[House Report 107-424]
[From the U.S. Government Publishing Office]




107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-424

======================================================================



 
             FARM SECURITY AND RURAL INVESTMENT ACT OF 2002

                                _______
                                

                  May 1, 2002.--Ordered to be printed

                                _______
                                

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

                           CONFERENCE REPORT

                        [To accompany H.R. 2646]

    The committee of conference on the disagreeing votes of the 
two Houses on the amendments of the Senate to the bill (H.R. 
2646), to provide for the continuation of agricultural programs 
through fiscal year 2011, 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 to the text of the bill 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 ``Farm 
Security and Rural Investment Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:
Sec. 1. Short title; table of contents.

                       TITLE I--COMMODITY PROGRAMS

Sec. 1001. Definitions.

        Subtitle A--Direct Payments and Counter-Cyclical Payments

Sec. 1101. Establishment of base acres and payment acres for a farm.
Sec. 1102. Establishment of payment yield.
Sec. 1103. Availability of direct payments.
Sec. 1104. Availability of counter-cyclical payments.
Sec. 1105. Producer agreement required as condition of provision of 
          direct payments and counter-cyclical payments.
Sec. 1106. Planting flexibility.
Sec. 1107. Relation to remaining payment authority under production 
          flexibility contracts.
Sec. 1108. Period of effectiveness.

   Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

Sec. 1201. Availability of nonrecourse marketing assistance loans for 
          loan commodities.
Sec. 1202. Loan rates for nonrecourse marketing assistance loans.
Sec. 1203. Term of loans.
Sec. 1204. Repayment of loans.
Sec. 1205. Loan deficiency payments.
Sec. 1206. Payments in lieu of loan deficiency payments for grazed 
          acreage.
Sec. 1207. Special marketing loan provisions for upland cotton.
Sec. 1208. Special competitive provisions for extra long staple cotton.
Sec. 1209. Availability of recourse loans for high moisture feed grains 
          and seed cotton.

                           Subtitle C--Peanuts

Sec. 1301. Definitions.
Sec. 1302. Establishment of payment yield and base acres for peanuts for 
          a farm.
Sec. 1303. Availability of direct payments for peanuts.
Sec. 1304. Availability of counter-cyclical payments for peanuts.
Sec. 1305. Producer agreement required as condition on provision of 
          direct payments and counter-cyclical payments.
Sec. 1306. Planting flexibility.
Sec. 1307. Marketing assistance loans and loan deficiency payments for 
          peanuts.
Sec. 1308. Miscellaneous provisions.
Sec. 1309. Termination of marketing quota programs for peanuts and 
          compensation to peanut quota holders for loss of quota asset 
          value.
Sec. 1310. Repeal of superseded price support authority and effect of 
          repeal.

                            Subtitle D--Sugar

Sec. 1401. Sugar program.
Sec. 1402. Storage facility loans.
Sec. 1403. Flexible marketing allotments for sugar.

                            Subtitle E--Dairy

Sec. 1501. Milk price support program.
Sec. 1502. National dairy market loss payments.
Sec. 1503. Dairy export incentive and dairy indemnity programs.
Sec. 1504. Dairy product mandatory reporting.
Sec. 1505. Funding of dairy promotion and research program.
Sec. 1506. Fluid milk promotion.
Sec. 1507. Study of national dairy policy.
Sec. 1508. Studies of effects of changes in approach to national dairy 
          policy and fluid milk identity standards.

                       Subtitle F--Administration

Sec. 1601. Administration generally.
Sec. 1602. Suspension of permanent price support authority.
Sec. 1603. Payment limitations.
Sec. 1604. Adjusted gross income limitation.
Sec. 1605. Commission on application of payment limitations.
Sec. 1606. Adjustments of loans.
Sec. 1607. Personal liability of producers for deficiencies.
Sec. 1608. Extension of existing administrative authority regarding 
          loans.
Sec. 1609. Commodity Credit Corporation Inventory.
Sec. 1610. Reserve stock level.
Sec. 1611. Farm reconstitutions.
Sec. 1612. Assignment of payments.
Sec. 1613. Equitable relief from ineligibility for loans, payments, or 
          other benefits.
Sec. 1614. Tracking of benefits.
Sec. 1615. Estimates of net farm income.
Sec. 1616. Availability of incentive payments for certain producers.
Sec. 1617. Renewed availability of market loss assistance and certain 
          emergency assistance to persons that failed to receive 
          assistance under earlier authorities.
Sec. 1618. Producer retention of erroneously paid loan deficiency 
          payments and marketing loan gains.

                         TITLE II--CONSERVATION

                    Subtitle A--Conservation Security

Sec. 2001. Conservation security program.
Sec. 2002. Conservation compliance.
Sec. 2003. Partnerships and cooperation.
Sec. 2004. Administrative requirements for conservation programs.
Sec. 2005. Reform and assessment of conservation programs.
Sec. 2006. Conforming amendments.

                    Subtitle B--Conservation Reserve

Sec. 2101. Conservation reserve program.

                  Subtitle C--Wetlands Reserve Program

Sec. 2201. Reauthorization.
Sec. 2202. Enrollment.
Sec. 2203. Easements and agreements.
Sec. 2204. Changes in ownership; agreement modification; termination.

              Subtitle D--Environmental Quality Incentives

Sec. 2301. Environmental quality incentives program.

                      Subtitle E--Grassland Reserve

Sec. 2401. Grassland reserve program.

                 Subtitle F--Other Conservation Programs

Sec. 2501. Agricultural management assistance.
Sec. 2502. Grazing, wildlife habitat incentive, source water protection, 
          and Great Lakes basin programs.
Sec. 2503. Farmland protection program.
Sec. 2504. Resource conservation and development program.
Sec. 2505. Small watershed rehabilitation program.
Sec. 2506. Use of symbols, slogans, and logos.
Sec. 2507. Desert terminal lakes.

         Subtitle G--Conservation Corridor Demonstration Program

Sec. 2601. Definitions.
Sec. 2602. Conservation corridor demonstration program.
Sec. 2603. Implementation of conservation corridor plan.
Sec. 2604. Funding requirements.

                 Subtitle H--Funding and Administration

Sec. 2701. Funding and administration.
Sec. 2702. Regulations.

                            TITLE III--TRADE

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

Sec. 3001. United States policy. 
Sec. 3002. Provision of agricultural commodities. 
Sec. 3003. Generation and use of currencies by private voluntary 
          organizations and cooperatives. 
Sec. 3004. Levels of assistance. 
Sec. 3005. Food Aid Consultative Group. 
Sec. 3006. Maximum level of expenditures. 
Sec. 3007. Administration. 
Sec. 3008. Assistance for stockpiling and rapid transportation, 
          delivery, and distribution of shelf-stable prepackaged foods. 
Sec. 3009. Sale procedure. 
Sec. 3010. Prepositioning. 
Sec. 3011. Transportation and related costs. 
Sec. 3012. Expiration date.
Sec. 3013. Micronutrient fortification programs. 
Sec. 3014. John Ogonowski Farmer-to-Farmer Program. 

               Subtitle B--Agricultural Trade Act of 1978

Sec. 3101. Exporter assistance initiative. 
Sec. 3102. Export credit guarantee program. 
Sec. 3103. Market access program. 
Sec. 3104. Export enhancement program. 
Sec. 3105. Foreign market development cooperator program. 
Sec. 3106. Food for progress. 
Sec. 3107. McGovern-Dole International Food for Education and Child 
          Nutrition Program. 

                        Subtitle C--Miscellaneous

Sec. 3201. Surplus commodities for developing or friendly countries. 
Sec. 3202. Bill Emerson Humanitarian Trust Act. 
Sec. 3203. Emerging markets. 
Sec. 3204. Biotechnology and agricultural trade program. 
Sec. 3205. Technical assistance for specialty crops.
Sec. 3206. Global market strategy. 
Sec. 3207. Report on use of perishable commodities and live animals. 
Sec. 3208. Study on fee for services. 
Sec. 3209. Sense of Congress concerning foreign assistance programs. 
Sec. 3210. Sense of the Senate concerning agricultural trade. 

                      TITLE IV--NUTRITION PROGRAMS

Sec. 4001. Short title.

                     Subtitle A--Food Stamp Program

Sec. 4101. Encouragement of payment of child support.
Sec. 4102. Simplified definition of income.
Sec. 4103. Standard deduction.
Sec. 4104. Simplified utility allowance.
Sec. 4105. Simplified determination of housing costs.
Sec. 4106. Simplified determination of deductions.
Sec. 4107. Simplified definition of resources.
Sec. 4108. Alternative issuance systems in disasters.
Sec. 4109. State option to reduce reporting requirements.
Sec. 4110. Cost neutrality for electronic benefit transfer systems.
Sec. 4111. Report on electronic benefit transfer systems.
Sec. 4112. Alternative procedures for residents of certain group 
          facilities.
Sec. 4113. Redemption of benefits through group living arrangements.
Sec. 4114. Availability of food stamp program applications on the 
          Internet.
Sec. 4115. Transitional food stamps for families moving from welfare.
Sec. 4116. Grants for simple application and eligibility determination 
          systems and improved access to benefits.
Sec. 4117. Delivery to retailers of notices of adverse action.
Sec. 4118. Reform of quality control system.
Sec. 4119. Improvement of calculation of State performance measures.
Sec. 4120. Bonuses for States that demonstrate high or most improved 
          performance.
Sec. 4121. Employment and training program.
Sec. 4122. Reauthorization of food stamp program and food distribution 
          program on Indian reservations.
Sec. 4123. Expanded grant authority.
Sec. 4124. Consolidated block grants for Puerto Rico and American Samoa.
Sec. 4125. Assistance for community food projects.
Sec. 4126. Availability of commodities for the emergency food assistance 
          program.

                   Subtitle B--Commodity Distribution

Sec. 4201. Commodity supplemental food program.
Sec. 4202. Commodity donations.
Sec. 4203. Distribution of surplus commodities to special nutrition 
          projects.
Sec. 4204. Emergency food assistance.

            Subtitle C--Child Nutrition and Related Programs

Sec. 4301. Commodities for school lunch program.
Sec. 4302. Eligibility for free and reduced price meals.
Sec. 4303. Purchases of locally produced foods.
Sec. 4304. Applicability of Buy-American requirement to Puerto Rico.
Sec. 4305. Fruit and vegetable pilot program.
Sec. 4306. Eligibility for assistance under the special supplemental 
          nutrition program for women, infants, and children.
Sec. 4307. WIC farmers' market nutrition program.

