola or rapeseed of that 
        person's own production and marketing the canola or 
        rapeseed, or canola or rapeseed products, shall remit 
        to the Board or a State organization certified to 
        represent producers under section 535(b)(6), in the 
        manner prescribed by the order, an assessment 
        established at a rate equivalent to the rate provided 
        for under subsection (d).
    (b) Limitation on Assessments.--No more than 1 assessment 
may be assessed under subsection (a) on any canola or rapeseed 
produced (as remitted by a first purchaser).
    (c) Remitting of Assessments.--
            (1) In general.--Assessments required under 
        subsection (a) shall be remitted to the Board by a 
        first purchaser. The Board shall use State 
        organizations certified to represent producers under 
        section 535(b)(6) to collect the assessments. If an 
        appropriate certified State organization does not exist 
        to collect an assessment, the assessment shall be 
        collected by the Board. There shall be only 1 certified 
        State organization in each State.
            (2) Times to remit assessment.--Each first 
        purchaser shall remit the assessment to the Board as 
        provided for in the order.
    (d) Assessment Rate.--
            (1) Initial rate.--The initial assessment rate 
        shall be 4 cents per hundredweight of canola or 
        rapeseed produced and marketed.
            (2) Increase.--The assessment rate may be increased 
        on recommendation by the Board to a rate not exceeding 
        10 cents per hundredweight of canola or rapeseed 
        produced and marketed in a State, unless--
                    (A) after the initial referendum is held 
                under section 537(a), the Board recommends an 
                increase above 10 cents per hundredweight; and
                    (B) the increase is approved in a 
                referendum under section 537(b).
            (3) Credit.--A producer who demonstrates to the 
        Board that the producer is participating in a program 
        of a State organization certified to represent 
        producers under section 535(b)(6) shall receive credit, 
        in determining the assessment due from the producer, 
        for contributions to the program of up to 2 cents per 
        hundredweight of canola or rapeseed marketed.
    (e) Late Payment Charge.--
            (1) In general.--There shall be a late payment 
        charge imposed on any person who fails to remit, on or 
        before the date provided for in the order, to the Board 
        the total amount for which the person is liable.
            (2) Amount of charge.--The amount of the late 
        payment charge imposed under paragraph (1) shall be 
        prescribed by the Board with the approval of the 
        Secretary.
    (f) Refund of Assessments From Escrow Account.--
            (1) Establishment of escrow account.--During the 
        period beginning on the date on which an order is first 
        issued under section 534(b)(3) and ending on the date 
        on which a referendum is conducted under section 
        537(a), the Board shall--
                    (A) establish and maintain an escrow 
                account to be used for assessment refunds; and
                    (B) place funds in the account in 
                accordance with paragraph (2).
            (2) Placement of funds in account.--The Board shall 
        place in the account, from assessments collected during 
        the period referred to in paragraph (1), an amount 
        equal to the product obtained by multiplying the total 
        amount of assessments collected during the period by 10 
        percent.
            (3) Right to receive refund.--The Board shall 
        refund to a producer the assessments paid by or on 
        behalf of the producer if--
                    (A) the producer is required to pay the 
                assessment;
                    (B) the producer does not support the 
                program established under this subtitle; and
                    (C) the producer demands the refund prior 
                to the conduct of the referendum under section 
                537(a).
            (4) Form of demand.--The demand shall be made in 
        accordance with such regulations, in such form, and 
        within such time period as prescribed by the Board.
            (5) Making of refund.--The refund shall be made on 
        submission of proof satisfactory to the Board that the 
        producer paid the assessment for which the refund is 
        demanded.
            (6) Proration.--If--
                    (A) the amount in the escrow account 
                required by paragraph (1) is not sufficient to 
                refund the total amount of assessments demanded 
                by eligible producers; and
                    (B) the order is not approved pursuant to 
                the referendum conducted under section 537(a);
        the Board shall prorate the amount of the refunds among 
        all eligible producers who demand a refund.
            (7) Program approved.--If the plan is approved 
        pursuant to the referendum conducted under section 
        537(a), all funds in the escrow account shall be 
        returned to the Board for use by the Board in 
        accordance with this subtitle.

SEC. 537. REFERENDA.

    (a) Initial Referendum.--
            (1) Requirement.--During the period ending 30 
        months after the date on which an order is first issued 
        under section 534(b)(3), the Secretary shall conduct a 
        referendum among producers who, during a representative 
        period as determined by the Secretary, have been 
        engaged in the production of canola or rapeseed for the 
        purpose of ascertaining whether the order then in 
        effect shall be continued.
            (2) Advance notice.--The Secretary shall, to the 
        extent practicable, provide broad public notice in 
        advance of any referendum. The notice shall be 
        provided, without advertising expenses, by means of 
        newspapers, county newsletters, the electronic media, 
        and press releases, through the use of notices posted 
        in State and county Cooperative State Research, 
        Education, and Extension Service offices and county 
        Consolidated Farm Service Agency offices, and by other 
        appropriate means specified in the order. The notice 
        shall contain information on when the referendum will 
        be held, registration and voting requirements, rules 
        regarding absentee voting, and other pertinent 
        information.
            (3) Approval of order.--The order shall be 
        continued only if the Secretary determines that the 
        order has been approved by not less than a majority of 
        the producers voting in the referendum.
            (4) Disapproval of order.--If continuation of the 
        order is not approved by a majority of the producers 
        voting in the referendum, the Secretary shall terminate 
        collection of assessments under the order within 180 
        days after the referendum and shall terminate the order 
        in an orderly manner as soon as practicable.
    (b) Additional Referenda.--
            (1) In general.--
                    (A) Requirement.--After the initial 
                referendum on an order, the Secretary shall 
                conduct additional referenda, as described in 
                subparagraph (C), if requested by a 
                representative group of producers, as described 
                in subparagraph (B).
                    (B) Representative group of producers.--An 
                additional referendum on an order shall be 
                conducted if requested by 10 percent or more of 
                the producers who, during a representative 
                period as determined by the Secretary, have 
                been engaged in the production of canola or 
                rapeseed.
                    (C) Eligible producers.--Each additional 
                referendum shall be conducted among all 
                producers who, during a representative period 
                as determined by the Secretary, have been 
                engaged in the production of canola or rapeseed 
                to determine whether the producers favor the 
                termination or suspension of the order.
            (2) Disapproval of order.--If the Secretary 
        determines, in a referendum conducted under paragraph 
        (1), that suspension or termination of the order is 
        favored by a majority of the producers voting in the 
        referendum, the Secretary shall suspend or terminate, 
        as appropriate, collection of assessments under the 
        order within 180 days after the determination, and 
        shall suspend or terminate the order, as appropriate, 
        in an orderly manner as soon as practicable after the 
        determination.
            (3) Opportunity to request additional referenda.--
                    (A) In general.--Beginning on the date that 
                is 5 years after the conduct of a referendum 
                under this subtitle, and every 5 years 
                thereafter, the Secretary shall provide canola 
                and rapeseed producers an opportunity to 
                request an additional referendum.
                    (B) Method of making request.--
                            (i) In-person requests.--To carry 
                        out subparagraph (A), the Secretary 
                        shall establish a procedure under which 
                        a producer may make a request for a 
                        reconfirmation referendum in person at 
                        a county Cooperative State Research, 
                        Education, and Extension Service office 
                        or a county Consolidated Farm Service 
                        Agency office during a period 
                        established by the Secretary, or as 
                        provided in clause (ii).
                            (ii) Mail-in requests.--In lieu of 
                        making a request in person, a producer 
                        may make a request by mail. To 
                        facilitate the submission of requests 
                        by mail, the Secretary may make mail-in 
                        request forms available to producers.
                    (C) Notifications.--The Secretary shall 
                publish a notice in the Federal Register, and 
                the Board shall provide written notification to 
                producers, not later than 60 days prior to the 
                end of the period established under 
                subparagraph (B)(i) for an in-person request, 
                of the opportunity of producers to request an 
                additional referendum. The notification shall 
                explain the right of producers to an additional 
                referendum, the procedure for a referendum, the 
                purpose of a referendum, and the date and 
                method by which producers may act to request an 
                additional referendum under this paragraph. The 
                Secretary shall take such other action as the 
                Secretary determines is necessary to ensure 
                that producers are made aware of the 
                opportunity to request an additional 
                referendum.
                    (D) Action by secretary.--As soon as 
                practicable following the submission of a 
                request for an additional referendum, the 
                Secretary shall determine whether a sufficient 
                number of producers have requested the 
                referendum, and take such steps as are 
                necessary to conduct the referendum, as 
                required under paragraph (1).
                    (E) Time limit.--An additional referendum 
                requested under the procedures provided in this 
                paragraph shall be conducted not later than 1 
                year after the Secretary determines that a 
                representative group of producers, as described 
                in paragraph (1)(B), have requested the conduct 
                of the referendum.
    (c) Procedures.--
            (1) Reimbursement of secretary.--The Secretary 
        shall be reimbursed from assessments collected by the 
        Board for any expenses incurred by the Secretary in 
        connection with the conduct of an activity required 
        under this section.
            (2) Date.--Each referendum shall be conducted for a 
        reasonable period of time not to exceed 3 days, 
        established by the Secretary, under a procedure under 
        which producers intending to vote in the referendum 
        shall certify that the producers were engaged in the 
        production of canola, rapeseed, or canola or rapeseed 
        products during the representative period and, at the 
        same time, shall be provided an opportunity to vote in 
        the referendum.
            (3) Place.--Referenda under this section shall be 
        conducted at locations determined by the Secretary. On 
        request, absentee mail ballots shall be furnished by 
        the Secretary in a manner prescribed by the Secretary.

SEC. 538. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order 
        issued under this subtitle may file with the Secretary 
        a petition--
                    (A) stating that the order, a provision of 
                the order, or an 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) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under 
        paragraph (1), in accordance with regulations issued by 
        the Secretary.
            (3) Ruling.--After a hearing under paragraph (2), 
        the Secretary shall issue a ruling on the petition that 
        is the subject of the hearing, which shall be final if 
        the ruling is in accordance with applicable law.
            (4) Limitation on petition.--Any petition filed 
        under this subtitle challenging an order, or any 
        obligation imposed in connection with an order, shall 
        be filed not later than 2 years after the effective 
        date of the order or imposition of the obligation.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which the person 
        who is a petitioner under subsection (a) resides or 
        carries on business shall have jurisdiction to review a 
        ruling on the petition, if a complaint is filed by the 
        person not later than 20 days after the date of the 
        entry of a ruling by the Secretary under subsection 
        (a)(3).
            (2) Process.--Service of process in a proceeding 
        under paragraph (1) shall be conducted in accordance 
        with the Federal Rules of Civil Procedure.
            (3) Remands.--If the court determines, under 
        paragraph (1), that a ruling issued under subsection 
        (a)(3) is not in accordance with applicable law, the 
        court shall remand the matter to the Secretary with 
        directions either--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in 
                the opinion of the court, the law requires.
            (4) Enforcement.--The pendency of proceedings 
        instituted under subsection (a) shall not impede, 
        hinder, or delay the Attorney General or the Secretary 
        from taking any action under section 539.

SEC. 539. ENFORCEMENT.

    (a) Jurisdiction.--The district courts of the United States 
are vested with jurisdiction specifically to enforce, and to 
prevent and restrain any person from violating, an order or 
regulation made or issued under this subtitle.
    (b) Referral to Attorney General.--A civil action 
authorized to be commenced 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 providing a suitable written notice or 
warning to the person committing the violation or by 
administrative action under subsection (c).
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--
                    (A) In general.--Any person who willfully 
                violates any provision of an order or 
                regulation issued by the Secretary under this 
                subtitle, or who fails or refuses to pay, 
                collect, or remit an assessment or fee required 
                of the person under an order or regulation, may 
                be assessed--
                            (i) a civil penalty by the 
                        Secretary of not more than $1,000 for 
                        each violation; and
                            (ii) in the case of a willful 
                        failure to pay, collect, or remit an 
                        assessment as required by an order or 
                        regulation, an additional penalty equal 
                        to the amount of the assessment.
                    (B) Separate offense.--Each violation under 
                subparagraph (A) shall be a separate offense.
            (2) Cease-and-desist orders.--In addition to, or in 
        lieu of, a civil penalty under paragraph (1), the 
        Secretary may issue an order requiring a person to 
        cease and desist from continuing a violation.
            (3) Notice and hearing.--No penalty shall be 
        assessed, or cease-and-desist order issued, by the 
        Secretary under this subsection unless the person 
        against whom the penalty is assessed or the cease-and-
        desist order is issued is given notice and opportunity 
        for a hearing before the Secretary with respect to the 
        violation.
            (4) Finality.--The order of the Secretary assessing 
        a penalty or imposing a cease-and-desist order under 
        this subsection shall be final and conclusive unless 
        the affected person files an appeal of the order in the 
        appropriate district court of the United States in 
        accordance with subsection (d).
    (d) Review by District Court.--
            (1) Commencement of action.--Any person who has 
        been determined to be in violation of this subtitle, or 
        against whom a civil penalty has been assessed or a 
        cease-and-desist order issued under subsection (c), may 
        obtain review of the penalty or cease-and-desist order 
        by--
                    (A) filing, within the 30-day period 
                beginning on the date the penalty is assessed 
                or cease-and-desist order issued, a notice of 
                appeal in--
                            (i) the district court of the 
                        United States for the district in which 
                        the person resides or carries on 
                        business; or
                            (ii) the United States District 
                        Court for the District of Columbia; and
                    (B) simultaneously sending a copy of the 
                notice by certified mail to the Secretary.
            (2) Record.--The Secretary shall file promptly, in 
        the appropriate court referred to in paragraph (1), a 
        certified copy of the record on which the Secretary 
        determined that the person committed the 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.
    (e) Failure To Obey Cease-and-Desist Orders.--Any person 
who fails to obey a cease-and-desist order issued under this 
section after the cease-and-desist order has become final and 
unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, 
shall be subject to a civil penalty assessed by the Secretary, 
after opportunity for a hearing and for judicial review under 
the procedures specified in subsections (c) and (d), of not 
more than $5,000 for each offense. Each day during which the 
failure continues shall be considered as a separate violation 
of the cease-and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty under this section after the 
assessment has become a final and unappealable order, or after 
the appropriate United States district court has entered final 
judgment in favor of 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. In 
an action for recovery, the validity and appropriateness of the 
final order imposing the civil penalty shall not be subject to 
review.
    (g) Additional Remedies.--The remedies provided in this 
subtitle shall be in addition to, and not exclusive of, other 
remedies that may be available.

SEC. 540. 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; and
            (2) to determine whether any person has engaged or 
        is engaging in an act that constitutes a violation of 
        this subtitle, or an order, rule, or regulation issued 
        under this subtitle.
    (b) Subpoenas, Oaths, and Affirmations.--
            (1) In general.--For the purpose of an 
        investigation under subsection (a), the Secretary may 
        administer oaths and affirmations, subpoena witnesses, 
        take evidence, and issue subpoenas to require the 
        production of any records that are relevant to the 
        inquiry. The attendance of witnesses and the production 
        of records may be required from any place in the United 
        States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 538 or 539, 
        the presiding officer is authorized to administer oaths 
        and affirmations, subpoena and compel the attendance of 
        witnesses, take evidence, and require the production of 
        any records that are relevant to the inquiry. The 
        attendance of witnesses and the production of records 
        may be required from any place in the United States.
    (c) Aid of Courts.--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 enforce a subpoena issued by the Secretary under 
subsection (b). The court may issue an order requiring the 
person to comply with the subpoena.
    (d) Contempt.--A failure to obey an order of the court 
under this section may be punished by the court as contempt of 
the court.
    (e) Process.--Process may be served on a person in the 
judicial district in which the person resides or carries on 
business or wherever the person may be found.
    (f) Hearing Site.--The site of a hearing held under section 
538 or 539 shall be in the judicial district where the person 
affected by the hearing resides or has a principal place of 
business.

SEC. 541. SUSPENSION OR TERMINATION.

    The Secretary shall, whenever the Secretary finds that an 
order or a provision of an order obstructs or does not tend to 
effectuate the declared policy of this subtitle, suspend or 
terminate the operation of the order or provision. The 
suspension or termination of an order shall not be considered 
an order within the meaning of this subtitle.

SEC. 542. REGULATIONS.

    The Secretary may issue such regulations as are necessary 
to carry out this subtitle.

SEC. 543. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
for each fiscal year such sums as are necessary to carry out 
this subtitle.
    (b) Administrative Expenses.--Funds appropriated under 
subsection (a) shall not be available for payment of the 
expenses or expenditures of the Board in administering a 
provision of an order issued under this subtitle.

                         Subtitle D--Kiwifruit

SEC. 551. SHORT TITLE.

    This subtitle may be cited as the ``National Kiwifruit 
Research, Promotion, and Consumer Information Act''.

SEC. 552. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) domestically produced kiwifruit are grown by 
        many individual producers;
            (2) virtually all domestically produced kiwifruit 
        are grown in the State of California, although there is 
        potential for production in many other areas of the 
        United States;
            (3) kiwifruit move in interstate and foreign 
        commerce, and kiwifruit that do not move in channels of 
        commerce directly burden or affect interstate commerce;
            (4) in recent years, large quantities of kiwifruit 
        have been imported into the United States;
            (5) the maintenance and expansion of existing 
        domestic and foreign markets for kiwifruit, and the 
        development of additional and improved markets for 
        kiwifruit, are vital to the welfare of kiwifruit 
        producers and other persons concerned with producing, 
        marketing, and processing kiwifruit;
            (6) a coordinated program of research, promotion, 
        and consumer information regarding kiwifruit is 
        necessary for the maintenance and development of the 
        markets; and
            (7) kiwifruit producers, handlers, and importers 
        are unable to implement and finance such a program 
        without cooperative action.
    (b) Purposes.--The purposes of this subtitle are--
            (1) to authorize the establishment of an orderly 
        procedure for the development and financing (through an 
        assessment) of an effective and coordinated program of 
        research, promotion, and consumer information regarding 
        kiwifruit;
            (2) to use the program to strengthen the position 
        of the kiwifruit industry in domestic and foreign 
        markets and maintain, develop, and expand markets for 
        kiwifruit; and
            (3) to treat domestically produced kiwifruit and 
        imported kiwifruit equitably.

SEC. 553. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the National 
        Kiwifruit Board established under section 555.
            (2) Consumer information.--The term ``consumer 
        information'' means any action taken to provide 
        information to, and broaden the understanding of, the 
        general public regarding the consumption, use, 
        nutritional attributes, and care of kiwifruit.
            (3) Exporter.--The term ``exporter'' means any 
        person from outside the United States who exports 
        kiwifruit into the United States.
            (4) Handler.--The term ``handler'' means any 
        person, excluding a common carrier, engaged in the 
        business of buying and selling, packing, marketing, or 
        distributing kiwifruit as specified in the order.
            (5) Importer.--The term ``importer'' means any 
        person who imports kiwifruit into the United States.
            (6) Kiwifruit.--The term ``kiwifruit'' means all 
        varieties of fresh kiwifruit grown in or imported into 
        the United States.
            (7) Marketing.--The term ``marketing'' means the 
        sale or other disposition of kiwifruit into interstate, 
        foreign, or intrastate commerce by buying, marketing, 
        distribution, or otherwise placing kiwifruit into 
        commerce.
            (8) Order.--The term ``order'' means a kiwifruit 
        research, promotion, and consumer information order 
        issued by the Secretary under section 554.
            (9) Person.--The term ``person'' means any 
        individual, group of individuals, partnership, 
        corporation, association, cooperative, or other legal 
        entity.
            (10) Processing.--The term ``processing'' means 
        canning, fermenting, distilling, extracting, 
        preserving, grinding, crushing, or in any manner 
        changing the form of kiwifruit for the purpose of 
        preparing the kiwifruit for market or marketing the 
        kiwifruit.
            (11) Producer.--The term ``producer'' means any 
        person who grows kiwifruit in the United States for 
        sale in commerce.
            (12) Promotion.--The term ``promotion'' means any 
        action taken under this subtitle (including paid 
        advertising) to present a favorable image of kiwifruit 
        to the general public for the purpose of improving the 
        competitive position of kiwifruit and stimulating the 
        sale of kiwifruit.
            (13) Research.--The term ``research'' means any 
        type of research relating to the use, nutritional 
        value, and marketing of kiwifruit conducted for the 
        purpose of advancing the image, desirability, 
        marketability, or quality of kiwifruit.
            (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (15) United states.--The term ``United States'' 
        means the 50 States of the United States, the District 
        of Columbia, and the Commonwealth of Puerto Rico.

SEC. 554. ISSUANCE OF ORDERS.

    (a) Issuance.--To effectuate the purposes of this subtitle 
specified in section 552(b), the Secretary shall issue an order 
applicable to producers, handlers, and importers of kiwifruit. 
Any such order shall be national in scope. Not more than 1 
order shall be in effect under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal for issuance of order.--Any person 
        that will be affected by this subtitle may request the 
        issuance of, and submit a proposal for, an order under 
        this subtitle.
            (2) Proposed order.--Not later than 90 days after 
        the receipt of a request and proposal for an order, the 
        Secretary shall publish a proposed order and give due 
        notice and opportunity for public comment on the 
        proposed order.
            (3) Issuance of order.--After notice and 
        opportunity for public comment are provided under 
        paragraph (2), the Secretary shall issue an order, 
        taking into consideration the comments received and 
        including in the order provisions necessary to ensure 
        that the order is in conformity with this subtitle.
    (c) Amendments.--The Secretary may amend any order issued 
under this section. The provisions of this subtitle applicable 
to an order shall be applicable to an amendment to an order.

SEC. 555. NATIONAL KIWIFRUIT BOARD.

    (a) Membership.--An order issued by the Secretary under 
section 554 shall provide for the establishment of a National 
Kiwifruit Board that consists of the following 11 members:
            (1) 6 members who are producers (or representatives 
        of producers) and who are not exempt from an assessment 
        under section 556(b).
            (2) 4 members who are importers (or representatives 
        of importers) and who are not exempt from an assessment 
        under section 556(b) or are exporters (or 
        representatives of exporters).
            (3) 1 member appointed from the general public.
    (b) Adjustment of Membership.--
            (1) In general.--Subject to the 11-member limit and 
        to paragraph (2), the Secretary may adjust membership 
        on the Board to accommodate changes in production and 
        import levels of kiwifruit.
            (2) Number of producer members.--Producers shall 
        comprise not less than 51 percent of the membership of 
        the Board.
    (c) Appointment and Nomination.--
            (1) Appointment.--The Secretary shall appoint the 
        members of the Board from nominations submitted in 
        accordance with this subsection.
            (2) Producers.--The members referred to in 
        subsection (a)(1) shall be appointed from individuals 
        nominated by producers.
            (3) Importers and exporters.--The members referred 
        to in subsection (a)(2) shall be appointed from 
        individuals nominated by importers or exporters.
            (4) Public representative.--The public 
        representative shall be appointed from nominations 
        submitted by other members of the Board.
            (5) Failure to nominate.--If producers, importers, 
        and exporters fail to nominate individuals for 
        appointment, the Secretary may appoint members and 
        alternates on a basis provided for in the order. If the 
        Board fails to nominate a public representative, the 
        member may be appointed by the Secretary without a 
        nomination.
    (d) Alternates.--The Secretary shall appoint an alternate 
for each member of the Board. An alternate shall--
            (1) be appointed in the same manner as the member 
        for whom the individual is an alternate; and
            (2) serve on the Board if the member is absent from 
        a meeting or is disqualified under subsection (f).
    (e) Terms.--A member of the Board shall be appointed for a 
term of 3 years. No member may serve more than 2 consecutive 3-
year terms, except that of the members first appointed--
            (1) 5 members shall be appointed for a term of 2 
        years; and
            (2) 6 members shall be appointed for a term of 3 
        years.
    (f) Disqualification.--If a member or alternate of the 
Board who was appointed as a producer, importer, exporter, or 
public representative member ceases to belong to the group for 
which the member was appointed, the member or alternate shall 
be disqualified from serving on the Board.
    (g) Compensation.--A member or alternate of the Board shall 
serve without pay.
    (h) General Powers and Duties.--The Board shall--
            (1) administer an order issued by the Secretary 
        under section 554, and an amendment to the order, in 
        accordance with the order and amendment and this 
        subtitle;
            (2) prescribe rules and regulations to carry out 
        the order;
            (3) meet, organize, and select from among members 
        of the Board a chairperson, other officers, and 
        committees and subcommittees, as the Board determines 
        appropriate;
            (4) receive, investigate, and report to the 
        Secretary accounts of violations of the order;
            (5) make recommendations to the Secretary with 
        respect to an amendment that should be made to the 
        order; and
            (6) employ or contract with a manager and staff to 
        assist in administering the order, except that, to 
        reduce administrative costs and increase efficiency, 
        the Board shall seek, to the extent practicable, to 
        employ or contract with personnel who are already 
        associated with organizations involved in promoting 
        kiwifruit that are chartered by a State, the District 
        of Columbia, or the Commonwealth of Puerto Rico.

SEC. 556. REQUIRED TERMS IN ORDER.

    (a) Budgets and Plans.--
            (1) In general.--An order issued under section 554 
        shall provide for periodic budgets and plans in 
        accordance with this subsection.
            (2) Budgets.--The Board shall prepare and submit to 
        the Secretary a budget prior to the beginning of the 
        fiscal year of the anticipated expenses and 
        disbursements of the Board in the administration of the 
        order, including probable costs of research, promotion, 
        and consumer information. A budget shall become 
        effective on a \2/3\-vote of a quorum of the Board and 
        approval by the Secretary.
            (3) Plans.--Each budget shall include a plan for 
        research, promotion, and consumer information regarding 
        kiwifruit. A plan under this paragraph shall become 
        effective on approval by the Secretary. The Board may 
        enter into contracts and agreements, on approval by the 
        Secretary, for--
                    (A) the development and carrying out of the 
                plan; and
                    (B) the payment of the cost of the plan, 
                with funds collected pursuant to this subtitle.
    (b) Assessments.--
            (1) In general.--The order shall provide for the 
        imposition and collection of assessments with regard to 
        the production and importation of kiwifruit in 
        accordance with this subsection.
            (2) Rate.--The assessment rate shall be the rate 
        that is recommended by a \2/3\-vote of a quorum of the 
        Board and approved by the Secretary, except that the 
        rate shall not exceed $0.10 per 7-pound tray of 
        kiwifruit or an equivalent rate.
            (3) Collection by first handlers.--Except as 
        provided in paragraph (5), the first handler of 
        kiwifruit shall--
                    (A) be responsible for the collection from 
                the producer, and payment to the Board, of 
                assessments required under this subsection; and
                    (B) maintain a separate record of the 
                kiwifruit of each producer whose kiwifruit are 
                so handled, including the kiwifruit owned by 
                the handler.
            (4) Importers.--The assessment on imported 
        kiwifruit shall be paid by the importer to the United 
        States Customs Service at the time of entry into the 
        United States and shall be remitted to the Board.
            (5) Exemption from assessment.--The following 
        persons or activities are exempt from an assessment 
        under this subsection:
                    (A) A producer who produces less than 500 
                pounds of kiwifruit per year.
                    (B) An importer who imports less than 
                10,000 pounds of kiwifruit per year.
                    (C) A sale of kiwifruit made directly from 
                the producer to a consumer for a purpose other 
                than resale.
                    (D) The production or importation of 
                kiwifruit for processing.
            (6) Claim of exemption.--To claim an exemption 
        under paragraph (5) for a particular year, a person 
        shall--
                    (A) submit an application to the Board 
                stating the basis for the exemption and 
                certifying that the quantity of kiwifruit 
                produced, imported, or sold by the person will 
                not exceed any poundage limitation required for 
                the exemption in the year; or
                    (B) be on a list of approved processors 
                developed by the Board.
    (c) Use of Assessments.--
            (1) Authorized uses.--The order shall provide that 
        funds paid to the Board as assessments under subsection 
        (b) may be used by the Board--
                    (A) to pay for research, promotion, and 
                consumer information described in the budget of 
                the Board under subsection (a) and for other 
                expenses incurred by the Board in the 
                administration of an order;
                    (B) to pay such other expenses for the 
                administration, maintenance, and functioning of 
                the Board (including any enforcement efforts 
                for the collection of assessments) as may be 
                authorized by the Secretary, including interest 
                and penalties for late payments; and
                    (C) to fund a reserve established under 
                section 557(d).
            (2) Required uses.--The order shall provide that 
        funds paid to the Board as assessments under subsection 
        (b) shall be used by the Board--
                    (A) to pay the expenses incurred by the 
                Secretary, including salaries and expenses of 
                Federal Government employees, in implementing 
                and administering the order; and
                    (B) to reimburse the Secretary for any 
                expenses incurred by the Secretary in 
                conducting referenda under this subtitle.
            (3) Limitation on use of assessments.--Except for 
        the first year of operation of the Board, expenses for 
        the administration, maintenance, and functioning of the 
        Board may not exceed 30 percent of the budget for a 
        year.
    (d) False Claims.--The order shall provide that any 
promotion funded with assessments collected under subsection 
(b) may not make--
            (1) any false claims on behalf of kiwifruit; and
            (2) any false statements with respect to the 
        attributes or use of any product that competes with 
        kiwifruit for sale in commerce.
    (e) Prohibition on Use of Funds.--The order shall provide 
that funds collected by the Board under this subtitle through 
assessments may not, in any manner, be used for the purpose of 
influencing legislation or governmental policy or action, 
except for making recommendations to the Secretary as provided 
for under this subtitle.
    (f) Books, Records, and Reports.--
            (1) Board.--The order shall require the Board--
                    (A) to maintain books and records with 
                respect to the receipt and disbursement of 
                funds received by the Board;
                    (B) to submit to the Secretary from time to 
                time such reports as the Secretary may require 
                for appropriate accounting; and
                    (C) to submit to the Secretary at the end 
                of each fiscal year a complete audit report by 
                an independent auditor regarding the activities 
                of the Board during the fiscal year.
            (2) Others.--To make information and data available 
        to the Board and the Secretary that is appropriate or 
        necessary for the effectuation, administration, or 
        enforcement of this subtitle (or any order or 
        regulation issued under this subtitle), the order shall 
        require handlers and importers who are responsible for 
        the collection, payment, or remittance of assessments 
        under subsection (b)--
                    (A) to maintain and make available for 
                inspection by the employees and agents of the 
                Board and the Secretary such books and records 
                as may be required by the order; and
                    (B) to file, at the times and in the manner 
                and content prescribed by the order, reports 
                regarding the collection, payment, or 
                remittance of the assessments.
    (g) Confidentiality.--
            (1) In general.--The order shall require that all 
        information obtained pursuant to subsection (f)(2) be 
        kept confidential by all officers, employees, and 
        agents of the Department of Agriculture and of the 
        Board. Only such information as the Secretary considers 
        relevant shall be disclosed to the public and only in a 
        suit or administrative hearing, brought at the request 
        of the Secretary or to which the Secretary or any 
        officer of the United States is a party, involving the 
        order with respect to which the information was 
        furnished or acquired.
            (2) Limitations.--Nothing in this subsection 
        prohibits--
                    (A) the issuance of general statements 
                based on the reports of a number of handlers 
                and importers subject to an order, if the 
                statements do not identify the information 
                furnished by any person; or
                    (B) the publication, by direction of the 
                Secretary, of the name of any person violating 
                an order issued under section 554(a), together 
                with a statement of the particular provisions 
                of the order violated by the person.
            (3) Penalty.--Any person who willfully violates 
        this subsection, on conviction, shall be subject to a 
        fine of not more than $1,000 or to imprisonment for not 
        more than 1 year, or both, and, if the person is a 
        member, officer, or agent of the board or an employee 
        of the Department of Agriculture, shall be removed from 
        office.
    (h) Withholding of Information.--Nothing in this subtitle 
authorizes the withholding of information from Congress.

SEC. 557. PERMISSIVE TERMS IN ORDER.

    (a) Permissive Terms.--On the recommendation of the Board 
and with the approval of the Secretary, an order issued under 
section 554 may include the terms and conditions specified in 
this section and such additional terms and conditions as the 
Secretary considers necessary to effectuate the other 
provisions of the order and are incidental to, and not 
inconsistent with, this subtitle.
    (b) Alternative Payment and Reporting Schedules.--The order 
may authorize the Board to designate different handler payment 
and reporting schedules to recognize differences in marketing 
practices and procedures.
    (c) Working Groups.--The order may authorize the Board to 
convene working groups drawn from producers, handlers, 
importers, exporters, or the general public and utilize the 
expertise of the groups to assist in the development of 
research and marketing programs for kiwifruit.
    (d) Reserve Funds.--The order may authorize the Board to 
accumulate reserve funds from assessments collected pursuant to 
section 556(b) to permit an effective and continuous 
coordinated program of research, promotion, and consumer 
information in years in which production and assessment income 
may be reduced, except that any reserve fund may not exceed the 
amount budgeted for operation of this subtitle for 1 year.
    (e) Promotion Activities Outside United States.--The order 
may authorize the Board to use, with the approval of the 
Secretary, funds collected under section 556(b) and funds from 
other sources for the development and expansion of sales in 
foreign markets of kiwifruit produced in the United States.

SEC. 558. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may 
        file with the Secretary a petition--
                    (A) stating that the order, a provision of 
                the order, or an obligation imposed in 
                connection with the order is not in accordance 
                with law; and
                    (B) requesting a modification of the order 
                or an exemption from the order.
            (2) Hearings.--A person submitting a petition under 
        paragraph (1) shall be given an opportunity for a 
        hearing on the petition, in accordance with regulations 
        issued by the Secretary.
            (3) Ruling.--After the hearing, the Secretary shall 
        issue a ruling on the petition which shall be final if 
        the petition is in accordance with law.
            (4) Limitation on petition.--Any petition filed 
        under this subtitle challenging an order, or any 
        obligation imposed in connection with an order, shall 
        be filed not later than 2 years after the effective 
        date of the order or imposition of the obligation.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which the person 
        who is a petitioner under subsection (a) resides or 
        carries on business is vested with jurisdiction to 
        review the 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 a ruling by the 
        Secretary under subsection (a).
            (2) Process.--Service of process in the proceedings 
        shall be conducted in accordance with the Federal Rules 
        of Civil Procedure.
            (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 shall 
                determine to be in accordance with law; or
                    (B) to take such further action as, in the 
                opinion of the court, the law requires.
            (4) Enforcement.--The pendency of a proceeding 
        instituted pursuant to subsection (a) shall not impede, 
        hinder, or delay the Attorney General or the Secretary 
        from obtaining relief pursuant to section 559.

SEC. 559. ENFORCEMENT.

    (a) Jurisdiction.--A district court of the United States 
shall have jurisdiction specifically to enforce, and to prevent 
and restrain any person from violating, any order or regulation 
made or issued by the Secretary 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 is not required to refer to the Attorney General a 
violation of this subtitle, or any order or regulation issued 
under this subtitle, if the Secretary believes that the 
administration and enforcement of this subtitle would be 
adequately served by administrative action under subsection (c) 
or suitable written notice or warning to the person committing 
the violation.
    (c) Civil Penalties and Orders.--
            (1) Civil penalties.--Any person who willfully 
        violates any provision of any order or regulation 
        issued by the Secretary under this subtitle, or who 
        fails or refuses to pay, collect, or remit any 
        assessment or fee duly required of the person under the 
        order or regulation, may be assessed a civil penalty by 
        the Secretary of not less than $500 nor more than 
        $5,000 for each such violation. Each violation shall be 
        a separate offense.
            (2) Cease-and-desist orders.--In addition to or in 
        lieu of the civil penalty, the Secretary may issue an 
        order requiring the person to cease and desist from 
        continuing the violation.
            (3) Notice and hearing.--No order assessing a civil 
        penalty or cease-and-desist order may be issued by the 
        Secretary under this subsection unless the Secretary 
        gives the person against whom the order is issued 
        notice and opportunity for a hearing on the record 
        before the Secretary with respect to the violation.
            (4) Finality.--The order of the Secretary assessing 
        a penalty or imposing a cease-and-desist order shall be 
        final and conclusive unless the person against whom the 
        order is issued files an appeal of the order in the 
        appropriate district court of the United States, in 
        accordance with subsection (d).
    (d) Review by United States District Court.--
            (1) Commencement of action.--Any person against 
        whom a violation is found and a civil penalty assessed 
        or cease-and-desist order issued under subsection (c) 
        may obtain review of the penalty or cease-and-desist 
        order in the district court of the United States for 
        the district in which the person resides or carries on 
        business, or the United States District Court for the 
        District of Columbia, by--
                    (A) filing a notice of appeal in the court 
                not later than 30 days after the date on which 
                the penalty is assessed or cease-and-desist 
                order issued; and
                    (B) simultaneously sending a copy of the 
                notice by certified mail to the Secretary.
            (2) Record.--The Secretary shall promptly file in 
        the court a certified copy of the record on which the 
        Secretary found that the person committed the 
        violation.
            (3) Standard of review.--A finding of the Secretary 
        shall be set aside only if the finding is found to be 
        unsupported by substantial evidence.
    (e) Failure To Obey Cease-and-Desist Orders.--Any person 
who fails to obey a cease-and-desist order issued by the 
Secretary after the cease-and-desist order has become final and 
unappealable, or after the appropriate United States district 
court has entered a final judgment in favor of the Secretary, 
shall be subject to a civil penalty assessed by the Secretary, 
after opportunity for a hearing and for judicial review under 
the procedures specified in subsections(c) and (d), of not more 
than $500 for each offense. Each day during which the failure continues 
shall be considered a separate violation of the cease-and-desist order.
    (f) Failure To Pay Penalties.--If a person fails to pay an 
assessment of a civil penalty after the assessment has become a 
final and unappealable order issued by the Secretary, or after 
the appropriate United States district court has entered final 
judgment in favor of 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. In 
an action for recovery, the validity and appropriateness of the 
final order imposing the civil penalty shall not be subject to 
review.

SEC. 560. INVESTIGATIONS AND POWER TO SUBPOENA.

    (a) In General.--The Secretary may make such investigations 
as the Secretary considers necessary--
            (1) for the effective carrying out of the 
        responsibilities of the Secretary under this subtitle; 
        or
            (2) to determine whether a person subject to this 
        subtitle has engaged or is engaging in any act that 
        constitutes a violation of this subtitle, or any order, 
        rule, or regulation issued under this subtitle.
    (b) Power to Subpoena.--
            (1) Investigations.--For the purpose of an 
        investigation made under subsection (a), the Secretary 
        may administer oaths and affirmations and may issue 
        subpoenas to require the production of any records that 
        are relevant to the inquiry. The production of any such 
        records may be required from any place in the United 
        States.
            (2) Administrative hearings.--For the purpose of an 
        administrative hearing held under section 558 or 559, 
        the presiding officer is authorized to administer oaths 
        and affirmations, subpoena witnesses, compel the 
        attendance of witnesses, take evidence, and require the 
        production of any records that are relevant to the 
        inquiry. The attendance of witnesses and the production 
        of any such records may be required from any place in 
        the United States.
    (c) Aid of Courts.--In the case of contumacy by, or refusal 
to obey a subpoena 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, to enforce a 
subpoena issued by the Secretary under subsection (b). The 
court may issue an order requiring the person to comply with 
the subpoena.
    (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 such case may be served in the 
judicial district in which the person resides or carries on 
business or wherever the person may be found.
    (f) Hearing Site.--The site of any hearing held under 
section 558 or 559 shall be in the judicial district where the 
person affected by the hearing resides or has a principal place 
of business.

SEC. 561. REFERENDA.

    (a) Initial Referendum.--
            (1) Referendum required.--During the 60-day period 
        immediately preceding the proposed effective date of an 
        order issued under section 554, the Secretary shall 
        conduct a referendum among kiwifruit producers and 
        importers who will be subject to assessments under the 
        order, to ascertain whether producers and importers 
        approve the implementation of the order.
            (2) Approval of order.--The order shall become 
        effective, as provided in section 554, if the Secretary 
        determines that--
                    (A) the order has been approved by a 
                majority of the producers and importers voting 
                in the referendum; and
                    (B) the producers and importers favoring 
                approval produce and import more than 50 
                percent of the total volume of kiwifruit 
                produced and imported by persons voting in the 
                referendum.
    (b) Subsequent Referenda.--The Secretary may periodically 
conduct a referendum to determine if kiwifruit producers and 
importers favor the continuation, termination, or suspension of 
any order issued under section 554 that is in effect at the 
time of the referendum.
    (c) Required Referenda.--The Secretary shall hold a 
referendum under subsection (b)--
            (1) at the end of the 6-year period beginning on 
        the effective date of the order and at the end of each 
        subsequent 6-year period;
            (2) at the request of the Board; or
            (3) if not less than 30 percent of the kiwifruit 
        producers and importers subject to assessments under 
        the order submit a petition requesting the referendum.
    (d) Vote.--On completion of a referendum under subsection 
(b), the Secretary shall suspend or terminate the order that 
was subject to the referendum at the end of the marketing year 
if--
            (1) the suspension or termination of the order is 
        favored by not less than a majority of the producers 
        and importers voting in the referendum; and
            (2) the producers and importers produce and import 
        more than 50 percent of the total volume of kiwifruit 
        produced and imported by persons voting in the 
        referendum.
    (e) Confidentiality.--The ballots and other information or 
reports that reveal, or tend to reveal, the vote of any person 
under this subtitle and the voting list shall be held strictly 
confidential and shall not be disclosed.

SEC. 562. SUSPENSION OR TERMINATION.

    (a) In General.--If the Secretary finds that an order 
issued under section 554, or a provision of the order, 
obstructs or does not tend to effectuate the purposes of this 
subtitle, the Secretary shall suspend or terminate the 
operation of the order or provision.
    (b) Limitation.--The suspension or termination of any 
order, or any provision of an order, shall not be considered an 
order under this subtitle.

SEC. 563. REGULATIONS.

    The Secretary may issue such regulations as are necessary 
to carry out this subtitle.

SEC. 564. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for each fiscal 
year such sums as are necessary to carry out this subtitle.

                          Subtitle E--Popcorn

SEC. 571. SHORT TITLE.

    This subtitle may be cited as the ``Popcorn Promotion, 
Research, and Consumer Information Act''.

SEC. 572. FINDINGS AND DECLARATION OF POLICY.

    (a) Findings.--Congress finds that--
            (1) popcorn is an important food that is a valuable 
        part of the human diet;
            (2) the production and processing of popcorn plays 
        a significant role in the economy of the United States 
        in that popcorn is processed by several popcorn 
        processors, distributed through wholesale and retail 
        outlets, and consumed by millions of people throughout 
        the United States and foreign countries;
            (3) popcorn must be of high quality, readily 
        available, handled properly, and marketed efficiently 
        to ensure that the benefits of popcorn are available to 
        the people of the United States;
            (4) the maintenance and expansion of existing 
        markets and uses and the development of new markets and 
        uses for popcorn are vital to the welfare of processors 
        and persons concerned with marketing, using, and 
        producing popcorn for the market, as well as to the 
        agricultural economy of the United States;
            (5) the cooperative development, financing, and 
        implementation of a coordinated program of popcorn 
        promotion, research, consumer information, and industry 
        information is necessary to maintain and expand markets 
        for popcorn; and
            (6) popcorn moves in interstate and foreign 
        commerce, and popcorn that does not move in those 
        channels of commerce directly burdens or affects 
        interstate commerce in popcorn.
    (b) Policy.--It is the policy of Congress that it is in the 
public interest to authorize the establishment, through the 
exercise of the powers provided in this subtitle, of an orderly 
procedure for developing, financing (through adequate 
assessments on unpopped popcorn processed domestically), and 
carrying out an effective, continuous, and coordinated program 
of promotion, research, consumer information, and industry 
information designed to--
            (1) strengthen the position of the popcorn industry 
        in the marketplace; and
            (2) maintain and expand domestic and foreign 
        markets and uses for popcorn.
    (c) Purposes.--The purposes of this subtitle are to--
            (1) maintain and expand the markets for all popcorn 
        products in a manner that--
                    (A) is not designed to maintain or expand 
                any individual share of a producer or processor 
                of the market;
                    (B) does not compete with or replace 
                individual advertising or promotion efforts 
                designed to promote individual brand name or 
                trade name popcorn products; and
                    (C) authorizes and funds programs that 
                result in government speech promoting 
                government objectives; and
            (2) establish a nationally coordinated program for 
        popcorn promotion, research, consumer information, and 
        industry information.
    (d) Statutory Construction.--This subtitle treats 
processors equitably. Nothing in this subtitle--
            (1) provides for the imposition of a trade barrier 
        to the entry into the United States of imported popcorn 
        for the domestic market; or
            (2) provides for the control of production or 
        otherwise limits the right of any individual processor 
        to produce popcorn.

SEC. 573. DEFINITIONS.

    In this subtitle (unless the context otherwise requires):
            (1) Board.--The term ``Board'' means the Popcorn 
        Board established under section 575(b).
            (2) Commerce.--The term ``commerce'' means 
        interstate, foreign, or intrastate commerce.
            (3) Consumer information.--The term ``consumer 
        information'' means information and programs that will 
        assist consumers and other persons in making 
        evaluations and decisions regarding the purchase, 
        preparation, and use of popcorn.
            (4) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (5) Industry information.--The term ``industry 
        information'' means information or a program that will 
        lead to the development of--
                    (A) new markets, new marketing strategies, 
                or increased efficiency for the popcorn 
                industry; or
                    (B) activities to enhance the image of the 
                popcorn industry.
            (6) Marketing.--The term ``marketing'' means the 
        sale or other disposition of unpopped popcorn for human 
        consumption in a channel of commerce, but does not 
        include a sale or disposition to or between processors.
            (7) Order.--The term ``order'' means an order 
        issued under section 574.
            (8) Person.--The term ``person'' means an 
        individual, group of individuals, partnership, 
        corporation, association, or cooperative, or any other 
        legal entity.
            (9) Popcorn.--The term ``popcorn'' means unpopped 
        popcorn (Zea Mays L) that is--
                    (A) commercially grown;
                    (B) processed in the United States by 
                shelling, cleaning, or drying; and
                    (C) introduced into a channel of commerce.
            (10) Process.--The term ``process'' means to shell, 
        clean, dry, and prepare popcorn for the market, but 
        does not include packaging popcorn for the market 
        without also engaging in another activity described in 
        this paragraph.
            (11) Processor.--The term ``processor'' means a 
        person engaged in the preparation of unpopped popcorn 
        for the market who owns or shares the ownership and 
        risk of loss of the popcorn and who processes and 
        distributes over 4,000,000 pounds of popcorn in the 
        market per year.
            (12) Promotion.--The term ``promotion'' means an 
        action, including paid advertising, to enhance the 
        image or desirability of popcorn.
            (13) Research.--The term ``research'' means any 
        type of study to advance the image, desirability, 
        marketability, production, product development, 
        quality, or nutritional value of popcorn.
            (14) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (15) State.--The term ``State'' means each of the 
        50 States and the District of Columbia.
            (16) United states.--The term ``United States'' 
        means all of the States.

SEC. 574. ISSUANCE OF ORDERS.

    (a) In General.--To effectuate the policy described in 
section 572(b), the Secretary, subject to subsection (b), shall 
issue 1 or more orders applicable to processors. An order shall 
be applicable to all popcorn production and marketing areas in 
the United States. Not more than 1 order shall be in effect 
under this subtitle at any 1 time.
    (b) Procedure.--
            (1) Proposal or request for issuance.--The 
        Secretary may propose the issuance of an order, or an 
        association of processors or any other person that 
        would be affected by an order may request the issuance 
        of, and submit a proposal for, an order.
            (2) Notice and comment concerning proposed order.--
        Not later than 60 days after the receipt of a request 
        and proposal for an order under paragraph (1), or at 
        such time as the Secretary determines to propose an 
        order, the Secretary shall publish a proposed order and 
        give due notice and opportunity for public comment on 
        the proposed order.
            (3) Issuance of order.--After notice and 
        opportunity for public comment under paragraph (2), the 
        Secretary shall issue an order, taking into 
        consideration the comments received and including in 
        the order such provisions as are necessary to ensure 
        that the order conforms to this subtitle. The order 
        shall be issued and become effective not later than 150 
        days after the date of publication of the proposed 
        order.
    (c) Amendments.--The Secretary, as appropriate, may amend 
an order. The provisions of this subtitle applicable to an 
order shall be applicable to any amendment to an order, except 
that an amendment to an order may not require a referendum to 
become effective.

SEC. 575. REQUIRED TERMS IN ORDERS.

    (a) In General.--An order shall contain the terms and 
conditions specified in this section.
    (b) Establishment and Membership of Popcorn Board.--
            (1) In general.--The order shall provide for the 
        establishment of, and appointment of members to, a 
        Popcorn Board that shall consist of not fewer than 4 
        members and not more than 9 members.
            (2) Nominations.--The members of the Board shall be 
        processors appointed by the Secretary from nominations 
        submitted by processors in a manner authorized by the 
        Secretary, subject to paragraph (3). Not more than 1 
        member may be appointed to the Board from nominations 
        submitted by any 1 processor.
            (3) Geographical diversity.--In making 
        appointments, the Secretary shall take into account, to 
        the extent practicable, the geographical distribution 
        of popcorn production throughout the United States.
            (4) Terms.--The term of appointment of each member 
        of the Board shall be 3 years, except that the members 
        appointed to the initial Board shall serve, 
        proportionately, for terms of 2, 3, and 4 years, as 
        determined by the Secretary.
            (5) Compensation and expenses.--A member of the 
        Board shall serve without compensation, but shall be 
        reimbursed for the expenses of the member incurred in 
        the performance of duties for the Board.
    (c) Powers and Duties of Board.--The order shall define the 
powers and duties of the Board, which shall include the power 
and duty--
            (1) to administer the order in accordance with the 
        terms and provisions of the order;
            (2) to issue regulations to effectuate the terms 
        and provisions of the order;
            (3) to appoint members of the Board to serve on an 
        executive committee;
            (4) to propose, receive, evaluate, and approve 
        budgets, plans, and projects of promotion, research, 
        consumer information, and industry information, and to 
        contract with appropriate persons to implement the 
        plans or projects;
            (5) to accept and receive voluntary contributions, 
        gifts, and market promotion or similar funds;
            (6) to invest, pending disbursement under a plan or 
        project, funds collected through assessments authorized 
        under subsection (f), only in--
                    (A) obligations of the United States or an 
                agency of the United States;
                    (B) general obligations of a State or a 
                political subdivision of a State;
                    (C) an interest-bearing account or 
                certificate of deposit of a bank that is a 
                member of the Federal Reserve System; or
                    (D) obligations fully guaranteed as to 
                principal and interest by the United States;
            (7) to receive, investigate, and report to the 
        Secretary complaints of violations of the order; and
            (8) to recommend to the Secretary amendments to the 
        order.
    (d) Plans and Budgets.--
            (1) In general.--The order shall provide that the 
        Board shall submit to the Secretary for approval any 
        plan or project of promotion, research, consumer 
        information, or industry information.
            (2) Budgets.--The order shall require the Board to 
        submit to the Secretary for approval budgets on a 
        fiscal year basis of the anticipated expenses and 
        disbursements of the Board in the implementation of the 
        order, including projected costs of plans and projects 
        of promotion, research, consumer information, and 
        industry information.
    (e) Contracts and Agreements.--
            (1) In general.--The order shall provide that the 
        Board may enter into contracts or agreements for the 
        implementation and carrying out of plans or projects of 
        promotion, research, consumer information, or industry 
        information, including contracts with a processor 
        organization, and for the payment of the cost of the 
        plans or projects with funds collected by the Board 
        under the order.
            (2) Requirements.--A contract or agreement under 
        paragraph (1) shall provide that--
                    (A) the contracting party shall develop and 
                submit to the Board a plan or project, together 
                with a budget that shows the estimated costs to 
                be incurred for the plan or project;
                    (B) the plan or project shall become 
                effective on the approval of the Secretary; and
                    (C) the contracting party shall keep 
                accurate records of each transaction of the 
                party, account for funds received and expended, 
                make periodic reports to the Board of 
                activities conducted, and make such other 
                reports as the Board or the Secretary may 
                require.
            (3) Processor organizations.--The order shall 
        provide that the Board may contract with processor 
        organizations for any services required in addition to 
        the services described in paragraph (1). The contract 
        shall include provisions comparable to the provisions 
        required by paragraph (2).
    (f) Assessments.--
            (1) Processors.--The order shall provide that each 
        processor marketing popcorn in the United States or for 
        export shall, in the manner prescribed in the order, 
        pay assessments and remit the assessments to the Board.
            (2) Direct marketers.--A processor that markets 
        popcorn produced by the processor directly to consumers 
        shall pay and remit the assessments on the popcorn 
        directly to the Board in the manner prescribed in the 
        order.
            (3) Rate.--
                    (A) In general.--The rate of assessment 
                prescribed in the order shall be a rate 
                established by the Board but not more than $.08 
                per hundredweight of popcorn.
                    (B) Adjustment of rate.--The order shall 
                provide that the Board, with the approval of 
                the Secretary, may raise or lower the rate of 
                assessment annually up to a maximum of $.08 per 
                hundredweight of popcorn.
            (4) Use of assessments.--
                    (A) In general.--Subject to subparagraphs 
                (B) and (C) and subsection (c)(5), the order 
                shall provide that the assessments collected 
                shall be used by the Board--
                            (i) to pay expenses incurred in 
                        implementing and administering the 
                        order, with provision for a reasonable 
                        reserve; and
                            (ii) to cover such administrative 
                        costs as are incurred by the Secretary, 
                        except that the administrative costs 
                        incurred by the Secretary (other than 
                        any legal expenses incurred to defend 
                        and enforce the order) that may be 
                        reimbursed by the Board may not exceed 
                        15 percent of the projected annual 
                        revenues of the Board.
                    (B) Expenditures based on source of 
                assessments.--In implementing plans and 
                projects of promotion, research, consumer 
                information, and industry information, the 
                Board shall expend funds on--
                            (i) plans and projects for popcorn 
                        marketed in the United States or Canada 
                        in proportion to the amount of 
                        assessments collected on domestically 
                        marketed popcorn; and
                            (ii) plans and projects for 
                        exported popcorn in proportion to the 
                        amount of assessments collected on 
                        exported popcorn.
                    (C) Notification.--If the administrative 
                costs incurred by the Secretary that are 
                reimbursed by the Board exceed 10 percent of 
                the projected annual revenues of the Board, the 
                Secretary shall notify as soon as practicable 
                the Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate.
    (g) Prohibition on Use of Funds.--The order shall prohibit 
any funds collected by the Board under the order from being 
used to influence government action or policy, other than the 
use of funds by the Board for the development and 
recommendation to the Secretary of amendments to the order.
    (h) Books and Records of the Board.--The order shall 
require the Board to--
            (1) maintain such books and records (which shall be 
        available to the Secretary for inspection and audit) as 
        the Secretary may prescribe;
            (2) prepare and submit to the Secretary, from time 
        to time, such reports as the Secretary may prescribe; 
        and
            (3) account for the receipt and disbursement of all 
        funds entrusted to the Board.
    (i) Books and Records of Processors.--
            (1) Maintenance and reporting of information.--The 
        order shall require that each processor of popcorn for 
        the market shall--
                    (A) maintain, and make available for 
                inspection, such books and records as are 
                required by the order; and
                    (B) file reports at such time, in such 
                manner, and having such content as is 
                prescribed in the order.
            (2) Use of information.--The Secretary shall 
        authorize the use of information regarding processors 
        that may be accumulated under a law or regulation other 
        than this subtitle or a regulation issued under this 
        subtitle. The information shall be made available to 
        the Secretary as appropriate for the administration or 
        enforcement of this subtitle, the order, or any 
        regulation issued under this subtitle.
            (3) Confidentiality.--
                    (A) In general.--Subject to subparagraphs 
                (B), (C), and (D), all information obtained by 
                the Secretary under paragraphs (1) and (2) 
                shall be kept confidential by all officers, 
                employees, and agents of the Board and the 
                Department.
                    (B) Disclosure by secretary.--Information 
                referred to in subparagraph (A) may be 
                disclosed if--
                            (i) the Secretary considers the 
                        information relevant;
                            (ii) the information is revealed in 
                        a suit or administrative hearing 
                        brought at the request of the 
                        Secretary, or to which the Secretary or 
                        any officer of the United States is a 
                        party; and
                            (iii) the information relates to 
                        the order.
                    (C) Disclosure to other agency of federal 
                government.--
                            (i) In general.--No information 
                        obtained under the authority of this 
                        subtitle may be made available to 
                        another agency or officer of the 
                        Federal Government for any purpose 
                        other than the implementation of this 
                        subtitle and any investigatory or 
                        enforcement activity necessary for the 
                        implementation of this subtitle.
                            (ii) Penalty.--A person who 
                        knowingly violates this subparagraph 
                        shall, on conviction, be subject to a 
                        fine of not more than $1,000 or to 
                        imprisonment for not more than 1 year, 
                        or both, and if an officer, employee, 
                        or agent of the Board or the 
                        Department, shall be removed from 
                        office or terminated from employment, 
                        as applicable.
                    (D) General statements.--Nothing in this 
                paragraph prohibits--
                            (i) the issuance of general 
                        statements based on the reports of a 
                        number of persons subject to an order 
                        or statistical data collected from the 
                        reports, if the statements do not 
                        identify the information provided by 
                        any person; or
                            (ii) the publication, by direction 
                        of the Secretary, of the name of a 
                        person violating the order, together 
                        with a statement of the particular 
                        provisions of the order violated by the 
                        person.
    (j) Other Terms and Conditions.--The order shall contain 
such other terms and conditions, consistent with this subtitle, 
as are necessary to effectuate this subtitle, including 
regulations relating to the assessment of late payment charges.

SEC. 576. REFERENDA.

    (a) Initial Referendum.--
            (1) In general.--Within the 60-day period 
        immediately preceding the effective date of an order, 
        as provided in section 574(b)(3), the Secretary shall 
        conduct a referendum among processors who, during a 
        representative period as determined by the Secretary, 
        have been engaged in processing, for the purpose of 
        ascertaining whether the order shall go into effect.
            (2) Approval of order.--The order shall become 
        effective, as provided in section 574(b), only if the 
        Secretary determines that the order has been approved 
        by not less than a majority of the processors voting in 
        the referendum and if the majority processed more than 
        50 percent of the popcorn certified as having been 
        processed, during the representative period, by the 
        processors voting.
    (b) Additional Referenda.--
            (1) In general.--Not earlier than 3 years after the 
        effective date of an order approved under subsection 
        (a), on the request of the Board or a representative 
        group of processors, as described in paragraph (2), the 
        Secretary may conduct additional referenda to determine 
        whether processors favor the suspension or termination 
        of the order.
            (2) Representative group of processors.--An 
        additional referendum on an order shall be conducted if 
        the referendum is requested by 30 percent or more of 
        the number of processors who, during a representative 
        period as determined by the Secretary, have been 
        engaged in processing.
            (3) Disapproval of order.--If the Secretary 
        determines, in a referendum conducted under paragraph 
        (1), that suspension or termination of the order is 
        favored by at least \2/3\ of the processors voting in 
        the referendum, the Secretary shall--
                    (A) suspend or terminate, as appropriate, 
                collection of assessments under the order not 
                later than 180 days after the date of 
                determination; and
                    (B) suspend or terminate the order, as 
                appropriate, in an orderly manner as soon as 
                practicable after the date of determination.
    (c) Costs of Referendum.--The Secretary shall be reimbursed 
from assessments collected by the Board for any expenses 
incurred by the Secretary in connection with the conduct of any 
referendum under this section.
    (d) Method of Conducting Referendum.--Subject to this 
section, a referendum conducted under this section shall be 
conducted in such manner as is determined by the Secretary.
    (e) Confidentiality of Ballots and Other Information.--
            (1) In general.--The ballots and other information 
        or reports that reveal or tend to reveal the vote of 
        any processor, or any business operation of a 
        processor, shall be considered to be strictly 
        confidential and shall not be disclosed.
            (2) Penalty for violations.--An officer or employee 
        of the Department who knowingly violates paragraph (1) 
        shall be subject to the penalties described in section 
        575(i)(3)(C)(ii).

SEC. 577. PETITION AND REVIEW.

    (a) Petition.--
            (1) In general.--A person subject to an order may 
        file with the Secretary a petition--
                    (A) stating that the order, a provision of 
                the order, or an obligation imposed in 
                connection with the order is not established in 
                accordance with law; and
                    (B) requesting a modification of the order 
                or obligation or an exemption from the order or 
                obligation.
            (2) Statute of limitations.--A petition under 
        paragraph (1) concerning an obligation may be filed not 
        later than 2 years after the date of imposition of the 
        obligation.
            (3) Hearings.--The petitioner shall be given the 
        opportunity for a hearing on a petition filed under 
        paragraph (1), in accordance with regulations issued by 
        the Secretary.
            (4) Ruling.--After a hearing under paragraph (3), 
        the Secretary shall issue a ruling on the petition that 
        is the subject of the hearing, which shall be final if 
        the ruling is in accordance with applicable law.
    (b) Review.--
            (1) Commencement of action.--The district court of 
        the United States for any district in which a person 
        who is a petitioner under subsection (a) resides or 
        carries on business shall have jurisdiction to review a 
        ruling on the petition, if the person files a complaint 
        not later than 20 days after the date of issuance of 
        the ruling under subsection (a)(4).
            (2) Process.--Service of process in a proceeding 
        under paragraph (1) may be made on the Secretary by 
        delivering a copy of the complaint to the Secretary.
            (3) Remands.--If the court determines, under 
        paragraph (1), that a ruling issued under subsection 
        (a)(4) is not in accordance with applicable law, the 
        court shall remand the matter to the Secretary with 
        directions--
                    (A) to make such ruling as the court shall 
                determine to be in accordance with law; or
                    (B) to take such further proceedings as, in 
                the opinion of the court, the law requires.
    (c) Enforcement.--The pendency of proceedings instituted 
under subsection (a) may not impede, hinder, or delay the 
Secretary or the Attorney General from taking action under 
section 578.

SEC. 578. ENFORCEMENT.

    (a) In General.--The Secretary may issue an enforcement 
order to restrain or prevent any person from violating an order 
or regulation issued under this subtitle and may assess a civil 
penalty of not more than $1,000 for each violation of the 
enforcement order, after an opportunity for an administrative 
hearing, if the Secretary determines that the administration 
and enforcement of the order and this subtitle would be 
adequately served by such a procedure.
    (b) Jurisdiction.--The district courts of the United States 
are vested with jurisdiction specifically to enforce, and to 
prevent and restrain any person from violating, an order or 
regulation issued under this subtitle.
    (c) Referral to Attorney General.--A civil action 
authorized to be brought under this section shall be referred 
to the Attorney General for appropriate action.

SEC. 579. 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; and
            (2) to determine whether any person subject to this 
        subtitle has engaged, or is about to engage, in an act 
        that constitutes or will constitute a violation of this 
        subtitle or of an order or regulation issued under this 
        subtitle.
    (b) Oaths, Affirmations, and Subpoenas.--For the purpose of 
an 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 that are relevant to the inquiry. The 
attendance of witnesses and the production of records may be 
required from any place in the United States.
    (c) Aid of Courts.--
            (1) Request.--In the case of contumacy by, or 
        refusal to obey a subpoena issued to, any person, the 
        Secretary may request 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 requiring the 
        attendance and testimony of the person and the 
        production of records.
            (2) Enforcement order of the court.--The court may 
        issue an enforcement order requiring the person to 
        appear before the Secretary to produce records or to 
        give testimony concerning the matter under 
        investigation.
            (3) Contempt.--A failure to obey an enforcement 
        order of the court under paragraph (2) may be punished 
        by the court as a contempt of the court.
            (4) Process.--Process in a case under this 
        subsection may be served in the judicial district in 
        which the person resides or carries on business or 
        wherever the person may be found.

SEC. 580. RELATION TO OTHER PROGRAMS.

    Nothing in this subtitle preempts or supersedes any other 
program relating to popcorn promotion organized and operated 
under the laws of the United States or any State.

SEC. 581. REGULATIONS.

    The Secretary may issue such regulations as are necessary 
to carry out this subtitle.

SEC. 582. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are 
necessary to carry out this subtitle. Amounts made available 
under this section or otherwise made available to the 
Department, and amounts made available under any other 
marketing or promotion order, may not be used to pay any 
administrative expense of the Board.

                       Subtitle F--Miscellaneous

SEC. 591. MAINTENANCE OF RECORDS FOR HONEY PROMOTION PROGRAM.

    Section 9(f) of the Honey Research, Promotion, and Consumer 
Information Act (7 U.S.C. 4608(f)) is amended by inserting 
``producers,'' after ``importers,''.

                            TITLE VI--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 601. LIMITATION ON DIRECT FARM OWNERSHIP LOANS.

    Section 302 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the 
        Secretary may make a direct loan under this subtitle 
        only to a farmer or rancher who has operated a farm or 
        ranch for not less than 3 years and--
                    ``(A) is a qualified beginning farmer or 
                rancher;
                    ``(B) has not received a previous direct 
                farm ownership loan made under this subtitle; 
                or
                    ``(C) has not received a direct farm 
                ownership loan under this subtitle more than 10 
                years before the date the new loan would be 
                made.
            ``(2) Youth loans.--The operation of an enterprise 
        by a youth under section 311(b) shall not be considered 
        the operation of a farm or ranch for purposes of 
        paragraph (1).
            ``(3) Transition rule.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) and (C), the Secretary may make a direct 
                loan under this subtitle to a farmer or rancher 
                who has a direct loan outstanding under this 
                subtitle on the date of enactment of this 
                paragraph.
                    ``(B) Less than 5 years.--If, as of the 
                date of enactment of this paragraph, a farmer 
                or rancher has had a direct loan outstanding 
                under this subtitle for less than 5 years, the 
                Secretary shall not make a loan to the farmer 
                or rancher under subparagraph (A) after the 
                date that is 10 years after the date of 
                enactment of this paragraph.
                    ``(C) 5 years or more.--If, as of the date 
                of enactment of this paragraph, a farmer or 
                rancher has had a direct loan outstanding under 
                this subtitle for 5 years or more, the 
                Secretary shall not make a loan to the farmer 
                or rancher under subparagraph (A) after the 
                date that is 5 years after the date of 
                enactment of this paragraph.''.

SEC. 602. PURPOSES OF LOANS.

    (a) In General.--Section 303 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1923) is amended to read as 
follows:

``SEC. 303. PURPOSES OF LOANS.

    ``(a) Allowed Purposes.--
            ``(1) Direct loans.--A farmer or rancher may use a 
        direct loan made under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or 
                ranch;
                    ``(B) making capital improvements to a farm 
                or ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or 
                ranch; or
                    ``(D) paying for activities to promote soil 
                and water conservation and protection described 
                in section 304 on a farm or ranch.
            ``(2) Guaranteed loans.--A farmer or rancher may 
        use a loan guaranteed under this subtitle only for--
                    ``(A) acquiring or enlarging a farm or 
                ranch;
                    ``(B) making capital improvements to a farm 
                or ranch;
                    ``(C) paying loan closing costs related to 
                acquiring, enlarging, or improving a farm or 
                ranch;
                    ``(D) paying for activities to promote soil 
                and water conservation and protection described 
                in section 304 on a farm or ranch; or
                    ``(E) refinancing indebtedness.
    ``(b) Preferences.--In making or guaranteeing a loan under 
this subtitle for purchase of a farm or ranch, the Secretary 
shall give preference to a person who--
            ``(1) has a dependent family;
            ``(2) to the extent practicable, is able to make an 
        initial down payment on the farm or ranch; or
            ``(3) is an owner of livestock or farm or ranch 
        equipment that is necessary to successfully carry out 
        farming or ranching operations.
    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary 
        may not make a loan to a farmer or rancher under this 
        subtitle unless the farmer or rancher has, or agrees to 
        obtain, hazard insurance on any real property to be 
        acquired or improved with the loan.
            ``(2) Determination.--Not later than 180 days after 
        the date of enactment of this subsection, the Secretary 
        shall determine the appropriate level of insurance to 
        be required under paragraph (1).''.
    (b) Transitional Provision.--Section 303(c)(1) of the 
Consolidated Farm and Rural Development Act shall not apply 
until the Secretary of Agriculture makes the determination 
required by section 303(c)(2) of the Act.

SEC. 603. SOIL AND WATER CONSERVATION AND PROTECTION.

    Section 304 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1924) is amended--
            (1) by striking subsections (b) and (c);
            (2) by striking ``Sec. 304. (a)(1) Loans'' and 
        inserting the following:

``SEC. 304. SOIL AND WATER CONSERVATION AND PROTECTION.

    ``(a) In General.--Loans'';
            (3) by striking ``(2) In making or insuring'' and 
        inserting the following:
    ``(b) Priority.--In making or guaranteeing'';
            (4) by striking ``(3) The Secretary'' and inserting 
        the following:
    ``(c) Loan Maximum.--The Secretary'';
            (5) by redesignating subparagraphs (A) through (F) 
        of subsection (a) (as amended by paragraph (2)) as 
        paragraphs (1) through (6), respectively; and
            (6) by redesignating subparagraphs (A) and (B) of 
        subsection (c) (as amended by paragraph (4)) as 
        paragraphs (1) and (2), respectively.

SEC. 604. INTEREST RATE REQUIREMENTS.

    Section 307(a)(3) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927(a)(3)) is amended--
            (1) in subparagraph (B), by inserting 
        ``subparagraph (D) and in'' after ``Except as provided 
        in''; and
            (2) by adding at the end the following:
                    ``(D) Joint financing arrangement.--If a 
                direct farm ownership loan is made under this 
                subtitle as part of a joint financing 
                arrangement and the amount of the direct farm 
                ownership loan does not exceed 50 percent of 
                the total principal amount financed under the 
                arrangement, the interest rate on the direct 
                farm ownership loan shall be at least 4 percent 
                annually.''.

SEC. 605. INSURANCE OF LOANS.

    Section 308 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1928) is amended to read as follows:

``SEC. 308. FULL FAITH AND CREDIT.

    ``(a) In General.--A contract of insurance or guarantee 
executed by the Secretary under this title shall be an 
obligation supported by the full faith and credit of the United 
States.
    ``(b) Contestability.--A contract of insurance or guarantee 
executed by the Secretary under this title shall be 
incontestable except for fraud or misrepresentation that the 
lender or any holder--
            ``(1) has actual knowledge of at the time the 
        contract or guarantee is executed; or
            ``(2) participates in or condones.''.

SEC. 606. LOANS GUARANTEED.

    Section 309(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929(h)) is amended by adding at the 
end the following:
            ``(4) Maximum guarantee of 90 percent.--Except as 
        provided in paragraphs (5) and (6), a loan guarantee 
        under this title shall be for not more than 90 percent 
        of the principal and interest due on the loan.
            ``(5) Refinanced loans guaranteed at 95 percent.--
        The Secretary shall guarantee 95 percent of--
                    ``(A) in the case of a loan that solely 
                refinances a direct loan made under this title, 
                the principal and interest due on the loan on 
                the date of the refinancing; or
                    ``(B) in the case of a loan that is used 
                for multiple purposes, the portion of the loan 
                that refinances the principal and interest due 
                on a direct loan made under this title that is 
                outstanding on the date the loan is guaranteed.
            ``(6) Beginning farmer loans guaranteed up to 95 
        percent.--The Secretary may guarantee not more than 95 
        percent of--
                    ``(A) a farm ownership loan for acquiring a 
                farm or ranch to a borrower who is 
                participating in the down payment loan program 
                under section 310E; or
                    ``(B) an operating loan to a borrower who 
                is participating in the down payment loan 
                program under section 310E that is made during 
                the period that the borrower has a direct loan 
                outstanding under this subtitle for acquiring a 
                farm or ranch.''.

                      Subtitle B--Operating Loans

SEC. 611. LIMITATION ON DIRECT OPERATING LOANS.

    (a) In General.--Section 311 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1941) is amended by striking 
subsection (c) and inserting the following:
    ``(c) Direct Loans.--
            ``(1) In general.--Subject to paragraph (3), the 
        Secretary may make a direct loan under this subtitle 
        only to a farmer or rancher who--
                    ``(A) is a qualified beginning farmer or 
                rancher who has not operated a farm or ranch, 
                or who has operated a farm or ranch for not 
                more than 5 years;
                    ``(B) has not received a previous direct 
                operating loan made under this subtitle; or
                    ``(C) has received a previous direct 
                operating loan made under this subtitle during 
                6 or fewer years.
            ``(2) Youth loans.--In this subsection, the term 
        `direct operating loan' shall not include a loan made 
        to a youth under subsection (b).
            ``(3) Transition rule.--If, as of the date of 
        enactment of this paragraph, a farmer or rancher has 
        received a direct operating loan under this subtitle 
        during each of 4 or more previous years, the borrower 
        shall be eligible to receive a direct operating loan 
        under this subtitle during 3 additional years after the 
        date of enactment of this paragraph.''.
    (b) Youth Enterprises Not Farming or Ranching.--Section 
311(b) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1941(b)) is amended by adding at the end the following:
            ``(4) Youth enterprises not farming or ranching.--
        The operation of an enterprise by a youth under this 
        subsection shall not be considered the operation of a 
        farm or ranch under this title.''.

SEC. 612. PURPOSES OF OPERATING LOANS.

    (a) In General.--Section 312 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1942) is amended to read as 
follows:

``SEC. 312. PURPOSES OF LOANS.

    ``(a) In General.--A direct loan may be made under this 
subtitle only for--
            ``(1) paying the costs incident to reorganizing a 
        farm or ranch for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or 
        ranch equipment;
            ``(3) purchasing feed, seed, fertilizer, 
        insecticide, or farm or ranch supplies, or to meet 
        other essential farm or ranch operating expenses, 
        including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) paying loan closing costs;
            ``(6) assisting a farmer or rancher in changing the 
        equipment, facilities, or methods of operation of a 
        farm or ranch to comply with a standard promulgated 
        under section 6 of the Occupational Safety and Health 
        Act of 1970 (29 U.S.C. 655) or a standard adopted by a 
        State under a plan approved under section 18 of the Act 
        (29 U.S.C. 667), if the Secretary determines that 
        without assistance under this paragraph the farmer or 
        rancher is likely to suffer substantial economic injury 
        in complying with the standard;
            ``(7) training a limited-resource borrower 
        receiving a loan under section 310D in maintaining 
        records of farming and ranching operations;
            ``(8) training a borrower under section 359;
            ``(9) refinancing the indebtedness of a borrower, 
        if the borrower--
                    ``(A) has refinanced a loan under this 
                subtitle not more than 4 times previously; and
                    ``(B)(i) is a direct loan borrower under 
                this title at the time of the refinancing and 
                has suffered a qualifying loss because of a 
                natural disaster declared by the Secretary 
                under this title or a major disaster or 
                emergency designated by the President under the 
                Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.); or
                    ``(ii) is refinancing a debt obtained from 
                a creditor other than the Secretary; or
            ``(10) providing other farm, ranch, or home needs, 
        including family subsistence.
    ``(b) Guaranteed Loans.--A loan may be guaranteed under 
this subtitle only for--
            ``(1) paying the costs incident to reorganizing a 
        farm or ranch for more profitable operation;
            ``(2) purchasing livestock, poultry, or farm or 
        ranch equipment;
            ``(3) purchasing feed, seed, fertilizer, 
        insecticide, or farm or ranch supplies, or to meet 
        other essential farm or ranch operating expenses, 
        including cash rent;
            ``(4) financing land or water development, use, or 
        conservation;
            ``(5) refinancing indebtedness;
            ``(6) paying loan closing costs;
            ``(7) assisting a farmer or rancher in changing the 
        equipment, facilities, or methods of operation of a 
        farm or ranch to comply with a standard promulgated 
        under section 6 of the Occupational Safety and Health 
        Act of 1970 (29 U.S.C. 655) or a standard adopted by a 
        State under a plan approved under section 18 of the Act 
        (29 U.S.C. 667), if the Secretary determines that 
        without assistance under this paragraph the farmer or 
        rancher is likely to suffer substantial economic injury 
        due to compliance with the standard;
            ``(8) training a borrower under section 359; or
            ``(9) providing other farm, ranch, or home needs, 
        including family subsistence.
    ``(c) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary 
        may not make a loan to a farmer or rancher under this 
        subtitle unless the farmer or rancher has, or agrees to 
        obtain, hazard insurance on the property to be acquired 
        with the loan.
            ``(2) Determination.--Not later than 180 days after 
        the date of enactment of this paragraph, the Secretary 
        shall determine the appropriate level of insurance to 
        be required by paragraph (1).
    ``(d) Private Reserve.--
            ``(1) In general.--Notwithstanding any other 
        provision of this title, the Secretary may reserve a 
        portion of any loan made under this subtitle to be 
        placed in an unsupervised bank account that may be used 
        at the discretion of the borrower for the basic family 
        needs of the borrower and the immediate family of the 
        borrower.
            ``(2) Limit on size of the reserve.--The size of 
        the reserve shall not exceed the least of--
                    ``(A) 10 percent of the loan;
                    ``(B) $5,000; or
                    ``(C) the amount needed to provide for the 
                basic family needs of the borrower and the 
                borrower's immediate family for 3 calendar 
                months.''.
    (b) Transitional Provision.--Section 312(c)(1) of the 
Consolidated Farm and Rural Development Act shall not apply 
until the Secretary of Agriculture makes the determination 
required by section 312(c)(2) of the Act.

SEC. 613. PARTICIPATION IN LOANS.

    Section 315 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1945) is repealed.

SEC. 614. LINE-OF-CREDIT LOANS.

    Section 316 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1946) is amended by adding at the end the 
following:
    ``(c) Line-of-Credit Loans.--
            ``(1) In general.--A loan made or guaranteed by the 
        Secretary under this subtitle may be in the form of a 
        line-of-credit loan.
            ``(2) Term.--A line-of-credit loan under paragraph 
        (1) shall terminate not later than 5 years after the 
        date that the loan is made or guaranteed.
            ``(3) Eligibility.--For purposes of determining 
        eligibility for a farm operating loan under this 
        subtitle, each year during which a farmer or rancher 
        takes an advance or draws on a line-of-credit loan the 
        farmer or rancher shall be considered to have received 
        an operating loan for 1 year.
            ``(4) Termination of delinquent loans.--If a 
        borrower does not pay an installment on a line-of-
        credit loan on schedule, the borrower may not take an 
        advance or draw on the line-of-credit, unless the 
        Secretary determines that--
                    ``(A) the borrower's failure to pay on 
                schedule was due to unusual conditions that the 
                borrower could not control; and
                    ``(B) the borrower will reduce the line-of-
                credit balance to the scheduled level at the 
                end of--
                            ``(i) the production cycle; or
                            ``(ii) the marketing of the 
                        borrower's agricultural products.
            ``(5) Agricultural commodities.--A line-of-credit 
        loan may be used to finance the production or marketing 
        of an agricultural commodity that--
                    ``(A) is eligible for a price support 
                program of the Department of Agriculture; or
                    ``(B) was eligible for a price support 
                program of the Department of Agriculture on the 
                day before the date of enactment of the Federal 
                Agriculture Improvement and Reform Act of 
                1996.''.

SEC. 615. INSURANCE OF OPERATING LOANS.

    Section 317 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1947) is repealed.

SEC. 616. SPECIAL ASSISTANCE FOR BEGINNING FARMERS AND RANCHERS.

    (a) In General.--Section 318 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1948) is repealed.
    (b) Conforming Amendment.--Section 310F of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1936) is repealed.

SEC. 617. LIMITATION ON PERIOD FOR WHICH BORROWERS ARE ELIGIBLE FOR 
                    GUARANTEED ASSISTANCE.

    Section 319 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1949) is amended by striking subsection (b) and 
inserting the following:
    ``(b) Limitation on Period Borrowers Are Eligible for 
Guaranteed Assistance.--
            ``(1) General rule.--Subject to paragraph (2), the 
        Secretary shall not guarantee a loan under this 
        subtitle for a borrower for any year after the 15th 
        year that a loan is made to, or a guarantee is provided 
        with respect to, the borrower under this subtitle.
            ``(2) Transition rule.--If, as of October 28, 1992, 
        a farmer or rancher has received a direct or guaranteed 
        operating loan under this subtitle during each of 10 or 
        more previous years, the borrower shall be eligible to 
        receive a guaranteed operating loan under this subtitle 
        during 5 additional years after October 28, 1992.''.

                      Subtitle C--Emergency Loans

SEC. 621. HAZARD INSURANCE REQUIREMENT.

    (a) In General.--Section 321 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1961) is amended by striking 
subsection (b) and inserting the following:
    ``(b) Hazard Insurance Requirement.--
            ``(1) In general.--After the Secretary makes the 
        determination required by paragraph (2), the Secretary 
        may not make a loan to a farmer or rancher under this 
        subtitle to cover a property loss unless the farmer or 
        rancher had hazard insurance that insured the property 
        at the time of the loss.
            ``(2) Determination.--Not later than 180 days after 
        the date of enactment of this paragraph, the Secretary 
        shall determine the appropriate level of insurance to 
        be required under paragraph (1).''.
    (b) Transitional Provision.--Section 321(b)(1) of the 
Consolidated Farm and Rural Development Act shall not apply 
until the Secretary of Agriculture makes the determination 
required by section 321(b)(2) of the Act.

SEC. 622. NARROWING OF AUTHORITY TO WAIVE APPLICATION OF THE CREDIT 
                    ELSEWHERE TEST.

    The second proviso of section 322(b) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1962(b)) is amended by 
striking ``$300,000 or less'' and inserting ``$100,000 or 
less''.

SEC. 623. LINKING OF EMERGENCY LOANS FOR CROP OR LIVESTOCK CHANGES TO 
                    NATURAL DISASTERS.

    Section 323 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1963) is amended by inserting ``that are 
necessitated by a natural disaster, major disaster, or 
emergency and that are'' after ``livestock changes''.

SEC. 624. MAXIMUM EMERGENCY LOAN INDEBTEDNESS.

    Section 324 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1964) is amended by striking ``Sec. 324. (a) No 
loan'' and all that follows through the end of subsection (a) 
and inserting the following:

``SEC. 324. TERMS OF LOANS.

    ``(a) Maximum Amount of Loan.--The Secretary may not make a 
loan under this subtitle to a borrower who has suffered a loss 
in an amount that--
            ``(1) exceeds the actual loss caused by a disaster; 
        or
            ``(2) would cause the total indebtedness of the 
        borrower under this subtitle to exceed $500,000.''.

SEC. 625. ESTABLISHMENT OF DATE FOR EMERGENCY LOAN ASSET VALUATION.

    The last sentence of section 324(d) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1964(d)) is amended by 
striking ``value the assets'' and all that follows through the 
period and inserting ``establish the value of the assets as of 
the day before the occurrence of the natural disaster, major 
disaster, or emergency that is the basis for a request for 
assistance under this subtitle or the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.).''.

SEC. 626. INSURANCE OF EMERGENCY LOANS.

    Section 328 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1968) is repealed.

                 Subtitle D--Administrative Provisions

SEC. 631. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS.

    Section 331 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981) is amended by adding at the end the 
following:
    ``(d) Temporary Authority To Enter Into Contracts.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible financial institution.--The 
                term `eligible financial institution' means a 
                financial institution with substantial 
                experience in farm, ranch, or aquaculture 
                lending that is regulated by the Comptroller of 
                the Currency, the Farm Credit Administration, 
                or a similar regulatory body.
                    ``(B) Pilot project.--The term `pilot 
                project' includes services related to borrower 
                loan documentation, financial information, 
                credit history, and appraisals of real estate 
                and chattel.
            ``(2) Authority.--The Secretary may enter into a 
        contract with an eligible financial institution for 
        servicing a farmer program loan under this title, 
        including 1 or more pilot projects.
            ``(3) Report.--Not later than September 30, 1997, 
        and September 30 of each year thereafter, the Secretary 
        shall report to Congress on--
                    ``(A) the Secretary's experience in using 
                contracts under paragraph (2); and
                    ``(B) recommendations for legislation 
                related to this subsection, if any.
            ``(4) Savings clause.--Nothing in this subsection 
        shall limit the authority of the Secretary or an 
        eligible financial institution to contract for any 
        services under this Act or any other law.
            ``(5) Sunset provision.--This subsection shall be 
        effective until September 30, 2002.''.

SEC. 632. USE OF COLLECTION AGENCIES.

    Section 331 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981) (as amended by section 631) is amended by 
adding at the end the following:
    ``(e) Private Collection Agency.--The Secretary may use a 
private collection agency to collect a claim or obligation 
described in subsection (b)(5).''.

SEC. 633. NOTICE OF LOAN SERVICE PROGRAMS.

    Section 331D(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981d(a)) is amended by striking 
``180 days delinquent in'' and inserting ``90 days past due 
on''.

SEC. 634. CLARIFICATION OF WRITTEN STATEMENT REQUIRED OF BORROWERS.

    Section 333(1)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983(1)(B)) is amended by striking 
``a written statement showing the applicant's net worth'' and 
inserting ``an appropriate written financial statement''.

SEC. 635. ANNUAL REVIEW OF THE CREDIT HISTORY, BUSINESS OPERATION, AND 
                    CONTINUED ELIGIBILITY OF A BORROWER.

    (a) In General.--Section 333 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1983) is amended--
            (1) by redesignating paragraphs (2), (3), and (4) 
        as paragraphs (3), (4), and (5), respectively; and
            (2) by inserting after paragraph (1) the following:
            ``(2) except with respect to a loan under section 
        306, 310B, or 314, the county or area committee 
        established under section 8(b)(5)(B) of the Soil 
        Conservation and Domestic Allotment Act (16 U.S.C. 
        590h(b)(5)(B)) to certify in writing--
                    ``(A) that an annual review of the credit 
                history and business operation of the borrower 
                has been conducted; and
                    ``(B) that a review of the continued 
                eligibility of the borrower for the loan has 
                been conducted;''.
    (b) Conforming Amendment.--The third sentence of section 
310B(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1932(a)) is amended by striking ``(3) of'' and inserting 
``(4) of''.

SEC. 636. EXTENSION OF VETERANS PREFERENCE.