                        Subtitle D--Miscellaneous

Sec. 4401. Partial restoration of benefits to legal immigrants.
Sec. 4402. Seniors farmers' market nutrition program.
Sec. 4403. Nutrition information and awareness pilot program.
Sec. 4404. Hunger fellowship program.
Sec. 4405. General effective date.

                             TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

Sec. 5001. Direct loans.
Sec. 5002. Financing of bridge loans.
Sec. 5003. Amount of guarantee of loans for farm operations on tribal 
          lands.
Sec. 5004. Guarantee of loans made under State beginning farmer or 
          rancher programs.
Sec. 5005. Down Payment Loan Program.
Sec. 5006. Beginning farmer and rancher contract land sales program.

                       Subtitle B--Operating Loans

Sec. 5101. Direct loans.
Sec. 5102. Suspension of limitation on period for which borrowers are 
          eligible for guaranteed assistance.

                       Subtitle C--Emergency Loans

Sec. 5201. Emergency loans in response to an emergency resulting from 
          quarantines.

                  Subtitle D--Administrative Provisions

Sec. 5301. Evaluations of direct and guaranteed loan programs.
Sec. 5302. Eligibility of trusts and limited liability companies for 
          farm ownership loans, farm operating loans, and emergency 
          loans.
Sec. 5303. Debt settlement.
Sec. 5304. Temporary authority to enter into contracts; private 
          collection agencies.
Sec. 5305. Interest rate options for loans in servicing.
Sec. 5306. Elimination of requirement that Secretary require county 
          committees to certify in writing that certain loan reviews 
          have been conducted.
Sec. 5307. Simplified loan guarantee application available for loans of 
          greater amounts.
Sec. 5308. Inventory property.
Sec. 5309. Administration of certified lenders and preferred certified 
          lenders programs.
Sec. 5310. Definitions.
Sec. 5311. Loan authorization levels.
Sec. 5312. Reservation of funds for direct operating loans for beginning 
          farmers and ranchers.
Sec. 5313. Interest rate reduction program.
Sec. 5314. Reamortization of recapture payments.
Sec. 5315. Allocation of certain funds for socially disadvantaged 
          farmers and ranchers.
Sec. 5316. Waiver of borrower training certification requirement.
Sec. 5317. Timing of loan assessments.
Sec. 5318. Annual review of borrowers.
Sec. 5319. Loan eligibility for borrowers with prior debt forgiveness.
Sec. 5320. Making and servicing of loans by personnel of State, county, 
          or area committees.
Sec. 5321. Eligibility of employees of State, county, or area committee 
          for loans and loan guarantees.

                         Subtitle E--Farm Credit

Sec. 5401. Repeal of burdensome approval requirements.
Sec. 5402. Banks for cooperatives.
Sec. 5403. Insurance corporation premiums.

                     Subtitle F--General Provisions

Sec. 5501. Technical amendments.

                       TITLE VI--RURAL DEVELOPMENT

         Subtitle A--Consolidated Farm and Rural Development Act

Sec. 6001. Eligibility of rural empowerment zones and rural enterprise 
          communities for direct and guaranteed loans for essential 
          community facilities. 
Sec. 6002. Water or waste disposal grants. 
Sec. 6003. Rural business opportunity grants. 
Sec. 6004. Child day care facilities. 
Sec. 6005. Rural water and wastewater circuit rider program. 
Sec. 6006. Multijurisdictional regional planning organizations. 
Sec. 6007. Loan guarantees for certain rural development loans. 
Sec. 6008. Tribal college and university essential community facilities. 

Sec. 6009. Emergency and imminent community water assistance grant 
          program. 
Sec. 6010. Water and waste facility grants for Native American tribes. 
Sec. 6011. Grants for water systems for rural and native villages in 
          Alaska. 
Sec. 6012. Grants to nonprofit organizations to finance the 
          construction, refurbishing, and servicing of individually-
          owned household water well systems in rural areas for 
          individuals with low or moderate incomes. 
Sec. 6013. Loans and loan guarantees for renewable energy systems. 
Sec. 6014. Rural business enterprise grants. 
Sec. 6015. Rural cooperative development grants. 
Sec. 6016. Grants to broadcasting systems. 
Sec. 6017. Business and industry loan modifications. 
Sec. 6018. Use of rural development loans and grants for other purposes. 

Sec. 6019. Simplified application forms for loan guarantees. 
Sec. 6020. Definition of rural and rural area. 
Sec. 6021. National Rural Development Partnership. 
Sec. 6022. Rural telework. 
Sec. 6023. Historic barn preservation. 
Sec. 6024. Grants for NOAA weather radio transmitters. 
Sec. 6025. Grants to train farm workers in new technologies and to train 
          farm workers in specialized skills necessary for higher value 
          crops. 
Sec. 6026. Rural community advancement program. 
Sec. 6027. Delta Regional Authority. 
Sec. 6028. Northern Great Plains Regional Authority. 
Sec. 6029. Rural business investment program. 
Sec. 6030. Rural strategic investment program. 
Sec. 6031. Funding of pending rural development loan and grant 
          applications. 

              Subtitle B--Rural Electrification Act of 1936

Sec. 6101. Guarantees for bonds and notes issued for electrification or 
          telephone purposes. 
Sec. 6102. Expansion of 911 access. 
Sec. 6103. Enhancement of access to broadband service in rural areas. 

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

Sec. 6201. Alternative Agricultural Research and Commercialization 
          Corporation. 
Sec. 6202. Rural electronic commerce extension program. 
Sec. 6203. Telemedicine and distance learning services in rural areas. 

             Subtitle D--SEARCH Grants for Small Communities

Sec. 6301. Definitions.
Sec. 6302. SEARCH grant program.
Sec. 6303. Report.
Sec. 6304. Funding.

                        Subtitle E--Miscellaneous

Sec. 6401. Value-added agricultural product market development grants. 
Sec. 6402. Agriculture innovation center demonstration program. 
Sec. 6403. Fund for Rural America. 
Sec. 6404. Rural local television broadcast signal loan guarantees. 
Sec. 6405. Rural firefighters and emergency personnel grant program. 
Sec. 6406. Sense of Congress on rural policy coordination. 

                 TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

Sec. 7101. National rural information center clearinghouse.
Sec. 7102. Grants and fellowships for food and agricultural sciences 
          education.
Sec. 7103. Policy research centers.
Sec. 7104. Human nutrition intervention and health promotion research 
          program.
Sec. 7105. Pilot research program to combine medical and agricultural 
          research.
Sec. 7106. Nutrition education program.
Sec. 7107. Continuing animal health and disease research programs.
Sec. 7108. Appropriations for research on national or regional problems.
Sec. 7109. Grants to upgrade agricultural and food sciences facilities 
          at 1890 land-grant colleges, including Tuskegee University.
Sec. 7110. National research and training virtual centers.
Sec. 7111. Hispanic-serving institutions.
Sec. 7112. Competitive grants for international agricultural science and 
          education programs.
Sec. 7113. University research.
Sec. 7114. Extension service.
Sec. 7115. Supplemental and alternative crops.
Sec. 7116. Aquaculture research facilities.
Sec. 7117. Rangeland research.
Sec. 7118. National genetics resources program.
Sec. 7119. High-priority research and extension initiatives.
Sec. 7120. Nutrient management research and extension initiative.
Sec. 7121. Agricultural telecommunications program.
Sec. 7122. Assistive technology program for farmers with disabilities.
Sec. 7123. Partnerships for high-value agricultural product quality 
          research.
Sec. 7124. Biobased products.
Sec. 7125. Integrated research, education, and extension competitive 
          grants program.
Sec. 7126. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7127. 1994 Institution research grants.
Sec. 7128. Endowment for 1994 Institutions.
Sec. 7129. Precision agriculture.
Sec. 7130. Thomas Jefferson Initiative for crop diversification.
Sec. 7131. Support for research regarding diseases of wheat, triticale, 
          and barley caused by fusarium graminearum or by tilletia 
          indica.
Sec. 7132. Office of Pest Management Policy.
Sec. 7133. National Agricultural Research, Extension, Education, and 
          Economics Advisory Board.
Sec. 7134. Grants for research on production and marketing of alcohols 
          and industrial hydrocarbons from agricultural commodities and 
          forest products.
Sec. 7135. Agricultural experiment stations research facilities.
Sec. 7136. Competitive, special, and facilities research grants national 
          research initiative.
Sec. 7137. Federal agricultural research facilities authorization of 
          appropriations.
Sec. 7138. Critical agricultural materials research.
Sec. 7139. Aquaculture.

                        Subtitle B--Modifications

Sec. 7201. Equity in Educational Land-Grant Status Act of 1994.
Sec. 7202. Carryover for experiment stations.
Sec. 7203. Authorization percentages for research and extension formula 
          funds.
Sec. 7204. Carryover for eligible institutions.
Sec. 7205. Initiative for future agriculture and food systems.
Sec. 7206. Eligibility for integrated grants program.
Sec. 7207. Agricultural Research, Extension, and Education Reform Act of 
          1998.
Sec. 7208. Food, Agriculture, Conservation, and Trade Act of 1990.
Sec. 7209. National Agricultural Research, Extension, and Teaching 
          Policy Act of 1977.
Sec. 7210. Biotechnology risk assessment research.
Sec. 7211. Competitive, special, and facilities research grants.
Sec. 7212. Matching funds requirement for research and extension 
          activities of 1890 Institutions.
Sec. 7213. Matching requirements for research and extension formula 
          funds for insular area land-grant institutions.
Sec. 7214. Definition of food and agricultural sciences.
Sec. 7215. Federal Extension Service.
Sec. 7216. Policy research centers.
Sec. 7217. Availability of competitive grant funds.
Sec. 7218. Organic agriculture research and extension initiative.
Sec. 7219. Senior scientific research service.
Sec. 7220. Termination of certain schedule a appointments.
Sec. 7221. Biosecurity planning and response programs.
Sec. 7222. Indirect costs for small business innovation research grants.
Sec. 7223. Carbon cycle research.

        Subtitle C--Repeal of Certain Activities and Authorities

Sec. 7301. Food Safety Research Information Office and National 
          Conference.
Sec. 7302. Reimbursement of expenses under Sheep Promotion, Research, 
          and Information Act of 1994.
Sec. 7303. Market expansion research.
Sec. 7304. National Advisory Board on Agricultural Weather.
Sec. 7305. Agricultural information exchange with Ireland.
Sec. 7306. Pesticide resistance study.
Sec. 7307. Expansion of education study.
Sec. 7308. Task force on 10-year strategic plan for agricultural 
          research facilities.