    Section 333 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983) (as amended by section 635(a)) is amended 
by striking paragraph (5) and inserting the following:
            ``(5) the application of a person who is a veteran 
        of any war, as defined in section 101(12) of title 38, 
        United States Code, for a loan under subtitle A or B to 
        be given preference over a similar application from a 
        person who is not a veteran of any war, if the 
        applications are on file in a county or area office at 
        the same time.''.

SEC. 637. VERIFICATION OF THE CREDIT ELSEWHERE TEST.

    Section 333A(f)(4) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983a(f)(4)) is amended--
            (1) by striking ``(4) With'' and all that follows 
        through ``seasoned'' and inserting the following:
            ``(4) Verification.--
                    ``(A) In general.--The Secretary shall 
                provide a prospectus of a seasoned''; and
            (2) by striking ``If the Secretary'' and inserting 
        the following:
                    ``(B) Notification.--The Secretary shall 
                notify each borrower of a loan that a 
                prospectus has been provided to a lender under 
                subparagraph (A).
                    ``(C) Credit extended.--If the Secretary''.

SEC. 638. SALE OF PROPERTY.

    Section 335 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1985) is amended--
            (1) in subsection (b), by striking ``subsection 
        (e)'' and inserting ``subsections (c) and (e)'';
            (2) by striking subsection (c) and inserting the 
        following:
    ``(c) Sale of Property.--
            ``(1) In general.--Subject to this subsection and 
        subsection (e)(1)(A), the Secretary shall offer to sell 
        real property that is acquired by the Secretary under 
        this title using the following order and method of 
        sale:
                    ``(A) Advertisement.--Not later than 15 
                days after acquiring real property, the 
                Secretary shall publicly advertise the property 
                for sale.
                    ``(B) Beginning farmer or rancher.--
                            ``(i) In general.--Not later than 
                        75 days after acquiring real property, 
                        the Secretary shall offer to sell the 
                        property to a qualified beginning 
                        farmer or rancher at current market 
                        value based on a current appraisal.
                            ``(ii) Random selection.--If more 
                        than 1 qualified beginning farmer or 
                        rancher offers to purchase the 
                        property, the Secretary shall select 
                        between the qualified applicants on a 
                        random basis.
                            ``(iii) Appeal of random 
                        selection.--A random selection or 
                        denial by the Secretary of a beginning 
                        farmer or rancher for farm inventory 
                        property under this subparagraph shall 
                        be final and not administratively 
                        appealable.
                    ``(C) Public sale.--If no acceptable offer 
                is received from a qualified beginning farmer 
                or rancher under subparagraph (B) not later 
                than 75 days after acquiring the real property, 
                the Secretary shall, not later than 30 days 
                after the 75-day period, sell the property 
                after public notice at a public sale, and, if 
                no acceptable bid is received, by negotiated 
                sale, at the best price obtainable.
            ``(2) Transitional rules.--
                    ``(A) Previous lease.--In the case of real 
                property acquired prior to the date of 
                enactment of this subparagraph that the 
                Secretary leased prior to the date of enactment 
                of this subparagraph, not later than 60 days 
                after the lease expires, the Secretary shall 
                offer to sell the property in accordance with 
                paragraph (1).
                    ``(B) Previously in inventory.--In the case 
                of real property acquired prior to the date of 
                enactment of this subparagraph that the 
                Secretary has not leased, not later than 60 
                days after the date of enactment of this 
                subparagraph, the Secretary shall offer to sell 
                the property in accordance with paragraph (1).
            ``(3) Interest.--
                    ``(A) In general.--Subject to subparagraph 
                (B), any conveyance of real property under this 
                subsection shall include all of the interest of 
                the United States in the property, including 
                mineral rights.
                    ``(B) Conservation.--The Secretary may for 
                conservation purposes grant or sell an 
                easement, restriction, development right, or 
                similar legal right to real property to a 
                State, a political subdivision of a State, or a 
                private nonprofit organization separately from 
                the underlying fee or other rights to the 
                property owned by the United States.
            ``(4) Other law.--The Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et 
        seq.) shall not apply to any exercise of authority 
        under this title.
            ``(5) Lease of property.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the Secretary may not lease any real 
                property acquired under this title.
                    ``(B) Exception.--
                            ``(i) Beginning farmer or 
                        rancher.--The Secretary may lease or 
                        contract to sell to a beginning farmer 
                        or rancher a farm or ranch acquired by 
                        the Secretary under this title if the 
                        beginning farmer or rancher qualifies 
                        for a credit sale or direct farm 
                        ownership loan under subtitle A but 
                        credit sale authority for loans or 
                        direct farm ownership loan funds, 
                        respectively, are not available.
                            ``(ii) Term.--The term of a lease 
                        or contract to sell to a beginning 
                        farmer or rancher under clause (i) 
                        shall be until the earlier of--
                                    ``(I) the date that is 18 
                                months after the date of the 
                                lease or sale; or
                                    ``(II) the date that direct 
                                farm ownership loan funds or 
                                credit sale authority for loans 
                                becomes available to the 
                                beginning farmer or rancher.
                            ``(iii) Income-producing 
                        capability.--In determining the rental 
                        rate on real property leased under this 
                        subparagraph, the Secretary shall 
                        consider the income-producing 
                        capability of the property during the 
                        term that the property is leased.
            ``(6) Expedited determination.--
                    ``(A) In general.--On the request of an 
                applicant, not later than 30 days after denial 
                of the applicant's application, the appropriate 
                State director shall provide an expedited 
                review and determination of whether the 
                applicant is a beginning farmer or rancher for 
                the purpose of acquiring farm inventory 
                property.
                    ``(B) Appeal.--The determination of a State 
                Director under subparagraph (A) shall be final 
                and not administratively appealable.
                    ``(C) Effects of determinations.--
                            ``(i) In general.--The Secretary 
                        shall maintain statistical data on the 
                        number and results of determinations 
                        made under subparagraph (A) and the 
                        effect of the determinations on--
                                    ``(I) selling farm 
                                inventory property to beginning 
                                farmers and ranchers; and
                                    ``(II) disposing of real 
                                property in inventory.
                            ``(ii) Notification.--The Secretary 
                        shall notify the Committee on 
                        Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate if the Secretary determines 
                        that the review process under 
                        subparagraph (A) is adversely affecting 
                        the selling of farm inventory property 
                        to beginning farmers or ranchers or the 
                        disposing of real property in 
                        inventory.''; and
            (3) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraphs (A) 
                        through (C);
                            (ii) by redesignating subparagraphs 
                        (D) through (G) as subparagraphs (A) 
                        through (D), respectively;
                            (iii) in subparagraph (A) (as 
                        redesignated by clause (ii))--
                                    (I) in clause (i)--
                                            (aa) in the matter 
                                        preceding subclause 
                                        (I), by striking 
                                        ``(G)'' and inserting 
                                        ``(D)'';
                                            (bb) by striking 
                                        subclause (I) and 
                                        inserting the 
                                        following:
            ``(I) the Secretary acquires property under this 
        title that is located within an Indian reservation; 
        and'';
                                            (cc) in subclause 
                                        (II), by striking ``, 
                                        and'' at the end and 
                                        inserting a semicolon; 
                                        and
                                            (dd) by striking 
                                        subclause (III); and
                                    (II) in clause (iii), by 
                                striking ``The Secretary 
                                shall'' and all that follows 
                                through ``of subparagraph 
                                (A),'' and inserting ``Not 
                                later than 90 days after 
                                acquiring the property, the 
                                Secretary shall''; and
                            (iv) in subparagraph (D) (as 
                        redesignated by clause (ii))--
                                    (I) in clause (i), by 
                                striking ``(D)'' in the matter 
                                following subclause (IV) and 
                                inserting ``(A)'';
                                    (II) in clause (iii)(I), by 
                                striking ``subparagraphs 
                                (C)(i), (C)(ii), and (D)'' and 
                                inserting ``subparagraph (A)''; 
                                and
                                    (III) by striking clause 
                                (v) and inserting the 
                                following:
                            ``(v) Foreclosure procedures.--
                                    ``(I) Notice to borrower.--
                                If an Indian borrower-owner 
                                does not voluntarily convey to 
                                the Secretary real property 
                                described in clause (i), not 
                                less than 30 days before a 
                                foreclosure sale of the 
                                property, the Secretary shall 
                                provide the Indian borrower-
                                owner with the option of--
                                            ``(aa) requiring 
                                        the Secretary to assign 
                                        the loan and security 
                                        instruments to the 
                                        Secretary of the 
                                        Interior, if the 
                                        Secretary of the 
                                        Interior agrees to an 
                                        assignment releasing 
                                        the Secretary of 
                                        Agriculture from all 
                                        further responsibility 
                                        for collection of any 
                                        amounts with regard to 
                                        the loan secured by the 
                                        real property; or
                                            ``(bb) requiring 
                                        the Secretary to assign 
                                        the loan and security 
                                        instruments to the 
                                        tribe having 
                                        jurisdiction over the 
                                        reservation in which 
                                        the real property is 
                                        located, if the tribe 
                                        agrees to the 
                                        assignment.
                                    ``(II) Notice to tribe.--If 
                                an Indian borrower-owner does 
                                not voluntarily convey to the 
                                Secretary real property 
                                described in clause (i), not 
                                less than 30 days before a 
                                foreclosure sale of the 
                                property, the Secretary shall 
                                provide written notice to the 
                                Indian tribe that has 
                                jurisdiction over the 
                                reservation in which the real 
                                property is located of--
                                            ``(aa) the sale;
                                            ``(bb) the fair 
                                        market value of the 
                                        property; and
                                            ``(cc) the 
                                        requirements of this 
                                        subparagraph.
                                    ``(III) Assumed loans.--If 
                                an Indian tribe assumes a loan 
                                under subclause (I)--
                                            ``(aa) the 
                                        Secretary shall not 
                                        foreclose the loan 
                                        because of any default 
                                        that occurred prior to 
                                        the date of the 
                                        assumption;
                                            ``(bb) the loan 
                                        shall be for the lesser 
                                        of the outstanding 
                                        principal and interest 
                                        of the loan or the fair 
                                        market value of the 
                                        property; and
                                            ``(cc) the loan 
                                        shall be treated as 
                                        though the loan was 
                                        made under Public Law 
                                        91-229 (25 U.S.C. 488 
                                        et seq.).'';
                    (B) by striking paragraph (3);
                    (C) in paragraph (4)--
                            (i) by striking subparagraph (B);
                            (ii) in subparagraph (A)--
                                    (I) in clause (i), by 
                                striking ``(i)''; and
                                    (II) by redesignating 
                                clause (ii) as subparagraph 
                                (B); and
                            (iii) in subparagraph (B) (as 
                        redesignated by clause (ii)(II)), by 
                        striking ``clause (i)'' and inserting 
                        ``subparagraph (A)'';
                    (D) by striking paragraphs (5), (6), and 
                (9); and
                    (E) by redesignating paragraphs (4), (7), 
                (8), and (10) as paragraphs (3), (4), (5), and 
                (6), respectively.

SEC. 639. EASEMENTS ON INVENTORIED PROPERTY.

    Section 335(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1985(g)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(g)(1) Subject to 
                paragraphs (2) through (5)'' and inserting the 
                following:
    ``(g) Easements on Inventoried Property.--
            ``(1) In general.--Subject to paragraph (2)''; and
                    (B) by striking ``, as determined'' and all 
                that follows through ``3801 et seq.)'';
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Limitation.--The Secretary shall not 
        establish a wetland conservation easement on an 
        inventoried property that--
                    ``(A) was cropland on the date the property 
                entered the inventory of the Secretary; or
                    ``(B) was used for farming at any time 
                during the period beginning on the date 5 years 
                before the property entered the inventory of 
                the Secretary and ending on the date the 
                property entered the inventory of the 
                Secretary.'';
            (3) by striking paragraphs (3), (4), (5), and (8);
            (4) by striking ``(6) The Secretary'' and inserting 
        the following:
            ``(3) Notification.--The Secretary''; and
            (5) by striking ``(7) The appraised'' and inserting 
        the following:
            ``(4) Appraised value.--The appraised''.

SEC. 640. DEFINITIONS.

    Section 343(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991(a)) is amended--
            (1) in paragraph (11)--
                    (A) in the text preceding subparagraph (A), 
                by striking ``applicant--'' and inserting 
                ``applicant, regardless of whether the 
                applicant is participating in a program under 
                section 310E--''; and
                    (B) in subparagraph (F)--
                            (i) by striking ``15 percent'' and 
                        inserting ``25 percent''; and
                            (ii) by inserting before the 
                        semicolon at the end the following: ``, 
                        except that this subparagraph shall not 
                        apply to a loan made or guaranteed 
                        under subtitle B''; and
            (2) by adding at the end the following:
            ``(12) Debt forgiveness.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `debt forgiveness' 
                means reducing or terminating a farmer program 
                loan made or guaranteed under this title, in a 
                manner that results in a loss to the Secretary, 
                through--
                            ``(i) writing down or writing off a 
                        loan under section 353;
                            ``(ii) compromising, adjusting, 
                        reducing, or charging-off a debt or 
                        claim under section 331;
                            ``(iii) paying a loss on a 
                        guaranteed loan under section 357; or
                            ``(iv) discharging a debt as a 
                        result of bankruptcy.
                    ``(B) Loan restructuring.--The term `debt 
                forgiveness' does not include consolidation, 
                rescheduling, reamortization, or deferral.''.

SEC. 641. AUTHORIZATION FOR LOANS.

    Section 346 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1994) is amended--
            (1) in the second sentence of subsection (a), by 
        striking ``with or without'' and all that follows 
        through ``administration''; and
            (2) by striking subsection (b) and inserting the 
        following:
    ``(b) Authorization for Loans.--
            ``(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 in not more than the following amounts:
                    ``(A) Fiscal year 1996.--For fiscal year 
                1996, $3,085,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,500,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $600,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $1,900,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(B) Fiscal year 1997.--For fiscal year 
                1997, $3,165,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,580,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $630,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $1,950,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(C) Fiscal year 1998.--For fiscal year 
                1998, $3,245,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,660,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $660,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,000,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(D) Fiscal year 1999.--For fiscal year 
                1999, $3,325,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,740,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $690,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,050,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(E) Fiscal year 2000.--For fiscal year 
                2000, $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,100,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(F) Fiscal year 2001.--For fiscal year 
                2001, $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,100,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
                    ``(G) Fiscal year 2002.--For fiscal year 
                2002, $3,435,000,000, of which--
                            ``(i) $585,000,000 shall be for 
                        direct loans, of which--
                                    ``(I) $85,000,000 shall be 
                                for farm ownership loans under 
                                subtitle A; and
                                    ``(II) $500,000,000 shall 
                                be for operating loans under 
                                subtitle B; and
                            ``(ii) $2,850,000,000 shall be for 
                        guaranteed loans, of which--
                                    ``(I) $750,000,000 shall be 
                                for guarantees of farm 
                                ownership loans under subtitle 
                                A; and
                                    ``(II) $2,100,000,000 shall 
                                be for guarantees of operating 
                                loans under subtitle B.
            ``(2) Beginning farmers and ranchers.--
                    ``(A) Direct loans.--
                            ``(i) Farm ownership loans.--
                                    ``(I) In general.--Of the 
                                amounts made available under 
                                paragraph (1) for direct farm 
                                ownership loans, the Secretary 
                                shall reserve 70 percent for 
                                qualified beginning farmers and 
                                ranchers.
                                    ``(II) Down payment 
                                loans.--Of the amounts reserved 
                                for a fiscal year under 
                                subclause (I), the Secretary 
                                shall reserve 60 percent for 
                                the down payment loan program 
                                under section 310E until April 
                                1 of the fiscal year.
                            ``(ii) Operating loans.--Of the 
                        amounts made available under paragraph 
                        (1) for direct operating loans, the 
                        Secretary shall reserve for qualified 
                        beginning farmers and ranchers--
                                    ``(I) for each of fiscal 
                                years 1996 through 1998, 25 
                                percent;
                                    ``(II) for fiscal year 
                                1999, 30 percent; and
                                    ``(III) for each of fiscal 
                                years 2000 through 2002, 35 
                                percent.
                            ``(iii) Funds reserved until 
                        september 1.--Except as provided in 
                        clause (i)(II), funds reserved for 
                        qualified beginning farmers or ranchers 
                        under this subparagraph for a fiscal 
                        year shall be reserved only until 
                        September 1 of the fiscal year.
                    ``(B) Guaranteed loans.--
                            ``(i) Farm ownership loans.--Of the 
                        amounts made available under paragraph 
                        (1) for guarantees of farm ownership 
                        loans, the Secretary shall reserve 25 
                        percent for qualified beginning farmers 
                        and ranchers.
                            ``(ii) Operating loans.--Of the 
                        amounts made available under paragraph 
                        (1) for guarantees of operating loans, 
                        the Secretary shall reserve 40 percent 
                        for qualified beginning farmers and 
                        ranchers.
                            ``(iii) Funds reserved until april 
                        1.--Funds reserved for qualified 
                        beginning farmers or ranchers under 
                        this subparagraph for a fiscal year 
                        shall be reserved only until April 1 of 
                        the fiscal year.
                    ``(C) Reserved funds for all qualified 
                beginning farmers and ranchers.--If a qualified 
                beginning farmer or rancher meets the 
                eligibility criteria for receiving a direct or 
                guaranteed loan under section 302, 310E, or 
                311, the Secretary shall make or guarantee the 
                loan if sufficient funds reserved under this 
                paragraph are available to make or guarantee 
                the loan.
            ``(3) Transfer for down payment loans.--
                    ``(A) In general.--Notwithstanding 
                subsection (a), subject to subparagraph (B)--
                            ``(i) beginning on August 1 of each 
                        fiscal year, the Secretary shall use 
                        available unsubsidized guaranteed farm 
                        operating loan funds to provide direct 
                        farm ownership loans approved by the 
                        Secretary to qualified beginning 
                        farmers and ranchers under the down 
                        payment loan program established under 
                        section 310E, if sufficient direct farm 
                        ownership loan funds are not otherwise 
                        available; and
                            ``(ii) beginning on September 1 of 
                        each fiscal year, the Secretary shall 
                        use available unsubsidized guaranteed 
                        farm operating loan funds to provide 
                        direct farm ownership loans approved by 
                        the Secretary to qualified beginning 
                        farmers and ranchers, if sufficient 
                        direct farm ownership loan funds are 
                        not otherwise available.
                    ``(B) Limitation.--The Secretary shall 
                limit the transfer of funds under subparagraph 
                (A) so that all guaranteed farm operating loans 
                that have been approved, or will be approved, 
                by the Secretary during the fiscal year will be 
                made to the extent of available amounts.
            ``(4) Transfer for credit sales of farm inventory 
        property.--
                    ``(A) In general.--Notwithstanding 
                subsection (a), subject to subparagraphs (B) 
                and (C), beginning on September 1 of each 
                fiscal year, the Secretary may use available 
                funds made available under subtitle C for the 
                fiscal year to fund the credit sale of farm 
                real estate in the inventory of the Secretary.
                    ``(B) Supplemental appropriations.--The 
                transfer authority provided under subparagraph 
                (A) shall not apply to any funds made available 
                to the Secretary for any fiscal year under an 
                Act making supplemental appropriations.
                    ``(C) Limitation.--The Secretary shall 
                limit the transfer of funds under subparagraph 
                (A) so that all emergency disaster loans that 
                have been approved, or will be approved, by the 
                Secretary during the fiscal year will be made 
                to the extent of available amounts.''.

SEC. 642. CONTRACTS ON LOAN SECURITY PROPERTIES.

    Section 349 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1997) is amended--
            (1) by striking subsection (b) and inserting the 
        following:
    ``(b) Contracts on Loan Security Properties.--Subject to 
subsection (c), the Secretary may enter into a contract related 
to real property for conservation, recreation, or wildlife 
purposes.'';
            (2) in subsection (c)--
                    (A) by striking ``(c) Such easement'' and 
                all that follows through ``if--'' and inserting 
                the following:
    ``(c) Limitations.--The Secretary may enter into a contract 
under subsection (b) if--'';
                    (B) in paragraph (2), by adding ``and'' at 
                the end;
                    (C) in paragraph (3)--
                            (i) by striking subparagraph (B);
                            (ii) by striking ``(3)(A)(i)'' and 
                        inserting ``(3)(A)'';
                            (iii) by striking ``Farmers Home 
                        Administration'' and inserting 
                        ``Secretary'';
                            (iv) by striking ``(ii) such 
                        easement'' and inserting ``(B) such 
                        contract''; and
                            (v) by striking ``; or'' and 
                        inserting a period; and
                    (D) by striking paragraph (4);
            (3) in subsection (d), by striking ``easement'' 
        each place it appears and inserting ``contract'';
            (4) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding 
                        subparagraph (A), by striking 
                        ``purchase any such easement from the 
                        borrower--'' and inserting ``reduce or 
                        forgive the outstanding debt of a 
                        borrower--'';
                            (ii) by striking ``easement'' each 
                        place it appears and inserting 
                        ``contract''; and
                            (iii) by striking ``Farmers Home 
                        Administration'' each place it appears 
                        and inserting ``Secretary''; and
                    (B) in paragraph (2)(A), by striking 
                ``easement is acquired'' and inserting 
                ``contract is entered into'';
            (5) in subsection (f)--
                    (A) in paragraph (1), by striking ``acquire 
                easements'' and inserting ``enter into 
                contracts''; and
                    (B) in paragraphs (2) and (3), by striking 
                ``easements'' each place it appears and 
                inserting ``contracts''; and
            (6) in subsection (g), by striking ``an easement 
        acquired'' and inserting ``a contract entered into''.

SEC. 643. LIST OF CERTIFIED LENDERS AND INVENTORY PROPERTY 
                    DEMONSTRATION PROJECT.

    (a) In General.--Section 351 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1999) is amended--
            (1) in subsection (f)--
                    (A) by striking ``Each Farmers Home 
                Administration county supervisor'' and 
                inserting ``The Secretary'';
                    (B) by striking ``approved lenders'' and 
                inserting ``lenders''; and
                    (C) by striking ``the Farmers Home 
                Administration''; and
            (2) by striking subsection (h).
    (b) Technical Amendment.--Section 1320 of the Food Security 
Act of 1985 (Public Law 99-198; 7 U.S.C. 1999 note) is amended 
by striking ``Effective only'' and all that follows through 
``1995, the'' and inserting ``The''.

SEC. 644. HOMESTEAD PROPERTY.

    Section 352(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2000(c)) is amended--
            (1) in paragraph (1)(A), by striking ``90'' each 
        place it appears and inserting ``30''; and
            (2) in paragraph (6)--
                    (A) in the first sentence, by striking 
                ``Within 30'' and all that follows through 
                ``title,'' and insert ``Not later than the date 
                of acquisition of the property securing a loan 
                made under this title (or, in the case of real 
                property in inventory on the date of enactment 
                of the Federal Agriculture Improvement and 
                Reform Act of 1996, not later than 5 days after 
                the date of enactment of the Act),''; and
                    (B) by striking the second sentence.

SEC. 645. RESTRUCTURING.

    Section 353 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2001) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (3), by striking 
                subparagraph (C) and inserting the following:
                    ``(C) Cash flow margin.--For the purpose of 
                assessing under subparagraph (A) the ability of 
                a borrower to meet debt obligations and 
                continue farming operations, the Secretary 
                shall assume that the borrower needs up to 110 
                percent of the amount indicated for payment of 
                farm operating expenses, debt service 
                obligations, and family living expenses.''; and
                    (B) by striking paragraph (6) and inserting 
                the following:
            ``(6) Termination of loan obligations.--The 
        obligations of a borrower to the Secretary under a loan 
        shall terminate if--
                    ``(A) the borrower satisfies the 
                requirements of paragraphs (1) and (2) of 
                subsection (b);
                    ``(B) the value of the restructured loan is 
                less than the recovery value; and
                    ``(C) not later than 90 days after receipt 
                of the notification described in paragraph 
                (4)(B), the borrower pays (or obtains third-
                party financing to pay) the Secretary an amount 
                equal to the current market value.'';
            (2) by striking subsection (k); and
            (3) by redesignating subsections (l) through (p) as 
        subsections (k) through (o), respectively.

SEC. 646. TRANSFER OF INVENTORY LAND FOR CONSERVATION PURPOSES.

    Section 354 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2002) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking ``The Secretary, without reimbursement,'' and 
        inserting the following:
    ``(a) In General.--Subject to subsection (b), the 
Secretary'';
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) that is eligible to be disposed of in 
        accordance with section 335; and''; and
            (3) by adding at the end the following:
    ``(b) Conditions.--The Secretary may not transfer any 
property or interest in property under subsection (a) unless--
            ``(1) at least 2 public notices are given of the 
        transfer;
            ``(2) if requested, at least 1 public meeting is 
        held prior to the transfer; and
            ``(3) the Governor and at least 1 elected county 
        official of the State and county where the property is 
        located are consulted prior to the transfer.''.

SEC. 647. IMPLEMENTATION OF TARGET PARTICIPATION RATES.

    Section 355 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2003) is amended by adding at the end the 
following:
    ``(f) Implementation Consistent With Supreme Court 
Holding.--Not later than 180 days after the date of enactment 
of this subsection, the Secretary shall ensure that the 
implementation of this section is consistent with the holding 
of the Supreme Court in Adarand Constructors, Inc. v. Federico 
Pena, Secretary of Transportation, 115 S. Ct. 2097 (1995).''.

SEC. 648. DELINQUENT BORROWERS.

    (a) Payment of Interest as a Condition of Loan Servicing 
for Borrowers.--The Consolidated Farm and Rural Development Act 
(7 U.S.C. 1921 et seq.) is amended by adding at the end the 
following:

``SEC. 372. PAYMENT OF INTEREST AS A CONDITION OF LOAN SERVICING FOR 
                    BORROWERS.

    ``The Secretary may not reschedule or reamortize a loan for 
a borrower under this title who has not requested consideration 
under section 331D(e) unless the borrower pays a portion, as 
determined by the Secretary, of the interest due on the 
loan.''.
    (b) Loan and Loan Servicing Limitations.--The Consolidated 
Farm and Rural Development Act (7 U.S.C. 1921 et seq.) (as 
amended by subsection (a)) is amended by adding at the end the 
following:

``SEC. 373. LOAN AND LOAN SERVICING LIMITATIONS.

    ``(a) Delinquent Borrowers Prohibited From Obtaining Direct 
Operating Loans.--The Secretary may not make a direct operating 
loan under subtitle B to a borrower who is delinquent on any 
loan made or guaranteed under this title.
    ``(b) Loans Prohibited for Borrowers That Have Received 
Debt Forgiveness.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Secretary may not make or guarantee a loan 
        under this title to a borrower who received debt 
        forgiveness on a loan made or guaranteed under this 
        title.
            ``(2) Exception.--The Secretary may make a direct 
        or guaranteed farm operating loan for paying annual 
        farm or ranch operating expenses of a borrower who was 
        restructured with a write-down under section 353.
    ``(c) No More Than 1 Debt Forgiveness For A Borrower On A 
Direct Loan.--The Secretary may not provide to a borrower debt 
forgiveness on a direct loan made under this title if the 
borrower has received debt forgiveness on another direct loan 
made under this title.''.

SEC. 649. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER COMPLIANCE.

    The Consolidated Farm and Rural Development Act (7 U.S.C. 
1921 et seq.) (as amended by section 648) is amended by adding 
at the end the following:

``SEC. 374. SHORT FORM CERTIFICATION OF FARM PROGRAM BORROWER 
                    COMPLIANCE.

    ``The Secretary shall develop and utilize a consolidated 
short form for farm program borrowers to use in certifying 
compliance with any applicable provision of law (including a 
regulation) that serves as an eligibility prerequisite for a 
loan made under this title.''.

SEC. 650. CREDIT STUDY.

    (a) In General.--The Secretary of Agriculture shall conduct 
a study and report to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate on the demand for and availability 
of credit in rural areas for agriculture, housing, and rural 
development.
    (b) Purpose.--The purpose of the study shall be to ensure 
that Congress has current and comprehensive information to 
consider as Congress deliberates on rural credit needs and the 
availability of credit to satisfy the needs of rural areas of 
the United States.
    (c) Items in Study.--In conducting the study, the Secretary 
shall base the study on the most current available data and 
analyze--
            (1) rural demand for credit from the Farm Credit 
        System, the ability of the Farm Credit System to meet 
        the demand, and the extent to which the Farm Credit 
        System provides loans to satisfy the demand;
            (2) rural demand for credit from the United States 
        banking system, the ability of banks to meet the 
        demand, and the extent to which banks provide loans to 
        satisfy the demand;
            (3) rural demand for credit from the Secretary, the 
        ability of the Secretary to meet the demand, and the 
        extent to which the Secretary provides loans to satisfy 
        the demand;
            (4) rural demand for credit from other Federal 
        agencies, the ability of the agencies to meet the 
        demand, and the extent to which the agencies provide 
        loans to satisfy the demand;
            (5) what measure or measures exist to gauge the 
        overall demand for rural credit, the extent to which 
        rural demand for credit is satisfied, and what the 
        measures have demonstrated;
            (6) a comparison of the interest rates and terms 
        charged by the Farm Credit System Farm Credit Banks, 
        production credit associations, and banks for 
        cooperatives with the rates and terms charged by the 
        banks of the United States for credit of comparable 
        risk and maturity;
            (7) the advantages and disadvantages of the 
        modernization and expansion proposals of the Farm 
        Credit System on the Farm Credit System, the United 
        States banking system, rural users of credit, local 
        rural communities, and the Federal Government, 
        including--
                    (A) any added risk to the safety and 
                soundness of the Farm Credit System that may 
                result from approval of a proposal; and
                    (B) any positive or adverse impacts on 
                competition between the Farm Credit System and 
                the banks of the United States in providing 
                credit to rural users;
            (8) the nature and extent of the unsatisfied rural 
        credit need that the Farm Credit System proposals are 
        supposed to address and what aspects of the present 
        Farm Credit System prevent the Farm Credit System from 
        meeting the need;
            (9) the advantages and disadvantages of the 
        proposal by commercial bankers to allow banks access to 
        the Farm Credit System as a funding source on the Farm 
        Credit System, the United States banking system, rural 
        users of credit, local rural communities, and the 
        Federal Government, including--
                    (A) any added risk to the safety and 
                soundness of the Farm Credit System that may 
                result from approval of the proposal; and
                    (B) any positive or adverse impacts on 
                competition between the Farm Credit System and 
                the banks of the United States in providing 
                credit to rural users; and
            (10) problems that commercial banks have in 
        obtaining capital for lending in rural areas, how 
        access to Farm Credit System funds would improve the 
        availability of capital in rural areas in ways that 
        cannot be achieved in the system in existence on the 
        date of enactment of this Act, and the possible effects 
        on the viability of the Farm Credit System of granting 
        banks access to Farm Credit System funds.
    (d) Interagency Task Force.--In completing the study, the 
Secretary shall use, among other things, data and information 
obtained by the interagency task force on rural credit.

                     Subtitle E--General Provisions

SEC. 661. CONFORMING AMENDMENTS.

    (a) Section 307(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1927(a)) is amended--
            (1) in paragraph (4), by striking ``304(b), 
        306(a)(1), and 310B'' and inserting ``306(a)(1) and 
        310B''; and
            (2) in paragraph (6)(B)--
                    (A) by striking clauses (i), (ii), (iv), 
                and (vii);
                    (B) in clause (v), by adding ``and'' at the 
                end;
                    (C) in clause (vi), by striking ``, and'' 
                at the end and inserting a period; and
                    (D) by redesignating clauses (iii), (v), 
                and (vi) as clauses (i), (ii), and (iii), 
                respectively.
    (b) The second sentence of section 309(g)(1) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1929(g)(1)) is amended by striking ``section 308,''.
    (c) Section 309A of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929a) is amended--
            (1) in the second sentence of subsection (a), by 
        striking ``304(b), 306(a)(1), 306(a)(14), 310B, and 
        312(b)'' and inserting ``306(a)(1), 306(a)(14), and 
        310B''; and
            (2) in the first sentence of subsection (b), by 
        striking ``and section 308''.
    (d) Section 310B(d) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(d)) is amended--
            (1) by striking ``sections 304(b), 310B, and 
        312(b)'' each place it appears in paragraphs (2), (3), 
        and (4) and inserting ``this section''; and
            (2) in paragraph (6), by striking ``this section, 
        section 304, or section 312'' and inserting ``this 
        section''.
    (e) The first sentence of section 310D(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1934(a)) 
is amended by striking ``paragraphs (1) through (5) of section 
303(a), or subparagraphs (A) through (E) of section 304(a)(1)'' 
and inserting ``section 303(a), or paragraphs (1) through (5) 
of section 304(a)''.
    (f) Section 311(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(b)(1)) is amended by striking 
``and for the purposes specified in section 312''.
    (g) Section 316(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1946(a)) is amended by striking 
paragraph (3).
    (h) Section 343 of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1991) is amended--
            (1) in subsection (a)(10), by striking ``recreation 
        loan (RL) under section 304,''; and
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), 
                by striking ``351(h),''; and
                    (B) by striking paragraph (4) and inserting 
                the following:
            ``(4) Preservation loan service program.--The term 
        ``preservation loan service program'' means homestead 
        retention as authorized under section 352.''.
    (i) The first sentence of section 344 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1992) is amended by 
striking ``304(b), 306(a)(1), 310B, 312(b), or 312(c)'' and 
inserting ``306(a)(1), 310B, or 312(c)''.
    (j) Section 353(l) of the Consolidated Farm and Rural 
Development Act (as redesignated by section 645(3)) is amended 
by striking ``and subparagraphs (A)(i) and (C)(i) of section 
335(e)(1),''.

SEC. 662. ELECTRONIC FILING OF EFFECTIVE FINANCING STATEMENTS UNDER THE 
                    CLEAR TITLE PROVISIONS OF THE FOOD SECURITY ACT OF 
                    1985.

    Section 1324(c)(4) of the Food Security Act of 1985 (7 
U.S.C. 1631(c)(4)) is amended--
            (1) in subparagraph (A), by striking ``thereof'' 
        and inserting ``of the statement, or, in the case of a 
        State which (under the applicable State law provisions 
        of the Uniform Commercial Code) allows the electronic 
        filing of financing statements without the signature of 
        the debtor, is an electronically reproduced copy of the 
        statement''; and
            (2) in each of subparagraphs (B) and (C), by 
        inserting ``other than in the case of an electronically 
        reproduced copy of the statement,'' before ``is''.

SEC. 663. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), the 
amendments made by this title shall become effective on the 
date of enactment of this Act.
    (b) Delayed Effective Dates.--The amendments made by 
sections 601, 606, 611, 612, 622, 623, 625, 633, 640(1), 642, 
645(1), 648(a), and 649 shall become effective 90 days after 
the date of enactment of this Act.
    (c) Transition Provision.--The amendments made by sections 
638 and 644 shall not apply with respect to a complete 
application to acquire inventory property submitted prior to 
the date of enactment of this Act.
    (d) Regulations.--Notwithstanding any other provision of 
law, regulations to implement the amendments made by this title 
shall be published as interim final rules with request for 
comments and may be made effective immediately on publication.

                      TITLE VII--RURAL DEVELOPMENT

  Subtitle A--Amendments to the Food, Agriculture, Conservation, and 
                           Trade Act of 1990

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 701. RURAL INVESTMENT PARTNERSHIPS.

    Subtitle B of title XXIII of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2007 et seq.) is 
repealed.

SEC. 702. WATER AND WASTE FACILITY FINANCING.

    Section 2322 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 1926-1) is repealed.

SEC. 703. RURAL WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 2324 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 1926 note) is 
repealed.

SEC. 704. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    Chapter 1 of subtitle D of title XXIII of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
950aaa et seq.) is amended to read as follows:

``CHAPTER 1--TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS

``SEC. 2331. PURPOSE.

    ``The purpose of this chapter is to encourage and improve 
telemedicine services and distance learning services in rural 
areas through the use of telecommunications, computer networks, 
and related advanced technologies by students, teachers, 
medical professionals, and rural residents.

``SEC. 2332. DEFINITIONS.

    ``In this chapter:
            ``(1) Construct.--The term `construct' means to 
        construct, acquire, install, improve, or extend a 
        facility or system.
            ``(2) Cost of money loan.--The term `cost of money 
        loan' means a loan made under this chapter bearing 
        interest at a rate equal to the then current cost to 
        the Federal Government of loans of similar maturity.
            ``(3) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.

``SEC. 2333. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL 
                    AREAS.

    ``(a) Services to Rural Areas.--The Secretary may provide 
financial assistance for the purpose of financing the 
construction of facilities and systems to provide telemedicine 
services and distance learning services in rural areas.
    ``(b) Financial Assistance.--
            ``(1) In general.--Financial assistance shall 
        consist of grants or cost of money loans, or both.
            ``(2) Form.--The Secretary shall determine the 
        portion of the financial assistance provided to a 
        recipient that consists of grants and the portion that 
        consists of cost of money loans so as to result in the 
        maximum feasible repayment to the Federal Government of 
        the financial assistance, based on the ability to repay 
        of the recipient and full utilization of funds made 
        available to carry out this chapter.
    ``(c) Recipients.--
            ``(1) In general.--The Secretary may provide 
        financial assistance under this chapter to--
                    ``(A) entities using telemedicine services 
                or distance learning services; and
                    ``(B) entities providing or proposing to 
                provide telemedicine service or distance 
                learning service to other persons at rates 
                calculated to ensure that the benefit of the 
                financial assistance is passed through to the 
                other persons.
            ``(2) Electric or telecommunications borrowers.--
                    ``(A) Loans to borrowers.--Subject to 
                subparagraph (B), the Secretary may provide a 
                cost of money loan under this chapter to a 
                borrower of an electric or telecommunications 
                loan under the Rural Electrification Act of 
                1936 (7 U.S.C. 901 et seq.). A borrower 
                receiving a cost of money loan under this 
                paragraph shall--
                            ``(i) make the funds provided 
                        available to entities that qualify 
                        under paragraph (1) for projects 
                        satisfying the requirements of this 
                        chapter;
                            ``(ii) use the funds provided to 
                        acquire, install, improve, or extend a 
                        system referred to in subsection (a); 
                        or
                            ``(iii) use the funds provided to 
                        install, improve, or extend a facility 
                        referred to in subsection (a).
                    ``(B) Limitations.--A borrower of an 
                electric or telecommunications loan under the 
                Rural Electrification Act of 1936 shall--
                            ``(i) make a system or facility 
                        funded under subparagraph (A) available 
                        to entities that qualify under 
                        paragraph (1); and
                            ``(ii) neither retain from the 
                        proceeds of a loan provided under 
                        subparagraph (A), nor assess a 
                        qualifying entity under paragraph (1), 
                        any amount except as may be required to 
                        pay the actual costs incurred in 
                        administering the loan or making the 
                        system or facility available.
            ``(3) Appeal.--If the Secretary rejects the 
        application of a borrower who applies for a cost of 
        money loan or grant under this section, the borrower 
        may appeal the decision to the Secretary not later than 
        10 days after the borrower is notified of the 
        rejection.
            ``(4) Assistance to provide or improve services.--
        Financial assistance may be provided under this chapter 
        for a facility regardless of the location of the 
        facility if the Secretary determines that the 
        assistance is necessary to provide or improve 
        telemedicine services or distance learning services in 
        a rural area.
    ``(d) Priority.--The Secretary shall establish procedures 
to prioritize financial assistance under this chapter 
considering--
            ``(1) the need for the assistance in the affected 
        rural area;
            ``(2) the financial need of the applicant;
            ``(3) the population sparsity of the affected rural 
        area;
            ``(4) the local involvement in the project serving 
        the affected rural area;
            ``(5) geographic diversity among the recipients of 
        financial assistance;
            ``(6) the utilization of the telecommunications 
        facilities of any telecommunications provider serving 
        the affected rural area;
            ``(7) the portion of total project financing 
        provided by the applicant from the funds of the 
        applicant;
            ``(8) the portion of project financing provided by 
        the applicant with funds obtained from non-Federal 
        sources;
            ``(9) the joint utilization of facilities financed 
        by other financial assistance;
            ``(10) the coordination of the proposed project 
        with regional projects or networks;
            ``(11) service to the greatest practical number of 
        persons within the general geographic area covered by 
        the financial assistance;
            ``(12) conformity with the State strategic plan as 
        prepared under section 381D of the Consolidated Farm 
        and Rural Development Act; and
            ``(13) other factors determined appropriate by the 
        Secretary.
    ``(e) Maximum Amount of Assistance to Individual 
Recipients.--The Secretary may establish the maximum amount of 
financial assistance to be made available to an individual 
recipient for each fiscal year under this chapter, by 
publishing notice of the maximum amount in the Federal Register 
not more than 45 days after funds are made available for the 
fiscal year to carry out this chapter.
    ``(f) Use of Funds.--Financial assistance provided under 
this chapter shall be used for--
            ``(1) the development and acquisition of 
        instructional programming;
            ``(2) the development and acquisition, through 
        lease or purchase, of computer hardware and software, 
        audio and visual equipment, computer network 
        components, telecommunications terminal equipment, 
        telecommunications transmission facilities, data 
        terminal equipment, or interactive video equipment, or 
        other facilities that would further telemedicine 
        services or distance learning services;
            ``(3) providing technical assistance and 
        instruction for the development or use of the 
        programming, equipment, or facilities referred to in 
        paragraphs (1) and (2); or
            ``(4) other uses that are consistent with this 
        chapter, as determined by the Secretary.
    ``(g) Salaries and Expenses.--Notwithstanding subsection 
(f), financial assistance provided under this chapter shall not 
be used for paying salaries or administrative expenses.
    ``(h) Expediting Coordinated Telephone Loans.--
            ``(1) In general.--The Secretary may establish and 
        carry out procedures to ensure that expedited 
        consideration and determination is given to 
        applications for loans and advances of funds submitted 
        by local exchange carriers under this chapter and the 
        Rural Electrification Act of 1936 (7 U.S.C. 901 et 
        seq.) to enable the exchange carriers to provide 
        advanced telecommunications services in rural areas in 
        conjunction with any other projects carried out under 
        this chapter.
            ``(2) Deadline imposed on secretary.--Not later 
        than 45 days after the receipt of a completed 
        application for an expedited telephone loan under 
        paragraph (1), the Secretary shall notify the applicant 
        in writing of the decision of the Secretary regarding 
        the application.
    ``(i) Notification of Local Exchange Carrier.--
            ``(1) Applicants.--Each applicant for a grant for a 
        telemedicine or distance learning project established 
        under this chapter shall notify the appropriate local 
        telephone exchange carrier regarding the application 
        filed with the Secretary for the grant.
            ``(2) Secretary.--The Secretary shall--
                    ``(A) publish notice of applications 
                received for grants under this chapter for 
                telemedicine or distance learning projects; and
                    ``(B) make the applications available for 
                inspection.

``SEC. 2334. ADMINISTRATION.

    ``(a) Nonduplication.--The Secretary shall ensure that 
facilities constructed using financial assistance provided 
under this chapter do not duplicate adequate established 
telemedicine services or distance learning services.
    ``(b) Loan Maturity.--The maturities of cost of money loans 
shall be determined by the Secretary, based on the useful life 
of the facility being financed, except that the loan shall not 
be for a period of more than 10 years.
    ``(c) Loan Security and Feasibility.--The Secretary shall 
make a cost of money loan only if the Secretary determines that 
the security for the loan is reasonably adequate and that the 
loan will be repaid within the period of the loan.
    ``(d) Encouraging Consortia.--The Secretary shall encourage 
the development of consortia to provide telemedicine services 
or distance learning services through telecommunications in 
rural areas served by a telecommunications provider.
    ``(e) Coordination With Other Agencies.--The Secretary 
shall coordinate, to the extent practicable, with other Federal 
and State agencies with similar grant or loan programs to pool 
resources for funding meritorious proposals in rural areas.
    ``(f) Informational Efforts.--The Secretary shall establish 
and implement procedures to carry out informational efforts to 
advise potential end users located in rural areas of each State 
about the program authorized by this chapter.

``SEC. 2335. REGULATIONS.

    ``Not later than 180 days after the date of enactment of 
the Federal Agriculture Improvement and Reform Act of 1996, the 
Secretary shall issue regulations to carry out this chapter.

``SEC. 2335A. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
chapter $100,000,000 for each of fiscal years 1996 through 
2002.''.

SEC. 705. LIMITATION ON AUTHORIZATION OF APPROPRIATIONS FOR RURAL 
                    TECHNOLOGY GRANTS.

    Section 2347 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 4034) is 
amended--
            (1) by striking ``(a) In General.--''; and
            (2) by striking subsection (b).

SEC. 706. DEMONSTRATION PROJECTS.

    Section 2348 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 707. MONITORING THE ECONOMIC PROGRESS OF RURAL AMERICA.

    Section 2382 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 13 U.S.C. 141 note) is 
repealed.

SEC. 708. ANALYSIS BY OFFICE OF TECHNOLOGY ASSESSMENT.

    Section 2385 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 950aaa-4 note) 
is repealed.

SEC. 709. RURAL HEALTH INFRASTRUCTURE IMPROVEMENT.

    Section 2391 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 7 U.S.C. 2662 note) is 
repealed.

SEC. 710. CENSUS OF AGRICULTURE.

    Section 2392 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 4057) is 
repealed.

SEC. 711. STUDY OF THE TRANSPORTATION OF FERTILIZER AND AGRICULTURAL 
                    CHEMICALS TO FARMERS.

    Section 2517 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (Public Law 101-624; 104 Stat. 4077) is 
repealed.

   CHAPTER 2--ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION

SEC. 721. DEFINITIONS.

    Section 1657(c) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5901(c)) is amended--
            (1) by striking paragraphs (3) and (4);
            (2) by redesignating paragraph (5) as paragraph 
        (3);
            (3) by redesignating paragraphs (6) through (12) as 
        paragraphs (7) through (13), respectively; and
            (4) by inserting after paragraph (3) (as 
        redesignated by paragraph (2)) the following:
            ``(4) Corporate board.--The term `Corporate Board' 
        means the Board of Directors of the Corporation 
        described in section 1659.
            ``(5) Corporation.--The term `Corporation' means 
        the Alternative Agricultural Research and 
        Commercialization Corporation established under section 
        1658.
            ``(6) Executive director.--The term `Executive 
        Director' means the Executive Director of the 
        Corporation appointed under section 1659(e).''.

SEC. 722. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    CORPORATION.

    (a) In General.--Section 1658 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5902) is amended 
to read as follows:

``SEC. 1658. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    CORPORATION.

    ``(a) Establishment.--To carry out this subtitle, there is 
created a body corporate to be known as the Alternative 
Agricultural Research and Commercialization Corporation, which 
shall be an agency of the United States, within the Department 
of Agriculture, subject to the general supervision and 
direction of the Secretary, except as specifically provided for 
in this subtitle.
    ``(b) Purpose.--The purpose of the Corporation is to--
            ``(1) expedite the development and market 
        penetration of industrial, nonfood, nonfeed products 
        from agricultural and forestry materials; and
            ``(2) assist the private sector in bridging the gap 
        between the results of research into nonfood, nonfeed 
        products and the commercialization of the research.
    ``(c) Place of Incorporation.--The Corporation shall be 
incorporated in the District of Columbia.
    ``(d) Central Office.--The Secretary shall provide 
facilities for the principal office of the Corporation within 
the Washington, D.C., metropolitan area.
    ``(e) Wholly-Owned Government Corporation.--The Corporation 
shall be considered a wholly-owned government corporation in 
accordance with chapter 91 of title 31, United States Code.
    ``(f) General Powers.--In addition to any other powers 
granted to the Corporation under this subtitle, the 
Corporation--
            ``(1) shall have succession in its corporate name;
            ``(2) may adopt, alter, and rescind any bylaw and 
        adopt and alter a corporate seal, which shall be 
        judicially noticed;
            ``(3) may enter into any agreement or contract with 
        a person or private or governmental agency, except that 
        the Corporation shall not provide any financial 
        assistance unless specifically authorized by this 
        subtitle;
            ``(4) may lease, purchase, accept a gift or 
        donation of, or otherwise acquire, use, own, hold, 
        improve, or otherwise deal in or with, and sell, 
        convey, mortgage, pledge, lease, exchange, or otherwise 
        dispose of, any property or interest in property, as 
        the Corporation considers necessary in the transaction 
        of the business of the Corporation, except that this 
        paragraph shall not provide authority for carrying out 
        a program of real estate investment;
            ``(5) may sue and be sued in the corporate name of 
        the Corporation, except that--
                    ``(A) no attachment, injunction, 
                garnishment, or similar process shall be issued 
                against the Corporation or property of the 
                Corporation; and
                    ``(B) exclusive original jurisdiction shall 
                reside in the district courts of the United 
                States, but the Corporation may intervene in 
                any court in any suit, action, or proceeding in 
                which the Corporation has an interest;
            ``(6) may independently retain legal 
        representation;
            ``(7) may provide for and designate such 
        committees, and the functions of the committees, as the 
        Corporate Board considers necessary or desirable,
            ``(8) may indemnify the Executive Director and 
        other officers of the Corporation, as the Corporate 
        Board considers necessary and desirable, except that 
        the Executive Director and officers shall not be 
        indemnified for an act outside the scope of employment;
            ``(9) may, with the consent of any board, 
        commission, independent establishment, or executive 
        department of the Federal Government, including any 
        field service, use information, services, facilities, 
        officials, and employees in carrying out this subtitle, 
        and pay for the use, which payments shall be 
        transferred to the applicable appropriation account 
        that incurred the expense;
            ``(10) may obtain the services and fix the 
        compensation of any consultant and otherwise procure 
        temporary and intermittent services under section 
        3109(b) of title 5, United States Code;
            ``(11) may use the United States mails on the same 
        terms and conditions as the Executive agencies of the 
        Federal Government;
            ``(12) shall have the rights, privileges, and 
        immunities of the United States with respect to the 
        right to priority of payment with respect to debts due 
        from bankrupt, insolvent, or deceased creditors;
            ``(13) may collect or compromise any obligations 
        assigned to or held by the Corporation, including any 
        legal or equitable rights accruing to the Corporation;
            ``(14) shall determine the character of, and 
        necessity for, obligations and expenditures of the 
        Corporation and the manner in which the obligations and 
        expenditures shall be incurred, allowed, and paid, 
        subject to provisions of law specifically applicable to 
        Government corporations;
            ``(15) may make final and conclusive settlement and 
        adjustment of any claim by or against the Corporation 
        or a fiscal officer of the Corporation;
            ``(16) may sell assets, loans, and equity interests 
        acquired in connection with the financing of projects 
        funded by the Corporation; and
            ``(17) may exercise all other lawful powers 
        necessarily or reasonably related to the establishment 
        of the Corporation to carry out this subtitle and the 
        powers, purposes, functions, duties, and authorized 
        activities of the Corporation.
    ``(g) Specific Powers.--To carry out this subtitle, the 
Corporation may--
            ``(1) make grants to, and enter into cooperative 
        agreements and contracts with, eligible applicants for 
        research, development, and demonstration projects in 
        accordance with section 1660;
            ``(2) make loans and interest subsidy payments and 
        invest venture capital in accordance with section 1661;
            ``(3) collect and disseminate information 
        concerning State, regional, and local commercialization 
        projects;
            ``(4) search for new nonfood, nonfeed products that 
        may be produced from agricultural commodities and for 
        processes to produce the products;
            ``(5) administer, maintain, and dispense funds from 
        the Fund to facilitate the conduct of activities under 
        this subtitle; and
            ``(6) engage in other activities incident to 
        carrying out the functions of the Corporation.''.
    (b) Wholly-Owned Government Corporation.--Section 9101(3) 
of title 31, United States Code, is amended--
            (1) by redesignating subparagraph (N) (relating to 
        the Uranium Enrichment Corporation) as subparagraph 
        (O); and
            (2) by adding at the end the following:
                    ``(Q) the Alternative Agricultural Research 
                and Commercialization Corporation.''.
    (c) Conforming Amendment.--Section 211(b)(5) of the 
Department of Agriculture Reorganization Act of 1994 (7 
U.S.C.6911(b)(5)) is amended by striking ``Alternative Agricultural 
Research and Commercialization Board'' and inserting ``Corporate Board 
of the Alternative Agricultural Research and Commercialization 
Corporation''.

SEC. 723. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    (a) In General.--Section 1659 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5903) is amended 
to read as follows:

``SEC. 1659. BOARD OF DIRECTORS, EMPLOYEES, AND FACILITIES.

    ``(a) In General.--The powers of the Corporation shall be 
vested in a Corporate Board.
    ``(b) Members of the Corporate Board.--The Corporate Board 
shall consist of 11 members as follows:
            ``(1) The Under Secretary of Agriculture for Rural 
        Development.
            ``(2) The Under Secretary of Agriculture for 
        Research, Education, and Economics.
            ``(3) 5 members appointed by the Secretary, of 
        whom--
                    ``(A) at least 1 member shall be a 
                representative of the leading scientific 
                disciplines relevant to the activities of the 
                Corporation;
                    ``(B) at least 1 member shall be a producer 
                or processor of agricultural commodities;
                    ``(C) at least 1 member shall be a person 
                who is privately engaged in the 
                commercialization of new nonfood, nonfeed 
                products from agricultural commodities; and
                    ``(D) at least 1 member shall have 
                expertise in financial management.

        A different member shall be appointed pursuant to each 
        subparagraph of this paragraph.
            ``(4) 2 members appointed by the Secretary who--
                    ``(A) have expertise in areas of applied 
                research relating to the development or 
                commercialization of new nonfood, nonfeed 
                products; and
                    ``(B) shall be appointed from a group of at 
                least 4 individuals nominated by the Director 
                of the National Science Foundation if the 
                nominations are made not later than 60 days 
                after the date a vacancy occurs.
            ``(5) 2 members appointed by the Secretary who--
                    ``(A) have expertise in financial and 
                managerial matters; and
                    ``(B) shall be appointed from a group of at 
                least 4 individuals nominated by the Secretary 
                of Commerce if the nominations are made not 
                later than 60 days after the date a vacancy 
                occurs.
    ``(c) Responsibilities of the Corporate Board.--
            ``(1) In general.--The Corporate Board shall--
                    ``(A) be responsible for the general 
                supervision of the Corporation and Regional 
                Centers established under section 1663;
                    ``(B) determine (in consultation with 
                Regional Centers) high priority 
                commercialization areas to receive assistance 
                under section 1663;
                    ``(C) review any grant, contract, or 
                cooperative agreement to be made or entered 
                into by the Corporation under section 1660 and 
                any financial assistance to be provided under 
                section 1661;
                    ``(D) make the final decision, by majority 
                vote, on whether and how to provide assistance 
                to an applicant; and
                    ``(E) develop and establish a budget plan 
                and a long-term operating plan to carry out 
                this subtitle.
            ``(2) Authority of the secretary.--
                    ``(A) In general.--The Secretary shall 
                vacate and remand to the Corporate Board for 
                reconsideration any decision made pursuant to 
                paragraph (1)(D) if the Secretary determines 
                that there has been a violation of subsection 
                (j), or any conflict of interest provisions of 
                the bylaws of the Corporate Board, with respect 
                to the decision.
                    ``(B) Reasons.--In the case of any 
                violation and referral of a funding decision to 
                the Corporate Board, the Secretary shall inform 
                the Corporate Board of the reasons for any 
                remand pursuant to subparagraph (A).
    ``(d) Chairperson.--The members of the Corporate Board 
shall select a Chairperson from among the members of the 
Corporate Board. The term of office of the Chairperson shall be 
2 years. The members referred to in paragraphs (1) and (2) of 
subsection (b) may not serve as Chairperson.
    ``(e) Executive Director.--
            ``(1) Appointment.--The Corporate Board shall 
        appoint an Executive Director, subject to the approval 
        of the Secretary.
            ``(2) Duties.--The Executive Director shall be the 
        chief executive officer of the Corporation, with such 
        power and authority as may be conferred by the 
        Corporate Board.
            ``(3) Compensation.--The Executive Director shall 
        receive basic pay at the rate provided for level IV of 
        the Executive Schedule under section 5315 of title 5, 
        United States Code.
    ``(f) Officers.--The Corporate Board shall establish the 
offices and appoint the officers of the Corporation, including 
a Secretary, and define the duties of the officers in a manner 
consistent with this subtitle.
    ``(g) Meetings.--The Corporate Board shall meet at least 3 
times each fiscal year at the call of the Chairperson or at the 
request of the Executive Director. The location of the meetings 
shall be subject to approval of the Executive Director. A 
quorum of the Corporate Board shall consist of a majority of 
the members. The decisions of the Corporate Board shall be made 
by majority vote.
    ``(h) Term; Vacancies.--
            ``(1) In general.--The term of office of a member 
        of the Corporate Board shall be 4 years, except that 
        the members initially appointed shall be appointed to 
        serve staggered terms. A member appointed to fill a 
        vacancy for an unexpired term may be appointed only for 
        the remainder of the term. A vacancy on the Corporate 
        Board shall be filled in the same manner as the 
        original appointment. The Secretary may remove a member 
        of the Corporate Board only for cause.
            ``(2) Transition measure.--The Secretary may 
        appoint to the Corporate Board an individual who, on 
        the day before the date of enactment of the Federal 
        Agriculture Improvement and Reform Act of 1996, was 
        serving on the former Alternative Agricultural Research 
        and Commercialization Board, for a term that does not 
        exceed the term for which the individual was appointed 
        to the former Board.
    ``(i) Compensation.--A member of the Corporate Board who is 
an officer or employee of the United States shall not receive 
any additional compensation by reason of service on the 
Corporate Board. Any other member shall receive, for each day 
(including travel time) the member is engaged in the 
performance of the functions of the Corporate Board, 
compensation at a rate not to exceed the daily equivalent of 
the annual rate in effect for Level IV of the Executive 
Schedule. A member of the Corporate Board shall be reimbursed 
for travel, subsistence, and other necessary expenses incurred 
by the member in the performance of the duties of the member.
    ``(j) Conflict of Interest; Financial Disclosure.--
            ``(1) Conflict of interest.--Except as provided in 
        paragraph (3), no member of the Corporate Board shall 
        vote on any matter respecting any application, 
        contract, claim, or other particular matter pending 
        before the Corporation, in which, to the knowledge of 
        the member, the member, spouse, or child of the member, 
        partner, or organization in which the member is serving 
        as officer, director, trustee, partner, or employee, or 
        any person or organization with whom the member is 
        negotiating or has any arrangement concerning 
        prospective employment, has a financial interest.
            ``(2) Violations.--Violation of paragraph (1) by a 
        member of the Corporate Board shall be cause for 
        removal of the member, but shall not impair or 
        otherwise affect the validity of any otherwise lawful 
        action by the Corporation in which the member 
        participated.
            ``(3) Exceptions.--The prohibitions contained in 
        paragraph (1) shall not apply if a member of the 
        Corporate Board advises the Corporate Board of the 
        nature of the particular matter in which the member 
        proposes to participate, and if the member makes a full 
        disclosure of the financial interest, prior to any 
        participation, and the Corporate Board determines, by 
        majority vote, that the financial interest is too 
        remote or too inconsequential to affect the integrity 
        of the member's services to the Corporation in that 
        matter. The member involved shall not vote on the 
        determination.
            ``(4) Financial disclosure.--A Board member shall 
        be subject to the financial disclosure requirements set 
        forth in subchapter B of chapter XVI of title 5, Code 
        of Federal Regulations (or any corresponding or similar 
        regulation or ruling), applicable to a special 
        Government employee (as defined in section 202(a) of 
        title 18, United States Code).
    ``(k) Delegation of Authority.--
            ``(1) In general.--The Corporate Board may, by 
        resolution, delegate to the Chairperson, the Executive 
        Director, or any other officer or employee any 
        function, power, or duty assigned to the Corporation 
        under this subtitle, other than a function, power, or 
        duty expressly vested in the Corporate Board by 
        subsections (c) through (n).
            ``(2) Prohibition on delegation.--Notwithstanding 
        any other law, the Secretary and any other officer or 
        employee of the United States shall not make any 
        delegation to the Corporate Board, the Chairperson, the 
        Executive Director, or the Corporation of any power, 
        function, or authority not expressly authorized by this 
        subtitle, unless the delegation is made pursuant to an 
        authority in law that expressly makes reference to this 
        section.
            ``(3) Reorganization act.--Notwithstanding any 
        other law, the President (through authorities provided 
        under chapter 9 of title 5, United States Code) may not 
        authorize the transfer to the Corporation of any power, 
        function, or authority in addition to powers, 
        functions, and authorities provided by law.
    ``(l) Bylaws.--Notwithstanding section 1658(f)(2), the 
Corporate Board shall adopt, and may from time to time amend, 
any bylaw that is necessary for the proper management and 
functioning of the Corporation. The Corporate Board shall not 
adopt any bylaw that has not been reviewed and approved by the 
Secretary.
    ``(m) Organization.--The Corporate Board shall provide a 
system of organization to fix responsibility and promote 
efficiency.
    ``(n) Personnel and Facilities of Corporation.--
            ``(1) Appointment and compensation of personnel.--
        The Corporation may select and appoint officers, 
        attorneys, employees, and agents, who shall be vested 
        with such powers and duties as the Corporation may 
        determine.
            ``(2) Use of facilities and services of the 
        department of agriculture.--Notwithstanding any other 
        provision of law, to perform the responsibilities of 
        the Corporation under this subtitle, the Corporation 
        may partially or jointly utilize the facilities of and 
        the services of employees of the Department of 
        Agriculture, without cost to the Corporation.
            ``(3) Government employment laws.--An officer or 
        employee of the Corporation shall be subject to all 
        laws of the United States relating to governmental 
        employment.''.
    (b) Conforming Amendment.--Section 5315 of title 5, United 
States Code, is amended by adding at the end the following:
            ``Executive Director of the Alternative 
        Agricultural Research and Commercialization 
        Corporation.''.

SEC. 724. RESEARCH AND DEVELOPMENT GRANTS, CONTRACTS, AND AGREEMENTS.

    Section 1660 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5904) is amended--
            (1) by striking ``Center'' each place it appears 
        and inserting ``Corporation'';
            (2) in subsection (c), by striking ``Board'' and 
        inserting ``Corporate Board''; and
            (3) in subsection (f), by striking ``non-Center'' 
        and inserting ``non-Corporation''.

SEC. 725. COMMERCIALIZATION ASSISTANCE.

    Section 1661 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5905) is amended--
            (1) by striking ``Center'' each place it appears 
        and inserting ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (3) by striking subsection (c);
            (4) by redesignating subsections (d), (e), and (f) 
        as subsections (c), (d), and (e), respectively; and
            (5) in subsection (c) (as so redesignated)--
                    (A) in the subsection heading of paragraph 
                (1), by striking ``director'' and inserting 
                ``executive director''; and
                    (B) by striking ``Director'' each place it 
                appears and inserting ``Executive Director''.

SEC. 726. GENERAL RULES REGARDING THE PROVISION OF ASSISTANCE.

    Section 1662 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5906) is amended--
            (1) by striking ``Center'' each place it appears 
        (except in subsection (b)) and inserting 
        ``Corporation'';
            (2) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board''; and
            (3) in subsection (b)--
                    (A) in the second sentence, by striking 
                ``Board, a Regional Center, or the Advisory 
                Council'' and inserting ``Board or a Regional 
                Center''; and
                    (B) by striking the third sentence.

SEC. 727. REGIONAL CENTERS.

    Section 1663 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5907) is amended--
            (1) by striking ``Board'' each place it appears and 
        inserting ``Corporate Board'';
            (2) in subsection (e)(8), by striking ``Center'' 
        and inserting ``Corporation''; and
            (3) in subsection (f)--
                    (A) in paragraph (2), by striking ``in 
                consultation with the Advisory Council 
                appointed under section 1661(c)''; and
                    (B) by striking paragraphs (3) and (4) and 
                inserting the following:
            ``(3) Recommendation.--The Regional Director, based 
        on the comments of the reviewers, shall make and submit 
        a recommendation to the Board, which shall not be 
        binding on the Board.''.

SEC. 728. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    REVOLVING FUND.

    Section 1664 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5908) is amended to read as 
follows:

``SEC. 1664. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    REVOLVING FUND.

    ``(a) Establishment.--There is established in the Treasury 
of the United States a revolving fund to be known as the 
Alternative Agricultural Research and Commercialization 
Revolving Fund. The Fund shall be available to the Corporation, 
without fiscal year limitation, to carry out this subtitle.
    ``(b) Contents of Fund.--There shall be deposited in the 
Fund--
            ``(1) such amounts as may be appropriated or 
        transferred to support programs and activities of the 
        Corporation;
            ``(2) payments received from any source for 
        products, services, or property furnished in connection 
        with the activities of the Corporation;
            ``(3) fees and royalties collected by the 
        Corporation from licensing or other arrangements 
        relating to commercialization of products developed 
        through projects funded in whole or part by grants, 
        contracts, or cooperative agreements executed by the 
        Corporation;
            ``(4) proceeds from the sale of assets, loans, and 
        equity interests made in furtherance of the purposes of 
        the Corporation;
            ``(5) donations or contributions accepted by the 
        Corporation to support authorized programs and 
        activities; and
            ``(6) any other funds acquired by the Corporation.
    ``(c) Funding Allocations.--Funding of projects and 
activities under this subtitle shall be subject to the 
following restrictions:
            ``(1) Of the total amount of funds made available 
        for a fiscal year under this subtitle--
                    ``(A) not more than the lesser of 15 
                percent or $3,000,000 may be set aside to be 
                used for authorized administrative expenses of 
                the Corporation;
                    ``(B) not more than 1 percent may be set 
                aside to be used for generic studies and 
                specific reviews of individual proposals for 
                financial assistance; and
                    ``(C) except as provided in subsection (e), 
                not less than 84 percent shall be set aside to 
                be awarded to qualified applicants who file 
                project applications with, or respond to 
                requests for proposals from, the Corporation 
                under sections 1660 and 1661.
            ``(2) Any funds remaining uncommitted at the end of 
        a fiscal year shall be credited to the Fund and added 
        to the total program funds available to the Corporation 
        for the next fiscal year.
    ``(d) Authorized Administrative Expenses.--For the purposes 
of this section, authorized administrative expenses shall 
include all ordinary and necessary expenses, including all 
compensation for personnel and consultants, expenses for 
computer usage, or space needs of the Corporation and similar 
expenses. Funds authorized for administrative expenses shall 
not be available for the acquisition of real property.
    ``(e) Project Monitoring.--The Corporate Board may 
establish, in the bylaws of the Corporate Board, that a 
percentage (which shall not exceed 1 percent) of the funds 
provided under subsection (c) for any commercialization project 
shall be expended to ensure that project funds are being 
utilized in accordance with the project agreement.
    ``(f) Termination of the Fund.--On expiration of the 
authority provided by this subtitle, all assets (after payment 
of all outstanding obligations) of the Fund shall revert to the 
general fund of the Treasury.
    ``(g) Authorization of Appropriations; Capitalization.--
            ``(1) Authorization of appropriation.--There are 
        authorized to be appropriated to the Fund $75,000,000 
        for each of fiscal years 1996 through 2002.
            ``(2) Capitalization.--The Executive Director may 
        pay in as capital of the Corporation, out of dollar 
        receipts made available through annual appropriations, 
        $75,000,000 for each of fiscal years 1996 through 2002. 
        On the payment of an amount of capital by the Executive 
        Director, the Corporation shall issuean equivalent 
amount of capital stock to the Secretary of the Treasury.
            ``(3) Transfer.--All obligations, assets, and 
        related rights and responsibilities of the former 
        Alternative Agricultural Research and Commercialization 
        Center established under former section 1658 of this 
        Act (as in effect on the day before the date of 
        enactment of the Federal Agriculture Improvement and 
        Reform Act of 1996) are transferred to the 
        Corporation.''.

SEC. 729. PROCUREMENT PREFERENCES FOR PRODUCTS RECEIVING CORPORATION 
                    ASSISTANCE.

    Subtitle G of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5901 et seq.) is 
amended by adding at the end the following:

``SEC. 1665. PROCUREMENT OF ALTERNATIVE AGRICULTURAL RESEARCH AND 
                    COMMERCIALIZATION PRODUCTS.

    ``(a) Definition of Executive Agency.--In this section, the 
term `executive agency' has the meaning provided the term in 
section 4(1) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 403(1)).
    ``(b) Procurement.--To further the achievement of the 
purposes specified in section 1657(b), an executive agency may, 
for any procurement involving the acquisition of property, 
establish set-asides and preferences for property that has been 
commercialized with assistance provided under this subtitle.
    ``(c) Set-Asides.--Procurements solely for property may be 
set-aside exclusively for products developed with 
commercialization assistance provided under section 1661.
    ``(d) Preferences.--Preferences for property developed with 
assistance provided under this subtitle in procurements 
involving the acquisition of property may be--
            ``(1) a price preference, if the procurement is 
        solely for property, of not greater than a percentage 
        to be determined within the sole discretion of the head 
        of the procuring agency; or
            ``(2) a technical evaluation preference included as 
        an award factor or subfactor as determined within the 
        sole discretion of the head of the procuring agency.
    ``(e) Notice.--Each competitive solicitation or invitation 
for bids selected by an executive agency for a set-aside or 
preference under this section shall contain a provision 
notifying offerors where a list of products eligible for the 
set aside or preference may be obtained.
    ``(f) Eligibility.--Offerors shall receive the set aside or 
preference required under this section if, in the case of 
products developed with financial assistance under--
            ``(1) section 1660, less than 10 years have elapsed 
        since the expiration of the grant, cooperative 
        agreement, or contract;
            ``(2) paragraph (1) or (2) of section 1661(a), less 
        than 5 years have elapsed since the date the loan was 
        made or insured;
            ``(3) section 1661(a)(3), less than 5 years have 
        elapsed since the date of sale of any remaining 
        government equity interest in the company; or
            ``(4) section 1661(a)(4), less than 5 years have 
        elapsed since the date of the final payment on the 
        repayable grant.''.

SEC. 730. BUSINESS PLAN AND FEASIBILITY STUDY AND REPORT.

    (a) Business Plan.--Not later than 180 days after the date 
of enactment of this Act, the Alternative Agricultural Research 
and Commercialization Corporation established by section 1658 
of the Food, Agriculture, Conservation, and Trade Act of 1990 
shall--
            (1) develop a 5-year business plan pursuant to 
        section 1659(c)(1)(E) of the Act; and
            (2) submit the plan to the Secretary of 
        Agriculture, the Committee on Agriculture of the House 
        of Representatives, and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate.
    (b) Feasibility Study and Report.--
            (1) Study.--The Secretary of Agriculture shall 
        conduct a study of, and prepare a report on, the 
        continued feasibility of the Alternative Agricultural 
        Research and Commercialization Corporation. In 
        conducting the study, the Secretary shall examine 
        options for privatizing the Corporation and converting 
        the Corporation to a Government-sponsored enterprise.
            (2) Report.--Not later than December 31, 2001, the 
        Secretary shall transmit the report required by 
        paragraph (1) to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate.

 Subtitle B--Amendments to the Consolidated Farm and Rural Development 
                                  Act

                     CHAPTER 1--GENERAL PROVISIONS

SEC. 741. WATER AND WASTE FACILITY LOANS AND GRANTS.

    (a) In General.--Section 306(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1926(a)) is amended--
            (1) in the first sentence of paragraph (2), by 
        striking ``$500,000,000'' and inserting 
        ``$590,000,000'';
            (2) by striking paragraph (7) and inserting the 
        following:
            ``(7) Definition of rural and rural areas.--For the 
        purpose of water and waste disposal grants and direct 
        and guaranteed loans provided under paragraphs (1) and 
        (2), the terms `rural' and `rural area' mean a city, 
        town, or unincorporated area that has a population of 
        no more than 10,000 inhabitants.'';
            (3) by striking paragraphs (9), (10), and (11) and 
        inserting the following:
            ``(9) Conformity with state drinking water 
        standards.--No Federal funds shall be made available 
        under this section for a water system unless the 
        Secretary determines that the water system will make 
        significant progress toward meeting the standards 
        established under title XIV of the Public Health 
        Service Act (commonly known as the `Safe Drinking Water 
        Act') (42 U.S.C. 300f et seq.).
            ``(10) Conformity with federal and state water 
        pollution control standards.--No Federal funds shall be 
        made available under this section for a water treatment 
        discharge or waste disposal system unless the Secretary 
        determines that the effluent from the system conforms 
        with applicable Federal and State water pollution 
        control standards.
            ``(11) Rural business opportunity grants.--
                    ``(A) In general.--The Secretary may make 
                grants, not to exceed $1,500,000 annually, to 
                public bodies, private nonprofit community 
                development corporations or entities, or such 
                other agencies as the Secretary may select to 
                enable the recipients--
                            ``(i) to identify and analyze 
                        business opportunities, including 
                        opportunities in export markets, that 
                        will use local rural economic and human 
                        resources;
                            ``(ii) to identify, train, and 
                        provide technical assistance to 
                        existing or prospective rural 
                        entrepreneurs and managers;
                            ``(iii) to establish business 
                        support centers and otherwise assist in 
                        the creation of new rural businesses, 
                        the development of methods of financing 
                        local businesses, and the enhancement 
                        of the capacity of local individuals 
                        and entities to engage in sound 
                        economic activities;
                            ``(iv) to conduct regional, 
                        community, and local economic 
                        development planning and coordination, 
                        and leadership development; and
                            ``(v) to establish centers for 
                        training, technology, and trade that 
                        will provide training to rural 
                        businesses in the utilization of 
                        interactive communications technologies 
                        to develop international trade 
                        opportunities and markets.
                    ``(B) Criteria.--In awarding the grants, 
                the Secretary shall consider, among other 
                criteria to be established by the Secretary--
                            ``(i) the extent to which the 
                        applicant provides development services 
                        in the rural service area of the 
                        applicant; and
                            ``(ii) the capability of the 
                        applicant to accomplish the activities 
                        described in the relevant clauses of 
                        subparagraph (A).
                    ``(C) Coordination.--The Secretary shall 
                ensure, to the maximum extent practicable, that 
                assistance provided under this paragraph is 
                coordinated with and delivered in cooperation 
                with similar services or assistance provided to 
                rural residents by the Cooperative State 
                Research, Education, and Extension Service or 
                other Federal agencies.
                    ``(D) Authorization of appropriations.--
                There are authorized to be appropriated to 
                carry out this paragraph $7,500,000 for each of 
                fiscal years 1996 through 2002.'';
            (4) by striking paragraphs (14) and (15);
            (5) by redesignating paragraphs (16) through (20) 
        as paragraphs (14) through (18), respectively; and
            (6) in paragraph (14) (as so redesignated)--
                    (A) by striking ``(14)(A) The'' and 
                inserting the following:
            ``(14) Rural water and wastewater technical 
        assistance and training programs.--
                    ``(A) In general.--The'';
                    (B) in subparagraph (A)--
                            (i) by striking ``(i) identify'' 
                        and inserting the following:
                            ``(i) identify'';
                            (ii) by striking ``(ii) prepare'' 
                        and inserting the following:
                            ``(ii) prepare''; and
                            (iii) by striking ``(iii) improve'' 
                        and inserting the following:
                            ``(iii) improve'';
                    (C) in subparagraph (B), by striking ``(B) 
                In'' and inserting the following:
                    ``(B) Selection priority.--In''; and
                    (D) in subparagraph (C)--
                            (i) by striking ``(C) Not'' and 
                        inserting the following:
                    ``(C) Funding.--Not''; and
                            (ii) by striking ``2 per centum of 
                        any funds provided in Appropriations 
                        Acts'' and inserting ``3 percent of any 
                        funds appropriated''.
    (b) Conforming Amendment.--The second sentence of section 
309A(a) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 1929a(a)) (as amended by section 661(c)(1)) is amended 
by striking ``, 306(a)(14),''.

SEC. 742. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR SMALL 
                    COMMUNITIES.

    Section 306A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926a) is amended--
            (1) in subsection (e)--
                    (A) in paragraph (1)(A), by striking 
                ``15,000'' and inserting ``10,000''; and
                    (B) in paragraph (2), by striking ``5,000'' 
                and inserting ``3,000''; and
            (2) by striking subsection (i) and inserting the 
        following:
    ``(i) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$35,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 743. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PROGRAM FOR 
                    SMALLEST COMMUNITIES.

    Section 306B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926b) is repealed.

SEC. 744. AGRICULTURAL CREDIT INSURANCE FUND.

    Section 309(f) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929(f)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (6) as 
        paragraphs (1) through (5), respectively.

SEC. 745. RURAL DEVELOPMENT INSURANCE FUND.

    Section 309A(g) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929a(g)) is amended--
            (1) by striking paragraph (1); and
            (2) by redesignating paragraphs (2) through (8) as 
        paragraphs (1) through (7), respectively.

SEC. 746. INSURED WATERSHED AND RESOURCE CONSERVATION AND DEVELOPMENT 
                    LOANS.

    Section 310A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1931) is repealed.

SEC. 747. RURAL INDUSTRIALIZATION ASSISTANCE.

    (a) In General.--Section 310B of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1932) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by striking ``and'' at the end of 
                clause (2); and
                    (B) by inserting before the period the 
                following: ``, and (4) to facilitate economic 
                opportunity for industries undergoing 
                adjustment from terminated Federal agricultural 
                price and income support programs or increased 
                competition from foreign trade'';
            (2) in subsection (b), by striking ``(b)(1)'' and 
        all that follows through ``(2) The'' and inserting the 
        following:
    ``(b) Solid Waste Management Grants.--The'';
            (3) in subsection (c)--
                    (A) by striking ``(c)(1) The'' and 
                inserting the following:
    ``(c) Rural Business Enterprise Grants.--
            ``(1) In general.--The'';
                    (B) in paragraph (1), by inserting 
                ``(including nonprofit entities)'' after 
                ``private business enterprises'';
                    (C) in paragraph (2)--
                            (i) by striking ``(2) The'' and 
                        inserting the following:
            ``(2) Passenger transportation services or 
        facilities.--The''; and
                            (ii) by striking ``make grants'' 
                        and inserting ``award grants on a 
                        competitive basis''; and
                    (D) by adding at the end the following:
            ``(3) Grants to aid industries in adjusting to 
        terminated federal agricultural programs or increased 
        foreign competition.--The Secretary may make grants 
        under this section to facilitate economic opportunity 
        for industries undergoing adjustment from terminated 
        Federal agricultural price and income support programs 
        or increased competition from foreign trade.'';
            (4) by striking subsection (e) and inserting the 
        following:
    ``(e) Rural Cooperative Development Grants.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Nonprofit institution.--The term 
                `nonprofit institution' means any organization 
                or institution, including an accredited 
                institution of higher education, no part of the 
                net earnings of which inures, or may lawfully 
                inure, to the benefit of any private 
                shareholder or individual.
                    ``(B) United states.--The term `United 
                States' means the several States, the District 
                of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, American Samoa, and 
                the other territories and possessions of the 
                United States.
            ``(2) Grants.--The Secretary shall make grants 
        under this subsection to nonprofit institutions for the 
        purpose of enabling the institutions to establish and 
        operate centers for rural cooperative development.
            ``(3) Goals.--The goals of a center funded under 
        this subsection shall be to facilitate the creation of 
        jobs in rural areas through the development of new 
        rural cooperatives, value added processing, and rural 
        businesses.
            ``(4) Application.--Any nonprofit institution 
        seeking a grant under paragraph (2) shall submit to the 
        Secretary an application containing a plan for the 
        establishment and operation by the institution of a 
        center or centers for cooperative development. The 
        Secretary may approve the application if the plan 
        contains the following:
                    ``(A) A provision that substantiates that 
                the center will effectively serve rural areas 
                in the United States.
                    ``(B) A provision that the primary 
                objective of the center will be to improve the 
                economic condition of rural areas through 
                cooperative development.
                    ``(C) A description of the activities that 
                the center will carry out to accomplish the 
                objective. The activities may include the 
                following:
                            ``(i) Programs for applied research 
                        and feasibility studies that may be 
                        useful to individuals, cooperatives, 
                        small businesses, and other similar 
                        entities in rural areas served by the 
                        center.
                            ``(ii) Programs for the collection, 
                        interpretation, and dissemination of 
                        information that may be useful to 
                        individuals, cooperatives, small 
                        businesses, and other similar entities 
                        in rural areas served by the center.
                            ``(iii) Programs providing training 
                        and instruction for individuals, 
                        cooperatives, small businesses, and 
                        other similar entities in rural areas 
                        served by the center.
                            ``(iv) Programs providing loans and 
                        grants to individuals, cooperatives, 
                        small businesses, and other similar 
                        entities in rural areas served by the 
                        center.
                            ``(v) Programs providing technical 
                        assistance, research services, and 
                        advisory services to individuals, 
                        cooperatives, small businesses, and 
                        other similar entities in rural areas 
                        served by the center.
                            ``(vi) Programs providing for the 
                        coordination of services and sharing of 
                        information among the center.
                    ``(D) A description of the contributions 
                that the activities are likely to make to the 
                improvement of the economic conditions of the 
                rural areas for which the center will provide 
                services.
                    ``(E) Provisions that the center, in 
                carrying out the activities, will seek, where 
                appropriate, the advice, participation, 
                expertise, and assistance of representatives of 
                business, industry, educational institutions, 
                the Federal Government, and State and local 
                governments.
                    ``(F) Provisions that the center will take 
                all practicable steps to develop continuing 
                sources of financial support for the center, 
                particularly from sources in the private 
                sector.
                    ``(G) Provisions for--
                            ``(i) monitoring and evaluating the 
                        activities by the nonprofit institution 
                        operating the center; and
                            ``(ii) accounting for money 
                        received by the institution under this 
                        section.
            ``(5) Awarding grants.--Grants made under paragraph 
        (2) shall be made on a competitive basis. In making 
        grants under paragraph (2), the Secretary shall give 
        preference to grant applications providing for the 
        establishment of centers for rural cooperative 
        development that--
                    ``(A) demonstrate a proven track record in 
                administering a nationally coordinated, 
                regionally or State-wide operated project;
                    ``(B) demonstrate previous expertise in 
                providing technical assistance in rural areas;
                    ``(C) demonstrate the ability to assist in 
                the retention of businesses, facilitate the 
                establishment of cooperatives and new 
                cooperative approaches, and generate employment 
                opportunities that will improve the economic 
                conditions of rural areas;
                    ``(D) demonstrate the ability to create 
                horizontal linkages among businesses within and 
                among various sectors in rural areas of the 
                United States and vertical linkages to domestic 
                and international markets;
                    ``(E) commit to providing technical 
                assistance and other services to underserved 
                and economically distressed areas in rural 
                areas of the United States; and
                    ``(F) commit to providing greater than a 25 
                percent matching contribution with private 
                funds and in-kind contributions.
            ``(6) 1-year grants; authority to approve grant for 
        1 additional year without application.--The Secretary 
        shall make grants under this subsection for a period of 
        1 year. The Secretary shall evaluate programs receiving 
        assistance under this subsection. If the Secretary 
        determines it to be in the best interest of the 
        program, the Secretary may award an additional grant to 
        the program for the immediately succeeding year without 
        application for the grant.
            ``(7) Technical assistance to prevent excessive 
        unemployment or underemployment.--In carrying out this 
        subsection, the Secretary may provide technical 
        assistance to alleviate or prevent conditions of 
        excessive unemployment, underemployment, outmigration, 
        or low employment growth in economically distressed 
        rural areas that the Secretary determines have a 
        substantial need for the assistance. The assistance may 
        include planning and feasibility studies, management 
        and operational assistance, and studies evaluating the 
        need for development potential of projects that 
        increase employment and improve economic growth in the 
        areas.
            ``(8) Grants to defray administrative costs.--The 
        Secretary may make grants to defray not to exceed 75 
        percent of the costs incurred by organizations and 
        public bodies to carry out projects for which grants or 
        loans are made under this subsection. For purposes of 
        determining the non-Federal share of the costs, the 
        Secretary shall consider contributions in cash and in 
        kind, fairly evaluated, including premises, equipment, 
        and services.
            ``(9) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $50,000,000 for each of fiscal years 1996 
        through 2002.'';
            (5) by striking subsections (f), (g), (h), and (i);
            (6) by redesignating subsection (j) as subsection 
        (f); and
            (7) by adding at the end the following:
    ``(g) Loan Guarantees for the Purchase of Cooperative 
Stock.--
            ``(1) Definition of farmer.--In this subsection, 
        the term `farmer' means any farmer that the Secretary 
        determines is a family farmer.
            ``(2) Loan guarantees.--The Secretary may guarantee 
        loans under this section to individual farmers for the 
        purpose of purchasing start-up capital stock of a 
        farmer cooperative established for the purpose of 
        processing an agricultural commodity.
            ``(3) Eligibility.--To be eligible for a loan 
        guarantee under this subsection, a farmer must produce 
        the agricultural commodity that will be processed by 
        the cooperative.''.
    (b) Conforming Amendments.--
            (1) Clause (iii) of section 307(a)(6)(B) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1927(a)(6)(B)) (as redesignated by section 661(a)(2)) 
        is amended by striking ``subsections (d) and (e) of 
        section 310B'' and inserting ``section 310B(d)''.
            (2) Section 232(c)(2) of the Department of 
        Agriculture Reorganization Act of 1994 (7 U.S.C. 
        6942(c)(2)) is amended--
                    (A) by striking ``310B(b)(2)'' and 
                inserting ``310B(b)''; and
                    (B) by striking ``1932(b)(2)'' and 
                inserting ``1932(b)''.
            (3) Section 233(b) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6943(b)) is 
        amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraph (3) as 
                paragraph (2).

SEC. 748. ADMINISTRATION.

    Section 331(b)(4) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981(b)(4)) is amended--
            (1) by inserting after ``claims'' the following: 
        ``(including debts and claims arising from loan 
        guarantees)'';
            (2) by striking ``Farmers Home Administration or'' 
        and inserting ``Consolidated Farm Service Agency, Rural 
        Utilities Service, Rural Housing Service, Rural 
        Business-Cooperative Service, or a successor agency, 
        or''; and
            (3) by inserting after ``activities under the 
        Housing Act of 1949.'' the following: ``In the case of 
        a security instrument entered into under the Rural 
        Electrification Act of 1936 (7 U.S.C. 901 et seq.), the 
        Secretary shall notify the Attorney General of the 
        intent of the Secretary to exercise the authority of 
        the Secretary under this paragraph.''.

SEC. 749. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 338 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1988) is amended--
            (1) by striking subsections (b), (c), (d), and (e); 
        and
            (2) by redesignating subsection (f) as subsection 
        (b).
    (b) Conforming Amendments.--
            (1) The first sentence of section 309(g)(1) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1929(g)(1)) is amended by inserting after ``section 
        338(c)'' the following: ``(before the amendment made by 
        section 749(a)(1) of the Federal Agriculture 
        Improvement and Reform Act of 1996)''.
            (2) Section 343(b) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(b)) is amended by 
        striking ``338(f),'' and inserting ``338(b),''.

SEC. 750. TESTIMONY BEFORE CONGRESSIONAL COMMITTEES.

    Section 345 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1993) is repealed.

SEC. 751. PROHIBITION ON USE OF LOANS FOR CERTAIN PURPOSES.

    Section 363 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006e) is amended by adding at the end the 
following: ``This section shall not apply to a loan made or 
guaranteed under this title for a utility line.''.

SEC. 752. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    The Consolidated Farm and Rural Development Act is amended 
by inserting after section 363 (7 U.S.C. 2006e) the following:

``SEC. 364. RURAL DEVELOPMENT CERTIFIED LENDERS PROGRAM.

    ``(a) Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a 
        program under which the Secretary may guarantee a loan 
        for any rural development program that is made by a 
        lender certified by the Secretary.
            ``(2) Certification requirements.--The Secretary 
        may certify a lender if the lender meets such criteria 
        as the Secretary may prescribe in regulations, 
        including the ability of the lender to properly make, 
        service, and liquidate the guaranteed loans of the 
        lender.
            ``(3) Condition of certification.--As a condition 
        of certification, the Secretary may require the lender 
        to undertake to service the guaranteed loan using 
        standards that are not less stringent than generally 
        accepted banking standards concerning loan servicing 
        that are used by prudent commercial or cooperative 
        lenders.
            ``(4) Guarantee.--Notwithstanding any other 
        provision of law, the Secretary may guarantee not more 
        than 80 percent of a loan made by a certified lender 
        described in paragraph (1), if the borrower of the loan 
        meets the eligibility requirements and such other 
        criteria for the loan guarantee that are established by 
        the Secretary.
            ``(5) Certifications.--With respect to loans to be 
        guaranteed, the Secretary may permit a certified lender 
        to make appropriate certifications (as provided in 
        regulations issued by the Secretary)--
                    ``(A) relating to issues such as 
                creditworthiness, repayment ability, adequacy 
                of collateral, and feasibility of the 
                operation; and
                    ``(B) that the borrower is in compliance 
                with all requirements of law, including 
                regulations issued by the Secretary.
            ``(6) Relationship to other requirements.--This 
        subsection shall not affect the responsibility of the 
        Secretary to determine eligibility, review financial 
        information, and otherwise assess an application.
    ``(b) Preferred Certified Lenders Program.--
            ``(1) In general.--The Secretary may establish a 
        preferred certified lenders program for lenders who 
        establish their--
                    ``(A) knowledge of, and experience under, 
                the program established under subsection (a);
                    ``(B) knowledge of the regulations 
                concerning the particular guaranteed loan 
                program; and
                    ``(C) proficiency related to the certified 
                lender program requirements.
            ``(2) Additional lending institutions.--The 
        Secretary may certify any lending institution as a 
        preferred certified lender if the institution meets 
        such additional criteria as the Secretary may prescribe 
        by regulation.
            ``(3) Revocation of designation.--The designation 
        of a lender as a preferred certified lender shall be 
        revoked if the Secretary determines that the lender is 
        not adhering to the rules and regulations applicable to 
        the program or if the loss experiences of the preferred 
        certified lender are greater than other preferred 
        certified lenders, except that the suspension or 
        revocation shall not affect any outstanding guarantee.
            ``(4) Condition of certification.--As a condition 
        of the preferred certification, the Secretary shall 
        require the lender to undertake to service the loan 
        guaranteed by the Secretary under this subsection using 
        generally accepted banking standards concerning loan 
        servicing employed by prudent commercial or cooperative 
        lenders. The Secretary shall, at least annually, 
        monitor the performance of each preferred certified 
        lender to ensure that the conditions of the 
        certification are being met.
            ``(5) Effect of preferred lender certification.--
        Notwithstanding any other provision of law, the 
        Secretary may--
                    ``(A) guarantee not more than 80 percent of 
                any approved loan made by a preferred certified 
                lender as described in this subsection, if the 
                borrower meets the eligibility requirements and 
                such other criteria as may be applicable to 
                loans guaranteed by the Secretary; and
                    ``(B) permit preferred certified lenders to 
                make all decisions, with respect to loans to be 
                guaranteed by the Secretary under this 
                subsection relating to creditworthiness, the 
                closing, monitoring, collection, and 
                liquidation of loans, and to accept appropriate 
                certifications, as provided in regulations 
                issued by the Secretary, that the borrower is 
                in compliance with all requirements of law and 
                regulations issued by the Secretary.''.

SEC. 753. SYSTEM FOR DELIVERY OF CERTAIN RURAL DEVELOPMENT PROGRAMS.

    (a) In General.--Section 365 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2008) is repealed.
    (b) Conforming Amendments.--
            (1) Section 2375 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 6613) is 
        amended--
                    (A) in subsection (e), by striking ``, as 
                defined in section 365(b)(2) of the 
                Consolidated Farm and Rural Development Act,''; 
                and
                    (B) by adding at the end the following:
    ``(g) Definition of Designated Rural Development Program.--
In this section, the term `designated rural development 
program' means a program carried out under section 304(b), 
306(a), or 310B(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1924(b), 1926(a), and 1932(e)) for 
which funds are available at any time during the fiscal 
year.''.
            (2) Paragraph (2) of section 233(b) of the 
        Department of Agriculture Reorganization Act of 1994 (7 
        U.S.C. 6943(b)) (as redesignated by section 
        747(b)(3)(B)) is amended by striking ``sections 365 
        through 369 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2008-2008d)'' and inserting 
        ``section 369 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2008d)''.

SEC. 754. STATE RURAL ECONOMIC DEVELOPMENT REVIEW PANEL.

    Section 366 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008a) is repealed.

SEC. 755. LIMITED TRANSFER AUTHORITY OF LOAN AMOUNTS.

    Section 367 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008b) is repealed.

SEC. 756. ALLOCATION AND TRANSFER OF LOAN GUARANTEE AUTHORITY.

    Section 368 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2008c) is repealed.

SEC. 757. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    The Consolidated Farm and Rural Development Act is amended 
by inserting after section 306C (7 U.S.C. 1926c) the following:

``SEC. 306D. WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN ALASKA.

    ``(a) In General.--The Secretary may make grants to the 
State of Alaska for the benefit of rural or Native villages in 
Alaska to provide for the development and construction of water 
and wastewater systems to improve the health and sanitation 
conditions in those villages.
    ``(b) Matching Funds.--To be eligible to receive a grant 
under subsection (a), the State of Alaska shall provide equal 
matching funds from non-Federal sources.
    ``(c) Consultation With the State of Alaska.--The Secretary 
shall consult with the State of Alaska on a method of 
prioritizing the allocation of grants under subsection (a) 
according to the needs of, and relative health and sanitation 
conditions in, each village.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$15,000,000 for each of fiscal years 1996 through 2002.''.

SEC. 758. APPLICATION REQUIREMENTS RELATING TO WATER AND WASTE DISPOSAL 
                    LOAN AND GRANT PROGRAMS.

    Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 926(a)) is amended by inserting after 
paragraph (4) the following:
            ``(5) Application requirements.--Not earlier than 
        60 days before a preliminary application is filed for a 
        loan under paragraph (1) or a grant under paragraph (2) 
        for a water or waste disposal purpose, a notice of the 
        intent of the applicant to apply for the loan or grant 
        shall be published in a general circulation newspaper. 
        The selection of engineers for a project design shall 
        be done by a request for proposals by the applicant.''.

SEC. 759. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    The Consolidated Farm and Rural Development Act (as amended 
by section 649) is amended by adding at the end the following:

``SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    ``(a) Definitions.--In this section:
            ``(1) Board.--The term `Board' means the Board of 
        Directors established under subsection (f).
            ``(2) Center.--The term `Center' means the National 
        Sheep Industry Improvement Center established under 
        subsection (b).
            ``(3) Eligible entity.--The term `eligible entity' 
        means an entity that promotes the betterment of the 
        United States sheep or goat industries and that is--
                    ``(A) a public, private, or cooperative 
                organization;
                    ``(B) an association, including a 
                corporation not operated for profit;
                    ``(C) a federally recognized Indian Tribe; 
                or
                    ``(D) a public or quasi-public agency.
            ``(4) Fund.--The term `Fund' means the National 
        Sheep Industry Improvement Center Revolving Fund 
        established under subsection (e).
    ``(b) Establishment of Center.--The Secretary shall 
establish a National Sheep Industry Improvement Center.
    ``(c) Purposes.--The purposes of the Center shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by private and State entities to 
        maximize the impact of Federal assistance to strengthen 
        and enhance production and marketing of sheep or goat 
        products in the United States;
            ``(2) optimize the use of available human capital 
        and resources within the sheep or goat industries;
            ``(3) provide assistance to meet the needs of the 
        sheep or goat industry for infrastructure development, 
        business development, production, resource development, 
        and market and environmental research;
            ``(4) advance activities that empower and build the 
        capacity of the United States sheep or goat industry to 
        design unique responses to the special needs of the 
        sheep or goat industries on both a regional and 
        national basis; and
            ``(5) adopt flexible and innovative approaches to 
        solving the long-term needs of the United States sheep 
        or goat industry.
    ``(d) Strategic Plan.--
            ``(1) In general.--The Center shall submit to the 
        Secretary an annual strategic plan for the delivery of 
        financial assistance provided by the Center.
            ``(2) Requirements.--A strategic plan shall 
        identify--
                    ``(A) goals, methods, and a benchmark for 
                measuring the success of carrying out the plan 
                and how the plan relates to the national and 
                regional goals of the Center;
                    ``(B) the amount and sources of Federal and 
                non-Federal funds that are available for 
                carrying out the plan;
                    ``(C) funding priorities;
                    ``(D) selection criteria for funding; and
                    ``(E) a method of distributing funding.
    ``(e) Revolving Fund.--
            ``(1) Establishment.--There is established in the 
        Treasury the National Sheep Industry Improvement Center 
        Revolving Fund. The Fund shall be available to the 
        Center, without fiscal year limitation, to carry out 
        the authorized programs and activities of the Center 
        under this section.
            ``(2) Contents of fund.--There shall be deposited 
        in the Fund--
                    ``(A) such amounts as may be appropriated, 
                transferred, or otherwise made available to 
                support programs and activities of the Center;
                    ``(B) payments received from any source for 
                products, services, or property furnished in 
                connection with the activities of the Center;
                    ``(C) fees and royalties collected by the 
                Center from licensing or other arrangements 
                relating to commercialization of products 
                developed through projects funded, in whole or 
                part, by grants, contracts, or cooperative 
                agreements executed by the Center;
                    ``(D) proceeds from the sale of assets, 
                loans, and equity interests made in furtherance 
                of the purposes of the Center;
                    ``(E) donations or contributions accepted 
                by the Center to support authorized programs 
                and activities; and
                    ``(F) any other funds acquired by the 
                Center.
            ``(3) Use of fund.--
                    ``(A) In general.--The Center may use 
                amounts in the Fund to make grants and loans to 
                eligible entities in accordance with a 
                strategic plan submitted under subsection (d).
                    ``(B) Continued existence.--The Center 
                shall manage the Fund in a manner that ensures 
                that sufficient amounts are available in the 
                Fund to carry out subsection (c).
                    ``(C) Diverse area.--The Center shall, to 
                the maximum extent practicable, use the Fund to 
                serve broad geographic areas and regions of 
                diverse production.
                    ``(D) Variety of loans and grants.--The 
                Center shall, to the maximum extent 
                practicable, use the Fund to provide a variety 
                of grants and intermediate- and long-term 
                loans.
                    ``(E) Administration.--The Center may not 
                use more than 3 percent of the amounts in the 
                Fund for a fiscal year for the administration 
                of the Center.
                    ``(F) Influencing legislation.--None of the 
                amounts in the Fund may be used to influence 
                legislation.
                    ``(G) Accounting.--To be eligible to 
                receive amounts from the Fund, an entity must 
                agree to account for the amounts using 
                generally accepted accounting principles.
                    ``(H) Uses of fund.--The Center may use 
                amounts in the Fund to--
                            ``(i) participate with Federal and 
                        State agencies in financing activities 
                        that are in accordance with a strategic 
                        plan submitted under subsection (d), 
                        including participation with several 
                        States in a regional effort;
                            ``(ii) participate with other 
                        public and private funding sources in 
                        financing activities that are in 
                        accordance with the strategic plan, 
                        including participation in a regional 
                        effort;
                            ``(iii) provide security for, or 
                        make principal or interest payments on, 
                        revenue or general obligation bonds 
                        issued by a State, if the proceeds from 
                        the sale of the bonds are deposited in 
                        the Fund;
                            ``(iv) accrue interest;
                            ``(v) guarantee or purchase 
                        insurance for local obligations to 
                        improve credit market access or reduce 
                        interest rates for a project that is in 
                        accordance with the strategic plan; or
                            ``(vi) sell assets, loans, and 
                        equity interests acquired in connection 
                        with the financing of projects funded 
                        by the Center.
            ``(4) Loans.--
                    ``(A) Rate.--A loan from the Fund may be 
                made at an interest rate that is below the 
                market rate or may be interest free.
                    ``(B) Term.--The term of a loan may not 
                exceed the shorter of--
                            ``(i) the useful life of the 
                        activity financed; or
                            ``(ii) 40 years.
                    ``(C) Source of repayment.--The Center may 
                not make a loan from the Fund unless the 
                recipient establishes an assured source of 
                repayment.
                    ``(D) Proceeds.--All payments of principal 
                and interest on a loan made from the Fund shall 
                be deposited into the Fund.
            ``(5) Maintenance of effort.--The Center shall use 
        the Fund only to supplement and not to supplant 
        Federal, State, and private funds expended for rural 
        development.
            ``(6) Funding.--
                    ``(A) Deposit of funds.--All Federal and 
                non-Federal amounts received by the Center to 
                carry out this section shall be deposited in 
                the Fund.
                    ``(B) Mandatory funds.--Out of any moneys 
                in the Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall provide to the 
                Center not to exceed $20,000,000 to carry out 
                this section.
                    ``(C) Additional funds.--In addition to any 
                funds provided under subparagraph (B), there is 
                authorized to be appropriated $30,000,000 to 
                carry out this section.
                    ``(D) Privatization.--No additional Federal 
                funds shall be used to carry out this section 
                beginning on the earlier of--
                            ``(i) the date that is 10 years 
                        after the date of enactment of this 
                        section; or
                            ``(ii) the day after a total of 
                        $50,000,000 has been made available 
                        under subparagraphs (B) and (C) to 
                        carry out this section.
    ``(f) Board of Directors.--
            ``(1) In general.--The management of the Center 
        shall be vested in a Board of Directors.
            ``(2) Powers.--The Board shall--
                    ``(A) be responsible for the general 
                supervision of the Center;
                    ``(B) review any grant, loan, contract, or 
                cooperative agreement to be made or entered 
                into by the Center and any financial assistance 
                provided to the Center;
                    ``(C) make the final decision, by majority 
                vote, on whether and how to provide assistance 
                to an applicant; and
                    ``(D) develop and establish a budget plan 
                and a long-term operating plan to carry out the 
                goals of the Center.
            ``(3) Composition.--The Board shall be composed 
        of--
                    ``(A) 7 voting members, of whom--
                            ``(i) 4 members shall be active 
                        producers of sheep or goats in the 
                        United States;
                            ``(ii) 2 members shall have 
                        expertise in finance and management; 
                        and
                            ``(iii) 1 member shall have 
                        expertise in lamb, wool, goat, or goat 
                        product marketing; and
                    ``(B) 2 nonvoting members, of whom--
                            ``(i) 1 member shall be the Under 
                        Secretary of Agriculture for Rural 
                        Development; and
                            ``(ii) 1 member shall be the Under 
                        Secretary of Agriculture for Research, 
                        Education, and Economics.
            ``(4) Nomination.--
                    ``(A) Nominating body.--The Secretary shall 
                appoint the voting members of the Board from 
                nominations submitted by organizations 
                described in subparagraph (B).
                    ``(B) National organizations.--A national 
                organization is described in this subparagraph 
                if the organization--
                            ``(i) consists primarily of active 
                        sheep or goat producers in the United 
                        States; and
                            ``(ii) has as the primary interest 
                        of the organization the production of 
                        sheep or goats in the United States.
            ``(5) Term of office.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the term of office of a voting member of 
                the Board shall be 3 years.
                    ``(B) Staggered initial terms.--The initial 
                voting members of the Board (other than the 
                chairperson of the initially established Board) 
                shall serve for staggered terms of 1, 2, and 3 
                years, as determined by the Secretary.
                    ``(C) Reelection.--A voting member may be 
                reelected for not more than 1 additional term.
            ``(6) Vacancy.--
                    ``(A) In general.--A vacancy on the Board 
                shall be filled in the same manner as the 
                original Board.
                    ``(B) Reelection.--A member elected to fill 
                a vacancy for an unexpired term may be 
                reelected for 1 full term.
            ``(7) Chairperson.--
                    ``(A) In general.--The Board shall select a 
                chairperson from among the voting members of 
                the Board.
                    ``(B) Term.--The term of office of the 
                chairperson shall be 2 years.
            ``(8) Annual meeting.--
                    ``(A) In general.--The Board shall meet not 
                less than once each fiscal year at the call of 
                the chairperson or at the request of the 
                executive director appointed under subsection 
                (g)(1).
                    ``(B) Location.--The location of a meeting 
                of the Board shall be established by the Board.
            ``(9) Voting.--
                    ``(A) Quorum.--A quorum of the Board shall 
                consist of a majority of the voting members.
                    ``(B) Majority vote.--A decision of the 
                Board shall be made by a majority of the voting 
                members of the Board.
            ``(10) Conflicts of interest.--
                    ``(A) In general.--Except as provided in 
                subparagraph (D), a member of the Board shall 
                not vote on any matter respecting any 
                application, contract, claim, or other 
                particular matter pending before the Board in 
                which, to the knowledge of the member, an 
                interest is held by--
                            ``(i) the member;
                            ``(ii) any spouse of the member;
                            ``(iii) any child of the member;
                            ``(iv) any partner of the member;
                            ``(v) any organization in which the 
                        member is serving as an officer, 
                        director, trustee, partner, or 
                        employee; or
                            ``(vi) any person with whom the 
                        member is negotiating or has any 
                        arrangement concerning prospective 
                        employment or with whom the member has 
                        a financial interest.
                    ``(B) Removal.--Any action by a member of 
                the Board that violates subparagraph (A) shall 
                be cause for removal from the Board.
                    ``(C) Validity of action.--An action by a 
                member of the Board that violates subparagraph 
                (A) shall not impair or otherwise affect the 
                validity of any otherwise lawful action by the 
                Board.
                    ``(D) Disclosure.--
                            ``(i) In general.--If a member of 
                        the Board makes a full disclosure of an 
                        interest and, prior to any 
                        participation by the member, the Board 
                        determines, by majority vote, that the 
                        interest is too remote or too 
                        inconsequential to affect the integrity 
                        of any participation by the member, the 
                        member may participate in the matter 
                        relating to the interest, except as 
                        provided in subparagraph (E)(iii).
                            ``(ii) Vote.--A member that 
                        discloses an interest under clause (i) 
                        shall not vote on a determination of 
                        whether the member may participate in 
                        the matter relating to the interest.
                    ``(E) Remands.--
                            ``(i) In general.--The Secretary 
                        may vacate and remand to the Board for 
                        reconsideration any decision made 
                        pursuant to subsection (e)(3)(H) if the 
                        Secretary determines that there has 
                        been a violation of this paragraph or 
                        any conflict of interest provision of 
                        the bylaws of the Board with respect to 
                        the decision.
                            ``(ii) Reasons.--In the case of any 
                        violation and remand of a funding 
                        decision to the Board under clause (i), 
                        the Secretary shall inform the Board of 
                        the reasons for the remand.
                            ``(iii) Conflicted members not to 
                        vote on remanded decisions.--If a 
                        decision with respect to a matter is 
                        remanded to the Board by reason of a 
                        conflict of interest faced by a Board 
                        member, the member may not participate 
                        in any subsequent decision with respect 
                        to the matter.
            ``(11) Compensation.--
                    ``(A) In general.--A member of the Board 
                shall not receive any compensation by reason of 
                service on the Board.
                    ``(B) Expenses.--A member of the Board 
                shall be reimbursed for travel, subsistence, 
                and other necessary expenses incurred by the 
                member in the performance of a duty of the 
                member.
            ``(12) Bylaws.--The Board shall adopt, and may from 
        time to time amend, any bylaw that is necessary for the 
        proper management and functioning of the Center.
            ``(13) Public hearings.--Not later than 1 year 
        after the date of enactment of this section, the Board 
        shall hold public hearings on policy objectives of the 
        program established under this section.
            ``(14) Organizational system.--The Board shall 
        provide a system of organization to fix responsibility 
        and promote efficiency in carrying out the functions of 
        the Board.
            ``(15) Use of department of agriculture.--The Board 
        may, with the consent of the Secretary, utilize the 
        facilities of and the services of employees of the 
        Department of Agriculture, without cost to the Center.
    ``(g) Officers and Employees.--
            ``(1) Executive director.--
                    ``(A) In general.--The Board shall appoint 
                an executive director to be the chief executive 
                officer of the Center.
                    ``(B) Tenure.--The executive director shall 
                serve at the pleasure of the Board.
                    ``(C) Compensation.--Compensation for the 
                executive director shall be established by the 
                Board.
            ``(2) Other officers and employees.--The Board may 
        select and appoint officers, attorneys, employees, and 
        agents who shall be vested with such powers and duties 
        as the Board may determine.
            ``(3) Delegation.--The Board may, by resolution, 
        delegate to the chairperson, the executive director, or 
        any other officer or employee any function, power, or 
        duty of the Board other than voting on a grant, loan, 
        contract, agreement, budget, or annual strategic plan.
    ``(h) Consultation.--To carry out this section, the Board 
may consult with--
            ``(1) State departments of agriculture;
            ``(2) Federal departments and agencies;
            ``(3) nonprofit development corporations;
            ``(4) colleges and universities;
            ``(5) banking and other credit-related agencies;
            ``(6) agriculture and agribusiness organizations; 
        and
            ``(7) regional planning and development 
        organizations.
    ``(i) Oversight.--
            ``(1) In general.--The Secretary shall review and 
        monitor compliance by the Board and the Center with 
        this section.
            ``(2) Sanctions.--If, following notice and 
        opportunity for a hearing, the Secretary finds that the 
        Board or the Center is not in compliance with this 
        section, the Secretary may--
                    ``(A) cease making deposits to the Fund;
                    ``(B) suspend the authority of the Center 
                to withdraw funds from the Fund; or
                    ``(C) impose other appropriate sanctions, 
                including recoupment of money improperly 
                expended for purposes prohibited or not 
                authorized by this Act and disqualification 
                from receipt of financial assistance under this 
                section.
            ``(3) Rescission of sanctions.--The Secretary shall 
        rescind sanctions imposed under paragraph (2) on a 
        finding by the Secretary that there is no longer any 
        failure by the Board or the Center to comply with this 
        section or that the noncompliance will be promptly 
        corrected.''.

SEC. 759A. COOPERATIVE AGREEMENTS.

    Section 607(b) of the Rural Development Act of 1972 (7 
U.S.C. 2204b(b)) is amended by striking paragraph (4) and 
inserting the following:
            ``(4) Cooperative agreements.--
                    ``(A) In general.--Notwithstanding chapter 
                63 of title 31, United States Code, the 
                Secretary may enter into cooperative agreements 
                with other Federal agencies, State and local 
                governments, and any other organization or 
                individual to improve the coordination and 
                effectiveness of Federal programs, services, 
                and actions affecting rural areas, including 
                the establishment and financing of interagency 
                groups, if the Secretary determines that the 
                objectives of the agreement will serve the 
                mutual interest of the parties in rural 
                development activities.
                    ``(B) Cooperators.--Each cooperator, 
                including each Federal agency, to the extent 
                that funds are otherwise available, may 
                participate in any cooperative agreement or 
                working group established pursuant to this 
                paragraph by contributing funds or other 
                resources to the Secretary to carry out the 
                agreement or functions of the group.''.

SEC. 759B. ELIGIBILITY FOR GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(f)) (as redesignated by section 
747(a)(6))) is amended by striking ``Systems.--The'' and 
inserting ``Systems.--
            ``(1) Definition of statewide.--In this subsection, 
        the term `statewide' means having a coverage area of 
        not less than 90 percent of the population of a State 
        and not less than 80 percent of the rural land area of 
        the State (as determined by the Secretary).
            ``(2) Grants.--The''.

             CHAPTER 2--RURAL COMMUNITY ADVANCEMENT PROGRAM

SEC. 761. RURAL COMMUNITY ADVANCEMENT PROGRAM.

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

           ``Subtitle E--Rural Community Advancement Program

``SEC. 381A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Rural and rural area.--The terms `rural' and 
        `rural area' mean, subject to section 306(a)(7), a 
        city, town, or unincorporated area that has a 
        population of 50,000 inhabitants or less, other than an 
        urbanized area immediately adjacent to a city, town, or 
        unincorporated area that has a population in excess of 
        50,000 inhabitants.
            ``(2) State.--The term `State' means each of the 50 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, the Virgin Islands of the United 
        States, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, the Trust Territory of the 
        Pacific Islands, and the Federated States of 
        Micronesia.
            ``(3) State director.--The term `State director' 
        means, with respect to a State, the Director of the 
        Rural Economic and Community Development State Office.

``SEC. 381B. ESTABLISHMENT.

    ``The Secretary shall establish a rural community 
advancement program to provide grants, loans, loan guarantees, 
and other assistance to meet the rural development needs of 
local communities in States and federally recognized Indian 
tribes.

``SEC. 381C. NATIONAL OBJECTIVES.

    ``The national objectives of the program established under 
this subtitle shall be to--
            ``(1) promote strategic development activities and 
        collaborative efforts by State and local communities, 
        and federally recognized Indian tribes, to maximize the 
        impact of Federal assistance;
            ``(2) optimize the use of resources;
            ``(3) provide assistance in a manner that reflects 
        the complexity of rural needs, including the needs for 
        business development, health care, education, 
        infrastructure, cultural resources, the environment, 
        and housing;
            ``(4) advance activities that empower, and build 
        the capacity of, State and local communities to design 
        unique responses to the special needs of the State and 
        local communities, and federally recognized Indian 
        tribes, for rural development assistance; and
            ``(5) adopt flexible and innovative approaches to 
        solving rural development problems.

``SEC. 381D. STRATEGIC PLANS.

    ``(a) In General.--The Secretary shall direct each of the 
Directors of Rural Economic and Community Development State 
Offices to prepare a strategic plan--
            ``(1) for each State for the delivery of assistance 
        under this subtitle in the State; and
            ``(2) for each federally recognized Indian tribe 
        for the delivery of assistance under this subtitle to 
        the Indian tribe.
    ``(b) Assistance.--
            ``(1) In general.--Financial assistance for rural 
        development provided under this subtitle for a State or 
        a federally recognized Indian tribe shall be used only 
        for orderly community development that is consistent 
        with the strategic plan of the State or Indian tribe.
            ``(2) Rural area.--Assistance under this subtitle 
        may only be provided in a rural area.
            ``(3) Small communities.--In carrying out this 
        subtitle in a State, the Secretary shall give priority 
        to communities with the smallest populations and lowest 
        per capita income.
    ``(c) Review.--The Secretary shall review the strategic 
plan of each State and federally recognized Indian tribe not 
later than 60 days after receiving the plan, and at least once 
every 5 years thereafter.
    ``(d) Contents.--A strategic plan of a State or federally 
recognized Indian tribe under this section shall be a plan 
that--
            ``(1) coordinates economic, human, and community 
        development plans and related activities proposed for 
        an affected area;
            ``(2) provides that the State or federally 
        recognized Indian tribe, as appropriate, and an 
        affected community (including local institutions and 
        organizations that have contributed to the planning 
        process) shall act as full partners in the process of 
        developing and implementing the plan;
            ``(3) identifies goals, methods, and benchmarks for 
        measuring the success of carrying out the plan and how 
        the plan relates to local or regional ecosystems;
            ``(4) in the case of a State, provides for the 
        involvement, in the preparation of the plan, of State, 
        local, private, and public persons, State rural 
        development councils, federally recognized Indian 
        tribes in the State, and community-based organizations;
            ``(5) identifies the amount and source of Federal 
        and non-Federal resources that are available for 
        carrying out the plan; and
            ``(6) includes such other information as may be 
        required by the Secretary.

``SEC. 381E. RURAL DEVELOPMENT TRUST FUND.

    ``(a) Establishment.--There is established in the Treasury 
of the United States a trust fund which shall be known as the 
Rural Development Trust Fund (in this subtitle referred to as 
the `Trust Fund').
    ``(b) Accounts.--There are established in the Trust Fund 
the following accounts:
            ``(1) The rural community facilities account.
            ``(2) The rural utilities account.
            ``(3) The rural business and cooperative 
        development account.
            ``(4) The national reserve account.
            ``(5) The federally recognized Indian tribe 
        account.
    ``(c) Deposits Into Accounts.--Notwithstanding any other 
provision of law, each fiscal year--
            ``(1) all amounts made available to carry out the 
        authorities described in subsection (d)(1) for the 
        fiscal year shall be deposited into the rural community 
        facilities account of the Trust Fund;
            ``(2) all amounts made available to carry out the 
        authorities described in subsection (d)(2) for the 
        fiscal year shall be deposited into the rural utilities 
        account of the Trust Fund; and
            ``(3) all amounts made available to carry out the 
        authorities described in subsection (d)(3) for the 
        fiscal year shall be deposited into the rural business 
        and cooperative development account of the Trust Fund.
    ``(d) Function Categories.--The function categories 
described in this subsection are the following:
            ``(1) Rural community facilities.--The rural 
        community development category consists of all amounts 
        made available for--
                    ``(A) community facility direct and 
                guaranteed loans under section 306(a)(1); or
                    ``(B) community facility grants under 
                section 306(a)(19).
            ``(2) Rural utilities.--The rural utilities 
        category consists of all amounts made available for--
                    ``(A) water or waste disposal grants or 
                direct or guaranteed loans under paragraph (1) 
                or (2) of section 306(a);
                    ``(B) rural water or wastewater technical 
                assistance and training grants under section 
                306(a)(14);
                    ``(C) emergency community water assistance 
                grants under section 306A; or
                    ``(D) solid waste management grants under 
                section 310B(b).
            ``(3) Rural business and cooperative development.--
        The rural business and cooperative development category 
        consists of all amounts made available for--
                    ``(A) rural business opportunity grants 
                under section 306(a)(11)(A);
                    ``(B) business and industry guaranteed 
                loans under section 310B(a)(1); or
                    ``(C) rural business enterprise grants or 
                rural educational network grants under section 
                310B(c).
    ``(e) National Reserve Account.--
            ``(1) Transfers into account.--
                    ``(A) Initial transfer.--Each fiscal year, 
                the Secretary shall transfer to the national 
                reserve account of the Trust Fund from each 
                account specified in subsection (c) not more 
                than the applicable percentage of the amount 
                deposited in each such account for the fiscal 
                year under subsection (c).
                    ``(B) Repooling of unobligated funds 
                allocated among the states.--Not earlier than 
                July 15 of each fiscal year, the Secretary 
                shall transfer to the national reserve account 
                from each account specified in subsection (c) 
                any amount in the account that is allocated for 
                any State, and has not been obligated by the 
                State director or obligated for specific 
                approved projects in the State.
            ``(2) Use.--The Secretary may use amounts in the 
        national reserve account of the Trust Fund, pursuant to 
        any authority described in subsection (d)--
                    ``(A) in the case of a fiscal year other 
                than fiscal year 2001 or 2002--
                            ``(i) to meet situations of 
                        exceptional need;
                            ``(ii) to meet emergency 
                        situations; or
                            ``(iii) to provide funds to 
                        entities whose applications for funds 
                        provided under this subtitle have been 
                        approved and who have not received 
                        funds sufficient to meet the needs of 
                        the projects described in the 
                        applications; or
                    ``(B) in the case of fiscal years 2001 and 
                2002--
                            ``(i) to meet situations of 
                        exceptional need; or
                            ``(ii) to meet emergency 
                        situations.
            ``(3) Applicable percentage defined.--In paragraph 
        (1), the term `applicable percentage' means, with 
        respect to a fiscal year--
                    ``(A) 15 percent for fiscal year 1997;
                    ``(B) 12.5 percent for fiscal year 1998;
                    ``(C) 10 percent for fiscal year 1999;
                    ``(D) 7.5 percent for fiscal year 2000;
                    ``(E) 5 percent for fiscal year 2001; and
                    ``(F) 5 percent for fiscal year 2002.
    ``(f) Federally Recognized Indian Tribe Account.--
            ``(1) Transfers into account.--Each fiscal year, 
        the Secretary shall transfer to the federally 
        recognized Indian tribe account of the Trust Fund 3 
        percent of the amount deposited into the Trust Fund for 
        the fiscal year under subsection (d).
            ``(2) Use of funds.--The Secretary shall make 
        available to federally recognized Indian tribes the 
        amounts in the federally recognized Indian tribe 
        account for use pursuant to any authority described in 
        subsection (d).
    ``(g) Allocation Among States.--The Secretary shall 
allocate the amounts in each account specified in subsection 
(c) among the States in a fair, reasonable, and appropriate 
manner that takes into consideration rural population, levels 
of income, unemployment, and other relevant factors, as 
determined by the Secretary.
    ``(h) Availability of Funds Allocated for States.--The 
Secretary shall make available to each State the total amount 
allocated for the State under subsection (g) of this section 
that remains after applying section 381G.

``SEC. 381F. TRANSFERS OF FUNDS.

    ``(a) General Authority.--Subject to subsection (b) of this 
section, the State Director of any State may, during any fiscal 
year, transfer from each account specified in section 381E(c) a 
total of not more than 25 percent of the amount in the account 
that is allocated for the State for the fiscal year to any 
other account in which amounts are allocated for the State for 
the fiscal year.
    ``(b) Limitation.--Except as provided in subsection (c) of 
this section, a transfer otherwise authorized by subsection (a) 
of this section to be made during a fiscal year may not be made 
to the extent that the sum of the amount to be transferred and 
all amounts so transferred by State directors under subsection 
(a) of this section during the fiscal year exceeds 10 percent 
of the total amount made available to carry out the authorities 
described in section 381E(d) for the fiscal year.
    ``(c) Exceptions.--Subsections (a) and (b) shall not apply 
to a transfer of funds by a State director if the State 
director certifies to the Secretary that--
            ``(1) there is an approved application for a 
        project in the function category to which the funds are 
        to be transferred but funds are not available for the 
        project in the function category; and
            ``(2)(A) there is no such approved application in 
        the function category from which the funds are to be 
        transferred; or
            ``(B) the community that would benefit from the 
        project has a smaller population and a lesser per 
        capita income than any community that would benefit 
        from a project in the function category from which the 
        funds are to be transferred.

``SEC. 381G. GRANTS TO STATES.

    ``(a) Simple Grants.--
            ``(1) Mandatory grant.--The Secretary shall make a 
        grant to any eligible State for any fiscal year for 
        which the State requests a grant under this section in 
        an amount equal to 5 percent of the total amount 
        allocated for the State under section 381E(g)
            ``(2) Permissive grant.--Before July 15 of each 
        fiscal year, the Secretary may make a grant to any 
        State to defray the cost of any subsidy associated with 
        a guarantee provided by an eligible public entity of 
        the State under section 381H in an amount that does not 
        exceed 5 percent of the total amount allocated for the 
        State under section 381E(g).
            ``(3) Source of funds.--The Secretary shall make 
        grants to a State under paragraphs (1) and (2) from 
        amounts allocated for the State in the accounts 
        specified in section 381E(c), by reducing each such 
        allocated amount by the same percentage.
    ``(b) Matching Grants.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary shall make a grant to any eligible State for 
        any fiscal year for which the State requests a grant 
        under this section in an amount equal to 5 percent of 
        the amount allocated for the State for the fiscal year 
        under section 381E(h).
            ``(2) Eligibility.--A State shall be eligible for a 
        grant under paragraph (1) if the State makes 
        commitments to the Secretary to--
                    ``(A) expend from non-Federal sources in 
                accordance with subsection (c) an amount that 
                is not less than 200 percent of the amount of 
                the grant; and
                    ``(B) maintain the amounts paid to the 
                State under this subsection and the amount 
                referred to in subparagraph (A) in an account 
                separate from all other State funds until 
                expended in accordance with subsection (c).
            ``(3) Source of funds.--If the Secretary makes a 
        grant under paragraph (1) before July 15 of the fiscal 
        year, the grant shall be made from amounts allocated 
        for the State in the accounts specified in section 
        381E(c) for the fiscal year, by reducing each allocated 
        amount by the same percentage.
    ``(c) Use of Funds.--A State to which funds are provided 
under this section shall use the funds in rural areas for any 
activity authorized under the authorities described in section 
381E(d) in accordance with the State strategic plan referred to 
in section 381D.
    ``(d) Maintenance of Effort.--The State shall provide 
assurances to the Secretary that funds provided to the State 
under this section will be used only to supplement, not to 
supplant, the amount of Federal, State, and local funds 
otherwise expended for rural development assistance in the 
State.
    ``(e) Appeals.--The Secretary shall provide to a State an 
opportunity to appeal any action taken with respect to the 
State under this section.
    ``(f) Administrative Costs.--Federal funds shall not be 
used for any administrative costs incurred by a State in 
carrying out this subtitle.
    ``(g) Expenditure of Funds by State.--
            ``(1) In general.--Payments to a State from a grant 
        under this section for a fiscal year shall be obligated 
        by the State in the fiscal year or in the succeeding 
        fiscal year. A State shall obligate funds under this 
        section to provide assistance to rural areas.
            ``(2) Failure to obligate.--If a State fails to 
        obligate payments in accordance with paragraph (1), the 
        Secretary shall make an equal reduction in the amount 
        of payments provided to the State under this section 
        for the immediately succeeding fiscal year.
            ``(3) Noncompliance.--
                    ``(A) Review.--The Secretary shall review 
                and monitor State compliance with this section.
                    ``(B) Penalty.--If the Secretary finds that 
                there has been misuse of grant funds provided 
                under this section, or noncompliance with any 
                of the terms and conditions of a grant, after 
                reasonable notice and opportunity for a 
                hearing--
                            ``(i) the Secretary shall notify 
                        the State of the finding; and
                            ``(ii) no further payments to the 
                        State shall be made with respect to the 
                        programs funded under this section 
                        until the Secretary is satisfied that 
                        there is no longer any failure to 
                        comply or that the noncompliance will 
                        be promptly corrected.
                    ``(C) Other sanctions.--In the case of a 
                finding of noncompliance made pursuant to 
                subparagraph (B), the Secretary may, in 
                addition to, or in lieu of, imposing the 
                sanctions described in subparagraph (B), impose 
                other appropriate sanctions, including 
                recoupment of money improperly expended for 
                purposes prohibited or not authorized by this 
                section and disqualification from the receipt 
                of financial assistance under this section.
    ``(h) No Entitlement to Contract, Grant, or Assistance.--
Nothing in this subtitle--
            ``(1) entitles any person to assistance or a 
        contract or grant; or
            ``(2) limits the right of a State to impose 
        additional limitations or conditions on assistance or a 
        contract or grant under this section.

``SEC. 381H. GUARANTEE AND COMMITMENT TO GUARANTEE LOANS.

    ``(a) Definition of Eligible Public Entity.--In this 
section, the term `eligible public entity' means any unit of 
general local government.
    ``(b) Guarantee and Commitment.--The Secretary, on such 
terms and conditions as the Secretary may prescribe, may 
guarantee and make commitments to guarantee notes or other 
obligations issued by eligible public entities, or by public 
agencies designated by the eligible public entities, for the 
purposes of financing rural development activities authorized 
and funded under section 381G.
    ``(c) Limitation.--The Secretary may not make a guarantee 
or commitment to guarantee with respect to a note or other 
obligation if the total amount of outstanding notes or 
obligations guaranteed under this section (excluding any amount 
repaid under the contract entered into under subsection 
(e)(1)(A)) for issuers in the State would exceed an amount 
equal to 5 times the sum of the total amount of grants made to 
the State under section 381G.
    ``(d) Payment of Principal, Interest, and Costs.--
Notwithstanding any other provision of this subtitle, a State 
to which a grant is made under section 381G may use the grant 
(including program income derived from the grant) to pay 
principal and interest due (including such servicing, 
underwriting, or other costs as may be specified in regulations 
of the Secretary) on any note or other obligation guaranteed 
under this section.
    ``(e) Repayment Contract; Security.--
            ``(1) In general.--To ensure the repayment of notes 
        or other obligations and charges incurred under this 
        section and as a condition for receiving the 
        guarantees, the Secretary shall require the issuer to--
                    ``(A) enter into a contract, in a form 
                acceptable to the Secretary, for repayment of 
                notes or other obligations guaranteed under 
                this section;
                    ``(B) pledge any grant for which the issuer 
                may become eligible under this subtitle; and
                    ``(C) furnish, at the discretion of the 
                Secretary, such other security as may be 
                considered appropriate by the Secretary in 
                making the guarantees.
            ``(2) Security.--To assist in ensuring the 
        repayment of notes or other obligations and charges 
        incurred under this section, a State shall pledge any 
        grant for which the State may become eligible under 
        this subtitle as security for notes or other 
        obligations and charges issued under this section by 
        any eligible public entity in the State.
    ``(f) Pledged Grants for Repayments.--Notwithstanding any 
other provision of this subtitle, the Secretary may apply 
grants pledged pursuant to paragraphs (1)(B) and (2) of 
subsection (e) to any repayments due the United States as a 
result of the guarantees.
    ``(g) Outstanding Obligations.--The total amount of 
outstanding obligations guaranteed on a cumulative basis by the 
Secretary pursuant to subsection (b) shall not at any time 
exceed such amount as may be authorized to be appropriated for 
such purpose for any fiscal year.
    ``(h) Purchase of Guaranteed Obligations by Federal 
Financing Bank.--Notes or other obligations guaranteed under 
this section may not be purchased by the Federal Financing 
Bank.
    ``(i) Full Faith and Credit.--The full faith and credit of 
the United States is pledged to the payment of all guarantees 
made under this section. Any such guarantee made by the 
Secretary shall be conclusive evidence of the eligibility of 
the obligations for the guarantee with respect to principal and 
interest. The validity of the guarantee shall be incontestable 
in the hands of a holder of the guaranteed obligations.

``SEC. 381I. LOCAL INVOLVEMENT.

    ``An application for assistance under this subtitle shall 
include evidence of significant community support for the 
project for which the assistance is requested. In the case of 
assistance for a community facilities or infrastructure 
project, the evidence shall be in the form of a certification 
of support for the project from each affected general purpose 
local government.

``SEC. 381J. INTERSTATE COLLABORATION.

    ``The Secretary shall permit the establishment of voluntary 
pooling arrangements among States, and regional fund-sharing 
agreements, to carry out projects receiving assistance under 
this subtitle.

``SEC. 381K. ANNUAL REPORT.

    ``(a) In General.--The Secretary, in collaboration with 
State, local, public, and private entities, State rural 
development councils, and community-based organizations, shall 
prepare an annual report that contains evaluations, 
assessments, and performance outcomes concerning the rural 
community advancement programs carried out under this subtitle.
    ``(b) Submission.--Not later than March 1 of each year, the 
Secretary shall--
            ``(1) submit the report required by subsection (a) 
        to Congress and the chief executives of the States 
        participating in the program established under this 
        subtitle; and
            ``(2) make the report available to State and local 
        participants.

``SEC. 381L. RURAL DEVELOPMENT INTERAGENCY WORKING GROUP.

    ``(a) In General.--The Secretary shall provide leadership 
within the Executive branch for, and assume responsibility for, 
establishing an interagency working group chaired by the 
Secretary.
    ``(b) Duties.--The working group shall establish policy 
for, coordinate, make recommendations with respect to, and 
evaluate the performance of, all Federal rural development 
efforts.

``SEC. 381M. DUTIES OF RURAL ECONOMIC AND COMMUNITY DEVELOPMENT STATE 
                    OFFICES.

    ``In carrying out this subtitle, the Director of a Rural 
Economic and Community Development State Office shall--
            ``(1) to the maximum extent practicable, ensure 
        that the State strategic plan referred to in section 
        381D is implemented;
            ``(2) coordinate community development objectives 
        within the State;
            ``(3) establish links between local, State, and 
        field office program administrators of the Department 
        of Agriculture;
            ``(4) ensure that recipient communities comply with 
        applicable Federal and State laws and requirements; and
            ``(5) integrate State development programs with 
        assistance under this subtitle.

``SEC. 381N. ELECTRONIC TRANSFER.

    ``The Secretary shall transfer funds in accordance with 
this subtitle through electronic transfer as soon as 
practicable after the date of enactment of this subtitle.

``SEC. 381O. RURAL VENTURE CAPITAL DEMONSTRATION PROGRAM.

    ``(a) In General.--The Secretary may designate for each 
fiscal year up to 10 community development venture capital 
organizations to demonstrate the utility of guarantees to 
attract increased private investment in rural private business 
enterprises.
    ``(b) Rural Business Investment Pool.--
            ``(1) Establishment.--To be eligible to participate 
        in the demonstration program, an organization referred 
        to in subsection (a) shall establish a rural business 
        private investment pool (referred to in this subsection 
        as a `pool') for the purpose of making equity 
        investments in rural private business enterprises.
            ``(2) Guarantee.--From amounts in the national 
        reserve account of the Trust Fund, the Secretary shall 
        guarantee the funds in a pool against loss, except that 
        the guarantee shall not exceed an amount equal to 30 
        percent of the total funds in the pool.
            ``(3) Amount.--The Secretary shall issue guarantees 
        covering not more than $15,000,000 of contingent 
        liabilities for each of fiscal years 1996 through 2002.
            ``(4) Term.--The term of a guarantee provided under 
        this subsection shall not exceed 10 years.
            ``(5) Submission of plan.--To be eligible to 
        participate in the demonstration program, an 
        organization referred to in subsection (a) shall submit 
        a plan that describes--
                    ``(A) potential sources and uses of the 
                pool to be established by the organization;
                    ``(B) the utility of the guarantee 
                authority in attracting capital for the pool; 
                and
                    ``(C) on selection, mechanisms for 
                notifying State, local, and private nonprofit 
                business development organizations and 
                businesses of the existence of the pool.
            ``(6) Competition.--
                    ``(A) In general.--The Secretary shall 
                conduct a competition for the designation and 
                establishment of pools.
                    ``(B) Priority.--In conducting the 
                competition, the Secretary shall give priority 
                to organizations that--
                            ``(i) have a demonstrated record of 
                        performance, or have a board and 
                        executive director with experience, in 
                        venture capital, small business equity 
                        investment, or community development 
                        finance;
                            ``(ii) propose to serve low-income 
                        communities;
                            ``(iii) propose to maintain an 
                        average investment of not more than 
                        $500,000 from the pool of the 
                        organization;
                            ``(iv) invest funds statewide or in 
                        a multicounty region; and
                            ``(v) propose to target job 
                        opportunities resulting from the 
                        investments primarily to economically 
                        disadvantaged individuals, as 
                        determined by the Secretary.
                    ``(C) Geographic diversity.--To the extent 
                practicable, the Secretary shall designate 
                organizations in diverse geographic areas.''.

SEC. 762. SIMPLIFIED, UNIFORM APPLICATION FOR ASSISTANCE FROM ALL 
                    FEDERAL RURAL DEVELOPMENT PROGRAMS.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary of Agriculture shall develop a streamlined, 
simplified, and uniform application which shall be used in 
applying for assistance under all of the following:
            (1) Sections 304(b), 306, 306A, 306C, 306D, 310B, 
        and 375 and subtitle E of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1924(b), 1926, 1926a, 
        1926c, 1926d, and 1932).
            (2) Subtitle G of title XVI and sections 2281, 
        2333, and 2381 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5901-5908, 5177a, 
        950aaa-2, and 3125b).
            (3) Subtitle C of title IX of the Food, 
        Agriculture, Conservation, and Trade Act Amendments of 
        1991 (Public Law 102-237: 7 U.S.C. 5930 note).
            (4) Section 1323(b) of the Food Security Act of 
        1985 (Public Law 99-198; 7 U.S.C. 1932 note).
            (5) Title V and section 603(c) of the Rural 
        Development Act of 1972 (7 U.S.C. 26661-2669 and 
        2204a(c)).
            (6) Sections 5 and 311 and title IV of the Rural 
        Electrification Act of 1936 (7 U.S.C. 905, 940a, and 
        941-950b).

SEC. 763. COMMUNITY FACILITIES GRANT PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) (as amended by section 
741(a)(5)) is amended by adding at the end the following:
            ``(19) Community facilities grant program.--
                    ``(A) In general.--The Secretary may make 
                grants, in a total amount not to exceed 
                $10,000,000 for any fiscal year, to 
                associations, units of general local 
                government, nonprofit corporations, and 
                federally recognized Indian tribes to provide 
                the Federal share of the cost of developing 
                specific essential community facilities in 
                rural areas.
                    ``(B) Federal share.--
                            ``(i) In general.--Except as 
                        provided in clauses (ii) and (iii), the 
                        Secretary shall, by regulation, 
                        establish the amount of the Federal 
                        share of the cost of the facility under 
                        this paragraph.
                            ``(ii) Maximum amount.--The amount 
                        of a grant provided under this 
                        paragraph for a facility shall not 
                        exceed 75 percent of the cost of 
                        developing the facility.
                            ``(iii) Graduated scale.--The 
                        Secretary shall provide for a graduated 
                        scale for the amount of the Federal 
                        share provided under this paragraph, 
                        with higher Federal shares for 
                        facilities in communities that have 
                        lower community population and income 
                        levels, as determined by the 
                        Secretary.''.

    Subtitle C--Amendments to the Rural Electrification Act of 1936

SEC. 771. PURPOSES; INVESTIGATIONS AND REPORTS.

    Section 2 of the Rural Electrification Act of 1936 (7 
U.S.C. 902) is amended--
            (1) by striking ``Sec. 2. (a) The Secretary of 
        Agriculture is'' and inserting the following:

``SEC. 2. GENERAL AUTHORITY OF THE SECRETARY OF AGRICULTURE.

    ``(a) Loans.--The Secretary of Agriculture (referred to in 
this Act as the `Secretary') is'';
            (2) in subsection (a)--
                    (A) by striking ``and the furnishing'' the 
                first place it appears and all that follows 
                through ``central station service''; and
                    (B) by striking ``systems; to make'' and 
                all that follows and inserting ``systems.''; 
                and
            (3) by striking subsection (b) and inserting the 
        following:
    ``(b) Investigations and Reports.--The Secretary may make, 
or cause to be made, studies, investigations, and reports 
regarding matters, including financial, technological, and 
regulatory matters, affecting the condition and progress of 
electric, telecommunications, and economic development in rural 
areas, and publish and disseminate information with respect to 
the matters.''.

SEC. 772. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 3 of the Rural Electrification Act 
of 1936 (7 U.S.C. 903) is amended to read as follows:

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated such sums as are 
necessary to carry out this Act.''.
    (b) Conforming Amendments.--
            (1) Section 301(a) of the Rural Electrification Act 
        of 1936 (7 U.S.C. 931(a)) is amended--
                    (A) by striking ``(a)'' the first place the 
                term appears; and
                    (B) in paragraph (3), by striking 
                ``notwithstanding section 3(a) of title I,''.
            (2) Section 302(b)(2) of the Rural Electrification 
        Act of 1936 (7 U.S.C. 932(b)(2)) is amended by striking 
        ``pursuant to section 3(a) of this Act''.
            (3) The last sentence of section 406(a) of the 
        Rural Electrification Act of 1936 (7 U.S.C. 946(a)) is 
        amended by striking ``pursuant to section 3(a) of this 
        Act''.

SEC. 773. LOANS FOR ELECTRICAL PLANTS AND TRANSMISSION LINES.

    Section 4 of the Rural Electrification Act of 1936 (7 
U.S.C. 904) is amended--
            (1) in the first sentence--
                    (A) by striking ``for the furnishing of'' 
                and all that follows through ``central station 
                service and''; and
                    (B) by striking ``the provisions of 
                sections 3(d) and 3(e) but without regard to 
                the 25 per centum limitation therein 
                contained,'' and inserting ``section 3,'';
            (2) in the second sentence, by striking ``: 
        Provided further, That all'' and all that follows 
        through ``loan: And provided further, That'' and 
        inserting ``, except that''; and
            (3) in the third sentence, by striking ``and 
        section 5''.

SEC. 774. LOANS FOR ELECTRICAL AND PLUMBING EQUIPMENT.

    (a) In General.--Section 5 of the Rural Electrification Act 
of 1936 (7 U.S.C. 905) is repealed.
    (b) Conforming Amendments.--Section 12(a) of the Rural 
Electrification Act of 1936 (7 U.S.C. 912(a)) is amended--
            (1) by striking ``: Provided, however, That'' and 
        inserting ``, except that,''; and
            (2) by striking ``, and with respect to any loan 
        made under section 5,'' and all that follows through 
        ``section 3''.

SEC. 775. TESTIMONY ON BUDGET REQUESTS.

    Section 6 of the Rural Electrification Act of 1936 (7 
U.S.C. 906) is amended by striking the second sentence.

SEC. 776. TRANSFER OF FUNCTIONS OF ADMINISTRATION CREATED BY EXECUTIVE 
                    ORDER.

    Section 8 of the Rural Electrification Act of 1936 (7 
U.S.C. 908) is repealed.

SEC. 777. ANNUAL REPORT.

    Section 10 of the Rural Electrification Act of 1936 (7 
U.S.C. 910) is repealed.

SEC. 778. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES 
                    TO ELECTRIC CUSTOMERS.

    The Rural Electrification Act of 1936 is amended by 
inserting after section 16 (7 U.S.C. 916) the following:

``SEC. 17. PROHIBITION ON RESTRICTING WATER AND WASTE FACILITY SERVICES 
                    TO ELECTRIC CUSTOMERS.

    ``(a) Prohibition.--Assistance under any rural development 
program administered by the Secretary or any agency of the 
Department of Agriculture shall not be conditioned on any 
requirement that the recipient of the assistance accept or 
receive electric service from any particular utility, supplier, 
or cooperative.
    ``(b) Ensuring Compliance.--The Secretary shall establish, 
by regulation, adequate safeguards to ensure that assistance 
under any rural development program is not subject to such a 
condition. The safeguards shall include periodic certifications 
and audits, and appropriate measures and sanctions against any 
person violating, or attempting to violate subsection (a).
    ``(c) Definition of Rural Development Programs.--In this 
section, the term `rural development program' means the 
following:
            ``(1) Sections 304(b), 306, 306A, 306C, 306D, 310B, 
        and 375 and subtitle E of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1924(b), 1926, 1926a, 
        1926c, 1926d, and 1932).
            ``(2) Subtitle G of title XVI and sections 2281, 
        2333, and 2381 of the Food, Agriculture, Conservation, 
        and Trade Act of 1990 (7 U.S.C. 5901-5908, 5177a, 
        950aaa-2, and 3125b).
            ``(3) Subtitle C of title IX of the Food, 
        Agriculture, Conservation, and Trade Act Amendments of 
        1991 (Public Law 102-237: 7 U.S.C. 5930 note).
            ``(4) Section 1323(b) of the Food Security Act of 
        1985 (Public Law 99-198; 7 U.S.C. 1932 note).
            ``(5) Title V and section 603(c) of the Rural 
        Development Act of 1972 (7 U.S.C. 26661-2669 and 
        2204a(c)).
            ``(6) Sections 5 and 311 and title IV of this Act 
        (7 U.S.C. 905, 940a, and 941-950b).
    ``(d) Regulations.--Not later than 60 days after the date 
of enactment of the Federal Agriculture Improvement and Reform 
Act of 1996, the Secretary shall issue final regulations to 
ensure compliance with subsection (a).''

SEC. 779. TELEPHONE LOAN TERMS AND CONDITIONS.

    Section 309 of the Rural Electrification Act of 1936 (7 
U.S.C. 939) is amended--
            (1) in subsection (a), by striking ``(a) In 
        General.--''; and
            (2) by striking subsection (b).

SEC. 780. PRIVATIZATION PROGRAM.

    Section 311 of the Rural Electrification Act of 1936 (7 
U.S.C. 940a) is repealed.

SEC. 781. RURAL BUSINESS INCUBATOR FUND.

    (a) In General.--Section 502 of the Rural Electrification 
Act of 1936 (7 U.S.C. 950aa-1) is repealed.
    (b) Conforming Amendments.--Section 501 of the Rural 
Electrification Act of 1936 (7 U.S.C. 950aa) is amended--
            (1) in paragraph (5), by inserting ``and'' at the 
        end;
            (2) in paragraph (6), by striking ``; and'' at the 
        end and inserting a period; and
            (3) by striking paragraph (7).

         Subtitle D--Miscellaneous Rural Development Provisions

SEC. 791. INTEREST RATE FORMULA.

    (a) Bankhead-Jones Farm Tenant Act.--Section 32(e) of the 
Bankhead-Jones Farm Tenant Act (7 U.S.C. 1011) is amended by 
striking the fifth sentence and inserting the following: ``A 
loan under this subsection shall be made under a contract that 
provides, under such terms and conditions as the Secretary 
considers appropriate, for the repayment of the loan in not 
more than 30 years, with interest at a rate not to exceed the 
current market yield for outstanding municipal obligations with 
remaining periods to maturity comparable to the average 
maturity for the loan, adjusted to the nearest \1/8\ of 1 
percent.''.
    (b) Watershed Protection and Flood Prevention Act.--Section 
8 of the Watershed Protection and Flood Prevention Act (16 
U.S.C. 1006a) is amended by striking the second sentence and 
inserting the following: ``A loan or advance under this section 
shall be made under a contract or agreement that provides, 
under such terms and conditions as the Secretary considers 
appropriate, for the repayment of the loan or advance in not 
more than 50 years from the date when the principal benefits of 
the works of improvement first become available, with interest 
at a rate not to exceed the current market yield for 
outstanding municipal obligations with remaining periods to 
maturity comparable to the average maturity for the loan, 
adjusted to the nearest \1/8\ of 1 percent.''.

SEC. 792. GRANTS FOR FINANCIALLY STRESSED FARMERS, DISLOCATED FARMERS, 
                    AND RURAL FAMILIES.

    (a) In General.--Section 502 of the Rural Development Act 
of 1972 (7 U.S.C. 2662) is amended by striking subsection (f).
    (b) Conforming Amendments.--
            (1) Section 2389 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (Public Law 101-
        624; 7 U.S.C. 2662 note) is amended by striking 
        subsection (d).
            (2) Section 503(c) of the Rural Development Act of 
        1972 (7 U.S.C. 2663(c)) is amended--
                    (A) in paragraph (1)--
                            (i) by striking ``(1)'';
                            (ii) by striking ``section 502(e)'' 
                        and all that follows through ``shall be 
                        distributed'' and inserting 
                        ``subsections (e), (h), and (i) of 
                        section 502 shall be distributed''; and
                            (iii) by striking ``objectives of'' 
                        and all that follows through ``title'' 
                        and inserting ``objectives of 
                        subsections (e), (h), and (i) of 
                        section 502''; and
                    (B) by striking paragraph (2).

SEC. 793. FUND FOR RURAL AMERICA.

    (a) In General.--There is established in the Treasury of 
the United States an account to be known as the Fund for Rural 
America (referred to in this section as the ``Account'') to 
provide funds for activities described in subsection (c).
    (b) Funding.--
            (1) In general.--On January 1, 1997, October 1, 
        1998, and October 1, 1999, out of any funds in the 
        Treasury not otherwise appropriated, the Secretary of 
        the Treasury shall transfer $100,000,000 to the 
        Account.
            (2) Entitlement.-- The Secretary of Agriculture 
        (referred to in this section as the ``Secretary'')--
                    (A) shall be entitled to receive the funds 
                transferred to the Account under paragraph (1);
                    (B) shall accept the funds; and
                    (C) shall use the funds to carry out this 
                section.
            (3) Purposes.--Subject to subsection (d), of the 
        amounts transferred to the Account for a fiscal year, 
        the Secretary shall make available--
                    (A) for activities described in subsection 
                (c)(1), not less than \1/3\ and not more than 
                \2/3\ of the funds in the Account; and
                    (B) for activities described in subsection 
                (c)(2), all funds in the Account not made 
                available by the Secretary for activities 
                described in subsection (c)(1).
    (c) Activities.--
            (1) Rural development.--
                    (A) In general.--The Secretary may use the 
                funds in the Account for a rural development 
                activity--
                            (i) authorized under the Housing 
                        Act of 1949 for--
                                    (I) direct loans to low-
                                income borrowers under section 
                                502 (42 U.S.C. 1472);
                                    (II) loans for financial 
                                assistance for housing for 
                                domestic farm laborers under 
                                section 514 (42 U.S.C. 1484);
                                    (III) financial assistance 
                                for housing for domestic farm 
                                laborers under section 516 (42 
                                U.S.C. 1486);
                                    (IV) payments for elderly 
                                who are not now receiving 
                                rental assistance under section 
                                521 (42 U.S.C. 1490a);
                                    (V) grants and contracts 
                                for mutual and self-help 
                                housing under section 
                                523(b)(1)(A) (42 U.S.C. 
                                1490c(b)(1)(A)); or
                                    (VI) grants for rural 
                                housing preservation under 
                                section 533 (42 U.S.C. 1490m); 
                                or
                            (ii) conducted under any rural 
                        development program, including a 
                        program authorized under--
                                    (I) the Consolidated Farm 
                                and Rural Development Act (7 
                                U.S.C. 1921 et seq.);
                                    (II) subtitle G of title 
                                XVI and title XXIII of the 
                                Food, Agriculture, 
                                Conservation, and Trade Act of 
                                1990;
                                    (III) title V of the Rural 
                                Development Act of 1971 (7 
                                U.S.C. 2661 et seq.); or
                                    (IV) section 1323(b) of the 
                                Food Security Act of 1985 
                                (Public Law 99-198; 7 U.S.C. 
                                1932 note).
                    (B) Limitation on programs funded.--The 
                Secretary may not expend funds made available 
                to carry out activities described in 
                subparagraph (A) for any activity that did not 
                receive appropriations for fiscal year 1995. 
                Funds expended under this section for any 
                program purpose shall be spent in accordance 
                with and subject to the applicable program 
                limitations, restrictions, and priorities found 
                in the underlying program authority and this 
                Act.
                    (C) Limitation on housing assistance.--Not 
                more than 20 percent of the funds made 
                available to carry out activities described in 
                subparagraph (A) shall be made available to 
                carry out activities described in subparagraph 
                (A)(i).
                    (D) Disclosure of allocation.--For any 
                fiscal year, the Secretary shall not disclose 
                the allocation of funds under this section for 
                any activity described in subparagraph (A) 
                until the date that is 1 day after the date of 
                enactment of legislation authorizing 
                appropriations for the Department of 
                Agriculture for any period in the fiscal year.
            (2) Research.--
                    (A) In general.--The Secretary may use the 
                funds in the Account for research, extension, 
                and education grants to--
                            (i) increase international 
                        competitiveness, efficiency, and farm 
                        profitability;
                            (ii) reduce economic and health 
                        risks;
                            (iii) conserve and enhance natural 
                        resources;
                            (iv) develop new crops, new crop 
                        uses, and new agricultural applications 
                        of biotechnology;
                            (v) enhance animal agricultural 
                        resources;
                            (vi) preserve plant and animal 
                        germplasm;
                            (vii) increase economic 
                        opportunities in farming and rural 
                        communities; and
                            (viii) expand locally-owned value-
                        added processing.
                    (B) Eligible grantee.--The Secretary may 
                make a grant under this paragraph to--
                            (i) a Federal research agency;
                            (ii) a national laboratory;
                            (iii) a college or university or a 
                        research foundation maintained by a 
                        college or university; or
                            (iv) a private research 
                        organization with an established and 
                        demonstrated capacity to perform 
                        research or technology transfer.
                    (C) Use of grant.--
                            (i) In general.--A grant made under 
                        this paragraph may be used by a grantee 
                        for 1 or more of the following uses:
                                    (I) Outcome-oriented 
                                research at the discovery end 
                                of the spectrum to provide 
                                breakthrough results.
                                    (II) Exploratory and 
                                advanced development and 
                                technology with well-identified 
                                outcomes.
                                    (III) A national, regional, 
                                or multi-State program oriented 
                                primarily toward extension 
                                programs and education programs 
                                demonstrating and supporting 
                                the competitiveness of United 
                                States agriculture.
                            (ii) Smaller institutions.--Of the 
                        amounts made available for activities 
                        described in this paragraph, not less 
                        than 15 percent shall be awarded to 
                        colleges, universities, or research 
                        foundations eligible for a grant under 
                        subparagraph (B)(iii) that rank in the 
                        lowest \1/3\ of such colleges, 
                        universities, and foundations on the 
                        basis of Federal research funds 
                        received under a provision of law other 
                        than this section.
                    (D) Administration.--
                            (i) Priority.--In administering 
                        this paragraph, the Secretary shall--
                                    (I) establish criteria for 
                                allocating grants based on the 
                                priorities in subparagraph (A) 
                                and in consultation with the 
                                National Agricultural Research, 
                                Extension, Education, and 
                                Economics Advisory Board 
                                established under section 1408 
                                of the National Agricultural 
                                Research, Extension, and 
                                Teaching Policy Act of 1977 (7 
                                U.S.C. 3123);
                                    (II) seek and accept 
                                proposals for grants;
                                    (III) determine the 
                                relevance and merit of 
                                proposals through a system of 
                                peer review and review by the 
                                National Agricultural Research, 
                                Extension, Education, and 
                                Economics Advisory Board; and
                                    (IV) award grants on the 
                                basis of merit, quality, and 
                                relevance to advancing the 
                                purposes of federally supported 
                                agricultural research, 
                                extension, and education 
                                provided in section 1402 of the 
                                National Agricultural Research, 
                                Extension, and Teaching Policy 
                                Act of 1977 (7 U.S.C. 3101).
                            (ii) Competitive basis.--A grant 
                        under this paragraph shall be awarded 
                        on a competitive basis.
                            (iii) Terms.--A grant under this 
                        paragraph shall have a term that does 
                        not exceed 5 years.
                            (iv) Matching funds.--As a 
                        condition of making a grant under this 
                        paragraph, the Secretary shall require 
                        the funding of the grant with equal 
                        matching funds from a non-Federal 
                        source if the grant is--
                                    (I) for applied research 
                                that is commodity-specific; and
                                    (II) not of national scope.
                            (v) Delegation.--The Secretary 
                        shall administer this section through 
                        the Cooperative State Research, 
                        Education, and Extension Service of the 
                        Department of Agriculture.
                            (vi) Availability of funds.--Funds 
                        shall be available for obligation under 
                        this paragraph for a 2-year period.
                            (vii) Administrative costs.--The 
                        Secretary may use not more than 4 
                        percent of the funds made available for 
                        activities described in this paragraph 
                        for administrative costs incurred by 
                        the Secretary in carrying out this 
                        paragraph.
                            (viii) Buildings.--Funds made 
                        available for activities described in 
                        this paragraph shall not be used for 
                        the construction of a new building or 
                        the acquisition, expansion, remodeling, 
                        or alteration of an existing building 
                        (including site grading and improvement 
                        and architect fees).
    (d) Limitations.--Amounts in the Account may not be used 
for an activity described in subsection (c) for a fiscal year 
if the program funding level for the fiscal year for the 
activity is less than 90 percent of the amount appropriated for 
the activity for fiscal year 1996, adjusted for inflation.

SEC. 794. UNDER SECRETARY OF AGRICULTURE FOR RURAL ECONOMIC AND 
                    COMMUNITY DEVELOPMENT RENAMED THE UNDER SECRETARY 
                    OF AGRICULTURE FOR RURAL DEVELOPMENT.

    (a) In General.--Section 231 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6941) is 
amended--
            (1) in the section heading, by striking ``ECONOMIC 
        AND COMMUNITY''; and
            (2) by striking ``Economic and Community'' each 
        place such term appears in subsections (a), (b), and 
        (c).
    (b) Conforming Amendment.--Section 5314 of title 5, United 
States Code, is amended by striking ``Economic and Community''.

             TITLE VIII--RESEARCH, EXTENSION, AND EDUCATION

  Subtitle A--Modification and Extension of Activities Under 1977 Act

SEC. 801. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION.

    Section 1402 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101) is 
amended to read as follows:

``SEC. 1402. PURPOSES OF AGRICULTURAL RESEARCH, EXTENSION, AND 
                    EDUCATION.

    ``The purposes of federally supported agricultural 
research, extension, and education are to--
            ``(1) enhance the competitiveness of the United 
        States agriculture and food industry in an increasingly 
        competitive world environment;
            ``(2) increase the long-term productivity of the 
        United States agriculture and food industry while 
        maintaining and enhancing the natural resource base on 
        which rural America and the United States agricultural 
        economy depend;
            ``(3) develop new uses and new products for 
        agricultural commodities, such as alternative fuels, 
        and develop new crops;
            ``(4) support agricultural research and extension 
        to promote economic opportunity in rural communities 
        and to meet the increasing demand for information and 
        technology transfer throughout the United States 
        agriculture industry;
            ``(5) improve risk management in the United States 
        agriculture industry;
            ``(6) improve the safe production and processing 
        of, and adding of value to, United States food and 
        fiber resources using methods that maintain the balance 
        between yield and environmental soundness;
            ``(7) support higher education in agriculture to 
        give the next generation of Americans the knowledge, 
        technology, and applications necessary to enhance the 
        competitiveness of United States agriculture; and
            ``(8) maintain an adequate, nutritious, and safe 
        supply of food to meet human nutritional needs and 
        requirements.''.

SEC. 802. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

    (a) In General.--Section 1408 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3123) is amended to read as follows:

``SEC. 1408. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

    ``(a) Establishment.--The Secretary shall establish within 
the Department of Agriculture a board to be known as the 
`National Agricultural Research, Extension, Education, and 
Economics Advisory Board'.
    ``(b) Membership.--
            ``(1) In general.--The Advisory Board shall consist 
        of 30 members, appointed by the Secretary.
            ``(2) Selection of members.--The Secretary shall 
        appoint members of the Advisory Board from nominations 
        submitted by organizations, associations, societies, 
        councils, federations, groups, and companies fitting 
        the criteria specified in paragraph (3).
            ``(3) Membership categories.--The Advisory Board 
        shall consist of members from each of the following 
        categories:
                    ``(A) 1 member representing a national farm 
                organization.
                    ``(B) 1 member representing farm 
                cooperatives.
                    ``(C) 1 member actively engaged in the 
                production of a food animal commodity.
                    ``(D) 1 member actively engaged in the 
                production of a plant commodity.
                    ``(E) 1 member representing a national 
                animal commodity organization.
                    ``(F) 1 member representing a national crop 
                commodity organization.
                    ``(G) 1 member representing a national 
                aquaculture association.
                    ``(H) 1 member representing a national food 
                animal science society.
                    ``(I) 1 member representing a national 
                crop, soil, agronomy, horticulture, or weed 
                science society.
                    ``(J) 1 member representing a national food 
                science organization.
                    ``(K) 1 member representing a national 
                human health association.
                    ``(L) 1 member representing a national 
                nutritional science society.
                    ``(M) 1 member representing the land-grant 
                colleges and universities eligible to receive 
                funds under the Act of July 2, 1862 (7 U.S.C. 
                301 et seq.).
                    ``(N) 1 member representing the land-grant 
                colleges and universities eligible to receive 
                funds under the Act of August 30, 1890 (7 
                U.S.C. 321 et seq.), including Tuskegee 
                University.
                    ``(O) 1 member representing the 1994 
                Institutions (as defined in section 532 of the 
                Equity in Educational Land-Grant Status Act of 
                1994 (Public Law 103-382; 7 U.S.C. 301 note)).
                    ``(P) 1 member representing Hispanic-
                serving institutions.
                    ``(Q) 1 member representing the American 
                Colleges of Veterinary Medicine.
                    ``(R) 1 member representing that portion of 
                the scientific community not closely associated 
                with agriculture.
                    ``(S) 1 member engaged in the 
                transportation of food and agricultural 
                products to domestic and foreign markets.
                    ``(T) 1 member representing food retailing 
                and marketing interests.
                    ``(U) 1 member representing food and fiber 
                processors.
                    ``(V) 1 member actively engaged in rural 
                economic development.
                    ``(W) 1 member representing a national 
                consumer interest group.
                    ``(X) 1 member representing a national 
                forestry group.
                    ``(Y) 1 member representing a national 
                conservation or natural resource group.
                    ``(Z) 1 member representing private sector 
                organizations involved in international 
                development.
                    ``(AA) 1 member representing an agency 
                within the Department of Agriculture that lacks 
                research capabilities.
                    ``(BB) 1 member representing a research 
                agency of the Federal Government (other than 
                the Department of Agriculture).
                    ``(CC) 1 member representing a national 
                social science association.
                    ``(DD) 1 member representing national 
                organizations directly concerned with 
                agricultural research, education, and 
                extension.
            ``(4) Ex officio members.--The Secretary, the Under 
        Secretary of Agriculture for Research, Education, and 
        Economics, the Administrator of the Agricultural 
        Research Service, the Administrator of the Cooperative 
        State Research, Education, and Extension Service, the 
        Administrator of the Economic Research Service, and the 
        Administrator of the National Agricultural Statistics 
        Service shall serve as ex officio members of the 
        Advisory Board.
            ``(5) Officers.--At the first meeting of the 
        Advisory Board each year, the members shall elect from 
        among the members of the Advisory Board a chairperson, 
        vice chairperson, and 7 additional members to serve on 
        the executive committee established under paragraph 
        (6).
            ``(6) Executive committee.--The Advisory Board 
        shall establish an executive committee charged with the 
        responsibility of working with the Secretary and 
        officers and employees of the Department of Agriculture 
        to summarize and disseminate the recommendations of the 
        Advisory Board.
    ``(c) Duties.--The Advisory Board shall--
            ``(1) review and provide consultation to the 
        Secretary and land-grant colleges and universities on 
        long-term and short-term national policies and 
        priorities, as set forth in section 1402, relating to 
        agricultural research, extension, education, and 
        economics;
            ``(2) evaluate the results and effectiveness of 
        agricultural research, extension, education, and 
        economics with respect to the policies and priorities;
            ``(3) review and make recommendations to the Under 
        Secretary of Agriculture for Research, Education, and 
        Economics on the research, extension, education, and 
        economics portion of the draft strategic plan required 
        under section 306 of title 5, United States Code; and
            ``(4) review the mechanisms of the Department of 
        Agriculture for technology assessment (which should be 
        conducted by qualified professionals) for the purposes 
        of--
                    ``(A) performance measurement and 
                evaluation of the implementation by the 
                Secretary of the strategic plan required under 
                section 306 of title 5, United States Code;
                    ``(B) implementation of the national 
                research policies and priorities set forth in 
                section 1402; and
                    ``(C) the development of mechanisms for the 
                assessment of emerging public and private 
                agricultural research and technology transfer 
                initiatives.
    ``(d) Consultation.--In carrying out this section, the 
Advisory Board shall solicit opinions and recommendations from 
persons who will benefit from and use federally funded 
agricultural research, extension, education, and economics.
    ``(e) Appointment.--A member of the Advisory Board shall be 
appointed by the Secretary for a term of up to 3 years. The 
members of the Advisory Board shall be appointed to serve 
staggered terms.
    ``(f) Federal Advisory Committee Act.--The Advisory Board 
shall be deemed to have filed a charter for the purpose of 
section 9(c) of the Federal Advisory Committee Act (5 U.S.C. 
App.).
    ``(g) Termination.--The Advisory Board shall remain in 
existence until September 30, 2002.''.
    (b) Conforming Amendments.--
            (1) Section 1404(1) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103(1)) is amended by striking ``National 
        Agricultural Research and Extension Users Advisory 
        Board'' and inserting ``National Agricultural Research, 
        Extension, Education, and Economics Advisory Board''.
            (2) Section 1410(2) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3125(2)) is amended by striking ``the 
        recommendations of the Advisory Board developed under 
        section 1408(g),'' and inserting ``any recommendations 
        of the Advisory Board''.
            (3) The last sentence of section 4(a) of the 
        Renewable Resources Extension Act of 1978 (16 U.S.C. 
        1673(a)) is amended by striking ``National Agricultural 
        Research and Extension Users Advisory Board'' and 
        inserting ``National Agricultural Research, Extension, 
        Education, and Economics Advisory Board''.

SEC. 803. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR FEDERAL-STATE 
                    COOPERATIVE PROGRAMS.

    Section 1409A of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3124a) is 
amended by adding at the end the following:
    ``(e) Applicability of Federal Advisory Committee Act.--
            ``(1) Public meetings.--All meetings of any entity 
        described in paragraph (3) shall be publicly announced 
        in advance and shall be open to the public. Detailed 
        minutes of meetings and other appropriate records of 
        the activities of such an entity shall be kept and made 
        available to the public on request.
            ``(2) Exemption.--The Federal Advisory Committee 
        Act (5 U.S.C. App.) and title XVIII of this Act shall 
        not apply to any entity described in paragraph (3).
            ``(3) Entities described.--This subsection shall 
        apply to any committee, board, commission, panel, or 
        task force, or similar entity that--
                    ``(A) is created for the purpose of 
                cooperative efforts in agricultural research, 
                extension, or teaching; and
                    ``(B) consists entirely of--
                            ``(i) full-time Federal employees; 
                        and
                            ``(ii) one or more individuals who 
                        are employed by, or are officials of--
                                    ``(I) a State cooperative 
                                institution or State 
                                cooperative agency; or
                                    ``(II) a public college or 
                                university or other 
                                postsecondary institution.''.

SEC. 804. COORDINATION AND PLANNING OF AGRICULTURAL RESEARCH, 
                    EXTENSION, AND EDUCATION.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by inserting after section 1413 
(7 U.S.C. 3128) the following:

``SEC. 1413A. ACCOUNTABILITY.

    ``(a) Review of Information Technology Systems.--The 
Secretary shall conduct a comprehensive review of state-of-the-
art information technology systems that are available for use 
in developing the system required by subsection (b).
    ``(b) Monitoring and Evaluation System.--The Secretary 
shall develop and carry out a system to monitor and evaluate 
agricultural research and extension activities conducted or 
supported by the Department of Agriculture that will enable the 
Secretary to measure the impact and effectiveness of research, 
extension, and education programs according to priorities, 
goals, and mandates established by law. In developing the 
system, the Secretary shall incorporate information transfer 
technologies to optimize public access to research information.
    ``(c) Consistency With Other Requirements.--The Secretary 
shall develop and implement the system in a manner consistent 
with the Government Performance and Results Act of 1993 (Public 
Law 103-62; 107 Stat. 285) and amendments made by the Act.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section.

``SEC. 1413B. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION FOR COMPETITIVE 
                    RESEARCH, EXTENSION, AND EDUCATION PROGRAMS.

    ``The Federal Advisory Committee Act (5 U.S.C. App.) and 
title XVIII of this Act shall not apply to any committee, 
board, commission, panel, or task force, or similar entity, 
created solely for the purpose of reviewing applications or 
proposals requesting funding under any competitive research, 
extension, or education program carried out by the 
Secretary.''.

SEC. 805. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
                    EDUCATION.

    (a) Purpose of Grants.--Section 1417(b) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(b)) is amended by striking paragraph (4) 
and inserting the following:
            ``(4) to design and implement food and agricultural 
        programs to build teaching and research capacity at 
        colleges and universities having significant minority 
        enrollments;''.
    (b) Research Foundations.--Section 1417(c) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(c)) is amended by adding at the end the 
following:
            ``(3) Research foundations.--An eligible college or 
        university under subsection (b) includes a research 
        foundation maintained by the college or university.''.
    (c) Extension of Program.--Section 1417(i) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(i)) is amended by striking ``1995'' and 
inserting ``1997''.
    (d) Secondary Education and 2-Year Postsecondary Education 
Teaching Programs.--Section 1417 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3152) is amended--
            (1) by redesignating subsections (h) and (i) as 
        subsections (i) and (j), respectively; and
            (2) by inserting after subsection (g) the 
        following:
    ``(h) Secondary Education and 2-Year Postsecondary 
Education Teaching Programs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Institution of higher education.--The 
                term `institution of higher education' has the 
                meaning given the term in section 1201(a) of 
                the Higher Education Act of 1965 (20 U.S.C. 
                1141(a)).
                    ``(B) Secondary school.--The term 
                `secondary school' has the meaning given the 
                term in section 14101(25) of the Elementary and 
                Secondary Education Act of 1965 (20 U.S.C. 
                8801(25)).
            ``(2) Agriscience and agribusiness education.--The 
        Secretary shall--
                    ``(A) promote and strengthen secondary 
                education and 2-year postsecondary education in 
                agriscience and agribusiness in order to help 
                ensure the existence in the United States of a 
                qualified workforce to serve the food and 
                agricultural sciences system; and
                    ``(B) promote complementary and synergistic 
                linkages among secondary, 2-year postsecondary, 
                and higher education programs in the food and 
                agricultural sciences in order to promote 
                excellence in education and encourage more 
                young Americans to pursue and complete a 
                baccalaureate or higher degree in the food and 
                agricultural sciences.
            ``(3) Grants.--The Secretary may make competitive 
        or noncompetitive grants, for grant periods not to 
        exceed 5 years, to public secondary schools, and 
        institutions of higher education that award an 
        associate's degree, that the Secretary determines have 
        made a commitment to teaching agriscience and 
        agribusiness--
                    ``(A) to enhance curricula in agricultural 
                education;
                    ``(B) to increase faculty teaching 
                competencies;
                    ``(C) to interest young people in pursuing 
                higher education in order to prepare for 
                scientific and professional careers in the food 
                and agricultural sciences;
                    ``(D) to promote the incorporation of 
                agriscience and agribusiness subject matter 
                into other instructional programs, particularly 
                classes in science, business, and consumer 
                education;
                    ``(E) to facilitate joint initiatives by 
                the grant recipient with other secondary 
                schools, institutions of higher education that 
                award an associate's degree, and institutions 
                of higher education that award a bachelor's 
                degree to maximize the development and use of 
                resources, such as faculty, facilities, and 
                equipment, to improve agriscience and 
                agribusiness education; and
                    ``(F) to support other initiatives designed 
                to meet local, State, regional, or national 
                needs related to promoting excellence in 
                agriscience and agribusiness education.''.

SEC. 806. GRANTS FOR RESEARCH ON THE PRODUCTION AND MARKETING OF 
                    ALCOHOLS AND INDUSTRIAL HYDROCARBONS FROM 
                    AGRICULTURAL COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
is amended by striking ``1995'' and inserting ``1997''.

SEC. 807. POLICY RESEARCH CENTERS.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by inserting after section 1419 
(7 U.S.C. 3154) the following:

``SEC. 1419A. POLICY RESEARCH CENTERS.

    ``(a) In General.--Consistent with this section, the 
Secretary may make grants, competitive grants, and special 
research grants to, and enter into cooperative agreements and 
other contracting instruments with, policy research centers 
described in subsection (b) to conduct research and education 
programs that are objective, operationally independent, and 
external to the Federal Government and that concern the effect 
of public policies on--
            ``(1) the farm and agricultural sectors;
            ``(2) the environment;
            ``(3) rural families, households, and economies; 
        and
            ``(4) consumers, food, and nutrition.
    ``(b) Eligible Recipients.--State agricultural experiment 
stations, colleges and universities, other research 
institutions and organizations, private organizations, 
corporations, and individuals shall be eligible to apply for 
funding under subsection (a).
    ``(c) Activities.--Under this section, funding may be 
provided for disciplinary and interdisciplinary research and 
education concerning policy research activities consistent with 
this section, including activities that--
            ``(1) quantify the implications of public policies 
        and regulations;
            ``(2) develop theoretical and research methods;
            ``(3) collect and analyze data for policymakers, 
        analysts, and individuals; and
            ``(4) develop programs to train analysts.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for fiscal years 1996 and 1997.''.

SEC. 808. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
                    PROGRAM.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by striking section 1424 (7 
U.S.C. 3174) and inserting the following:

``SEC. 1424. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
                    PROGRAM.

    ``(a) Authority of Secretary.--The Secretary may establish, 
and award grants for projects for, a multi-year research 
initiative on human nutrition intervention and health 
promotion.
    ``(b) Emphasis of Initiative.--In administering human 
nutrition research projects under this section, the Secretary 
shall give specific emphasis to--
            ``(1) coordinated longitudinal research assessments 
        of nutritional status; and
            ``(2) the implementation of unified, innovative 
        intervention strategies,
to identify and solve problems of nutritional inadequacy and 
contribute to the maintenance of health, well-being, 
performance, and productivity of individuals, thereby reducing 
the need of the individuals to use the health care system and 
social programs of the United States.
    ``(c) Administration of Funds.--The Administrator of the 
Agricultural Research Service shall administer funds made 
available to carry out this section to ensure a coordinated 
approach to health and nutrition research efforts.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for fiscal years 1996 and 1997.

``SEC. 1424A. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND 
                    AGRICULTURAL RESEARCH.