                       Subtitle D--New Authorities

Sec. 7401. Subtitle definitions.
Sec. 7402. Research equipment grants.
Sec. 7403. Joint requests for proposals.
Sec. 7404. Review of Agricultural Research Service.
Sec. 7405. Beginning farmer and rancher development program.
Sec. 7406. Sense of Congress regarding doubling of funding for 
          agricultural research.
Sec. 7407. Organic production and market data initiatives.
Sec. 7408. International organic research collaboration.
Sec. 7409. Report on producers and handlers of organic agricultural 
          products.
Sec. 7410. Report on genetically modified pest-protected plants.
Sec. 7411. Study of nutrient banking.
Sec. 7412. Grants for youth organizations.

                        Subtitle E--Miscellaneous

Sec. 7501. Resident instruction and distance education at institutions 
          of higher education in United States insular areas.
Sec. 7502. Definitions.
Sec. 7503. Resident instruction and distance education grants program 
          for insular area institutions of higher education.
Sec. 7504. Declaration of extraordinary emergency and resulting 
          authorities.
Sec. 7505. Agricultural biotechnology research and development for 
          developing countries.
Sec. 7506. Land acquisition authority, national peanut research 
          laboratory, Dawson, Georgia.

                          TITLE VIII--FORESTRY

         Subtitle A--Cooperative Forestry Assistance Act of 1978

Sec. 8001. Repeal of forestry incentives program and stewardship 
          incentive program.
Sec. 8002. Establishment of forest land enhancement program.
Sec. 8003. Enhanced community fire protection.

                  Subtitle B--Amendments to Other Laws

Sec. 8101. Sustainable forestry outreach initiative; renewable resources 
          extension activities.
Sec. 8102. Office of International Forestry.

                  Subtitle C--Miscellaneous Provisions

Sec. 8201. McIntire-Stennis cooperative forestry research program.

                            TITLE IX--ENERGY

Sec. 9001. Definitions. 
Sec. 9002. Federal procurement of biobased products. 
Sec. 9003. Biorefinery development grants. 
Sec. 9004. Biodiesel fuel education program. 
Sec. 9005. Energy audit and renewable energy development program. 
Sec. 9006. Renewable energy systems and energy efficiency improvements. 
Sec. 9007. Hydrogen and fuel cell technologies. 
Sec. 9008. Biomass research and development. 
Sec. 9009. Cooperative research and extension projects. 
Sec. 9010. Continuation of bioenergy program. 

                         TITLE X--MISCELLANEOUS

                       Subtitle A--Crop Insurance

Sec. 10001. Equal crop insurance treatment of potatoes and sweet 
          potatoes.
Sec. 10002. Continuous coverage.
Sec. 10003. Quality loss adjustment procedures.
Sec. 10004. Adjusted gross revenue insurance pilot program.
Sec. 10005. Sense of Congress on expansion of crop insurance coverage.
Sec. 10006. Report on specialty crop insurance.

                     Subtitle B--Disaster Assistance

Sec. 10101. Reference to sea grass and sea oats as crops covered by 
          noninsured crop disaster assistance program.
Sec. 10102. Emergency grants to assist low-income migrant and seasonal 
          farmworkers.
Sec. 10103. Emergency loans for seed producers.
Sec. 10104. Assistance for livestock producers.
Sec. 10105. Market loss assistance for apple producers.
Sec. 10106. Market loss assistance for onion producers.
Sec. 10107. Commercial fisheries failure.
Sec. 10108. Study of feasibility of producer indemnification from 
          Government-caused disasters.

                   Subtitle C--Tree Assistance Program

Sec. 10201. Definitions.
Sec. 10202. Eligibility.
Sec. 10203. Assistance.
Sec. 10204. Limitations on assistance.
Sec. 10205. Authorization of appropriations.

                       Subtitle D--Animal Welfare

Sec. 10301. Definition of animal under the Animal Welfare Act.
Sec. 10302. Prohibition on interstate movement of animals for animal 
          fighting.
Sec. 10303. Penalties and foreign commerce provisions of the Animal 
          Welfare Act.
Sec. 10304. Report on rats, mice, and birds.
Sec. 10305. Enforcement of Humane Methods of Slaughter Act of 1958.

                  Subtitle E--Animal Health Protection

Sec. 10401. Short title.
Sec. 10402. Findings.
Sec. 10403. Definitions.
Sec. 10404. Restriction on importation or entry.
Sec. 10405. Exportation.
Sec. 10406. Interstate movement.
Sec. 10407. Seizure, quarantine, and disposal.
Sec. 10408. Inspections, seizures, and warrants.
Sec. 10409. Detection, control, and eradication of diseases and pests.
Sec. 10410. Veterinary accreditation program.
Sec. 10411. Cooperation.
Sec. 10412. Reimbursable agreements.
Sec. 10413. Administration and claims.
Sec. 10414. Penalties.
Sec. 10415. Enforcement.
Sec. 10416. Regulations and orders.
Sec. 10417. Authorization of appropriations.
Sec. 10418. Repeals and conforming amendments.

                          Subtitle F--Livestock

Sec. 10501. Transportation of poultry and other animals.
Sec. 10502. Swine contractors.
Sec. 10503. Right to discuss terms of contract.
Sec. 10504. Veterinary training.
Sec. 10505. Pseudorabies eradication program.

                       Subtitle G--Specialty Crops

Sec. 10601. Marketing orders for caneberries.
Sec. 10602. Availability of section 32 funds.
Sec. 10603. Purchase of specialty crops.
Sec. 10604. Protection for purchasers of farm products.
Sec. 10605. Farmers' market promotion program.
Sec. 10606. National organic certification cost-share program.
Sec. 10607. Exemption of certified organic products from assessments.
Sec. 10608. Cranberry acreage reserve program.

                       Subtitle H--Administration

Sec. 10701. Initial rate of basic pay for employees of county 
          committees.
Sec. 10702. Commodity Futures Trading Commission pay comparability.
Sec. 10703. Overtime and holiday pay.
Sec. 10704. Assistant Secretary of Agriculture for Civil Rights.
Sec. 10705. Operation of Graduate School of Department of Agriculture.
Sec. 10706. Implementation funding and information management.
Sec. 10707. Outreach and assistance for socially disadvantaged farmers 
          and ranchers.
Sec. 10708. Transparency and accountability for socially disadvantaged 
          farmers and ranchers; public disclosure requirements for 
          county committee elections.

                     Subtitle I--General Provisions

Sec. 10801. Cotton classification services.
Sec. 10802. Program of public education regarding use of biotechnology 
          in producing food for human consumption.
Sec. 10803. Chino Dairy Preserve Project.
Sec. 10804. Grazinglands Research Laboratory.
Sec. 10805. Food and Agricultural Policy Research Institute.
Sec. 10806. Market names for catfish and ginseng.
Sec. 10807. Food Safety Commission.
Sec. 10808. Pasteurization.
Sec. 10809. Rulemaking on labeling of irradiated food; certain 
          petitions.
Sec. 10810. Penalties for violations of Plant Protection Act.
Sec. 10811. Preclearance quarantine inspections.
Sec. 10812. Connecticut River Atlantic Salmon Commission.
Sec. 10813. Pine Point School.
Sec. 10814. 7-month extension of chapter 12 of title 11 of the United 
          States Code.
Sec. 10815. Practices involving nonambulatory livestock.
Sec. 10816. Country of origin labeling.

              Subtitle J--Miscellaneous Studies and Reports

Sec. 10901. Report on specialty crop purchases.
Sec. 10902. Report on pouched and canned salmon.
Sec. 10903. Study on updating yields.
Sec. 10904. Report on effect of farm program payments.
Sec. 10905. Chiloquin Dam fish passage feasibility study.
Sec. 10906. Report on geographically disadvantaged farmers and ranchers.
Sec. 10907. Studies on agricultural research and technology.
Sec. 10908. Report on tobacco settlement agreement.
Sec. 10909. Report on sale and use of pesticides for agricultural uses.
Sec. 10910. Review of operation of agricultural and natural resource 
          programs on tribal trust land.

                      TITLE I--COMMODITY PROGRAMS

SEC. 1001. DEFINITIONS.

    In this title (other than subtitle C):
            (1) Agricultural act of 1949.--The term 
        ``Agricultural Act of 1949'' means the Agricultural Act 
        of 1949 (7 U.S.C. 1421 et seq.), as in effect prior to 
        the suspensions under section 171 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7301).
            (2) Base acres.--The term ``base acres'', with 
        respect to a covered commodity on a farm, means the 
        number of acres established under section 1101 with 
        respect to the covered commodity on the election made 
        by the owner of the farm under subsection (a) of such 
        section.
            (3) Counter-cyclical payment.--The term ``counter-
        cyclical payment'' means a payment made to producers on 
        a farm under section 1104.
            (4) Covered commodity.--The term ``covered 
        commodity'' means wheat, corn, grain sorghum, barley, 
        oats, upland cotton, rice, soybeans, and other 
        oilseeds.
            (5) Direct payment.--The term ``direct payment'' 
        means a payment made to producers on a farm under 
        section 1103.
            (6) Effective price.--The term ``effective price'', 
        with respect to a covered commodity for a crop year, 
        means the price calculated by the Secretary under 
        section 1104 to determine whether counter-cyclical 
        payments are required to be made for that crop year.
            (7) 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.
            (8) Loan commodity.--The term ``loan commodity'' 
        means wheat, corn, grain sorghum, barley, oats, upland 
        cotton, extra long staple cotton, rice, soybeans, other 
        oilseeds, wool, mohair, honey, dry peas, lentils, and 
        small chickpeas.
            (9) Other oilseed.--The term ``other oilseed'' 
        means a crop of sunflower seed, rapeseed, canola, 
        safflower, flaxseed, mustard seed, or, if designated by 
        the Secretary, another oilseed.
            (10) Payment acres.--The term ``payment acres'' 
        means 85 percent of the base acres of a covered 
        commodity on a farm, as established under section 1101, 
        on which direct payments and counter-cyclical payments 
        are made.
            (11) Payment yield.--
                    (A) In general.--The term ``payment yield'' 
                means the yield established under section 1102 
                for a farm for a covered commodity.
                    (B) Updated payment yield.--The term 
                ``updated payment yield'' means the payment 
                yield elected by the owner of a farm under 
                section 1102(e) to be used in calculating the 
                counter-cyclical payments for the farm.
            (12) Producer.--The term ``producer'' means an 
        owner, operator, landlord, tenant, or sharecropper that 
        shares in the risk of producing a crop and is entitled 
        to share in the crop available for marketing from the 
        farm, or would have shared had the crop been produced. 
        In determining whether a grower of hybrid seed is a 
        producer, the Secretary shall not take into 
        consideration the existence of a hybrid seed contract 
        and shall ensure that program requirements do not 
        adversely affect the ability of the grower to receive a 
        payment under this title.
            (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) Target price.--The term ``target price'' means 
        the price per bushel (or other appropriate unit in the 
        case of upland cotton, rice, and other oilseeds) of a 
        covered commodity used to determine the payment rate 
        for counter-cyclical payments.
            (16) United states.--The term ``United States'', 
        when used in a geographical sense, means all of the 
        States.

       Subtitle A--Direct Payments and Counter-Cyclical Payments

SEC. 1101. ESTABLISHMENT OF BASE ACRES AND PAYMENT ACRES FOR A FARM.

    (a) Election by Owner of Base Acres Calculation Method.--
            (1) Alternative calculation methods.--For the 
        purpose of making direct payments and counter-cyclical 
        payments with respect to a farm, the Secretary shall 
        give an owner of the farm an opportunity to elect 1 of 
        the following as the method by which the base acres of 
        all covered commodities on the farm are to be 
        determined:
                    (A) Subject to paragraphs (3) and (4), the 
                4-year average of the following:
                            (i) Acreage planted on the farm to 
                        covered commodities for harvest, 
                        grazing, haying, silage, or other 
                        similar purposes for the 1998 through 
                        2001 crop years.
                            (ii) Any acreage on the farm that 
                        the producers were prevented from 
                        planting during the 1998 through 2001 
                        crop years to covered commodities 
                        because of drought, flood, or other 
                        natural disaster, or other condition 
                        beyond the control of the producers, as 
                        determined by the Secretary.
                    (B) Subject to paragraph (3), the sum of 
                the following:
                            (i) The contract acreage (as 
                        defined in section 102 of the Federal 
                        Agriculture Improvement and Reform Act 
                        of 1996 (7 U.S.C. 7202)) used by the 
                        Secretary to calculate the fiscal year 
                        2002 payment authorized under section 
                        114 of such Act (7 U.S.C. 7214) for the 
                        covered commodities on the farm.
                            (ii) The 4-year average of eligible 
                        oilseed acreage on the farm for the 
                        1998 through 2001 crop years, as 
                        determined by the Secretary under 
                        paragraph (2).
            (2) Eligible oilseed acreage.--
                    (A) Calculation.--For purposes of paragraph 
                (1)(B)(ii), the eligible acreage for each 
                oilseed on a farm during each of the 1998 
                through 2001 crop years shall be determined in 
                the manner provided in paragraph (1)(A), except 
                that the total acreage for all oilseeds on the 
                farm for a crop year may not exceed the 
                difference between--
                            (i) the total acreage determined 
                        under paragraph (1)(A) for all covered 
                        commodities for that crop year; and
                            (ii) the total contract acreage 
                        determined under paragraph (1)(B)(i).
                    (B) Effect of negative number.--If the 
                subtraction performed under subparagraph (A) 
                results in a negative number, the eligible 
                oilseed acreage on the farm for that crop year 
                shall be zero for purposes of determining the 
                4-year average.
                    (C) Offset of contract acreage.--The owner 
                of a farm may increase the eligible acreage for 
                an oilseed on the farm by reducing the contract 
                acreage determined under paragraph (1)(B)(i) 
                for 1 or more covered commodities on an acre-
                for-acre basis, except that the total base 
                acreage for each oilseed on the farm may not 
                exceed the 4-year average of each oilseed 
                determined under paragraph (1)(B)(ii).
            (3) Inclusion of all 4 years in average.--For the 
        purpose of determining a 4-year acreage average under 
        this subsection for a farm, the Secretary shall not 
        exclude any crop year in which a covered commodity was 
        not planted.
            (4) Treatment of multiple planting or prevented 
        planting.--For the purpose of determining under 
        paragraph (1)(A) the acreage on a farm that producers 
        planted or were prevented from planting during the 1998 
        through 2001 crop years to covered commodities, if the 
        acreage that was planted or prevented from being 
        planted was devoted to another covered commodity in the 
        same crop year (other than a covered commodity produced 
        under an established practice of double cropping), the 
        owner may elect the commodity to be used for that crop 
        year in determining the 4-year average, but may not 
        include both the initial commodity and the subsequent 
        commodity.
    (b) Single Election; Time for Election.--
            (1) Notice of election opportunity.--As soon as 
        practicable after the date of enactment of this Act, 
        the Secretary shall provide notice to owners of farms 
        regarding their opportunityto make the election 
described in subsection (a). The notice shall include the following:
                    (A) Notice that the opportunity of an owner 
                to make the election is being provided only 
                once.
                    (B) Information regarding the manner in 
                which the election must be made and the time 
                periods and manner in which notice of the 
                election must be submitted to the Secretary.
            (2) Election deadline.--Within the time period and 
        in the manner prescribed pursuant to paragraph (1), the 
        owner of a farm shall submit to the Secretary notice of 
        the election made by the owner under subsection (a).
    (c) Effect of Failure To Make Election.--If the owner of a 
farm fails to make the election under subsection (a) or fails 
to timely notify the Secretary of the election made, as 
required by subsection (b), the owner shall be deemed to have 
made the election described in subsection (a)(1)(B) to 
determine base acres for all covered commodities on the farm.
    (d) Application of Election to All Covered Commodities.--
The election made under subparagraph (A) or (B) of subsection 
(a)(1), or deemed to be made under subsection (c), with respect 
to a farm shall apply to all of the covered commodities on the 
farm.
    (e) Treatment of Conservation Reserve Contract Acreage.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for 
        covered commodities for a farm whenever either of the 
        following circumstances occurs:
                    (A) A conservation reserve contract entered 
                into under section 1231 of the Food Security 
                Act of 1985 (16 U.S.C. 3831) with respect to 
                the farm expires or is voluntarily terminated.
                    (B) Cropland is released from coverage 
                under a conservation reserve contract by the 
                Secretary.
            (2) Special payment rules.--For the crop year in 
        which a base acres adjustment under paragraph (1) is 
        first made, the owner of the farm shall elect to 
        receive either direct payments and counter-cyclical 
        payments with respect to the acreage added to the farm 
        under this subsection or a prorated payment under the 
        conservation reserve contract, but not both.
    (f) Payment Acres.--The payment acres for a covered 
commodity on a farm shall be equal to 85 percent of the base 
acres for the covered commodity.
    (g) Prevention of Excess Base Acres.--
            (1) Required reduction.--If the sum of the base 
        acres for a farm, together with the acreage described 
        in paragraph (2), exceeds the actual cropland acreage 
        of the farm, the Secretary shall reduce the base acres 
        for 1 or more covered commodities for the farm or the 
        base acres for peanuts for the farm under subtitle C so 
        that the sum of the base acres and acreage described in 
        paragraph (2) does not exceed the actual cropland 
        acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), 
        the Secretary shall include the following:
                    (A) Any base acres for peanuts for the farm 
                under subtitle C.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands 
                reserve program under chapter 1 of subtitle D 
                of title XII of the Food Security Act of 1985 
                (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled 
                in a conservation program for which payments 
                are made in exchange for not producing an 
                agricultural commodity on the acreage.
            (3) Selection of acres.--The Secretary shall give 
        the owner of the farm the opportunity to select the 
        base acres or the base acres for peanuts for the farm 
        under subtitle C against which the reduction required 
        by paragraph (1) will be made.
            (4) Exception for double-cropped acreage.--In 
        applying paragraph (1), the Secretary shall make an 
        exception in the case of double cropping, as determined 
        by the Secretary.
            (5) Coordinated application of requirements.--The 
        Secretary shall take into account section 1302(f) when 
        applying the requirements of this subsection.
    (h) Permanent Reduction in Base Acres.--The owner of a farm 
may reduce, at any time, the base acres for any covered 
commodity for the farm. The reduction shall be permanent and 
made in the manner prescribed by the Secretary.

SEC. 1102. ESTABLISHMENT OF PAYMENT YIELD.