    ``(a) Findings.--Congress finds the following:
            ``(1) Although medical researchers in recent years 
        have demonstrated that there are several naturally 
        occurring compounds in many vegetables and fruits that 
        can aid in the prevention of certain forms of cancer, 
        coronary heart disease, stroke, and atherosclerosis, 
        there has been almost no research conducted to enhance 
        these compounds in food plants by modern breeding and 
        molecular genetic methods.
            ``(2) By linking the appropriate medical and 
        agricultural research scientists in a highly-focused, 
        targeted research program, it should be possible to 
        develop new varieties of vegetables and fruits that 
        would provide greater prevention of diet-related 
        diseases that are a major cause of death in the United 
        States.
    ``(b) Pilot Research Program.--The Secretary shall conduct, 
through the Cooperative State Research, Education, and 
Extension Service, a pilot research program to link major 
cancer and heart and other circulatory disease research efforts 
with agricultural research efforts to identify compounds in 
vegetables and fruits that prevent these diseases. Using 
information derived from such combined research efforts, the 
Secretary shall assist in the development of new varieties of 
vegetables and fruits having enhanced therapeutic properties 
for disease prevention.
    ``(c) Agreements.--The Secretary shall carry out the pilot 
program through agreements entered into with land-grant 
colleges or universities, other universities, State 
agricultural experiment stations, the State cooperative 
extension services, nonprofit organizations with demonstrable 
expertise, or Federal or State governmental entities. The 
Secretary shall enter into the agreements on a competitive 
basis.
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated $10,000,000 for fiscal year 1997 
to carry out the pilot program.''.

SEC. 809. FOOD AND NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3175(c)(3)) is amended by striking ``$63,000,000'' and all that 
follows through ``fiscal year 1995'' and inserting ``, 
$83,000,000 for each of fiscal years 1996 and 1997''.

SEC. 810. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND DISEASE 
                    RESEARCH.

    Section 1429 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3191) is 
amended to read as follows:

``SEC. 1429. PURPOSES AND FINDINGS RELATING TO ANIMAL HEALTH AND 
                    DISEASE RESEARCH.

    ``(a) Purposes.--The purposes of this subtitle are to--
            ``(1) promote the general welfare through the 
        improved health and productivity of domestic livestock, 
        poultry, aquatic animals, and other income-producing 
        animals that are essential to the food supply of the 
        United States and the welfare of producers and 
        consumers of animal products;
            ``(2) improve the health of horses;
            ``(3) facilitate the effective treatment of, and, 
        to the extent possible, prevent animal and poultry 
        diseases in both domesticated and wild animals that, if 
        not controlled, would be disastrous to the United 
        States livestock and poultry industries and endanger 
        the food supply of the United States;
            ``(4) improve methods for the control of organisms 
        and residues in food products of animal origin that 
        could endanger the human food supply;
            ``(5) improve the housing and management of animals 
        to improve the well-being of livestock production 
        species;
            ``(6) minimize livestock and poultry losses due to 
        transportation and handling;
            ``(7) protect human health through control of 
        animal diseases transmissible to humans;
            ``(8) improve methods of controlling the births of 
        predators and other animals; and
            ``(9) otherwise promote the general welfare through 
        expanded programs of research and extension to improve 
        animal health.
    ``(b) Findings.--Congress finds that--
            ``(1) the total animal health and disease research 
        and extension efforts of State colleges and 
        universities and of the Federal Government would be 
        more effective if there were close coordination between 
        the efforts; and
            ``(2) colleges and universities having accredited 
        schools or colleges of veterinary medicine and State 
        agricultural experiment stations that conduct animal 
        health and disease research are especially vital in 
        training research workers in animal health and related 
        disciplines.''.

SEC. 811. ANIMAL HEALTH AND DISEASE CONTINUING RESEARCH.

    Section 1433 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195) is 
amended--
            (1) in the first sentence of subsection (a), by 
        striking ``1995'' and inserting ``1997'';
            (2) in subsection (b)(2)--
                    (A) by striking ``domestic livestock and 
                poultry'' each place it appears and inserting 
                ``domestic livestock, poultry, and commercial 
                aquaculture species''; and
                    (B) in the second sentence, by striking 
                ``horses, and poultry'' and inserting ``horses, 
                poultry, and commercial aquaculture species'';
            (3) in subsection (d), by striking ``domestic 
        livestock and poultry'' and inserting ``domestic 
        livestock, poultry, and commercial aquaculture 
        species''; and
            (4) in subsection (f), by striking ``domestic 
        livestock and poultry'' and inserting ``domestic 
        livestock, poultry, and commercial aquaculture 
        species''.

SEC. 812. ANIMAL HEALTH AND DISEASE NATIONAL OR REGIONAL RESEARCH.

    Section 1434 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196) is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``or national or regional 
                problems relating to pre-harvest, on-farm food 
                safety, or animal well-being,'' after 
                ``problems,''; and
                    (B) by striking ``1995'' and inserting 
                ``1997'';
            (2) in subsection (b), by striking ``eligible 
        institutions'' and inserting ``State agricultural 
        experiment stations, colleges and universities, other 
        research institutions and organizations, Federal 
        agencies, private organizations or corporations, and 
        individuals'';
            (3) in subsection (c)--
                    (A) in the first sentence, by inserting ``, 
                food safety, and animal well-being'' after 
                ``animal health and disease''; and
                    (B) in the fourth sentence--
                            (i) by redesignating paragraphs (2) 
                        and (3) as paragraphs (4) and (5), 
                        respectively; and
                            (ii) by inserting after paragraph 
                        (1) the following:
            ``(2) any food safety problem that has a 
        significant pre-harvest (on-farm) component and is 
        recognized as posing a significant health hazard to the 
        consuming public;
            ``(3) issues of animal well-being related to 
        production methods that will improve the housing and 
        management of animals to improve the well-being of 
        livestock production species;'';
            (4) in the first sentence of subsection (d), by 
        striking ``to eligible institutions''; and
            (5) by adding at the end the following:
    ``(f) Applicability of Federal Advisory Committee Act.--The 
Federal Advisory Committee Act (5 U.S.C. App.) and title XVIII 
of this Act shall not apply to a panel or board created solely 
for the purpose of reviewing applications or proposals 
submitted under this subtitle.''.

SEC. 813. GRANT PROGRAM TO UPGRADE AGRICULTURAL AND FOOD SCIENCES 
                    FACILITIES AT 1890 LAND-GRANT COLLEGES.

    Section 1447(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) 
is amended by striking ``$8,000,000 for each of the fiscal 
years 1991 through 1995'' and inserting ``, $15,000,000 for 
each of fiscal years 1996 and 1997''.

SEC. 814. NATIONAL RESEARCH AND TRAINING CENTENNIAL CENTERS.

    Section 1448 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222c) is 
amended--
            (1) in subsection (a)(1), by inserting ``, or 
        fiscal years 1996 and 1997,'' after ``1995''; and
            (2) in subsection (f), by striking ``1995'' and 
        inserting ``1997''.

SEC. 815. PROGRAMS FOR HISPANIC-SERVING INSTITUTIONS.

    (a) In General.--The National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 is amended by 
inserting after section 1448 (7 U.S.C. 3222c) the following:

        ``Subtitle H--Programs for Hispanic-Serving Institutions

``SEC. 1455. EDUCATION GRANTS PROGRAMS FOR HISPANIC-SERVING 
                    INSTITUTIONS.

    ``(a) Grant Authority.--The Secretary may make competitive 
grants (or grants without regard to any requirement for 
competition) to Hispanic-serving institutions for the purpose 
of promoting and strengthening the ability of Hispanic-serving 
institutions to carry out education, applied research, and 
related community development programs.
    ``(b) Use of Grant Funds.--Grants made under this section 
shall be used--
            ``(1) to support the activities of consortia of 
        Hispanic-serving institutions to enhance educational 
        equity for underrepresented students;
            ``(2) to strengthen institutional educational 
        capacities, including libraries, curriculum, faculty, 
        scientific instrumentation, instruction delivery 
        systems, and student recruitment and retention, in 
        order to respond to identified State, regional, 
        national, or international educational needs in the 
        food and agricultural sciences;
            ``(3) to attract and support undergraduate and 
        graduate students from underrepresented groups in order 
        to prepare them for careers related to the food, 
        agricultural, and natural resource systems of the 
        United States, beginning with the mentoring of students 
        at the high school level and continuing with the 
        provision of financial support for students through 
        their attainment of a doctoral degree; and
            ``(4) to facilitate cooperative initiatives between 
        2 or more Hispanic-serving institutions, or between 
        Hispanic-serving institutions and units of State 
        government or the private sector, to maximize the 
        development and use of resources, such as faculty, 
        facilities, and equipment, to improve food and 
        agricultural sciences teaching programs.
    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated to make grants under this section 
$20,000,000 for fiscal year 1997.''.
    (b) Hispanic-Serving Institution Defined.--Paragraph (9) of 
section 1404 of the National Agricultural Research, Extension, 
and Teaching Policy Act of 1977 (7 U.S.C. 3103) is amended to 
read as follows:
            ``(9) the term `Hispanic-serving institution' has 
        the meaning given the term by section 316(b)(1) of the 
        Higher Education Act of 1965 (20 U.S.C. 
        1059c(b)(1));''.

SEC. 816. INTERNATIONAL AGRICULTURAL RESEARCH AND EXTENSION.

    Section 1458(a)(8) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3291(a)(8)) is amended--
            (1) by striking ``establish'' and inserting 
        ``continue''; and
            (2) by striking ``to be''.

SEC. 817. AUTHORIZATION OF APPROPRIATIONS FOR AGRICULTURAL RESEARCH 
                    PROGRAMS.

    Section 1463 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
amended by striking ``1995'' both places it appears and 
inserting ``1997''.

SEC. 818. AUTHORIZATION OF APPROPRIATIONS FOR EXTENSION EDUCATION.

    Section 1464 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
amended by striking ``fiscal year 1995'' and inserting ``each 
of fiscal years 1995 through 1997''.

SEC. 819. SUPPLEMENTAL AND ALTERNATIVE CROPS RESEARCH.

    (a) Extension of Program.--Section 1473D(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3319d(a)) is amended by striking ``1995'' and 
inserting ``1997''.
    (b) Elimination of Pilot Nature of Program.--Section 1473D 
of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3319d) is amended--
            (1) in subsection (a), by striking ``and pilot'';
            (2) in subsection (c)(2)(B), by striking ``at pilot 
        sites'' and all that follows through ``the area'';
            (3) in subsection (c)(2)(C), by striking ``from 
        pilot sites'';
            (4) in subsection (c)(2)(D)--
                    (A) by striking ``near such pilot sites''; 
                and
                    (B) by striking ``successful pilot 
                program'' and inserting ``successful program''; 
                and
            (5) in paragraph (3), by striking ``pilot''.
    (c) Additional Authority.--Section 1473D(c)(3) of the 
National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3319d(c)(3)) is amended--
            (1) in subparagraph (C), by striking ``and'' at the 
        end;
            (2) in subparagraph (D), by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(E) to conduct fundamental and applied research 
        related to the development of new commercial products 
        derived from natural plant material for industrial, 
        medical, and agricultural applications; and
            ``(F) to participate with colleges and 
        universities, other Federal agencies, and private 
        sector entities in conducting research described in 
        subparagraph (E).''

SEC. 820. AQUACULTURE ASSISTANCE PROGRAMS.

    (a) Definition.--Section 1404(3) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3103(3)) is amended by inserting ``ornamental 
fish,'' after ``reptile,''.
    (b) Reports.--Section 1475 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3322) is amended--
            (1) by striking subsection (e); and
            (2) by redesignating subsections (f) and (g) as 
        subsections (e) and (f), respectively.
    (c) Authorization of Appropriations for Aquaculture 
Research Facilities.--Section 1476(b) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3323(b)) is amended by striking ``1995'' and 
inserting ``1997''.
    (d) Authorization of Appropriations for Research and 
Extension.--Section 1477 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3324) is 
amended by striking ``1995'' and inserting ``1997''.

SEC. 821. AUTHORIZATION OF APPROPRIATIONS FOR RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
is amended by striking ``1995'' and inserting ``1997''.

  Subtitle B--Modification and Extension of Activities Under 1990 Act

SEC. 831. WATER QUALITY RESEARCH, EDUCATION, AND COORDINATION.

    Section 1481(d) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5501(d)) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 832. NATIONAL GENETICS RESOURCES PROGRAM.

    (a) Functions.--Section 1632(d) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5841(d)) is 
amended by striking paragraph (4) and inserting the following:
            ``(4) unless otherwise prohibited by law, have the 
        right to make available on request, without charge and 
        without regard to the country from which the request 
        originates, the genetic material that the program 
        assembles;''.
    (b) Authorization of Appropriations.--Section 1635(b) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5844(b)) is amended by striking ``1995'' and inserting 
``1997''.

SEC. 833. NATIONAL AGRICULTURAL WEATHER INFORMATION SYSTEM.

    Section 1641(c) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5855(c)) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 834. LIVESTOCK PRODUCT SAFETY AND INSPECTION PROGRAM.

    Section 1670(e) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5923(e)) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 835. PLANT GENOME MAPPING PROGRAM.

    Section 1671(g) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5924(g)) is amended by inserting 
``for fiscal years 1996 and 1997'' after ``appropriated''.

SEC. 836. CERTAIN SPECIALIZED RESEARCH PROGRAMS.

    Subsections (d)(4), (e)(4), and (i) of section 1672 of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5925) are each amended by striking ``1995'' and 
inserting ``1997''.

SEC. 837. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 838. NATIONAL CENTERS FOR AGRICULTURAL PRODUCT QUALITY RESEARCH.

    (a) Purposes of National Centers.--Section 1675(a) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5928(a)) is amended--
            (1) by redesignating paragraphs (5) and (6) as 
        paragraphs (6) and (7), respectively; and
            (2) by inserting after paragraph (4) the following:
            ``(5) enhance agricultural competitiveness through 
        product quality research and technology 
        implementation;''.
    (b) Regional Basis of Centers.--Section 1675(b) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5928(b)) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) Regional basis.--The centers shall be 
        regionally based units that conduct a broad spectrum of 
        research, development, and education programs to 
        enhance the competitiveness, quality, safety and 
        wholesomeness of agricultural products.''.
    (c) Program Plan and Review.--Section 1675(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5928(b)) is amended--
            (1) in paragraph (1), by striking the second 
        sentence; and
            (2) in paragraph (2), by striking ``, but not 
        less'' and all that follows through ``the Secretary''.
    (d) Authorization of Appropriations.--Section 1675(g)(1) of 
the Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5928(g)(1)) is amended by striking ``1995'' and 
inserting ``1997''.

SEC. 839. RED MEAT SAFETY RESEARCH CENTER.

    Section 1676 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5929) is amended to read as 
follows:

``SEC. 1676. RED MEAT SAFETY RESEARCH CENTER.

    ``(a) Establishment of Center.--The Secretary of 
Agriculture shall award a grant, on a competitive basis, to a 
research facility described in subsection (b) to establish a 
red meat safety research center.
    ``(b) Eligible Research Facility Described.--A research 
facility eligible for a grant under subsection (a) is a 
research facility that--
            ``(1) is part of a land-grant college or 
        university, or other federally supported agricultural 
        research facility, located in close proximity to a 
        livestock slaughter and processing facility; and
            ``(2) is staffed by professionals with a wide 
        diversity of scientific expertise covering all aspects 
        of meat science.
    ``(c) Research Conducted.--The red meat safety research 
center established under subsection (a) shall carry out 
research related to general food safety, including--
            ``(1) the development of intervention strategies 
        that reduce microbiological contamination of carcass 
        surfaces;
            ``(2) research regarding microbiological mapping of 
        carcass surfaces; and
            ``(3) the development of model hazard analysis and 
        critical control point plans.
    ``(d) Administration of Funds.--The Secretary of 
Agriculture shall administer funds appropriated to carry out 
this section.
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary for 
fiscal year 1997 to carry out this section.''.

SEC. 840. INDIAN RESERVATION EXTENSION AGENT PROGRAM.

    Section 1677 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5930) is amended--
            (1) by redesignating subsection (f) as subsection 
        (g); and
            (2) by inserting after subsection (e) the 
        following:
    ``(f) Reduced Regulatory Burden.--On a determination by the 
Secretary of Agriculture that a program carried out under this 
section has been satisfactorily administered for not less than 
2 years, the Secretary shall implement a reduced reapplication 
process for the continued operation of the program in order to 
reduce regulatory burdens on participating university and 
tribal entities.''.

SEC. 841. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5933) is amended--
            (1) in subsection (a)(6)(B), by striking ``1996'' 
        and inserting ``1997''; and
            (2) in subsection (b)(2), by striking ``1996'' and 
        inserting ``1997''.

SEC. 842. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
``1995'' and inserting ``1997''.

SEC. 843. GLOBAL CLIMATE CHANGE.

    Section 2412 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 6710) is amended by striking 
``1996'' and inserting ``1997''.

        Subtitle C--Repeal of Certain Activities and Authorities

SEC. 851. SUBCOMMITTEE ON FOOD, AGRICULTURAL, AND FORESTRY RESEARCH.

    Section 401(h) of the National Science and Technology 
Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
6651(h)) is amended by striking the second through fifth 
sentences.

SEC. 852. JOINT COUNCIL ON FOOD AND AGRICULTURAL SCIENCES.

    (a) Repeal.--Section 1407 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3122) is repealed.
    (b) Conforming Amendments.--
            (1) Section 1405 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3121) is amended--
                    (A) in paragraph (5), by striking ``Joint 
                Council, Advisory Board,'' and inserting 
                ``Advisory Board''; and
                    (B) in paragraph (11), by striking ``the 
                Joint Council,''.
            (2) Section 1410(2) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3125(2)) is amended by striking ``the 
        recommendations of the Joint Council developed under 
        section 1407(f),''.
            (3) Section 1412 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3127) is amended--
                    (A) in the section heading, by striking 
                ``THE JOINT COUNCIL, ADVISORY BOARD,'' and 
                inserting ``ADVISORY BOARD'';
                    (B) in subsection (a)--
                            (i) by striking ``Joint Council, 
                        the Advisory Board,'' and inserting 
                        ``Advisory Board'';
                            (ii) by striking ``the 
                        cochairpersons of the Joint Council 
                        and'' each place it appears; and
                            (iii) in paragraph (2), by striking 
                        ``one shall serve as the executive 
                        secretary to the Joint Council, one 
                        shall serve as the executive secretary 
                        to the Advisory Board,'' and inserting 
                        ``one shall serve as the executive 
                        secretary to the Advisory Board''; and
                    (C) in subsections (b) and (c), by striking 
                ``Joint Council, Advisory Board,'' each place 
                it appears and inserting ``Advisory Board''.
            (4) Section 1413 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3128) is amended--
                    (A) in subsection (a), by striking ``Joint 
                Council, the Advisory Board,'' and inserting 
                ``Advisory Board''; and
                    (B) in subsection (b), by striking ``Joint 
                Council, Advisory Board,'' and inserting 
                ``Advisory Board''.
            (5) Section 1434(c) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3196(c)) is amended--
                    (A) in the second sentence, by striking 
                ``Joint Council, the Advisory Board,'' and 
                inserting ``Advisory Board''; and
                    (B) in the fourth sentence, by striking 
                ``the Joint Council,''.

SEC. 853. AGRICULTURAL SCIENCE AND TECHNOLOGY REVIEW BOARD.

    (a) Repeal.--Section 1408A of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3123a) is repealed.
    (b) Conforming Amendments.--
            (1) Section 1404 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3103) is amended--
                    (A) in paragraph (16)(F), by adding ``and'' 
                at the end;
                    (B) in paragraph (17), by striking ``; 
                and'' at the end and inserting a period; and
                    (C) by striking paragraph (18).
            (2) Section 1405(12) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3121(12)) is amended by striking ``, after 
        coordination with the Technology Board,''.
            (3) Section 1410(2) of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3125(2)) (as amended by section 802(b)(2)) is 
        amended by striking ``and the recommendations of the 
        Technology Board developed under section 1408A(d)''.
            (4) Section 1412 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3127) (as amended by section 852(b)(3)) is 
        amended--
                    (A) in the section heading, by striking 
                ``AND TECHNOLOGY BOARD'';
                    (B) in subsection (a)--
                            (i) by striking ``and the 
                        Technology Board'' each place it 
                        appears; and
                            (ii) in paragraph (2), by striking 
                        ``and one shall serve as the executive 
                        secretary to the Technology Board''; 
                        and
                    (C) in subsections (b) and (c), by striking 
                ``and Technology Board'' each place it appears.
            (5) Section 1413 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3128) (as amended by section 852(b)(4)) is 
        amended--
                    (A) in subsection (a), by striking ``or the 
                Technology Board''; and
                    (B) in subsection (b), by striking ``and 
                the Technology Board''.

SEC. 854. ANIMAL HEALTH SCIENCE RESEARCH ADVISORY BOARD.

    Section 1432 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3194) is 
repealed.

SEC. 855. RESIDENT INSTRUCTION PROGRAM AT 1890 LAND-GRANT COLLEGES.

    Section 1446 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222a) is 
repealed.

SEC. 856. GRANTS TO STATES FOR INTERNATIONAL TRADE DEVELOPMENT CENTERS.

    Section 1458A of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292) is 
repealed.

SEC. 857. RANGELAND RESEARCH.

    (a) Reports.--Section 1481 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3334) is repealed.
    (b) Advisory Board.--Section 1482 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3335) is repealed.

SEC. 858. COMPOSTING RESEARCH AND EXTENSION PROGRAM.

    Section 1456 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 3130) is repealed.

SEC. 859. EDUCATION PROGRAM REGARDING HANDLING OF AGRICULTURAL 
                    CHEMICALS AND AGRICULTURAL CHEMICAL CONTAINERS.

    (a) Repeal.--Section 1499A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 3125c) is 
repealed.
    (b) Conforming Amendment.--Section 1499(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5506(b)) is amended by striking ``and section 1499A''.

SEC. 860. PROGRAM ADMINISTRATION REGARDING SUSTAINABLE AGRICULTURE 
                    RESEARCH AND EDUCATION.

    (a) Reporting Requirement.--Section 1622 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5812) is amended by striking subsection (b).
    (b) Advisory Council.--Section 1622 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5812) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (2);
                    (B) in paragraph (3), by striking 
                ``subsection (e)'' and inserting ``subsection 
                (b)''; and
                    (C) by redesignating paragraphs (3) and (4) 
                as paragraphs (2) and (3), respectively;
            (2) by striking subsections (c) and (d);
            (3) by redesignating subsection (e) as subsection 
        (b); and
            (4) in subsection (b)(2) (as so redesignated)--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) 
                through (F) as subparagraphs (A) through (E), 
                respectively.
    (c) Conforming Amendments.--
            (1) Section 1619(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5801(b)) 
        is amended--
                    (A) by striking paragraph (7); and
                    (B) by redesignating paragraphs (8), (9), 
                and (10) as paragraphs (7), (8), and (9), 
                respectively.
            (2) Section 1621(c) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5811(c)) 
        is amended--
                    (A) in paragraph (1)--
                            (i) by striking subparagraph (A); 
                        and
                            (ii) by redesignating subparagraphs 
                        (B) through (E) as subparagraphs (A) 
                        through (D), respectively; and
                    (B) in paragraph (2)--
                            (i) by striking subparagraph (A); 
                        and
                            (ii) by redesignating subparagraphs 
                        (B) through (F) as subparagraphs (A) 
                        through (E), respectively.
            (3) Section 1628(b) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5831(b)) 
        is amended by striking ``Advisory Council, the Soil 
        Conservation Service,'' and inserting ``Natural 
        Resources Conservation Service''.

SEC. 861. RESEARCH REGARDING PRODUCTION, PREPARATION, PROCESSING, 
                    HANDLING, AND STORAGE OF AGRICULTURAL PRODUCTS.

    Subtitle E of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5871 et seq.) is 
repealed.

SEC. 862. PLANT AND ANIMAL PEST AND DISEASE CONTROL PROGRAM.

    (a) Repeal.--Subtitle F of title XVI of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5881 
et seq.) is repealed.
    (b) Conforming Amendments.--
            (1) Section 28(b)(2)(A) of the Federal Insecticide, 
        Fungicide, and Rodenticide Act (7 U.S.C. 136w-
        3(b)(2)(A)) is amended by striking ``and the 
        information required by section 1651 of the Food, 
        Agriculture, Conservation, and Trade Act of 1990''.
            (2) Section 1627(a)(3) of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 
        5821(a)(3)) is amended by striking ``and section 
        1650''.
            (3) Section 1628 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5831) is 
        amended by striking ``section 1650,'' each place it 
        appears in subsections (a) and (d).
            (4) Section 1629 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (7 U.S.C. 5832) is 
        amended by striking ``section 1650,'' each place it 
        appears in subsections (f) and (g)(11).

SEC. 863. CERTAIN SPECIALIZED RESEARCH PROGRAMS.

    Section 1672 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925) is amended--
            (1) by striking subsections (a), (f), (g), (h), and 
        (j); and
            (2) by redesignating subsections (i) and (k) as 
        subsections (f) and (g), respectively.

SEC. 864. COMMISSION ON AGRICULTURAL RESEARCH FACILITIES.

    Section 1674 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5927) is repealed.

SEC. 865. SPECIAL GRANT TO STUDY CONSTRAINTS ON AGRICULTURAL TRADE.

    Section 1678 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5931) is repealed.

SEC. 866. PILOT PROJECT TO COORDINATE FOOD AND NUTRITION EDUCATION 
                    PROGRAMS.

    Section 1679 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5932) is repealed.

SEC. 867. DEMONSTRATION AREAS FOR RURAL ECONOMIC DEVELOPMENT.

    Section 2348 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 2662a) is repealed.

SEC. 868. TECHNICAL ADVISORY COMMITTEE REGARDING GLOBAL CLIMATE CHANGE.

    Section 2404 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 6703) is repealed.

SEC. 869. COMMITTEE OF NINE UNDER HATCH ACT OF 1887.

    Section 3(c)3 of the Act of March 2, 1887 (commonly known 
as the ``Hatch Act of 1887''; 7 U.S.C. 361c(c)3) is amended by 
striking ``, and shall be used'' and all that follows through 
``by this paragraph''.

SEC. 870. COTTON CROP REPORTS.

    The Act of May 3, 1924 (43 Stat. 115, chapter 149; 7 U.S.C. 
475), is repealed.

SEC. 871. RURAL ECONOMIC AND BUSINESS DEVELOPMENT AND ADDITIONAL 
                    RESEARCH GRANTS UNDER TITLE V OF RURAL DEVELOPMENT 
                    ACT OF 1972.

    Section 502 of the Rural Development Act of 1972 (7 U.S.C. 
2662) is amended by striking subsections (g) and (j).

SEC. 872. HUMAN NUTRITION RESEARCH.

    Section 1452 of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1985 (Public 
Law 99-198; 7 U.S.C. 3173 note) is repealed.

SEC. 873. GRANTS TO UPGRADE 1890 LAND-GRANT COLLEGE EXTENSION 
                    FACILITIES.

    Section 1416 of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1981 (7 U.S.C. 
3224) is repealed.

SEC. 874. INDIAN SUBSISTENCE FARMING DEMONSTRATION GRANT PROGRAM.

    Subtitle C of title IX of the Food, Agriculture, 
Conservation, and Trade Act Amendments of 1991 (Public Law 102-
237; 7 U.S.C. 5930 note) is repealed.

             Subtitle D--Miscellaneous Research Provisions

SEC. 881. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    (a) Reports.--Section 4 of the Critical Agricultural 
Materials Act (7 U.S.C. 178b) is amended--
            (1) by striking subsection (g); and
            (2) by redesignating subsection (h) as subsection 
        (g).
    (b) Authorization of Appropriations.--Section 16(a) of the 
Critical Agricultural Materials Act (7 U.S.C. 178n(a)) is 
amended by striking ``1995'' and inserting ``1997''.

SEC. 882. MEMORANDUM OF AGREEMENT REGARDING 1994 INSTITUTIONS.

    Section 533 of the Equity in Educational Land-Grant Status 
Act of 1994 (Public Law 103-382; 7 U.S.C. 301 note) is amended 
by adding at the end the following:
    ``(d) Memorandum of Agreement.--Not later than January 6, 
1997, the Secretary shall develop and implement a formal 
memorandum of agreement with the 1994 Institutions to establish 
programs to ensure that tribally controlled colleges and Native 
American communities equitably participate in Department of 
Agriculture employment, programs, services, and resources.''.

SEC. 883. SMITH-LEVER ACT FUNDING FOR 1890 LAND-GRANT COLLEGES, 
                    INCLUDING TUSKEGEE UNIVERSITY.

    (a) Eligibility for Funds.--Section 3(d) of the Act of May 
8, 1914 (commonly known as the ``Smith-Lever Act''; 7 U.S.C. 
343(d)), is amended by adding at the end the following: ``A 
college or university eligible to receive funds under the Act 
of August 30, 1890 (7 U.S.C. 321 et seq.), including Tuskegee 
University, may apply for and receive directly from the 
Secretary of Agriculture--
            ``(1) amounts made available under this subsection 
        after September 30, 1995, to carry out programs or 
        initiatives for which no funds were made available 
        under this subsection for fiscal year 1995, or any 
        previous fiscal year, as determined by the Secretary; 
        and
            ``(2) amounts made available after September 30, 
        1995, to carry out programs or initiatives funded under 
        this subsection prior to that date that are in excess 
        of the highest amount made available for the programs 
        or initiatives under this subsection for fiscal year 
        1995, or any previous fiscal year, as determined by the 
        Secretary.''.
    (b) Conforming Amendment.--The third sentence of section 
1444(a) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3221(a)) is amended by 
inserting before the period at the end the following: ``, 
except that for the purpose of this calculation, the total 
appropriations shall not include amounts made available after 
September 30, 1995, under section 3(d) of that Act (7 U.S.C. 
343(d)), to carry out programs or initiatives for which no 
funds were made available under section 3(d) of that Act for 
fiscal year 1995, or any previous fiscal year, as determined by 
the Secretary, and shall not include amounts made available 
after September 30, 1995, to carry out programs or initiatives 
funded under section 3(d) of that Act prior to that date that 
are in excess of the highest amount made available for the 
programs or initiatives for fiscal year 1995, or any previous 
fiscal year, as determined by the Secretary''.

SEC. 884. AGRICULTURAL RESEARCH FACILITIES.

    (a) Research Facilities.--The Research Facilities Act (7 
U.S.C. 390 et seq.) is amended to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Research Facilities Act'.

``SEC. 2. DEFINITIONS.

    ``In this Act:
            ``(1) Agricultural research facility.--The term 
        `agricultural research facility' means a proposed 
        facility for research in food and agricultural sciences 
        for which Federal funds are requested by a college, 
        university, or nonprofit institution to assist in the 
        construction, alteration, acquisition, modernization, 
        renovation, or remodeling of the facility.
            ``(2) Congressional agriculture committees.--The 
        term `congressional agriculture committees' means the 
        Committee on Appropriations and the Committee on 
        Agriculture of the House of Representatives and the 
        Committee on Appropriations and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate.
            ``(3) Food and agricultural sciences.--The term 
        `food and agricultural sciences' means--
                    ``(A) agriculture, including soil and water 
                conservation and use, the use of organic 
                materials to improve soil tilth and fertility, 
                plant and animal production and protection, and 
                plant and animal health;
                    ``(B) the processing, distribution, 
                marketing, and utilization of food and 
                agricultural products;
                    ``(C) forestry, including range management, 
                production of forest and range products, 
                multiple use of forests and rangelands, and 
                urban forestry;
                    ``(D) aquaculture (as defined in section 
                1404(3) of the National Agricultural Research, 
                Extension, and Teaching Policy Act of 1977 (7 
                U.S.C. 3103(3));
                    ``(E) human nutrition;
                    ``(F) production inputs, such as energy, to 
                improve productivity; and
                    ``(G) germ plasm collection and 
                preservation.
            ``(4) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
            ``(5) Task force.--The term `task force' means the 
        Strategic Planning Task Force established under section 
        4.

``SEC. 3. REVIEW PROCESS.

    ``(a) Submission to Secretary.--Each proposal for an 
agricultural research facility shall be submitted to the 
Secretary for review. The Secretary shall review the proposals 
in the order in which the proposals are received.
    ``(b) Application Process.--In consultation with the 
congressional agriculture committees, the Secretary shall 
establish an application process for the submission of 
proposals for agricultural research facilities.
    ``(c) Criteria for Approval.--
            ``(1) Determination by secretary.--With respect to 
        each proposal for an agricultural research facility 
        submitted under subsection (a), the Secretary shall 
        determine whether the proposal meets the criteria set 
        forth in paragraph (2).
            ``(2) Criteria.--A proposal for an agricultural 
        research facility shall meet the following criteria:
                    ``(A) Non-federal share.--The proposal 
                shall certify the availability of at least a 50 
                percent non-Federal share of the cost of the 
                facility. The non-Federal share shall be paid 
                in cash and may include funding from private 
                sources or from units of State or local 
                government.
                    ``(B) Nonduplication of facilities.--The 
                proposal shall demonstrate how the agricultural 
                research facility would be complementary to, 
                and not duplicative of, facilities of colleges, 
                universities, and nonprofit institutions, and 
                facilities of the Agricultural Research 
                Service, within the State and region.
                    ``(C) National research priorities.--The 
                proposal shall demonstrate how the agricultural 
                research facility would serve--
                            ``(i) 1 or more of the national 
                        research policies and priorities set 
                        forth in section 1402 of the National 
                        Agricultural Research, Extension, and 
                        Teaching Policy Act of 1977 (7 U.S.C. 
                        3101); and
                            ``(ii) regional needs.
                    ``(D) Long-term support.--The proposal 
                shall demonstrate that the recipient college, 
                university, or nonprofit institution has the 
                ability and commitment to support the long-
                term, ongoing operating costs of--
                            ``(i) the agricultural research 
                        facility after the facility is 
                        completed; and
                            ``(ii) each program to be based at 
                        the facility.
    ``(d) Evaluation of Proposals.--Not later than 90 days 
after receiving a proposal under subsection (a), the Secretary 
shall--
            ``(1) evaluate and assess the merits of the 
        proposal, including the extent to which the proposal 
        meets the criteria set forth in subsection (c); and
            ``(2) report to the congressional agriculture 
        committees on the results of the evaluation and 
        assessment.

``SEC. 4. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL 
                    RESEARCH FACILITIES.

    ``(a) Establishment.--Not later than 6 months after the 
date of enactment of the Federal Agriculture Improvement and 
Reform Act of 1996, the Secretary shall establish a task force, 
to be known as the `Strategic Planning Task Force'. The task 
force shall be comprised of 15 members.
    ``(b) Composition.--The Secretary shall select the members 
of the task force from a list of individuals recommended by the 
Advisory Board established under section 1408 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3123). In submitting the list to the Secretary, 
the board may recommend for selection individuals (including 
members of the Advisory Board) who have expertise in facilities 
development, modernization, construction, consolidation, and 
closure.
    ``(c) Duties.--The task force shall review all currently 
operating agricultural research facilities constructed in whole 
or in part with Federal funds, and all planned agricultural 
research facilities proposed to be constructed with Federal 
funds, pursuant to criteria established by the Secretary, to 
ensure that a comprehensive research capacity is maintained.
    ``(d) 10-Year Strategic Plan.--Not later than 2 years after 
the task force is established, the task force shall prepare and 
submit to the Secretary and the congressional agriculture 
committees a 10-year strategic plan, reflecting both national 
and regional perspectives, for development, modernization, 
construction, consolidation, and closure of Federal 
agricultural research facilities and agricultural research 
facilities proposed to be constructed with Federal funds.
    ``(e) Applicability of Federal Advisory Committee Act.--
            ``(1) Public meetings.--All meetings of the task 
        force shall be publicly announced in advance and shall 
        be open to the public. Detailed minutes of meetings and 
        other appropriate records of the activities of the task 
        force shall be kept and made available to the public on 
        request.
            ``(2) Exemption.--The Federal Advisory Committee 
        Act (5 U.S.C. App.) and title XVIII of the Food and 
        Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall 
        not apply to the task force.
    ``(f) Definition of Agricultural Research Facility.--
Notwithstanding section 2(1), in this section the term 
`agricultural research facility' means a facility for research 
in food and agricultural sciences.

``SEC. 5. APPLICABILITY OF FEDERAL ADVISORY COMMITTEE ACT.

    ``The Federal Advisory Committee Act (5 U.S.C. App.) and 
title XVIII of the Food and Agriculture Act of 1977 (7 U.S.C. 
2281 et seq.) shall not apply to a panel or board created 
solely for the purpose of reviewing applications or proposals 
submitted under this Act.

``SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--Subject to subsection (b), there are 
authorized to be appropriated such sums as are necessary for 
fiscal years 1996 and 1997 for the study, plan, design, 
structure, and related costs of agricultural research 
facilities under this Act.
    ``(b) Allowable Administrative Costs.--Not more than 3 
percent of the funds made available for any project for an 
agricultural research facility shall be available for 
administration of the project.''.
    (b) Application of Amendment.--The amendment made by 
subsection (a), other than section 4 of the Research Facilities 
Act (as amended by subsection (a)), shall not apply to any 
project for an agricultural research facility for which funds 
have been made available for a feasibility study or for any 
phase of the project prior to October 1, 1995.
    (c) Authorization of Appropriations for Federal 
Facilities.--Section 1431 of the National Agricultural 
Research, Extension, and Teaching Policy Act Amendments of 1985 
(Public Law 99-198; 99 Stat. 1556) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(a)''; and
                    (B) by striking ``1995'' and inserting 
                ``1997''; and
            (2) by striking subsection (b).
    (d) Conforming Amendment.--Section 1463(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3311(a)) is amended by striking ``1416,''.

SEC. 885. NATIONAL COMPETITIVE RESEARCH INITIATIVE.

    (a) Authorization of Appropriations for Competitive 
Grants.--Subsection (b)(10) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is 
amended--
            (1) by striking ``fiscal year 1995'' and inserting 
        ``each of fiscal years 1995 through 1997''; and
            (2) in subparagraph (B), by striking ``20 percent'' 
        and inserting ``40 percent''.
    (b) Availability of Funds.--Subsection (b) of the 
Competitive, Special, and Facilities Research Grant Act (7 
U.S.C. 450i(b)) is amended by adding at the end the following:
    ``(11) Availability of Funds.--Funds made available under 
paragraph (10) shall be available for obligation for a 2-year 
period beginning on October 1 of the fiscal year for which the 
funds are made available.''.

SEC. 886. RURAL DEVELOPMENT RESEARCH AND EDUCATION.

    Section 502(a) of the Rural Development Act of 1972 (7 
U.S.C. 2662(a)) is amended by inserting after the first 
sentence the following: ``The rural development extension 
programs shall also promote coordinated and integrated rural 
community initiatives that advance and empower capacity 
building through leadership development, entrepreneurship, 
business development and management training, and strategic 
planning to increase jobs, income, and quality of life in rural 
communities.''.

SEC. 887. DAIRY GOAT RESEARCH PROGRAM.

    Section 1432(b)(5) of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1981 (Public 
Law 97-98; 7 U.S.C. 3222 note) is amended by striking ``1995'' 
and inserting ``1997''.

SEC. 888. COMPETITIVE GRANTS FOR RESEARCH TO ERADICATE AND CONTROL 
                    BROWN CITRUS APHID AND CITRUS TRISTEZA VIRUS.

    Section 1672 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925) (as amended by section 863) 
is amended by inserting before subsection (b) the following:
    ``(a) Brown Citrus Aphid and Citrus Tristeza Virus.--
            ``(1) Research grants authorized.--The Secretary of 
        Agriculture may make competitive grants available to 
        support research for the purpose of--
                    ``(A) developing methods to eradicate the 
                brown citrus aphid and the citrus tristeza 
                virus from citrus crops grown in the United 
                States; or
                    ``(B) adapting citrus crops grown in the 
                United States to the brown citrus aphid and the 
                citrus tristeza virus.
            ``(2) Method of providing grants.--Grants 
        authorized under this subsection shall be made in the 
        same manner, and shall be subject to the same 
        conditions, as provided for competitive grants under 
        the Competitive, Special, and Facilities Research Grant 
        Act (7 U.S.C. 450i).
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection $3,000,000 for fiscal year 1997.''.

SEC. 889. STUTTGART NATIONAL AQUACULTURE RESEARCH CENTER.

    (a) Transfer of Functions to Secretary of Agriculture.--
            (1) Purpose.--The first section of Public Law 85-
        342 (16 U.S.C. 778) is amended--
                    (A) by striking ``Secretary of the 
                Interior'' and all that follows through 
                ``directed to'' and inserting ``Secretary of 
                Agriculture shall'';
                    (B) by striking ``an experiment station or 
                stations'' and inserting ``1 or more centers''; 
                and
                    (C) in paragraph (5), by striking 
                ``Department of Agriculture'' and inserting 
                ``Secretary of the Interior''.
            (2) Authority.--Section 2 of Public Law 85-342 (16 
        U.S.C. 778a) is amended by striking ``, the Secretary'' 
        and all that follows through ``authorized'' and 
        inserting ``, the Secretary of Agriculture is 
        authorized''.
            (3) Assistance.--Section 3 of Public Law 85-342 (16 
        U.S.C. 778b) is amended--
                    (A) by striking ``Secretary of the 
                Interior'' and inserting ``Secretary of 
                Agriculture''; and
                    (B) by striking ``Department of 
                Agriculture'' and inserting ``Secretary of the 
                Interior''.
    (b) Transfer of Fish Farming Experimental Laboratory to 
Department of Agriculture.--
            (1) Designation of stuttgart national aquaculture 
        research center.--
                    (A) In general.--The Fish Farming 
                Experimental Laboratory in Stuttgart, Arkansas 
                (including the facilities in Kelso, Arkansas), 
                shall be known and designated as the 
                ``Stuttgart National Aquaculture Research 
                Center''.
                    (B) References.--Any reference in a law, 
                map, regulation, document, paper, or other 
                record of the United States to the laboratory 
                referred to in subparagraph (A) shall be deemed 
                to be a reference to the ``Stuttgart National 
                Aquaculture Research Center''.
            (2) Transfer of laboratory to department of 
        agriculture.--Subject to section 1531 of title 31, 
        United States Code, not later than 90 days after the 
        date of enactment of this Act, there are transferred to 
        the Department of Agriculture--
                    (A) the personnel employed in connection 
                with the laboratory referred to in paragraph 
                (1)(A);
                    (B) the assets, liabilities, contracts, and 
                real and personal property of the laboratory;
                    (C) the records of the laboratory; and
                    (D) the unexpended balance of 
                appropriations, authorizations, allocations, 
                and other funds employed in connection with, 
                held in connection with, arising from, 
                available to, or to be made available in 
                connection with the laboratory.
            (3) Nonduplication of facilities.--The research 
        center referred to in paragraph (1)(A) shall be 
        complementary to, and not duplicative of, facilities of 
        colleges, universities, and nonprofit institutions, and 
        facilities of the Agricultural Research Service, within 
        the State and region, as determined by the 
        Administrator of the Service.

SEC. 890. EXPANSION OF AUTHORITIES RELATED TO NATIONAL ARBORETUM.

    (a) Solicitation of Gifts, Benefits, and Devises.--The 
first sentence of section 5 of the Act of March 4, 1927 (20 
U.S.C. 195), is amended by inserting ``solicit,'' after 
``authorized to''.
    (b) Concessions, Fees, and Voluntary Services.--The Act of 
March 4, 1927 (20 U.S.C. 191 et seq.), is amended by adding at 
the end the following:

``SEC. 6. CONCESSIONS, FEES, AND VOLUNTARY SERVICES.

    ``(a) In General.--Notwithstanding the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) and 
section 321 of the Act of June 30, 1932 (40 U.S.C. 303b), the 
Secretary of Agriculture, in furtherance of the mission of the 
National Arboretum, may--
            ``(1) negotiate agreements granting concessions at 
        the National Arboretum to nonprofit scientific or 
        educational organizations the interests of which are 
        complementary to the mission of the National Arboretum, 
        except that the net proceeds of the organizations from 
        the concessions shall be used exclusively for research 
        and educational work for the benefit of the National 
        Arboretum;
            ``(2) provide by concession, on such terms as the 
        Secretary of Agriculture considers appropriate and 
        necessary, for commercial services for food, drink, and 
        nursery sales, if an agreement for a permanent 
        concession under this paragraph is negotiated with a 
        qualified person submitting a proposal after due 
        consideration of all proposals received after the 
        Secretary of Agriculture provides reasonable public 
        notice of the intent of the Secretary to enter into 
        such an agreement;
            ``(3) dispose of excess property, including excess 
        plants and fish, in a manner designed to maximize 
        revenue from any sale of the property, including by way 
        of public auction, except that this paragraph shall not 
        apply to the free dissemination of new varieties of 
        seeds and germ plasm in accordance with section 520 of 
        the Revised Statutes (commonly known as the `Department 
        of Agriculture Organic Act of 1862') (7 U.S.C. 2201);
            ``(4) charge such fees as the Secretary of 
        Agriculture considers reasonable for temporary use by 
        individuals or groups of National Arboretum facilities 
        and grounds for any purpose consistent with the mission 
        of the National Arboretum;
            ``(5) charge such fees as the Secretary of 
        Agriculture considers reasonable for the use of the 
        National Arboretum for commercial photography or 
        cinematography;
            ``(6) publish, in print and electronically and 
        without regard to laws relating to printing by the 
        Federal Government, informational brochures, books, and 
        other publications concerning the National Arboretum or 
        the collections of the Arboretum; and
            ``(7) license use of the National Arboretum name 
        and logo for public service or commercial uses.
    ``(b) Use of Funds.--Any funds received or collected by the 
Secretary of Agriculture as a result of activities described in 
subsection (a) shall be retained in a special fund in the 
Treasury for the use and benefit of the National Arboretum as 
the Secretary of Agriculture considers appropriate.
    ``(c) Acceptance of Voluntary Services.--The Secretary of 
Agriculture may accept the voluntary services of organizations 
described in subsection (a)(1), and the voluntary services of 
individuals (including employees of the National Arboretum), 
for the benefit of the National Arboretum.''.

SEC. 891. TRANSFER OF AQUACULTURAL RESEARCH CENTER.

    (a) Transfer of Fish Culture Laboratory to Department of 
Agriculture.--
            (1) Designation of claude harris national 
        aquacultural research center.--
                    (A) In general.--The Southeastern Fish 
                Culture Laboratory in Marion, Alabama, shall be 
                known and designated as the ``Claude Harris 
                National Aquacultural Research Center''.
                    (B) References.--Any reference in a law, 
                map, regulation, document, paper, or other 
                record of the United States to the laboratory 
                referred to in subparagraph (A) shall be deemed 
                to be a reference to the ``Claude Harris 
                National Aquacultural Research Center''.
            (2) Transfer of laboratory to department of 
        agriculture.--Subject to section 1531 of title 31, 
        United States Code, not later than 90 days after the 
        date of enactment of this Act, the Secretary of the 
        Interior may transfer, in whole or in part, to the 
        Department of Agriculture, with the consent of the 
        Secretary of Agriculture--
                    (A) the personnel employed in connection 
                with the laboratory referred to in paragraph 
                (1);
                    (B) the assets, liabilities, contracts, and 
                real and personal property of the laboratory;
                    (C) the records of the laboratory; and
                    (D) the unexpended balance of 
                appropriations, authorizations, allocations, 
                and other funds employed in connection with, 
                held in connection with, arising from, 
                available to, or to be made available in 
                connection with the laboratory.
    (b) Nonduplication of Facilities.--The research center 
designated by subsection (a) shall be complementary to, and not 
duplicative of, facilities of colleges, universities, and 
nonprofit institutions, and facilities of the Agricultural 
Research Service, within the State and region, as determined by 
the Secretary of Agriculture.

SEC. 892. USE OF REMOTE SENSING DATA AND OTHER DATA TO ANTICIPATE 
                    POTENTIAL FOOD, FEED, AND FIBER SHORTAGES OR 
                    EXCESSES AND TO PROVIDE TIMELY INFORMATION TO 
                    ASSIST FARMERS WITH PLANTING DECISIONS.

    (a) Findings.--Congress finds that--
            (1) remote sensing data can be useful to predict 
        impending famine problems and forest infestations in 
        time to allow remedial action;
            (2) remote sensing data can inform the agricultural 
        community as to the condition of crops and the land 
        that sustains those crops; and
            (3) remote sensing data and other data can be 
        valuable, when received on a timely basis, in 
        determining the need for additional plantings of a 
        particular crop or a substitute crop.
    (b) Information Development.--The Secretary of Agriculture 
and the Administrator of the National Aeronautics and Space 
Administration, maximizing private funding and involvement, 
shall provide farmers and other interested persons with timely 
information, through remote sensing, on crop conditions, 
fertilization and irrigation needs, pest infiltration, soil 
conditions, projected food, feed, and fiber production, and any 
other information available through remote sensing.
    (c) Coordination.--The Secretary of Agriculture and the 
Administrator of the National Aeronautics and Space 
Administration shall jointly develop a proposal to provide 
farmers and other prospective users with supply and demand 
information for food and fibers.
    (d) Sunset.--The authorities provided by this section shall 
expire 5 years after the date of enactment of this Act.

SEC. 893. SENSE OF SENATE REGARDING METHYL BROMIDE ALTERNATIVE RESEARCH 
                    AND EXTENSION ACTIVITIES.

    It is the sense of the Senate that--
            (1) the Department of Agriculture should continue 
        to make methyl bromide alternative research and 
        extension activities a high priority of the Department; 
        and
            (2) the Department of Agriculture, the 
        Environmental Protection Agency, producer and processor 
        organizations, environmental organizations, and State 
        agencies should continue their dialogue on the risks 
        and benefits of extending the 2001 phaseout deadline.

         Subtitle E--Research Authority After Fiscal Year 1997

SEC. 897. AUTHORIZATION OF APPROPRIATIONS.

    Subject to section 898, there are authorized to be 
appropriated for fiscal years 1998 through 2002 such sums as 
are necessary to carry out the agricultural research, 
extension, and education activities and initiatives of the 
Department of Agriculture.

SEC. 898. ACTIVITIES SUBJECT TO AVAILABILITY OF APPROPRIATIONS.

    During each of fiscal years 1998 through 2002, the 
Secretary of Agriculture shall conduct only those agricultural 
research, extension, and education activities and initiatives 
of the Department of Agriculture for which funds are 
specifically provided for the fiscal year in an appropriation 
Act.

                        TITLE IX--MISCELLANEOUS

     Subtitle A--Commercial Transportation of Equine for Slaughter

SEC. 901. FINDINGS.

    Because of the unique and special needs of equine being 
transported to slaughter, Congress finds that it is appropriate 
for the Secretary of Agriculture to issue guidelines for the 
regulation of the commercial transportation of equine for 
slaughter by persons regularly engaged in that activity within 
the United States.

SEC. 902. DEFINITIONS.

    In this subtitle:
            (1) Commercial transportation.--The term 
        ``commercial transportation'' means the regular 
        operation for profit of a transport business that uses 
        trucks, tractors, trailers, or semitrailers, or any 
        combination thereof, propelled or drawn by mechanical 
        power on any highway or public road.
            (2) Equine for slaughter.--The term ``equine for 
        slaughter'' means any member of the Equidae family 
        being transferred to a slaughter facility, including an 
        assembly point, feedlot, or stockyard.
            (3) Person.--The term ``person''--
                    (A) means any individual, partnership, 
                corporation, or cooperative association that 
                regularly engages in the commercial 
                transportation of equine for slaughter; but
                    (B) does not include any individual or 
                other entity referred to in subparagraph (A) 
                that occasionally transports equine for 
                slaughter incidental to the principal activity 
                of the individual or other entity in production 
                agriculture.

SEC. 903. REGULATION OF COMMERCIAL TRANSPORTATION OF EQUINE FOR 
                    SLAUGHTER.

    (a) In General.--Subject to the availability of 
appropriations, the Secretary of Agriculture may issue 
guidelines for the regulation of the commercial transportation 
of equine for slaughter by persons regularly engaged in that 
activity within the United States.
    (b) Issues for Review.--In carrying out this section, the 
Secretary of Agriculture shall review the food, water, and rest 
provided to equine for slaughter in transit, the segregation of 
stallions from other equine during transit, and such other 
issues as the Secretary considers appropriate.
    (c) Additional Authority.--In carrying out this section, 
the Secretary of Agriculture may--
            (1) require any person to maintain such records and 
        reports as the Secretary considers necessary;
            (2) conduct such investigations and inspections as 
        the Secretary considers necessary; and
            (3) establish and enforce appropriate and effective 
        civil penalties.

SEC. 904. LIMITATION OF AUTHORITY TO EQUINE FOR SLAUGHTER.

    Nothing in this subtitle authorizes the Secretary of 
Agriculture to regulate the routine or regular transportation, 
to slaughter or elsewhere, of--
            (1) livestock other than equine; or
            (2) poultry.

SEC. 905. EFFECTIVE DATE.

    This subtitle shall become effective on the first day of 
the first month that begins 30 days or more after the date of 
enactment of this Act.

                     Subtitle B--General Provisions

SEC. 911. INTERSTATE QUARANTINE.

    The fourth sentence of section 8 of the Act of August 20, 
1912 (7 U.S.C. 161), is amended by inserting after ``Provided, 
That'' the following: ``if the Secretary of Agriculture 
determines under this section that it is necessary to 
quarantine a State entirely comprised of islands, the Secretary 
of Agriculture, in implementing the restrictions authorized 
under this section, shall give consideration to enhancing 
passenger movement and commerce on and between islands in the 
State: Provided further, That''.

SEC. 912. COTTON CLASSIFICATION SERVICES.

    (a) Extension of Authorization.--The first sentence of 
section 3a of the Act of March 3, 1927 (commonly known as the 
``Cotton Statistics and Estimates Act'') (7 U.S.C. 473a), is 
amended by striking ``1996'' and inserting ``2002''.
    (b) Cotton Classing Office Locations.--Section 4 of the Act 
of March 3, 1927 (commonly known as the ``Cotton Statistics and 
Estimates Act'') (7 U.S.C. 474), is amended by adding at the 
end the following: ``The Secretary of Agriculture shall 
maintain until at least January 1, 1999, all cotton classing 
office locations in the State of Missouri that existed on 
January 1, 1996.''.

SEC. 913. PLANT VARIETY PROTECTION FOR CERTAIN TUBER PROPAGATED PLANT 
                    VARIETIES.

    (a) In General.--Section 42(a)(1)(B)(i) of the Plant 
Variety Protection Act (7 U.S.C. 2402(a)(1)(B)(i)) is amended 
by inserting after ``filing'' the following: ``, except that in 
the case of a tuber propagated plant variety the Secretary may 
waive the 4-year limitation for a period ending 1 year after 
the date of enactment of the Federal Agriculture Improvement 
and Reform Act of 1996''.
    (b) Term of Protection.--Section 83(b) of the Plant Variety 
Protection Act (7 U.S.C. 2483(b)) is amended--
            (1) by striking ``(b) The term'' and inserting the 
        following:
    ``(b) Term.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the term'';
            (2) in the second sentence, by striking ``If the 
        certificate'' and inserting the following:
            ``(2) Exceptions.--If the certificate''; and
            (3) in paragraph (2) (as so designated), by 
        striking ``except that, in the case'' and inserting the 
        following: ``except that--
                    ``(A) in the case of a tuber propagated 
                plant variety subject to a waiver granted under 
                section 42(a)(1)(B)(i), the term of the plant 
                variety protection shall expire 20 years after 
                the date of the original grant of the plant 
                breeder's rights to the variety outside the 
                United States; and
                    ``(B) in the case''.

SEC. 914. SWINE HEALTH PROTECTION.

    (a) Termination of State Primary Enforcement 
Responsibility.--Section 10 of the Swine Health Protection Act 
(7 U.S.C. 3809) is amended--
            (1) by redesignating subsection (c) as subsection 
        (d); and
            (2) by inserting after subsection (b) the 
        following:
    ``(c) Request of State Official.--
            ``(1) In general.--On request of the Governor or 
        other appropriate official of a State, the Secretary 
        may terminate, effective as soon as the Secretary 
        determines is practicable, the primary enforcement 
        responsibility of a State under subsection (a). In 
        terminating the primary enforcement responsibility 
        under this subsection, the Secretary shall work with 
        the appropriate State official to determine the level 
        of support to be provided to the Secretary by the State 
        under this Act.
            ``(2) Reassumption.--Nothing in this subsection 
        shall prevent a State from reassuming primary 
        enforcement responsibility if the Secretary determines 
        that the State meets the requirements of subsection 
        (a).''.
    (b) Advisory Committee.--The Swine Health Protection Act is 
amended--
            (1) by striking section 11 (7 U.S.C. 3810); and
            (2) by redesignating sections 12, 13, and 14 (7 
        U.S.C. 3811, 3812, and 3813) as sections 11, 12, and 
        13, respectively.

SEC. 915. DESIGNATION OF MOUNT PLEASANT NATIONAL SCENIC AREA.

    Sections 1, 2, and 3(a)(1) of the George Washington 
National Forest Mount Pleasant Scenic Area Act (Public Law 103-
314; 16 U.S.C. 545 note) are each amended by striking ``George 
Washington National Forest Mount Pleasant Scenic Area'' and 
inserting ``Mount Pleasant National Scenic Area''.

SEC. 916. PSEUDORABIES ERADICATION PROGRAM.

    Section 2506(d) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (21 U.S.C. 114i(d)) is amended by striking 
``1995'' and inserting ``2002''.

SEC. 917. COLLECTION AND USE OF AGRICULTURAL QUARANTINE AND INSPECTION 
                    FEES.

    Section 2509 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (21 U.S.C. 136a) is amended by striking 
subsection (a) and inserting the following:
    ``(a) Quarantine and Inspection Fees.--
            ``(1) Fees authorized.--The Secretary of 
        Agriculture may prescribe and collect fees sufficient--
                    ``(A) to cover the cost of providing 
                agricultural quarantine and inspection services 
                in connection with the arrival at a port in the 
                customs territory of the United States, or the 
                preclearance or preinspection at a site outside 
                the customs territory of the United States, of 
                an international passenger, commercial vessel, 
                commercial aircraft, commercial truck, or 
                railroad car;
                    ``(B) to cover the cost of administering 
                this subsection; and
                    ``(C) through fiscal year 2002, to maintain 
                a reasonable balance in the Agricultural 
                Quarantine Inspection User Fee Account 
                established under paragraph (5).
            ``(2) Limitation.--In setting the fees under 
        paragraph (1), the Secretary shall ensure that the 
        amount of the fees is commensurate with the costs of 
        agricultural quarantine and inspection services with 
        respect to the class of persons or entities paying the 
        fees. The costs of the services with respect to 
        passengers as a class includes the costs of related 
        inspections of the aircraft or other vehicle.
            ``(3) Status of fees.--Fees collected under this 
        subsection by any person on behalf of the Secretary are 
        held in trust for the United States and shall be 
        remitted to the Secretary in such manner and at such 
        times as the Secretary may prescribe.
            ``(4) Late payment penalties.--If a person subject 
        to a fee under this subsection fails to pay the fee 
        when due, the Secretary shall assess a late payment 
        penalty, and the overdue fees shall accrue interest, as 
        required by section 3717 of title 31, United States 
        Code.
            ``(5) Agricultural quarantine inspection user fee 
        account.--
                    ``(A) Establishment.--There is established 
                in the Treasury of the United States a fund, to 
                be known as the `Agricultural Quarantine 
                Inspection User Fee Account', which shall 
                contain all of the fees collected under this 
                subsection and late payment penalties and 
                interest charges collected under paragraph (4) 
                through fiscal year 2002.
                    ``(B) Use of account.--For each of fiscal 
                years 1996 through 2002, funds in the 
                Agricultural Quarantine Inspection User Fee 
                Account shall be available, in such amounts as 
                are provided in advance in appropriations Acts, 
                to cover the costs associated with the 
                provision of agricultural quarantine and 
                inspection services and the administration of 
                this subsection. Amounts made available under 
                this subparagraph shall be available until 
                expended.
                    ``(C) Excess fees.--Fees and other amounts 
                collected under this subsection in any of 
                fiscal years 1996 through 2002 in excess of 
                $100,000,000 shall be available for the 
                purposes specified in subparagraph (B) until 
                expended, without further appropriation.
            ``(6) Use of amounts collected after fiscal year 
        2002.--After September 30, 2002, the unobligated 
        balance in the Agricultural Quarantine Inspection User 
        Fee Account and fees and other amounts collected under 
        this subsection shall be credited to the Department of 
        Agriculture accounts that incur the costs associated 
        with the provision of agricultural quarantine and 
        inspection services and the administration of this 
        subsection. The fees and other amounts shall remain 
        available to the Secretary until expended without 
        fiscal year limitation.
            ``(7) Staff years.--The number of full-time 
        equivalent positions in the Department of Agriculture 
        attributable to the provision of agricultural 
        quarantine and inspection services and the 
        administration of this subsection shall not be counted 
        toward the limitation on the total number of full-time 
        equivalent positions in all agencies specified in 
        section 5(b) of the Federal Workforce Restructuring Act 
        of 1994 (Public Law 103-226; 5 U.S.C. 3101 note) or 
        other limitation on the total number of full-time 
        equivalent positions.''.

SEC. 918. MEAT AND POULTRY INSPECTION.

    (a) Establishment of Safe Meat and Poultry Inspection 
Panel.--
            (1) In general.--The Federal Meat Inspection Act is 
        amended--
                    (A) by redesignating section 410 (21 U.S.C. 
                680) as section 411; and
                    (B) by inserting after section 409 (21 
                U.S.C. 679) the following:

``SEC. 410. SAFE MEAT AND POULTRY INSPECTION PANEL.

    ``(a) Establishment.--There is established in the 
Department of Agriculture a permanent advisory panel to be 
known as the `Safe Meat and Poultry Inspection Panel' (referred 
to in this section as the `panel').
    ``(b) Duties.--
            ``(1) Review and evaluation.--The panel shall 
        review and evaluate, as the panel considers necessary, 
        the adequacy, necessity, safety, cost-effectiveness, 
        and scientific merit of--
                    ``(A) inspection procedures of, and work 
                rules and worker relations involving Federal 
                employees employed in, plants inspected under 
                this Act;
                    ``(B) informal petitions or proposals for 
                changes in inspection procedures, processes, 
                and techniques of plants inspected under this 
                Act;
                    ``(C) formal changes in meat inspection 
                regulations promulgated under this Act, whether 
                in notice, proposed, or final form; and
                    ``(D) such other matters as may be referred 
                to the panel by the Secretary regarding the 
                quality or effectiveness of a safe and cost-
                effective meat inspection system under this 
                Act.
            ``(2) Reports.--
                    ``(A) In general.--The panel shall submit 
                to the Secretary a report on the results of 
                each review and evaluation carried out under 
                paragraph (1), including such recommendations 
                as the panel considers appropriate.
                    ``(B) Reports on formal changes.--In the 
                case of a report concerning a formal change in 
                meat inspection regulations, the report shall 
                be made within the time limits prescribed for 
                formal comments on such changes.
                    ``(C) Publication in federal register.--
                Each report of the panel to the Secretary shall 
                be published in the Federal Register.
    ``(c) Secretarial Response.--Not later than 90 days after 
the publication of a panel report under subsection (b)(2)(C), 
the Secretary shall publish in the Federal Register any 
response required of the Secretary to the report.
    ``(d) Composition of Panel.--The panel shall be composed of 
7 members, not fewer than 5 of whom shall be from the food 
science, meat science, or poultry science profession, appointed 
to staggered terms not to exceed 3 years by the Secretary from 
nominations received from the National Institutes of Health and 
the Federation of American Societies of Food Animal Science and 
based on the professional qualifications of the nominees.
    ``(e) Nominations.--
            ``(1) Initial panel.--In constituting the initial 
        panel, the Secretary shall solicit 6 nominees from the 
        National Institutes of Health and 6 nominees from the 
        Federation of American Societies of Food Animal Science 
        for membership on the panel.
            ``(2) Vacancies.--Any subsequent vacancy on the 
        panel shall be filled by the Secretary after soliciting 
        2 nominees from the National Institutes of Health and 2 
        nominees from the Federation of American Societies of 
        Food Animal Science.
            ``(3) Requirements for nominees.--
                    ``(A) In general.--Each nominee provided 
                under paragraph (1) or (2) shall have a 
                background in public health issues and a 
                scientific expertise in food, meat, or poultry 
                science or in veterinary science.
                    ``(B) Submission of information.--The 
                Secretary may require nominees to submit such 
                information as the Secretary considers 
                necessary prior to completing the selection 
                process.
            ``(4) Additional nominees.--If any list of nominees 
        provided under paragraph (1) or (2) is unsatisfactory 
        to the Secretary, the Secretary may request the 
        nominating entities to submit an additional list of 
        nominees.
    ``(f) Travel Expenses.--While away from the home or regular 
place of business of a member of the panel in the performance 
of services for the panel, the member shall be allowed travel 
expenses, including per diem in lieu of subsistence, at the 
same rate as a person employed intermittently in the Government 
service would be allowed under section 5703 of title 5, United 
States Code.
    ``(g) Conflicts of Interest.--The Secretary shall 
promulgate regulations regarding conflicts of interest with 
respect to the members of the panel.
    ``(h) Exemption.--The Federal Advisory Committee Act (5 
U.S.C. App.) and title XVIII of the Food and Agriculture Act of 
1977 (7 U.S.C. 2281 et seq.) shall not apply to the panel.
    ``(i) Funding.--From funds available to the Secretary to 
carry out this Act and the Poultry Products Inspection Act (21 
U.S.C. 451 et seq.), the Secretary shall allocate such sums as 
may be necessary to carry out this section.''.
            (2) Cross reference in poultry products inspection 
        act.--The Poultry Products Inspection Act (21 U.S.C. 
        451 et seq.) is amended by adding at the end the 
        following:

``SEC. 30. SAFE MEAT AND POULTRY INSPECTION PANEL.

    ``(a) Review and Evaluation.--The advisory panel known as 
the `Safe Meat and Poultry Inspection Panel' established by 
section 410 of the Federal Meat Inspection Act shall review and 
evaluate, as the panel considers necessary, the adequacy, 
necessity, safety, cost-effectiveness, and scientific merit 
of--
            ``(1) inspection procedures of, and work rules and 
        worker relations involving Federal employees employed 
        in, plants inspected under this Act;
            ``(2) informal petitions or proposals for changes 
        in inspection procedures, processes, and techniques of 
        plants inspected under this Act;
            ``(3) formal changes in poultry inspection 
        regulations promulgated under this Act, whether in 
        notice, proposed, or final form; and
            ``(4) such other matters as may be referred to the 
        panel by the Secretary regarding the quality or 
        effectiveness of a safe and cost-effective poultry 
        inspection system under this Act.
    ``(b) Reports.--
            ``(1) In general.--The Safe Meat and Poultry 
        Inspection Panel shall submit to the Secretary a report 
        on the results of each review and evaluation carried 
        out under paragraph (1), including such recommendations 
        as the panel considers appropriate.
            ``(2) Reports on formal changes.--In the case of a 
        report concerning a formal change in poultry inspection 
        regulations, the report shall be made within the time 
        limits prescribed for formal comments on such 
        changes.''.
    (b) Interstate Shipment of State-Inspected Meat and 
Poultry.--Not later than 90 days after the date of enactment of 
this Act, the Secretary of Agriculture shall submit to Congress 
recommendations concerning the steps necessary to achieve 
interstate shipment of--
            (1) meat inspected under a State meat inspection 
        program developed and administered under section 301 of 
        the Federal Meat Inspection Act (21 U.S.C. 661); and
            (2) poultry inspected under a State poultry product 
        inspection program developed and administered under 
        section 5 of the Poultry Products Inspection Act (21 
        U.S.C. 454).

SEC. 919. REIMBURSABLE AGREEMENTS.

    (a) In General.--The Secretary of Agriculture (referred to 
in this section as the ``Secretary'') may enter into 
reimbursable fee agreements with persons for preclearance at 
locations outside the United States of plants, plant products, 
animals, and articles for movement into the United States.
    (b) Overtime, Night, and Holiday Work.--Notwithstanding any 
other provision of law, the Secretary may pay an employee of 
the Department of Agriculture performing services relating to 
imports into and exports from the United States for overtime, 
night, and holiday work performed by the employee at a rate of 
pay established by the Secretary.
    (c) Reimbursement.--
            (1) In general.--The Secretary may require persons 
        for whom preclearance services are performed to 
        reimburse the Secretary for any amounts paid by the 
        Secretary for performance of the services.
            (2) Crediting of funds.--All funds collected under 
        paragraph (1) shall be credited to the account that 
        incurs the costs and shall remain available until 
        expended without fiscal year limitation.
            (3) Late payment penalty.--
                    (A) In general.--On failure of a person to 
                reimburse the Secretary for the costs of 
                performance of preclearance services--
                            (i) the Secretary may assess a late 
                        payment penalty; and
                            (ii) the overdue funds shall accrue 
                        interest in accordance with section 
                        3717 of title 31, United States Code.
                    (B) Crediting of funds.--Any late payment 
                penalty and any accrued interest collected 
                under this paragraph shall be credited to the 
                account that incurs the costs and shall remain 
                available until expended without fiscal year 
                limitation.

SEC. 920. OVERSEAS TORT CLAIMS.

    (a) In General.--The Secretary of Agriculture may pay a 
tort claim in the manner authorized by section 2672 of title 
28, United States Code, if the claim arises outside the United 
States in connection with activities of individuals who are 
performing services for the Secretary.
    (b) Period for Presentation of Claim.--A claim may not be 
allowed under this section unless the claim is presented in 
writing to the Secretary of Agriculture within 2 years after 
the date on which the claim accrues.
    (c) Finality.--Notwithstanding any other provision of law, 
an award or denial of a claim by the Secretary of Agriculture 
under this section is final.

SEC. 921. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE AS 
                    NONAPPROPRIATED FUND INSTRUMENTALITY.

    (a) Definitions.--In this section:
            (1) Graduate school.--The term ``Graduate School'' 
        means the Graduate School of the Department of 
        Agriculture.
            (2) Board.--The term ``Board'' means the General 
        Administration Board of the Graduate School.
            (3) Director.--The term ``Director'' means the 
        Director of the Graduate School.
            (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
    (b) Operation as Nonappropriated Fund Instrumentality.--On 
and after the date of enactment of this Act, the Graduate 
School of the Department of Agriculture shall continue to 
operate as a nonappropriated fund instrumentality of the United 
States under the jurisdiction of the Department of Agriculture.
    (c) Activities of Graduate School.--Under the general 
supervision of the Secretary, the Graduate School shall 
develop, administer, and provide educational, training, and 
professional development activities, including educational 
activities for Federal agencies, Federal employees, nonprofit 
organizations, other entities, and members of the general 
public.
    (d) Fees and Donations.--
            (1) Collection of fees.--The Graduate School may 
        charge and retain fair and reasonable fees for the 
        activities provided by the Graduate School. The amount 
        of the fees shall be based on the cost of the 
        activities to the Graduate School.
            (2) Acceptance of donations.--
                    (A) Acceptance and use authorized.--The 
                Graduate School may accept, use, hold, dispose, 
                and administer gifts, bequests, and devises of 
                money, securities, and other real or personal 
                property made for the benefit of, or in 
                connection with, the Graduate School.
                    (B) Exception.--The Graduate School shall 
                not accept a donation from a person that is 
                actively engaged in a procurement activity with 
                the Graduate School or has an interest that may 
                be substantially affected by the performance or 
                nonperformance of an official duty of a member 
                of the Board or an employee of the Graduate 
                School.
            (3) Not federal funds.--Fees collected under 
        paragraph (1) and amounts received under paragraph (2) 
        shall not be considered to be Federal funds and shall 
        not be required to be deposited in the Treasury of the 
        United States.
    (e) General Administration Board and Director.--
            (1) Appointment as governing board.--The Secretary 
        shall appoint a General Administration Board to serve 
        as a governing board for the Graduate School and to 
        supervise and direct the activities of the Graduate 
        School. The Board shall be subject to regulation by the 
        Secretary.
            (2) Duties of board.--The Board shall--
                    (A) formulate broad policies in accordance 
                with which the Graduate School shall be 
                administered;
                    (B) take all steps necessary to ensure that 
                the highest possible educational standards are 
                maintained by the Graduate School;
                    (C) exercise general supervision over the 
                administration of the Graduate School; and
                    (D) establish such bylaws, rules, and 
                procedures as may be necessary for the 
                fulfillment of the duties described in 
                subparagraphs (A), (B), and (C).
            (3) Appointment of director and other officers.--
        The Board shall select a Director and such other 
        officers as the Board considers necessary to administer 
        the Graduate School. The Director and other officers 
        shall serve on such terms and perform such duties as 
        the Board may prescribe.
            (4) Duties of director.--The Director shall be 
        responsible, subject to the supervision and direction 
        of the Board, for carrying out the functions of the 
        Graduate School.
            (5) Borrowing and investment authority.--The Board 
        may authorize the Director--
                    (A) to borrow money on the credit of the 
                Graduate School; and
                    (B) to invest funds held in excess of the 
                current operating requirements of the Graduate 
                School for purposes of maintaining a reasonable 
                reserve.
            (6) Liability.--The Director and the members of the 
        Board shall not be held personally liable for any loss 
        or damage that may accrue to the funds of the Graduate 
        School as the result of any act or exercise of 
        discretion performed in carrying out their duties under 
        this section.
    (f) Employees.--Employees of the Graduate School are 
employees of a nonappropriated fund instrumentality and shall 
not be considered to be Federal employees.
    (g) Not a Federal Agency.--The Graduate School shall not be 
considered to be a Federal agency for purposes of--
            (1) the Federal Advisory Committee Act (5 U.S.C. 
        App.);
            (2) section 552 or 552a of title 5, United States 
        Code; or
            (3) chapter 171 of title 28, United States Code;
    (h) Acquisition and Disposal of Property.--In order to 
carry out the activities of the Graduate School, the Graduate 
School may--
            (1) acquire real property in the District of 
        Columbia and in other places by lease, purchase, or 
        otherwise;
            (2) maintain, enlarge, or remodel any such 
        property;
            (3) have sole control of any such property; and
            (4) dispose of real and personal property without 
        regard to the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 471 et seq.).
    (i) Contract Authority.--The Graduate School may enter into 
contracts without regard to the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) or 
any other law that prescribes procedures for the procurement of 
property or services by an executive agency.
    (j) Use of Department Facilities and Resources.--The 
Graduate School may use the facilities and resources of the 
Department of Agriculture, on the condition that any costs 
incurred by the Department that are attributable solely to 
Graduate School operations and all costs incurred by the 
Graduate School arising out of such operations shall be paid 
using funds of the Graduate School. Federal funds may not be 
used to pay the costs.

SEC. 922. STUDENT INTERNSHIP PROGRAMS.

    (a) Student Intern Subsistence Program.--
            (1) Definition of student intern.--In this 
        subsection, the term ``student intern'' means a person 
        who--
                    (A) is employed by the Department of 
                Agriculture (referred to in this section as the 
                ``Department'') to assist scientific, 
                professional, administrative, or technical 
                employees of the Department; and
                    (B) is a student in good standing at an 
                institution of higher education (as defined in 
                section 1201 of the Higher Education Act of 
                1965 (20 U.S.C. 1141)) pursuing a course of 
                study related to the field in which the person 
                is employed by the Department.
            (2) Payment of certain expenses by the secretary.--
        The Secretary of Agriculture (referred to in this 
        section as the ``Secretary'') may, out of user fee 
        funds or funds appropriated to any agency of the 
        Department, pay for lodging expenses, subsistence 
        expenses, and transportation expenses of a student 
        intern at the agency (including expenses of 
        transportation to and from the student intern's 
        residence at or near the institution of higher 
        education attended by the student intern and the 
        official duty station at which the student intern is 
        employed).
    (b) Cooperation With Associations of Colleges and 
Universities.--
            (1) Authority to cooperate.--Notwithstanding 
        chapter 63 of title 31, United States Code, the 
        Secretary may enter into cooperative agreements on an 
        annual basis with 1 or more associations of 
        institutions of higher education (as defined in section 
        1201 of the Higher Education Act of 1965 (20 U.S.C. 
        1141)) for the purpose of providing for Department 
        participation in internship programs for graduate and 
        undergraduate students who are selected by the 
        associations from students attending member 
        institutions of the associations and other institutions 
        of higher education.
            (2) Internship program.--An internship program 
        supported under this subsection (referred to in this 
        subsection as an ``internship program'') shall provide 
        work assignments for students within the Department and 
        such other activities as the association that enters 
        into the cooperative agreement under paragraph (1) with 
        respect to the internship program (referred to in this 
        subsection as the ``cooperating association'') and the 
        Secretary shall determine. The nature of Department 
        participation in an internship program shall be 
        developed jointly by the Secretary and the cooperating 
        association.
            (3) Program coordination.--The cooperating 
        association shall coordinate an internship program, 
        including--
                    (A) the recruitment of students;
                    (B) arrangements for travel of the students 
                to Washington, District of Columbia, and to 
                agency field locations;
                    (C) the provision of housing for students, 
                if required; and
                    (D) all activities for the students that 
                take place outside the Department work 
                assignments of the students.
            (4) Number and selection of students.--
                    (A) Number.--A cooperative agreement 
                entered into under paragraph (1) shall specify 
                the number of students that the Department will 
                host each year and a list of work assignments 
                to be provided for the students.
                    (B) Selection.--The cooperating association 
                shall provide the Department with a pool of 
                student candidates meeting the requirements for 
                each work assignment identified by the 
                Secretary. Final selection of the students for 
                Department internship positions shall be made 
                by the Secretary.
            (5) Cost reimbursement.--From such amounts as the 
        Secretary determines are available each fiscal year for 
        internship programs, and subject to such regulations as 
        the Secretary may issue, the Secretary may reimburse a 
        cooperating association for the Department share of all 
        direct and indirect costs of an internship program, 
        including student stipends, transportation costs to the 
        internship site, and other costs of an internship 
        program.
            (6) Lead agency.--The Secretary may designate a 
        lead agency within the Department to carry out this 
        subsection.
            (7) Interagency agreements.--Agencies and offices 
        within the Department other than the lead agency--
                    (A) may enter into interagency agreements 
                with the lead agency to provide work 
                assignments for students participating in an 
                internship program; and
                    (B) shall reimburse the lead agency for the 
                direct and indirect costs of each student 
                assigned to the agency under an internship 
                program.
            (8) Federal employee status.--A student who 
        participates in an internship program shall not be 
        considered a Federal employee, except for purposes of 
        chapter 81 of title 5, and chapter 171 of title 28, 
        United States Code.

SEC. 923. CONVEYANCE OF EXCESS FEDERAL PERSONAL PROPERTY.

    Notwithstanding any other provision of law, the Secretary 
of Agriculture may--
            (1) convey title to excess Federal personal 
        property owned by the Department of Agriculture, with 
        or without monetary compensation and for such purposes 
        as are determined by the Secretary, to--
                    (A) any of the 1994 Institutions (as 
                defined in section 532 of the Equity in 
                Educational Land-Grant Status Act of 1994 
                (Public Law 103-382; 7 U.S.C. 301 note));
                    (B) any Hispanic-serving institution (as 
                defined in section 316(b) of the Higher 
                Education Act of 1965 (20 U.S.C. 1059c(b))); 
                and
                    (C) any college or university eligible to 
                receive funds under the Act of August 30, 1890 
                (7 U.S.C. 321 et seq.), including Tuskegee 
                University; and
            (2) acquire from, exchange with, or dispose of 
        personal property to other Federal departments and 
        agencies without monetary compensation in furtherance 
        of the purposes of this section.

SEC. 924. CONVEYANCE OF LAND TO WHITE OAK CEMETERY.

    (a) In General.--
            (1) Release of interest.--After execution of the 
        agreement described in subsection (b), the Secretary of 
        Agriculture shall release the condition stated in the 
        deed on the land described in subsection (c) that the 
        land be used for public purposes, and that if the land 
        is not so used, that the land revert to the United 
        States. The release shall be on the condition that the 
        land be used exclusively for cemetery purposes, and 
        that if the land is not so used, that the land revert 
        to the United States.
            (2) Bankhead-jones farm tenant act.--Section 32(c) 
        of the Bankhead-Jones Farm Tenant Act (7 U.S.C. 
        1011(c)) shall not apply to the release under paragraph 
        (1).
    (b) Agreement.--The Secretary of Agriculture shall make the 
release under subsection (a) on execution by the Board of 
Trustees of the University of Arkansas, in consideration of the 
release, of an agreement, satisfactory to the Secretary of 
Agriculture, that--
            (1) the Board of Trustees will not sell, lease, 
        exchange, or otherwise dispose of the land described in 
        subsection (c) except to the White Oak Cemetery 
        Association of Washington County, Arkansas, or a 
        successor organization, for exclusive use for an 
        expansion of the cemetery maintained by the Association 
        or successor organization; and
            (2) the proceeds of such a disposition of the land 
        will be deposited and held in an account open to 
        inspection by the Secretary of Agriculture, and used, 
        if withdrawn from the account, for public purposes.
    (c) Land Description.--The land described in this 
subsection is the land conveyed to the Board of Trustees of the 
University of Arkansas, with certain other land, by deed dated 
November 18, 1953, comprising approximately 2.2 acres located 
within property of the University of Arkansas in Washington 
County, Arkansas, commonly known as the ``Savor property'' and 
described as follows:
            The part of Section 20, Township 17 north, range 31 
        west, beginning at the north corner of the White Oak 
        Cemetery and the University of Arkansas Agricultural 
        Experiment Station farm at Washington County road #874, 
        running west approximately 330 feet, thence south 
        approximately 135 feet, thence southeast approximately 
        384 feet, thence north approximately 330 feet to the 
        point of beginning.

SEC. 925. SALE OF LAND BY THE UNIVERSITY OF ARKANSAS.

    The Act of March 2, 1887 (commonly known as the ``Hatch Act 
of 1887'') (7 U.S.C. 361a et seq.) shall not apply to the sale 
by the University of Arkansas of the approximately 103.52 acres 
of land in Washington County, Arkansas, owned by the University 
and commonly known as the ``Walker Tract'', if the sale is made 
on the condition that all of the proceeds of the sale are used 
for agricultural research facilities and programs of the 
University of Arkansas.

SEC. 926. DESIGNATION OF DALE BUMPERS SMALL FARMS RESEARCH CENTER.

    (a) In General.--The small farms research facility of the 
Agricultural Research Service located near Booneville, 
Arkansas, shall be known and designated as the ``Dale Bumpers 
Small Farms Research Center''.
    (b) References.--Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
research facility referred to in subsection (a) shall be deemed 
to be a reference to the ``Dale Bumpers Small Farms Research 
Center''.

SEC. 927. DEPARTMENT OF AGRICULTURE WASHINGTON AREA STRATEGIC SPACE 
                    PLAN.

    The Secretary of Agriculture may obligate not more than 
$5,000,000, from funds appropriated for agriculture buildings 
and facilities and rental payments, for the improvement of 
State and local roads relating to the construction of an office 
complex at the Beltsville Agriculture Research Center, 
Maryland, as part of the implementation of the Department of 
Agriculture Washington Area Strategic Space Plan.

SEC. 928. SEVERABILITY.

    If any provision of this Act or the application thereof to 
any person or circumstance is held invalid, the invalidity 
shall not affect other provisions or applications of this Act 
that can be given effect without regard to the invalid 
provision or application, and to this end the provisions of 
this Act are severable.

      And the Senate agree to the same.
                                   Pat Roberts,
                                   Bill Emerson,
                                   Steve Gunderson,
                                   Thomas W. Ewing,
                                   Bill Barrett,
                                   Wayne Allard,
                                   John Boehner,
                                   Richard Pombo,
                                   E de la Garza,
                                   Charlie Rose,
                                   Charlie Stenholm,
                                   Gary Condit,
                                 Managers on the Part of the House.

                                   Richard G. Lugar,
                                   Bob Dole,
                                   Jesse Helms,
                                   Thad Cochran,
                                   Mitch McConnell,
                                   Larry E. Craig,
                                   Patrick Leahy,
                                   Howell Heflin,
                                Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The Managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 2854) to modify 
the operation of certain agricultural programs, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
       The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clarifying 
changes.