    (a) Establishment and Purpose.--For the purpose of making 
direct payments and counter-cyclical payments under this 
subtitle, the Secretary shall provide for the establishment of 
a payment yield for each farm for each covered commodity in 
accordance with this section.
    (b) Use of Farm Program Payment Yield.--Except as otherwise 
provided in this section, the payment yield for each of the 
2002 through 2007 crops of a covered commodity for a farm shall 
be the farm program payment yield established for the 1995 crop 
of the covered commodity under section 505 of the Agricultural 
Act of 1949 (7 U.S.C. 1465), as adjusted by the Secretary to 
account for any additional yield payments made with respect to 
that crop under section 505(b)(2) of that Act.
    (c) Farms Without Farm Program Payment Yield.--In the case 
of a farm for which a farm program payment yield is unavailable 
for a covered commodity (other than soybeans or other 
oilseeds), the Secretary shall establish an appropriate payment 
yield for the covered commodity on the farm taking into 
consideration the farm program payment yields applicable to the 
commodity under subsection (b) for similar farms, but before 
the yields for the similar farms are updated as provided in 
subsection (e).
    (d) Payment Yields for Oilseeds.--
            (1) Determination of average yield.--In the case of 
        soybeans and each other oilseed, the Secretary shall 
        determine the average yield per planted acre for the 
        oilseed on a farm for the 1998 through 2001 crop years, 
        excluding any crop year in which the acreage planted to 
        the oilseed was zero.
            (2) Adjustment for payment yield.--The payment 
        yield for a farm for an oilseed shall be equal to the 
        product of the following:
                    (A) The average yield for the oilseed 
                determined under paragraph (1).
                    (B) The ratio resulting from dividing the 
                national average yield for the oilseed for the 
                1981 through 1985 crops by the national average 
                yield for the oilseed for the 1998 through 2001 
                crops.
            (3) Use of partial county average yield.--If the 
        yield per planted acre for a crop of an oilseed for a 
        farm for any of the 1998 through 2001 crop years was 
        less than 75 percent of the county yield for that 
        oilseed, the Secretary shall assign a yield for that 
        crop year equal to 75 percent of the county yield for 
        the purpose of determining the average under paragraph 
        (1).
    (e) Opportunity To Partially Update Yields Used To 
Determine Counter-Cyclical Payments.--
            (1) Election to update.--If the owner of a farm 
        elects to use the base acres calculation method 
        described in section 1101(a)(1)(A), the owner shall 
        also have a 1-time opportunity to elect to use 1 of the 
        methods described in paragraph (3) to partially update 
        the payment yields that would otherwise be used in 
        calculating any counter-cyclical payments for covered 
        commodities on the farm.
            (2) Time for election.--The election under 
        paragraph (1) shall be made at the same time and in the 
        same manner as the Secretary prescribes for the 
        election required under section 1101.
            (3) Methods of updating yields.--If the owner of a 
        farm elects to update yields under this subsection, the 
        payment yield for a covered commodity on the farm, for 
        the purpose of calculating counter-cyclical payments 
        only, shall be equal to the yield determined using 
        either of the following:
                    (A) The sum of the following:
                            (i) The payment yield applicable 
                        for direct payments for the covered 
                        commodity on the farm.
                            (ii) 70 percent of the difference 
                        between--
                                    (I) the average yield per 
                                planted acre for the crop of 
                                the covered commodity on the 
                                farm for the 1998 through 2001 
                                crop years, as determined by 
                                the Secretary, excluding any 
                                crop year in which the acreage 
                                planted to the crop of the 
                                covered commodity was zero; and
                                    (II) the payment yield 
                                applicable for direct payments 
                                for the covered commodity on 
                                the farm.
                    (B) 93.5 percent of the average of the 
                yield per planted acre for the crop of the 
                covered commodity on the farm for the 1998 
                through 2001 crop years, as determined by the 
                Secretary, excluding any crop year in which the 
                acreage planted to the crop of the covered 
                commodity was zero.
            (4) Use of partial county average yield.--If the 
        yield per planted acre for a crop of the covered 
        commodity for a farm for any of the 1998 through 2001 
        crop years was less than 75 percent of the county yield 
        for that commodity, the Secretary shall assign a yield 
        for that crop year equal to 75 percent of the county 
        yield for the purpose of determining the average yield 
        under paragraph (3).
            (5) Application of election and method to all 
        covered commodities.--The owner of a farm may not elect 
        the method described in paragraph (3)(A) for 1 covered 
        commodity on the farm and the method described in 
        paragraph (3)(B) for other covered commodities on the 
        farm.

SEC. 1103. AVAILABILITY OF DIRECT PAYMENTS.

    (a) Payment Required.--For each of the 2002 through 2007 
crop years of each covered commodity, the Secretary shall make 
direct payments to producers on farms for which payment yields 
and base acres are established.
    (b) Payment Rate.--The payment rates used to make direct 
payments with respect to covered commodities for a crop year 
are as follows:
            (1) Wheat, $0.52 per bushel.
            (2) Corn, $0.28 per bushel.
            (3) Grain sorghum, $0.35 per bushel.
            (4) Barley, $0.24 per bushel.
            (5) Oats, $0.024 per bushel.
            (6) Upland cotton, $0.0667 per pound.
            (7) Rice, $2.35 per hundredweight.
            (8) Soybeans, $0.44 per bushel.
            (9) Other oilseeds, $0.0080 per pound.
    (c) Payment Amount.--The amount of the direct payment to be 
paid to the producers on a farm for a covered commodity for a 
crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the covered commodity on 
        the farm.
            (3) The payment yield for the covered commodity for 
        the farm.
    (d) Time for Payment.--
            (1) In general.--The Secretary shall make direct 
        payments--
                    (A) in the case of the 2002 crop year, as 
                soon as practicable after the date of enactment 
                of this Act; and
                    (B) in the case of each of the 2003 through 
                2007 crop years, not before October 1 of the 
                calendar year in which the crop of the covered 
                commodity is harvested.
            (2) Advance payments.--At the option of the 
        producers on a farm, up to 50 percent of the direct 
        payment for a covered commodity for any of the 2003 
        through 2007 crop years shall be paid to the producers 
        in advance. The producers shall select the month within 
        which the advance payment for a crop year will be made. 
        The month selected may be any month during the period 
        beginning on December 1 of the calendar year before the 
        calendar year in which the crop of the covered 
        commodity is harvested through the month within which 
        the direct payment would otherwise be made. The 
        producers may change the selected month for a 
        subsequent advance payment by providing advance notice 
        to the Secretary.
            (3) Repayment of advance payments.--If a producer 
        on a farm that receives an advance direct payment for a 
        crop year ceases to be a producer on that farm, or the 
        extent to which the producer shares in the risk of 
        producing a crop changes, before the date the remainder 
        of the direct payment is made, the producer shall be 
        responsible for repaying the Secretary the applicable 
        amount of the advance payment, as determined by the 
        Secretary.

SEC. 1104. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS.

    (a) Payment Required.--For each of the 2002 through 2007 
crop years for each covered commodity, the Secretary shall make 
counter-cyclical payments to producers on farms for which 
payment yields and base acres are established with respect to 
the covered commodity if the Secretary determines that the 
effective price for the covered commodity is less than the 
target price for the covered commodity.
    (b) Effective Price.--For purposes of subsection (a), the 
effective price for a covered commodity is equal to the sum of 
the following:
            (1) The higher of the following:
                    (A) The national average market price 
                received by producers during the 12-month 
                marketing year for the covered commodity, as 
                determined by the Secretary.
                    (B) The national average loan rate for a 
                marketing assistance loan for the covered 
                commodity in effect for the applicable period 
                under subtitle B.
            (2) The payment rate in effect for the covered 
        commodity under section 1103 for the purpose of making 
        direct payments with respect to the covered commodity.
    (c) Target Price.--
            (1) 2002 and 2003 crop years.--For purposes of the 
        2002 and 2003 crop years, the target prices for covered 
        commodities shall be as follows:
                    (A) Wheat, $3.86 per bushel.
                    (B) Corn, $2.60 per bushel.
                    (C) Grain sorghum, $2.54 per bushel.
                    (D) Barley, $2.21 per bushel.
                    (E) Oats, $1.40 per bushel.
                    (F) Upland cotton, $0.7240 per pound.
                    (G) Rice, $10.50 per hundredweight.
                    (H) Soybeans, $5.80 per bushel.
                    (I) Other oilseeds, $0.0980 per pound.
            (2) Subsequent crop years.--For purposes of each of 
        the 2004 through 2007 crop years, the target prices for 
        covered commodities shall be as follows:
                    (A) Wheat, $3.92 per bushel.
                    (B) Corn, $2.63 per bushel.
                    (C) Grain sorghum, $2.57 per bushel.
                    (D) Barley, $2.24 per bushel.
                    (E) Oats, $1.44 per bushel.
                    (F) Upland cotton, $0.7240 per pound.
                    (G) Rice, $10.50 per hundredweight.
                    (H) Soybeans, $5.80 per bushel.
                    (I) Other oilseeds, $0.1010 per pound.
    (d) Payment Rate.--The payment rate used to make counter-
cyclical payments with respect to a covered commodity for a 
crop year shall be equal to the difference between--
            (1) the target price for the covered commodity; and
            (2) the effective price determined under subsection 
        (b) for the covered commodity.
    (e) Payment Amount.--If counter-cyclical payments are 
required to be paid for any of the 2002 through 2007 crop years 
of a covered commodity, the amount of the counter-cyclical 
payment to be paid to the producers on a farm for that crop 
year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the covered commodity on 
        the farm.
            (3) The payment yield or updated payment yield for 
        the farm, depending on the election of the owner of the 
        farm under section 1102.
    (f) Time for Payments.--
            (1) General rule.--If the Secretary determines 
        under subsection (a) that counter-cyclical payments are 
        required to be made under this section for the crop of 
        a covered commodity, the Secretary shall make the 
        counter-cyclical payments for the crop as soon as 
        practicable after the end of the 12-month marketing 
        year for the covered commodity.
            (2) Availability of partial payments.--If, before 
        the end of the 12-month marketing year for a covered 
        commodity, the Secretary estimates that counter-
        cyclical payments will be required for the crop of the 
        covered commodity, the Secretary shall give producers 
        on a farm the option to receive partial payments of the 
        counter-cyclical payment projected to be made for that 
        crop of the covered commodity.
            (3) Time for partial payments.--
                    (A) 2002 through 2006 crop years.--When the 
                Secretary makes partial payments available 
                under paragraph (2) for a covered commodity for 
                any of the 2002 through 2006 crop years--
                            (i) the first partial payment for 
                        the crop year shall be made not earlier 
                        than October 1, and, to the maximum 
                        extent practicable, not later than 
                        October 31, of the calendar year in 
                        which the crop of the covered commodity 
                        is harvested;
                            (ii) the second partial payment 
                        shall be made not earlier than February 
                        1 of the next calendar year; and
                            (iii) the final partial payment 
                        shall be made as soon as practicable 
                        after the end of the 12-month marketing 
                        year for the covered commodity.
                    (B) 2007 crop year.--When the Secretary 
                makes partial payments available for a covered 
                commodity for the 2007 crop year--
                            (i) the first partial payment shall 
                        be made after completion of the first 6 
                        months of the marketing year for the 
                        covered commodity; and
                            (ii) the final partial payment 
                        shall be made as soon as practicable 
                        after the end of the 12-month marketing 
                        year for the covered commodity.
            (4) Amount of partial payments.--
                    (A) 2002 through 2006 crop years.--
                            (i) First partial payment.--For 
                        each of the 2002 through 2006 crop 
                        years of a covered commodity, the first 
                        partial payment under paragraph (3) to 
                        the producers on a farm may not exceed 
                        35 percent of the projected counter-
                        cyclical payment for the covered 
                        commodity for the crop year, as 
                        determined by the Secretary.
                            (ii) Second partial payment.--The 
                        second partial payment for a covered 
                        commodity for a crop year may not 
                        exceed the difference between--
                                    (I) 70 percent of the 
                                projected counter-cyclical 
                                payment (including any revision 
                                thereof) for the crop of the 
                                covered commodity; and
                                    (II) the amount of the 
                                payment made under clause (i).
                            (iii) Final payment.--The final 
                        payment for a covered commodity for a 
                        crop year shall be equal to the 
                        difference between--
                                    (I) the actual counter-
                                cyclical payment to be made to 
                                the producers for the covered 
                                commodity for that crop year; 
                                and
                                    (II) the amount of the 
                                partial payments made to the 
                                producers under clauses (i) and 
                                (ii) for that crop year.
                    (B) 2007 crop year.--
                            (i) First partial payment.--For the 
                        2007 crop year, the first partial 
                        payment under paragraph (3) to the 
                        producers on a farm may not exceed 40 
                        percent of the projected counter-
                        cyclical payment for the covered 
                        commodity for the crop year, as 
                        determined by the Secretary.
                            (ii) Final payment.--The final 
                        payment for the 2007 crop year shall be 
                        equal to the difference between--
                                    (I) the actual counter-
                                cyclical payment to be made to 
                                the producers for the covered 
                                commodity for that crop year; 
                                and
                                    (II) the amount of the 
                                partial payment made to the 
                                producers under clause (i).
            (5) Repayment.--The producers on a farm that 
        receive a partial payment under this subsection for a 
        crop year shall repay to the Secretary the amount, if 
        any, by which the total of the partial payments exceed 
        the actual counter-cyclical payment to be made for the 
        covered commodity for that crop year.

SEC. 1105. PRODUCER AGREEMENT REQUIRED AS CONDITION OF PROVISION OF 
                    DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm 
        may receive direct payments or counter-cyclical 
        payments with respect to the farm, the producers shall 
        agree, during the crop year for which the payments are 
        made and in exchange for the payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3811 
                et seq.);
                    (B) to comply with applicable wetland 
                protection requirements under subtitle C of 
                title XII of the Act (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1106;
                    (D) to use the land on the farm, in a 
                quantity equal to the attributable base acres 
                for the farm and any base acres for peanuts for 
                the farm under subtitle C for an agricultural 
                or conserving use, and not for a 
                nonagricultural commercial or industrial use, 
                as determined by the Secretary; and
                    (E) to effectively control noxious weeds 
                and otherwise maintain the land in accordance 
                with sound agricultural practices, as 
                determined by the Secretary, if the 
                agricultural or conserving use involves the 
                noncultivation of any portion of the land 
                referred to in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules 
        as the Secretary considers necessary to ensure producer 
        compliance with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee 
        or owner, the Secretary may modify the requirements of 
        this subsection if the modifications are consistent 
        with the objectives of this subsection, as determined 
        by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--Except as provided in paragraph 
        (2), a transfer of (or change in) the interest of the 
        producers on a farm in base acres for which direct 
        payments or counter-cyclical payments are made shall 
        result in the termination of the payments with respect 
        to the base acres, unless the transferee or owner of 
        the acreage agrees to assume all obligations under 
        subsection (a). The termination shall take effect on 
        the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct 
        payment or counter-cyclical payment dies, becomes 
        incompetent, or is otherwise unable to receive the 
        payment, the Secretary shall make the payment, in 
        accordance with rules issued by the Secretary.
    (c) Acreage Reports.--As a condition on the receipt of any 
benefits under this subtitle or subtitle B, the Secretary shall 
require producers on a farm to submit to the Secretary annual 
acreage reports with respect to all cropland on the farm.
    (d) Tenants and Sharecroppers.--In carrying out this 
subtitle, the Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for 
the sharing of direct payments and counter-cyclical payments 
among the producers on a farm on a fair and equitable basis.

SEC. 1106. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any 
commodity or crop may be planted on base acres on a farm.
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an 
        agricultural commodity specified in paragraph (3) shall 
        be prohibited on base acres unless the commodity, if 
        planted, is destroyed before harvest.
            (2) Treatment of trees and other perennials.--The 
        planting of an agricultural commodity specified in 
        paragraph (3) that is produced on a tree or other 
        perennial plant shall be prohibited on base acres.
            (3) Covered agricultural commodities.--Paragraphs 
        (1) and (2) apply to the following agricultural 
        commodities:
                    (A) Fruits.
                    (B) Vegetables (other than lentils, mung 
                beans, and dry peas).
                    (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
shall not limit the planting of an agricultural commodity 
specified in paragraph (3) of that subsection--
            (1) in any region in which there is a history of 
        double-cropping of covered commodities with 
        agricultural commodities specified in subsection 
        (b)(3), as determined by the Secretary, in which case 
        the double-cropping shall be permitted;
            (2) on a farm that the Secretary determines has a 
        history of planting agricultural commodities specified 
        in subsection (b)(3) on base acres, except that direct 
        payments and counter-cyclical payments shall be reduced 
        by an acre for each acre planted to such an 
        agricultural commodity; or
            (3) by the producers on a farm that the Secretary 
        determines has an established planting history of a 
        specific agricultural commodity specified in subsection 
        (b)(3), except that--
                    (A) the quantity planted may not exceed the 
                average annual planting history of such 
                agricultural commodity by the producers on the 
                farm in the 1991 through 1995 or 1998 through 
                2001 crop years (excluding any crop year in 
                which no plantings were made), as determined by 
                the Secretary; and
                    (B) direct payments and counter-cyclical 
                payments shall be reduced by an acre for each 
                acre planted to such agricultural commodity.
    (d) Special Rule for 2002 Crop Year.--For the 2002 crop 
year only, if the calculation of base acres under section 
1101(a) results in total base acres for a farm in excess of the 
contract acreage (as defined in section 102 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7202)) 
for the farm used to calculate the fiscal year 2002 payment 
authorized under section 114 of such Act (7 U.S.C. 7214), 
paragraphs (1) and (2) of subsection (b) shall not limit the 
harvesting of an agricultural commodity specified in paragraph 
(3) of that subsection on the excess base acres, except that 
direct payments and counter-cyclical payments for the 2002 crop 
year shall be reduced by an acre for each acre of the excess 
base acres planted to such an agricultural commodity.

SEC. 1107. RELATION TO REMAINING PAYMENT AUTHORITY UNDER PRODUCTION 
                    FLEXIBILITY CONTRACTS.

    (a) Termination of Superseded Payment Authority.--
Notwithstanding section 113(a)(7) of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7213(a)(7)) or any 
other provision of law, the Secretary shall not make payments 
for fiscal year 2002 after the date of enactment of this Act 
under a production flexibility contract entered into under 
section 111 of that Act (7 U.S.C. 7211) unless requested by the 
producer that is a party to the contract.
    (b) Contract Payments Made Before Enactment.--If a producer 
receives all or any portion of the payment authorized for 
fiscal year 2002 under a production flexibility contract, the 
Secretary shall reduce the amount of the direct payment 
otherwise due the producer for the 2002 crop year under section 
1103 by the amount of the fiscal year 2002 payment received by 
the producer under the production flexibility contract.

SEC. 1108. PERIOD OF EFFECTIVENESS.

    This subtitle shall be effective beginning with the 2002 
crop year of each covered commodity through the 2007 crop year.

  Subtitle B--Marketing Assistance Loans and Loan Deficiency Payments

SEC. 1201. AVAILABILITY OF NONRECOURSE MARKETING ASSISTANCE LOANS FOR 
                    LOAN COMMODITIES.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2002 through 
        2007 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.
            (2) Terms and conditions.--The marketing assistance 
        loans shall be made under terms and conditions that are 
        prescribed by the Secretary and at the loan rate 
        established under section 1202 for the loan commodity.
    (b) Eligible Production.--The producers on a farm shall be 
eligible for a marketing assistance loan under subsection (a) 
for any quantity of a loan commodity produced on the farm.
    (c) Treatment of Certain Commingled Commodities.--In 
carrying out this subtitle, the Secretary shall make loans to 
producers on a farm that would be eligible to obtain a 
marketing assistance loan, but for the fact the loan commodity 
owned by the producers on the farm commingled with loan 
commodities of other producers in facilities unlicensed for the 
storage of agricultural commodities by the Secretary or a State 
licensing authority, if the producers obtaining the loan agree 
to immediately redeem the loan collateral in accordance with 
section 166 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7286).
    (d) Compliance With Conservation and Wetlands 
Requirements.--As a condition of the receipt of a marketing 
assistance loan under subsection (a), the producer shall comply 
with applicable conservation requirements under subtitle B of 
title XII of the Food Security Act of 1985 (16 U.S.C. 3811 et 
seq.) and applicable wetland protection requirements under 
subtitle C of title XII of the Act (16 U.S.C. 3821 et seq.) 
during the term of the loan.
    (e) Termination of Superseded Loan Authority.--
Notwithstanding section 131 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7231), nonrecourse 
marketing assistance loans shall not be made for the 2002 crop 
of loan commodities under subtitle C of title I of such Act.

SEC. 1202. LOAN RATES FOR NONRECOURSE MARKETING ASSISTANCE LOANS.

    (a) 2002 and 2003 Crop Years.--For purposes of the 2002 and 
2003 crop years, the loan rate for a marketing assistance loan 
under section 1201 for a loan commodity shall be equal to the 
following:
            (1) In the case of wheat, $2.80 per bushel.
            (2) In the case of corn, $1.98 per bushel.
            (3) In the case of grain sorghum, $1.98 per bushel.
            (4) In the case of barley, $1.88 per bushel.
            (5) In the case of oats, $1.35 per bushel.
            (6) In the case of upland cotton, $0.52 per pound.
            (7) In the case of extra long staple cotton, 
        $0.7977 per pound.
            (8) In the case of rice, $6.50 per hundredweight.
            (9) In the case of soybeans, $5.00 per bushel.
            (10) In the case of other oilseeds, $0.0960 per 
        pound.
            (11) In the case of graded wool, $1.00 per pound.
            (12) In the case of nongraded wool, $0.40 per 
        pound.
            (13) In the case of mohair, $4.20 per pound.
            (14) In the case of honey, $0.60 per pound.
            (15) In the case of dry peas, $6.33 per 
        hundredweight.
            (16) In the case of lentils, $11.94 per 
        hundredweight.
            (17) In the case of small chickpeas, $7.56 per 
        hundredweight.
    (b) 2004 Through 2007 Crop Years.--For purposes of the 2004 
through 2007 crop years, the loan rate for a marketing 
assistance loan under section 1201 for a loan commodity shall 
be equal to the following:
            (1) In the case of wheat, $2.75 per bushel.
            (2) In the case of corn, $1.95 per bushel.
            (3) In the case of grain sorghum, $1.95 per bushel.
            (4) In the case of barley, $1.85 per bushel.
            (5) In the case of oats, $1.33 per bushel.
            (6) In the case of upland cotton, $0.52 per pound.
            (7) In the case of extra long staple cotton, 
        $0.7977 per pound.
            (8) In the case of rice, $6.50 per hundredweight.
            (9) In the case of soybeans, $5.00 per bushel.
            (10) In the case of other oilseeds, $0.0930 per 
        pound.
            (11) In the case of graded wool, $1.00 per pound.
            (12) In the case of nongraded wool, $0.40 per 
        pound.
            (13) In the case of mohair, $4.20 per pound.
            (14) In the case of honey, $0.60 per pound.
            (15) In the case of dry peas, $6.22 per 
        hundredweight.
            (16) In the case of lentils, $11.72 per 
        hundredweight.
            (17) In the case of small chickpeas, $7.43 per 
        hundredweight.