            Title I--Agricultural Market Transition Program

(1) Short title
       The House bill names title 1 the ``Agriculture Market 
Transition Program.'' (Section 1)
       The Senate amendment names the bill the ``Agriculture, 
Reform and Improvement Act'' and title 1 ``The Agriculture 
Market Transition Act.'' (Section 101)
       The Conference substitute adopts the Senate provision 
with an amendment naming the bill the Federal Agriculture 
Improvement and Reform Act (Section 1) and title I the 
Agriculture Market Transition Act. (Section 101)

                  subtitle a--purpose and definitions

(2) Purpose
       The House bill states that it is the purpose of this 
title to authorize the use of binding production flexibility 
contracts between the United States and producers; to make 
nonrecourse marketing assistance loans; to improve the 
operation of the peanut and sugar programs and; to terminate 
price support authority under the Agriculture Act of 1949. 
(Section 101)
       The Senate amendment has no comparable provision.
       The Conference substitute adopts the House provision 
with an amendment deleting the reference to the Agriculture Act 
of 1949 and adding a reference to the establishment of the 
Commission on 21st Century Production Agriculture. (Section 
101)
(3) Definitions
       The House bill, in Section 102 contains definitions of 
terms used throughout Title I. ``Contract commodity'' includes 
wheat, corn, grain sorghum, barley, oats, upland cotton, and 
rice; ``contract acreage'' means one or more crop acreage bases 
established under title V of the Agricultural Act of 1949 that 
would have been in effect for the 1996 crop; and ``loan 
commodity'' means each contract commodity, plus extra long 
staple cotton and oilseeds.
       The Senate amendment, in Section 102, achieves the same 
purpose but for technical differences.
       The Conference substitute adopts the House provision 
with technical amendments. (Section 102)

              subtitle b--production flexibility contracts

(4) Offers and terms
       The House bill, in Section 103(a), in paragraph (1), 
authorizes the Secretary to enter into 7-year production 
flexibility contracts between 1996 and 2002 with eligible 
owners and operators on a farm containing eligible farmland. In 
exchange for annual payments under the contract, the owner or 
operator must agree to comply with the applicable conservation 
plan for the farm, the wetland protection requirements of title 
XII of the Food Security Act of 1985, and the planting 
flexibility requirements of subsection (j). The land under a 
contract must be maintained in an agricultural or related 
activity; conversion to a non-agricultural commercial or 
industrial use.
       The Senate amendment, in Section 103, is similar but 
does not restrict land subject to a contract to an agricultural 
use.
       The Conference substitute adopts the House provision 
with technical amendments removing references to the 
``conservation plan'' and instead requiring compliance with 
highly erodible land and wetlands restrictions from the Food 
Security Act of 1985. (Section 111(a))
(5) Eligible owners and operators described
       The House bill, in Section 103(a), in paragraph (2), 
describes eligible owners and operators, that include:
            (A) an owner who assumes all risk of producing a 
        crop;
            (B) an owner who shares in the risk of producing a 
        crop;
            (C) an operator with a share-rent lease regardless 
        of the length of such lease if the owner also enters 
        into the contract;
            (D) an operator with a cash rent lease that expires 
        on or after September 30, 2002, in which case the 
        consent of the owner is not required;
            (E) an operator with a cash rent lease that expires 
        before September 30, 2002, and the owner consents to 
        the contract;
            (F) an owner with a cash rent lease, but only if 
        the operator declines to enter into a contract, in 
        which case payments under the contract will not begin 
        until the fiscal year following the year in which the 
        lease expires; and
            (G) an owner or operator regardless of whether the 
        owner or operator purchased catastrophic risk 
        protection for a fall-planted 1996 crop.
      The Senate amendment, in Section 103(a)(2), is identical 
but for technical differences.
      The Conference substitute adopts the House provision with 
technical amendments that replaced references to ``operator'' 
with ``producers'' and that further clarify contract 
eligibility.
      The Managers do not intend that there be any substantial 
change in the existing landlord-tenant policy at USDA, which 
has functioned successfully for several decades. State law on 
tenancy should continue to govern the relationship between 
landlords and tenants. Cash-rent landlords are allowed to be 
signatories of the contract, and if the producer does not 
enroll all the eligible cropland of a farm into a contract, the 
consent of the owner is required. However, this is to 
facilitate orderly transfer and any potential succession 
situation relating to the contract and creates no additional 
liability or obligation for the cash-rent landlord. The 
purchase of catastrophic risk protection for 1996 crops is not 
a factor for determining contract eligibility. (Section 111(b))
(6) Tenants and sharecroppers
      The House bill, in Section 103(a), in paragraph(3), 
instructs the Secretary to provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
      The Senate amendment is identical but for technical 
differences.
      The Conference substitute adopts the House provision with 
technical amendments. (Section 111(c))
(7) Eligible cropland described
      The House bill, in Section 103(c) describes eligible 
farmland, which is land that contains a crop acreage base, at 
least of a portion of which was enrolled in the acreage 
reduction programs authorized for a crop of rice, upland 
cotton, feed grains, or wheat and which has served as the basis 
for deficiency payments in at least one of the 1991 through 
1995 crop years. With respect to contracts for acreage enrolled 
in the CRP, such acreage must have crop acreage base 
attributable to it.
      The Senate amendment, in Section 103 is similar but also 
provides authority for the Secretary to establish a fair and 
equitable crop acreage base for beginning farmers.
      The Conference substitute adopts the House provision. The 
Managers note that producers who have certified planted acreage 
under the 1990 farm bill shall be eligible to participate in 
the market transition program. (Section 111(d)).
      The Managers recognize that USDA has been establishing 
crop acreage bases (CAB) and program payment yields for each 
contract commodity that participated in the Acreage Reduction 
Programs and also any contract commodity that was reported to 
the county FSA offices as planted, or was reported as 
conserving use acres, or zero acreage planting protection 
either to maintain or build CAB's. These CAB's and yields were 
established in accordance with provisions of Title V of the 
Agricultural Act of 1949. The Managers intend that these CAB's 
become known as ``contract acreage'' and any farm having 
contract acreage for at least one crop would be eligible to 
enroll to receive benefits under a Production Flexibility 
Contract. It is the intent of the Managers that any farm for 
which a 1996 CAB would have been established under Title V of 
the Agricultural Act of 1949 would be eligible to enter into a 
Production Flexibility Contract. A one-time sign-up period 
would allow producers to decide whether to enroll all or a 
portion of the contract acreage for each crop. Except for CRP 
contracts that expire after the fiscal year 1996 sign-up 
period, producers should not have a later opportunity to 
participate in the program. The Managers also adopted an 
amendment allowing an owner or producer to enroll all or a 
portion of the eligible cropland of a farm and to subsequently 
reduce the size of the contract acreage. (Section 111(e) 
and(f))
(8) Elements of contracting
      The House bill, in Section 103(b), in paragraph (1), 
provides that the deadline for entering into a contract is 
April 15, 1996, except that owners and operators on farms which 
contain acreage enrolled in the Conservation Reserve Program 
(``CRP'') may enter into a contract upon the expiration of the 
CRP contract.
      The Senate amendment is identical
      The Conference substitute adopts the House provision with 
a technical amendment directing the Secretary to commence sign-
up, to the maximum extent practicable, no later than 45 days 
after enactment and shall end sign-up not later than August 1, 
1996. (Section 112(a))
      It is the intent of the Managers that lands subject to a 
CRP contract that expires or is voluntarily terminated after 
August 1, 1996, and that has an eligible farm program base 
history, should be eligible to enter into an Agriculture Market 
Transition contract after that date. A producer who voluntarily 
terminates a CRP contract should have the option to receive 
either a prorated CRP payment or a contract payment.
(9) Duration of contract
      The House bill, in Section 103(b), in paragraph (2), 
provides that the contracts shall begin with the 1996 crop year 
and extend through the 2002 crop year.
      The Senate amendment is identical.
      The Conference substitute adopts the Senate provision 
with an amendment allowing a contract to be terminated earlier 
by a producer or owner. (Section 112(b))
(10) Estimation of contract payments
      The House bill, in Section 103(b), in paragraph (3), 
provides that, at the time a contract is signed, the Secretary 
shall estimate the anticipated payments that will be made under 
the contract for at least the first fiscal year.
      The Senate amendment is identical.
      The Conference substitute adopts the House provision. 
(Section 112(c))
(11) Time For payment; in general
      The House bill, in Section 103(d) establishes the payment 
dates under the contracts as September 30 of each of the fiscal 
years 1996 through 2002.
      The Senate amendment is identical.
      The Conference substitute adopts the Senate provision. 
(Section 112(d))
(12) Advance payments
      The House bill provides that an owner or operator may opt 
to receive half of each annual payment on December 15 of each 
year. For the 1996 fiscal year, an owner or operator may elect 
to receive half of the payment not later than June 15.
      The Senate amendment is identical.
      The Conference substitute adopts the House provision with 
an amendment allowing a producer, in fiscal year 1996, to opt 
to receive a 50 percent advance payment 30 days after the 
contract is entered into and approved. For the remaining fiscal 
years, a producer can opt to receive a 50 percent advance 
payment on December 15 or January 15. The date of this election 
can be modified in subsequent fiscal years at the option of the 
producer. (Section 112(d))
(13) Fiscal year amounts
      The House bill, in Section 103(e), in paragraph (1), 
establishes spending limits of:
            (A) $5,570,000,000 for FY 1996;
            (B) $5,385,000,000 for FY 1997;
            (C) $5,800,000,000 for FY 1998;
            (D) $5,603,000,000 for FY 1999;
            (E) $5,130,000,000 for FY 2000;
            (F) $4,130,000,000 for FY 2001; and
            (G) $4,008,000,000 for FY 2002.
      The Senate amendment is identical.
      The Conference substitute adopts the Senate provision. 
(Section 113(a))
      The Managers intend that USDA, to the maximum extent 
practicable, expend the amounts specified by this section in 
each fiscal year. Final payment rates for each crop should be 
calculated based on the amount of all contract production 
enrolled by all producers for that crop for the fiscal year. 
Any unexpended amounts in a fiscal year should be added to the 
amount available for contract payments in the next succeeding 
fiscal year as specified under section 113(a), except 
unexpended funds attributable to the application of the payment 
limitation provisions.
(14) Allocation (commodity)
      The House bill, in Section 103(e), in paragraph (2), 
allocates the yearly amounts among the contract commodities as 
follows:
            (A) wheat, 26.26 percent;
            (B) corn, 46.22 percent;
            (C) grain sorghum, 5.11 percent;
            (D) barley, 2.16 percent;
            (E) oats, 0.15 percent;
            (F) upland cotton, 11.63 percent; and
            (G) rice, 8.47 percent.
      The Senate amendment is identical.
      The Conference substitute adopts the Senate provision. 
(Section 112(b))
(15) Adjustment
      The House bill, in Section 103(e), in paragraph (3), 
directs the Secretary to adjust the amounts allocated in 
paragraph (2), if necessary, by:
            (A) adding producer repayments of deficiency 
        payments received during that fiscal year under section 
        114(a)(2) of the Agricultural Act of 1949;
            (B) adding contract payments withheld at the 
        request of producers, during the preceding fiscal year 
        as an offset against repayments of deficiency payments 
        otherwise required under section 114(a)(2) of the 
        Agricultural Act of 1949; and
            (C) adding contract payments which are refunded 
        during the preceding fiscal year under section 103(h) 
        for the commodity; and
            (D) subtracting payments required under sections 
        103B, 105B, and 107B of the Agricultural Act of 1949 
        for the 199 and 1995 crop years.
      The Senate amendment, in Section 103(e), in paragraph 
(3), directs the Secretary to adjust the amounts allocated in 
paragraph (2), if necessary, by:
            (A) subtracting payments (final deficiency 
        payments) required under sections 103B, 105B, and 107B 
        of the Agricultural Act of 1949 for the 1994 and 1995 
        crop years;
            (B) adding any required producer repayments of 
        deficiency payments received during that fiscal year 
        under section 114(a)(2) of the Agricultural Act of 
        1949;
            (C) adding contract payments withheld at the 
        request of producers, during the preceding fiscal year 
        as an offset against repayments of deficiency payments 
        otherwise required under section 114(a)(2) of the 
        Agricultural Act of 1949; and
            (D) adding contract payments which are refunded 
        during the preceding fiscal year under section 103(h) 
        for the commodity.
      The Conference substitute adopts the House provision with 
an amendment directing the Secretary to adjust the amounts 
allocated for each contract commodity under subsection (b) in a 
particular fiscal year by:
            (1) adding all repayment of deficiency payments 
        required under section 114(a)(2) of the Agriculture Act 
        of 1949;
            (2) adding all contract payment refunds received 
        the previous year under section 116; and
            (3) subtracting payments made during that fiscal 
        year under sections 103B, 105B, or 107B of the 
        Agricultural Act of 1949 for the 1994 and 1995 crop 
        years. (Section 113(c))
(16) Additional rice allocation
      The House bill, in Section 103(e), in paragraph (4), 
requires the Secretary to determine the amount necessary to 
make the remaining payments under section 101B of the 
Agriculture Act of 1949 for the 1994 and 1995 crops of rice. 
The Secretary is directed to subtract this amount, in equal 
installments, from the amount in paragraph (2)(G) available for 
rice.
      The Senate amendment, in Section 103(e), in paragraph 
(3), directs the Secretary to increase the amount available for 
rice in paragraphs (1), (2) and (3), by $17,000,000 for each of 
fiscal years 1997 through 2002.
      The Conference substitute adopts the Senate provision 
with an amendment reducing the amount to $8,500,000 for each of 
fiscal years 1997 through 2002. (Section 113(d))
      The Managers adopted an amendment to ensure that the 
total amounts available for contract payments shall be reduced 
by the total amount of payments foregone due to payment 
limitations, and that the portion of a contract payment that is 
attributed to repayment of advance deficiency payments for the 
1994 and 1995 crop years does not apply to the payment 
limitation for subsequent years. However, such payment should 
not exceed $50,000. (Section 113 (e) and (f))
(17) Determination of contract payments
      The House bill, in Section 103(f) provides the method for 
determining payments under a particular contract:
        Paragraph (1) establishes the process for determining 
        the payment quantity of a contract commodity, which is 
        the product of 85 percent of the contract acreage and 
        the farm program payment yield for the commodity.
       The Senate amendment contains an identical provision.
       The Conference substitute adopts the House provision. 
(Section 114 (a))
(18) Annual Payment quantity of contract commodities
      The House bill, in Paragraph (2) provides that the 
payment quantity of each contract commodity covered by all 
contracts for each fiscal year shall equal the sum of all the 
payment quantities under paragraph (1).
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision. 
(Section 114(b))
(19) Annual payment rate
      The House bill, in Paragraph (3) provides that the annual 
payment rate for a contract commodity shall be the amount made 
available under 103(e) for the commodity divided by the total 
payment quantity under paragraph (2).
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 114(c))
(20) Annual payment amount
      The House bill, in Paragraph (4) provides that the 
payment amount to be paid under a contract shall be equal to 
the product of the payment quantity determined under paragraph 
(1) and the payment rate determined under paragraph (3).
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision 
with an amendment that the annual payment amount is the sum of 
payments for all contract commodities and that contract 
payments shall be reduced by an amount equal to any required 
repayment of advance deficiency payments under section 
114(a)(2) of the Agriculture Act of 1949.
      The Managers adopted an amendment to direct the Secretary 
to collect repayments as soon as contract payments are 
determined. (Section 114(d) and (e))
(21) Assignment of contract payments
      The House bill, in Paragraph (5) provides that the 
provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act relating to assignment of payments shall 
apply to contract payments, and requires that the owner, 
operator, or assignee to notify the Secretary of such 
assignment.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 114(f))
(22) Sharing of contract payments
      The House bill, in Paragraph (6) directs the Secretary to 
allow for the sharing of payments among owners and operators in 
a fair and equitable manner.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment.
      The Managers intend that the Production Flexibility 
Contracts ensure a fixed payment based on section 113 and 114 
for seven years. The contracts are farm specific and apply to 
that farm for the seven-year term of the contract. However, it 
is the intent of the Managers that the division of payments and 
the producers on a contract could change each year to reflect 
the producers on the farm for that year. Changes in producers 
on a farm could result from changes in rental agreements, 
ownership, or other changes to a farming operation. The purpose 
of this program is to transition producers who have been 
earning deficiency payments from government-driven planting 
decisions to market-driven planting decisions. The Managers 
intend that USDA administer this program to generally ensure 
consistency with current regulations relating to the division 
of payments and fair treatment of tenants and landowners. Past 
payment history on a farm should also be considered when 
determining eligible producers and payment divisions. Owners 
who follow State tenancy laws and timely notify tenants should 
have the ability to change renters and rental arrangements and 
change Production Flexibility Contracts to reflect those 
changes. (Section 114(g))
(23) Payment limitation, applicability
      The House bill, in Section 103(g) provides that the total 
amount of payments under a contract during any fiscal year may 
not exceed the payment limitation established under sections 
1001 through 1001C of the Food Security Act of 1985.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 115)
(24) Payment limitation
      The House bill, in Section 105(a) amends section 1001 of 
the Food Security Act of 1985 to provide that the total amount 
of contract payments to a person under section 103 of this Act 
may not exceed $40,000 during any fiscal year, and that the 
total amount of marketing loan gains or loan deficiency 
payments to a person under section 104 of this Act may not 
exceed $75,000.
      Section 105(b) makes necessary conforming changes to the 
Food Security Act of 1985 and the Agricultural Reconciliation 
Act of 1987.
      The Senate amendment, in Section 105, contains a similar 
provision but for technical differences.
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 115(b))
(25) Violations of contract
      The House bill, in Section 103(h), in paragraph (1), 
authorizes the Secretary to terminate a contract if an owner or 
operator violates the farm's conservation compliance plan, 
wetland protection requirements, planting flexibility 
provisions, or agricultural use restrictions. Upon termination, 
the owner or operator forfeits future payments and must refund 
payments received during the period of the violation, with 
interest as determined by the Secretary.
      Section 103(h), in paragraph (2), provides that, if the 
Secretary determines that the nature of the violation does not 
warrant termination of the contract as provided in paragraph 
(1), the Secretary may--
            (A) require a partial refund with interest; or
            (B) adjust future contract payments.
      The Senate amendment, in Section 103(h), contains an 
identical provision but for technical differences.
      The Conference substitute adopts the House provision. 
(Section 116)
(26) Foreclosure (effect of violation)
      The House bill, in Section 103(h), in paragraph (3), 
prohibits the Secretary from requiring repayments from an owner 
or operator if farmland which is subject to the contract is 
foreclosed upon and the Secretary determines that forgiving 
such repayments is appropriate in order to provide fair and 
equitable treatment. This authority does not void the 
responsibilities of such owner or operator if the owner or 
operator continues or resumes control or operation of the 
property subject to the contract, and in effect reinstate the 
contract.
      Section 103(h), in paragraph (4), provides that a 
determination by the Secretary under this subsection shall be 
considered as an adverse decision for purposes of 
administrative review.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision. 
(Section 116(c))
(27) Transfer of interest in lands subject to contract
      The House bill, in Section 103(i), in paragraph (1), 
provides for transfers of land subject to a contract. The 
Secretary is to carry out this paragraph in such a manner to 
ensure that the reconstitution of a farm in association with a 
transfer results in no additional outlays. Upon a transfer, a 
contract is automatically terminated unless the transferee 
agrees to assume all obligations under the contract. A 
transferee may request modifications to a contract before 
assuming it, if the modifications are consistent with the 
objectives of this section as determined by the Secretary.
      Section 103(i), in paragraph (2), authorizes the 
Secretary to issue regulations regarding contract payments in 
instances in which an owner or operator dies, becomes 
incompetent, or is otherwise unable to receive a contract 
payment.
      The Senate amendment contains a similar provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 117)
(28) Planting flexibility; permitted crops
      The House bill, in Section 103(j), in paragraph (1) 
provides that, subject to the restrictions in paragraph (2)(A), 
any commodity or crop may be planted on contract acreage.
      The Senate amendment, in Section 103(j), contains a 
similar provision.
      The Conference substitute adopts the Senate provision. 
(Section 118)
(29) Haying and grazing
      In the House bill, Subparagraph (A) allows unlimited 
haying and grazing on 15% of contract acreage, and unlimited 
haying and grazing of contract acreage planted to a contract 
commodity during the crop year.
      Subparagraph (A) also provides that haying and grazing of 
contract acreage shall be permitted, except during the 5-month 
period designated by the State Committee established under 
section 8(b) of the Soil Conservation and Domestic Allotment 
Act between April 1 and October 31st of each year. The 
Secretary may permit unlimited haying and grazing on eligible 
farmland in cases of a natural disaster.
       The Senate amendment contains a similar provision but 
for technical differences.
      The Conference substitute adopts the House provision with 
an amendment to strike the provision. It is the intent of the 
Managers that the haying and grazing of any commodity or crop 
should be allowed on contract acreage without restriction, and 
without a reduction in contract payments.
(30) Alfalfa
      The House bill, in subparagraph (B) provides that the 
planting and harvesting of alfalfa on contract acreage shall be 
unlimited, except that the quantity of acreage eligible for a 
contract payment shall be reduced proportionately for each acre 
beyond 15 percent on which alfalfa is planted and harvested.
      The Senate amendment contains a similar provision but for 
technical differences.
      The Conference substitute adopts the Senate provision 
with an amendment to strike the provision.
(31) Fruits and vegetables
      In the House bill, Paragraph (2) prohibits the planting 
of fruits and vegetables on contract acreage, except in any 
region with a history of double cropping, as determined by the 
Secretary. This restriction does not apply to contract 
commodities, lentils, mung beans, and dry peas.
      The Senate amendment, contains a similar provision except 
that the planting of fruits and vegetables is allowed only on a 
farm with a history of double cropping.
      The Conference substitute adopts the House provision with 
an amendment:
      Subparagraph (A): the double-cropping of fruits or 
vegetables in association with a contract commodity on contract 
acres is allowed in any region with a history of such practice, 
as determined by the Secretary, regardless of the planting 
history of an individual farm;
      Subparagraph (B): a fruit or vegetable can be grown 
without limitation on any farm with a history of fruit or 
vegetable production on contract acres, except that a contract 
payment shall be reduced by one acre for each contract acre 
planted to a fruit or vegetable in that year; and,
      Subparagraph (C): a producer with a history of production 
of a specific fruit or vegetable, as determined by the 
Secretary, is allowed to rent or lease contract acres to grow 
that fruit or vegetable, on any farm, without respect to the 
planting history of the individual farm. The number of acres so 
leased or rented cannot exceed the average acres rented or 
leased by that producer in crop years 1991-1995. Years of no 
production are not included in the average, and for each 
contract acre so rented or leased, the contract payment shall 
be reduced by one acre. (Section 118)
      The Managers intend for the Secretary to administer the 
exceptions to the fruits and vegetable planting prohibitions as 
three distinctly separate situations. With respect to 
subparagraphs (A), (B), and (C), any perceived limitation in 
one subparagraph should not limit flexibility in any other 
subparagraph. (Section 118)

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

(32) Nonrecourse marketing assistance loans and loan deficiency 
        payments
      The House bill, in Section 104(a), in paragraph (1), 
directs the Secretary to make nonrecourse marketing assistance 
loans available to eligible producers of loan commodities for 
each of the 1996 through 2002 crops of such commodities under 
terms and conditions prescribed by the Secretary at rates 
established under section 104(b).
      Section 104(a), in paragraph (2), provides that the 
amount of production eligible for a marketing assistance loan 
includes all production of a loan commodity produced by a 
producer who has entered into a contract, and any production of 
extra long staple cotton or oilseeds.
      Section 104(a), in paragraph (3), establishes recourse 
loans for high moisture feed grains. Eligibility shall be 
limited to the product of the harvested acreage of high 
moisture feed grains and the lower of the payment yield or 
actual yield on a field.
      Section 104(b), in paragraph (1), provides that the loan 
rate for wheat is not less than 85 percent of the 5-year 
Olympic average, with a maximum of $2.58 per bushel, and the 
Secretary has authority to further decrease the loan rate in a 
particular year based on stocks-to-use ratios.
      Section 104(b), in paragraph (2), provides that the loan 
rate for corn is not less than 85 percent of the 5-year Olympic 
average, with a maximum of $1.89 per bushel, and the Secretary 
has authority to further reduce the loan rate in a particular 
year based on stocks-to-use ratios. Loan rates for other feed 
grains are to be set at rates which are fair and reasonable in 
relation to the rate for corn.
      Section 104(b), in paragraph (3), provides that the loan 
rate for upland cotton shall be not less than the smaller of:
            (i) 85 percent of the average U.S. spot market 
        price during the preceding 5 marketing years, excluding 
        the highest and lowest-price years, or
            (ii) 90 percent of the average price of the 5 
        lowest priced growths quoted for Northern Europe during 
        a specified period, adjusted downward to account for 
        differences between the Northern Europe and U.S. spot 
        market prices.
      However, in any case, the loan rate shall not be less 
than $0.50 per pound nor more than $0.5192 per pound.
      Section 104(b), in paragraph (4), provides that the loan 
rate for extra long staple cotton shall be not less than 85 
percent of the 5-year Olympic average, with a maximum of 
$0.7965 per pound.
      Section 104(b), in paragraph (5), provides that the loan 
rate for rice shall be $6.50 per hundredweight.
      Section 104(c) provides that the term of a loan shall be 
nine months, except that a loan for upland or extra long staple 
cotton shall be ten months, starting on the first day of the 
first month after the month in which the loan is made. The 
Secretary may not extend loans.
      The Senate amendment contains an identical provision, but 
did not establish non-recourse loans for high-moisture 
feedgrains.
      The Conference substitute adopts the House position with 
a technical amendment to the reference period used to establish 
cotton loan levels. The Managers intend that no change in 
cotton loan rates shall result from this technical change. The 
Managers adopted a technical amendment limiting upland cotton 
loans to a ten month period and specifying that only contract 
commodities produced on a contract farm are eligible for a 
marketing or non-recourse loan. The Managers adopted an 
amendment directing the Secretary to carry out this subtitle in 
a manner to ensure that no additional outlays result from the 
reconstitution of farms. (Section 131, 132 and 133)
      The Managers also agreed to establish a recourse loan 
program for high-moisture feedgrains and seed cotton. (Section 
137)
      The Managers understand that the Secretary currently has 
authority to make a recourse loan available to producer on seed 
cotton (cotton which has been harvested but not ginned). This 
provision simply extends current law. The regulations governing 
the recourse seed cotton loan establish very strict repayment 
requirements. Since the loan must be repaid in a timely manner 
and repayment virtually always, with the exception of cotton 
harvested in the early production areas of the Lower Rio Grande 
Valley, occurs in the same fiscal year there should be minimal 
if any cost associated with extending this authority.
(33) Oilseeds
      The House bill, in Section 104(b), in paragraph (6), 
provides that the loan rate for oilseeds: soybeans are $4.92 
per bushel, sunflower seed, canola, rapeseed, safflower, 
mustard seed, and flaxseed are $0.087 per pound; and other 
oilseeds are set a level that is fair and reasonable in 
relation to the loan rate available for soybeans (not to exceed 
other oilseeds).
      The Senate amendment, in Section 104(b), in paragraph 
(6), provides that the loan rate for oilseeds shall be not less 
than 85 percent of the 5-year Olympic average market price. The 
soybean minimum loan is $4.92 per bushel and the maximum is 
$5.26 per bushel; the minimum loan for sunflower seed, canola, 
rapeseed, safflower, mustard seed, and flaxseed is $0.087 per 
pound and the maximum is $0.93 per pound; and other oilseeds 
are set a level that is fair and reasonable in relation to the 
loan rate available for soybeans (not to exceed other 
oilseeds).
      The Conference substitute adopts the Senate provision. 
(Section 132 (f))
(34) Repayment of loans
      The House bill, in Section 104(d) establishes repayment 
provisions for loan commodities at the lesser of:
            (A) the loan rate; or
            (B) the prevailing world market price (adjusted to 
        U.S. quality and location).
      Paragraph (2) sets additional repayment rates for wheat, 
feedgrains and oilseeds at the level that will:
            (A) minimize potential loan forfeitures;
            (B) minimize the accumulation of stocks of the 
        commodities by the Federal Government;
            (C) minimize the cost incurred by the Federal 
        Government in storing the commodities; and
            (D) allow the commodities produced in the United 
        States to be marketed freely and competitively, both 
        domestically and internationally.
      Paragraph (3) sets the repayment rate for extra long 
staple cotton at the loan rate plus interest.
      Paragraph (4) instructs the Secretary to prescribe by 
regulation a formula to determine the prevailing world market 
price and a mechanism to periodically announce the prevailing 
world market price.
      Paragraph (5) provides upland cotton prevailing world 
market price adjustment authority based on the Northern Europe 
price differential, with further adjustment authority based on 
the U.S. export share, current cotton exports and sales, and 
other data determined by the Secretary to be relevant. Such 
adjustments may not exceed the difference between the average 
U.S. price and the Northern Europe price.
      Section 104(e) directs the Secretary to make loan 
deficiency payments to producers who forego obtaining a loan 
under subsection (a) in an amount equal to the difference 
between the loan rate for a commodity and the level at which it 
may be repaid. However, there is no authority for loan 
deficiency payments for extra long staple cotton.
      Section 104(f) provides special marketing loan provisions 
for upland cotton.
      Paragraph (1) extends the first handler marketing 
certificate provisions through July 31, 2003, under which 
certificates (which may be redeemed for CCC-owned commodities) 
or cash payments must be made available to first handlers of 
cotton whenever the prevailing market price (adjusted for U.S. 
quality and location) is below the current loan repayment rate. 
The values of the certificates (or the amount of the payment) 
is based on the difference between the adjusted world price and 
the loan repayment level.
      The Senate amendment contains a similar provision but for 
technical differences.
      The Conference substitute adopts the House position with 
an amendment directing the Secretary to set the repayment rate 
for wheat, feedgrains and oilseeds at the lesser of the loan 
rate plus interest or the rate that the Secretary determines 
will minimize forfeitures, accumulation of stocks, cost to the 
government and that will allow the commodity to marketed freely 
and competitively, both domestically and internationally. The 
repayment rate for cotton and rice shall be the lesser of the 
loan rate pus interest or the prevailing world market price and 
the repayment rate for extra-long staple cotton shall be the 
loan rate plus interest. (Sections 134 and 135)
      To continue to achieve the objectives of minimizing 
forfeitures, the accumulation of stocks, and government costs 
while promoting competitive marketing in domestic and 
international markets, the Managers expect the Secretary to 
extend the provisions of current regulations governing entry 
into the marketing assistance loan and establishment of the 
repayment rate for the marketing assistance loan. The Managers 
recognize that the regulations vary by commodity and expect the 
Secretary to continue to establish regulations which reflect 
differences in normal commercial practices for the affected 
commodity. In particular, the Managers expect the Secretary to 
continue to establish the prevailing world price for upland 
cotton in the same manner utilized for the 1991 through 1995 
crops.
(35) Step 2
      The House bill, in Paragraph (1) extends the cotton user 
marketing certificate provisions (commonly known as ``Step 2'' 
provisions), which requires the Secretary to make payments, 
either in cash or marketing certificates, to domestic users and 
exporters for documented purchases whenever (i) the weekly U.S. 
Northern Europe price exceeds the Northern Europe price by more 
than 1.25 cents per pound for a consecutive four-week period; 
and (ii) the adjusted world market price does not exceed 130 
percent of the loan rate. However, no payments will be issued 
if, for the preceding consecutive 10-week period, the weekly 
U.S. Northern Europe price, adjusted for the value of any 
certificates or payments issued, exceeds the Northern Europe 
price by more than 1.25 cents per pound. The value of the 
certificates (or the amount of the payments) is the difference 
between the two prices, minus 1.25 cents, per pound. Payments 
under this paragraph may not exceed $701,000,000 between fiscal 
years 1996 through 2002.
      Paragraph (2) extends special import quota provisions 
(commonly known as ``Step 3'') which requires that a special 
import quota be opened if, for a consecutive 10-week period, 
the U.S. Northern Europe price, adjusted for the value of any 
payments issued under Step 2, exceeds the Northern Europe price 
by more than 1.25 cents per pound. The amount of the quota is 
equal to 1 week's domestic mill consumption. Importers have 90 
days to purchase and 180 days to enter the cotton into the U.S. 
after the quota is announced, and quota periods can overlap.
      Section 104(g) extends the limited global import quota 
provisions, which direct the President to carry out an upland 
cotton import quota program whenever the Secretary determines 
and announces that the average price in designated U.S. spot 
markets for a month, as determined by the Secretary, exceeded 
130 percent of such average price for the last 36 months. The 
quantity of this import quota is equal to 21 days of domestic 
mill consumption, but this quota cannot overlap with any quota 
announced under section 104(f).
      The Senate amendment is identical but for technical 
differences.
      The Conference substitute adopts the Senate provision 
with technical amendments. (Section 136)
      The Managers are aware that while the cotton marketing 
certificates have contributed to the goal of maintaining the 
competitive position of U.S. cotton in domestic and 
international markets, there has been concern about the adverse 
implications associated with the so-called ``bunching'' of 
export sales registrations. The Managers expect and urge the 
Secretary to issue a regulation which will eliminate, to the 
extent practicable, the so-called ``bunching'' of export sales 
registrations without significantly disrupting the normal 
marketing process for upland cotton in domestic and export 
markets.
      The Managers intend that Secretary should carefully 
consider issuing regulations such that if the spending 
limitation on cotton marketing certificates is reached the 
special import quota provided in paragraph (3) would be 
established following a consecutive four-week period in which 
the Friday through Thursday average price quotation for the 
lowest-priced United States growth, as quoted for Middling (M) 
one and three-thirty seconds inch cotton, delivered C.I.F. 
Northern Europe exceeds the Northern Europe price by more than 
1.25 cents per pound.

                     Subtitle D--Other Commodities

                            Chapter 1--Dairy

(36) Milk price support program; recourse loan program for commercial 
        processors of dairy products
      The House bill reauthorizes the milk price support 
program for five years with several major changes. It requires 
the Secretary of Agriculture to support the price of milk 
through the purchase of butter, nonfat dry milk, and cheese in 
the 48 contiguous States from the date of enactment through 
December 31, 2000. (Section 201(a))
      The House bill requires that milk containing 3.67 percent 
butterfat is supported at $10.15 per hundredweight during 
calendar year 1996; $10.05 during 1997; $9.95 during 1998; 
$9.85 during 1999; and $9.75 during 2000. (Section 201(b))
      The House bill continues the current law requirement that 
dairy product purchase prices (butter, cheese, and nonfat dry 
milk) announced by the Secretary of Agriculture be the same for 
all persons offering to sell product to the Secretary. Purchase 
prices must be sufficient to enable plants of average 
efficiency to pay producers on average a price that is not less 
than the rate of support for milk in effect under Section 
201(b). (Section 201(c))
      The House bill allows the Secretary of Agriculture to 
allocate the rate of support between the purchase prices for 
nonfat dry milk and butter in a manner that will minimize 
Commodity Credit Corporation expenditures or achieve other 
objectives as the Secretary considers appropriate. The 
Secretary is required to notify the House Committee on 
Agriculture and the Senate Committee on Agriculture, Nutrition 
and Forestry of the allocation within ten days after it is 
announced, but the Secretary may not make such adjustments more 
than twice each calendar year. (Section 201(d))
      The House bill requires the Secretary of Agriculture to 
refund assessments on milk marketings which occurred prior to 
enactment under Section 204(h)(2) of the Agricultural Act of 
1949 during calendar year 1995 or 1996, if the producer 
provides evidence that the producer did not increase marketings 
in 1995 or 1996 compared to 1994 or 1995, respectively. This 
subsection shall not apply for a particular calendar year if a 
producer has already received a refund under Section 204(h) of 
the Agricultural Act of 1949 for the same fiscal year before 
the date of enactment of this Act. Refunds under this section 
shall not be considered as price support or payment for 
purposes of producer violations of conservation compliance or 
wetlands conservation. (Section 201(e))
      The House bill authorizes the Secretary to carry out this 
program through the Commodity Credit Corporation. (Section 
201(f))
      The House bill also terminates authority for the price 
support program on December 31, 2000, notwithstanding Section 
257 of the Balanced Budget and Emergency Deficit Control Act of 
1985. (Section 201(g))
      The Senate amendment retains the current law milk price 
support program without change. The price support program is 
authorized through the end of calendar year 1996. Section 
201(c) of the Agricultural Act of 1949, which requires the 
Secretary to support the price of milk at not less than 75 
percent of parity, is applicable thereafter.
       The Conference substitute adopts the House position with 
two amendments. The first amendment continues a milk price 
support program through December 31, 1999 at a price support 
level of $10.35/cwt in 1996, $10.20/cwt in 1997, $10.05/cwt in 
1998, and $9.90/cwt in 1999 and exempts the Secretary's actions 
with respect to changing the allocation for the purchase prices 
of butter and nonfat dry milk from informal rulemaking 
procedures. It is also the managers' intent that among the 
`other objectives' the Secretary should pursue when adjusting 
the support price between butter and nonfat dry milk is the 
maximization of exports of butter and nonfat dry milk. (Section 
141)
       The second amendment provides for a recourse loan 
program for butter, nonfat dry milk, and cheese on January 1, 
2000 at the 1999 price support level of $9.90/cwt. The 
Congressional Budget Office estimates that the recourse loan 
program will cost approximately $10 million in each of fiscal 
years 2000-2002 thereby maintaining a baseline for dairy 
program expenditures during these fiscal years. It is the 
intent of the managers that a budget baseline be maintained for 
dairy commodity program outlays in addition to the Dairy Export 
Incentive Program (DEIP) outlays. (Section 142)
(37) Consolidation and reform of Federal milk marketing orders
      The House bill requires the Secretary to amend federal 
milk marketing orders by consolidating the number of federal 
orders to between 10 and 14 and to provide for multiple basing 
points in the pricing of milk (Section 202(a)).
      The House bill requires the required consolidation of 
milk marketing orders to be announced not later than December 
31, 1998, and implemented not later than December 31, 2000. The 
Secretary is also required to use informal rulemaking when 
consolidating orders (Section 202(b)).
       The House bill precludes the Secretary from the use of 
any funds to administer more than 14 federal milk marketing 
orders beginning January 1, 2001 (Section 202(c)).
      The House bill requires the Secretary to submit to 
Congress a report that reviews the federal milk marketing order 
system, in light of the reforms required by subsection (a), and 
provide recommendations for further improvements and reforms to 
the federal milk marketing order system. The report must be 
submitted not later than January 1, 1998. (Section 202(d))
       The Senate amendment retains current law.
       The Conference substitute adopts the House provision 
with the following amendments. It requires that the Secretary 
consolidate the number federal milk marketing orders to not 
less than 10 and not more than 14 orders. In the process of 
consolidating orders, the Secretary is authorized to use 
multiple basing points and utilization rates in pricing fluid 
milk and to use uniform multiple component pricing when 
developing a new basic formula price(s) for manufacturing milk. 
There is no limitation on the number of issues the Secretary 
may consider when consolidating orders. The Conference 
substitute requires the Secretary to propose consolidation and 
pricing reform of milk marketing orders within two years of 
enactment of this Act, and to implement consolidation and 
pricing reform within 3 years of enactment of this Act. The 
Secretary is authorized to use informal rulemaking to address 
order consolidation and pricing reform, and any issues 
peripheral to the consolidation process.
       The Conference substitute also provides that Section 131 
of the Food Security Act of 1985 shall not be considered to 
affect the consolidation and pricing reform that will occur 
under this Act. The mere fact that the minimum price for Class 
I (fluid) milk in an order consolidated under this section is 
the same or substantially similar to a minimum Class I milk 
price for a predecessor order(s) listed in the table from 
Section 131 of the Food Security Act of 1985 shall neither 
raise a presumption, nor be conclusive, on the issue of whether 
the Secretary considered, or made the basis of his decision, 
the table in Section 131 of the Food Security Act of 1985.
       The Conference substitute further provides that the 
Federal milk marketing orders shall, upon the petition and 
approval by California dairy producers, cover the State of 
California, in which case that order shall have the right to 
re-blend and distribute order receipts to recognize quota 
value. The Managers do not intend in any way to amend, or 
create an exception for California from the requirements of, 
federal law (for federal milk marketing orders) regarding 
producer-handlers.
       The Substitute provides that if USDA does not complete 
consolidation of orders by the end of three years after 
enactment of this Act, the Department of Agriculture loses 
authority to assess producers and handlers for market order 
services and order administration until such consolidation is 
completed. However, the length of time during which any 
injunction is applicable against the Department with respect to 
the consolidation shall be added to the time in which the 
Department has to complete the consolidation under Subsection 
(a) paragraph (1). (Section 143)
(38) Effect on fluid milk standards in the State of California
       The House bill provides that nothing in this Act or any 
other provision of law shall preempt, prohibit, or otherwise 
limit the authority of the State of California from 
establishing or continuing any law, regulation, or requirement 
regarding (1) the percentage of milk solids or solids not fat 
in fluid milk products sold at retail or marketed in the State 
of California; or (2) the labeling of such fluid milk products 
with regard to milk solids or solids not fat. (Section 204)
       The Senate amendment has no provision.
       The Conference substitute adopts the House provision. 
The conference-adopted bill provides the State of California an 
exemption from the preemption provisions of any Federal law 
respecting standards of identity and labeling for fluid milk.
       The State of California has had a system for requiring 
fortified fluid milk since the early 1960's. These fluid milk 
standards were adopted by the State legislature and any 
revision of these standards must be approved by the state 
legislature. These standards apply to all fluid milk sold at 
retail or marketed in the State of California.
       The Managers intend for the State of California to be 
able to fully enforce and apply its fluid milk standards and 
their attendant labeling requirements to all fluid milk sold at 
retail or marketed in the State of California. For purposes of 
this section, the managers intend ``fluid milk'' means milk in 
final packaged form for beverage use. (Section 144)
(39) Milk manufacturing marketing adjustment
       The House bill repeals Section 102 of the Food, 
Agriculture, Conservation, and Trade Act of 1990, which forbids 
any State from allowing a manufacturing allowance greater than 
the amount allowed under federal law. (Section 205)
      The Senate amendment retains current law.
      The Conference substitute adopts the House provision with 
an amendment that repeals Section 102 and sets interim ceilings 
for state make allowances of $1.80 for cheese and $1.65 for 
butter/powder through December 31, 1999. (Section 145)
(40) Promotion; Northeast Interstate Dairy Compact
      The House bill states that an additional purpose of the 
fluid milk promotion program is to promote and expand markets 
for fluid milk, and not to restrict or otherwise discourage 
individual promotion or advertising of fluid milk products. 
(Section 206(a))
      The House bill states that the purpose stated in section 
206(a) is Congressional policy (Section 206(b)).
      The House bill expands the activities considered to be 
research under the Act. (Section 206(c))
      The House bill alters the minimum percentage adoption 
requirements in any referendum making changes in or terminating 
the fluid milk promotion order to reflect only those processors 
actually voting in the referendum. (Section 206(d))
      The House bill reauthorizes the fluid milk promotion 
program through calendar 2002. (Section 206(e))
      The Senate amendment has no provision.
      The Conference substitute adopts the House provision with 
two amendments. The first amendment makes technical changes in 
the Fluid Milk Promotion Program. (Section 146)
      The second amendment provides Congressional consent to 
the Northeast Interstate Dairy Compact as specified in Section 
1(b) of Senate Joint Resolution 28 of the 104th Congress 
subject to certain conditions. The Secretary is authorized to 
grant the New England region the authority to implement the 
compact, based upon a finding of a compelling public interest 
in the region. Such authority shall terminate concurrently with 
the Administration's implementation of the dairy pricing and 
Federal milk marketing order reform established under section 
143 of this Act. (Section 147)
(41) Dairy export incentive program
      The House bill extends authority for the Dairy Export 
Incentive Program (DEIP) from December 31, 2001 to December 31, 
2002. (Section 203(a))
      The House bill gives the Secretary sole discretion to 
accept or reject bids under such criteria as the Secretary 
deems appropriate. (Section 203(b))
      The House bill requires the Secretary to maximize the 
volume of dairy product exports under DEIP consistent with the 
obligations of the United States as a member of the World Trade 
Organization (minus the volume sold under Section 1163 of the 
Food Security Act of 1985 during that year), except to the 
extent that such an export volume exceeds the value limitations 
on DEIP set forth in Subsection (f). It also authorizes DEIP 
exports anywhere in the world, except to a destination in a 
country to which exports from the United States are restricted 
by law. (Section 203(c))
      The House bill authorizes the Secretary to increase bonus 
payments by an amount required to assist in the development of 
world markets. (Section 203(d))
      The House bill requires Commodity Credit Corporation 
funding for DEIP at the maximum amount consistent with 
obligations of the United States as a member of the World Trade 
Organization (minus the amount expended under Section 1163 of 
the Food Security Act of 1985 during that year). However, DEIP 
funding may not exceed the dairy product export volume 
limitations specified in Section 203(c). (Section 203(e))
      The Senate amendment retains current law for the Dairy 
Export Incentive Program.
      The Conference substitute adopts the House provision. The 
Managers intend that only that portion of sales under Section 
1163 which are subsidized sales should impact, and therefore 
decrease, the maximum volume and value limitations noted in 
this section.
      By affording the Secretary of Agriculture the sole 
discretion to make decisions concerning sales under the DEIP, 
it is the intent of the Managers to put to rest any interagency 
disputes over the program. It is the Managers' understanding 
that the DEIP will use only about 50,000 to 60,000 tons of the 
total nonfat dry milk tonnage of the 103,000 tons authorized 
under the Uruguay Round agreement during this year. It is also 
the Managers' understanding that during the second through 
fifth years of implementation of the Uruguay Round agreement, 
that the United States will be allowed to carry over from year 
to year unused DEIP tonnage under the cumulation rules set out 
in Article 9, section 2(b) of the WTO Agreement on Agriculture. 
The Managers recognize that there is a strong desire upon the 
part of many that the dairy title have a strong export 
orientation.
      The Managers instruct the Department along with the 
Office of the U.S. Trade Representative to carry over all 
unused DEIP tonnage in the first and all subsequent years of 
the Uruguay Round agreement in accordance with WTO cumulation 
rules. (Section 148)
(42) Authority to assist in establishment and maintenance of one or 
        more export trading companies
      The House bill requires the Secretary to provide the 
dairy industry assistance to establish and maintain an export 
trading company or companies. (Section 492)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 149)
(43) Standby authority to indicate entity best suited to provide 
        international market development and export services
      The House bill directs the Secretary to indicate which 
entity or entities are best suited to facilitate the 
international market development for U.S. dairy products. 
(Section 493)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 150)
(44) Study and report regarding potential impact of Uruguay Round on 
        prices, income and government purchases
      The House bill directs the Secretary to determine the 
impact on milk prices of additional imports of cheese as a 
result of the Uruguay Round Agricultural Agreement. (Section 
494)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment that any limitation imposed by Congress regarding 
studies or reports shall not apply with respect to this 
section. (Section 151)
(45) Promotion of United States dairy products in international markets 
        through dairy promotion program
      The House bill requires that no less than 10 percent of 
the funds available for the Dairy Promotion Program shall be 
available for development of international markets. (Section 
495)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment that makes expenditures on international market 
development discretionary. (Section 152)
(46) Quota Peanuts
      The House bill, in Section 106(a) provides nonrecourse 
loans to quota peanut producers at $610 per ton, and directs 
the Secretary to reduce the loan rate by 5 percent to any 
producer in the current marketing year who had an offer from a 
handler to purchase quota peanuts at quota support rate or 
higher but opted to place their peanuts under loan instead.
      The Senate amendment is identical except that it contains 
no provision directing the Secretary to reduce the loan rate by 
5 percent.
      The Conference substitute adopts the House provision, 
with an amendment in lieu of the 5 percent loan reduction 
provision, providing that an individual producer who markets 
his quota peanut crop, meeting quality requirements for 
domestic edible use, through the marketing association loan for 
two consecutive marketing years at a time when the Secretary 
determines a handler provided the producer with a written 
offer, upon delivery, for at least quota support price, shall 
become ineligible for quota price support for the next 
marketing year. The Secretary shall establish the means by 
which any decision regarding ineligibility for quota price 
support may be appealed. (Section 155(a))
(47) Additional peanuts
      The House bill, in Section 106(b) provides nonrecourse 
loans to producers of additional peanuts at such rates as the 
Secretary finds appropriate.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (155(b))
(48) Area marketing Associations
      The House bill, in Section 106(c) directs the Secretary 
to make price support loans available through area marketing 
associations via warehouse storage loans, where appropriate, 
and provides that administrative costs by an area marketing 
association shall be included in such loans. The Secretary is 
directed to require area marketing associations to establish 
and maintain pools for quota peanuts, with separate pools for 
New Mexico Valencia peanuts, and that net gains from each pool 
shall be distributed only to producers in the pool.
      The Senate amendment contains a similar provision except 
that only peanuts physically produced in New Mexico may 
participate in the New Mexico pool. A New Mexico resident may 
enter an amount of Valencia peanuts into the New Mexico pool 
that does not exceed the out-of-state quantity entered in 1995.
      The Conference substitute adopts the Senate position with 
amendment that allows producers who participated in the New 
Mexico pool with Valencia peanuts grown in Texas during the 
1990 through 1995 crop years to continue to participate in that 
pool. However, the quantity of Valencia peanuts grown outside 
of New Mexico that can be placed in the New Mexico pool is 
limited to the 1990 through 1995 average of Texas grown 
Valencia peanuts that a producer placed in the pool. The 
quantity of Texas produced Valencia peanuts allowed to enter 
the New Mexico pools, as provided in this subsection, is not 
transferable. (Section 155(c))
(49) Losses
      The House bill, in Section 106(d) provides that losses in 
quota pools shall be covered using the following sources in the 
following order of priority:
            (1) gains on transfers of peanuts from additional 
        loan pools;
            (2) individual producer gains from domestic and 
        export edible use sales of additional peanuts from 
        additional pools;
            (3) gains from the sale of additional peanuts in an 
        area pursuant to Section 358e (g)(1)(A) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 
        1359a(g)(1)(A));
            (4) marketing assessment funds collected from 
        growers under subsection (g) (except funds attributable 
        to handlers) with any unused assessment funds being 
        transferred to the Treasury;
            (5) gains or profits from quota pools in other 
        production areas (not including separate type pools 
        established for Valencia peanuts produced in New 
        Mexico); and
            (6) an increase in the marketing assessment for 
        such quota pool.
      The Senate amendment contains a similar provision except 
that in (3) any profits from additional peanuts sold for 
domestic edible use shall be used to offset quota losses in 
that area. In (6), the Senate amendment would assess all quota 
peanuts in the production area.
      The Conference substitute adopts the Senate provision to 
use profits from additional peanuts sold for domestic edible 
use with an amendment that loan redemption profits from farms 
with one acre or less are exempt. Assessments are to be 
increased on all quota peanuts, by production area, including 
those commercially marketed. The Managers intend that the 
Secretary shall review and consider the marketability of the 
various types of peanuts prior to announcing differentials for 
the 1997 and subsequent peanut crops, and to make appropriate 
adjustments. The sheller budget deficit assessment funds shall 
be used to offset losses after national cross compliance. 
(Section 155(d))
(50) Disapproval of quotas
      The House bill, in Section 106(e) provides that the 
Secretary may not make loans available for quota peanuts for 
any crop of quota peanuts for which producers have disapproved 
the poundage quota.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 155(e))
(51) Quality improvement
      The House bill, in Section 106(f) directs the Secretary 
to continue to promote quality improvement of peanuts.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 155(f))
(52) Marketing assessment
      The House bill, in Section 106(g) provides that first 
handlers (initial purchasers of peanuts) and producers pay a 
marketing assessment to CCC on all peanuts sold equal to 1.2 
percent of the national average loan rate. Producers shall pay 
.60 percent in 1996 and .65 percent in 1997 through 2002 and 
first handlers shall pay .55 percent.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 155(g))
(53) Crops
      The House bill, in Section 106(h) provides that 
subsections (a) through (f) are applicable to the 1996 through 
2002 crops of peanuts.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 155(h))
(54) Poundage quotas
      The House bill, in Section 106(i), in paragraph (1), 
amends the peanut quota provisions contained in part VI of 
subtitle B of title III of the Agricultural Adjustment Act of 
1938 (the ``1938 Act'') by extending such provisions through 
the 2002 marketing year.
      Section 106(i), in paragraph (2), amends section 358-
1(b)(1) of the Act (7 U.S.C. 1358-1(b)(1)) to provide that 
effective beginning January 1, 1997 the Secretary shall no 
longer establish farm poundage quota for farms owned or 
controlled by municipalities, airport authorities, schools, 
colleges, refuges, and other public entities (not including 
universities for research purposes); or for farms for which the 
quota holder is not a producer and resides in another State.
      Section 106(i), in paragraph (3), amends section 358-
1(a)(1) of the 1938 Act by eliminating the 1,350,000 ton 
minimum national poundage quota.
      Section 106(i), in paragraph (4), amends section 358-
1(b)(2) of the 1938 Act by deleting the current subparagraph 
(B) relating to allocation of increased quota in Texas and 
inserting a new subparagraph (B) authorizing temporary 
increases in quota based on seed use. Amended section 358-
1(b)(2), in subparagraph (B), provides that, for the 1996 
through 2002 marketing years, a temporary quota allocation for 
the marketing year only in which the crop is planted, equal to 
the number of pounds of seed peanuts planted for the farm that 
shall be made to the producers for the 1996 through 2002 
marketing years, in addition to the normal farm poundage quota 
established under section 358-1. Subparagraph (B) also provides 
that there is no change in the requirement regarding the use of 
quota and additional peanuts established by section 359a(b) of 
the 1938 Act. Also, subsection (a)(1) of such section no longer 
includes ``seed'' in the estimate of domestic edible use by the 
Secretary.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision with 
a technical amendment ``to change the effective date of quota 
eligibility effective beginning with the 1998 crop.'' (Section 
155(i))
(55) Spring and fall transfers of quota
      Section 106(i), in paragraph (5), amends section 
358b(a)(1) of the 1938 Act relating to farm poundage quota 
transfer. Amended section 358b(a)(1) allows farm poundage quota 
to be sold or leased, either before or after the normal 
planting season, to any other owner or operator of a farm in 
the same State. Current provisions requiring 90 percent of a 
farm's basic quota to be planted or considered planted before a 
fall (or after the normal planting season) transfer is allowed 
are maintained.
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment allowing a maximum of 40 percent transfer of quota 
across county lines, but within a state. Cumulative unexpired 
transfers outside of a county may not exceed 15 percent for the 
1996 crop, 25 percent for the 1997 crop, 30 percent for the 
1998 crop, 35 percent for the 1999 crop and 40 percent for the 
2000 and subsequent crops. The Conference substitute also 
allows full lease and sale in fall or spring for counties with 
less than 100,000 lbs. (50 tons) of quota, and allows 
unrestricted fall leasing of peanut quota across county lines 
within a state. (Section 155(i))
(56) Undermarketings
      Section 106(i), in paragraph (6), eliminates 
undermarketings by deleting paragraphs (8) and (9) of section 
358-1(b) of the 1938 Act, with necessary conforming changes to 
other sections.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (155(i))
(57) Disaster transfer
      Section 106(i), in paragraph (7), adds a new paragraph 
(8) to amended section 358-1(b) of the 1938 Act which 
authorizes the transfer of additional peanuts to a quota loan 
pool in cases in which quota poundage was not harvested and 
marketed because of drought, flood, or any other natural 
disaster, except that the such peanuts shall be supported at 70 
percent of the quota support rate, and such transfers shall not 
exceed 25 percent of the total farm quota pounds.
      The Senate amendment contains a similar provision that 
such peanuts shall be supported at not more than 70 percent of 
the quota support rate.
      The Conference substitute adopts the House provision. 
(Section 155(i))
(58) Sugar program; sugar cane
      The House bill, in Section 107(a) sets the loan rate for 
domestically grown sugarcane at 18 cents per pound for raw cane 
sugar.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision. 
(Section 156(a))
(59) Sugar beets
      Section 107(b) sets the loan rate for domestically grown 
sugar beets at 22.9 cents per pound for refined beet sugar.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision. 
(Section 156(b))
(60) Reduction in loan rates
      The House bill, in Section 107(c) requires the Secretary 
to reduce the loan rate specified in subsections (a) and (b) if 
the Secretary determines that negotiated reductions in export 
subsidies provided for sugar of the European Union and other 
major sugar exporting countries in the aggregate exceed the 
commitments made as part of the Agreement on Agriculture. It 
also provides that the Secretary shall not reduce the loan rate 
under subsections (a) and (b) below a rate that provides 
domestic sugar an equal measure of support to that provided by 
the European Union and other sugar exporting countries based on 
the provisions of Agreement on Agriculture, section 101(d)(2) 
of the Uruguay Round Agreements Act.
      The Senate amendment contains no similar provision.
      The Conference substitute adopts the House provision. 
(Section 156(c))
(61) Term of loan; loan type; processor assurances
      Section 107(d) provides that loan terms are the earlier 
of 9 months, or the end of a fiscal year, with supplemental 
loan authority (up to a total on nine months) for loans 
maturing at the end of a fiscal year.
      The House bill, in Section 107(e) provides for the 
Secretary to carry out the section through the use of recourse 
loans for sugar. However, it also provides that during any 
fiscal year in which the tariff rate quota (TRQ) for imports of 
sugar into the U.S. is set, or increased to, a level that 
exceeds 1,500,000 short tons raw value, the Secretary is 
directed to carry out this section by making nonrecourse loans 
(previously made recourse loans are to be modified by the 
Secretary into nonrecourse loans). If the Secretary is required 
to make nonrecourse loans (or modify recourse loans) under this 
subsection during a fiscal year, the Secretary is to obtain 
from processors adequate assurances that such processors will 
provide appropriate minimum payments to producers as set by the 
Secretary.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision 
with technical amendments. (Section 156(d) and (e))
(62) Marketing assessment
      The House bill, in Section 107(f) requires first 
processors of raw cane sugar to remit to CCC nonrefundable 
marketing assessment for each pound of raw cane sugar equal to 
1.1 percent of the loan rate for fiscal year 1996 (1.375 
percent for 1997 through 2003) while first processors of sugar 
beets are to remit to CCC a marketing assessment of 1.1794 
percent for fiscal year 1996 (1.47425 percent for 1997 through 
2003), on all marketings. Assessments are to be collected on a 
monthly basis, except that any inventory which has not been 
marketed by September 30 of a fiscal year shall be assessed at 
that point, except that the latter sugar shall not be assessed 
later when it is marketed. Any person who fails to remit the 
assessment is liable for a penalty based on the quantity of the 
sugar involved in the violation times the applicable loan rate 
at the time of violation.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision with 
technical amendments. (Section 155(f))
(63) Forfeiture penalty
      The House bill, in Section 107(g) provides for an 
additional penalty (1 cent per pound on cane sugar, pro rata on 
beet sugar) to be assessed on the forfeiture of any sugar 
pledged as collateral for a loan.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision 
with technical amendments. (Section 155(g))
(64) Information reporting
      The House bill, in Section 107(h) requires processors and 
refiners to report such information to the Secretary as is 
required in order to administer the program. A penalty applies 
for failure to report, and the Secretary is required to make 
monthly reports on pertinent sugar production, imports, 
distribution, and stock levels.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision 
with technical amendments. (Section 155(h))
(65) Crops
      The House bill in Section 107(j) states that this 
subsection shall be effective only for the 1996 through 2002 
crops of sugar beets and sugarcane.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 155(i))
(66) Marketing allotments
      The House bill, in Section 107(i) repeals marketing 
allotments for sugar, contained in Part VII of subtitle B of 
title III of the 1938 Act.
      The Senate amendment, in Section 109(1) suspends 
marketing allotment authority.
      The Conference substitute adopts the Senate provision 
with an amendment to strike the provision.

                       Subtitle E--Administration

 (67) Administration
      The House bill, in Section 108 directs the Secretary to 
use CCC to carry out this title, and prohibits the Secretary 
from using any CCC funds for the salaries or expenses of any 
officer or employee of USDA. It also provides authority to 
issue necessary regulations, and provides that determinations 
made by the Secretary under this title are final.
      The Senate amendment is similar but prohibits the use of 
CCC funds for salaries and expenses of any officer or employee.
      The Conference adopts an amendment to the CCC Charter Act 
that specifies: (1) CCC no longer has inherent authority to 
purchase personal property; (2) for fiscal year 1996, CCC 
spending for equipment or services relating to automated data 
processing, information technologies, or related items 
(including telecommunications equipment and computer hardware 
or software) be limited to not more than $170 million; (3) for 
fiscal years 1997 through 2002, CCC spending on such items be 
limited to not more than $275 million; (4) starting in fiscal 
year 1997, the use of reimbursable agreements with other 
Federal or State agencies, including agreements for automated 
data processing or information resource management activities, 
be limited to an aggregate amount not to exceed the total 
amount of reimbursable agreements in fiscal year 1995; and (5) 
after date of enactment, CCC submit to Congress on a quarterly 
basis an itemized report of all expenditures of over $10,000.

                         Reporting Requirements

      After date of enactment, the Managers expect the 
Assistant Secretary for Administration, or the USDA Chief 
Information Officer (if one has been placed in that position 
pursuant to the Information Technology Reform Act of 1996) to 
provide the House Committee on Agriculture and the Senate 
Committee on Agriculture, Nutrition and Forestry with quarterly 
reports on the expenditure of CCC funds under the Charter Act 
including all expenditures under reimbursable agreements, for 
administrative, automated data processing, information 
technology, and telecommunication products, including contracts 
with vendors for such products or support services. The 
Managers expect the reports to itemize expenditures in excess 
of $10,000, including any expenditures for similar products or 
services that, when aggregated, exceed $10,000. The first 
quarterly reports should also itemize all expenditures for 
fiscal year 1996, and each subsequent report should include 
aggregated expenditures for each category of product or service 
from the previous report. The Managers direct the Secretary to 
ensure that all reports are audited by the USDA Chief Financial 
Officer pursuant to the Financial Managers Integrity Act, the 
Government Performance and Results Act, and according to CFO 
Standards and Conventions.

                        Reimbursable Agreements

      The Managers expect the Secretary to incorporate funding 
for reimbursable agreements within the annual budget proposal 
beginning in fiscal year 1997. The Secretary should use every 
means at his disposal to establish line items for reimbursable 
agreements in future budgets. (Section 161)
(68) Adjustment of loans
      The House bill, in Section 104(h) provides general 
authority for the Secretary to use the Commodity Credit 
Corporation (``CCC'') and other means available to carry out 
the loans authorized by this section, and directs the Secretary 
to get adequate processor assurances that producers will get 
loan program benefits whenever a loan program includes payments 
to processors.
      Section 104(i) gives the Secretary general authority to 
make appropriate adjustments in loan levels based on grade, 
type, quality, location, and other factors.
      Section 104(j) provides that, in general, a producer is 
not personally liable for any deficiency arising from the sale 
of collateral securing a nonrecourse loan. However, exceptions 
are provided for quality or quantity deficiencies, failure to 
properly care or maintain collateral, or a failure to deliver a 
commodity. This section also provides that any security 
interest obtained by CCC in sugarcane or sugarbeets as a result 
of a security agreement by a processor shall be superior to all 
common law and statutory liens in favor of producers.
      Section 104(k) provides authority for CCC to sell any 
inventory commodities at any price that the Secretary 
determines will maximize returns to CCC, except that this 
authority does not apply to sales:
            (A) for new or byproduct uses;
            (B) of peanuts or oilseeds (if used for oil);
            (C) for seed if the sale will not impair a loan 
        program;
            (D) of deteriorated-quality commodities that are in 
        danger of spoiling;
            (E) for the purpose of establishing a claim arising 
        out of a fraudulent or other wrongful act pursuant to a 
        contract;
            (F) for export; or
            (G) for other than a primary use.
The Secretary is also authorized to make CCC-owned commodities 
available in any Presidential disaster area.
      The Senate amendment contains a similar provision but for 
technical differences.
      The Conference substitute adopts the House position.
      The Managers agreed to include an amendment that allows 
the Secretary to establish county loan rates so that the lowest 
county rate is 95 percent of the national average loan rate. 
This shall be done only if such action results in no additional 
outlays. (Section 162, 164, and 165)
      The Managers are concerned that the procedures used by 
USDA to establish county wheat and feed grain loan rates and 
posted-county-prices (PCP) may be outdated. The Managers expect 
USDA to evaluate whether improvements are warranted and to 
implement such changes before establishing 1997-crop county 
loan rates.
(69) Commodity Credit Corporation interest rate
      The House bill, in Section 403 provides that the interest 
rate charged by CCC on loans for agricultural commodities shall 
be 100 basis points greater than the rate established by the 
formula in effect on October 1, 1995.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision. 
(Section 163)

      Subtitle F--Suspension of Permanent Price Support Authority

(70) Suspension and repeal of permanent authorities
      The House bill, in Section 109 repeals the Agricultural 
Act of 1949 (certain necessary sections are transferred to the 
1938 Act), and makes required conforming amendments.
      The Senate amendment, in Paragraph (1) of Section 109(a) 
suspends the following provisions of the Agricultural 
Adjustment Act of 1938 for crop years 1996 through 2002:
            (A) acreage allotments for corn, marketing quotas 
        for wheat, marketing quotas for cotton and marketing 
        quotas for rice;
            (B) marketing quotas for peanuts;
            (C) sale, lease and transfer of peanut acreage 
        allotments;
            (D) marketing penalties for peanuts;
            (E) marketing quotas for sugar and crystalline 
        fructose;
            (F) publication and review of peanut quotas;
            (G) preservation of unused cotton allotments;
            (H) wheat marketing allocation; and
            (I) omitted cotton marketing certificates.
      Paragraph (1) of Section 109(b) suspends the following 
provisions of the Agricultural Act of 1949 for crop years 1996 
through 2002:
            (A) parity price support for basic agriculture 
        commodities;
            (B) parity price support for cotton;
            (C) parity price support for corn;
            (D) parity price support for wheat;
            (E) Farmer Owned Reserve;
            (F) Agriculture commodities utilization program;
            (G) commodity certificates;
            (H) parity price support for nonbasic agriculture 
        commodities;
            (I) price support provisions not consistent with 
        the Agriculture Market Transition Program;
            (J) acreage base and yield system; and
            (K) Emergency Livestock Feed Assistance Act of 
        1988.
      Paragraph (2) of Section 109(b) repeals the following 
provisions of the Agricultural Act of 1949:
            (A) loans, payments and acreage reduction programs;
            (B) peanut price support;
            (C) supplemental set-aside authority;
            (D) deficiency and land diversion payments;
            (E) oilseed loans and payments, sugar price support 
        and honey price support; and
            (F) advance announcement of price support levels.
      Section 109(c) suspends certain quota provisions for 
wheat and corn.
      The Conference substitute adopts the Senate provision 
with technical amendments and an amendment that dairy price 
support under the 1938 Agriculture Adjustment Act shall be 
suspended through December 31, 2002. The Managers intend for 
USDA to provide for an orderly termination of the Emergency 
Livestock Feed Program so that livestock producers within a 
county are treated consistently. For a period not to exceed 
thirty days after enactment of this bill, USDA should accept 
livestock producers' applications for assistance under this 
program in counties where producers have already been approved 
for 1996 Livestock Feed Program assistance prior to the date of 
enactment. (Section 171)
(71) Effect of amendments
      The House bill, in Section 110 provides that the 
amendments made by this Act shall not affect the authority of 
the Secretary to carry out the 1991 through 1995 production 
adjustment programs in effect before this Act.
      The Senate amendment contains an identical provision.
      The Conference substitute adopts the Senate provision. 
(Section 172)
      The Managers intend that the Secretary shall seek to 
reduce paperwork and regulatory burdens of producers. 
Therefore, the Managers intend that in conducting year-end 
reviews the Secretary shall take into consideration information 
and recommendations provided by state and local Farm Service 
Agency Committees in order to reduce the number of unnecessary 
year-end reviews.

     Subtitle G--Commission on 21st Century Production Agriculture

(72) Commission on 21st century production agriculture
      The House bill, in title VI, establishes a commission to 
be known as the ``Commission on 21st Century Production 
Agriculture.''
            Section 502--Composition
      Subsection (a). Membership and appointment.
      Subsection (a) of this section requires that the 
Commission be composed of eleven members: three members 
appointed by the President; four members appointed by the 
Chairman of the Committee on Agriculture of the House of 
Representatives (in consultation with the ranking minority 
member); and four members appointed by the Chairman of the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
(in consultation with the ranking minority member).
      Subsection (b). Qualifications.
      Subsection (b) establishes the qualifications required of 
the persons appointed to the Commission. At least one member 
appointed by each the President, the Chairman of Committee on 
Agriculture of the House of Representatives, and the Chairman 
of the Committee on Agriculture, Nutrition, and Forestry of the 
Senate shall be an individual who is primarily involved in 
production agriculture. All other members appointed to the 
Commission must have knowledge and experience in agriculture 
production, marketing, finance, or trade.
      Subsection (c). Term of members; vacancies.
      Subsection (c) requires that the appointment to the 
Commission be for the life of the Commission. It also directs 
that a vacancy on the Commission shall not affect the 
Commission's power and shall be filled in the same manner as 
the original appointment.
      Subsection (d). Time for appointment; first meeting.
      Subsection (d) requires that the members of the 
Commission be appointed no later than October 1, 1997 and that 
the Commission convene its first meeting 30 days after six 
members of the Commission have been appointed.
      Subsection (e). Chairman.
      Subsection (e) requires that the chairman of the 
Commission be designated jointly by the Chairman of the 
Committee on Agriculture of the House of Representatives and 
the Chairman of the Committee on Agriculture, Nutrition, and 
Forestry of the Senate from among the members of the 
Commission.
            Section 503--Comprehensive review of past and future of 
                    production agriculture
      Subsection (a). Initial review.
      Subsection (a) of this section requires the Commission to 
conduct a comprehensive review of changes in the condition of 
production agriculture in the United States subsequent to the 
date of enactment of this Act and the extent to which such 
changes are the result of the changes made by this Act. This 
review shall include: (1) the assessment of the initial success 
of market transition contracts in supporting the economic 
viability of farming in the United States; (2) the assessment 
of the food security situation in the United States in the 
areas of trade, consumer prices, international competitiveness 
of United States production agriculture, food supplies, and 
humanitarian relief; (3) an assessment of the changes in farm 
land values and agricultural producer incomes; (4) an 
assessment of the regulatory relief for agricultural producers 
that has been enacted and implemented, including the 
application of cost/benefit principles in the issuance of 
agricultural regulations; (5) an assessment of the tax relief 
for agricultural producers that has been enacted in the form of 
capital gains tax reductions, estate tax exemptions, and 
mechanisms to average tax loads over high and low-income years; 
(6) an assessment of the effect of any Government interference 
in agricultural export markets, such as the imposition of trade 
embargoes, and the degree of implementation and success of 
international trade agreements; and (7) the assessment of the 
likely effect of the sale, lease, or transfer of farm poundage 
quota for peanuts across State lines.
      Subsection (b). Subsequent review.
      Subsection (b) requires the Commission to conduct a 
comprehensive review of the future of production agriculture in 
the United States and the appropriate role of the Federal 
Government in support of production agriculture. This review 
shall include: (1) an assessment of changes in the condition of 
production agriculture in the United States since the initial 
review under subsection (a); (2) an identification of the 
appropriate future relationship of the Federal Government with 
production agriculture after 2002; and (3) an assessment of the 
manpower and infrastructure requirements of the Department of 
Agriculture necessary to support the future relationship of the 
Federal Government with production agriculture.
      Subsection (c). Recommendations.
      Subsection (c) requires that the Commission develop 
specific recommendations for legislation to achieve the 
appropriate future relationship of the Federal Government with 
production agriculture identified under subsection (a)(2).
            Section 504--Reports.
      Subsection (a). Report on initial review.
      Subsection (a) of this section requires that by June 1, 
1998, the Commission submit a report containing the results of 
the initial review to the President, the Committee on 
Agriculture of the House of Representatives, and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate.
      Subsection (b). Report on subsequent review.
      Subsection (b) requires that not later than January 1, 
2001, the Commission submit a report containing the results of 
the subsequent review conducted under section 1503(b) to the 
President, the Committee on Agriculture of the House of 
Representatives, and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate.
            Section 506--Powers
      Subsection (a). Hearings.
      Subsection (a) of this section authorizes the Commission 
to conduct hearings, take testimony, receive evidence, and act 
in a manner the Commission considers appropriate to carry out 
the purposes of this Act.
      Subsection (b). Assistance from other agencies.
      Subsection (b) authorizes the Commission to secure 
directly from any department or agency of the Federal 
Government any information necessary to carry out its duties 
under this title. The head of such department or agency shall 
furnish information requested by the chairman of the 
Commission, to the extent permitted by law.
      Subsection (c). Mail.
      Subsection (c) authorizes the Commission to use the 
United States mails in the same manner and under the same 
conditions as the departments and agencies of the Federal 
Government.
      Subsection (d). Assistance from Secretary.
      Subsection (d) requires that the Secretary of Agriculture 
shall provide appropriate office space and reasonable 
administrative and support services available to the 
Commission.
            Section 506--Commission procedures
      Subsection (a). Meetings.
      Subsection (a) of this section requires that the 
Commission meet on a regular basis. The frequency of such 
meeting shall be determined by the chairman or a majority of 
its members. Additionally, the Commission must meet upon the 
call of the chairman or a majority of the members.
      Subsection (b). Quorum.
      Subsection (b) provides that a majority of the members of 
the Commission must be present to produce a quorum for 
transacting the business of the Commission.
            Section 507--Personnel matters
      Subsection (a). Compensation.
      Subsection (a) of this section provides that members of 
the Commission serve without compensation, but are allowed 
travel expenses when engaged in the performance of Commission 
duties, including a per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code.
      Subsection (b). Staff.
      Subsection (b) provides that the Commission shall appoint 
a staff director. The staff director's basic rate of pay shall 
not exceed that rate provided for under section 5376 of title 
5, United States Code. The Commission may appoint such 
professional and clerical personnel as may be reasonable and 
necessary to enable the Commission to carry out its duties 
without regard to the provisions governing appointments in the 
competitive service, title 5, United States Code, and 
provisions relating to the number, classification, and General 
Schedule rates in chapter 51 and subchapter III of chapter 53 
of title 5 or any other provision of law. No employee appointed 
by the Commission (other than the staff director) may be 
compensated at a rate exceeding the maximum rate applicable to 
level 15 of the General Schedule.
      Subsection (c). Detailed personnel.
      Subsection (c) authorizes the head of any department or 
agency of the Federal Government to detail, without 
reimbursement, any personnel of such department or agency to 
the Commission to assist the Commission in carrying out its 
duties. The detail of any such personnel may not result in the 
interruption or loss of civil service status or privilege of 
such personnel.
            Section 508--Termination of Commission
      This section provides that the Commission shall terminate 
upon the issuance of its final report required by section 1504.
      The Senate amendment contains no similar provision.
      The Conference substitute adopts the House provision with 
an amendment directing the Commission to make an assessment of 
economic risk to producers. (Subtitle G)

             Subtitle H--Miscellaneous Commodity Provisions

(73) Options Pilot Program
      The House bill extends the Options Pilot Program Act of 
1990 through crop year 2002. (Section 506)
      The Senate amendment establishes an Options Pilot Program 
and Risk Management Education program. The purpose is to 
authorize the Secretary to conduct research through pilot 
programs for one or more program commodities to ascertain 
whether futures and options contracts can provide producers 
with reasonable protection from the financial risks of 
fluctuations in price, yield, and income inherent in the 
production and marketing of agricultural commodities; and 
provide education in the management of the financial risks 
inherent in the production and marketing of agricultural 
commodities. (Subtitle B)
      The Conference substitute adopts the Senate amendment 
with an amendment requiring consultation with the CFTC in risk 
management education. The Managers intend that the Options 
Pilot Program should be administered by the Office of Risk 
Management. (Section 191 and 192)
(74) Single delivery of catastrophic crop insurance
      The House bill, amends section 508(b)(4) of the Federal 
Crop Insurance Act to provide that the Secretary may only 
continue to offer catastrophic risk protection through local 
USDA offices if the Secretary determines that the number of 
approved insurance providers operating in a State (or a portion 
of a State) is insufficient to adequately provide catastrophic 
risk protection coverage to producers. If coverage availability 
in a State is adequate, only approved insurance providers may 
provide coverage. (Section 501(a))
      The Senate amendment contains an identical provision. 
(Section 502(a))
      The Conference substitute adopts the House provision with 
an amendment requiring USDA to phase in single delivery of 
catastrophic coverage unless the Secretary determines that the 
number of private insurers in a State is insufficient. The 
Secretary must announce the results of such determinations 
within 90 days following enactment of this section for 1997 
crops. The Secretary shall announce the determinations for 
subsequent crop years by each April 30 of the year previous to 
the year in which the crop is produced, or at such other times 
during the year as the Secretary finds practicable in 
consultation with the affected insurance industry, for those 
states or areas of states where catastrophic coverage remains 
available through local offices of the Department.
      In considering the number of approved insurance providers 
operating in a State (or portion thereof) the Secretary may 
consider only those private agents who are actively providing 
catastrophic coverage and are reasonably accessible to 
producers. The Secretary shall also consider agents who are 
going to begin offering catastrophic coverage in the crop year 
in response to this legislation.
      In making such determinations, the Secretary may also 
consider the willingness of reinsured companies to accept the 
responsibility for providing and servicing catastrophic 
coverage on an increased scale in an economical manner without 
added levels of subsidy or federal government, and to assure 
that agents will be made available in a convenient manner to 
all producers who desire service. (Section 193(a))
(75) Ending mandatory purchase of catastrophic crop insurance
      The House bill provides that, effective with spring-
planted 1996 crops, catastrophic coverage is not required for 
federal farm program benefits if producers sign a written 
waiver with the Secretary that waives any eligibility for 
emergency crop loss assistance. (Section 501(a))
      The Senate amendment contains an identical provision. 
(Section 502(a))
       The Conference substitute adopts the House provision 
with an amendment. The amendment authorizes the Secretary to 
have discretion to apply the provision for a written waiver to 
all other 1996 crops. The amendment also provides that, for the 
1996 crop year only, producers shall be able to obtain 
catastrophic risk protection insurance for any spring planted 
crop, and limited or additional coverage for malting barley 
under the Malting Barley Price and Quality Endorsement, for a 
period of at least two but less than four weeks after the date 
of enactment of this Act. Waivers: A waiver under this 
provision may be provided by the producer at any time up until 
the time that the producer applies for the respective farm 
program, or other benefit, or the acreage reporting date. The 
Secretary may permit that waivers may be generic in nature, so 
that a producer can sign a single waiver applying to all crops 
which he or she produces and for which Federal crop insurance 
has not been obtained or may not be obtained in the future. A 
waiver under this provision shall not waive a farmer's 
eligibility to receive an emergency loan. (Section 193(a))
(76) Transfer
      The House bill transfers all catastrophic policies 
written by USDA to private insurance companies for the 
performance of all sales, service, and loss adjustment 
functions to the extent that the Secretary determines that 
catastrophic risk protection by approved insurance providers is 
sufficiently available in a State. Any fees in connection with 
such policies that are not yet collected at time of transfer 
shall be payable to the private insurance providers. (Section 
501(a))
       The Senate amendment contains a similar transfer 
provision. (Section 502(a))
       The Conference substitute adopts the House provision 
with an amendment delaying transfers of all catastrophic 
policies written by USDA to private insurance companies until 
the 1997 crop year. The transfer process for 1997 crops with 
sales closing dates before January 1, 1997 shall begin at the 
time of the Secretary's announcement under subsection (a) and 
be completed by a sales closing date for the crop and county. 
The transfer process for all subsequent policies including crop 
years after 1997 shall begin at a date that permits the process 
to be completed not later than 30 days prior to the applicable 
sales closing date. After 1997, the transfer must be completed 
not later than 45 days prior to the sales closing date.
      This provision requires that, beginning with crop year 
1997, in those States (or portions thereof) where the Secretary 
has determined not to continue to provide catastrophic coverage 
through local offices of the Farm Service Agency, the Secretary 
is expected to transfer all existing catastrophic policies 
written by USDA offices to private insurance providers. This 
transfer is expected to occur in an orderly manner under 
procedures determined by the Secretary and developed in 
consultation with private insurance providers. These procedures 
should be designed to assure fairness among insurance providers 
and will take into consideration the needs and preferences of 
affected producers. (Section 193(a))
(77) Seed crops
      The House bill amends section 519(a)(2)(B) of the Federal 
Crop Insurance Act to specify that seed crops are eligible for 
coverage under the Noninsured Assistance Program. (Section 
501(b))
      The Senate amendment, contains an identical provision. 
(Section 502(b))
      The Conference substitute adopts the Senate amendment 
(Section 193(b)).
(78) Aquaculture
      The Senate amendment amends section 508(a)(6) of the 
Federal Crop Insurance Act to extend crop insurance coverage to 
aquaculture. (Section 502(d))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to include ornamental fish as aquaculture in 
the Noninsured Assistance Program (Section 193(c))
(79) Pilot projects on insect infestation or disease and feasibility 
        for nursery crops
      The Senate amendment requires the Secretary of 
Agriculture to develop and administer a two year pilot project 
for crop insurance coverage that indemnifies crop losses due to 
insect infestation or disease. The Secretary is required to 
administer the pilot project so that it is actuarially sound 
and results in no net cost to the U.S. Treasury. The Senate 
amendment also requires a limited pilot program on the 
feasibility of insuring nursery crops within two years of 
enactment. (Section 502(c) and 502(d))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment. 
The Managers agree to inclusion of Senate provisions directing 
the Secretary to develop and administer pilot projects: (1) for 
crop insurance coverage that indemnifies crop losses due to 
natural disasters such as insect infestation or disease and (2) 
on the feasibility of insuring nursery crops. The conferees 
intend that to the maximum extent practicable the pilot 
projects be operated to cover diverse geographic areas so that 
the full impact of such coverage can be adequately evaluated. 
(Section 193(d) and 193(e))
(80) Planting requirement
      The Senate amendment amends section 508(j) of the Federal 
Crop Insurance Act to require the Corporation to consider 
marketing windows in determining whether it is feasible to 
require planting during a crop year. (Section 502 (e))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
(Section 193(f)) and 3 amendments. The first amendment provides 
mandatory funding in fiscal year 1997 for the sales commissions 
of crop insurance agents (Section 193(g)). The second amendment 
transfers mandatory funding for the Noninsured Assistance 
Program (NAP) from the Federal Crop Insurance Corporation Fund 
to the Commodity Credit Corporation (Section 193(g)). The third 
amendment changes the Noninsured Assistance Program (NAP) by 
providing the Commodity Credit Corporation with more 
flexibility in determining the requirements for producers to 
provide records of crop acreage, yields, and production 
(Section 193(h)).
(81) Section 504. Establishment of Office of Risk Management
      The House provision amends Department of Agriculture 
Reorganization Act of 1994 by establishing an independent 
Office of Risk Management (ORM). This office shall have 
jurisdiction over FCIC, and any pilot or other program 
involving revenue insurance, risk management savings accounts 
or use of future markets to manage risk. The salaries and 
expense account of the FSA shall be available to fund operation 
of this office in fiscal year 1996. (Section 504)
      The Senate contains no comparable provision.
      The Conference substitute adopts the House provision 
(Section 194).
(82) Revenue insurance
      The Senate amendment amends section 508(h) of the Federal 
Crop Insurance Act to establish a revenue insurance pilot 
program in a limited number of counties for producers of corn, 
wheat, or soybeans for the 1997-2000 crop years. Revenue 
insurance policies are to be offered through reinsurance 
arrangements with private insurance companies in a manner that 
is actuarially sound with premiums and administrative fees to 
be paid by insured producers. The minimum level of revenue 
coverage must be an alternative to catastrophic crop insurance. 
(Section 503)
      The House bill requires the Secretary to establish a 
business interruption insurance program. Under this program, 
the producer of a contract commodity could obtain revenue 
insurance. (Section 505)
      The Conference substitute adopts the Senate provision 
with 2 amendments. The first amendment allows the revenue 
insurance pilot program to be established for feedgrains, 
wheat, soybeans, or such other commodities as determined by the 
Secretary (Section 195). The second amendment moves Noninsured 
Assistance Program(NAP) out of the Federal Crop Insurance Act. 
The Managers intend that the NAP continue to be administered by 
USDA's Farm Service Agency. Because many NAP crops will over 
time be covered by the insurance program, it is expected that 
the Under Secretary for Farm and Foreign Agricultural Services, 
who will have supervision over both ORM and FSA, should assure 
that coordination exists between these two agencies in the 
administration of the NAP. The Managers intend that the 
Secretary in administering the NAP through the FSA will 
coordinate, to the maximum extent practicable, various terms 
and conditions used in administering both the NAP and the 
Federal Crop Insurance Program. The Managers expect, to the 
extent practicable, that the Department will build upon 
information obtained from the NAP in extending coverage to non-
insured crops. (Section 196)