SEC. 1203. TERM OF LOANS.

    (a) Term of Loan.--In the case of each loan commodity, a 
marketing assistance loan under section 1201 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) Extensions Prohibited.--The Secretary may not extend 
the term of a marketing assistance loan for any loan commodity.

SEC. 1204. REPAYMENT OF LOANS.

    (a) General Rule.--The Secretary shall permit the producers 
on a farm to repay a marketing assistance loan under section 
1201 for a loan commodity (other than upland cotton, rice, and 
extra long staple cotton) at a rate that is the lesser of--
            (1) the loan rate established for the commodity 
        under section 1202, plus interest (determined in 
        accordance with section 163 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7283)); or
            (2) a rate that the Secretary determines will--
                    (A) minimize potential loan forfeitures;
                    (B) minimize the accumulation of stocks of 
                the commodity by the Federal Government;
                    (C) minimize the cost incurred by the 
                Federal Government in storing the commodity;
                    (D) allow the commodity produced in the 
                United States to be marketed freely and 
                competitively, both domestically and 
                internationally; and
                    (E) minimize discrepancies in marketing 
                loan benefits across State boundaries and 
                across county boundaries.
    (b) Repayment Rates for Upland Cotton and Rice.--The 
Secretary shall permit producers to repay a marketing 
assistance loan under section 1201 for upland cotton and rice 
at a rate that is the lesser of--
            (1) the loan rate established for the commodity 
        under section 1202, plus interest (determined in 
        accordance with section 163 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7283)); 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 1202, plus interest (determined in accordance 
with section 163 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7283)).
    (d) Prevailing World Market Price.--For purposes of this 
section and section 1207, the Secretary shall prescribe by 
regulation--
            (1) a formula to determine the prevailing world 
        market price for upland cotton and rice, adjusted to 
        United States quality and location; and
            (2) a mechanism by which the Secretary shall 
        announce periodically the prevailing world market price 
        for upland cotton and rice.
    (e) Adjustment of Prevailing World Market Price for Upland 
Cotton.--
            (1) In general.--During the period beginning on the 
        date of the enactment of this Act through July 31, 
        2008, 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 
                1202, as determined by the Secretary; and
                    (B) the Friday through Thursday average 
                price quotation for the lowest-priced United 
                States growth as quoted for Middling (M) 1\3/
                32\-inch cotton delivered C.I.F. Northern 
                Europe is greater than the Friday through 
                Thursday average price of the 5 lowest-priced 
                growths of upland cotton, as quoted for 
                Middling (M) 1\3/32\-inch cotton, delivered 
                C.I.F. Northern Europe (referred to in this 
                section as the ``Northern Europe price'').
            (2) Further adjustment.--Except as provided in 
        paragraph (3), the adjusted prevailing world market 
        price for upland cotton shall be further adjusted on 
        the basis of some or all of the following data, as 
        available:
                    (A) The United States share of world 
                exports.
                    (B) The current level of cotton export 
                sales and cotton export shipments.
                    (C) Other data determined by the Secretary 
                to be relevant in establishing an accurate 
                prevailing world market price for upland cotton 
                (adjusted to United States quality and 
                location).
            (3) Limitation on further adjustment.--The 
        adjustment under paragraph (2) may not exceed the 
        difference between--
                    (A) the Friday through Thursday average 
                price for the lowest-priced United States 
                growth as quoted for Middling 1\3/32\-inch 
                cotton delivered C.I.F. Northern Europe; and
                    (B) the Northern Europe price.
    (f) Good Faith Exception to Beneficial Interest 
Requirement.--For the 2001 crop year only, in the case of the 
producers on a farm that marketed or otherwise lost beneficial 
interest in a loan commodity for which a marketing assistance 
loan was made under section 131 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7231) before 
repaying the loan, the Secretary shall permit the producers to 
repay the loan at the appropriate repayment rate that was in 
effect for the loan commodity under section 134 of that Act (7 
U.S.C. 7234) on the date that the producers lost beneficial 
interest, as determined by the Secretary, if the Secretary 
determines the producers acted in good faith.

SEC. 1205. LOAN DEFICIENCY PAYMENTS.

    (a) Availability of Loan Deficiency Payments.--
            (1) In general.--Except as provided in subsection 
        (d), the Secretary may make loan deficiency payments 
        available to producers on a farm that, although 
        eligible to obtain a marketing assistance loan under 
        section 1201 with respect to a loan commodity, agree to 
        forgo obtaining the loan for the commodity in return 
        for loan deficiency payments under this section.
            (2) Unshorn pelts, hay, and silage.--Nongraded wool 
        in the form of unshorn pelts and hay and silage derived 
        from a loan commodity are not eligible for a marketing 
        assistance loan under section 1201. However, effective 
        for the 2002 through 2007 crop years, the Secretary may 
        make loan deficiency payments available under this 
        section to producers on a farm that produce unshorn 
        pelts or hay and silage derived from a loan commodity.
    (b) Computation.--A loan deficiency payment for a loan 
commodity or commodity referred to in subsection (a)(2) shall 
be computed by multiplying--
            (1) the payment rate determined under subsection 
        (c) for the commodity; by
            (2) the quantity of the commodity produced by the 
        eligible producers, excluding any quantity for which 
        the producers obtain a marketing assistance loan under 
        section 1201.
    (c) Payment Rate.--
            (1) In general.--In the case of a loan commodity, 
        the payment rate shall be the amount by which--
                    (A) the loan rate established under section 
                1202 for the loan commodity; exceeds
                    (B) the rate at which a marketing 
                assistance loan for the loan commodity may be 
                repaid under section 1204.
            (2) Unshorn pelts.--In the case of unshorn pelts, 
        the payment rate shall be the amount by which--
                    (A) the loan rate established under section 
                1202 for ungraded wool; exceeds
                    (B) the rate at which a marketing 
                assistance loan for ungraded wool may be repaid 
                under section 1204.
            (3) Hay and silage.--In the case of hay or silage 
        derived from a loan commodity, the payment rate shall 
        be the amount by which--
                    (A) the loan rate established under section 
                1202 for the loan commodity from which the hay 
                or silage is derived; exceeds
                    (B) the rate at which a marketing 
                assistance loan for the loan commodity may be 
                repaid under section 1204.
    (d) Exception for Extra Long Staple Cotton.--This section 
shall not apply with respect to extra long staple cotton.
    (e) Effective Date for Payment Rate Determination.--The 
Secretary shall determine the amount of the loan deficiency 
payment to be made under this section to the producers on a 
farm with respect to a quantity of a loan commodity or 
commodity referred to in subsection (a)(2) using the payment 
rate in effect under subsection (c) as of the date the 
producers request the payment.
    (f) Special Loan Deficiency Payment Rules.--
            (1) First-time loan commodities.--For the 2002 crop 
        of wool, mohair, honey, dry peas, lentils and small 
        chickpeas, inthe case of producers of such a crop that 
would be eligible for a loan deficiency payment under this section 
except for the fact that the producers lost beneficial interest in the 
crop prior to the date of publication of the regulations implementing 
this section, the producers shall be eligible for a loan deficiency 
payment as of the date producers marketed or otherwise lost beneficial 
interest in the crop, as determined by the Secretary.
            (2) 2001 crop year.--Section 135 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7235) is amended--
                    (A) in subsection (a)(2), by striking 
                ``2000 crop year'' and inserting ``2000 and 
                2001 crop years''; and
                    (B) by adding at the end the following:
    ``(g) Effective Date for Payment Rate Determination.--For 
the 2001 crop year, the Secretary shall determine the amount of 
the loan deficiency payment to be made under this section to 
the producers on a farm with respect to a quantity of a loan 
commodity using the payment rate in effect under subsection (c) 
as of the earlier of the following:
            ``(1) The date on which the producers marketed or 
        otherwise lost beneficial interest in the crop of the 
        loan commodity, as determined by the Secretary.
            ``(2) The date the producers requested the 
        payment.''.

SEC. 1206. PAYMENTS IN LIEU OF LOAN DEFICIENCY PAYMENTS FOR GRAZED 
                    ACREAGE.

    (a) Eligible Producers.--
            (1) In general.--Effective for the 2002 through 
        2007 crop years, in the case of a producer that would 
        be eligible for a loan deficiency payment under section 
        1205 for wheat, barley, or oats, but that elects to use 
        acreage planted to the wheat, barley, or oats for the 
        grazing of livestock, the Secretary shall make a 
        payment to the producer under this section if the 
        producer enters into an agreement with the Secretary to 
        forgo any other harvesting of the wheat, barley, or 
        oats on that acreage.
            (2) Grazing of triticale acreage.--Effective for 
        the 2002 through 2007 crop years, with respect to a 
        producer on a farm that uses acreage planted to 
        triticale for the grazing of livestock, the Secretary 
        shall make a payment to the producer under this section 
        if the producer enters into an agreement with the 
        Secretary to forgo any other harvesting of triticale on 
        that acreage.
    (b) Payment Amount.--
            (1) In general.--The amount of a payment made under 
        this section to a producer on a farm described in 
        subsection (a)(1) shall be equal to the amount 
        determined by multiplying--
                    (A) the loan deficiency payment rate 
                determined under section 1205(c) in effect, as 
                of the date of the agreement, for the county in 
                which the farm is located; by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed 
                        acreage on the farm with respect to 
                        which the producer elects to forgo 
                        harvesting of wheat, barley, or oats; 
                        and
                            (ii) the payment yield in effect 
                        for the calculation of direct payments 
                        under subtitle A with respect to that 
                        loan commodity on the farm or, in the 
                        case of a farm without a payment yield 
                        for that loan commodity, an appropriate 
                        yield established by the Secretary in a 
                        manner consistent with section 1102(c).
            (2) Grazing of triticale acreage.--The amount of a 
        payment made under this section to a producer on a farm 
        described in subsection (a)(2) shall be equal to the 
        amount determined by multiplying--
                    (A) the loan deficiency payment rate 
                determined under section 1205(c) in effect for 
                wheat, as of the date of the agreement, for the 
                county in which the farm is located; by
                    (B) the payment quantity determined by 
                multiplying--
                            (i) the quantity of the grazed 
                        acreage on the farm with respect to 
                        which the producer elects to forgo 
                        harvesting of triticale; and
                            (ii) the payment yield in effect 
                        for the calculation of direct payments 
                        under subtitle A with respect to wheat 
                        on the farm or, in the case of a farm 
                        without a payment yield for wheat, an 
                        appropriate yield established by the 
                        Secretary in a manner consistent with 
                        section 1102(c).
    (c) Time, Manner, and Availability of Payment.--
            (1) Time and manner.--A payment under this section 
        shall be made at the same time and in the same manner 
        as loan deficiency payments are made under section 
        1205.
            (2) Availability.--The Secretary shall establish an 
        availability period for the payments authorized by this 
        section. In the case of wheat, barley, and oats, the 
        availability period shall be consistent with the 
        availability period for the commodity established by 
        the Secretary for marketing assistance loans authorized 
        by this subtitle.
    (d) Prohibition on Crop Insurance Indemnity or Noninsured 
Crop Assistance.--A 2002 through 2007 crop of wheat, barley, 
oats, or triticale planted on acreage that a producer elects, 
in the agreement required by subsection (a), to use for the 
grazing of livestock in lieu of any other harvesting of the 
crop shall not be eligible for an indemnity under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.) or noninsured crop 
assistance under section 196 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7333).