                      Title II--Agricultural Trade

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

(1) Food aid to developing countries
      The House bill relocates a Sense of Congress resolution 
on the importance of food aid from section 411 of the Uruguay 
Round Agreements Act to section 3 of the Agricultural Trade 
Development and Assistance Act of 1954 (P.L. 480) to replace an 
obsolete sense of Congress. (Section 411)
      The Senate amendment has a similar provision with a 
technical difference. (Section 201)
      The Conference substitute adopts the House provision. 
(Section 201)
(2) Trade and development assistance
      The House bill amends section 101 of P.L. 480 to 
authorize the Secretary to enter into Title I concessional 
credit agreements with private entities as well as foreign 
governments. Such private entities may be U.S.-based or 
indigenous non-profit or for-profit concerns. (Section 412)
      The Senate amendment is identical. (Section 202)
      The Conference substitute adopts the Senate amendment. 
(Section 202)
(3) Agreements regarding eligible countries and private entities
      The House bill amends section 102 of P.L. 480 by deleting 
subsection (a), which defines developing countries in terms of 
foreign exchange earnings, and reordering the priorities for 
providing food assistance to increase the emphasis on market 
development.
      The House bill provides that Section 102 of P.L. 480 is 
amended to allow agricultural trade organizations (ATOs) to 
carry out market development plans in connection with Title I 
agreements. The Secretary is directed to give priority to those 
agreements with developing countries and agricultural trade 
organizations that include a market and economic development 
component. (Section 413)
      The Senate amendment contains a similar provision, except 
for a technical difference in section 102(c)(2). (Section 203)
      The Conference substitute adopts the House provision with 
an amendment that gives the Secretary the discretion to 
reimburse agricultural trade organizations for administrative 
expenses incurred in carrying out market development plans 
under Title I. (Section 203)
(4) Terms and Conditions of Sales
      The House bill amends Section 103 of P.L. 480:
            (1) to include references to private entities;
            (2) to allow for a repayment period with respect to 
        Title I agreements of less than ten years in Title I 
        agreements; and
            (3) to reduce to five years the maximum ``grace'' 
        period during which the Secretary is allowed to defer 
        repayments. (Section 414)
      The Senate amendment is identical. (Section 103)
      The Conference substitute adopts the Senate amendment. 
(Section 204)
            (5) Use of local currency payment
      The House bill amends Section 104 of P.L. 480 to include 
private entities as eligible to use local currencies. (Section 
415)
      The Senate amendment is identical. (Section 104)
      The Conference substitute adopts the House provision. 
(Section 205)
(6) Value-added foods
      The Senate amendment repeals an unused provision that 
allows for a partial waiver of repayment under title I(section 
105 of P.L. 480). (Section 206)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 206)
(7) Eligible organizations
      The House bill amends Section 202(b) of P.L. 480 to 
prohibit the Administrator of the Agency for International 
Development (AID) from denying a request for commodities under 
Title II by PVOs or other eligible organizations to carry out a 
program merely because AID does not maintain a mission in the 
country in which the program will be carried out.
      The House bill also amends Section 202(e) of P.L. 480:
            (1) by increasing from $13.5 million to $28 million 
        the portion of Title II appropriations that may be used 
        to pay transportation, distribution and other costs of 
        eligible organizations;
            (2) by making intergovernmental organizations 
        (e.g., the World Food Program) eligible for such funds.
      The Senate amendment is similar except that it requires 
private voluntary organizations and cooperatives to submit 
requests for funds. (Section 207)
      The Conference adopts the Senate amendment with a 
technical change requiring that eligible organizations submit 
requests for funds. (Section 207)
(8) Generation and use of foreign currencies
      The House bill amends Section 203 of P.L. 480 to allow 
local-currency proceeds from Title II commodity sales to be 
used in a country different from the one in which the 
commodities were sold, as long as it is in the same geographic 
region where sales in the targeted country would be 
impracticable. The section also increases from ten percent to 
fifteen percent the minimum amount of non-emergency Title II 
commodities that the Administrator must allow to be sold for 
local currencies. (Section 417)
      The Senate amendment is identical. (Section 208)
      The Conference substitute adopts the House provision. 
(Section 208)
(9) General levels of assistance under P.L. 480
      The House bill amends Section 204(a) of P.L. 480 to 
extend through 2002 the 1995 minimum tonnage levels for both 
overall assistance and non-emergency assistance under Title II. 
The House bill also provides that AID is prohibited from 
waiving the non-emergency minimum tonnage requirement before 
the beginning of a fiscal year. (Section 418)
      The Senate amendment is identical. (Section 209)
      The Conference substitute adopts the House provision with 
an amendment requiring that at least 50 percent of bagged 
commodities programmed under Title II be bagged in the U.S. 
(Section 209)
(10) Food aid consultative group
      The House bill amends section 205 of P.L. 480 to extend 
an existing consultative group on food aid through 2002; to 
require that the group meet at least twice per year; and to 
require that an agricultural producer be a member of the group. 
Agricultural trade organizations are also made eligible for 
participation. (Section 419)
      The Senate amendment is identical. (Section 210)
      The Conference substitute adopts the Senate amendment. 
(Section 210)
(11) Support of nongovernmental organizations
      The House bill amends Section 306(b) of P.L. 480 to allow 
the ten percent of local currency proceeds set aside for use in 
the recipient country for rural development, education and 
other purposes to be used for the same purposes by 
nongovernmental organizations that are not indigenous. A 
conforming amendment is made in the definition of 
nongovernmental organization in Section 402(6) of P.L. 480. 
(Section 420)
      The Senate amendment is identical. (Section 211)
      The Conference substitute adopts the House provision. 
(Section 211)
(12) Commodity determinations
      The House bill amends Section 401 of P.L. 480 to simplify 
the process by which the Secretary determines which commodities 
are eligible for P.L. 480 (the docket authority), while 
retaining the same basic standards for commodity eligibility as 
at present. The formal requirements for a determination of 
commodity availability are eliminated. (Section 421)
      The Senate amendment is identical. (Section 212)
      The Conference substitute adopts the Senate amendment. 
(Section 212)
(13) General provisions
      The House bill amends Section 403 of P.L. 480 to delete 
requirements for the U.S. to consult with several specific 
international organizations. (Section 422)
      The Senate amendment is identical. (Section 213)
      The Conference substitute adopts the House provision. 
(Section 213)
(14) Agreements
      The House bill amends Section 404 of P.L. 480 to make 
several conforming changes and to clarify that an existing 
authority for multi-year agreements under Titles I and III is 
discretionary, but mandatory for Title II. (Section 423)
      The Senate amendment is identical. (Section 214)
      The Conference substitute adopts the Senate amendment. 
(Section 214)
(15) Use of Commodity Credit Corporation
      The Senate amendment amends Section 406 of P.L. 480 to 
make technical changes to administrative provisions of P.L. 480 
and to make conforming changes. (Section 215)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 215)
(16) Administrative provisions
      The House bill makes technical changes to Section 407 of 
P.L. 480. The Secretary and the Administrator are also given 
discretion in setting the terms for freight contracts under 
Title I and Titles II and III, respectively, as under current 
practice. Additional conforming changes are made and two 
required annual reports are combined. (Section 424)
      The Senate amendment is identical. (Section 216)
      The Conference substitute adopts the House provision with 
a grammatical correction. (Section 216)
(17) Expiration date
      The House bill amends Section 408 of P.L. 480 to extend 
authority to enter into agreements for P.L. 480 programs 
through 2002. (Section 425)
      The Senate amendment is identical. (Section 217)
      The Conference substitute adopts the Senate amendment. 
(Section 217)
(18) Regulations
      The House bill repeals Section 409 of P.L. 480, which 
required regulations to be issued following enactment of the 
1990 farm bill. (Section 426)
      The Senate amendment is identical. (Section 218)
      The Conference substitute adopts the House provision. 
(Section 218)
(19) Independent evaluation of programs
      The House bill repeals Section 410 of P.L. 480, which 
required General Accounting Office evaluations of P.L. 480 that 
have been completed. (Section 427)
      The Senate amendment is identical. (Section 219)
      The Conference substitute adopts the Senate amendment. 
(Section 219)
(20) Authorization of appropriations
      The House bill deletes Section 412(b) of P.L. 480 and 
eliminates a requirement that each of Titles I and III funds be 
at least forty percent of the combined funding for Titles I and 
III. Subsection (c) is amended to allow up to fifteen percent 
of the funds available in any fiscal year for any title of P.L. 
480 to be used for any other title and to allow unlimited 
transfers of funds from Title III to Title II. The House bill 
provides that all of Title I transfer authority must be 
exhausted before use of the waiver authority is allowed. 
(Section 428)
      The Senate amendment is similar. (Section 220)
      The Conference substitute adopts the Senate provision 
with an amendment that limits transfers from P.L. 480 Title III 
funding to fifty percent. The Managers intend that USAID will 
not routinely waive Title II non-emergency minimum tonnage 
levels, but will operate this waiver authority only in 
exceptional circumstances. The responsible Congressional 
committees should be consulted prior to USAID exercising waiver 
authority. (Section 220)
(21) Coordination of foreign assistance programs
      The House bill amends Section 413 of P.L. 480 to clarify 
that a requirement for coordination with U.S. development 
assistance policies applies only to Title III. (Section 429)
      The Senate amendment is identical. (Section 413)
      The Conference substitute adopts the House provision. 
(Section 221)
(22) Micronutrient Fortification Pilot Program
      The Senate amendment requires the establishment of a 
pilot program by the end of 1997 to fortify grains made 
available under P.L. 480 with micronutrients such as Vitamin A 
or iron. The purpose of the pilot program is to assist 
developing countries in correcting micronutrient deficiencies 
and to encourage development of technologies for fortification 
of grains and other commodities. The Secretary is directed to 
select not more than 5 developing countries to participate in 
the program. The authority for the pilot program expires in 
2002. (Section 222)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment providing that the program be carried out if 
practical technology exists and it is cost effective. (Section 
222)
(23) Use of certain local currency
      The House bill adds a new section to Title IV of P.L. 480 
to expressly permit the Secretary to use local currency 
proceeds collected under agreements entered into prior to the 
Food, Agriculture Conservation Act of 1990 consistent with the 
law as in effect at the time the agreements were entered into. 
(Section 430)
      The Senate amendment is identical. (Section 416)
      The Conference substitute adopts the House provision. 
(Section 223)
(24) Farmer-to-Farmer Program
      The House bill amends Section 501 of P.L. 480 to increase 
the minimum percentage of the P.L. 480 funding available for 
the Farmer-to-Farmer program from .2 percent to .4 percent and 
extends Farmer-to-Farmer to emerging markets. The authorization 
for the program is extended through fiscal year 2002. (Section 
431)
      The Senate amendment allows for the travel of foreign 
farmers and other professionals to the United States. (Section 
224)
      The Conference substitute adopts the House provision with 
an amendment allowing for the use of local currencies generated 
through P.L. 480, Section 416 and Food for Progress to meet the 
costs of the Farmer-to-Farmer program. (Section 224)
(25) Food Security Commodity Reserve
      The House bill amends title III of the Agricultural Act 
of 1980 by:
            (1) converting the Food Security Wheat Reserve to 
        the Food Security Commodity Reserve;
            (2) changing the short title to ``Food Security 
        Commodity Reserve Act of 1996'';
            (3) making corn, sorghum, and rice eligible 
        commodities for the reserve;
            (4) establishing a four million metric ton cap on 
        the reserve;
            (5) making the reserve consist of: (a) wheat in the 
        reserve as of the date of enactment of the Act; (b) 
        wheat, rice, corn, and sorghum acquired through the 
        exchange of an equivalent value of wheat in the reserve 
        for those commodities;
            (6) providing that the reserve may be replenished 
        through purchases or by designation of commodities 
        owned by the Commodity Credit Corporation
            (7) providing for the release of up to 500,000 
        metric tons per year if the Secretary determines that 
        inadequate amounts of commodities are available for 
        emergency assistance under Title II of P.L. 480 (plus, 
        any commodities that could have been released but were 
        not released in prior fiscal years);
            (8) providing that the authority to replenish the 
        reserve expires at the end of fiscal year 2002. 
        (Section 432)
      The Senate amendment is similar to the House bill on the 
establishment and replenishment of the reserve. The Senate 
amendment provides that the Secretary may release eligible 
commodities from the reserve for emergency food assistance to 
developing countries when quantities of eligible commodities 
are so limited that eligible commodities cannot be made 
available for disposition. Additionally up to one million 
metric tons may be released annually from the reserve for 
urgent humanitarian relief under Title II of P.L. 480, if the 
Secretary certifies than funds made available to carry out P.L. 
480 are not reduced from the prior year. The term ``cannot be 
made available under the normal means'' does not require the 
waiver of the sub-minimum requirements under Title II of P.L. 
480 before the commodities can be released from the reserve in 
any fiscal year.
      The Conference substitute adopts the Senate provision 
with an amendment providing that in order to meet unanticipated 
need for emergency assistance under section 202(a) of P.L. 480, 
the Secretary may release up to 500,000 metric tons of 
commodities and up to 500,000 metric tons of eligible 
commodities that could have been released but were not released 
in prior fiscal years.
      Although the conference report contains the language from 
the Senate bill permitting release of commodities from the 
reserve in the case of limited domestic supply, the primary 
purpose of the reserve is to supply commodities for urgent 
humanitarian needs in addition to assistance made available 
under Titles I, II and III of P.L. 480. The intent is for the 
commodities in the reserve to be available when the 475,000 
metric tons of commodities in the Title II unallocated reserve 
is not adequate to meet emergency needs and in the case of 
limited domestic supply of commodities. (Section 225)
(26) Protein byproducts derived from alcohol fuel production
      The Senate amendment repeals an obsolete provision 
(section 1208 of the Agriculture and Food Act of 1981) 
requiring an investigation and report on the use of protein 
byproducts in aid programs. (Section 226)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 226)
(27) Food for Progress Program
      The House bill amends The Food for Progress Act of 1985:
            (1) to eliminate an obsolete provision exempting 
        commodities furnished to the former Soviet Union from 
        the annual tonnage limitation during 1993;
            (2) to make intergovernmental organizations 
        eligible for the program;
            (3) to allow the Commodity Credit Corporation to 
        make sales on credit terms under this program to 
        countries other than the former Soviet Union;
            (4) to extend authority for the Food for Progress 
        program through fiscal year 2002;
            (5) to make multi-year agreements discretionary 
        rather than mandatory;
            (6) to permit technical assistance to be provided 
        to agricultural trade organizations, private voluntary 
        organizations, and intergovernmental organizations for 
        monetization programs; and
            (7) to make several conforming amendments. (Section 
        433)
       The Senate amendment is identical. (Section 226)
      The Conference substitute adopts the Senate amendment. 
(Section 227)
(28) Use of foreign currency proceeds from export sales financing
      The Senate amendment repeals an obsolete provision 
(section 402 of the Mutual Security Act of 1954) dealing with 
appropriations during 1961. (Section 228)
      The House bill has no comparable provision.
      The Conference adopts the Senate amendment. (Section 228)
(29) Stimulation of foreign production
      The Senate amendment repeals an unused provision of law 
(section 7 of the Act of December 30, 1947) providing authority 
to stimulate foreign production through donations and similar 
actions. (Section 229)
            The House has no similar provision.
            The Conference substitute adopts the Senate 
        amendment. (Section 229)

      Subtitle B--Amendments to the Agricultural Trade Act of 1978

(30) Agricultural export promotion strategy
      The House bill amends Section 103 of the Agricultural 
Trade Act of 1978 as follows:
      Subsection (a) requires the Secretary to develop a 
strategy for implementing agricultural export programs.
      Subsection (b) states that the strategy shall encourage 
the maintenance, development, and expansion of export markets, 
and places emphasis on high-value and value-added products.
      Subsection (c) establishes the following goals: (1) 
increasing to $60 billion annual agricultural exports by 2002; 
(2) raising U.S. world market share in 2002 significantly above 
the 1993-95 share; (3) increasing the U.S. share of world high-
value agricultural trade to twenty percent; (4) increasing U.S. 
agricultural exports at a faster rate than the rate of growth 
in world agricultural trade; (5) increasing U.S. exports of 
high-value products at a faster rate than the rate of growth in 
world exports; and (6) ensuring the implementation of Uruguay 
Round obligations that offer increased market opportunities for 
U.S. agriculture.
      Subsection (d) requires the Secretary to identify 
priority markets with respect to the export strategy and to 
identify the overseas offices of the Foreign Agricultural 
Service that provide assistance in those markets.
      Subsection (e) requires a report to Congress by December 
31, 2001 assessing progress in meeting the goals established.
      Subsection (f) prohibits the Secretary from carrying out 
export promotion programs under the Agricultural Trade Act of 
1978 if the Secretary determines that three or more of the 
preceding goals are not met.
      The Secretary is required to promote exports under 
authorities of the CCC Charter Act if the other authority is 
ended.
      The prior requirement for the Long-term Agricultural 
Trade Strategy Report is repealed. (Section 451)
      The Senate amendment is identical. (Section 241)
      The Conference substitute adopts the House provision with 
an amendment revising the strategy's goals and striking the 
sunset of export program authority if goals are unmet, while 
adding a Sense of Congress resolution calling on the House and 
Senate agriculture committees to conduct a thorough review of 
export promotion and food aid programs not later than 1998. 
(Section 241)
(31) Implementation of commitments under Uruguay Round agreements
      The House bill amends the Agricultural Trade Act of 1978 
to require the Secretary to monitor other countries' compliance 
with the Uruguay Round Agreements. If the Secretary determines 
an instance of non-compliance will significantly constrain U.S. 
exports, the Secretary is directed to recommend to the U.S. 
Trade Representative any appropriate action under U.S. laws and 
to notify relevant Congressional committees of the 
recommendation. (Section 271)
      The Senate amendment is identical. (Section 271)
      The Conference substitute adopts the Senate provision by 
amending the Agricultural Trade Act of 1978 and adds a 
provision to require the Secretary to evaluate compliance, 
monitor, take action and report on violations of sanitary and 
phytosanitary commitments. The managers intend that nothing in 
this section diminishes or alters the responsibilities of the 
Secretary of Agriculture under current law to assist exporters 
of U.S. agriculture products in the event of sanitary or 
phytosanitary disputes or to fulfill the responsibilities 
assigned to the Secretary regarding sanitary and phytosanitary 
measures. (Section 242)
(32) Export credits
      The House bill amends Section 202 of the Agricultural 
Trade Act of 1978:
            (1) to authorize credit guarantees under GSM-102 in 
        connection with a sale to a buyer in a foreign country 
        (supplier credits) on terms of not more than 180 days;
            (2) to list criteria that may be used by the 
        Secretary in deciding whether a country is creditworthy 
        for GSM-103 intermediate credit guarantees;
            (3) to allow credit guarantees to be used where the 
        bank issuing the underlying letter of credit is located 
        in a country other than the importing country;
            (4) to require that minimum amounts of credit 
        guarantees be available for processed and high-value 
        products: 25% in 1996 and 1997, 30% in 1998 and 1999, 
        and 35% thereafter, except that the minimum 
        requirements are not applicable if they would compel a 
        reduction in total commodity sales under the programs;
            (5) to extend current cumulative funding levels for 
        GSM-102 and GSM-103 but allow flexibility in how much 
        is made available for each program; and
            (6) to allow credit guarantees for high-value 
        products with at least 90% U.S. content by weight, 
        allowing for spices and other components that are 
        sometimes of foreign origin. (Section 452)
            The Senate amendment is identical. (Section 242)
            The Conference substitute adopts the Senate 
        provision with an amendment on origination fees for the 
        facilities financing program, technical changes in 
        definitions and technical modifications to the criteria 
        for determinations under intermediate export credit 
        guarantees. (Section 243)
(33) Market Promotion Program
      The House bill authorizes the Market Promotion Program 
expenditures at $100 million during fiscal years 1996-2002. 
(Section 401)
      The Senate amendment authorizes the Market Promotion 
Program expenditures at $70 million per year during FY 1996-
2002 and targets the program exclusively toward small 
businesses, farmer owned cooperatives and agricultural groups. 
(Section 243)
      The Conference substitute adopts the Senate provision 
with an amendment providing for annual funding of $90 million, 
adopting reform language patterned after the 1996 appropriation 
act, and changing the name to the Market Access Program.
      The amendment to the Market Access Program provides that 
funds may not be provided to foreign for-profit corporations 
not including U.S. subsidiaries, to fund their own campaigns to 
promote their foreign-produced products. The restriction on 
providing Market Access Program assistance under this section 
is not intended to prevent Market Access Program participants 
from carrying out normal business activities (including 
contracting for services) with respect to the conduct of 
overseas promotional activities for U.S. agricultural 
commodities and products of those commodities or from directly 
conducting promotional campaigns for U.S. agricultural 
commodities and products of those commodities. (Section 244)
(34) Export Enhancement Program
      The House bill caps Export Enhancement Program 
expenditures at $350 million in each of 1996 and 1997; $500 
million in 1998; $550 million in 1999; $579 million in 2000 and 
$478 million for each of 2001 and 2002. The House bill also 
requires priority funding from the Export Enhancement Program 
for wheat flour exports, consistent with the obligations 
required by the Uruguay Round agreement on agriculture, and in 
amounts sufficient to maintain the share of the world wheat 
flour market achieved by the U.S. during the 1986 to 1990 
period. (Section 402)
      The Senate amendment is identical on funding and 
authorization of the program, but does not contain a provision 
on priority funding for wheat flour. (Section 244)
      The Conference substitute adopts the House provision with 
an amendment to reduce funding for the Export Enhancement 
Program to $250 million in 1997 and by providing the Secretary 
with authority to make available not more than $100 million 
annually for the sale of intermediate products, so that the 
volume of export sales under this section is consistent with 
the volume of sales of intermediate agriculture products 
achieved by the United States in the 1986 to 1990 period.
      This section was made discretionary due to budgetary 
concerns arising from the provision in the House bill requiring 
Export Enhancement Program priority funding for wheat flour. 
Nevertheless, the Managers remain concerned that the 
Administration has not utilized its existing Export Enhancement 
Program assistance authorities appropriately. The Export 
Enhancement Program has not been used in fiscal year 1996 to 
export wheat flour similar to previous years, although the U.S. 
share of the world flour market has declined. The most recent 
wheat flour exports under the Export Enhancement Program were 
last made in August 1995. The Managers encourage the 
Administration to resume exporting customary quantities of 
flour through the Export Enhancement Program as soon as 
possible. Intermediate products are principally semi-processed 
products in the intermediate stage of the food chain such as 
wheat flour and vegetable oil.
      The Managers note that because of the current tight U.S. 
supplies of milling quality durum wheat and the importance of 
maintaining adequate supplies of durum available to the U.S. 
milling and pasta manufacturing industries, the Secretary is 
expected to continue to consider the stocks-to-use ratio before 
approving federal export subsidies for No. 1 and No. 2 Hard 
Amber Durum wheat. (Section 245)
(35) Export program and food assistance transfer authority
      The House bill allows funds for export subsidy programs 
that cannot be fully or effectively utilized to be used for 
other agricultural export or food assistance programs. (Section 
. . .)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the Senate amendment 
which deletes the House provision.
(36) Arrival certification
      The House bill amends Section 401 of the Agricultural 
Trade Act of 1978 to eliminate an unnecessary requirement for 
the Secretary to obtain certification from the exporter that 
there were no corrupt payments or similar practices. Such 
practices are already illegal under other laws. (Section 453)
      The Senate amendment is identical. (Section 245)
      The Conference substitute adopts the Senate amendment. 
(Section 246)
(37) Compliance
      The Senate provision amends Section 402 of the 
Agricultural Trade Act of 1978 to eliminate an existing 
authority for USDA to demand private firms' records that are 
unrelated to federal export program transactions. USDA's 
ability to examine program-related records is maintained. 
(Section 246)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 247)
(38) Regulations
      The House bill repeals an obsolete requirement (section 
404 of the Agricultural Trade Act of 1978) for the issuance of 
regulations. (Section 455)
      The Senate amendment is identical. (Section 247)
      The Conference substitute adopts the House provision. 
(Section 248)
(39) Trade Compensation and Assistance Program
      The Senate amendment requires that if a unilateral export 
embargo is imposed on any country in the future, and if no 
other country joins the U.S. sanctions within six months, the 
Secretary must increase Commodity Credit Corporation funding 
for food assistance and export promotion programs by an amount 
equal to ninety percent of the most recent three years' average 
agricultural exports to the embargoed country. The expanded 
assistance would be provided for the shorter of two years or 
the duration of the embargo. (Section 248)
      The House bill has no similar provision.
      The Conference substitute adopts the Senate amendment 
with an amendment to extend the length of embargo protection to 
three years. The amendment allows for either increased funding 
for food assistance and export promotion programs or direct 
payments to farmers in an amount equal to embargo caused price 
declines. The amendment also states that compensation will not 
be provided if a country with an ``agricultural economic 
interest'' joins the U.S. sanctions within ninety days, and 
makes an exception to the application of this section in case 
of war or armed hostilities. If the Secretary determines that 
increased funding for export or food assistance programs will 
provide the greatest compensatory benefit in cases of 
agricultural export embargoes, the Managers expect the 
Secretary to target such relief so that farmers affected by the 
embargo will receive relief.
      The Managers intend that for purposes of this section, 
``agricultural products'' shall have the same meaning as for 
purposes of the GSM-102 export credit guarantee program and 
similar authorities. (Section 249)
(40) Foreign Agricultural Service
      The House bill amends Section 503 of the Agricultural 
Trade Act of 1978 to change the basic mission areas of the 
Foreign Agricultural Service to reflect the 1993 merger of FAS 
with the Office of International Cooperation and Development. 
(Section 456)
      The Senate amendment is identical. (Section 249)
      The Conference substitute adopts the Senate amendment. 
(Section 250)
(41) Reports
      The House bill amends Section 603 of the Agricultural 
Trade Act of 1978 to state that the requirement for quarterly 
reports on U.S. export assistance is subject to existing 
authority for the Secretary to set priorities in deciding which 
reports to prepare. (Section 457)
      The Senate amendment is identical. (Section 250)
      The Conference substitute adopts the House provision. 
(Section 251)
(42) Foreign Market Development Cooperator Program
      The House bill authorizes the Foreign Market Development 
(FMD) cooperator program through 2002, provided that 
appropriated funds be used to assist in the carrying out of 
approved market development plans by the cooperators. (Section 
489)
      The Senate amendment is identical. (Section 273)
      The Conference substitute adopts the Senate amendment. 
The Conferees note that these provisions add to the more 
generally expressed authority for the Foreign Market 
Development cooperator program currently found in the 
Agricultural Act of 1954 and related provisions of law, and 
more importantly spell out that the Foreign Market Development 
cooperator program is to be carried out by the U.S. Department 
of Agriculture, in cooperation with eligible trade 
organizations, through multi-year contracts or agreements under 
which cost-share assistance is provided to such organizations. 
(Section 252)

                       Subtitle C--Miscellaneous

(43) Reporting requirements relating to tobacco
      The House bill repeals an existing reporting requirement 
for tobacco exports (Section 214 of the Tobacco Adjustment Act 
of 1983). (Section 471)
      The Senate amendment is identical. (Section 251)
      The Conference substitute adopts the Senate amendment. 
(Section 262)
(44) Triggered export enhancement
      The House bill repeals obsolete provisions for marketing 
loans and other export and farm program provisions that were 
conditioned on failure to achieve a Uruguay Round agreement by 
specified dates. The provisions expired with the 1995 crops. 
(Section 472)
      The Senate amendment is identical. (Section 252)
      The Conference substitute adopts the House provision. 
(Section 263)
(45) Disposition of commodities to prevent waste
      The House bill amends Section 416 of the Agricultural Act 
of 1949:
            (1) to allow Commodity Credit Corporation funds to 
        be used to cover administrative expenses of section 
        416(b) overseas donation programs;
            (2) to allow more flexibility in the length of time 
        within which monetized proceeds must be expended;
            (3) to eliminate a requirement for the Agency for 
        International Development to respond to a proposal by a 
        nonprofit or voluntary agency or cooperative within 
        certain deadlines;
            (4) to eliminate obsolete requirements for the 
        minimum amount of commodities to be made available in 
        1988, 1989, and 1990;
            (5) to eliminate redundant statement of authority 
        for the Secretary to dispose of surplus commodities 
        under 416(b) through title I of P.L. 480 or export 
        bonus or promotion programs; and
            (6) to eliminate an obsolete provision concerning 
        the Philippines. (Section 473)
      The Senate amendment is identical. (Section 253)
      The Conference substitute adopts the House provision with 
an amendment striking the authority to use CCC funds for 
administrative expenses but allowing private voluntary 
organizations and intergovernmental organizations to use 
monetized local currencies for administrative expenses. 
(Section 264)
(46) Direct sales of dairy products
      The Senate amendment repeals an unused provision for 
direct export sales of CCC-owned dairy products (Section 106 of 
the Food and Agriculture Act of 1981). Authority remains for 
such sales under the CCC Charter Act. (Section 254)
      The House bill has no similar provision.
      The Conference substitute adopts the House provision 
which deletes the Senate amendment.
(47) Export sales of dairy products
      The Senate amendment repeals unused provisions similar to 
those repealed by Section 304 above (section 1163 of the Food 
Security Act of 1985). (Section 255)
      The House bill has no similar provision.
      The Conference substitute adopts the House provision 
which deletes the Senate amendment.
(48) Debt-for-health-and-protection swap
      The House bill repeals authority for ``debt-for-health-
and-protection swaps'' that has never been funded by 
appropriations (section 1517 of the Food, Agriculture, 
Conservation, and Trade Act of 1990). (Section 474)
      The Senate amendment is identical. (Section 257)
      The Conference substitute adopts the House provision. 
(Section 265)
(49) Policy on expansion of international markets
      The House bill repeals an outdated statement of the sense 
of Congress concerning several trade policy issues that were 
current at the time of the 1981 farm bill (Section 1207 of the 
Food Act of 1981). (Section 475)
      The Senate amendment is identical. (Section 257)
      The Conference substitute adopts the House provision. 
(Section 266)
(50) Policy on maintenance and development of export markets
      The House bill amends an existing statement of U.S. 
agricultural trade policies (Section 1121 of the Food Security 
Act of 1985). The agricultural trade policy of the United 
States is declared: (1) to be the premier world supplier of 
agricultural products, (2) to support free and fair trade, (3) 
to negotiate further reductions in trade barriers, including 
sanitary and phytosanitary barriers, and (4) to aggressively 
counter unfair foreign trade practices. (Section 476)
      The Senate amendment is identical. (Section 258)
      The Conference substitute adopts the House provision. The 
Managers intend for the terms ``agriculture'' and ``food and 
fiber'' to include, but not be limited to, fiber and fiber 
products, and perennial turfgrass sod.(Section 267)
      The Managers also accepted an amendment establishing an 
agricultural export excellence award to be named the Edward R. 
Madigan United States Agricultural Export Excellence Award. The 
purpose of the award is to identify and reward efforts to 
develop and expand markets for United States agriculture 
exports throughout the development of new products and through 
the use of innovative marketing techniques. The categories for 
which awards are given are (1) development of new products or 
services; (2) development of new markets for agriculture; and 
(3) creative marketing of products or services in agriculture 
export markets.
      This section sets forth qualification criteria; 
establishes a selection board to make recommendations to the 
Secretary; and authorizes the Secretary to seek and accept 
gifts from public and private sources to carry out the award 
program established under this section.
      The award is named in honor of the late Edward R. 
Madigan, the former Secretary of Agriculture and Member of 
Congress who served on the Committee on Agriculture, in 
recognition of his service to United States agriculture and the 
promotion of U.S. agricultural export trade. The Managers 
believe that the award is a fitting tribute to the memory and 
legacy of a man whose dedication to the future of U.S. 
agriculture continues to inspire. (Section 261)
(51) Policy on trade liberalization
      The House bill repeals a statement of the sense of 
Congress from the 1985 farm bill that called for a new round of 
GATT negotiations (Section 1122 of the Food Security Act of 
1985). (Section 477)
      The Senate amendment is identical. (Section 259)
      The Conference substitute adopts the Senate amendment. 
The Managers note the importance of strong participation in 
international agricultural organizations particularly with 
regard to monitoring use of sanitary and phytosanitary barriers 
and technical barriers to trade. (Section 268)
(52) Agricultural trade negotiations
      The House bill amends Section 1123 of the Food Security 
Act of 1985 to establish goals for future agricultural trade 
negotiations, including further reductions in trade barriers, 
limitations on foreign production supports and the elimination 
of export subsidies, and disciplines on export monopolies. 
(Section 478)
      The Senate amendment is identical but for a technical 
difference. (Section 260)
      The Conference substitute adopts the House provision. 
(Section 269)
(53) Policy on unfair trade practices
      The House bill repeals a resolution from the 1985 farm 
bill that dealt with several U.S.-European disputes of the time 
(Section 1164 of the Food Security Act of 1985). (Section 479)
      The Senate amendment is identical. (Section 261)
      The Conference substitute adopts the Senate amendment. 
(Section 270)
(54) Agricultural aid and trade missions
      The House bill repeals a requirement for ``aid and trade 
missions'' which were concluded several years ago. (Section 
480)
      The Senate amendment is identical. (Section 262)
      The Conference substitute adopts the House provision. 
(Section 271)
(55) Annual reports by agricultural attaches
      The House bill deletes a requirement for reporting by 
agricultural attaches on fruits, vegetables, legumes, popcorn, 
and ducks (Section 108(b)(1)(B)). (Section 481)
      The Senate amendment is identical. (Section 263)
      The Conference substitute adopts the Senate amendment. 
(Section 272)
(56) World livestock market price information
      The House bill repeals a requirement for the development 
of international livestock price information that duplicates 
existing reporting by the Foreign Agricultural Service (Section 
1545 of the Food, Agriculture, Conservation, and Trade Act of 
1990). (Section 482)
      The Senate amendment is identical. (Section 264)
      The Conference substitute adopts the House provision. 
(Section 273)
(57) Orderly liquidation of stocks
      The House bill repeals an obsolete provision requiring 
the liquidation of stocks held by the Commodity Credit 
Corporation (Sections 201 and 207 of the Agricultural Act of 
1956). (Section 483)
      The Senate amendment is identical. (Section 265)
      The Conference substitute adopts the Senate amendment. 
(Section 274)
(58) Sales of extra-long staple cotton
      The House bill repeals an obsolete provision concerning 
the sale of stocks of extra-long staple cotton owned by the 
Commodity Credit Corporation in 1956 (Section 202 of the 
Agricultural Act of 1956). (Section 484)
      The Senate bill is identical. (Section 266)
      The Conference substitute adopts the House provision. 
(Section 275)
(59) Regulations
      The House bill eliminates an obsolete provision requiring 
the issuance of regulations (Section 707(d) of P.L. 102-511) 
for a direct credit sales program for the Former Soviet Union. 
(Section 485)
      The Senate amendment is identical. (Section 267)
      The Conference substitute adopts the Senate amendment. 
(Section 276)
(60) Emerging markets
      The House bill amends Section 1542 of the Food, 
Agriculture, Conservation and Trade Act of 1990 in Subsection 
(a) by:
            (1) revising an existing program of technical 
        assistance for emerging democracies, by re-targeting it 
        to ``emerging markets;''
            (2) amending subsection (f) to define ``emerging 
        market'' as a country that the Secretary determines is 
        taking steps toward a market-oriented economy and that 
        has the potential to provide a viable and significant 
        market for U.S. agricultural commodities;
            (3) amending subsection (a) to extend the program 
        through 2002 and during 1996-2002, requiring CCC to 
        make available at least $1 billion for credit 
        guarantees to emerging markets;
            (4) amending subsection (d) to add identification 
        of trade barriers to the list of activities that 
        technical experts should undertake under the program, 
        to give the Secretary more discretion in the use of 
        experts from the United States, to clarify that funds 
        that may be used to assist in the establishment of 
        extension services, to delete a requirement for an 
        annual report to Congress, to increase from $10 million 
        to $20 million the amount of CCC funds available for 
        the program, to provide for faculty exchanges, and to 
        eliminate unused authority for the establishment of an 
        agricultural fellowship program for students from 
        countries that are parties to the North American Free 
        Trade Agreement; and
            (5) amending subsection (e) to state that a 
        requirement for a report on foreign debt burdens is 
        subject to a limitation of the number of reports 
        required from the Department of Agriculture.
      The bill also amends Section 1543 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 in Subsection 
(b), which establishes the Cochran Fellowship Program by adding 
emerging markets to the list of types of countries that are 
eligible for the program. (Section 486)
      The Senate amendment is identical except for a technical 
difference. (Section 268)
      The Conference substitute adopts the House with an 
amendment striking the $10 million annual increase in funding.
      The Managers find that without a stable food supply, 
emerging markets are subject to economic instability. Further, 
the development of agriculture infrastructure and technologies, 
and agricultural training are critical needs in emerging 
markets to further growth in the agricultural sector.
      The Managers believe that the President may, where 
appropriate, utilize existing authorities to transfer 
agricultural technologies to, and conduct agricultural training 
for farmers and other agricultural professionals. In using 
these authorities, the President may consider applications by 
land-grant colleges that have a demonstrated ability to perform 
an educational program in emerging democracies. The Managers 
are further aware of an ongoing attempt to achieve these goals 
in Latvia, Estonia, and Lithuania by the University of 
Wisconsin-River Falls, and believe that this institution should 
be considered for such programs.
      The International Cooperation and Development (ICD) 
program area has a strong, positive role to play in the 
achievement of the Foreign Agriculture Service mission. Its 
contribution is illustrated in its work together with the 
Emerging Democracies program (renamed emerging markets). The 
program is ideally suited to design and implement the 
development, training and technical assistance programs funded 
by the Emerging Democracies programs. In carrying out these 
Emerging Democracies programs, ICD draws on and coordinates 
with the extensive expertise of other U.S. Department of 
Agriculture agencies, the state and land grant university 
system, and private agricultural enterprises. This relationship 
between ICD and others has helped develop a number of 
outstanding programs that are resulting in many short and long 
term benefits to the Emerging Democracies Office and the 
Foreign Agriculture Service.
      The Managers believe that the cooperation of ICD with the 
Emerging Democracies program should continue, and that the 
Foreign Agriculture Service and ICD should continue to seek 
other opportunities to fully draw on the expertise of ICD in 
achieving the Agency's broadened mission. (Section 277)
(61) ICD reimbursement for overhead expenses
      The Senate provision amends Section 1542(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 and allows the 
International Cooperation and Development (ICD) program to 
continue to administer the emerging democracies (now emerging 
markets) program as it did when it was OICD. Since the ICD 
merger with the Foreign Agriculture Service, emerging democracy 
funds cannot be used to pay the salaries of emerging democracy 
program employees (i.e., Cochran program). The provision allows 
the Foreign Agriculture Service to transfer not more than $2 
million per fiscal year for salaries and expenses for program 
employees and no funds may be used for the purchase of 
computers or information technology systems.
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 278)
      The Managers also accepted an amendment requiring the 
President to continue U.S. membership and participation in the 
International Cotton Advisory Committee. The Managers have 
determined that participation in that body by the United States 
is crucial and should be continued. The President shall ensure 
that U.S. participation in ICAC is carried out through the 
Secretary of Agriculture and shall direct the U.S. Department 
of State to pay the annual dues of the United States to ICAC 
from its appropriated accounts. The Presidents shall direct the 
U.S. Department of State to pay the 1996 dues in a prompt 
manner in order to ensure continuity of U.S. participation. 
(Section 283)
(62) Labeling of domestic and imported lamb and mutton
      The Senate amendment requires the Secretary, consistent 
with U.S. international obligations, to establish standards for 
the labeling of lamb and mutton and be applied equally to 
domestic and imported product. The standard to be used is based 
on the break or spool joint method to differentiate lamb from 
mutton by the degree of calcification of bone to reflect 
maturity. (Section 876)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment requiring the Secretary to establish 
standards for the labeling of sheep carcasses, parts of 
carcasses, meat, and meat food products as `lamb' or `mutton'.
      The Managers intend that consistency between domestic and 
imported lamb will result. To accomplish this the Secretary is 
expected to assess the extent to which imported sheepmeat meets 
the U.S. standard for lamb. Since U.S. and imported lamb 
maturity determination methods differ, this report should 
include any recommended changes in lamb labeling regulations. 
It is expected that this report will include quantitative 
analysis of the maturity of both domestic and imported 
sheepmeat in relation to the total amount of sheepmeat sold in 
the U.S. (Section 279)
(63) Import assistance for CBI beneficiary countries and the 
        Philippines
      The Senate amendment repeals an obsolete provision for a 
sugar reexport program for Caribbean countries and the 
Philippines that was in force only for 1988. (Section 269)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 280)
(64) Studies, reports, and other provisions
      The Senate amendment repeals requirements from the Food 
Agriculture, Conservation and Trade Act of 1990 for several 
reports. (Section 270)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 281)
(65) Sense of Congress concerning multilateral disciplines on credit 
        guarantees
      The House bill expresses the sense of Congress that, in 
ongoing negotiations under the auspices of the Organization for 
Economic Cooperation and Development on credit guarantees, the 
United States should not agree to changes in U.S. laws 
authorizing credit guarantees, and should insist on disciplines 
on the operations of foreign export monopolies. (Section 488)
      The Senate amendment is identical. (Section 272)
      The Conference substitute adopts the House provision with 
an amendment specifying state trading entities referenced in 
the resolution. (Section 282)

                        Title III--Conservation

(1) Definitions
      The Senate amendment defines conservation system as the 
conservation measures and practices that are approved for 
application by a producer to a highly erodible field and that 
provide for cost effective and practical erosion reduction on 
the field based on local resource conditions and standards 
contained in the Natural Resources Conservation Service field 
office technical guide. (Section 301)
      The House bill has no such provision.
      The Conference substitute adopts the Senate position with 
amendments that: 1) delete the Senate provisions; 2) provide 
definitions for conservation plans, conservation systems and 
fields; 3) require the Secretary of Agriculture publish in the 
Federal Register the current universal soil loss equation and 
wind erosion equation and publish in the Federal Register any 
subsequent changes to these equations; 4) require that highly-
erodible lands exiting the Conservation Reserve Program not be 
held to a higher conservation compliance standard than similar 
cropland in the same area; 5) provide that an individual who 
violates conservation compliance provisions have a reasonable 
period, not to exceed one year, to come into compliance; 6) 
provide for expedited variances for weather, pest, and disease 
problems and establish a time period for granting those 
variances; 7) provide for technical requirements in USDA's 
Field Office Technical Guides with respect to conservation 
plans and conservation systems; 8) require a measurement of 
erosion on the field prior to implementation of a conservation 
system, based on estimated annual erosion rates; 9) provide for 
residue measurement taking into account residue in the top two 
inches of soil, technical guidelines for erosion measurement, 
certification of third party residue measurement, and 
acceptance and use of residue measurements provided by a 
producer; 10) provide for a producer's certification of 
compliance and the Secretary's option for a status review if a 
producer certifies compliance, and revision or modification of 
a conservation plan by a producer if the same level of 
treatment is maintained. The Secretary may not change a 
producer's conservation plan without concurrence by the 
producer; 11) provide for technical assistance on all portions 
of a producer's farm for other conservation objectives outside 
of the scope of conservation compliance; 12) permit the 
producer to use practices other than those currently approved 
if the Secretary determines they have a reasonable likelihood 
of success; 13) provide for a review, and relief to a producer, 
by the local county committee if a conservation system would 
cause undue economic hardship; 14) mandate that an employee of 
USDA who notices a compliance deficiency on a producer's farm 
while providing technical assistance on other land inform the 
producer of the deficiency and actions necessary to come into 
compliance (The producer must come into compliance within one 
year); 15) provide that a producer who is violating 
conservation compliance will not be denied crop insurance 
benefits, and; 16) make conforming amendments. (Sections 301, 
311-316)
      It is the intent of the Managers that the Secretary use 
the best science available in determining the degree to which 
the amount of residue in the top two inches of soil is to be 
considered when estimating average annual soil erosion levels.
      The Managers intend that USDA employees may, at the 
request of the producer, provide technical assistance on all 
parts of a producer's operation for soil, water, and related 
natural resource concerns identified by the producer.
      The Managers intend that the Secretary will establish one 
standard for conservation systems offered by USDA on all 
cropland subject to conservation compliance.
      It is not the intent of the Managers that county 
committees make determinations on the accuracy of a technical 
determination by NRCS. The scope of the county committees' 
decision will be whether the technical determination causes 
undue economic hardship.
      To accomplish NRCS's stated objectives of providing 
farmers additional conservation alternatives based on local 
conditions that combine economic and environmental 
considerations, the Committee urges the Secretary to encourage 
NRCS to continue and expand, as appropriate, the Wind Erosion 
Pilot Project, which evaluates the use of primary tillage to 
create soil roughness conditions for compliance purposes. This 
includes evaluating the appropriateness of substituting tillage 
as an alternative to vegetative cover management.
      The Managers expect the Secretary to make it possible for 
residue measurements to be supplied by producers who self-
certify. At the same time, the Managers do not intend that the 
Secretary be required to use producer (or certified third 
party) supplied residue measurements that the Secretary 
determines are incorrect or inappropriate for the purpose 
identified in this paragraph. Rather, it is the intent of the 
Managers that the Secretary shall use these measurements to the 
extent the Secretary determines is appropriate.
      The Managers believe that the Secretary should examine 
and revise, as appropriate, the Department's procedures for 
providing notice of, and conducting investigations of, possible 
conservation compliance deficiencies. The Managers understand 
that existing law requires that, when accepting written 
allegations of compliance violations, the Secretary must keep 
the identity of the person filing the allegation confidential 
if so requested by the person. However, it is critical that the 
Secretary have the discretion to determine whether to 
investigate such allegations, recognizing the high degree of 
sensitivity among farmers and others concerning the propriety 
of relying on anonymous allegations. The Secretary may initiate 
or expand any investigation based on such allegations, and 
should promptly notify the subject of the investigation of the 
existence and nature of the alleged violation. The Secretary 
should provide information to the subject of the investigation 
on the status of the investigation when requested or within 180 
days of the initial notification of the investigation. In this 
notice, the Secretary should also inform the person whether a 
formal complaint will be issued, when the investigation will be 
terminated, or whether the investigation will continue or be 
expanded. In cases where the Secretary determines that a 
violation has occurred, the subject of the investigation should 
be notified by registered or certified mail of the violation 
and be given the appropriate information on the determination 
and on appeal rights.
      The Managers intend, by using the term ``group of 
fields'' as part of the definition of a conservation system, 
that appropriate erosion control conservation practices be 
applied to highly erodible lands that might constitute a subset 
of all the land within such a group.
      The Managers expect that the Secretary pay particular 
attention to areas near weather stations used to establish 
climatic factors used in making wind erosion predictions. In 
cases where the Secretary concludes that existing highly-
erodible land determinations unfairly penalize producers, the 
Secretary should, to the extent practicable and appropriate, 
use updated wind erosion data to revise the conservation 
compliance plan for the affected land of producers who request 
such relief. The Secretary should caution producers that a 
voluntary request for a conservation compliance review in an 
affected county may impact the producer's future eligibility 
for the Conservation Reserve Program.
(2) Wetland conservation exemption
      The Senate amendment amends Section 1222(b)(1) of the 
Food Security Act of 1985 by adding a new exemption from 
swampbuster penalties for converted wetlands if the extent of 
the conversion is limited to the reversion to conditions that 
will be at least equivalent to the wetland functions and values 
that existed prior to implementation of a voluntary wetland 
restoration, enhancement, or creation action. (Section 358)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment. (Section 322)
      The Managers intend that the Secretary permit a person to 
cease to use ``farmed wetlands'' or ``farmed wetlands pasture'' 
for agricultural purposes, allow them to return to wetland 
conditions and subsequently bring these lands back into 
agricultural production after any length of time without 
violating swampbuster, if: 1) the person first notifies the 
Secretary of the intent to allow improved wetland conditions to 
return to the ``farmed wetland'' or ``farmed wetland pasture''; 
2) the Secretary documents the specific site conditions prior 
to the initiation of the wetland improvement; 3) the Secretary 
approves the subsequent proposed conversion action prior to 
implementation, and; 4) the subsequent conversion action 
returns the site to wetland conditions at least equivalent to 
the functions and values that existed prior to the time the 
wetland was restored or enhanced. The Managers do not intend 
for this provision to supersede the wetlands protection 
authorities and responsibilities of the Environmental 
Protection Agency or of the Corps of Engineers under Section 
404 of the Clean Water Act.
(3) Abandonment of converted wetlands
      The Senate amendment amends Section 1222 of the Food 
Security Act of 1985 to require that the Secretary not 
determine that a prior converted or cropped wetland is 
abandoned, and therefore that the wetland is subject to 
swampbuster penalties, on the basis that a producer has not 
planted an agricultural crop on the prior converted or cropped 
wetland after the date of enactment of this subsection, so long 
as any use of the wetland thereafter is limited to agricultural 
purposes. (Section 364)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provision 
with amendments that: 1) provide the Secretary with the 
discretion to determine which programs a person who violates 
swampbuster will become ineligible for; 2) assure producers 
have the right to request a review of, and to appeal, a 
certified wetland delineation; 3) provide that a certified 
wetland delineation will remain in effect until the producer 
requests a new delineation and certification; 4) ensure that 
wetlands which were certified as prior converted cropland will 
continue to be considered prior converted wetlands even if 
wetland characteristics return as a result of lack of 
maintenance of the land or other circumstances beyond the 
person's control as long as the prior converted cropland 
continues to be used for agricultural purposes; 5) require USDA 
to identify which categories of actions constitute a minimal 
effect on a regional basis; 6) provide producers who 
inadvertently convert a wetland greater flexibility to mitigate 
that loss through restoration, enhancement, or creation of 
wetlands; 7) allow the Secretary to waive penalties against a 
producer if the Secretary believes the producer was acting in 
good faith and did not intentionally violate swampbuster; 8) 
provide for a pilot program on mitigation banking; 9) repeal 
the requirement for consultation with the Fish and Wildlife 
Service; 10) provide that persons affiliated with a person who 
violates swampbuster will not be penalized if such affiliated 
persons are not responsible for the violation, and; 11) defines 
``agricultural lands'' for purpose of implementing the 
interagency memorandum of agreement on federal wetland 
delineations. (Section 321-326)
      The Managers intend that the Secretary should, in 
determining ineligibility for benefits under swampbuster, take 
away those program benefits that would not defeat the purposes 
of encouraging good conservation of our soil and water 
resources or endanger the ability of a borrower to continue to 
repay a USDA farm loan. The Managers intend that the amendments 
to abandonment provisions under swampbuster should not 
supersede the wetland protection authorities and 
responsibilities of the Environmental Protection Agency or the 
Corps of Engineers under Section 404 of the Clean Water Act. 
The minimal effect amendments are intended by the Managers to 
assist persons in avoiding a violation of the ineligibility 
provisions of Section 1221 by identifying types of minor 
wetland alterations and farming practices that are routinely 
determined by the Secretary in a given state or region to have 
minimal impact on wetlands functions and values. The Managers 
intend, in general, that categorical minimal effects exemptions 
be developed on a statewide, regional or local basis for 
categories of specific, normal agricultural practices conducted 
in specified wetland systems.
      The Managers intend the mitigation banking pilot to 
determine the usefulness of such mitigation banking in 
assisting landowners in complying with the mitigation 
requirements of the Swampbuster provisions. In carrying out 
such a pilot, the Managers support permitting wetland acres to 
be entered into the Conservation Reserve Program (CRP) for the 
purpose of demonstrating the feasibility of agricultural 
wetlands mitigation. The Managers also support permitting 
producers to convert the frequently cropped wetlands mitigated 
under this pilot mitigation banking authority, and to produce 
an agricultural commodity on the converted acres. To ensure 
that the mitigation pilot does not diminish wetland resources, 
the Mangers expect that wetlands that producers may convert 
under this pilot program should be wetlands which are 
frequently cropped, and significantly degraded. Further, to 
offset the loss of wetland functions and values that may result 
from such conversion, the Committee expects that the Secretary 
will require producers who are permitted to harvest a crop on a 
converted wetland mitigated under this pilot program to assign 
the related CRP payments to a wetland mitigation bank approved 
by the Secretary.
      The Managers intend the Secretary to determine under what 
circumstances the Fish and Wildlife Service should be utilized 
in the implementation of Swampbuster. The Managers intend that 
the Secretary define ``affiliated person'' so that persons with 
an insignificant interest will not be considered affiliated.
      For the purposes of the section relating to the Secretary 
of Agriculture's role under the interagency memorandum of 
agreement on wetland delineation, ``tree farms'' means farms 
devoted to the raising of trees designed to be sold whole, such 
as nurseries, Christmas tree farms and other small tree farms, 
and does not include large tree farms that are commercially 
planted, cultivated, and actively managed for the production of 
wood and wood fiber.
(4) Environmental Conservation Acreage Reserve Program
      The House bill extends the authorization for ECARP 
through 2002. Protection of wildlife habitat is added as a 
purpose of ECARP. (Section 304)
      The Senate amendment contains similar provisions 
including a farmland protection program under which the 
Secretary is directed to purchase conservation easements or 
other interests in 170,000 to 340,000 acres of land with prime, 
unique or other productive soil that is subject to a pending 
offer from a state or local government to limit non-
agricultural uses of the land. Funding for the program, from 
the Commodity Credit Corporation, shall not exceed $35 million. 
(Section 301)
      The Conference substitute adopts the Senate provisions 
with an amendment to add protection of wildlife habitat as a 
purpose of ECARP. (Section 331)
      It is the intent of the Managers that the Secretary of 
Agriculture should, to the fullest extent practicable, 
recognize the responsibilities and utilize the authorities of 
state and local governments, including local conservation 
districts, in achieving the purposes of this section. In 
particular, Congress intends for the Secretary to acknowledge 
and maintain the historic role of conservation districts in 
assessing natural resource priorities, approving site-specific 
conservation plans, and coordinating the delivery of federal 
conservation programs at the local level.
(5) Conservation priority areas
      The Senate amendment continues the concept of 
conservation priority areas within which producers are eligible 
for enhanced assistance through the Conservation Reserve 
Program, the Wetlands Reserve Program, and a new Environmental 
Quality Incentives Program. It adds the Rainwater Basin Region, 
the Lake Champlain Basin and the Prairie Pothole Region as 
specific conservation priority areas. (Section 311)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment deleting all mentions of specific regions as 
conservation priority areas. (Section 331)
      Although the Managers removed the Chesapeake Bay Region, 
the Great Lakes Region and the Long Island Sound Region from 
the conservation priority area designation legislation and 
opted not to include the Rainwater Basin Region, the Lake 
Champlain Basin and the Prairie Pothole Region, the Managers 
intend no prejudice against these regions being designated by 
the Secretary as conservation priority areas in the future.
      In the priority setting process the Managers expect the 
Secretary to take into consideration any recommendations from 
State Governors, State agencies, and other Federal Departments 
or agencies in selecting and designating conservation priority 
areas.
(6) Applicability and termination
      The Senate amendment restates current law regarding 
applicability and termination of conservation priority areas. 
(Section 311)
      The House bill has no comparable provision
      The Conference substitute adopts the Senate provision. 
(Section 331)
(7) Conservation reserve program
      The House bill reauthorizes the CRP through 2002, limits 
enrollments to 36.4 million acres and provides that CRP funds 
not spent because of an early contract termination may be spent 
as rental payments to enroll other eligible land into the CRP. 
(Section 305)
      The Senate amendment reauthorizes the CRP through 2002, 
limits enrollments to 36.52 million acres and permits the 
Secretary to enroll new acreage into the CRP in an amount equal 
to the acreage covered by those CRP contracts that expire after 
the date of enactment. (Section 312)
      The Conference substitute adopts the House provisions 
with an amendment that provides that the Secretary may maintain 
up to 36.4 million acres in the CRP at any time during the 
1986-2002 calendar years, including acreage in contracts 
extended by the Secretary. (Section 332)
      The Managers stress their intent that the 36.4 million 
acre maximum is a rolling maximum, rather than a program 
lifetime limit. The Secretary may enroll additional land to 
replace land leaving the program through early terminations or 
contract expirations so long as, at any one time, there is not 
more than 36.4 million acres enrolled.
      The Managers urge the Secretary, when considering the 
appropriateness of utilizing the Conservation Reserve Program 
and other voluntary incentive and technical assistance 
initiatives on an individual farm or ranch, to employ the most 
cost-effective option or options necessary to address the 
natural resource challenges posed by the farm or ranch. In many 
cases, entering entire fields into the CRP will be the most 
efficacious. However, idling partial fields through the CRP 
will frequently provide equivalent environmental benefits at a 
lower cost to the government. Similarly, financial incentives 
for the employment of land management or structural practices--
alone or in combination with land idling--will return 
substantial environmental dividends economically while allowing 
agricultural production to continue. By adopting such a 
balanced approach, the Secretary will maximize the 
environmental benefits of the various programs per dollar 
expended.
      It is the intent of the Managers that the Secretary 
permit flexible widths for vegetative strips beside ditches or 
waterways, and in sodded waterways and filterstrips, placed in 
the CRP. The Managers intend for the Secretary, to the extent 
practicable, to consider local conditions when determining 
minimum required widths for vegetative strips in the CRP.
      In carrying out the Conservation Reserve Program, the 
Managers recommend that the Secretary consider allowing biomass 
production as an acceptable cover crop practice during the 
period of a contract, provided that no harvesting is allowed 
until after the contract is completed or terminated.
(8) Conservation Reserve Program new acreage
      The Senate amendment permits the Secretary to enroll new 
acreage into the CRP in an amount equal to the acreage covered 
by those CRP contracts that expire after the date of enactment.
      The House bill contains no comparable provision.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(9) Optional contract termination by producers
      The House bill permits persons to unilaterally terminate 
CRP contracts with reasonable notice to the Secretary, if the 
contracts were entered into at least 5 years prior to the date 
of enactment. Filterstrips, waterways, strips adjacent to 
riparian areas, windbreaks, shelterbelts, land with an 
erodibility index greater than 15 and other lands of high 
environmental value are not eligible for early termination. The 
early termination may become effective 60 days after the person 
submits notice to the Secretary and the rental payment for the 
Fiscal Year in which the termination takes place shall be 
prorated. An owner or operator who opts for a unilateral 
termination may at a later time be eligible to enroll the land 
in the CRP. (Section 305)
      The Senate amendment contains no comparable provisions.
      The Conference substitute adopts the House provisions 
with amendments to include wetlands among those lands the 
Secretary may determine are not eligible for an early 
termination and to limit the unilateral termination option to 
contracts entered into before January 1, 1995. (Section 332)
(10) Fair market value rental rates
      The House bill provides that rental payments for land 
entered into the CRP after the date of enactment may not exceed 
the average fair market rental rate for comparable lands in the 
county. The provision is not applicable to existing contracts 
that have been extended. (Section 305)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the Senate provision, 
which deletes the House provision. (Section 332)
      The Managers note the provision in the House bill that 
required rental rates for new enrollments not to exceed the 
average fair market rental rate for comparable lands in the 
county in which the CRP lands are located. The Conference 
substitute did not include this provision. The Managers agree 
with the Secretary's action for the 13th CRP signup which 
allowed local review of CRP rental rates prior to the signup 
period, including authority for limited adjustments. However, 
the Managers are concerned that in some regions, Farm Service 
Agency offices did not clearly understand that in areas where 
share leases predominate, rental rates were to be determined on 
a cash equivalent basis. Therefore, the Managers expect that, 
in future CRP enrollments and extensions of CRP contracts, the 
Secretary will ensure that all county offices are notified that 
CRP rental rates shall be determined on a cash or cash 
equivalent basis.
(11) Enrollments in 1997
      The House bill repeals a requirement in the Fiscal 1996 
Agricultural Appropriations Act regarding CRP enrollments. 
(Section 305)
      The Senate amendment contains a similar provision. 
(Section 312)
      The Conference substitute adopts the House provision. 
(Section 332)
(12) Wetlands Reserve Program--Enrollment
      The House bill reauthorizes the WRP through 2002 and 
limits enrollments to no more than 975,000 acres. Total acreage 
enrolled shall be divided equally between permanent easements, 
long-term easements (30 years or shorter if required by state 
law), and cost-share agreements. (Section 302)
      The Senate amendment contains similar provisions with the 
exception that, beginning October 1, 1996, acreage enrolled 
shall be divided equally between permanent easements, 30-year 
easements and restoration cost-share agreements. (Section 313)
      The Conference substitute adopts the Senate provisions 
with an amendment prohibiting the Secretary from entering into 
any new permanent easements until non-permanent easements are 
obtained on at least 75,000 acres. (Section 333)
      The Managers do not intend for the restriction on 
additional permanent easements to prohibit the Secretary from 
finalizing any agreements that have been entered into with 
producers through previous WRP signups.
(13) Eligibility
      The House bill extends the period for eligible lands to 
be enrolled through 2002. (Section 302)
      The Senate amendment contains similar provisions and a 
requirement that eligible lands must also maximize wildlife 
benefits. (Section 313)
      The Conference substitute adopts the Senate provisions. 
(Section 333)
(14) Other eligible lands
      The Senate amendment states that other eligible lands 
must also maximize wildlife benefits. (Section 313)
      The House bill has no similar provision.
      The Conference substitute adopts the Senate provision. 
(Section 333)
(15) Easements
      The House bill states that payments may be provided in 
between 5 and 30 annual installments of equal or unequal size 
(but may not be in a lump sum). Cost-share payments for 
permanent easements shall be for 75-100% of eligible costs and 
those for 30-year easements or cost-share agreements shall be 
for 50-75% of eligible costs. (Section 302)
      The Senate amendment contains similar provisions and a 
requirement that restoration plans be made through the local 
Natural Resources Conservation Service representative in 
consultation with the State Technical Committee. (Section 313)
      The Conference substitute adopts the Senate provisions. 
(Section 333)
(16) Cost share and technical assistance
      The House bill states that restoration cost-share 
agreements may cover 50-75% of eligible costs and specifies 
that the limitations are not applicable to easements that 
existed prior to the date of enactment. (Section 302)
      The Senate amendment has similar provisions with the 
exception of the proviso regarding easements that existed prior 
to the date of enactment. (Section 313)
      The Conference substitute adopts the Senate provisions. 
(Section 333)
(17) Wetlands Reserve Program--Purposes
      The House bill makes no change to the current purpose of 
the WRP, which is to assist owners of eligible lands in 
restoring and protecting wetlands.
      The Senate amendment states that the purpose of the WRP 
is to protect wetlands so as to enhance water quality and 
provide wildlife benefits while recognizing landowner rights. 
(Section 313)
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(18) Environmental Quality Incentives Program--Purpose
      The Senate amendment states that the purpose of the new 
Environmental Quality Incentives Program is to combine into a 
single program the functions of the Agricultural Conservation 
Program, the Great Plains Conservation Program, the Colorado 
River Basin Salinity Control Program and the Water Quality 
Incentives Program. (Section 314)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 334)
(19) Findings
      The Senate amendment states several findings relevant to 
the establishment of the EQIP program. (Section 314)
      The House bill has no comparable provision.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(20) Eligible lands
      The House bill states that land on which EQIP contracts 
may be entered into includes land used for livestock or 
agricultural production that the Secretary determines poses a 
serious threat to soil, water or related resources. (Section 
301)
      The Senate amendment states that land on which EQIP 
contracts may be entered into include: agricultural land 
(including cropland, rangeland, pasture and other land on which 
crops or livestock are produced) that the Secretary determines 
poses a serious threat to soil, water or related resources; 
critical agricultural land as identified in a state plan 
required under nonpoint source provisions of the Clean Water 
Act; an area recommended by a state lead agency for protection 
of soil, water and related resources, and; other land that, if 
left untreated, could defeat the purposes of EQIP. (Section 
314)
      The Conference substitute adopts the Senate provisions 
with an amendment striking references to critical agricultural 
land as identified in a state plan required under nonpoint 
source provisions of the Clean Water Act. (Section 334)
(21) Definitions--land management practice
      The House bill defines ``land management practice'' as a 
site-specific nutrient or manure management, integrated pest 
management, irrigation management, tillage or residue 
management, grazing management, or other land management 
practice that the Secretary determines is needed to protect, in 
the most cost effective manner, water, soil, or related 
resources from degradation. (Section 314)
      The Senate amendment is similar, except that it has no 
reference to ``site-specific.'' (Section 301)
      The Conference substitute adopts the House provision with 
a technical amendment. (Section 334)
(22) Large confined livestock operation
      The Senate amendment defines ``large confined livestock 
operation'' as an operation that is a confined animal feeding 
operation and has more than:
            700 mature dairy cattle;
            1,000 beef cattle;
            100,000 laying hens or broilers;
            55,000 turkeys;
            2,500 swine; or
            10,000 sheep or lambs. (Section 314)
      The House bill has no similar provision.
      The Conference substitute adopts the House provision, 
which deletes the Senate amendment.
(23) Livestock
      The House bill defines ``livestock'' as mature livestock, 
dairy cows, beef cattle, laying hens, broilers, turkeys, swine, 
sheep, lambs and such other animals as determined by the 
Secretary. (Section 301)
      The Senate amendment has a similar definition with the 
exception of the term ``mature livestock'' and the provision 
allowing for a Secretarial determination. (Section 314)
      The Conference substitute adopts the House provisions 
with amendments striking the word ``mature'' and substituting 
the word ``cattle'' in place of ``cows.'' (Section 334)
(24) Producer
      The House bill utilizes the term ``producer'' as a person 
who is engaged in livestock production, as defined by the 
Secretary. (Section 301)
      The Senate amendment utilizes the term ``operator.'' 
(Section 314)
      The Conference substitute adopts the House provision. 
(Section 334)
(25) Structural practice
      The House bill defines ``structural practice'' as an 
animal waste management facility, terrace, grassed waterway, 
contour grass strip, filterstrip, tailwater pit, or other 
structural practice that the Secretary determines is needed to 
protect water, soil, or related resources in the most cost-
effective manner, and the capping of abandoned wells. (Section 
301)
      The Senate amendment has a similar definition, except 
that it includes ``permanent wildlife habitat'' and excludes 
``tailwater pit'' and ``capping of abandoned wells.'' (Section 
314)
      The Conference substitute adopts the House provision with 
an amendment adding ``permanent wildlife habitat'' and the term 
``site-specific.'' (Section 334)
(26) Establishment and administration of EQIP--Establishment
      The House bill requires that, during the 1996 through 
2002 fiscal years, the Secretary provide technical assistance, 
cost-sharing payments, and incentive payments to producers who 
enter into contracts with the Secretary, through EQIP. (Section 
301)
      The Senate amendment contains a similar provision. 
(Section 314)
      The Conference substitute adopts the Senate provision. 
(Section 334)
(27) Eligible practices
      The House bill provides that a producer who implements a 
structural practice shall be eligible for technical assistance, 
cost-sharing payments, or both. In addition, a producer who 
performs a land management practice shall be eligible for 
technical assistance, incentive payments, or both. (Section 
301)
      The Senate amendment contains a similar provision except 
that it also provides for ``education.'' (Section 314)
      The Conference substitute adopts the Senate provision. 
(Section 334)
(28) Application and term
      The House bill provides that a contract between a 
producer and the Secretary under EQIP may apply to 1 or more 
structural practices or 1 or more land management practices, or 
both; and have a term of not less than 5, nor more than 10, 
years, as determined appropriate by the Secretary, depending on 
the practice or practices that are the basis of the contract. 
(Section 301)
      The Senate amendment contains a similar provision. 
(Section 314)
      The Conference substitute adopts the Senate provision. 
(Section 334)
(29) Structural practices
      The House bill requires the Secretary to administer a 
competitive offer system for producers proposing to receive 
cost-sharing payments in exchange for the implementation of 1 
or more structural practices. The competitive offer system 
shall consist of the submission of a competitive offer by the 
producer in such manner as the Secretary may prescribe and 
evaluation of the offer in light of the selection criteria 
established in section 1238C and the projected cost of the 
proposal. In addition, if the producer who offers to implement 
a structural practice is a tenant of the land involved in 
agricultural production, for the offer to be acceptable, the 
producer shall obtain the concurrence of the owner of the land 
with respect to the offer. (Section 301)
      The Senate amendment contains a similar provision with 
technical differences. (Section 314)
      The Conference substitute adopts the House provision with 
an amendment requiring the Secretary, to the extent 
practicable, to provide a process for selecting applications 
for financial assistance where there are numerous applications 
for such assistance that present substantially the same level 
of environmental benefits. The process shall provide for the 
consideration of a reasonable estimate of the projected cost of 
the proposal and other factors identified by the Secretary for 
determining which applications will present the least cost, and 
the consideration of the priorities established under EQIP and 
other such factors identified by the Secretary to maximize 
environmental benefits per dollar expended. (Section 334)
      The Managers intend that, when cost-share assistance is 
provided, the Secretary encourages open and fair competition by 
vendors for services and products.
(30) Land management practices
      The House bill requires the Secretary to establish an 
application and evaluation process for awarding technical 
assistance or incentive payments, or both, to a producer in 
exchange for the performance of 1 or more land management 
practices by the producer. (Section 301)
      The Senate amendment contains a similar provision. 
(Section 314)
      The Conference substitute adopts the Senate provision 
with an amendment using the term ``producer'' rather than 
``operator.'' (Section 334)
      The Managers urge the Secretary, in carrying out EQIP, to 
be particularly cognizant of the needs of producers whose lands 
are exiting the Conservation Reserve Program (CRP). Such 
consideration will ensure that these lands are eligible to 
receive EQIP assistance for practices such as conservation 
tillage in an effort to maximize the conservation and 
environmental benefits that have accrued under the CRP.
(31) Cost-sharing, incentive payments, and other payments
      The House bill requires that the Federal share of cost-
sharing payments to a producer proposing to implement 1 or more 
structural practices shall not be more than 75 percent of the 
projected cost of each practice, as determined by the 
Secretary, taking into consideration any payment received by 
the producer from a State or local government. A producer shall 
not be eligible for cost-sharing payments for structural 
practices on eligible land if the producer receives cost-
sharing payments or other benefits for the same land under CRP, 
WRP or the Environmental Easement Program. The Secretary shall 
make incentive payments in an amount and at a rate determined 
by the Secretary to be necessary to encourage a producer to 
perform 1 or more land management practices. (Section 301)
      The Senate amendment contains similar provisions. 
(Section 314)
      The Conference substitute adopts the Senate provisions 
with amendments using the term ``producer'' rather than 
``operator.'' (Section 334)
(32) Size limitation
      The Senate amendment states that an operator of a large 
confined livestock operation shall not be eligible for cost-
sharing payments to construct an animal waste management 
facility. (Section 314)
      The House bill contains no similar provision.
      The Conference substitute adopts the Senate provision 
with an amendment stating that a ``large confined livestock 
operation'' shall be determined by the Secretary. (Section 334)
      The Managers expect that in determining whether an 
operation is a large confined livestock operation within the 
meaning of this provision, the Secretary will consider various 
resource and environmental factors, including regulations 
promulgated pursuant to the Clean Water Act. The Secretary is 
expected to specify clearly the factors and considerations 
involved in developing the requirements for program eligibility 
and should follow notice and comment procedures. However, the 
Managers understand that the need to begin implementing the 
program quickly may initially require the use of interim 
procedures. In defining large confined livestock operations, 
the Managers expect the Secretary to take into account needs 
for maximizing environmental benefits in targeted watersheds 
affected by animal agriculture, the ability of operations to 
pay for the cost of animal waste management facilities, the 
obligations of operations under other environmental 
authorities, and the particular characteristics of modern 
livestock operations.
(33) Technical assistance
      The House bill requires the Secretary to allocate funding 
under EQIP for the provision of technical assistance according 
to the purpose and projected cost for which the technical 
assistance is provided for a fiscal year. The allocated amount 
may vary according to the type of expertise required, quantity 
of time involved, and other factors as determined appropriate 
by the Secretary. Funding shall not exceed the projected cost 
to the Secretary of the technical assistance provided for a 
fiscal year. In addition, the Secretary shall ensure that the 
process of writing, developing and assisting in the 
implementation of EQIP plans be open to individuals in 
agribusiness including but not limited to agricultural 
producers, representatives from agricultural cooperatives, 
agricultural input retail dealers and certified crop advisers. 
The process shall be included in but not limited to programs 
and plans established under EQIP and any other USDA programs 
using incentive payments, technical assistance, or cost-share 
payments. The receipt of technical assistance under EQIP shall 
not affect the eligibility of the operator to receive technical 
assistance under other authorities of law available to the 
Secretary. (Section 301)
      The Senate amendment contains similar provisions. 
(Section 314)
      The Conference substitute adopts the House provisions 
with an amendment to specify that the provision requiring that 
non-USDA individuals be allowed to prepare plans for programs 
other than EQIP applies specifically to USDA conservation 
programs. (Section 334)
(34) Modification or termination of contracts
      The House bill permits the Secretary to establish terms 
of an EQIP contract. (Section 301)
      The Senate amendment permits the Secretary to modify or 
terminate a contract entered into with an operator if the 
operator agrees and if the Secretary determines the 
modification or termination is in the public interest. The 
Secretary may also terminate a contract if the Secretary 
determines that the operator violated the contract. (Section 
314)
      The Conference substitute adopts the Senate provisions 
with an amendment to use the term ``producer'' rather than 
``operator.'' (Section 334)
(35) Non-federal assistance
      The Senate amendment permits the Secretary to request the 
services of a state agency dealing with water quality, fish and 
wildlife, or forestry, or any other governmental or private 
resource considered appropriate to assist in providing the 
technical assistance necessary for the development and 
implementation of a structural practice or land management 
practice. No person shall be permitted to bring or pursue any 
claim or action against any official or entity based on or 
resulting from any technical assistance provided to an operator 
under EQIP to assist in complying with a federal or state 
environmental law. (Section 314)
      The House bill contains no similar provision.
      The Conference substitute adopts the Senate provisions 
with amendments striking the prohibition against claims or 
action resulting from technical assistance and using the term 
``producer'' rather than ``operator.'' (Section 334)
(36) Evaluation of offers and payments--Regional priorities
      The House bill requires the Secretary, in determining 
eligibility for land for EQIP, to consider the significance of 
the water, soil and related natural resource problems and the 
maximization of environmental benefits per dollar expended. 
(Section 301)
      The Senate amendment requires the Secretary to provide 
assistance to operators in a region, watershed or conservation 
priority area based on the significance of the soil, water and 
related natural resource problems and the practices that best 
address the problems. (Section 314)
      The Conference substitute adopts the House provisions. 
(Section 334)
(37) Maximization of environmental benefits
      The House bill requires the Secretary, in providing 
assistance to producers, to consider the significance of the 
water, soil and related natural resource problems and the 
maximization of environmental benefits per dollar expended. 
(Section 301)
      The Senate amendment requires the Secretary to accord a 
higher priority to assistance and payments that maximize 
environmental benefits per dollar expended. Prioritization 
shall be done nationally as well as within specific 
conservation priority areas, regions or watersheds. The 
Secretary shall establish criteria for implementation of 
practices that best achieve relevant conservation goals. 
(Section 314)
      The Conference substitute adopts the Senate provisions. 
(Section 334)
(38) State or local contributions
      The Senate amendment requires the Secretary to accord a 
higher priority to operators located within areas that state or 
local governments have provided, or will provide, financial or 
technical assistance to operators for the same conservation or 
environmental purposes. (Section 314)
      The House bill has no similar provisions.
      The Conference substitute adopts the Senate provision. 
(Section 334)
(39) Priority lands
      The Senate amendment requires the Secretary to accord 
higher priority to lands on which agricultural production 
contributes to the potential for failure to meet applicable 
water quality standards or other federal or state environmental 
objectives. (Section 314)
      The House bill contains no similar provisions.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(40) Duties of operators
      The House bill requires producers to comply with terms 
required by the Secretary. (Section 301)
      The Senate amendment stipulates that, to receive 
assistance under EQIP, operators shall agree: to implement an 
EQIP plan describing conservation and environmental goals; not 
to conduct practices that would defeat the purposes of EQIP; to 
refund any payment and forfeit future payments if in violation 
of the EQIP contract or upon transferring interest in the land 
(unless the transferee assumes the obligations of the 
contract), and; to supply information necessary to determine 
compliance with the EQIP plan. (Section 314)
      The Conference substitute adopts the Senate provisions 
with an amendment using the term ``producer'' rather than 
``operator''. (Section 334)
(41) EQIP plan
      The Senate amendment states that an individual EQIP plan 
shall include (as determined by the Secretary): a description 
of the farming or ranching operation; a description of the 
relevant farm or ranch resources related to the conservation 
and environmental objectives of the plan; a description of the 
structural or land management practices to be implemented; the 
timing and sequence for implementing the practices, and; 
information to enable evaluation of the effectiveness of the 
plan. (Section 314)
      The House bill contains no similar provisions.
      The Conference substitute adopts the Senate position with 
an amendment providing general requirements for a plan of 
operations that shall, to the extent practicable, avoid 
duplication in the plans required for other similar 
conservation programs and requirements. (Section 334)
      It is the Managers' intent that the process used to 
develop EQIP plans be a simplified and flexible approach to 
assist producers to work toward better resource management. 
EQIP are not intended to be whole-farm plans.
      The producer should voluntarily submit a conservation 
plan to the Secretary for approval in order to be eligible for 
participation in EQIP. The plan may contain an implementation 
schedule, a description of the structural and management 
practices, cropping patterns, farm or ranch resources, and 
other information, as the Secretary determines is necessary, to 
facilitate the objectives of this provision.
      Producers, on their own initiative, may use any 
conservation plan developed and required for participation in 
any other program within the jurisdiction of the Secretary 
provided the plan is approved by the Secretary for the purpose 
of EQIP. This is intended to avoid a duplication of planning 
and to relieve the paperwork burden on producers.
      Since EQIP is a voluntary program, the producers may 
begin the plan development process, on their own initiative, by 
analyzing their needs for long-term farm or ranch operations. 
The producers should assess the areas of their operations that 
face the most serious problems associated with soil, water and 
related resources, including grazing lands, wetlands, and 
wildlife habitat. The producers should identify alternative 
conservation practices and select the best management practices 
to meet their needs and the conservation incentives of EQIP. 
The plan should be designed, to the extent practicable, to help 
producers comply with local, state, and federal laws.
      In determining the practice or combination of practices 
appropriate for a particular farm or ranch, the Managers 
emphasize that the Secretary should use the lowest-cost option 
or options available. By doing so, the Secretary will be able 
to assist the greatest number of producers possible and 
maximize the positive impacts on the environment.
      The legislation does not specifically mention all 
structural or land management practices that are eligible for 
funding under EQIP because of the broad gamut of measures that 
may be appropriate depending on the type of operation, its 
location and other factors. In addition, it is impossible to 
predict the evolution of new technologies. Accordingly, the 
Managers strongly urge the Secretary to make new practices 
eligible for funding under EQIP as soon as reasonable testing 
indicates their efficacy. The managers also intend that the 
term ``site-specific'' refer not only to entire farms or 
ranches but to discrete locations within an operation.
(42) Duties of the Secretary
      The Senate amendment requires the Secretary to assist an 
operator in achieving the goals of an EQIP plan by providing an 
eligibility assessment of the farming or ranching operation; 
providing technical assistance in developing and implementing 
the plan; providing technical assistance, cost-sharing payments 
or incentive payments for practices; providing information, 
education and training; and by encouraging the operator to 
obtain assistance from other federal, state, local or private 
sources. (Section 314)
      The House bill includes no similar provisions.
      The Conference substitute adopts the Senate provisions 
with an amendment using the term ``producer'' rather than 
``operator.'' (Section 334)
(43) Limitations on payments
      The House bill states that the total amount of cost-
sharing and incentive payments paid to a person may not exceed 
$10,000 for any fiscal year or $50,000 for any multiyear 
contract, except that the Secretary may exceed the limitation 
on the annual limit on a case-by-case basis if the Secretary 
determines that a larger payment is essential. The Secretary 
shall issue regulations that are consistent with those for 
receiving market transition payments for the purpose of 
defining the term `person' and prescribing such rules as the 
Secretary determines necessary to ensure a fair and reasonable 
application of the EQIP limitations. (Section 301)
      The Senate amendment contains similar provisions but does 
not include the exception permitting a waiver of the annual 
limit. (Section 314)
      The Conference substitute adopts the House provisions 
with amendments requiring the maximization of environmental 
benefits per dollar expended and providing for interim 
administration of EQIP pending promulgation of final 
regulations, to the extent the existing regulations do not 
conflict with the provisions of the Conference substitute 
establishing EQIP, and requiring that payments under an EQIP 
contract entered into during a fiscal year not be made until 
the subsequent fiscal year. (Section 334)
(44) Conservation farm option
      The Senate amendment requires the Secretary to offer 
eligible owners and operators with contract acreage under Title 
I who also have entered into a CRP contract the option of 
entering into a Conservation Farm Option contract for a period 
of ten years as an alternative to the market transition 
contract payment. In return, eligible owners and operators 
shall receive payments that reflect the Secretary's estimate of 
the payments they would receive over the ten-year period under 
conservation cost-share programs, the CRP, market transition 
payments, and loan programs for contract commodities, oilseeds 
and ELS cotton. CFO contract holders shall agree to forego 
eligibility to participate in the above programs and comply 
with a conservation plan consistent with a state plan designed 
to protect wildlife, improve water quality and reduce soil 
erosion. (Section 103)
      The House bill contains no similar provisions.
      The Conference substitute adopts the Senate provisions 
with amendments that reduce estimated outlays under the CFO to 
$120 million during the seven-year period and delete market 
transition payments from the payments a producer will receive 
under a CFO contract. (Section 335)
(45) Conforming amendments
      The Senate amendment repeals authorizations for the 
Agricultural Conservation Program, the Great Plains 
Conservation Program, the Colorado River Basin Salinity Control 
Program (Section 202(c) of the Colorado River Basin Salinity 
Control Act), the Rural Environmental Conservation Program, the 
Agricultural Water Quality Incentives Program, and technical 
assistance for water resources (Subtitle F of Title XII of the 
Food Security Act of 1985) are repealed. Various technical 
amendments are made to reflect the fact that EQIP replaces the 
functions of many of the repealed programs. (Section 355)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provisions 
with an amendment that maintains some provisions of the 
Colorado River Basin Salinity Control Act. (Section 336)
(46) Mandatory expenses
      The House bill requires that, for each of fiscal years 
1996 through 2002, the Secretary shall use the funds of the 
Commodity Credit Corporation to carry out the Conservation 
Reserve Program, Wetlands Reserve Program, and the 
Environmental Quality Incentives Program. (Section 301)
      The Senate amendment contains similar provisions. 
(Section 341)
      The Conference substitute adopts the House provisions. 
(Section 341)
(47) EQIP funding
      The House bill requires that, for each of fiscal years 
1996 through 2002, $200 million of the funds of the Commodity 
Credit Corporation shall be available for providing technical 
assistance, cost-sharing payments, and incentive payments. In 
each year, at least 50% of the EQIP funding shall be targeted 
to practices relating to livestock production. (Section 301)
      The Senate amendment contains similar provisions with the 
exception of a proviso that 50% of the EQIP funding shall go 
for practices relating to livestock production. (Section 314)
       The Conference substitute adopts the Senate provisions 
with an amendment limiting funding to $130 million in fiscal 
1996 and $200 million in each of fiscal years 1997-2002. 
(Section 341)
(48) Administration--Plans
       The Senate amendment requires the Secretary, to the 
extent practicable, to avoid duplication in conservation plans 
required for highly erodible land conservation under subtitle 
B, CRP, WRP and EQIP. (Section 314)
       The House bill contains no similar provision.
       The Conference substitute adopts the Senate provision. 
(Section 341)
(49) Acreage limitation
       The Senate amendment prohibits the Secretary from 
enrolling more than 25% of the cropland in any county in CRP or 
WRP. Not more than 10% of the cropland in a county may be 
subject to an easement acquired under the subchapters. The 
Secretary may exceed the limitations if the Secretary 
determines that the action would not adversely affect the local 
economy of a county and that operators in the county are having 
difficulties complying with conservation plans implemented 
under section 1212. The limitations established under this 
subsection shall not apply to cropland that is subject to an 
easement under CRP, WRP or the Environmental Easement Program 
that is used for the establishment of shelterbelts and 
windbreaks. (Section 314)
       The House bill contains no similar provision.
       The Conference substitute adopts the Senate provision 
with an amendment deleting the reference to the Environmental 
Easement Program. (Section 341)
(50) Tenant protection
       The Senate amendment states that, except for a person 
who is a tenant on land that is subject to a CRP contract that 
has been extended by the Secretary, the Secretary shall provide 
adequate safeguards to protect the interests of tenants and 
sharecroppers, including provision for sharing, on a fair and 
equitable basis, in payments under commodity programs (as 
modified by to highly erodible land and wetland conservation 
provisions), CRP or WRP. (Section 314)
       The House bill contains no similar provision.
       The Conference substitute adopts the Senate provision. 
(Section 341)
(51) Regulations
       The Senate amendment requires that, not later than 90 
days after the effective date of this subsection, the Secretary 
shall issue regulations to implement the changes to CRP and 
WRP. (Section 314)
       The House bill contains no similar provision.
       The Conference substitute adopts the Senate provision. 
(Section 341)
(52) Advance appropriations to CCC
       The Senate amendment permits the Secretary to use the 
funds of the Commodity Credit Corporation to carry out the 
Environmental Easement Program, subject to prior 
appropriations. (Section 314)
       The House bill contains no similar provision.
       The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(53) Authority to use outside agencies
       The House bill eliminates authority for the Secretary to 
use the Fish and Wildlife Service, land grant institutions, 
county and state committees and other governmental entities in 
carrying out conservation programs. (Section 303)
       The Senate amendment contains no similar provision.
       The Conference substitute adopts the Senate position, 
which deletes the provisions of the House bill.
(54) State Technical Committees
       The Senate amendment amends Section 1261(c) of the Food 
Security Act of 1985 to add representatives of the following 
groups to the existing State Technical Committees: agricultural 
producers, other nonprofit organizations with demonstrable 
expertise, persons knowledgeable about the economic and 
environmental impact of conservation techniques and programs, 
and agribusiness.
       The House bill contains no similar provisions.
       The Conference substitute adopts the Senate position 
with an amendment that provides for representation on state 
technical committees of producers, representatives of nonprofit 
organizations with demonstrable expertise, persons 
knowledgeable about conservation techniques, and agribusiness, 
and provides for public notice of, and attendance at, meetings. 
(Section 342)
(55) National Natural Resources Conservation Foundation
       The Senate amendment establishes a National Natural 
Resources Conservation Foundation as a charitable and nonprofit 
corporation for charitable, scientific, and educational 
purposes, including:
       (1) promotion of innovative solutions to the problems 
associated with the conservation of natural resources on 
private lands, particularly with respect to agriculture and 
soil and water conservation;
             (2) promotion of voluntary partnerships between 
        government and private interests in the conservation of 
        natural resources;
             (3) to conduct research and undertake educational 
        activities, conduct and support demonstration projects, 
        and make grants to State and local agencies and 
        nonprofit organizations;
             (4) to provide such other leadership and support 
        as may be necessary to address conservation challenges, 
        such as the prevention of excessive soil erosion, 
        enhancement of soil and water quality, and the 
        protection of wetlands, wildlife habitat, and 
        strategically important farmland subject to urban 
        conversion and fragmentation;
            (5) to encourage, accept, and administer private 
        gifts of money and real and personal property for the 
        benefit of, or in connection with, the conservation and 
        related activities and services of the Department, 
        particularly the Natural Resources Conservation 
        Service;
            (6) to undertake, conduct, and encourage 
        educational, technical, and other assistance, and other 
        activities, that support the conservation and related 
        programs administered by the Department (other than 
        activities carried out on National Forest System 
        lands), particularly the Natural Resources Conservation 
        Service, except that the Foundation may not enforce or 
        administer a regulation of the Department; and
            (7) to raise private funds to promote the purposes 
        of the Foundation.
      The amendment authorizes an appropriation to the 
Department, to be made available to the Foundation, $1,000,000 
for each of fiscal years 1997 through 1999 to initially 
establish and carry out activities of the Foundation. (Sections 
331-340)
             The House bill contains no similar provisions.
            The Conference substitute adopts the Senate 
        provisions. (Sections 351-360)
(56) Forestry
       The Senate amendment amends Section 4 of the Cooperative 
Forestry Assistance Act of 1978 is amended by striking the 
provision that terminates the Forestry Incentives Program 
December 31, 1995. It also amends Section 2405 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 by an 
authorization for appropriation of such sums as are necessary 
to carry out the activities of the Office of International 
Forestry. (Section 352)
       The House bill contains no similar provisions.
       The Conference substitute adopts the Senate provisions 
with amendments to limit the authorizations for the Forestry 
Incentives Program and the Office of International Forestry to 
2002, to make the authorization for the Office of International 
Forestry subject to appropriations, and to provide authority 
for the Secretary to make grants to states under the Forest 
Legacy Program. (Sections 371, 373, 374)
(57) Cooperative work for protection, management, and improvement of 
        National Forest System
      The Senate amendment authorizes cooperative work for the 
protection, management, and improvement of the National Forest 
System and permits payments for such work to be made from any 
appropriation of the Forest Service that is available for 
similar work if reimbursement is made by the cooperator in the 
same fiscal year. (Section 545)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provisions. 
(Section 372)
(58) CCC Charter Act
      The Senate amendment amends the CCC Charter Act to 
include conservation functions and programs among the purposes 
for which the Secretary may utilize the CCC. (Section 355)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provisions 
with an amendment permitting the use, after January 1, 1997, of 
CCC funding for conservation and environmental programs 
authorized by law. (Section 381)
      The Managers stress that this provision is not intended 
to preclude the Secretary from utilizing the CCC to fund 
conservation and environmental programs appropriately 
authorized by law on or before January 1, 1997.
(59) Floodplain easements
      The Senate amendment amends Section 403 of the 
Agricultural Credit Act of 1978 to permit the Secretary to 
purchase floodplain easements. (Section 359)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 382)
(60) Resource Conservation and Development Program reauthorization
      The Senate amendment reauthorizes the Resource 
Conservation and Development Program through 2002. (Section 
360)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 383)
(61) Repeal of report requirement
      The Senate amendment rescinds the requirement for the 
printing of multiple copies of USDA soil surveys. (Section 362)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 384)
(62) Flood risk reduction
      The Senate amendment establishes a flood risk reduction 
program for fiscal years 1996 through 2002, under which the 
Secretary may enter into a contract with a producer with 
contract acreage under title I on a farm with land that is 
frequently flooded. Under the terms of the contract, with 
respect to acres that are subject to the contract, the producer 
must agree to: the termination of any contract acreage; forgo 
loans for contract commodities, oilseeds and extra long staple 
cotton; not apply for crop insurance issued or reinsured by the 
Secretary; comply with applicable wetlands and highly erodible 
land conservation compliance requirements; not apply for any 
conservation program payments from the Secretary; not apply for 
disaster program benefits provided by the Secretary; and refund 
the payments, with interest, issued under the contract to the 
Secretary if the producer violates the terms of the contract or 
if the producer transfers the property to another person who 
violates the contract. In return, the Secretary shall agree to 
pay the producer for the 1996 through 2002 crops not more than 
the projected contract payments under title I, and other 
savings from appropriated programs. The Secretary shall carry 
out the program through the CCC. (Section 351)
      The House bill contains no similar provision.
      The Conference substitute adopts the Senate provisions 
with a technical amendment. (Section 385)
(63) Conservation of private grazing land
      The Senate amendment authorizes the Secretary of 
Agriculture to provide a coordinated technical, educational, 
and related assistance program to conserve and enhance private 
grazing land resources. Subject to the availability of 
appropriations, the Secretary will establish a voluntary 
program to provide technical, educational, and related 
assistance to owners and managers of private grazing land and 
public agencies, through local conservation districts, to 
enable the landowners, managers, and public agencies to 
voluntarily carry out activities including: maintaining and 
improving private grazing land and the multiple values and uses 
that depend on private grazing land; implementing grazing land 
management technologies; managing resources on private grazing 
land, including planning, managing, and treating private 
grazing land resources, ensuring the long-term sustainability 
of private grazing land resources, harvesting, processing, and 
marketing private grazing land resources and identifying and 
managing weed, noxious weed, and brush encroachment problems; 
protecting and improving the quality and quantity of water 
yields from private grazing land; maintaining and improving 
wildlife and fish habitat on private grazing land; enhancing 
recreational opportunities on private grazing land; maintaining 
and improving the aesthetic character of private grazing lands; 
and identifying the opportunities and encouraging the 
diversification of private grazing land enterprises. There are 
authorized to be appropriated to carry out this section $20 
million for fiscal 1996, $40 million for fiscal 1997 and $60 
million for fiscal 1998 and each subsequent fiscal year. 
(Section 354)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provisions 
with an amendment deleting a specific reference to the Natural 
Resources Conservation Service in the description of the 
program. (Section 386)
(64) Wildlife Habitat Incentives Program
      The Senate amendment authorizes a Wildlife Habitat 
Incentives Program to promote implementation of various 
management practices to improve wildlife habitat. The program 
would receive $10 million in funding annually from the 
Conservation Reserve Program, with total expenditures of $60 
million over seven years. (Section 554)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provisions 
with an amendment reducing the total funding to $50 million 
over seven years. (Section 387)
      The Managers intend that the cost-share payments made 
under WHIP not exceed 75 percent of the total cost to an 
eligible landowner for developing a wildlife management plan 
and implementing eligible activities under the plan.
      The Managers intend that the Secretary, in developing a 
list of approved activities and practices, shall attempt to 
achieve landowner and public purposes including: 1) upland 
wildlife management measures; 2) wetland wildlife management 
measures; 3) threatened and endangered species management 
measures; 4) fisheries management measures, and; 5) other 
activities approved by the Secretary.
(65) Clarification of effect of resource planning on allocation and use 
        of water
      The Senate amendment amends Section 6 of the Forest and 
Rangeland Renewable Resources Planning Act of 1974 to stipulate 
that nothing in the section shall limit any right of authority 
of a state to allocate water flows. The Secretary of 
Agriculture is prohibited from requiring a restriction of the 
operation, use, repair or replacement of an existing water 
supply facility as a condition of the renewal of a right-of-way 
granted under Section 501 of the Federal Land Policy and 
Management Act of 1976. (Section 557).
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate position with 
an amendment striking the provisions of the Senate amendment 
and providing for an 18-month moratorium on any Forest Service 
decision to require bypass flows or any other relinquishment of 
the unimpaired use of a decreed water right as a condition of 
renewal or reissuance of a land use permit. The moratorium 
shall not affect the obligations or the authority of the 
Secretary to protect public health and safety or to comply with 
the Endangered Species Act or applicable state law. A task 
force shall also be appointed to study several issues regarding 
water rights as they apply to Forest Service activities and 
report to the Secretary, the Speaker of the House of 
Representatives and the chairmen of relevant Senate committees 
within one year. (Section 389)
      The Managers believe that these provisions are required 
because the Forest Service has recently imposed, or attempted 
to impose, by-pass flows to achieve the secondary purposes of 
the National Forests. This contradicts former USDA policy and 
has raised questions about their statutory authority in this 
area. Nothing in this section changes current law regarding the 
allocation of water or rights to the use of water, and the 
expiration of the moratorium is not intended to be a 
recognition or grant of authority to the Forest Service for 
imposition of by-pass flows. Further, the moratorium imposed by 
this section is not intended to interfere with the ability of 
the Forest Service to negotiate or comply with requirements of 
voluntary agreements concerning the use of National Forest 
lands for water supply facilities. It is also not the intent of 
this language to interfere with the duties of the Secretary 
under the Endangered Species Act.
      It is also the intent of the Managers that the Board 
established in this section will carry out its duties in a 
professional, non-partisan manner, and that membership on the 
Board will consist of individuals with expertise in Western 
water law and public land law.
(66) Everglades Agricultural Area
      The House bill provides $210 million to the Secretary of 
the Interior to conduct restoration activities in the 
Everglades ecosystem, ``which may include acquiring private 
acreage in the Everglades Agricultural Area including'' the 
``Talisman tract'' by December 31, 1999. (Section 507)
      The Senate amendment contains similar provisions except 
that $200 million is provided to the Secretary of the Interior. 
(Section 506)
      The Conference substitute adopts the Senate provision 
with an amendment to provide an additional $100 million, 
contingent upon land acquisition within the State of Florida. 
(Section 390)
(67) Advisory Board on Agricultural Air Quality
      The Senate amendment establishes a board to advise the 
Secretary of Agriculture on scientific questions relating to 
airborne particulate matter and gases that may be issues under 
the Clean Air Act. The board would be comprised of 17 members, 
including the Chief of the Natural Resources Conservation 
Service, agricultural producers, other representatives of the 6 
NRCS regions, and an atmospheric scientist. (Section 551)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provisions 
with amendments clarifying that interagency oversight 
coordination required by the Secretary shall be made to the 
extent practicable. (Section 391)
(68) Environmental Easement Program
      The Senate amendment reauthorizes the Environmental 
Easement Program through 2002. (Section 355)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(69) Water Bank Program
      The Senate amendment amends Section 1230 of the Food 
Security Act of 1985 by adding a provision that acreage 
currently enrolled in the Water Bank Program authorized by the 
Water Bank Act shall be considered to have been enrolled in the 
CRP on the date the acreage was enrolled in the Water Bank 
program. Payments shall continue at the existing water bank 
rates. (Section 356)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(70) Flood water retention pilot projects
      The Senate amendment permits the Secretary to establish 
pilot projects for 2 years in duration to restore natural water 
retention areas to control storm water and snow melt runoff 
within closed drainage systems. Such projects shall provide 
cost-sharing and technical assistance for the establishment of 
nonstructural landscape management practices, including 
agricultural tillage practices and restoration, enhancement, 
and creation of wetland characteristics. Funding provided by 
the Secretary shall not exceed $10,000,000 per project and 
shall be carried out through the CCC. (Section 357)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(71) Watershed Protection and Flood Prevention Act amendments
      The Senate amendment amends the Watershed Protection and 
Flood Prevention Act to include several new priorities for 
funding, make nonprofit organizations eligible for funding, and 
authorize the Secretary of Agriculture to accept transfers of 
funds from other federal departments and agencies to carry out 
the act. (Section 363)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.
(72) Fund for dairy producers to pay for nutrient management
      The Senate amendment amends the Agricultural Marketing 
Agreements Act of 1937 by allowing each milk marketing order to 
be amended to allow not more than 10 cents per hundredweight to 
be added to the minimum milk price for the purpose of 
environmental nutrient management. (Section 501)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House position, 
which deletes the Senate amendment.

                     Title IV--Nutrition Assistance

(1) Disqualification of a store or concern from the Food Stamp Program
      The Senate amendment adds new language to the Food Stamp 
Act to disqualify food stores from participation in the food 
stamp program if the stores employ a person found, within the 
last 3 years, to have traded coupons for firearms, ammunition, 
explosives or drugs or to have trafficked coupons. The Senate 
amendment also changes existing disqualification laws to 
require permanent disqualification of a store for a trafficking 
offense only if the ownership, but not the management, of the 
store was aware of the disqualifying conduct. (Section 401(a))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments that 1) delete the Senate provision 
disqualifying a store which has employed a person found, within 
the last 3 years, to have traded coupons for firearms, 
ammunition, explosives or drugs or to have trafficked coupons, 
and 2) add a provision permitting a civil money penalty in lieu 
of disqualification of a store or concern if there has been no 
more than one prior trafficking violation by store management. 
(Section 401(a))
(2) Employment and training in the Food Stamp Program
      The Senate amendment continues the requirement that the 
Secretary allocate $75 million annually to carry out the 
employment and training program through fiscal year 2002. 
(Section 401(b))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 401(b))
(3) Authorization of pilot projects in the Food Stamp Program
      The Senate amendment reauthorizes the seven pilot 
projects, begun in 1981, that pay cash, in lieu of coupons, to 
households composed entirely of elderly or SSI recipients 
through fiscal year 2002. (Section 401(c))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 401(c))
(4) Outreach demonstration projects in the Food Stamp Program
      The Senate amendment extends the authorization for 
appropriations through fiscal year 2002 for outreach 
demonstration projects. (Section 401(d))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 401(d))
(5) Authorization for appropriations of the Food Stamp Program
      The Senate amendment extends the authorization for 
appropriations for the food stamp program through fiscal year 
2002. (Section 401(e))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize appropriations for the program 
through September 30, 1997. (Section 401(e))
(6) Authorization of Puerto Rico Nutrition Assistance Program
      The Senate amendment requires the payment for the Puerto 
Rico Nutrition Program block grant of $1.143 billion for FY96, 
$1.174 billion for FY97, $1.204 billion for FY98, $1.236 
billion for FY99, $1.268 billion for FY00, $1.301 billion for 
FY01, $1.335 billion for FY02. (Section 401(f))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 401(f))
(7) Funding for American Samoa Nutrition Assistance Program
      The Senate amendment adds a provision to provide that the 
Secretary may pay to American Samoa not more than $5.3 million, 
each fiscal year, of funds appropriated to carry out the food 
stamp program to fund a nutrition assistance program through 
fiscal year 2002. (Section 401(g))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment requiring the Secretary to fund the American 
Samoa Nutrition Assistance program at up to $5.3 million 
annually, beginning October 1, 1995. The amendment also allows 
the Secretary of Agriculture to provide grants not to exceed $1 
million in fiscal year 1996 and $2.5 million in each of fiscal 
years 1997 to 2002, to establish and carry out community food 
security projects to better meet the food needs of low-income 
individuals. (Section 401(g)-(h))
      The Managers note that although the projects must be 
community-based, applicants with a national or regional scope 
should be considered for grant awards if they seek to fund 
appropriate community-based projects in several locations. In 
addition, applications for projects designed to provide 
training and technical assistance to entities developing 
appropriate community food security projects should be 
considered for grant funding.
      Applicants must be non-profit organizations, but may use 
all available resources, including those of for-profit 
entities. Grants are authorized for up to three year periods, 
acknowledging that new projects or expanding projects may need 
a planning phase prior to actual implementation of the project.
      Because the projects funded by this grant authority will 
be community-based and funded substantially by non-federal 
sources, it is not expected that any one grant should command a 
significant portion of the total grant authority. The Managers 
believe there will be many worthy projects applying for grant 
awards in each of the next 7 years, and expect the Secretary to 
make many awards each year to the most worthwhile of the grant 
applicants.
(8) Commodity Distribution Program; Commodity Supplemental Food 
        Program--Reauthorization
      The Senate amendment amends the Agriculture and Consumer 
Protection Act of 1973 to authorize the commodity distribution 
program and the Commodity Supplemental Food Program through 
fiscal year 2002. (Section 402(a))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 402(a))
(9) Commodity Distribution Program; Commodity Supplemental Food 
        Program--Funding
      The Senate amendment authorizes administrative funding 
for CSFP through fiscal year 2002 and reauthorizes a provision 
requiring certain amounts of CCC surplus dairy products be 
transferred to CSFP. (Section 402(b))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 402(b))
(10) Commodity Distribution Program; Commodity Supplemental Food 
        Program--Carried-Over Funds
      The Senate amendment requires that 20 percent of any 
carried over CSFP funds for food be available for program 
administration. (Up to 20% of the annually appropriated CSFP 
funds may be used for administration). (Section 402(c))
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 402(c))
(11) Emergency Food Assistance Program
      The Senate amendment amends the Emergency Food Assistance 
Act of 1983 to reauthorize the Emergency Food Assistance 
Program (TEFAP) through fiscal year 2002. (Section 403)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 403)
(12) Soup Kitchen and Food Bank Program
      The Senate amendment amends the Hunger Prevention Act of 
1988 to reauthorize the Soup Kitchen and Food Bank Program 
through fiscal year 2002. (Section 404)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 404)
(13) National commodity processing
      The Senate amendment amends the Agriculture and Food Act 
of 1981 to reauthorize the National Commodity Processing 
Program through fiscal year 2002. (Section 405)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 405)
      The Managers declined to adopt a provision that would 
convert the Model Good Samaritan Food Donation Act (Pub. L. 
101-610) to federal law, eliminating differences in various 
state laws and attempting to develop greater opportunity for 
partnerships between private and non-profit entities involved 
in feeding programs. While the Managers commend the 
philanthropic intent of such legislation, the Managers 
understand possible implications of preempting state laws and 
acknowledge jurisdictional complications. It was agreed that 
this subject has ample merit for full Congressional hearings.

                    Title V--Agricultural Promotion

             Subtitle A--Commodity Promotion and Evaluation

      The Senate amendment requires that not more than every 
three years, or three years after enactment of a program, the 
Secretary shall require that each industry-funded generic 
promotion program for agricultural commodities shall provide 
for an independent evaluation of the effectiveness of the 
program, which may include an analysis of benefits, costs and 
the efficacy of promotional and research efforts undertaken by 
the program and is to be funded from industry assessments and 
to be made available to the public. The amendment also requires 
that the Secretary shall provide annually information to the 
House and Senate Agriculture Committees about the 
administrative expenses of industry-funded promotion programs. 
(Section 961)
      The House has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment defining commodity promotion law, containing 
congressional findings with respect to generic promotion 
programs, and requiring an independent evaluation of promotion 
program effectiveness not less than every five years. (Section 
501)
      The Managers also accepted an amendment authorizing the 
Secretary to issue nationwide promotion, research and 
information orders applicable to agricultural commodity 
producers, first handlers and others in the marketing chain if 
appropriate, and importers if assessed under the order. The 
Secretary is required to publish the proposal for notice and 
comment, and to issue the proposed order (if agreed to do so) 
not later than 270 days after publication of the proposed 
order. Amendments on promotion program evaluations and 
promotion board funds for conservation purposes were adopted. 
The Managers also agreed to an amendment requiring the 
maintenance of records for the Honey Promotion Program by 
producers. (Section 591)
      In authorizing the establishment of an industry financed 
generic promotion, research and information program, the 
Managers adopted provisions to allow the Secretary to grant an 
annual credit for branded activities to farmer owned 
cooperatives which engage in such activities. The Managers 
recognize the important role of farmer-owned cooperatives in 
carrying-out industry financed generic promotion, research and 
information activities for and on behalf of their members. The 
Managers also recognize that in many cases, such cooperative 
marketing efforts have involved the successful establishment of 
specific brands for many agricultural products. Further, that 
producers through their cooperatives have invested and continue 
to invest significant resources related to market research, 
promotion and advertising to enhance the sale of the products 
and improve their income.
      Accordingly, the Managers agree that the Secretary may 
provide an annual credit for such expenditures which would be 
deducted from any assessment that would otherwise be required 
for conducting a generic program authorized under this title. 
Such contributions and expenditures would be fully documented 
in order to be eligible for such credit. This would ensure that 
producers would be able to engage in such cooperative marketing 
activities without adding to their cost relative to other 
industry members. (Sections 511-526)

                    Subtitle C--Canola and Rapeseed

      The Senate amendment authorizes the Secretary to issue an 
order for a canola and rapeseed promotion program upon request 
of the industry. A Board of fifteen members is established with 
not more than four producer members of the Board from any one 
state. The Board may assess producers four cents per 
hundredweight of canola or rapeseed produced and marketed in a 
state. In order to achieve industry consensus for a national 
canola check-off program, states with an existing canola check-
off requested and received, a credit of up to two cents per 
hundredweight. The Secretary shall conduct a referendum among 
producers during the period ending thirty months after the date 
the order was issued to determine whether the order was issued 
to determine whether the order should be continued. (Sections 
921-933)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Sections 531-543)

                         Subtitle D--Kiwifruit

      The Senate amendment authorizes the Secretary to issue an 
order for a kiwifruit promotion program upon request of the 
industry. The order should be national in scope and not more 
than one order shall be in effect at any one time. An eleven 
member kiwifruit board is established composed of six 
producers, four importers, and one member of the general 
public. Implementation of the order and rate of assessment is 
to be set by a two-third vote of a quorum of the Board. The 
Secretary shall conduct a referendum of kiwifruit producers and 
importers sixty days prior to effective date of the order and 
may conduct a periodic referendum at the end of a six-year 
period, at the request of the Board, or if not less than thirty 
percent of the kiwifruit producers and importers subject to 
assessment request a referendum. Any change in the order will 
be determined by a majority vote and will take effect at the 
end of the marketing year. (Sections 941-954)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment requiring that producers comprise not less 
than fifty-one percent of the membership of the board. 
(Sections 551-564)

                          Subtitle E--Popcorn

      The Senate amendment authorizes the Secretary to issue an 
order for a popcorn promotion program upon request of the 
industry. A Popcorn Board is established that consists of 
between four and nine members that are selected by the 
Secretary and have terms of three years. The Board may raise or 
lower the rate of assessment annually up to a maximum of eight 
cents per hundredweight of popcorn. These assessments will be 
used to pay expenses incurred and to cover administrative costs 
incurred by the Secretary, but may not exceed fifteen percent 
of the annual revenues of the Board. If the administrative 
costs incurred by the Secretary exceed ten percent of the 
annual revenues of the Board, the Secretary will notify the 
House and Senate Agriculture Committees.
      Sixty days prior to the effective date of the program, 
the Secretary will conduct a referendum among popcorn 
processors. The order only becomes effective if approved by a 
majority of the processors voting, who processed at least 
fifty-one percent of the popcorn certified. No sooner than 
three years after the effective date of the order, the 
Secretary may conduct a referendum on the request of thirty 
percent or more of the popcorn processors for continuation of 
the program. (Sections 901-912)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Sections 571-582)

                            Title VI--Credit

                    SUBTITLE A--FARM OWNERSHIP LOANS

(1) Limitation on direct farm ownership loans
      The Senate amendment provides that U.S. Department of 
Agriculture (USDA) direct farm ownership loans are available 
for farmers and ranchers who have operated a farm or ranch for 
at least 3 years and who--
            are qualified beginning farmers or ranchers with 
        less than 10 years farming experience, or
            have not received a previous direct farm ownership 
        loan, or
            have not received a previous direct farm ownership 
        loan more than 10 years before the date that a new 
        direct farm ownership loan would be made.
      The Senate amendment specifies that the time that a 
borrower has a youth loan under the farm operating loan program 
does not count toward the number of years of experience for 
farm ownership loans. A transition rule provides that existing 
borrowers who have had direct farm ownership loans for less 
than 5 years can obtain additional direct farm ownership loans 
for 10 years from the date of enactment of this Title; those 
existing borrowers who have had direct farm ownership loans for 
5 or more years can obtain additional direct farm ownership 
loans for 5 years from the date of enactment. The Senate 
amendment also repeals an obsolete provision that farm 
ownership loans cannot be restricted solely to borrowers who 
had loans in 1985. (Section 601)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 601)
(2) Purposes of loans
      The Senate amendment specifies that direct farm ownership 
loans can be used for (a) buying farm real estate, (b) making 
capital improvements, (c) paying related loan closing costs, 
and (d) paying for soil and water conservation and protection 
on such property. It also specifies that guaranteed farm 
ownership loans can be used for the same purposes and for 
refinancing existing debt. The Senate amendment repeals 
provisions that allowed farm ownership loans to be used for 
funding recreational uses and facilities and for funding 
enterprises to supplement farm income. It also repeals the 
stipulation that farm ownership loans for improvements include 
non-fossil energy systems.
      The Senate amendment restates preferences in the 
Consolidated Farm and Rural Development Act, as amended (Con 
Act).
      The Senate amendment requires that borrowers have, or 
agree to obtain, hazard insurance on real property acquired or 
improved with farm ownership loan funds. It also requires the 
Secretary of Agriculture to determine within 180 days of 
enactment the appropriate insurance level, including what 
property should be insured. (Section 602)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that directs that a new farm ownership loan 
is not to be made after the date that is 180 days after 
enactment unless the borrower meets the hazard insurance 
requirement. (Section 602)
      While the bill requires hazard insurance on property 
acquired by borrowers with USDA farm ownership loan funds, it 
does not specify the level of insurance that borrowers should 
obtain. Rather, it is the intent of the Managers that the 
Secretary of Agriculture should determine the appropriate 
insurance level and should consider factors such as the nature 
of the property that is pledged as security for the loan, the 
value of the security property and the loan amount, the 
location of a borrower's farming operation, and the costs and 
availability of hazard insurance. Also, the Secretary should 
determine what property should be subject to an insurance 
requirement.
(3) Soil and water conservation and protection
      The Senate amendment repeals allowing farm ownership 
loans to be used for funding residents of rural areas to 
operate small business enterprises and for paying for waste 
pollution abatement and control projects. (Section 603)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 603)
      The Managers note that while the bill is ending the use 
of farm ownership loan funds for various nonfarming purposes, 
such as funding residents of rural areas to operate small 
business enterprises and for paying for waste pollution 
abatement and control projects, there are other federal 
programs available to support such usage, such as those of the 
Small Business Administration to fund small business activities 
and USDA's rural development and conservation programs to fund 
waste pollution projects.
(4) Interest rate requirements
      The Senate amendment allows a 4 percent interest rate on 
a direct farm ownership loan that is being made in conjunction 
with other credit. (Section 604)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that specifies that the interest rate should 
be not less than 4 percent. (Section 604)
(5) Insurance of loans
      The Senate amendment clarifies that a loan guaranteed by 
the Secretary is supported by the full faith and credit of the 
government. (Section 605)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 605)
(6) Loan guaranteed
      The Senate amendment states that a loan can be guaranteed 
for up to 90 percent. It requires a 95-percent guarantee on a 
loan or that portion of a loan that is for refinancing USDA 
direct loans. It also allows a 95-percent guarantee on farm 
ownership loans and farm operating loans made to borrowers who 
participate in the down payment loan program for beginning 
farmers and ranchers. (Section 606)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 606)

                      SUBTITLE B--OPERATING LOANS

(7) Limitation on direct operating loans
      The Senate amendment provides that USDA direct farm 
operating loans are available for farmers and ranchers who
            are qualified beginning farmers or ranchers with 
        less than 5 years farming experience, or
            have not received previous direct farm operating 
        loans, or
            have received a previous direct farm operating loan 
        in 6 or fewer years.
      The Senate amendment specifies that direct farm operating 
loans are available to borrowers without regard to the number 
of years they received youth loans. A transition rule provides 
that existing borrowers who have had direct farm operating 
loans in 4 or more years can obtain additional direct farm 
operating loans in 3 additional years. The Senate amendment 
also repeals the provision that farm operating loans cannot be 
restricted solely to borrowers who had loans in 1985. (Section 
611)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 611)
      It is the intent of the Managers that direct farm 
operating loans be made available to farmers and ranchers for a 
maximum of 7 years. These years may be consecutive, 
nonconsecutive, or a combination of consecutive and 
nonconsecutive.
(8) Purposes of operating loans
      The Senate amendment specifies that direct farm operating 
loans can be made for (a) paying the costs to reorganize the 
farming or ranching operation; (b) purchasing livestock, 
poultry, and farm or ranch equipment; (c) paying farm or ranch 
operating expenses; (d) financing land and water development, 
use, and conservation; (e) paying loan closing costs; (f) 
paying to make additions or alterations to comply with 
occupational safety and health standards; (g) training limited 
resource borrowers in record keeping; (h) farm management 
training; (i) refinancing the debt of direct loan borrowers who 
experience losses caused by a natural disaster or the debt of 
other borrowers who obtained credit from a source other than 
the Secretary; and (j) paying family living expenses, and other 
farm, ranch, or home needs. It also specifies that guaranteed 
farm operating loans can be used for the same purposes, except 
for training limited resource borrowers in record keeping, and 
also for refinancing existing debt.
      The Senate amendment repeals allowing farm operating 
loans to be used for financing recreational enterprises; 
financing other enterprises to supplement farm income; paying 
for developing, constructing, or modifying solar energy 
systems; funding residents of rural areas to operate small 
business enterprises; and paying for pollution abatement and 
control projects.
      The Senate amendment requires that borrowers have, or 
agree to obtain, hazard insurance on any property acquired with 
farm operating loan funds. It also requires the Secretary of 
Agriculture to determine the appropriate insurance level, 
including what property should be insured. Furthermore, the 
Senate amendment allows the Secretary discretion in placing 
funds in a nonsupervised bank account that a borrower can use 
for farm operating and family living expenses. (Section 612)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments on the hazard insurance requirement to direct 
that a new farm operating loan is not to be made after the date 
that is 180 days after enactment unless the borrower meets the 
hazard insurance requirement and on nonsupervised bank accounts 
to provide discretion in placing funds in such accounts, 
restrict the use of loan funds in such accounts for the basic 
family needs of the borrower and the borrower's immediate 
family, and to restrict the size of such an account to an 
amount that is the lesser of 10 percent of the loan, $5,000, or 
the amount needed to provide for basic family needs for three 
calendar months. (Section 612)
      As with farm ownership loan funds, the Managers note that 
while the bill ends the use of farm operating loan funds for 
various nonfarming purposes, such as funding residents of rural 
areas to operate small business enterprises and for paying for 
pollution abatement and control projects, other federal 
programs are available to support such usage.
      Additionally, while the bill requires hazard insurance on 
property acquired by borrowers with USDA farm operating loan 
funds, it does not specifying the level of insurance. It is the 
intent of the Managers that the Secretary should determine the 
appropriate insurance level and should consider factors such as 
the nature of the property that is pledged as security for the 
loan, the value of the security property and the loan amount, 
the location of a borrower's farming operation, and the costs 
and availability of hazard insurance. Also, the Secretary 
should determine what property should be subject to an 
insurance requirement.
(9) Participation in loans
      The Senate amendment repeals the authority to participate 
in farm operating loans with other lenders. (Section 613)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 613)
(10) Line-of-credit loans
      The Senate amendment authorizes direct or guaranteed 
line-of-credit operating loans for up to 5 years. It also 
states that each year in which a borrower takes an advance or 
draws on the line-of-credit counts as one year of eligibility 
for farm operating loans. (Section 614)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that specifies that the line-of-credit is to 
terminate if a borrower does not repay an advance on schedule, 
unless the Secretary determines that the borrower's failure to 
pay was due to unusual conditions that the borrower could not 
control and the borrower will reduce the line-of-credit 
outstanding balance to the scheduled level at the end of the 
production cycle, including the marketing of the borrower's 
agricultural products. The Conference substitute also provides 
that the line-of-credit loan may be used to finance the 
production or marketing of an agricultural commodity that is or 
formerly was eligible for USDA's price and income support 
programs. (Section 614)
      The line-of-credit authority is being provided as a means 
to assist farmers and ranchers by allowing operating plans to 
be established with a set level of funding assured over a set 
period of years. Thus, the need for borrowers to go through an 
annual loan application, review, and approval process in 
multiple years can be avoided. For budget scoring purposes, the 
Managers intend that the approved amount of a line-of-credit 
loan made under this authority should be treated as 1 loan and 
not as multiple separate loans. The Managers want to emphasize 
that there is an important point regarding loan eligibility 
with this provision. Specifically, the maximum number of years 
a borrower can receive direct farm operating loans is set at 7 
in section 611 of this Title. The Managers do not intend for 
the term of a line-of-credit operating loan to apply to a 
borrower's 7 years of eligibility. Rather, it is the intent of 
the Managers that each year that a borrower takes an advance or 
draws on a line-of-credit loan is to count as 1 year of loan 
eligibility. For example, if a 5-year line-of-credit direct 
operating loan is approved and a borrower draws against this 
line-of-credit in 4 years, then the borrower has used 4 years 
of direct farm operating loan eligibility. Thus, in this 
example, the borrower would still be eligible to obtain direct 
farm operating loans in 3 additional years. Furthermore, 
section 617 of this Title, which is amending section 319 of the 
Con Act, has limits on the number of years in which a borrower 
can obtain guaranteed farm operating loans.
      Furthermore, the Managers recognize that unusual 
circumstances could result in a borrower not repaying an 
advance or draw on schedule and, as such, do not intend for the 
line-of-credit to end in the event of those circumstances. For 
example, a borrower may have a crop that is ready to be 
harvested but he or she is delayed in harvesting due to wet 
weather conditions. Also, the borrower may have been able to 
enter into a contract to sell his or her agricultural products 
for a higher price if delivery of the products occurs at a date 
that is after the payment due date. The Managers want to 
emphasize to the Secretary that this exception authority should 
be used only in unusual circumstances and should not become the 
standard mode of operation, and that USDA needs to closely 
monitor borrowers who are granted an exception to ensure that 
they meet their debt obligations.
(11) Insurance of operating loans
      The Senate amendment repeals the authority to insure farm 
operating loans. (Section 615)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 615)
(12) Special assistance for beginning farmers and ranchers
      The Senate amendment repeals the special assistance 
program for beginning farmers and ranchers. (Section 616)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 616)
(13) Limitation on period for which borrowers are eligible for 
        guaranteed assistance
      The Senate amendment restates the Con Act limitation on 
receiving guaranteed farm operating loans after 15 years of 
direct or guaranteed loans. It also modifies the transition 
rule to provide that borrowers who, as of October 28, 1992, had 
a direct or guaranteed loan in 10 or more years can obtain 
guaranteed farm operating loans in 5 additional years after 
October 28, 1992. (Section 617)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 617)

                      SUBTITLE C--EMERGENCY LOANS

(14) Hazard insurance requirement, credit elsewhere test, and linking 
        emergency loans to natural disasters
      The Senate amendment requires that borrowers needed to 
have had hazard insurance on the property damaged or destroyed 
by a natural disaster as a condition for getting USDA emergency 
disaster loan assistance. It also requires the Secretary of 
Agriculture to determine the appropriate insurance level 
including what property should have been insured. (Section 621)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments that (1) direct that an emergency loan is not 
to be made after the date that is 180 days after enactment 
unless the applicant met the insurance requirement, (2) revise 
a current provision to allow the Secretary to waive the credit 
elsewhere test for emergency loans of $100,000 or less, and (3) 
modify another current provision to specifically tie emergency 
loans for changes in crop or livestock operations to natural 
disasters. (Sections 621-623)
      As a measure of protection for the farm loan portfolio, 
individuals must have had hazard insurance on property damaged 
or destroyed as a condition for getting emergency disaster loan 
assistance. The Managers intend that the Secretary determine 
what property should have had insurance coverage. The Managers 
expect that property subject to this requirement would include, 
but not be limited to, farmland, buildings and other 
structures, equipment, livestock, crops, and other farm items.
(15) Maximum emergency loan indebtedness and date for emergency loan 
        security valuation
      The Senate amendment establishes a maximum emergency 
disaster loan indebtedness at $500,000. (Section 622)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that revises a current provision to require 
assets used as collateral for an emergency loan to be valued as 
of the day prior to the disaster. (Sections 624 and 625)
(16) Insurance of emergency loans
      The Senate amendment repeals the authority to insure 
emergency disaster loans. (Section 623)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 626)

                  SUBTITLE D--ADMINISTRATIVE PROVISIONS

(17) Temporary authority to enter into contracts and use of collection 
        agencies
      The Senate amendment authorizes the Secretary of 
Agriculture to use private collection agencies to attempt 
collections on delinquent accounts when agency officials 
determine such usage to be appropriate. (Section 631)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that allows the Secretary of Agriculture to 
contract through September 30, 2002, with an eligible lending 
institution for the purpose of servicing the farm loan 
portfolio, including entering into a pilot project or projects 
for such servicing, and requires the Secretary to report 
annually to the Congress on the results of such contracting. 
(Sections 631 and 632)
      The Secretary is being authorized to use private 
collection agencies to attempt collections on delinquent 
accounts, when USDA officials determine such usage to be 
appropriate, because of concerns that the Department is not 
making the fullest effort to recover on all such accounts. The 
General Accounting Office (GAO) has reported a series of 
deficiencies in this area. Also, while the Congress passed a 
bill in 1994 authorizing USDA to use private attorneys to help 
resolve delinquent accounts, USDA officials have made little 
use of such attorneys even though the agency continues to have 
thousands of delinquent borrowers who owe billion of dollars on 
their delinquent loans.
      Additionally, the Managers understand that the Secretary 
currently has available and uses discretionary authority to 
contract for certain loan servicing activities, such as 
appraisals of farm property. The Managers encourage the 
Secretary to continue to use the current authority and also to 
use the new authority that is being provided to contract for 
additional loan servicing activities. One or more pilot 
projects involving servicing of the farm loan portfolio may 
prove of considerable benefit to the Department; in addition to 
having the farm loan accounts of more than 100,000 borrowers to 
service, USDA also has to process and approve new farm loan 
applications and to manage and dispose of farm inventory 
properties.
(18) Notice of Loan Service Programs, Borrower Statements, Borrower 
        Reviews, Veterans Preference, and Verification of Credit 
        Elsewhere Test
      The Senate amendment reduces the mandated time frame for 
notifying delinquent borrowers of available loan servicing 
options to 90 days after a loan payment is due. (Section 632)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments that (1) require statements submitted by 
borrowers should be appropriate written financial statements; 
(2) require the appropriate USDA county or area committee to 
certify in writing that an annual review of the credit history 
and business operation of a borrower has been performed and 
that a review has been made of the continued eligibility of the 
borrower for the loan; (3) extend veterans preference for loans 
to cover veterans of any war involving the United States; and 
(4) allow the Secretary of Agriculture to submit to lenders, 
without borrower approval, a prospectus of a borrower to verify 
that the borrower cannot receive credit elsewhere and require 
the Secretary to notify a borrower when a prospectus is 
provided to lenders. (Sections 633-637)
(19) Sale of property and easements on inventoried properties
      The Senate amendment modifies guidance on disposing of 
farm inventory properties. It requires the Secretary to offer 
to sell farm inventory property, except for any located on an 
Indian reservation, as follows:
            to qualified beginning farmers and ranchers at 
        current market value within 75 days of taking farm 
        property into inventory and
            if an acceptable offer is not received by the 75th 
        day, within 30 days to the highest bidder, and if no 
        acceptable bid is received, by negotiated sale for the 
        best price obtainable.
      The Senate amendment provides that if more than one 
qualified beginning farmer or rancher offers to purchase a 
property, the Secretary is required to select between the 
qualified applicants on a random basis. It stipulates that the 
results of the Secretary's random selection is not appealable.
      The Senate amendment also provides that farm properties 
in inventory that are leased are to be offered for sale 
according to this pattern within 60 days after the current 
lease expires. Farm properties in inventory that are not leased 
are to be offered for sale according to this pattern within 60 
days of enactment.
      The Senate amendment provides that farm properties are 
not to be leased. An exception provides that the Secretary may 
lease or contract to sell a farm property to a beginning farmer 
or rancher if the person qualifies for a credit sale or a 
direct farm ownership loan but credit sale authority for loans 
or direct farm ownership loan funds are not available. In 
determining the rental rate to be charged to a beginning farmer 
or rancher, the Senate amendment requires the Secretary to take 
into consideration the income producing capability of the 
property during the term that the property is leased.
      The Senate amendment requires the Secretary to provide 
for an expedited, higher-level review of a local decision that 
denies an applicant's eligibility as a beginning farmer or 
rancher for acquiring a farm inventory property if the person 
requests a review. It stipulates that the results of such a 
review shall not be appealable by the applicant. The Senate 
amendment also requires that the Secretary accumulate 
statistics on the extent of such review requests, including the 
results of such reviews, and if those reviews adversely impact 
on selling farm inventory property to beginning farmers and 
ranchers and disposing of properties from inventory.
      Furthermore, the Senate amendment provides that real 
property located on an Indian reservation and pledged as 
security for a farm loan can be transferred to the Department 
of the Interior or to the tribe that has jurisdiction over the 
reservation rather than USDA foreclosing and taking the 
property into inventory if a borrower defaults. (Section 633).
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment that specifies that the transfer of loan 
security property to Interior or to an Indian tribe applies to 
property pledged as collateral by an Indian borrower-owner. The 
Conference substitute also modifies current guidance on the 
placing of wetland conservation easements on USDA's farm 
inventory property to prohibit the Secretary of Agriculture 
from establishing perpetual conservation easements on land that 
was cropland at the time it entered the inventory or that was 
used for farming within five years of the date that it entered 
inventory. (Sections 638 and 639)
      Changes are being made to the real property disposal 
provisions in the Con Act in order to provide beginning farmers 
and ranchers with the first opportunity to acquire the 
properties and to expedite the disposal of farm inventory 
properties from USDA's inventory, which will in turn reduce the 
substantial expense that the Department incurs in managing 
these properties. Also, competitive sales could result in 
increased revenues, which would offset prior loan losses. While 
the bill requires the Secretary to expedite the sale of farm 
inventory property, the Managers recognize that the Secretary 
may be delayed in offering property for sale if such property 
has been or is suspected of having been contaminated by a 
hazardous material as defined in appropriate federal 
environmental legislation. Such delay in offering farm 
properties for sale shall be limited to the time absolutely 
necessary to identify and resolve any contamination issues in 
accordance with applicable federal law. The Managers also 
recognize that the Secretary may be delayed in offering farm 
inventory property for sale in order to determine whether to 
place an easement on such property or to transfer such property 
in accordance with section 354 of the Con Act. It is the 
position of the Managers that such delays should generally be 
limited to not more than 60 days. Also, if USDA acquires a farm 
property that has an existing easement for conservation or 
other purposes, the easement should remain on the property when 
it is sold.
(20) Definitions 3
       The Senate amendment changes one part of the definition 
of a qualified beginning farmer or rancher for farm ownership 
loan eligibility by increasing to 25 percent the amount of land 
that a person may own. It also provides that the owned-acreage 
provision does not apply to farm operating loan eligibility.
       The Senate amendment defines ``debt forgiveness'' as 
reducing or terminating a farm loan in a manner that results in 
a loss through (a) write-downs or write-offs under the 
restructuring process, (b) write-offs under the debt settlement 
process, (c) loss payments on guaranteed loans, and (d) 
discharges of debt as a result of bankruptcy. (Section 634)
       The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 640)
(21) Authorization for loans and contracts on loan security properties
       The Senate amendment provides loan authorization levels 
for the fiscal year 1996-2002 period. It specifies the portion 
of the direct farm ownership and operating loans that are 
reserved during each year for qualified beginning farmers and 
ranchers. It also provides that these funds are reserved until 
September 1st of each fiscal year.
       The Senate amendment modifies a current provision in the 
Con Act by reserving a portion of the available guaranteed farm 
ownership and operating loans during each year for beginning 
farmers and ranchers. It stipulates that these funds are 
reserved until April 1st of each fiscal year.
       Additionally, the Senate amendment modifies a current 
requirement concerning the transfer of unobligated loan funds 
to provide that available unsubsidized guaranteed operating 
loan funds shall be transferred on and after August 1 of any 
fiscal year to the direct farm ownership loan program for 
funding approved down payment loans. It provides that funds are 
to be transferred on and after September 1 for funding approved 
farm ownership loans to beginning farmers and ranchers. 
Furthermore, the Senate amendment provides that available 
emergency disaster loan funds may be transferred on and after 
September 1 to fund the credit sale of farm inventory property. 
The Senate amendment is specifying that any transfer of funds 
under this authority is to be limited so that all guaranteed 
farm operating loans and emergency disaster loans that have 
been approved, or will be approved, during a fiscal year will 
be made to the extent of appropriated amounts. (Section 635)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment that targets 60 percent of the direct farm 
ownership loan funds reserved for beginning farmers and 
ranchers to those who participate in the down payment loan 
program. The Conference substitute also modifies current 
guidance covering easements on loan security property to 
provide that rather than placing easements on such properties, 
the Secretary is authorized to enter into contracts with 
borrowers for conservation, recreation, and wildlife purposes. 
(Sections 641 and 642)
       The bill is targeting USDA's farm loan funds to 
beginning farmers and ranchers and requiring that if a 
qualified beginning farmer or rancher applies for direct farm 
ownership loan funding through the regular or the section 310E 
down payment loan program, then the Secretary is to fund the 
person through the program under which the person applies for 
funding, providing that he or she meets the eligibility 
criteria and funds are available. Thus, if a qualified 
beginning farmer or rancher seeks assistance under the down 
payment program and if funds are available, the Secretary is to 
fund the person under that program. It is the intent of the 
Managers that the applicant decide whether or not to 
participate in the down payment program.
(22) List of certified lenders and inventory property demonstration 
        project
       The Senate amendment replaces outdated references to the 
Farmers Home Administration and updates a requirement 
concerning maintaining a listing of commercial lenders who 
participate in the guaranteed farm loan program. It also 
deletes an expired demonstration project covering inventory 
property of the Farm Credit System.
       The Senate amendment also extends the authority to make 
guaranteed farm loans at subsidized interest rates under the 
interest rate reduction program through fiscal year 2002. 
(Section 636)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
but deletes the interest rate reduction change since the 
extension of this program was enacted with the passage of P.L. 
104-105 on February 10, 1996. (Section 643)
(23) Homestead property
       The Senate amendment reduces the time period for 
borrowers to apply for homestead property to within 30 days 
from acquisition by the Secretary of Agriculture, or to within 
30 days of enactment for property in inventory. It also changes 
the time period for notifying borrowers of homestead rights to 
the date the Secretary acquires the property, or to within 5 
days of enactment for property in inventory. (Section 637)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate amendment. 
(Section 644)
       The Managers want to emphasize that these changes do not 
preclude former owners from reacquiring homestead property; 
rather, the changes reduce the time frame for USDA to notify 
former owners of their homestead rights and for the former 
owners to apply for the property. These revisions are being 
made to conform to the changes being made in the disposal of 
farm inventory properties including the targeting of such 
properties to beginning farmers and ranchers. The shortened 
timeframes for notification and for former owners to apply for 
the homestead portion of the properties will facilitate the 
disposal of farm properties from inventory. In addition, in 
advertising real property for sale under section 335 of the Con 
Act, as revised by this Title, the Managers expect the 
Secretary to provide notice that a portion of a property may be 
subject to the homestead preservation rights of the former 
owner.
(24) Restructuring
       The Senate amendment revises the restructuring 
calculation to provide a restructured borrower with a cash flow 
margin of up to 10 percent. It provides that the obligations of 
a borrower who does not qualify to be restructured shall 
terminate if the person makes a payment equal to the current 
market value of loan security property. It also repeals 
requiring recapture agreements with borrowers who buy out their 
debt obligations at current market value and deletes an 
exception that allows certain borrowers who acted in ``bad 
faith'' to be eligible to obtain buy-outs.
       The Senate amendment also repeals the provision that 
calls for the creditworthiness of a borrower whose loan 
obligations have been restructured to be determined without 
regard to the restructuring. (Section 638)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate amendment. 
(Section 645)
       The mandated restructuring process is being revised to 
increase the cash flow margin (income to expenses) of 
restructured borrowers so as to place them in a more 
financially viable position following the completion of 
restructuring and, thus, to increase their chances for success. 
Prior to the 1990 Farm Bill, a borrower qualified for 
restructuring when projected income met projected expenses. 
Because many of the borrowers who were restructured were 
financially weak following the restructuring, with low cash 
flows and high debt-to-asset ratios, the 1990 Farm Bill 
provided for additional relief through a 5-percent debt service 
margin. However, it is now apparent that this adjustment was 
not sufficient to put restructured borrowers in a financially 
viable position. This is reflected in the fact that thousands 
of borrowers have defaulted again after being restructured; 
some have then had additional restructuring, others bought out 
at the net recovery value, and others went through debt 
settlement.
       The guidance on the termination of loan obligations for 
borrowers who do not qualify for restructuring is also being 
changed to provide that the person should make a payment to the 
Secretary that equals the current market value of loan security 
property and to end the requirement that such borrowers enter 
into recapture agreements covering any subsequent disposal of 
property. These changes were proposed by the Administration in 
its Farm Bill proposals as a way to receive a higher portion of 
the unpaid debt and to reduce its administrative costs by not 
having to monitor recapture agreements. In addition, the 
Managers believe that borrowers who did not act in good faith 
with the terms and conditions of their loan agreements with 
USDA should not benefit from USDA's servicing of their 
delinquent debts. Thus, a ``bad faith'' exception in the Con 
Act is being ended.
       Furthermore, another current provision that provides 
that a borrower's future creditworthiness is to be determined 
without regard to restructuring is being stricken. It is the 
intent of the Managers that future credit decisions should take 
into consideration, among things such as cash flow and loan 
security, a borrower's credit history, including the results of 
a debt servicing action that causes farm loans to be written 
down, written off, or discharged through bankruptcy.
(25) Transfer of inventory land for conservation purposes
       The Senate amendment removes a provision that prohibits 
the Secretary of Agriculture from requiring reimbursement when 
transferring real property for conservation purposes to other 
federal or State agencies. It also provides for public notices 
and a public meeting prior to a real property transfer, and 
consultation with state and local officials. (Section 639)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate amendment. 
(Section 646)
       The Managers note that the Secretary is not being 
required to be reimbursed when transferring properties to other 
agencies. The phrase ``without reimbursement'' is being deleted 
because it is not necessary.
(26) Implementation of target participation rates
      The Senate amendment requires that the Secretary ensure 
that targeting loan funds to members of socially disadvantaged 
groups complies with the Supreme Court's June 12, 1995, ruling 
in Adarand Constructors v. Pena. (Section 640)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate amendment. 
(Section 647)
(27) Delinquent borrowers, short form certification requirement, and 
        credit study
      The Senate amendment requires that a borrower pay a 
portion of the interest that is due as a condition of 
rescheduling or reamortizing loans that are not serviced under 
a mandated servicing process; the Secretary is to determine the 
required payment level.
      The Senate amendment prohibits direct operating loans to 
borrowers who are delinquent on existing farmer program loans. 
It also prohibits direct and guaranteed loans to borrowers 
whose defaults on farmer program loans resulted in debt 
forgiveness. An exception provides that direct or guaranteed 
farm operating loans for paying annual farm or ranch operating 
expenses may be made to a borrower who was restructured with 
debt write-down.
      The Senate amendment limits a borrower to not more than 
one instance of debt forgiveness under any delinquent debt 
servicing mechanism that results in USDA incurring direct loan 
losses.
      Furthermore, the Senate amendment requires that the 
Secretary perform a study on the demand for and availability of 
credit in rural areas for agriculture, rural housing, and rural 
development. (Section 641)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that requires the Secretary of Agriculture to 
develop a short form for borrowers to use for certifying 
compliance with loan making statutes and regulations. (Sections 
648-650)
      The Managers are concerned that USDA is rewriting loans 
several times without having borrowers make any payments. GAO 
has reported that borrowers who are having difficulties or are 
unable to make their loan payments, but who have not been 
subjected to the mandated servicing provisions of the Con Act, 
are having their farm loans rewritten with revised interest 
rates, payment terms, and the combining of unpaid interest with 
outstanding principal. Also, the loans that are rewritten in 
this manner are not subject to the Con Act's total indebtedness 
limits. While such rewriting may appear to be a benefit to 
borrowers, in the long-run it is not because the capitalizing 
of unpaid interest erodes the equity that the borrowers have in 
their farm operations. It is the position of the Managers that 
USDA should use its loan-servicing tools to assist borrowers 
who are having difficulty in making their loan payments. 
However, limits are needed on the extent of that assistance to 
ensure that borrowers do not become so weak that they end up in 
an insolvent position and to ensure that the taxpayers' 
investment in these loans is better protected. Therefore, the 
bill requires that a borrower who has not requested servicing 
consideration in response to the formal notification under 
section 331D of the Con Act has to pay a portion of the 
interest that is due as a condition of having his or her loans 
rescheduled or reamortized. The Secretary is to determine the 
level of payment required from such borrowers.
      The Managers are also concerned about the fiscal 
soundness of making farm operating loans to delinquent 
borrowers. According to GAO, a total of $130 million in direct 
farm operating loans was made to delinquent borrowers from 
fiscal year 1989 through the first half of fiscal year 1995. 
GAO has recommended that such loans be prohibited, and the 
Administration in its Farm Bill proposals also called for 
deleting this requirement. The Managers concur.
      The bill is also generally prohibiting direct and 
guaranteed loans to borrowers whose prior defaults on farmer 
program loans resulted in debt forgiveness. GAO has recommended 
that borrowers whose prior loan defaults resulted in losses 
should be prohibited from receiving additional loans. The 
Administration in its Farm Bill proposals also called for 
prohibiting loans to borrowers who received debt write-offs 
through buy-outs and debt settlements. However, the 
Administration's proposal called for continuing to make loans 
to borrowers who received write-down, and it did not address 
lending to borrowers who defaulted on guaranteed loans. 
Subsequently, USDA officials agreed that borrowers who default 
on guaranteed loans that result in losses should also be 
prohibited from additional government-supported farm loans.
      The Managers want to emphasize that the prohibition on 
new loans applies to borrowers who caused USDA to incur losses 
at any time prior to enactment of this Title as well as those 
who cause USDA to incur losses on or after enactment.
      The Managers, however, recognize that borrowers who are 
restructured with debt write-down under section 353 of the Con 
Act and, as such, who remain USDA clients may have difficulty 
in obtaining credit from sources other than USDA since much, 
and possibly all, of their farm assets may be pledged as 
security for the restructured loans. Thus, borrowers whose debt 
is restructured with write-down will be able to obtain farm 
operating loans to pay their annual farm or ranch operating 
expenses. Specifically, the Managers intend that funding is to 
be allowed only for purchasing seed, feed, fertilizer, 
insecticide, and farm or ranch supplies and to meet other 
essential farm or ranch operating expenses, including cash 
rent.
      The bill is also limiting a borrower to no more than one 
instance of debt forgiveness under any delinquent debt 
servicing mechanism that results in USDA incurring direct loan 
losses. A 1990 Farm Bill amendment to the Con Act limits 
borrowers whose delinquent debts are resolved through the 
restructuring process to either one write-down when 
restructured or one write-off when buying out. The one-time 
limitation added by the 1990 Farm Bill applies to new 
applications for restructuring that were submitted after the 
enactment date of that act. The 1990 Farm Bill limitation does 
not apply to borrowers whose accounts are resolved through the 
debt settlement process. Information from GAO indicates that 
some borrowers who have had debt relief when their delinquent 
debts were resolved through the restructuring process 
subsequently had additional debt relief when they went through 
the debt settlement process. There are also other ways in which 
borrowers can have multiple instances of debt relief. For 
example, borrowers who go through debt settlement and who 
received subsequent loans can receive additional debt relief if 
they default on the new loans and their accounts are 
restructured with debt write-down or bought out with write-off. 
Also, borrowers can receive more than one debt settlement, each 
with write-off.
      To ensure that all delinquent borrowers are treated 
equally and to provide for better protection of the taxpayers' 
investment in the farm loans, the bill is limiting borrowers 
whose accounts are resolved through any of the three mechanisms 
to one instance of debt relief. The Managers want to emphasize 
that the limitation on debt forgiveness applies to borrowers 
who had debt forgiveness at any time prior to enactment of this 
Title as well as those who had debt forgiveness on or after 
enactment.
      The Secretary of Agriculture is being required to perform 
a study on the demand for and availability of credit in rural 
areas for agriculture, rural housing, and rural development and 
to report on the results of this study to the Senate and House 
Agriculture Committees. The purpose of the study and report is 
to ensure that Congress has current and comprehensive 
information as it continues to deliberate on the credit needs 
of rural America and the availability of credit to satisfy 
those needs. In completing this study, the Managers expect the 
Secretary to use, among other things, data and information 
obtained by the President's 1995 interagency task force on 
rural credit. The Managers also expect the Secretary to 
complete this study and provide this report by July 1996.

                     SUBTITLE E--GENERAL PROVISIONS

(28) Conforming Amendments
      The Senate amendment contains conforming amendments of a 
technical nature to the Con Act concerning USDA's farm loan 
programs. (Section 651)
      The House bill has no comparable provisions.
      The Conference substitute adopts the Senate amendment 
regarding the Con Act technical changes. (Section 661)
(29) Electronic filing of financial statements and effective dates
      The Senate amendment contains amendments to the Farm 
Credit Act of 1971 regarding the Agricultural Mortgage 
Secondary Market, commonly known as Farmer Mac, and the Farm 
Credit System. (Sections 661 through 699A)
      The House bill has no comparable provisions.
      The Conference substitute adopts the House provision 
deleting the Senate amendments regarding Farmer Mac and the 
Farm Credit System. Public Law 104-105, which was signed by the 
President on February 10, 1996, enacted the same Farmer Mac and 
Farm Credit System provisions. The Conference substitute also 
amends the Senate provision to allow the electronic filing of 
financial statements without the signature of the debtor 
providing State law authorizes such a filing and to provide 
guidance on the effective dates for the amendments made by this 
Title, including directing that regulations issued in response 
to these amendments are to be published as interim final rule. 
(Sections 662 and 663)
      The Managers expect USDA in promulgating the rules to 
carry out the filing provisions for electronic financing 
statements to address the concerns of those States that have 
central filing, but have not yet implemented electronic filing, 
and will continue to utilize paper transactions. Commercial 
lenders have expressed a great deal of concern and confusion 
due to the vagueness of the continuation provisions that are 
related to the financing statements included in the Food 
Security Act of 1985 and its inconsistency with Article IX of 
the Uniform Commercial Code.

                      Title VII--Rural Development

Subtitle A--Amendments to the Food, Agriculture, Conservation and Trade 
                              Act of 1990

                     Chapter 1--General Provisions

(1) Rural investment partnerships
      The Senate amendment extends the authorization for Rural 
Investment Partnerships and provides an authorization for 
appropriations of $4.7 million for each of fiscal years 1996-
2002. (Section 701)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal the authorization for Rural 
Investment Partnerships. (Section 701)
(2) Water and waste facility financing
      The Senate amendment strikes duplicate authority (section 
2322 of the FACT Act) for water and waste facility financing 
for Rural Utility Service borrowers that exists in Section 
306(a) of the Con Act. (Section 702)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 702)
(3) Rural Circuit Rider Wastewater Program
      The Senate amendment repeals authority for the Circuit 
Rider Water and Waste Technical Assistance Program. The 
authority is consolidated with all authorized rural water and 
wastewater technical assistance and training programs in 
Section 306(a)(16) of the Con Act. (Section 703)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 703)
(4) Telemedicine and distance learning services in rural areas
      The Senate amendment reauthorizes and streamlines the 
Distance Learning and Telemedicine Program. A Treasury-rate 
loan program is created to assist rural borrowers in making 
telecommunications and data linkages available. The Senate bill 
authorizes appropriations of $100,000,000 for each of fiscal 
years 1996-2002. (Section 704)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment giving borrowers the right to appeal funding 
decisions. If the Secretary rejects the application of a 
borrower who applies for assistance, the borrower may appeal 
the decision to the Secretary not more than 10 days after the 
borrower is notified of the funding decision. (Section 704)
      The Managers are concerned that past application, 
evaluation and approval procedures of the distance learning and 
telemedicine program have resulted in questions about the 
equity and validity of the application evaluation process. The 
conference amendment to the loan program is intended to provide 
a more rational and timely appeal procedure. Although the 
Managers understand that the Rural Utilities Service (RUS) 
provides information to applicants whose applications have been 
disapproved, the Managers intend for RUS to provide with each 
disapproval notice the raw scores for each proposal and a list 
by rank of each application that was approved and each that was 
disapproved.
      The Managers also are concerned that the application 
appraisers may not have sufficient practical expertise in rural 
areas, and indeed, may lack sufficient technical understanding 
of some aspects of applications. The managers would encourage 
RUS to make certain the reviewers have technical and/or 
managerial expertise in the fields of telecommunications, 
telemedicine, distance learning and project management and are 
able to evaluate sufficiently each application fully on its 
merits.
      To ensure that each applicant's submission is clearly 
understood by the RUS staff, the Managers believe that a formal 
presentation opportunity should be afforded each applicant that 
requests one, arranged as part of the formal application review 
process. The Managers recognize that while not every applicant 
may desire to give such a staff presentation, interested 
applicants need an opportunity to appear briefly before the 
reviewing staff, to pose and answer questions about their 
application. To the extent practicable, this may be 
accomplished through meetings in the field so that no applicant 
is unduly burdened financially.
      The Managers intend for this approach to assist both 
applicants and RUS staff in finding and funding the best 
applications, ensuring a fair and equitable procedure so that 
questions are clarified. The Managers believe such a procedure 
would minimize misinformation from entering the application 
evaluation process.
      Finally, the Managers believe that applications must be 
considered both on the part of reviewers and RUS staff without 
regard to how the service is delivered. Technology bias on the 
part of RUS staff has been a constant criticism and should be 
avoided whenever possible. The Managers intend that successful 
applications will be those considered entirely on their merits, 
and that applications for start-up programs should not receive 
greater weight than proven programs needing upgrades, 
improvements or expansion.
(5) Limitations on authorization of appropriations for Rural 
        Cooperative Development Grant Program
      The Senate amendment eliminates the authorization for 
appropriations for the Rural Technology and Cooperative 
Development Grant Program. The authorization for the program is 
maintained in section 310B of the Con Act. (Section 705)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 705)
(6) Monitoring the progress of rural America; demonstration grants
      The Senate amendment repeals an obsolete provision for 
the collection of statistics on the economic progress of rural 
America in the 1992 Census. (Section 706)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal authority which provides for rural 
economic development competitive grants. (Sections 706 and 707)
(7) Analysis by Office of Technology Assessment
       The Senate amendment repeals obsolete authority for the 
Office of Technology Assessment to study the effects of 
information technology on rural America. (Section 707)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 708)
(8) Rural Health Infrastructure Improvement Program
      The Senate amendment repeals unfunded authority for a 
demonstration project for rural health infrastructure 
improvement. (Section 708)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 709)
(9) Census of agriculture; study of transportation of fertilizer
      The Senate amendment repeals an obsolete requirement for 
a 1992 Census question on agricultural accidents and farm 
safety. (Section 709)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal authority for a study of the 
transportation of fertilizer and agricultural chemicals to 
farmers. (Sections 710 and 711)

   Chapter 2--Alternative Agricultural Research and Commercialization

(10) Alternative Agricultural Research and Commercialization 
        Corporation
      The Senate amendment contains definitions for ``Corporate 
Board'' and ``Corporation.'' (Section 721)
      It converts the Alternative Agricultural Research and 
Commercialization Center to the Alternative Agricultural 
Research and Commercialization Corporation, a wholly-owned 
government corporation within the Department of Agriculture. 
The purpose of the Corporation is identical to the purpose for 
the Center--to expedite the development and market penetration 
of industrial (non-food, non-feed) products from agricultural 
and forestry materials and to assist the private sector in 
bridging the gap between research results and the 
commercialization of that research. (Section 722)
      The general powers of the Corporate Board are expanded to 
allow the Corporation to sell assets, loans, and equity 
interests held by the Corporation. (Section 723)
      The membership of the Corporate Board is increased from 9 
members under current law to 10 members: the Under Secretary of 
Agriculture for Rural Economic and Community Development; the 
Under Secretary of Agriculture for Research, Education and 
Economics; four members appointed by the Secretary--one 
scientist, one producer or processor of agricultural 
commodities, one member engaged in the commercialization of new 
non-food, non-feed products; two members appointed by the 
Secretary who have expertise in applied research and who are 
nominated by the National Science Foundation; and two members 
who have experience in financial management and who are 
nominated by the Secretary of Commerce. (Section 723)
      The Secretary is given authority to vacate and remand to 
the Board for reconsideration any funding decision for cause. 
The Secretary is required to inform the Board of the reasons 
for any remand. Board members serving at the time the Center is 
converted to the Corporation may be reappointed for the 
remainder of their term by the Secretary. The Senate amendment 
prohibits Board members from voting on applications if they 
have a conflict of interest and the Board of Directors is 
required to establish bylaws for the Corporation and requires 
the Secretary to review and approve the bylaws prior to 
adoption by the Board. The authority for the Corporation to 
establish advisory councils is eliminated. (Section 723)
      It makes conforming changes reflecting the Center's new 
status as a Corporation. (Sections 724-727)
      Contents of the Alternative Agricultural Research and 
Commercialization Revolving Fund may now include proceeds from 
the sale of assets, loans, and equity interests made in 
association with the goals of the Corporation. Funding 
allocation restrictions are established: (1) limits 
administrative expenses of the Corporation to the lesser of $3 
million or 15 percent of appropriated funds in each fiscal 
year; (2) allows 1 percent of appropriated funds to be used for 
studies and reviews of individual proposals for assistance; (3) 
establishes that not less than 84 percent of funds appropriated 
shall be set aside to fund individual projects; and retains 
current law which provides that uncommitted funds in each 
fiscal year are to be credited to the Fund and authorizes the 
roll-over of funds for succeeding fiscal year funding of 
projects. The Board is given discretion to establish in the 
bylaws of the Board a policy for individual project monitoring 
and evaluation--the cost of which is not to exceed 1 percent of 
assistance per project award. (Section 728)
      The Senate amendment further provides for the transfer of 
assets of the Revolving Fund to the Treasury upon expiration of 
the Corporation's authority. It provides an authorization for 
an appropriation of $75 million for each of fiscal year 1996-
2002. (Section 728)
      An executive agency is given authority to give a price or 
technical evaluation preference in procurement practices to 
products successfully commercialized with assistance provided 
by the Corporation. (Section 729)
      Lastly, the Senate amendment requires the Corporate Board 
to develop a five-year business plan not later than 180 days 
after the date of enactment and submit the plan to the 
Secretary of Agriculture, the Committee on Agriculture of the 
House of Representatives, and the Committee on Agriculture, 
Nutrition and Forestry of the Senate. In addition, the 
Secretary is required to conduct a study and prepare a report 
by December 31, 2001 on the feasibility of privatizing the 
Corporation and converting it to a government-sponsored 
enterprise. (Section 730)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to give the Secretary authority to appoint an 
additional Corporate Board member with financial management 
expertise, resulting in an 11-member Corporate Board. (Sections 
721-730)
      The Managers note that the move to establish the 
Alternative Agricultural Research and Commercialization Center 
as an independent agency within USDA was the result of concerns 
that the Center was being ``co-opted'' into the programming of 
other USDA business-related agencies. Despite departmental 
reorganization legislation (P.L. 103-354, subtitle A--General 
Reorganization Authorities, section 211(m)) which specifically 
exempted the Center from the reorganization and thus maintained 
the Center's independence, USDA continued its efforts to turn 
the Center into an adjunct program of the Rural Business-
Cooperative Service. Measures have been taken to ensure the 
Corporation's independence.
      As a new program, the Center has experienced ``growing 
pains'' over the last 2 years. In March 1995, the Department's 
Office of the Inspector General (OIG) reported that the Board 
members had not adequately disclosed their financial interests 
in projects; have operated under policies and procedures 
contained only in a draft manual, not in regulations; and have 
not required audited financial statements from applicants 
before approving projects. In addition, the Center exercised 
due diligence sporadically. The Managers recognize that steps 
are now being taken to approve management controls and 
oversight to remedy these problems.
      In converting the Center to the Corporation, the 
Committee is imposing a number of controls on the activities of 
the Corporation and the Board. The Board is required to 
establish bylaws, which have to be reviewed and approved by the 
Secretary. As an agency of the Department of Agriculture, the 
Corporation is subject to oversight by the Secretary and can be 
audited and investigated by the OIG. In addition, the 
Corporation will be subject to the auditing and budgeting 
requirements of the Government Corporations Act. Strict 
conflict-of-interest restrictions are imposed, and the 
Secretary is given the authority to remand funding decisions 
made by the Board if the restrictions are violated. The 
Secretary is also directed to establish financial disclosure 
requirements for the Board.
      In developing bylaws, the Managers expect the Board to 
establish clear criteria to be used in evaluating applications 
for commercialization projects. The criteria should ensure that 
the entity receiving assistance is in sound financial 
condition, has the financial, technical, and managerial 
capability to undertake the project, and has a reasonable 
expectation of success.
       The Board's decision of funding projects should be based 
on the feasibility of the project, its marketability, the 
ability of the applicant to be successful in commercializing 
the product, and the ability of the applicant to repay the 
financial assistance it receives or provide a return on the 
Corporation's investment. Other considerations are the 
availability of matching funds, private-sector participation, 
potential market size, potential for jobs creation, state and 
local government participation, likelihood of reducing federal 
commodity support payments, likely impact on resource 
conservation, and likely impact on the environment. The 
Managers intend for the Corporation's continued independence to 
prevent political pressure from influencing the funding 
decisions of the Board of Directors.
       The Managers also recognize the need to improve 
procurement procedures and regulations to allow the Corporation 
to function efficiently. The Corporation is part owner of many 
of the companies it supports. The Corporation should divest 
itself of that ownership as soon as practicable so that 
invested funds are returned to the revolving fund to be 
reinvested.
       A new section is added to authorize an executive agency 
to give a price or technical evaluation preference in 
procurement practices to products successfully commercialized 
with assistance provided by the Corporation. The Managers 
believe that the Federal government should be allowed to 
procure new-use products that meet the unique needs of 
individual agencies. This change makes it easier for federal 
managers to purchase Corporation-supported products for use by 
the federal government. However, the Committee intends that 
government procurement should not, under any circumstance, 
establish the validity and sustain the viability of any given 
Corporation project.
       Further, the Managers believe that with adequate funding 
of the revolving fund, the Corporation should eventually become 
self-sufficient. Authorized appropriations for the Center from 
1991 through 1995 were $185 million, while actual 
appropriations were only $25.75 million, including a $1.5 
million rescission.
       The Managers regret the lack of funding available to 
establish regional centers. However, it is the Managers' view 
that the establishment and utilization of these centers under 
current budget restraints is not feasible.
       Finally, the Secretary is required to prepare and 
transmit a report by December 31, 2001, to the Senate Committee 
on Agriculture, Nutrition and Forestry and the House Committee 
on Agriculture on the feasibility of privatizing the 
Corporation or converting it to a government-sponsored 
enterprise. The Managers agree that the Corporation should 
investigate all means by which to increase its self-sufficiency 
through funding approaches that increase the level of assets in 
the revolving fund.

 Subtitle B--Amendments to the Consolidated Farm and Rural Development 
                                  Act

                     Chapter 1--General Provisions

(11) Water and waste facility loans and grants; rural business 
        opportunity grants; and Technical Assistance and Training 
        Program
       The Senate amendment reauthorizes and increases the 
appropriation for water and waste treatment grants from 
$500,000,000 to $590,000,000. It maintains the 10,000 
population limitation for water and waste disposal grants and 
direct and guaranteed loans only.
       The amendment requires that sewer, waste, and water 
treatment projects funded under this section conform to State 
standards established under the Safe Drinking Water Act and the 
Clean Water Act.
       It authorizes grants not to exceed $1.5 million 
annually--to establish centers for training, technology, and 
trade that provide assistance to rural businesses in the 
utilization of interactive communications technologies used to 
develop export markets. An appropriation of $7,500,000 for each 
of fiscal years 1996-2002 is authorized for this purpose.
       The amendment eliminates unused authority for grants to 
volunteer fire departments for training and fire fighting 
equipment. It eliminates duplicate authority for loans for 
construction, acquisition, and operation of electric facilities 
receiving power from Power Marketing Administrations.
       The amendment combines the authority for the wastewater 
technical assistance and training programs contained in section 
2324 of the FACT Act with the rural water technical assistance 
program in the Con Act, and increases the funding level to 
account for consolidation of the two programs. (Section 741)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision. 
(Section 741)
       The Managers recognizes the strong performance and 
success of the National Rural Water Association's water and 
wastewater Circuit Rider technical assistance program and 
encourages continued support for the program. With diminishing 
levels of discretionary funding on the horizon, the Managers 
believe it paramount to maintain the Department's role in 
technical assistance to ensure that economically distressed 
rural communities conform to standards set forth in the Clean 
Water Act and the Safe Drinking Water Act.
(12) Emergency Community Water Assistance Grant Program for small 
        communities
       The Senate amendment combines the emergency assistance 
program for communities of 15,000 or less with the program for 
communities of 5,000 or less established by section 306B. Not 
less than 50 percent of available funds is required to be 
allocated to communities with populations of less than 3,000. 
The reauthorization of appropriation of $35 million is extended 
from 1996-2002. (Section 742)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment to cap the population eligibility criteria at 
no more than 10,000 population. (Section 742)
(13) Emergency Community Water Assistance Grant Program for smallest 
        communities
       The Senate amendment repeals authority for the program. 
(Section 743)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision. 
(Section 743)
(14) Agricultural Credit Insurance Fund
       The Senate amendment eliminates obsolete authority in to 
insure loans with funds made available through a revolving fund 
of the Agricultural Credit Insurance Fund. (Section 744)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision. 
(Section 744)
(15) Rural Development Insurance Fund
       The Senate amendment eliminates obsolete authority to 
insure loans with funds made available through the Rural 
Development Insurance. (Section 745)
       The House bill has no comparable provision.
       The Conference substitute adopts the Senate provision. 
(Section 745)
(16) Insured watershed and resource conservation loans
      The Senate amendment eliminates obsolete authority for 
insured watershed and resource conservation and development 
loans. (Section 746)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 746)
(17) Rural industrialization assistance programs
      The Senate amendment eliminates unused authority for 
pollution abatement grants, eliminates unused authority for 
insuring and guaranteeing loans for constructing or improving 
subterminal facilities, eliminates authority for loans to fund 
facilities for sharing telecommunications terminal equipment, 
computers and software with approval of State Rural Economic 
Development Review Panels, and makes competitive the awarding 
of passenger transportation services or facilities grants.
      The Senate amendment amends the Rural Cooperative and 
Technology Development grant program by: 1) narrowing the focus 
and renaming the program the ``Rural Cooperative Development 
Grant program; 2) emphasizing job creation in rural areas 
through the development of rural cooperatives, value-added 
processing, and rural businesses; 3) refocusing the efforts of 
the regional centers on technology research, feasibility 
studies, training, technology transfer, and technical 
assistance; 4) targeting the activities of the rural technology 
centers to build the capacity of rural industries, 
cooperatives, and agribusinesses; 5) establishing criteria for 
preferences in the awarding of grants, including a requirement 
to award grants on a competitive basis; 6) allowing the 
Secretary to make grants to defray up to 75 percent of the 
costs incurred by organizations and public bodies to carry out 
projects under this program; and 7) authorizes an appropriation 
of $50,000,000 million for each of fiscal years 1996-2002.
      The Senate amendment authorizes the Secretary to make 
loan guarantees for the purchase of start up stock in a 
cooperative. To qualify for participation, the farmer must 
produce the agricultural commodity that will be processed by 
the cooperative. (Section 747)
      The House bill has no comparable provisions.
      The Conference substitute adopts the Senate provision 
with an amendment that extends eligibility for loans and grants 
for rural industrialization to industries undergoing adjustment 
from terminated Federal agricultural price and income support 
programs or increased competition from foreign trade. (Section 
747)
      The Managers intend to target the limited funds available 
for the Rural Cooperative Development Grant program on 
cooperative development centers that operate on a regional or 
statewide basis. By focusing this grant program on regional 
centers rather than on small, local projects, the Committee 
hopes to link cooperatives from different communities and 
different sectors of the economy to strengthen the cooperative 
movement as a whole. Recipients of the grants may include a 
wide range of nonprofit organizations and educational 
institutions.
      The Managers are aware of the pressing financing needs of 
new cooperatives. The Managers are also aware of changes being 
considered by the Rural Business-Cooperative Development 
Service (RBCS) to the Business and Industry (B&I) guaranteed 
program to address those needs. The Committee encourages RBCS 
to consider proceeding with changes to the B&I guaranteed loan 
program regulations to provide for more flexibility in equity 
requirements while maintaining due diligence requirements for 
overall credit quality analysis.
      The Managers are also aware of interest in changing the 
current regulations of the Business and Industry guaranteed 
program. The regulations effectively preclude construction and 
start-up costs from inclusion under the guarantee. The Managers 
encourage RBCS to consider amending the B&I guaranteed loan 
regulations, as necessary, to provide for guarantees that are 
effective during the construction and start-up phase of 
projects. Changes to the regulations could include providing an 
alternative procedure without the current requirement that 
property acquisition and construction must be completed before 
the guarantee is effective, with guidelines for when the 
alternative procedure will be used.
      The Managers strongly urge the Department to use the 
Business and Industry loan guarantee program in the development 
of value-added agricultural processing cooperatives and other 
value-added small businesses. These new businesses have the 
potential for raising farm income for producers, creating new 
wealth, and revitalizing local communities. Furthermore, the 
Managers believe that the B&I program can be effectively 
targeted to producers without the liquid assets to readily 
invest, to guarantee up to 30 percent of an individual's 
purchase stock in value-added agriculture processing 
businesses, including cooperatives, up to a maximum of $10,000 
per eligible investor, and still protect the integrity of the 
loan guarantee. No more than 30 percent of a project's equity 
investment shall be guaranteed in this manner, assuming a 
satisfactory business plan. The Department which is permitted 
under current law to use the B&I loan guarantee in this manner, 
should take the necessary steps to implement this 
recommendation within 90 days of enactment of this bill.
(18) Administration-Debt reduction by secretary
      The Senate amendment gives the Secretary authority to 
reduce debt for loan programs administered by the Rural 
Utilities Service, the Rural Housing Service, and the Rural 
Business-Cooperative Service. The Attorney General must be 
notified of the Secretary's intent to exercise any debt 
reductions. (Section 748)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 748)
(19) Authorization for appropriation
      The Senate amendment eliminates obsolete direct loan 
authority. (Section 749)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 749)
(20) Testimony before congressional committees
      The Senate amendment eliminates the requirement for the 
Secretary to testify before both House and Senate Agriculture 
Committees by February 15th of each year. (Section 750)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 750)
(21) Prohibition on use of loans for certain purposes
      The Senate amendment gives the Secretary the authority to 
approve loans for utilities that cross wetlands. (Section 751)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 751
(22) Rural Development Certified Lenders Program
      The Senate amendment creates a certified lenders program 
for the Business and Industry guaranteed loan program and other 
rural development loan programs under title III of the Con Act. 
(Section 752)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 752)
(23) System for delivery of certain rural development programs
      The Senate amendment repeals the system of State Rural 
Economic Review Panels for rural development program delivery. 
(Section 753)
      The House bill has no comparable provision
      The Conference substitute adopts the Senate provision. 
(Section 753)
(24) State Rural Economic Development Review Panel
      The Senate amendment repeals the duties and structure of 
State Rural Economic Review Panels. (Section 754)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 754)
(25) Limited transfer authority of loan amounts
      The Senate amendment repeals the transfer of appropriated 
funds for water and waste facility direct loan programs to loan 
programs administered by the State Rural Economic Review 
Panels. (Section 755)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 755)
(26) Allocation and transfer of loan guarantee authority
      The Senate amendment repeals State Rural Economic Review 
Panels authority to administer water and waste facility 
guaranteed loan programs. (Section 756)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 756)
(27) Water systems for rural and native villages in Alaska; water and 
        waste disposal application requirements
      The Senate amendment provides the Secretary with the 
authority to make grants to the State of Alaska for the benefit 
of rural and Native villages to develop and construct water and 
wastewater systems to improve sanitation conditions. To be 
eligible to receive a grant, the State of Alaska will provide 
equal matching funds from non-Federal sources. There are 
authorized to be appropriated $15 million for each of fiscal 
years 1996 through 2002. (Section 552)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require that not later than 60 days before 
a preliminary loan is filed for a loan or grant for water and 
waste disposal assistance, a notice of the intent of the 
applicant to apply for the loan shall be published in a general 
circulation newspaper. In addition, the selection of engineers 
for a project shall be done by a request for proposals by the 
applicant. (Sections 757 and 758)
      The Managers encourage the Secretary to consider cost-
effectiveness and viability of other drinking water delivery 
options prior to making decisions regarding the funding of new 
or expanded community water facilities which should include, 
but not limited to, community water systems, cluster well 
systems and individual privately-owned wells.
(28) National Sheep Industry Improvement Center
      The Senate amendment establishes the National Sheep 
Industry Improvement Center. The purposes of the Center shall 
be to: (1) promote strategic development activities and 
collaborative efforts by private and State entities to maximize 
the impact of Federal assistance to strengthen and enhance the 
production and marketing of lamb and wool products in the 
United States; (2) optimize the use of available human capital 
and resources within the lamb industry; (3) provide assistance 
to meet the needs of the sheep or goat industry for 
infrastructure development, business development, resource 
development and market and environmental research; (4) build 
the capacity of the U.S. sheep industry to design responses to 
the special needs of the lamb and wool industries on both a 
regional and national basis; and (5) adopt flexible and 
innovative approaches to solving the long-term needs of the 
U.S. sheep industry.
      Funding for the Center's activities shall derive from the 
establishment of a revolving fund. This fund shall be capped at 
$50 million--$20 million of the fund shall be mandatory monies 
deposited by the Treasury into the fund from any other moneys 
in the Treasury not otherwise appropriated. In addition, 
authorization is provided for $30 million. After 10 years or 
upon receipt of $50 million to the revolving fund, the Center 
and its activities shall be privatized and no additional 
federal funds shall be used to carry out the activities of the 
Center.
      The Center shall be managed by a nine member, non-
compensated seven voting members and two non-voting members. 
The seven voting members shall be chosen in an election of the 
members of a national organization selected by the Secretary of 
Agriculture that is comprised of primarily U.S. sheep 
producers. The Board of Directors may use the monies in the 
fund to make grants and loans to eligible entities in 
accordance with a required annual strategic plan submitted to 
the Secretary of Agriculture. An eligible entity under the 
section is an entity that promotes the betterment of the U.S. 
sheep industry that is a public, private or cooperative 
organization. In addition, federally recognized Indian tribes, 
non-profit organizations, and public or quasi-public agencies 
are also eligible for assistance from the Center. (Section 757)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to include the goat and goat product 
industry. (Section 759)
      The Managers intend the National Sheep Industry 
Improvement Center and revolving fund to assist and strengthen 
the U.S. sheep and goat industries which have experienced 
dramatic losses of infrastructure since 1993. The Center's 
activities should focus on the production and marketing of 
meat, fiber and hair. The Managers are concerned that over 
16,000 of the nation's sheep producers have left the business 
in the last three years and the U.S. breeding herd has dropped 
21 percent. Likewise, over 30 percent of the goat producers 
left the goat industry during that same time period. The 
Managers are also concerned with the severe loss of the 
industry's infrastructure--one-third of the major lamb packing 
plants in the United States have closed down operations.
      It is the intent of the Managers that prior to submitting 
the list of nominations of the voting members for the Board of 
Directors to the Secretary, the national organizations shall 
consult with state associations that represent producers of 
sheep or goats. It is also the Managers position that the final 
composition of the Board reflect the comparative production of 
the industries.
      The Managers expect that the Secretary will balance the 
equities between all segments of the sheep and goat industries 
in order to ensure participation by all facets of the 
industries in appointing members to the Board.
(29) Cooperative agreements
      The Senate amendment gives the Secretary the authority to 
enter into cooperative agreements with other Federal agencies 
and State and local governments without being subject to the 
funding limitations imposed by the Federal Grant and 
Cooperative Agreement Act of 1977. (Section 793)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 759A)
(30) Eligibility for grants for broadcasting systems
      The Senate amendment provides a definition for 
``statewide'' coverage for the Television Demonstration Grant 
program. The term ``statewide'' means having a coverage area of 
not less than 90 percent of the population of a State and not 
less than 80 percent of the rural land area of the State. 
(Section 553)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 759B)

             Chapter 2--Rural Community Advancement Program

(31) Rural Community Advancement Program
      The Senate amendment establishes the Rural Community 
Advancement Program (RCAP), a new rural development program 
delivery mechanism.
      The Senate amendment in Section 381A establishes that the 
terms ``rural,'' ``rural area,'' and ``State'' under the RCAP 
are subject to section 306(a)(7) of the Con Act which restricts 
water and wastewater program participation to towns with 
population of no more than 10,000 inhabitants. Eligibility for 
numerous programs are consolidated into one definition: a city, 
town, or unincorporated area that has a population of 50,000 
inhabitants or less, other than an urbanized area immediately 
adjacent to a city, town, or unincorporated area that has a 
population in excess of 50,000 inhabitants. In section 381B, 
The RCAP is established to provide grants, direct and 
guaranteed loans and other assistance to meet the unique rural 
development needs of local communities and federally recognized 
Indian tribes.
      National objectives are established in section 381C of 
the Senate amendment to promote strategic development and 
collaborative efforts by the State and local communities to 
maximize the impact of Federal assistance; to optimize the use 
of local and State resources; and when providing assistance, to 
consider the complexity of rural needs for business 
development, health care, education, infrastructure, the 
environment, housing, and cultural resources.
      The Senate amendment in section 381D requires the 
Secretary to direct each of the Directors of Rural Economic and 
Community Development State Offices to prepare a strategic plan 
for each state. Financial assistance for rural development 
projects within each State under RCAP must be consistent with 
the plan.
      Further, assistance under the RCAP may only be provided 
to an entity that is located in a rural area as defined under 
the RCAP. The Secretary is required to give priority to 
communities with the smallest populations and lowest per capita 
income.
      The Senate amendment requires the Secretary to review the 
plan every 5 years. A strategic plan must: (1) coordinate plans 
and activities proposed for the area; (2) require the State and 
local communities to act as full partners in the process of 
developing and implementing the plan; (3) identify goals, 
methods, and benchmarks for measuring the success of the 
strategic plan; (4) be prepared in consultation with State, 
local, public and private entities, State rural development 
councils, federally-recognized Indian tribes, and community-
based organizations; (5) identify federal and non-Federal 
resources available for implementation of the plan; and (6) 
include any other information required by the Secretary.
      In section 381E, the Senate amendment consolidates over a 
dozen programs included in the RCAP into three function 
category accounts: (1) Rural Housing and Community Development 
includes direct loans, loan guarantees and grants for community 
facilities, and new construction funds for rural rental housing 
grants; (2) Rural Utilities includes grants, direct and 
guaranteed loans for rural water and wastewater disposal; 
grants for solid waste management; rural water and wastewater 
technical assistance and training grants; and emergency 
community water assistance; (3) Rural Business and Cooperative 
Development includes local technical assistance grants; rural 
business opportunity grants; guaranteed business and industry 
assistance loans; and grants for rural business enterprises. 
The Secretary will allocate the amounts in the three accounts 
among the States. The Secretary is given the authority to 
determine the allocation taking into consideration rural 
population, levels of income, unemployment, and other relevant 
factors, as determined by the Secretary.
      The Secretary is also given authority in section 381E of 
the Senate amendment to transfer amounts allocated to the 
States for any of the three function categories for a fiscal 
year to a fourth function category: 1) mutual and self-help 
housing grants pursuant to section 523 of the Housing Act of 
1949; 2) rural rental housing loans for existing housing 
pursuant to section 515 of the Housing Act of 1949; 3) rural 
cooperative development grants provided under section 310B(E); 
and 4) grants to broadcasting systems provided under section 
310B(f). The funding for programs in the fourth function 
category may not be transferred out of these program accounts 
for funding other programs. Funds can only flow into these 
program accounts.
      The Senate amendment permits the Secretary to transfer up 
to 25 percent from the amount allocated for a State under each 
function category in each fiscal year to any other function 
category within that State. However, not more than 10 percent 
of the total appropriations to the RCAP at the national level 
may be transferred among the three function categories.
      The Senate amendment provides that the Secretary shall 
make available not more than 5 percent of appropriated funds 
for the RCAP to defray the cost of any subsidy associated with 
the state loan guarantee program provided for under the RCAP.
      In section 381F, the Secretary shall reserve not more 
than 10 percent of the total funds appropriated for the RCAP to 
establish a national office reserve for rural development 
purposes. The national reserve may be used for emergencies, for 
incentive awards, or for performance-oriented demonstration 
projects. A three percent reserve shall be established for 
Federally-recognized Indian tribes to carry out rural 
development programs included in the RCAP. The reserve is to be 
administered through the appropriate Rural Economic and 
Community Development State Office Director.
      The Senate amendment establishes the criteria for making 
allocations for the States. In making allocations for fiscal 
years 1997-2002, the Secretary shall ensure that the percentage 
allocation for each State is no less than the percentage of the 
average of the total funds obligated for the programs in each 
State in fiscal years 1993 and 1994. The minimum allocation 
constitutes a ``hold harmless'' provision. Funds allocated 
under this section are for Federal rural development programs 
within a State, and are not granted directly to the State.
      The Senate amendment establishes a State RCAP grant in 
section 381G. It allows a State to request a grant of not more 
than 5 percent of the sums allocated for the State in any 
fiscal year. A state may request an additional 5 percent from 
the State allocation if the State provides non-Federal matching 
funds equal to 200 percent of the grant amount. The state is 
required to maintain the grant funds and any non-Federal 
matching funds in a separate account. State RCAP grant funds 
shall be used in rural areas for the same purposes as the funds 
appropriated for the programs included in the three function 
categories. The grant funds also must be used in accordance 
with the strategic plan for the State.
      The Senate amendment requires participating states to 
provide assurances that the grant funds will be used to 
supplement, not supplant, the amount of Federal, State, and 
local funds committed to rural development. States are 
prohibited from using grant funds for administrative purposes.
      The Senate amendment establishes a guaranteed loan 
program in section 381H to give States the ability to leverage 
RCAP State grant funds with loan guarantees. The Secretary is 
authorized to guarantee loans made by States or other eligible 
public entities for financing rural development projects with 
the RCAP State grant funds. The amount of the loan guarantee is 
limited to 5 times the amount of the RCAP State grant. The 
cumulative total of outstanding obligations guaranteed by the 
Secretary cannot at any time exceed amounts authorized to be 
appropriated in any fiscal year for all RCAP rural development 
programs.
      In section 381I, the Senate amendment requires that 
applications for assistance demonstrate evidence of significant 
community support.
      The Senate amendment in section 381J permits the 
establishment of voluntary pooling arrangements among States, 
and regional fund-sharing.
      The Senate amendment directs the Secretary in section 
381M to assume responsibility for establishing an interagency 
working group chaired by the Secretary. The working group shall 
establish policy, provide coordination, make recommendations, 
and evaluate the performance of all Federal rural development 
efforts.
      In section 381N, the Senate amendment requires Rural 
Development State Directors to: ensure that the State strategic 
plan is implemented; coordinate community development 
objectives; establish links between State, local, and USDA 
field office program administrators; ensure recipient 
communities comply with applicable State and Federal laws and 
requirements; and integrate state development programs with 
assistance under the RCAP.
      The Senate amendment requires the Secretary to use 
electronic transfer in section 381O for RCAP funds as soon as 
practicable. (Section 761)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require the Secretary to review the 
strategic plan within 60 days of submission in section 381D and 
maintain the present formula allocation established in 
regulation for rural development programs in section 381E.
      Further, the House amendment in section 381E prohibits 
the transfer of funds from Rural Community Advancement Program 
activities into any housing programs, the rural cooperative 
development grants program, or the grants to broadcasting 
systems program. With the elimination of the fourth function 
category and housing programs, three function categories for 
rural development programs are established in the Rural 
Development Trust Fund : Rural Community Facilities, Rural 
Utilities, and Rural Business and Cooperative Development.
      The House amendment in section 381E requires the 
Secretary to maintain a national reserve account. The reserve 
account may not exceed 15 percent of rural development funds 
available for fiscal year 1997, 12.5 percent in fiscal year 
1998, 10 percent in fiscal year 1999, 7.5 percent in fiscal 
year 2000, 5 percent in fiscal year 2001, and 5 percent in 
fiscal year 2002. In fiscal years 1997 through 2000, reserve 
account funds may be used to meet situations of exceptional 
need, emergency situations, and to provide funds to entities 
whose applications have been approved and who have not received 
funds sufficient to meet the needs of projects described in the 
applications. In fiscal years 2001 and 2002, reserve account 
funds may be used only for situations of exceptional need or 
emergency situations.
      The House amendment requires that not before July 15 of 
any fiscal year, the Secretary transfer to the national reserve 
account any amounts allocated to a State which have not been 
obligated by the State Director to fund specific approved 
projects within the State in section 381E.
      In section 381F, the House amendment authorizes an 
automatic waiver of the national or state caps on the transfer 
of funds from one function category to another. Specifically, 
if there is an approved application for a project in a function 
category, but there are no funds available for projects in that 
function category, there is an automatic waiver excusing the 
Rural Economic and Community Development Director from 
compliance with the national or state caps if there is no 
approved application in the function category from which the 
funds are to be transferred, or the community that would 
benefit from the transfer has a smaller population and a lesser 
per capita income than any community that would benefit from a 
project in the function category from which the funds are to be 
transferred.
      The House amendment in section 381I further requires that 
any community facilities or infrastructure project receive a 
certification of support from each affected general purpose 
local government.
      In adopting the Rural Community Advancement Program 
(RCAP), the Managers agree that federal rural development 
programs are uncoordinated and require a greater degree of 
integration and local involvement. As a result, the U.S. 
Department of Agriculture's rural development programs have had 
a limited impact on stemming small rural communities' declining 
economic prosperity and social well-being. Coordinating goals, 
objectives and funding from federal programs, combined with 
empowering state and local leaders through direct involvement 
in providing federal assistance is key to any successful rural 
community initiative. In order to improve the effectiveness of 
federal rural development programs, an innovative state--and 
local community-oriented delivery system is necessary. The RCAP 
is based on three fundamental concepts: (A) People at the state 
and local level are in the best position to know and to respond 
to the needs of local communities and governments. Constructive 
solutions are generated by local leaders who are most informed 
about problems and can appropriately tailor problem-solving 
initiatives. More focus must be placed on the effectiveness of 
program funding rather than on the process of obtaining federal 
assistance; (B) ``one size fits all'' rural development 
programs are not likely to be effective because different areas 
need different solutions to their problems; and (C) the top-
down federal-to-local approach to rural development erodes 
local incentives for leadership-building and community 
cohesion. Local communities must play a leading role in 
identifying local needs. Likewise, states are often bypassed, 
or only peripherally involved in federal programs, and they, 
too, need to be involved. States should coordinate and combine 
federal initiatives with their own rural development programs.
      With respect to a State's strategic plan, the Managers 
specifically intend that State and local government officials 
act as full partners in creating a plan for the delivery of 
rural development assistance. The Managers are concerned that 
the role of these State and local government officials does not 
become merely procedural or consultative in nature. Rather, the 
Managers intend that State and local government officials play 
an integral and necessary role in the creation of each State's 
strategic plan to, among other things, identify the goals, 
priorities, and methods for the delivery of rural development 
assistance. In sum, the Managers intend the strategic plan to 
meaningfully reflect the input of State and local government. 
Strategic plans which are prepared consistent with the input of 
State and local governments as contained in official hearing 
records may provide evidence to satisfy the Managers' intent.
      The Managers intend that the national reserve account 
funds be limited only by the priorities or preferences 
explicitly contained in Title VII of the Act and that no 
further priorities or preferences be established or otherwise 
adhered to. Specifically, the national reserve account is 
expected to be used for fiscal years 1997 through 2000 to meet 
situations of exceptional need, emergency situations, and to 
provide funds to entities whose applications for funds have 
been approved and who have not received funds to satisfy 
project needs described in the applications. In fiscal years 
2001 and 2002, the purposes are limited to meet situations of 
exceptional need and emergencies. In section 381F, the Managers 
intend that there be an automatic waiver excusing State Rural 
Economic and Community Development Directors from compliance 
with limitations described in Subsections (a) and (b). If the 
conditions under Subsection (c) are certified by the State 
Rural Economic and Community Development Director as being met, 
the waiver is expected to be granted. The Managers intend that 
State Rural Economic and Community Development Directors have 
maximum flexibility in meeting the rural development needs of 
States. Further, the Managers intend that a State Rural 
Economic and Community Development Director exercise the 
flexibility granted under this Subsection in a manner that 
amounts allocated are effectively used to address the State's 
rural development needs.
      The Managers intend that any application for funds under 
this title include documented evidence of significant community 
support. To accomplish this end, the Managers intend for the 
State Rural Economic and Community Development Director to 
consider evidence of significant community support contained in 
the application and any extraneous evidence confirming or 
denying such support to ensure that scarce Federal dollars 
finance only recognized rural development needs.
      The Managers further intend that any application for 
funds under this title for community facilities or 
infrastructure projects must be certified by the affected 
general purpose local government or governments. The Managers 
intend that the applications subject to this requirement 
include, but are not limited to, those made under the water and 
waste disposal loan and grants programs, the community 
facilities loan and grant programs, the solid waste management 
grant program, the water and waste technical assistance and 
training program, and the emergency community water assistance 
program.
      The Managers intend for the funding for federally 
recognized Indian tribes to be targeted to communities or 
reservations in Indian country in economic distress or with 
significant percentages of residents living in poverty. Indian 
tribes are expected to comply with the requirement of preparing 
a strategic plan.
      The Managers agree that a wide range of factors should be 
considered in setting allocations to reflect the diverse needs 
of rural America. The Managers suggest that the Department 
consider outmigration, cost of living, housing affordability, 
and financial need in developing the funding formula for 
allocation to the states under the RCAP.
      The Managers encourage the States to use their state 
grant funds to accomplish state and local rural development 
objectives. Suggested uses for grant funds include, but are not 
limited to, revolving loan funds, matching grants, and 
guaranteed loans. The Managers believe the State RCAP 
guaranteed loan program will enable local governments receiving 
RCAP state grant funds to obtain loan guarantees by pledging 
current and future RCAP funds as security for the loan. In 
order to obtain the guarantee, borrowers will be required to 
provide additional security, such as pledges of existing grant 
balances and program income, liens on assets financed with the 
guaranteed loan funds, or the establishment of loan reserves. 
In all cases, USDA will structure additional security 
requirements to ensure that each guaranteed loan is adequately 
collateralized with existing assets and credit enhancements.
      The Managers expect the National Rural Development 
Partnership to be the foundation upon which the Interagency 
Working Group is established. In 1990, the National Rural 
Development Partnership (the Partnership), a nonpartisan 
interagency working group whose mission is to ``contribute to 
the vitality of the Nation by strengthening the ability of all 
rural Americans to participate in determining their futures,'' 
was launched by Executive order. The Partnership consists of 
senior program managers representing over 40 federal agencies, 
as well as national representatives of public interest, 
community-based, and private-sector organizations.
      The Managers expect the Interagency Working Group, like 
the Partnership, to act as an information resource and 
facilitator of effective rural development initiatives. It will 
serve as the bellwether of rural development activities in the 
United States, monitoring activities and initiatives and 
reporting to Congress on what advances and what fails to 
advance local improvements. In this regard, the Managers 
believe that the Partnership should continue its role in 
monitoring and reporting on policies and programs that work, as 
well those that fail, to address the needs of rural America.
      In addition, State Rural Development Councils (RDC) 
should continue to act as the conduit to the Partnership. RDC 
participation is driven not by access to new program dollars 
but by a goal to increase the effective use of existing rural 
development assistance.
      The State Councils are expected to play a role in the 
formulation of local needs assessments and in the development 
of state criteria for the distribution of RCAP funds. RDCs will 
continue to play the role of monitor and trouble-shooter for 
each state and work with the Partnership and Interagency 
Working Group to advance the goals of RCAP.
      The Managers expect the Department, in implementing its 
rural development activities, to give priority to those areas 
at greatest risk because of health concerns. Areas such as the 
``Colonias'' lack not only the basic necessities of water and 
waste facilities, but also all other basic infrastructure 
development. The Department, through its various rural 
development programs, should look at the ``totality of 
circumstances'' in such areas and develop strategies that will 
address all the needs in order to ensure total development of 
these areas.
Rural Venture Capital Demonstration Program
      The Senate amendment establishes in section 381K a Rural 
Venture Capital Demonstration Program to demonstrate the 
utility of guarantees to attract increased private investment 
in rural business enterprises. The Secretary may in each fiscal 
year designate up to 10 community development venture capital 
organizations to participate. Each organization will establish 
an investment pool for the purpose of making equity investments 
in rural businesses. The Secretary is required to guarantee not 
more than 30 percent of the total funds in a pool against loss. 
The Secretary is authorized to issue guarantees covering not 
more than $15 million for any fiscal year. The term of a 
guarantee may not exceed 10 years.
      The Managers intend that the demonstration project be 
implemented in a manner which ensures geographic diversity. The 
Managers are concerned that the program's merit cannot be 
accurately tested if the only participating organizations are 
concentrated in a single State, region, or area. The Managers 
believe that the demonstration project must be implemented in 
various States, regions, and areas in order to demonstrate 
viability in a diverse national economy.
      The Managers agree that the availability of loan programs 
alone do not meet all the needs of rural areas for financing. 
In order to develop the diverse economic base crucial for 
survival in the modern economy, rural communities need access 
to equity capital to finance business start-up and expansion. 
The private-sector venture capital markets that fuel economic 
growth often do not reach into small communities. The intent of 
this demonstration program is to channel venture capital to 
business ventures that would not otherwise be targeted by 
traditional venture capital firms.
      The Managers intend this program to demonstrate the 
utility of using a limited investment guarantee to draw private 
investment capital to distressed rural communities. The 
organizations selected to participate in the demonstration will 
use the guarantee as a tool to attract investments from 
philanthropic organizations, individual and corporate 
investors, and other sources of private sector capital to 
finance business development activities. Investments from 
private investors will be pooled by the participating 
organization into a Rural Business Investment Pool, and USDA 
will guarantee up to 30 percent of the pool's value against 
loss. The Committee expects that most if not all of the pools 
will earn money over the term of the investments. Any pool 
losses on the guarantee shall be paid out of the national 
office reserve fund.
      An organization wishing to participate in this program 
must submit a plan that describes how the funds will be raised 
and merged in the pool and how the guarantee will help it raise 
money. Each applicant will be asked to describe the need for 
venture capital in its area, the types of business ventures 
that will be targeted for investments, the process by which 
investments will be chosen, and the likely forms of investment. 
The Secretary is also expected to ensure that organizations 
have procedures in place to avoid conflicts of interest, 
mismanagement, and fraud.
      The Secretary will choose the organizations on the basis 
of a competition, in which priority will go to organizations 
that can demonstrate their experience--or the experience of 
their top officials--in venture capital and small business 
equity investments or in community development finance. 
Priority will also be based on an organization's ability to 
serve low-income communities, generate local wealth, and target 
jobs to low-income individuals.
      Applicant organizations should demonstrate strong 
business relationships with established banks and other 
financial institutions or with community-based organizations. 
Since diversification of risk will help reduce the likelihood 
that the pool loses money, and thus will reduce the cost to the 
government, the Secretary shall also give priority to 
organizations that propose to maintain an investment portfolio 
averaging $500,000 or less per business.
(32) Community Facilities Grant Program; simplified applications
      The Senate amendment authorizes grants under the 
Community Facilities program. Grants can not exceed $10 million 
in any fiscal year to any entity. A grant may not exceed 75 
percent of the development cost of the facility. The Secretary 
is directed to provide a graduated scale for the amount of the 
Federal share of the grant, establishing greater levels of 
grant funding for facilities in communities that have lower 
population and income levels. (Section 762)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that requires the Secretary to develop a 
streamlined, simplified, and uniform application for specified 
rural development programs within one year of enactment. 
(Section 762 and 763)
      The Managers are concerned about the costly, complex, and 
onerous paperwork involved in making an application for 
assistance under Federal rural development programs. Managers 
intend for the Secretary of Agriculture to create within one 
year of the date of enactment one streamlined, simplified, and 
uniform application for all rural development programs eligible 
for funding under this title

    Subtitle C--Amendments to the Rural Electrification Act of 1936

(33) Purposes investigations and reports
      The Senate amendment authorizes the Secretary to make or 
commission studies, investigations, and reports regarding 
financial, technological, and regulatory matters affecting the 
condition and progress of electric and telecommunications 
service and economic development in rural areas. An obsolete 
provision requiring the issuance of regulations is deleted. 
(Section 771)
      The House bill no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 771)
(34) Authorization of appropriation; Reconstruction Finance Corporation
      The Senate amendment eliminates references to the 
Reconstruction Finance Corporation, an obsolete funding 
mechanism for RE Act programs, and annual state allotments of 
funds based on farms not receiving central station electric 
service. The authorization of appropriations is retained. 
(Section 772)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 772)
(35) Loans for electrical plants and transmission lines
      The Senate amendment eliminates authority for 2 percent 
loans for electrical plants and transmission lines. (Section 
773)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 773)
(36) Loans for electrical and plumbing equipment
      The Senate amendment repeals authority for loans for 
wiring and plumbing which has not been funded since 1969. 
(Section 774)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 774)
(37) Testimony on budget requests
      The Senate amendment eliminates a requirement that the 
Secretary testify before the House and Senate Agriculture 
Committees to justify the budget request. (Section 775)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 775)
(38) Transfer of functions of administration
      The Senate amendment repeals an obsolete provision that 
allowed the President to transfer the responsibilities of the 
ERA to the Secretary in 1935. (Section 776)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 776)
(39) Annual report
      The Senate amendment repeals the requirement for the 
Secretary to submit an annual report to Congress summarizing 
RUS activities. (Section 777)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 777)
(40) Prohibition on restricting water and waste facility services to 
        electric customers
      The Senate amendment prohibits the ``tying'' of water and 
waster facility financing to the purchase of electric service 
from RUS borrowers, duplicating a provision that governs water 
and waste programs under the Consolidated Farm and Rural 
Development Act. (Section 778)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendment maintaining the provisions of the Consolidated 
Farm and Rural Development Act and requiring the Secretary to 
publish implementing regulations within 60 days of enactment. 
(Section 778)
(41) Telephone loans terms and conditions
      The Senate amendment eliminates a provision that allows 
telephone borrowers to determine the term of a telephone loan. 
(Section 779)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 779)
(42) Privatization program
      The Senate amendment repeals an obsolete provision for an 
electric loan prepayment plan for an Alaskan electric 
cooperative. (Section 780)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 780)
(43) Rural business incubator fund
      The Senate amendment repeals authority for the Rural 
Business Incubator Fund. (Section 781)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 781)

         Subtitle D--Miscellaneous Rural Development Provisions

(44) Interest rate formula
      The Senate amendment authorizes the Secretary to 
reestablish the interest rate for the Resource Conservation and 
Development loan program and the Watershed loan program. 
(Section 791)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 791)
(45) Grants for financially stressed farmers, dislocated farmers, and 
        rural families
      The Senate amendment eliminates unfunded authority for a 
grant program that targets financially stressed farmers, 
dislocated farmers and rural families. (Section 792)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 792)
(46) Fund for rural america
      The Senate amendment creates an account called the Fund 
for Rural America. The Secretary is given authority to transfer 
from the Commodity Credit Corporation into the account $50 
million in fiscal year 1996, $100 million in fiscal year 1997, 
and $150 million in fiscal year 1998.
      The Secretary may use funds for the following rural 
development program activities authorized in:
            The Housing Act of 1949: direct loans to low-income 
        borrowers pursuant to section 502; loans for financial 
        assistance for housing for domestic farm laborers 
        pursuant to section 514; financial assistance for 
        housing domestic farm labor pursuant to section 516; 
        grants and contracts for mutual self-help housing 
        pursuant to section 523(b)(1)(A); grant for Rural 
        Housing Preservation pursuant to section 533.
            Funds may also be used for Intermediary Relending 
        Program loans, Consolidated Farm and Rural Development 
        Act section 310B Rural Business Enterprises grants, 
        grants, direct and guaranteed loans for water and 
        wastewater projects pursuant to section 306 of the 
        Consolidated Farm and Rural Development Act, 
        Consolidated Farm and Rural Development Act section 
        310E downpayment program assistance for beginning 
        farmers, grants for outreach to socially disadvantaged 
        farmers and ranchers pursuant to section 2501 of the 
        Food, Agriculture, Conservation, and Trade Act of 1990, 
        and grants pursuant to section 204(6) of the 
        Agricultural Marketing Act of 1946.
      Up to one-third of the funds from the account may be used 
to fund competitive research grants. Grants may be used for 
research, extension, and education. Grants shall not be made 
for projects eligible for funding under research and commodity 
promotion programs. Matching funds are required if the grant is 
for applied research that is commodity-specific and not of 
national scope. Not more than 4 percent of the funds made 
available for research can be used for administrative costs. 
Research funds in the account shall not be used for the 
construction of new buildings or the acquisition, expansion, 
remodeling, or alteration of an existing building, or in excess 
of 10 percent of the annual allocation for commodity-specific 
projects not of national scope.
      The Senate amendment provides that no monies from the 
Fund may be used for an activity if the current level of 
appropriation for the activity is less than 90 percent of the 
1996 fiscal year appropriation for the specific activity 
adjusted for inflation. (Section 507)
      The House bill has no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change the name of the Under Secretary for 
Rural and Economic Development to the Under Secretary for Rural 
Development and an amendment to make available beginning on 
January 1, 1997, out of any funds in the Treasury not otherwise 
appropriated $100,000,000 for fiscal year 1997, $100,000,000 
for fiscal year 1998, and $100,000,000 for fiscal year 1999. 
The Secretary shall use one-third of the funds made available 
to the Fund for a fiscal year for rural development activities 
and one-third of the funds made available to the Account for a 
fiscal year for competitive research activities. The remaining 
one-third may be used for either rural development or research 
at the discretion of the Secretary.
      Rural development activities include the following 
programs under the Housing Act of 1949: direct loans to low 
income borrowers pursuant to section 502; loans for financial 
assistance for housing for domestic farm laborers pursuant to 
section 514; financial assistance for housing of domestic farm 
labor pursuant to section 516; grants and contracts for mutual 
and self help housing pursuant to section 523(b)(1)(A); grants 
for Rural Housing Preservation pursuant to section 533; and 
Rural Rental Housing Assistance pursuant to section 521. In 
addition, all rural development programs including those 
authorized under the Consolidated Farm and Rural Development 
Act; specified sections of the FACT Act of 1990; Title V of the 
Rural Development Act of 1972 and specified sections of the 
Human Services Reauthorization Act of 1986 and the Food 
Security Act of 1985.
      The Secretary shall conduct the specified rural 
development programs in accordance with and subject to current 
program authorities. Funds shall only be expended on programs 
that received appropriations in fiscal year 1995. Not more than 
20 percent of funds dedicated to all rural development 
activities shall be expended on housing grant and loan 
activities.
      Further, in any fiscal year, the Secretary shall not 
announce the fiscal year's allocation for any program pursuant 
to this section until one business day following the day the 
appropriations bill for the fiscal year becomes law.
      The Secretary may use the funds in the account for grants 
for research, extension and education to increase international 
competitiveness, efficiency, and farm profitability; reduce 
economic and health risks; conserve and enhance natural 
resources; develop new crops, new crop uses, and new 
agricultural applications of biotechnology; enhance animal 
agricultural resources; preserve plant and animal germplasm; 
increase economic opportunities in farming and rural 
communities; and expand locally owned value added processing.
      The Secretary may make a grant to colleges and 
universities, including land grant colleges and universities 
with established programs of research, extension, or higher 
education, Federal research agencies and national laboratories, 
and private research organizations with established and 
demonstrated capacity to perform research or technology 
transfer.
      A grant made under this paragraph may be used by a 
grantee for one or more of the following uses: outcome-oriented 
research at the discovery end of the spectrum to provide 
breakthrough results, exploratory and advanced development and 
technology with well identified outcomes, national, regional, 
or multi-State programs oriented primarily towards extension 
programs and education programs demonstrating and supporting 
the competitiveness of United States agriculture.
      Not less than 15 percent of the amounts made available 
under this section for a fiscal year shall be awarded to 
entities ranking in the lower one-third on the basis of Federal 
research funds received from sources other than this section.
      The Secretary shall establish criteria for allocating 
grants based on the priorities for uses of funds in 
consultation with the Advisory Board. The Secretary shall seek 
and accept proposals for grants; determine the relevance and 
merit of proposals through a system of peer and advisory board 
review; and award grants on the basis of merit, quality, and 
relevance to advancing the national research and extension 
purposes.
      Research grants shall be awarded on a competitive basis. 
A grant shall have a term that does not exceed 5 years.
      The Secretary shall require the funding of the grant with 
equal matching funds from a non-Federal source if the grant is 
for applied research that is commodity specific, and is not of 
national scope.
      The Secretary shall administer this section through the 
Cooperative State Research, Education, and Extension Service of 
the Department of Agriculture.
      Funds shall be available for obligation for a 2 year 
period, except the Secretary may use not more than 4 percent of 
the funds made available under this paragraph for 
administrative costs incurred by the Secretary. Furthermore, 
funds made available for research grants shall not be used for 
the construction of a new building or the acquisition, 
expansion, remodeling, or alteration of an existing building 
(including site grading and improvement and architect fees). 
(Sections 793 and 794)
Rural development component
      The Managers intend, under Subsection (c)(1)(B), that 
established rural development programs with current authority 
under the Consolidated Farm and Rural Development Act, 
specified sections of the FACT Act of 1990, Title V of the 
Rural Development Act of 1972, and specified sections of the 
Food Security Act and the Human Services Reauthorization Act of 
1986 regarding intermediary lending, be eligible for funds made 
available under the Fund for Rural America. These programs 
include the water and waste disposal loan and grant programs, 
the community facilities loan and grant programs, the solid 
waste management grant program, the rural water and waste 
technical assistance and training program, the distance 
learning and telemedicine program, the rural cooperative 
development grant program, the rural business opportunity grant 
program, the business and industry guarantee program, the rural 
business enterprise grant program, activities of the 
Alternative Agricultural Research and Commercialization 
Corporation, the intermediary relending program, the 
downpayment program for beginning farmers, rural cooperative 
development grant program, and grants for outreach and 
technical assistance for socially disadvantaged farmers and 
ranchers program.
      The Managers are concerned about the backlog of water and 
wastewater program applications which, according to USDA 
reports, is as high as $3 billion. The Managers expect that the 
Secretary make satisfying these outstanding needs a priority 
with respect to the Fund for Rural America.
      A continuing resolution that provides appropriations in a 
fiscal year for the Department of Agriculture meets the same 
conditions of allowing the Secretary to announce program 
allocations from the Fund. The Managers intend the Secretary to 
make such allocations in a manner to provide additional funding 
to appropriation acts.
Research Component
      It is the intent of the Managers that the uses of the 
fund could include consideration of genome mapping projects 
which may lead to increases in international competitiveness.
      The Managers support high-quality, peer reviewed 
biotechnology research with practical applications carried out 
by consortia of public and private universities and companies 
and selected through a competitive process. The Managers intend 
that such a consortia be considered eligible grantees for 
assistance under the research component of the Fund for Rural 
America.
      The managers intend that the eligibility for National 
Laboratories to compete for grants under the Fund for Rural 
America is an outgrowth of the Memorandum of Understanding 
(MOU) signed between the Department of Agriculture (USDA) and 
the Department of Energy (DOE) in November, 1995. The managers 
encourage the National Laboratories to continue their efforts 
in a cooperative manner with the agricultural community. It is 
the intent of the managers that the USDA and DOE continue their 
efforts to meet the objectives outlined in the recent MOU.
      Further, it is the intent of the Managers that the 
independent review by the advisory board should facilitate 
better communication between the scientific community and the 
end user of their products. Therefore, the decision to fund 
proposed projects under the research component of the Fund for 
Rural America will be determined by the program administrator 
based on recommendations of the peer review panel and the 
advisory board. The peer review panel will review the 
scientific merit of the proposal. The advisory board will 
review the proposal based on the purposes and objectives 
established in the request for proposal. The advisory board 
shall have flexibility to establish their procedures.

    Title VIII--Agricultural Research, Extension and Education Title

Subtitle A--Modification and Extension of Activities Under the 1977 Act

(1) Purposes of agricultural research, extension and education.
      The Senate amendment revises the list of purposes of 
federally supported agricultural research, extension, and 
education in Section 1402 of the National Agricultural 
Research, Extension, and Teaching Policy Act (NARETPA) of 1977. 
(Section 801)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment making technical changes. (Section 801)
      The Managers encourage the Secretary to consider the 
benefits of conservation tillage and agricultural biotechnology 
as significant components of USDA's agricultural research, 
extension and education programs to conserve natural resources.
(2) National Agricultural Research, Extension, Education and Economics 
        Advisory Board.
      The Senate amendment amends Section 1408 of NARETPA of 
1977 to establish the National Agricultural Research, 
Extension, Education, and Economics Advisory Board (Board) and 
to eliminate the authority for the National Agricultural 
Research and Extension Users Advisory Board. The Board shall 
consist of 25 members appointed by the Secretary and selected 
from national farm, commodity, agribusiness, environmental, 
consumer, and other organizations. The Secretary shall ensure 
that full-time farmers and ranchers are included on the Board. 
The duties of the Board are to advise the Secretary and land 
grant colleges and universities regarding policies and 
priorities and their effectiveness, the implementation of the 
Government Performance Review Act, and the technology review 
process. The Board is required to consult with persons that 
will benefit from Federally-funded research, extension, 
education, and economics. The term for Board members is 3 
years. The Board is deemed to have filed a charter for purposes 
of the Federal Advisory Committee Act. Authority for the Board 
expires on September 30, 2002. (Section 804)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to increase the number of members from 25 to 
30 and list the types of organizations from which members would 
be selected. (Section 802)
      The Managers strongly encourage the Secretary to ensure 
that the advisory board has at least five farmers or ranchers 
as representatives. The Managers intend that the members of the 
board described in this section as actively engaged in the 
production of a plant or food animal commodity be full-time 
farmers or ranchers.
      The National Agricultural Research, Extension, Education 
and Economics Board is intended to review and provide 
consultation regarding priorities to both the Secretary and 
land-grant colleges and universities. The Board is encouraged 
to solicit opinions and recommendations from those who will 
benefit from and use federally funded agricultural research, 
extension, education and economics in an effort to ensure that 
viewpoints of citizens and appropriate organizations are taken 
into account when setting priorities. The Managers intend that 
technology assessments should be conducted by a group of 
qualified professionals. This new Advisory Board may also 
review and provide input on the capacity and coordination of 
research carried out on a regional basis, particularly as it 
relates to strategic planning for the Department.
(3) Federal Advisory Committee Act Exemption for Federal-State 
        Cooperative Programs
      The Senate amendment amends Section 1409A of NARETPA of 
1977 to exempt groups composed of state cooperative institution 
officials and employees and full-time federal employees from 
FACA coverage. Meetings of such groups shall be open to the 
public. Records of meetings, including minutes, are required to 
be kept and made available to the public upon request. (Section 
806)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to add public universities and postsecondary 
institutions. (Section 803)
      The managers intend that employees of Hispanic-Serving 
Institutions can participate in cooperative efforts concerning 
agricultural research, extension or education which are exempt 
from FACA.
(4) Coordination and Planning of Agricultural Research, Extension and 
        Education
      The Senate amendment requires the Secretary to develop a 
system to monitor and evaluate agricultural research and 
extension conducted or supported by the Federal government.
      For the activities of the Department that relate to food 
safety, animal or plant health, research, education, or 
technology transfer, the Secretary may transfer up to 5 percent 
of funds to an agency reporting to the Under Secretary for 
Research, Education and Economics to address imminent or 
emerging threats to food safety and animal and plant health.
      Any committee, board, commision, panel, or task force 
established solely to review proposals for funding under any 
competitive research, extension, or education program is 
exempted from Federal Advisory Committee Act requirements. 
(Section 807)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to require an analysis of state of the art 
information technology systems, require that the system be 
developed to permit public access, and provide an authorization 
for appropriations. The Conference substitute also strikes the 
proposed 5% transfer authority. (Section 804)
      It is the intent of Congress that the Current Research 
Information System (CRIS) and other program information 
tracking systems used by Research, Extension and Education be 
integrated into a Management Information System (MIS) that 
tracks all research, extension and education programs that 
receive funding from the USDA. This system will include 
information about the goals, objectives, scope and current 
status of these programs in a format that can be used to report 
to Congress and that is consistent with the requirements of the 
Government Performance Review Act. Moreover, this MIS must be 
structured so that the Secretary is able to report to Congress 
on the extent of activities being funded for each of the 
purposes identified in Section 1402 of NARETPA of 1977. One 
component of this MIS shall be designed so that the findings 
and accomplishments of USDA-funded research and extension 
programs are fully accessible by the general public through on-
line access, with full search and retrieval capacities. Another 
component of this MIS shall be designed so that researchers, 
extension agents and specialists will be able to search and 
retrieve detailed information on all USDA-funded research and 
extension activities across the country, with the capacity to 
search for projects and findings that are pertinent to their 
agronomic, natural resource, and climatic parameters, as well 
as the economic and social conditions of their state or county.
      To develop a ``cutting edge'' MIS quickly and 
expeditiously, it is understood that the Department will need 
immediate access to highly qualified computer systems 
specialists, theorists and technicians. The Congress expects 
the Secretary to contract out the development of this MIS or 
some subset of the project, with a university, a consortium of 
universities, or the private sector. It is the expectation of 
Congress that the USDA will set a goal that the MIS be 
designed, implemented and fully functional within three years 
of passage of this legislation.
      This section also provides an exemption from the Federal 
Advisory Committee Act (FACA) for entities created solely to 
review proposals for applications submitted for funding under 
any competitive research, extension, or education program 
carried out by the Secretary of Agriculture. The managers 
understand that in addition to reviewing proposals and 
applications for the purpose of evaluating them and making 
award recommendations, entities that are exempted from FACA, 
pursuant to this section also may render to the Secretary 
program advice derived from such review process.
(5) Grants and fellowships for food and agricultural sciences education
      The Senate amendment amends Section 1417 of NARETPA of 
1977 to permit the Secretary to provide higher education funds 
to research foundations maintained by colleges and 
universities. The Secretary may make capacity building grants 
to 1890 institutions for both teaching and research. The 
authorization of appropriations is extended at the level of $60 
million through fiscal year 2002.
      Section 1417 of NAREPTA is further amended to require the 
Secretary to promote and strengthen secondary education in 
agriscience and agribusiness and to allow the Secretary to make 
grants to public secondary education institutions, 2-year 
community colleges, and junior colleges to promote and support 
agriscience and agribusiness education. The functions and 
duties of the Secretary of Education regarding FFA are 
transferred to the Secretary of Agriculture. (Section 808)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997 and strike the FFA 
transfer from the Secretary of Education to the Secretary of 
Agriculture. (Section 805)
(6) Grants for research on the production and marketing of alcohols and 
        industrial hydrocarbons from agricultural commodities and 
        forest products
      The Senate amendment extends the authorization of 
appropriation of $20 million for this research through 2002. 
(Section 809)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 806)
(7) Policy research centers
      The Senate amendment authorizes the Secretary to make 
grants, competitive grants, and special research grants to 
policy research centers for research and education programs 
regarding the implications of public policies on the farm and 
agricultural sectors; the environment; rural families and 
economies; and consumers, food and nutrition. State 
agricultural experiment stations, colleges and universities, 
and other institutions and organizations are eligible to 
receive grants. Funds may be used for research and education. 
There are authorized to be appropriated such sums as are 
necessary for fiscal years 1996 through 2002. (Section 810)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 807)
      In authorizing grants for policy analysis under this 
section, the Managers acknowledge the valuable work of several 
analytical institutes associated with universities. At the same 
time, the Managers do not intend to confine the universe of 
potential grantees to these institutions, or indeed to 
universities generally.
      The Managers also note that policy analysis must be clear 
about what it does and does not demonstrate. For example, an 
analysis which describes the effect of a proposed policy change 
on the incomes of agricultural producers, but does not attempt 
to estimate the same policy change's effect on input suppliers, 
processors, rural employment or total rural economic activity, 
cannot give a complete picture of how the policy change in 
question might affect rural America. The analysis might be 
quite useful, but it is important that its limitations be made 
clear. The principle here is that policy analysis is helpful to 
the extent that policymakers--and the public--understand both 
its uses and its limits.
      In identifying these possible weaknesses of current 
analyses, the Managers do not intend to be critical of the 
dedicated professionals who perform a valuable service in 
analyzing a host of alternative policies. Rather, the Managers 
intend to contribute to a healthy discussion of whether current 
analytical conventions are adequate and whether refinements and 
improvements might be made.
(8) Human Nutrition Intervention and Health Promotion Research Program
      The Senate amendment amends Section 1424 of NARETPA of 
1977 to eliminate the unfunded authority for the Food Science 
and Nutrition Research Center and replace it with authority for 
the Secretary to award grants for a research initiative on 
human nutrition intervention and health promotion. There are 
authorized to be appropriated such sums as are necessary for 
fiscal years 1996 through 2002. (Section 811)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997 and to authorize 
research to combine medical and agricultural research. (Section 
808)
      This section authorizes a multi-year research initiative 
on human nutrition intervention and health promotion. In 
carrying out research projects under this section, the 
Secretary may take into account the unique opportunity outlined 
in the Lower Mississippi Delta Development Commission report 
which is currently being addressed by the Department of 
Agriculture through the Agricultural Research Service and 
Pennington Biomedical Research Institute at Louisiana State 
University, Southern University at Baton Rouge, Alcorn State 
University, the University of Southern Mississippi, the 
University of Arkansas at Pine Bluff and the Arkansas 
Children's Hospital Research Institute, all operating as equal 
partners. In carrying out research projects under this section, 
the Secretary may consider the special nutritional needs of the 
rural elderly and take into account the research being 
coordinated by Geisinger Medical Center in Danville, 
Pennsylvania. In carrying out research projects under this 
section, the Secretary may consider designing and developing 
new foods to improve food production and processing and to 
improve the nutritional quality of the food supply.
(9) Food and Nutrition Education Program
      The Senate amendment extends the authorization for 
appropriation of $83 million for the Expanded Food and 
Nutrition Education Program (EFNEP) through 2002. (Section 812)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 809)
(10) Purposes and findings relating to animal health and disease 
        research
      The Senate amendment amends Section 1429 of NARETPA of 
1977 to add food safety and animal well-being to the list of 
purposes of animal health and disease research. (Section 813)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 810)
      Society periodically amends how it acts and reacts to 
particular considerations. New terminology emerges over time 
attempting to capture new trends, new thoughts, and new 
considerations when describing a social condition. With respect 
to interactions between humans and animals, the term of art 
``animal well-being'' has emerged replacing ``animal welfare'' 
to various degrees in literature and language of the day.
      The Managers recognize that the term ``animal well-
being'' can have slightly different interpretations. Therefore 
the term ``animal well-being'' for the purposes of this Act 
shall represent the basic efforts to assure proper care, 
treatment and shelter of animals, and the elimination of 
unnecessary cruel or painful treatment. However, the defining 
criteria shall include efforts to include more specific 
clinical criteria such as the evaluation of appetite, growth 
rate, reproduction and production levels. In other words, 
utilize tangible physical indicators or measurable endpoints to 
interpret how the animal can ``communicate'' a status of well-
being to their human stewards.
(11) Animal health and disease continuing research
      The Senate amendment extends the authorization of 
appropriation of $25 million through 2002. The formula for 
allocating funds among the States is amended to include the 
value of and income from aquaculture. (Section 815)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 811)
(12) Animal health and disease national or regional research
       The Senate amendment clarifies that research under 
section 1434 of NARETPA of 1977 may include pre-harvest and on-
farm food safety and animal well-being. The authorization for 
appropriation is extended through 2002 at a level of $35 
million. State agricultural experiment stations, colleges and 
universities, and other organizations and institutions are 
eligible for grants. Pre-harvest and on-farm food safety and 
animal well-being are added to the list of problems that the 
Secretary is required to prioritize annually. Any panel or 
board created solely for reviewing applications under this 
section is exempt from the Federal Advisory Committee Act. 
(Section 816)
       The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 812)
       This section also provides an exemption from the Federal 
Advisory Committee Act (FACA) for entities created solely to 
review proposals for applications submitted for funding. The 
managers understand that in addition to reviewing proposals and 
applications for the purpose of evaluating them and making 
award recommendations, entities that are exempted from FACA, 
pursuant to this section also may render to the Secretary 
program advice derived from such review process.
(13) Grant program to upgrade agricultural and food sciences facilities 
        at 1890 land-grant colleges
       The Senate amendment provides an authorization of 
appropriation of $15 million through 2002 for the acquisition 
and improvement of facilities, equipment, and libraries used 
for agricultural and food sciences at 1890 institutions. 
(Section 818)
      The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision to 
change 2002 to 1997. (Section 813)
(14) National Research and Training Centennial Centers Programs, 
        programs for Hispanic-serving institutions, and international 
        agricultural research and extension
       The Senate amendment extends the authorization for 
appropriation of $2 million for competitive grants for five 
national research and training centers located at 1890 colleges 
including Tuskegee University through 2002. (Section 819)
       The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997 and to define 
Hispanic-serving institutions and to authorize education grants 
for Hispanic-serving institutions and a technical amendment to 
Section 1458(a)(8) of NARETPA of 1977. (Section 814, 815, and 
816)
(15) Authorization of Appropriations for Agricultural Research Programs
       The Senate amendment extends authorization for 
appropriation of $850 million for agricultural research 
(Agricultural Research Service, animal health and disease, and 
supplemental and alternative crops) through 2002. The 
authorization for appropriation of $310 million for formula 
funds (Hatch Act funds) for state agricultural experiment 
stations is extended through 2002. (Section 821)
       The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 817)
(16) Authorization of appropriations for extension education
       The Senate amendment extends authorization for 
appropriation of $460 million for Extension Service funding 
through 2002. (Section 822)
       The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 818)
(17) Supplemental and alternative crops research
       The Senate amendment extends authorization for 
appropriation of such sums as are necessary for research to 
develop supplemental and alternative crops through 2002. 
Subsections (b) and (c) of section 1473D of NARETPA of 1977 are 
amended to include in the research program under this section 
the development of new commercial products derived from natural 
plant materials for industrial, medical and agricultural 
applications. References to the pilot project are deleted since 
the program is no longer a pilot project. (Section 823)
       The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 819)
(18) Aquaculture Assistance Programs
       The Senate amendment repeals the requirement for an 
annual aquaculture report by the Secretary to Congress. The 
authorization for appropriation of $7.5 million for aquaculture 
assistance programs, including research and regional centers, 
is extended through 2002. The authorization for appropriation 
of $500,000 for each of two specific institutions for research 
on intensive water recirculating aquaculture systems is 
extended through 2002. (Section 824)
       The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997 and to add ornamental 
fish to the definition of aquaculture in Section 1404(3) of 
NARETPA of 1977. (Section 820)
(19) Authorization of appropriations for rangeland research
      The Senate amendment extends the authorization for 
appropriation of $10 million for rangeland research through 
2002. (Section 825)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 821)

Subtitle B--Modification and Extension of Activities Under the 1990 Act

(20) Water quality research, education, and coordination
      The Senate amendment repeals Subtitle G of title XIV of 
the Food, Agriculture, Conservation and Trade Act of 1990. This 
subtitle of the Conservation title authorized funds for the 
development and implementation of a coordinated, integrated, 
and comprehensive intra-agency program to protect waters from 
contamination from agricultural chemical and production 
practices, but was never funded. (Section 831)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 1997. 
(Section 831)
(21) National Genetics Resources Program
      The Senate amendment extends the authorization for 
appropriation of such sums as necessary for the National 
Genetics Resources Program through 2002 and allows the 
Secretary to make genetic material available to other 
countries. (Section 834)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 832)
(22) National agricultural weather information system
      The Senate amendment extends the authorization for 
appropriation of $5 million for the National Agricultural 
Weather Information System through 2002. (Section 835)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 833)
(23) Livestock Product Safety and Inspection Program
      The Senate amendment extends the authorization for 
appropriation of such funds as necessary for the livestock 
product safety and inspection program through 2002. (Section 
838)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 834)
(24) Plant Genome Mapping Program
      The Senate amendment repeals unused authority for a plant 
genome mapping program. (Section 839)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to retain authority for the program. (Section 
835)
(25) Certain Specialized Research Programs
      The Senate amendment repeals authority for specialized 
research projects. The projects authorized under this section 
were not funded under this authority. (Section 840)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to retain authority for ethanol and aflatoxin 
research, and to extend authorization for mesquite, prickly 
pear, and deer tick ecology and related research to 1997. 
(Section 836)
(26) Agricultural Telecommunications Program
      The Senate amendment extends the authorization for 
appropriation of $12 million to encourage the development of an 
agricultural communications network to facilitate and 
strengthen education, extension, research and domestic and 
international marketing through 2002. (Section 841)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 837)
(27) National centers for agricultural product quality research
      The Senate amendment extends the authorization for 
appropriation of such sums as necessary for grants to centers 
for research, development and education programs on food safety 
and wholesomeness through 2002. (Section 842)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997 and to modify purposes 
and delete requirement for submission of plan to Congress. 
(Section 838)
      It is the intention of Managers that this section be 
broadly interpreted to establish a competitive, applied 
research grants program, facilitating industry partnerships and 
supporting a broad spectrum of research, development, and 
education programs to enhance global competitiveness through 
improvements in product quality and competitiveness.
      Through this program, the Managers seek to stimulate 
public and private investment in productive and competitive 
segments of agriculture and to maximize the cost effectiveness 
of that research.
(28) Red meat safety research center authorization and turkey research 
        center
      The Senate amendment repeals authority for a turkey 
research center which has not been funded. (Section 843)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to add an authorization for a red meat safety 
research center. (Section 839)
      The United States has the safest food supply in the 
world. However, the managers recognize the need for red meat 
safety research. Currently the Department of Agriculture 
supports several high quality research centers. It is the 
intent of the Managers that a facility, dedicated to red meat 
safety research, be competitively established at an existing 
facility or a new facility and that it augment, not duplicate, 
current research already being done on red meat safety.
      The Managers are also particularly interested that this 
facility have the ability to interact with national 
organizations and private livestock packing plants in carrying 
out their research.
(29) Indian Reservation Extension Agent Program
      The Senate amendment reauthorizes the Reservation 
Extension Agent Program, established under Section 1677 of the 
Food, Agriculture, Conservation and Trade Act of 1990 through 
2002. On a determination by the Secretary that a program has 
been satisfactorily administered for two years, the Secretary 
shall implement a reduced application process in order to 
reduce regulatory burdens on participating university and 
tribal entities. (Section 555 of Title V)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to strike the 2002 authorization date since 
the program is permanently authorized. (Section 840)
(30) Assistive Technology Program for farmers with disabilities
      The Senate amendment extends the authorization for 
appropriation of not less than $5 million for grants to support 
programs providing on-farm agricultural education and 
assistance to individuals with disabilities who are engaged in 
farming through 2002. The authorization for appropriation of $1 
million for competitive national grants for technical 
assistance, training and information dissemination is extended 
through 2002. (Section 846)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 841)
(31) National rural information center clearinghouse
      The Senate amendment extends the authorization for 
appropriation of $500,000 for the National Rural Information 
Center Clearinghouse within the National Agricultural Library 
through 2002. (Section 848)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 842)
(32) Global climate change
      The Senate amendment extends the authorization for 
appropriation of such sums as necessary for a global climate 
change program is extended through 2002. (Section 849)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 843)

        Subtitle C--Repeal of Certain Activities and Authorities

(33) Subcommittee on Food, Agricultural, and Forestry Research
      The Senate amendment repeals authority for the 
Subcommittee on Food, Agricultural, and Forestry Research of 
the Federal Coordinating Council For Science, Engineering, and 
Technology. (Section 802)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 851)
(34) Joint Council on Food and Agricultural Sciences
      Authority for the Joint Council on Food and Agricultural 
Sciences is repealed. (Section 803)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 852)
(35) Agricultural Science and Technology Review Board
      The Senate amendment repeals authority for the 
Agricultural Science and Technology Review Board. (Section 805)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 853)
(36) Animal Health Science Research Advisory Board
      The Senate amendment repeals authority for the Animal 
Health Science Research Advisory Board. (Section 814)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 854)
(37) Resident Instruction Program at 1890 Land-Grant Colleges
      The Senate amendment repeals Section 1446 of NARETPA of 
1977 which provides for grants for teaching programs at 1890 
institutions. This section was never funded. (Section 817)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 855)
(38) Grants to States for international trade development centers
      The Senate amendment repeals Section 1458A of NARETPA of 
1977. This section authorizes the Secretary to make grants for 
the establishment of International Trade Development Centers, 
but was not funded. (Section 820)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 856)
(39) Rangeland Research and Composting Research and Extension Program
      The Senate amendment repeals the requirement for an 
annual rangeland research report. The authority for the 
Rangeland Research Advisory Board is repealed. (Section 825)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal the composting research and 
extension program. (Sections 857 and 858)
(40) Education program regarding handling of agricultural chemicals and 
        agricultural chemical containers
      The Senate amendment repeals authority for an unfunded 
program to catalogue the federal, state, and local laws and 
regulations for handling unused or unwanted agricultural 
chemical containers. (Section 832)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 859)
(41) Program administration regarding sustainable agriculture research 
        and education
      The Senate amendment repeals authority for the National 
Sustainable Agriculture Advisory Council and a requirement for 
an annual report. (Section 833)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 860)
(42) Research regarding production, preparation, processing, handling, 
        and storage of agricultural products
      The Senate amendment repeals Subtitle E of title XVI of 
the Food, Agriculture, Conservation and Trade Act of 1990. The 
food safety research and grant program authorized by this 
subtitle has not been funded. (Section 836)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 861)
(43) Plant and animal pest and disease control program, specialized 
        research programs, and commission on agricultural research 
        facilities
      The Senate amendment repeals Subtitle F of title XVI of 
the Food, Agriculture, Conservation and Trade Act of 1990. 
Integrated pest management (IPM) research authorized under this 
subtitle has been funded under other authorities. (Section 837)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal animal lean content research, 
immunoassay research, niche market development research, 
scrapie research, and new commercial products from natural 
plant materials research and to repeal Commission on 
Agricultural Research Facilities from Section 1674 of the FACT 
Act. (Section 862, 863, and 864)
(44) Special grant to study constraints on agricultural trade
      The Senate amendment repeals the authority for at least 
two grants to study the impacts of technical barriers, quality 
factors and end-use characteristics in agricultural trade, 
which has not been funded. (Section 865)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 865)
(45) Pilot project to coordinate food and nutrition education programs
      The Senate amendment repeals authority for a pilot 
project for grants to not less than two states for food and 
nutrition education programs, which has not been funded. 
(Section 845)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 866)
(46) Demonstration areas for rural economic development
      The Senate amendment repeals authority for grants to 
rural areas to serve as demonstration areas for rural economic 
development, which has not been funded. (Section 847)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 867)
(47) Technical advisory committee regarding global climate change
      The Senate amendment repeals authority for a technical 
advisory committee, which has not been funded. (Section 849)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 868)
(48) Committee of Nine under Hatch Act of 1887
      The Senate amendment deletes authority for the Committee 
of Nine from the Hatch Act. (Section 864)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 869)
(49) Cotton crop reports
      The Senate amendment repeals the requirement that cotton 
crop production reports be issued at 3:00 p.m. (Section 867)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 870)
(50) Rural Economic and Business Development and Additional Research 
        Grants Under Title V of Rural Development Act of 1972
      The Senate amendment amends Section 502 of the Rural 
Development Act of 1972 to repeal authority for an Extension 
Service rural economic and business development program to 
enable states or counties to employ specialists, which has not 
been funded (section 502(g)). Authority for a competitive grant 
program for rural development research, which has not been 
funded, is repealed (section 502(j)). (Section 868)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 871)
(51) Human nutrition research
      The Senate amendment repeals a requirement for an annual 
report on human nutrition research activities. (Section 869)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 872)
(52) Grants to upgrade 1890 land-grant college extension facilities and 
        indian subsistence farming demonstration grant program
      The Senate amendment repeals obsolete authority for a 
program to upgrade 1890 land-grant college extension 
facilities. (Section 871)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to repeal the Indian Subsistence Farming 
Demonstration Grant Program. (Section 873 and 874)

             Subtitle D--Miscellaneous Research Provisions

(53) Critical agricultural materials research
      The Senate amendment extends the authorization of 
appropriation for the Critical Agricultural Materials Act 
through 2002. The requirement for an annual report is 
eliminated. (Section 861)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 881)
(54) 1994 institutions
      The Senate amendment extends the authorization of 
appropriation of $4.6 million for providing land grant status 
to 29 tribal colleges (referred to as 1994 institutions) 
through 2002. The authorization of appropriation of $1.7 
million for institutional capacity building grants for 1994 
institutions is extended through 2002. (Section 862)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision, 
striking the Senate provision.
(55) Memorandum of agreement regarding 1994 institutions
      The Senate amendment states that by January 6, 1997, the 
Secretary shall develop and implement a Memorandum of Agreement 
with the 29 tribally controlled colleges to ensure that 
tribally-controlled colleges and Native American communities 
equitably participate in Department of Agriculture employment 
programs, services and resources. (Section 555 of Title V)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 882)
(56) Smith-Lever Act Funding for 1890 Land-Grant Colleges, Including 
        Tuskegee University
      The Senate amendment amends Section 3(d) of the Smith-
Lever Act to make colleges or universities eligible to receive 
funding under the Act of August 30, 1890, including Tuskegee 
University, or Section 208 of the District of Columbia Public 
Postsecondary Education Reorganization Act, eligible for 
Extension funding under Smith-Lever 3(d) programs. This change 
applies after FY95 to any increases in funding for existing 
Smith-Lever 3(d) programs and to all new Smith-Lever 3(d) 
programs. A conforming amendment is made to section 1444(a) of 
NARETPA of 1977 and to the District of Columbia Public 
Postsecondary Education Reorganization Act to clarify that this 
change would not result in a reduction of other Extension 
Service funding to these colleges and universities. (Section 
863)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to remove the reference to Section 208 of the 
District of Columbia Public Postsecondary Education 
Reorganization Act. (Section 883)
(57) Agricultural Research Facilities
      The Senate amendment amends the Research Facilities Act.
      Section 1 is the short title.
      Section 2 contains new definitions for ``Agricultural 
Research Facility'' and ``Food and Agricultural Sciences''.
      Section 3 establishes the process for reviewing proposals 
for agricultural research facilities. Subsection (a) requires 
proposals to be submitted to the Secretary and the Secretary is 
required to review proposals in the order in which they are 
received. Subsection (b) requires the Secretary to establish 
the application procedure in consultation with the Senate and 
House Appropriations Committees. Subsection (c) requires all 
proposals for new funding for agricultural research facilities 
at colleges, universities or non-profit institutions to be 
reviewed by USDA to determine whether they meet the following 
criteria:
            the availability of at least a 50% non-Federal 
        match in cash;
            the facility must not be duplicative of existing 
        facilities;
            the facility must serve the national research 
        priorities established in section 1402 of NARETPA of 
        1977 and regional needs;
            the college, university, or non-profit institution 
        supporting the facility must demonstrate the commitment 
        to long-term support for operating the facility and 
        conducting research; and
            the facility must reflect the strategic plan for 
        federally supported research facilities established in 
        section 4. Subsection (d) requires the Secretary to 
        review proposals within 90 days and report the results 
        of the evaluation and assessment to the Senate and 
        House Appropriations Committees.
      Section 4 requires the Secretary to develop a ten-year 
strategic plan for the development, construction, 
modernization, consolidation, and closure of federally 
supported research facilities. The plan should reflect the need 
to increase the productivity of and to enhance the 
competitiveness of the U.S. agricultural and food industry. It 
should also reflect the findings of the National Academy of 
Sciences with respect to programmatic and scientific priorities 
relating to agriculture.
      Section 5 exempts panels or board created solely to 
review proposals from the Federal Advisory Committee Act.
      Section 6 authorizes the appropriation of such sums as 
necessary for fiscal years 1996 through 2002 for the study, 
plan, design, structure and related costs of such facilities. 
Administrative costs are limited to 3 percent of the cost of 
the project.
      The new review process would not apply to projects for 
which funds were appropriated for a feasibility study or for 
any phase of the project prior to October 1, 1995, but such 
projects would be included in the strategic plan. The strategic 
plan required by Section 4 shall apply to all federally 
supported agricultural research facilities, including those 
funded prior to the effective date of this title.
      Subsection (b) amends section 1431 of NARETPA of 1985 to 
extend the authorization for appropriation for Federal research 
facilities to 2002 and to delete the requirement for an annual 
report on Federal research facilities. (Section 865)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997; to require 
consultation with the House and Senate Agriculture Committees; 
and to delete the requirement for the Secretary to develop a 
10-year strategic plan for the development, construction, 
modernization, consolidation and closure of federally supported 
research facilities and instead to require the formation of a 
task force to be appointed from the Advisory Board membership 
(established by Section 802 of this Act) as well as others 
demonstrating appropriate expertise to prepare the strategic 
plan within two years for the development, modernization, 
construction, consolidation, and closure of federal 
agricultural research facilities and agricultural research 
facilities proposed to be constructed with federal funds. 
(Section 884)
      This section requires that all proposals for new funding 
for agricultural research facilities at colleges, universities 
or non-profit institutions be reviewed by USDA to determine 
whether they meet specified criteria. The Managers intend that 
feasibility studies completed more than two fiscal years prior 
to enactment but not provided further funding should go through 
this new review process if federal funding is still being 
sought. While an exemption from FACA is provided for a panel 
formed to review the proposals under section 5 of the Research 
Facilities Act, the Managers are not requiring that such a 
panel be formed. This section provides an exemption from the 
Federal Advisory Committee Act (FACA) for entities created 
solely to review proposals for applications submitted for 
funding. The Managers understand that in addition to reviewing 
proposals and applications for the purpose of evaluating them 
and making award recommendations, entities that are exempted 
from FACA, pursuant to this section also may render to the 
Secretary program advice derived from such review process.
(58) National competitive research initiative
      The Senate amendment extends the authorization for 
appropriation of $500 million for a competitive grant program 
for basic and applied research open to all researchers through 
2002. The requirement that not less than 20% of appropriated 
funds shall be available to make grants for mission-linked 
systems research is increased to 40%. Funds will be available 
for a two-year period to allow for the award of grants in a 
more orderly manner. (Section 866)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change 2002 to 1997. (Section 885)
      The Secretary is encouraged to consider grants to 
mission-linked research which contribute to the development of 
applied technologies and information which increase the 
profitability of farms and ranches and increase economic 
opportunities for rural communities.
(59) Rural development research and education
      The Senate amendment amends Section 502 of the Rural 
Development Act of 1972 to clarify that rural development 
Extension programs shall also promote coordinated and 
integrated rural community initiatives that advance and empower 
capacity building. (Section 868)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 886)
      This section makes clear that the Secretary can establish 
a national rural development program supported by the 
Cooperative State Research, Education, and Extension Service 
that provides national focus and local implementation for an 
efficient and effective delivery of training, technical 
assistance, and applied research. Such programs may address 
rural challenges in the areas of leadership development, 
entrepreneurship, business development and management training 
which stimulate small and rural communities to increase jobs, 
income and quality of life.
(59) Dairy goat research program and research to eradicate and control 
        brown citrus aphid and citrus tristeza virus
      The Senate amendment repeals authority for a grant to one 
1890 land grant institution for dairy goat research, which has 
not been funded. (Section 870)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to retain authority for dairy goat research 
through 1997 and with an amendment to add an authorization for 
competitive grants for research to eradicate and control brown 
citrus aphid and citrus tristeza virus. (Sections 887 and 888)
(60) Stuttgart National Aquaculture Research Center
      The Senate amendment amends Public Law 85-132 of March 
15, 1958 to transfer the Fish Farming Experimental Laboratory 
in Stuttgart, Arkansas from the Department of the Interior to 
the Department of Agriculture and to rename it the Stuttgart 
National Aquaculture Research Center. All personnel, assets, 
liabilities, contracts, real and personal property, records, 
and the unexpended balance of appropriations, authorizations, 
allocations, and other funds are transferred. This research 
center shall be complementary to, and not duplicative of, 
facilities of colleges, universities, nonprofit institutions, 
and ARS facilities. (Section 872)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 889)
(61) National aquaculture policy, planning, and development
      The Senate amendment amends the National Aquaculture Act 
of 1980.
      Subsection (a) amends the definition of aquaculture and 
adds a definition of private aquaculture.
      Subsections (b) and (c) designate USDA as the lead agency 
for aquaculture.
      Subsection (e) establishes a national policy for private 
aquaculture and requires the Secretary to develop and implement 
a Department of Agriculture Aquaculture Plan for coordinating 
and implementing aquaculture activities and programs within the 
Department and supporting the development of private 
aquaculture. The Secretary is also authorized to maintain and 
support a National Aquaculture Information Center at the 
National Agricultural Library. The Secretary is directed to 
treat private aquaculture as agriculture and is directed to 
coordinate interdepartmental functions and activities relating 
to private aquaculture.
      Subsection (f) authorizing appropriations of $1 million 
for each of the Departments of Agriculture, Commerce and 
Interior is extended through 2002. (Section 873)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision, 
striking the Senate provision.
(62) Expansion of authorities related to the National Arboretum, 
        Transfer of Aquacultural Research Center, and use of remote 
        sensing data
      The Senate amendment expands the authorities of the 
National Arboretum to allow it to benefit from proceeds 
resulting from concession fees, disposition of excess 
properties, fees from the commercial use of facilities and 
grounds, and license use of the National Arboretum name and 
logo. Any funds received from these activities are to be held 
in a special account for the use of the National Arboretum as 
the Secretary considers appropriate. (Section 874)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to permit the transfer of the Southeastern 
Fish Culture Laboratory in Marion, Alabama to USDA; and to 
direct the Secretary and the Administrator of NASA to work 
together to provide farmers with timely information through 
remote sensing. (Sections 890, 891, and 892)
      In addition to NASA, the managers encourage the Secretary 
to continue cooperative efforts with the Department of Energy 
(DOE). The managers support the Memorandum of Understanding 
that was signed between the Department of Agriculture (USDA) 
and the DOE in November 1995. It is the intent of the managers 
that the cooperative efforts of the DOE and USDA continue.
(63) Study of Agricultural Research Service
      The Senate amendment directs the Secretary to request the 
National Academy of Sciences to conduct a study on the role and 
mission of the Agricultural Research Service. The study is to 
review the mission of federal research conducted by ARS, 
evaluate the strength of ARS science and its relevance to 
national priorities, and examine how the agency's work relates 
to the capacity of the U.S. agricultural research, education 
and extension system overall. The report is to be completed 
within 18 months of the date of enactment. The Secretary is 
directed to make not more than $500,000 of ARS funds available 
for the report. (Section 875)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision, 
deleting the Senate provision.
(64) Sense of the Senate regarding methyl bromide and general funding 
        authority for research, extension and education
      The Senate amendment states it is the sense of the Senate 
that the Department of Agriculture should continue to make 
methyl bromide alternative research and extension activities a 
high priority of the Department and that the Department of 
Agriculture, the Environmental Protection Agency, producer and 
processor organizations, environmental organizations and state 
agencies should continue their dialogue on the risks and 
benefits of extending the 2001 phaseout deadline. (Section 877)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide general funding authority for 
research, extension and education activities and initiatives 
for fiscal years 1998 through 2002. (Sections 893, 897 and 898)
      The conference agreement includes provisions that, for 
fiscal years 1998 through 2002, would direct the Secretary to 
conduct such research, education, and extension activities as 
are specifically funded in appropriations acts, and that would 
authorize the appropriations of such sums as are necessary to 
carry out such activities and initiatives. As indicated 
elsewhere, the Managers also have agreed that each of the 
authorizations of appropriations for agricultural research, 
extension or education programs or activities contained in this 
title shall be extended only through fiscal year 1997. The 
Managers intend that these combined actions will provide 
Congress and the Executive branch a fresh opportunity to 
conduct a thorough and comprehensive review of the federal 
agricultural research, extension and education programs and 
authorities. Our purpose is to revise these programs and 
authorities as necessary to ensure that the needs of the 
nation, and in particular the agriculture sector, are met as we 
transition into a new era. The Managers intend that this review 
be completed and that comprehensive legislation be enacted by 
the end of fiscal year 1997.
(65) Miscellaneous research concerns
      The Managers recognize the importance of continuing 
research to find alternatives to grass burning used by the 
grass seed industry.
      The Managers believe that research and education to 
enhance soil quality and thus human and animal health are 
important. These research and education efforts should begin to 
address our understanding of the interrelationship between soil 
quality, food quality and overall health.
      In recognizing that our nation's soil resources affect 
multiple priorities including farm productivity, water and air 
pollution, food quality and natural resource enhancement as 
well as human and animal health, the Managers encourage 
continuing efforts to develop standardized field and laboratory 
methods to measure and interpret changes observed in soil 
quality indicators across fields, farms and watersheds.
      The Managers recognize that there have been exciting and 
promising advances made in agricultural areas including 
perennial grain polyculture ecosystems; high seed yield; 
management of insects injurious to plants, plant pathogens and 
weeds; nitrogen fertility provided by legumes; minimizing soil 
erosion, use of fossil fuels and synthetic chemicals; and 
enhancement of soil quality. The Managers believe that research 
in these areas would be eligible to compete for competitive 
research funding.
(66) Agriculture weather service centers
      The collection, quality, and reporting of agricultural 
weather data should remain a federal responsibility. Without 
federal responsibility to collect and distribute weather data, 
the specialized forecasts and private sector agricultural 
weather services may not remain viable.
      Furthermore, it is the belief of the Managers that it has 
not been properly demonstrated that the private sector is ready 
to assume responsibility of agricultural weather data 
collection and dissemination. The managers encourage the 
National Weather Service (NWS) to recognize the value of the 
Agriculture Weather Service Centers.
      The Department of Agriculture is familiar with farming 
and the collection and dissemination of weather data. Therefore 
the managers believe that the Department of Agriculture is the 
most suitable agency for this service. The Department has an 
ongoing relationship with the land-grant colleges and 
universities, and via the extension service, can ensure that 
this information is made available to all producers. Therefore, 
the Managers encourage the NWS to work cooperatively with the 
Department to explore ways to continue to provide agricultural 
weather data and transfer this responsibility to the Department 
of Agriculture. The Managers request the NWS and the Department 
of Agriculture to report on the status of Agriculture Weather 
Service Centers to the Congressional Committees on Agriculture 
not later than 30 days after enactment of this Act.
      Until such time that action can be taken on the transfer 
of the Agriculture Weather Service to the Department of 
Agriculture, the Managers request that this important and 
essential service be continued through the Commerce Department, 
and the Department of Agriculture contract for this service. 
Additionally, the Managers request that the funding for this 
service continue through Commerce, State, Justice 
appropriations.

                        Title IX--Miscellaneous

     SUBTITLE A--COMMERCIAL TRANSPORTATION OF EQUINE FOR SLAUGHTER

      The Senate amendment establishes requirements for the 
commercial transportation of equine for slaughter.
      Section 521 sets forth findings. Congress finds that, to 
ensure that equine sold for slaughter are provided humane 
treatment and care, it is essential to regulate the 
transportation, care, handling, and treatment of equine by any 
person engaged in the commercial transportation of equine for 
slaughter.
      Section 522 defines commerce, Department, equine, equine 
for slaughter, foal, intermediate handler, person, Secretary, 
vehicle, and stallion.
      Section 523 directs the Secretary, subject to the 
availability of appropriations, not later than 1 year after the 
date of enactment of this subtitle, to issue, by regulation, 
standards for the humane commercial transportation by vehicle 
of equine for slaughter.
      A person engaged in the regular business of transporting 
equine by vehicle for slaughter as part of a commercial 
enterprise, is prohibited, from transporting horses to 
slaughter except in accordance with the standards and this 
subtitle.
      This section establishes minimum requirements for the 
humane handling, care, treatment, and equipment necessary to 
ensure the safe and humane transportation of equine for 
slaughter, including period of time in transport and vehicle 
requirements. All equine for slaughter must be fit to travel as 
defined by an accredited veterinarian who shall prepare a 
certificate of inspection. No equine for slaughter shall be 
accepted by a slaughter facility unless the equine is inspected 
on arrival and is accompanied by a certificate of inspection.
      Section 524 outlines the record keeping procedures 
required for transportation of equine to slaughter.
      Section 525 states that an act or omission of an employee 
of a person engaged in the business of transporting equine for 
slaughter shall be considered an act or omission of the 
employer as well as the employee. This section also requires 
that if an equine suffers a substantial injury or illness while 
being transported for slaughter on a vehicle, the driver of the 
vehicle shall seek prompt assistance from a licensed 
veterinarian.
      Section 526 authorizes the Secretary to cooperate with 
States, political subdivisions of States, State agencies 
(including State departments of agriculture and State law 
enforcement agencies), and foreign governments to carry out and 
enforce this subtitle (including regulations issued under this 
subtitle).
      Section 527 authorizes the Secretary to conduct such 
investigations or inspections as the Secretary considers 
necessary to enforce this subtitle (including any regulation 
issued under this subtitle), establishes guidelines for the 
investigations, and permits employees or agents of the 
Department to provide assistance to or destroy any equine found 
suffering.
      Section 528 establishes penalties for interfering with 
enforcement of the act.
      Section 529 establishes judicial jurisdiction for cases 
arising from this act.
      Section 530 establishes civil and criminal penalties for 
violations of this Act or regulations.
      Section 531 states that, from sums received as penalties, 
fines, or forfeitures of property for any violation of this 
subtitle (including a regulation issued under this subtitle), 
the Secretary shall pay the reasonable and necessary costs 
incurred by any person in providing temporary care or medical 
assistance for any equine that needs the care or assistance due 
to a violation.
      Section 532 states that nothing in this subtitle prevents 
a State from enacting or enforcing any law (including a 
regulation) that is not inconsistent with this subtitle or that 
is more restrictive than this subtitle.
      Section 533 authorizes appropriations to carry out the 
act. No provision of this subtitle shall be effective or 
enforced during a fiscal year unless funds have been 
appropriated. (Subtitle C of Title V)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment authorizing the Secretary of Agriculture 
because of the unique and special needs of equine being 
transported to slaughter, subject to the availability of 
appropriations, to issue guidelines for the regulation of 
persons regularly engaged in the commercial transportation of 
equine for slaughter within the U.S. Among the issues the 
Secretary shall review are the food, water and rest provided to 
equine in transit and the segregation of stallions from other 
equine during transit. (Sections 901-905)
       It is the intent of the Managers that the object of any 
prospective regulation on this matter will be the individual or 
company which regularly engages in the commercial transport of 
equine to slaughter, and will not extend to individuals or 
others who periodically transport equine for slaughter outside 
of their regular activity.
       It is the intent of the Managers that the Secretary of 
Agriculture to the maximum extent possible employ performance 
based standards rather than engineering based standards when 
establishing guidelines for the regulation of commercial 
transportation of equine species to slaughter.
       The Managers intend that the Secretary of Agriculture's 
authority to issue guidelines for regulation is restricted 
solely to the commercial transportation of equine to a 
slaughter facility. Also, it is not the intention of the 
Managers for the Secretary to inhibit the commercially viable 
transport of equine to slaughter facilities.
       It is the clear intent of the Managers that no 
authorization of authority under this section may be construed 
to give the Secretary authority to regulate the routine or 
regular transportation of non-slaughter equine. Further, it is 
the clear intent of the Managers that no authorization of 
authority under this section may be construed to give the 
Secretary authority to regulate the routine or regular 
transportation of any other livestock, including poultry, to a 
slaughter facility or any other destination or by any 
conveyance.

                     Subtitle B--General Provisions

(1) Livestock Dealer Trust, Interstate Quarantine, Cotton 
        Classification Services, and Plant Variety Protection Act
       The Senate amendment amends Title III of the Packers and 
Stockyards Act of 1921 and establishes a statutory trust for 
the benefit of livestock sellers who sell to livestock dealers 
and market agencies which buy on commission. To ensure prompt 
payment of livestock sellers, all livestock purchased in cash 
sales by a dealer or market agency buying livestock on 
commission shall have all related property (i.e., livestock, 
receivables or proceeds) held in a ``floating'' trust until the 
unpaid seller receives full payment.
      Unpaid sellers lose benefit of the trust if payment has 
not been received within 30 days of the final date for payment, 
or within 15 business days after the seller learns that the 
payment instrument presented has been dishonored. To preserve 
the trust, written notice on non-payment must be given to the 
dealer or market agency and a notice filed with the Secretary. 
Dealers or market agencies buying on commission with average 
annual purchases not exceeding $250,000 are exempt from the 
trust provisions.
       The section also states the trust will not include 
livestock sold to bona fide third-party purchasers. (Section 
541)
       The House bill contains no comparable provision.
       The Conference substitute adopts the Senate provision 
with an amendment striking the Senate provision and adding an 
amendment directing the Secretary of Agriculture to consider 
enhancing passenger movement and commerce on and between 
islands when imposing a quarantine on a state entirely 
comprised of islands; extending cotton classification services; 
and amending the Plant Variety Protection Act to allow 
varieties of potatoes that have been marketed for more than 
four years in another country to apply for and receive 
protection in the U.S. during a one-year period after 
enactment. Protection would be limited to a total of 20 years, 
including the time protected in another country. (Sections 911, 
912, and 913)
       The Managers are concerned about the burden borne by the 
State of Hawaii as a result of the agriculture quarantine 
covering that entire state for the benefit of agricultural 
production within the mainland United States. The Managers 
expect that the Agriculture Committees will give further 
consideration to this matter and that the Department of 
Agriculture will do the same. The Managers fully expect that 
the provisions in this bill relating to the agricultural 
quarantine inspection user fees will help address 
international, as well as domestic preclearance, staffing and 
equipment needs in Hawaii.
(2) Swine health protection, Mount Pleasant National Scenic Area, and 
        pseudorabies eradication program
       The Senate amendment authorizes the Secretary, upon 
request of the Governor or other appropriate official of a 
State, to terminate the State's primary enforcement 
responsibility under the Swine Health Protection Act. This 
section also deletes the requirement that an advisory committee 
be appointed to evaluate state programs regulating the 
treatment of garbage to be fed to swine. (Section 544)
       The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment regarding the designation of the Mount 
Pleasant National Scenic Area and extending the Pseudorabies 
eradication program through 2002. (Section 914, 915, and 916)
(3) Agricultural quarantine and inspection and meat and poultry 
        inspection
       The House bill amends the agricultural quarantine and 
inspection fees provisions in section 2509 of the Food, 
Agriculture, Conservation and Trade Act of 1990 to provide 
that, for the fiscal years 1996-2002, funds in the user fee 
account in excess of appropriated amounts shall be available 
until expended. Beginning with fiscal year 2003, funds in the 
user fee account shall be available without fiscal year 
limitation. This section also provides an exemption from the 
limitation on total number of full-time equivalent positions 
for positions attributable to the provision of agricultural 
quarantine and inspection services. (Section 502)
      The Senate amendment contains an identical provision. 
(Section 504)
      The Conference substitute adopts the House provision with 
an amendment requiring the Secretary to report to Congress 
within 90 days indicating the steps necessary to allow 
interstate shipment of state-inspected meat and poultry and 
requiring the establishment of a Safe Meat and Poultry 
Inspection Panel. (Section 917 and 918)
      The Managers are concerned that because of escalating 
budget pressures and consistent annual increases in passenger 
and commercial air travel, the Agriculture Quarantine 
Inspection (AQI) services are negatively impacted. The Managers 
have thus provided that the amount necessary from the 
appropriations process will be frozen at $100 million between 
fiscal years 1996 and 2002. Furthermore, the Managers have 
provided the funding necessary to make all funds collected by 
APHIS in excess of $100 million available to the Secretary for 
the purpose of AQI without further appropriation. As provided 
in this legislation, the Managers expect that the Agriculture 
Quarantine Inspection user fee fund be no longer subject to 
appropriation starting in fiscal year 2003. The Managers 
further expect that all funds collected after fiscal year 2002 
be deposited in a dedicated account at the U.S. Treasury for 
the express purpose of covering the costs of Agriculture 
Quarantine Inspection. The managers expect the Secretary to 
have sole discretion over the disbursement and use of these 
funds for the purpose of AQI.
      The Managers have observed that virtually every debate 
regarding the current operation and future modernization of the 
federal meat and poultry inspection system concludes with a 
call for an increase in the role of sound science in the 
decision-making process. For this reason, the Managers have 
mandated the creation of the Safe Meat and Poultry Inspection 
Panel. The panel shall consist of experts in medical science 
demonstrating knowledge in areas of microbiology, epidemiology, 
and veterinary medicine, and scientific experts with knowledge 
in animal sciences, poultry science, meat science, and food 
technology.
      It is the intent of the Managers that the Secretary act 
swiftly to appoint members of the panel so that it may begin 
offering its valuable input at the earliest possible 
opportunity. The Managers expect that this panel will address 
matters within its scope that are significant in the 
development of food safety policy. Also, it is the intent of 
the Managers that the panel be operated in a thrifty manner.
      The urgency of implementing this provision is reflected 
in the simple design of this panel. This independent panel of 
scientists is expected to operate unencumbered by the 
traditional political and bureaucratic structure of the U.S. 
Department of Agriculture to advise the Secretary on all 
manners of inspection policy proposals. It is the intent of the 
Managers that the panel will not be limited to initiatives 
within the Department but will consider both its own ideas and 
those from the scientific community at large.
      Further, it is the intent of the Managers that no funds 
for the purpose of in plant inspections be used for the Safe 
Meat and Poultry Inspection Panel. The Managers advise the 
Secretary to examine the Food Safety Inspection Service funding 
currently used for non-inspection related travel, funding that 
is transferred outside of the agency and the resources devoted 
to the Administrator's staff, which has expanded significantly 
in recent years.
      The United States presently allows foreign-inspected meat 
and poultry products to engage in interstate commerce as long 
as the foreign system has been certified by the United States 
Department of Agriculture as ``equivalent'' to the U.S. system. 
At the same time, meat and poultry products from state 
inspection systems which are required to be ``at least equal'' 
to the federal inspection system are prohibited in statute from 
engaging in interstate commerce. It is the intent of the 
Managers to seek a resolution to the apparent inequities in 
this current regulatory situation.
      Since the President included the interstate shipment of 
state inspected product in the Guidance of the Administration 
for the 1995 Farm Bill, the Managers expect that the Secretary 
will report on the reasons for the evolution of differences 
between state and federal inspection programs, and any and all 
legal prohibitions to interstate shipment of state inspected 
product. Moreover, the Managers expect the report to expand 
beyond the legal history and an explanation of prohibitions to 
interstate shipment and sale of state inspected product, but 
engage constructively by making recommendations on challenges, 
such as, appropriate food safety, administrative, and funding, 
that may be necessary to effect an efficient transition.
(4) Reimbursable agreements
      The Senate amendment authorizes the Secretary to enter 
into reimbursable fee agreements for the pre-clearance at 
locations outside the U.S. of plants, plant products, animals 
and articles for movement into the U.S. Funds collected for 
pre-clearance shall be credited to accounts established by the 
Secretary and shall remain available until expended for pre-
clearance activities. This section authorizes the Secretary to 
require persons for whom the services are performed to 
reimburse the Secretary for the services. (Section 543)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 919)
(5) Overseas tort claims
      The Senate amendment authorizes the Secretary to pay tort 
claims when claims arise outside the U.S. for persons who are 
performing services for the Secretary. A claim must be 
presented to the Secretary within two years after the claim 
accrues. (Section 547)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 920)
(6) Graduate School of the U.S. Department of Agriculture
      The Senate amendment states the purpose of this section 
is to authorize continued operation of the Graduate School as a 
non-appropriated fund instrumentality of the Department.
      Subsection (b) defines board, department, director, 
graduate school, and secretary.
      Subsection (c) sets forth the functions and authority of 
the Graduate School. The Graduate School is authorized to 
develop and administer education, training and professional 
development activities. The Graduate School may provide 
educational activities to federal agencies, employees, 
nonprofit organizations, other entities, and members of the 
public. The Graduate School may charge reasonable fees for its 
activities based upon the cost of providing the service and may 
retain those fees rather than depositing them in the United 
States Treasury. The Graduate School is authorized to operate 
under its current name or may adopt another name.
      Subsection (d) provides that the General Administration 
Board appointed by the Secretary would govern the activities of 
the Graduate School in accordance with the Secretary's 
regulations. The Board would be responsible for determining the 
policies by which the School is administered and for taking 
steps necessary to assure that the responsibilities are carried 
out, including the selection of a Director and other officers. 
The Board may authorize the Director to borrow money on the 
credit of the Graduate School.
      Subsection (e) authorizes the Director to carry out the 
activities of the School, subject to the direction and 
oversight of the Board. The Board may authorize the Director to 
invest funds held in excess of the current operating 
requirements as a reasonable reserve.
      Subsection (f) states that the director and Board members 
shall not be held personally liable for any loss or damage that 
may accrue to the funds of the Graduate School as a result of a 
discretionary act in carrying out their duties.
      Subsection (g) states that Graduate School employees 
shall not be considered federal employees.
      Subsection (h) states that the Graduate School shall not 
be considered a federal agency for purposes of the Federal Tort 
Claims Act, the Federal Advisory Committee Act, the Freedom of 
Information Act or the Privacy Act.
      Subsection (i) prohibits the Graduate School from 
accepting gifts from interested parties.
      Subsection (j) authorizes the Graduate School to accept 
gifts of money and property made for the benefit of the 
Graduate School. This subsection authorizes the Graduate School 
to acquire, maintain, and control real property. It also 
authorizes the Graduate School to enter into contracts without 
regard to any law prescribing procedures for the procurement of 
property or services and to dispose of real or personal 
property without regard to the Federal Property and 
Administrative Services Act. The subsection also authorizes the 
Graduate School to continue to use the facilities and resources 
of the Department in carrying out its functions if the costs 
are reimbursed out of the fees collected or other income earned 
by the Graduate School. (Section 548)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 921)
(7) Student internship program and conveyance of excess Federal 
        personal property
      The Senate amendment authorizes use of appropriated or 
user fee funds to pay for transportation, subsistence, and 
lodging expenses of student interns. Student interns are 
defined as employees who assist scientific, professional, 
administrative, or technical employees of the Department and 
who are bona fide students of accredited colleges or 
universities pursuing courses related to the field in which the 
person is employed by the Department. (Section 549)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize the Secretary to enter into 
cooperative agreements on an annual basis with one or more 
associations of colleges and universities for the purpose of 
providing for USDA participation in internship programs for 
graduate and undergraduate students who are selected by such 
associations from students attending member institutions of 
such associations and other colleges and universities and an 
amendment authorizing the Secretary of Agriculture to convey 
title to excess personal property to any 1994 Institution, 
Hispanic-Serving Institution or 1890 institutions for research 
purposes with or without monetary compensation. (Section 922 
and 923)
(8) Conveyance of land, sale of land, designation of research center, 
        and Washington area strategic space plan
      The Senate amendment provides for conveyance of land to 
the Board of Trustees of the University of Arkansas to be used 
in the White Oak Cemetery. The land would revert to the United 
States if not used in the cemetery. (Section 550)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment authorizing the sale of land known as the 
``Walker Tract''; renaming the Agricultural Research Service 
Small Farms research facility located near Booneville, Arkansas 
as the Dale Bumpers Small Farms Research Center; and 
authorizing funding for improvement of roads at Beltsville as 
part of the USDA Washington Area Strategic Space Plan. 
(Sections 924, 925, 926 and 927)
      The Managers expect USDA to continue to evaluate the 
Washington Area Strategic Plan in light of Department 
streamlining and workforce reduction. Furthermore, the Managers 
expect the Secretary to work closely with the House and Senate 
Agriculture Committees in identifying the most cost-effective 
option for renovating the South Building. It is important that 
USDA brief the Agriculture Committees on a regular basis about 
progress in this regard.
(9) Sense of the Congress regarding purchase of American-made equipment 
        and products
      The House bill states that it is the intent of Congress 
that recipients of assistance under this Act shall purchase 
only American-made equipment and products. (Section 508)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
striking the House provision.
(10) Amendment of the Virus-Serum Toxin Act of 1913
      The Senate amendment amends the Virus Serum Toxin Act of 
1913 to increase the criminal penalty from a maximum of $1,000 
to a maximum of $10,000, upon conviction, for each violation. 
This section also authorizes the assessment of civil penalties 
of up to $5,000 for each violation of the Act or regulations. A 
person must ``knowingly'' violate the Act or regulations to be 
subject to a criminal or civil penalty. Knowingly forging, 
counterfeiting, or without permission of the Secretary of 
Agriculture, using, altering, defacing, or destroying any 
certificate, permit, license, or other document will be 
considered a violation of the Act. The Secretary is required to 
provide notice and an opportunity for an agency hearing before 
issuing an order for a civil penalty. The total amount of civil 
penalties assessed against a violator shall not exceed $300,000 
for all such violations adjudicated in a single proceeding. In 
the course of an investigation of a suspected violation, the 
Secretary may issue subpoenas requiring the attendance and 
testimony of witnesses and the production of evidence that 
relates to the matter under investigation. (Section 546)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision, 
striking the Senate provision.
(11) Equine piroplasmosis
      It is the intention of the Congress that the Secretary of 
Agriculture be directed to protect the United States and its 
domestic horse population from equine piroplasmosis by taking 
all actions necessary to ensure that the disease does not 
become established in the United States or spread to the 
domestic horse population.
      Congress finds that the U.S. Department of Agriculture 
and the Georgia Department of Agriculture plan to grant a 
conditional waiver from Federal and State health requirements 
for a limited number of foreign horses testing positive for 
equine piroplasmosis to enter the U.S. and compete in the 1996 
Centennial Olympic Games.
      Although careful conditions have been imposed on such 
admissions, there is a minimum risk that this disease could 
become established in the U.S. Therefore, the twenty point plan 
that has been agreed to by the European Union, the Georgia 
Department of Agriculture, and the U.S. Department of 
Agriculture must not be relaxed and the conditions must be 
followed and administratively enforced.
                                   Pat Roberts,
                                   Bill Emerson,
                                   Steve Gunderson,
                                   Thomas W. Ewing,
                                   Bill Barrett,
                                   Wayne Allard,
                                   John Boehner,
                                   Richard Pombo,
                                   E de la Garza,
                                   Charlie Rose,
                                   Charlie Stenholm,
                                   Gary Condit,
                                 Managers on the Part of the House.

                                   Richard G. Lugar,
                                   Bob Dole,
                                   Jesse Helms,
                                   Thad Cochran,
                                   Mitch McConnell,
                                   Larry E. Craig,
                                   Patrick Leahy,
                                   Howell Heflin,
                                Managers on the Part of the Senate.


                                


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