SEC. 1207. SPECIAL MARKETING LOAN PROVISIONS FOR UPLAND COTTON.

    (a) Cotton User Marketing Certificates.--
            (1) Issuance.--During the period beginning on the 
        date of the enactment of this Act through July 31, 
        2008, the Secretary shall issue marketing certificates 
        or cash payments, at the option of the recipient, to 
        domestic users and exporters for documented purchases 
        by domestic users and sales for export by exporters 
        made in the week following a consecutive 4-week period 
        in which--
                    (A) the Friday through Thursday average 
                price quotation for the lowest-priced United 
                States growth, as quoted for Middling (M) 1\3/
                32\-inch cotton, delivered C.I.F. Northern 
                Europe exceeds the Northern Europe price by 
                more than 1.25 cents per pound; and
                    (B) the prevailing world market price for 
                upland cotton (adjusted to United States 
                quality and location) does not exceed 134 
                percent of the loan rate for upland cotton 
                established under section 1202.
            (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 fourth 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 or pledged to the Commodity 
                Credit Corporation as collateral for a loan in 
                such manner, and at such price levels, as the 
                Secretary determines will best effectuate the 
                purposes of cotton user marketing certificates, 
                including enhancing the competitiveness and 
                marketability of United States cotton. Any 
                price restrictions that would otherwise apply 
                to the disposition of agricultural commodities 
                by the Commodity Credit Corporation shall not 
                apply to the redemption of certificates under 
                this subsection.
                    (B) Designation of commodities and 
                products.--To the extent practicable, the 
                Secretary shall permit owners of certificates 
                to designate the commodities and products, 
                including storage sites, the owners would 
                prefer to receive in exchange for certificates
                    (C) Transfers.--Marketing certificates 
                issued to domestic users and exporters of 
                upland cotton may be transferred to other 
                persons in accordance with regulations issued 
                by the Secretary.
            (4) Delayed application of threshold.--Through July 
        31, 2006, the Secretary shall make the calculations 
        under paragraphs (1)(A) and (2) without regard to the 
        1.25 cent threshold provided under those paragraphs.
    (b) Special Import Quota.--
            (1) Establishment.--
                    (A) In general.--The President shall carry 
                out an import quota program during the period 
                beginning on the date of the enactment of this 
                Act through July 31, 2008, as provided in this 
                subsection.
                    (B) Program requirements.--Except as 
                provided in subparagraph (C), whenever the 
                Secretary determines and announces that for any 
                consecutive 4-week period, the Friday through 
                Thursday average price quotation for the 
                lowest-priced United States growth, as quoted 
                for Middling (M) 1\3/32\-inch cotton, delivered 
                C.I.F. Northern Europe, adjusted for the value 
                of any certificate issued under subsection (a), 
                exceeds the Northern Europe price by more than 
                1.25 cents per pound, there shall immediately 
                be in effect a special import quota.
                    (C) Tight domestic supply.--During any 
                month for which the Secretary estimates the 
                season-ending United States upland cotton 
                stocks-to-use ratio, as determined under 
                subparagraph (D), to be below 16 percent, the 
                Secretary, in making the determination under 
                subparagraph (B), shall not adjust the Friday 
                through Thursday average price quotation for 
                the lowest-priced United States growth, as 
                quoted for Middling (M) 1\3/32\-inch cotton, 
                delivered C.I.F. Northern Europe, for the value 
                of any certificates issued under subsection 
                (a).
                    (D) Season-ending united states stocks-to-
                use ratio.--For the purposes of making 
                estimates under subparagraph (C), the Secretary 
                shall, on a monthly basis, estimate and report 
                the season-ending United States upland cotton 
                stocks-to-use ratio, excluding projected raw 
                cotton imports but including the quantity of 
                raw cotton that has been imported into the 
                United States during the marketing year.
                    (E) Delayed application of threshold.--
                Through July 31, 2006, the Secretary shall make 
                the calculation under subparagraph (B) without 
                regard to the 1.25 cent threshold provided 
                under that subparagraph.
            (2) Quantity.--The quota shall be equal to one 
        week's consumption of upland cotton by domestic mills 
        at the seasonally adjusted average rate of the most 
        recent three months for which data are available.
            (3) Application.--The quota shall apply to upland 
        cotton purchased not later than 90 days after the date 
        of the Secretary's announcement under paragraph (1) and 
        entered into the United States not later than 180 days 
        after the date.
            (4) Overlap.--A special quota period may be 
        established that overlaps any existing quota period if 
        required by paragraph (1), except that a special quota 
        period may not be established under this subsection if 
        a quota period has been established under subsection 
        (c).
            (5) Preferential tariff treatment.--The quantity 
        under a special import quota shall be considered to be 
        an in-quota quantity for purposes of--
                    (A) section 213(d) of the Caribbean Basin 
                Economic Recovery Act (19 U.S.C. 2703(d));
                    (B) section 204 of the Andean Trade 
                Preference Act (19 U.S.C. 3203);
                    (C) section 503(d) of the Trade Act of 1974 
                (19 U.S.C. 2463(d)); and
                    (D) General Note 3(a)(iv) to the Harmonized 
                Tariff Schedule.
            (6) Definition.--In this subsection, the term 
        ``special import quota'' means a quantity of imports 
        that is not subject to the over-quota tariff rate of a 
        tariff-rate quota.
            (7) Limitation.--The quantity of cotton entered 
        into the United States during any marketing year under 
        the special import quota established under this 
        subsection may not exceed the equivalent of 5 week's 
        consumption of upland cotton by domestic mills at the 
        seasonally adjusted average rate of the 3 months 
        immediately preceding the first special import quota 
        established in any marketing year.
    (c) Limited Global Import Quota for Upland Cotton.--
            (1) In general.--The President shall carry out an 
        import quota program that provides that whenever the 
        Secretary determines and announces that the average 
        price of the base quality of upland cotton, as 
        determined by the Secretary, in the designated spot 
        markets for a month exceeded 130 percent of the average 
        price of such quality of cotton in the markets for the 
        preceding 36 months, notwithstanding any other 
        provision of law, there shall immediately be in effect 
        a limited global import quota subject to the following 
        conditions:
                    (A) Quantity.--The quantity of the quota 
                shall be equal to 21 days of domestic mill 
                consumption of upland cotton at the seasonally 
                adjusted average rate of the most recent 3 
                months for which data are available.
                    (B) Quantity if prior quota.--If a quota 
                has been established under this subsection 
                during the preceding 12 months, the quantity of 
                the quota next established under this 
                subsection shall be the smaller of 21 days of 
                domestic mill consumption calculated under 
                subparagraph (A) or the quantity required to 
                increase the supply to 130 percent of the 
                demand.
                    (C) Preferential tariff treatment.--The 
                quantity under a limited global import quota 
                shall be considered to be an in-quota quantity 
                for purposes of--
                            (i) section 213(d) of the Caribbean 
                        Basin Economic Recovery Act (19 U.S.C. 
                        2703(d));
                            (ii) section 204 of the Andean 
                        Trade Preference Act (19 U.S.C. 3203);
                            (iii) section 503(d) of the Trade 
                        Act of 1974 (19 U.S.C. 2463(d)); and
                            (iv) General Note 3(a)(iv) to the 
                        Harmonized Tariff Schedule.
                    (D) Definitions.--In this subsection:
                            (i) Supply.--The term ``supply'' 
                        means, using the latest official data 
                        of the Bureau of the Census, the 
                        Department of Agriculture, and the 
                        Department of the Treasury--
                                    (I) the carry-over of 
                                upland cotton at the beginning 
                                of the marketing year (adjusted 
                                to 480-pound bales) in which 
                                the quota is established;
                                    (II) production of the 
                                current crop; and
                                    (III) imports to the latest 
                                date available during the 
                                marketing year.
                            (ii) Demand.--The term ``demand'' 
                        means--
                                    (I) the average seasonally 
                                adjusted annual rate of 
                                domestic mill consumption 
                                during the most recent 3 months 
                                for which data are available; 
                                and
                                    (II) the larger of--
                                            (aa) average 
                                        exports of upland 
                                        cotton during the 
                                        preceding 6 marketing 
                                        years; or
                                            (bb) cumulative 
                                        exports of upland 
                                        cotton plus outstanding 
                                        export sales for the 
                                        marketing year in which 
                                        the quota is 
                                        established.
                            (iii) Limited global import 
                        quota.--The term ``limited global 
                        import quota'' means a quantity of 
                        imports that is not subject to the 
                        over-quota tariff rate of a tariff-rate 
                        quota.
                    (E) Quota entry period.--When a quota is 
                established under this subsection, cotton may 
                be entered under the quota during the 90-day 
                period beginning on the date the quota is 
                established by the Secretary.
            (2) No overlap.--Notwithstanding paragraph (1), a 
        quota period may not be established that overlaps an 
        existing quota period or a special quota period 
        established under subsection (b).

SEC. 1208. SPECIAL COMPETITIVE PROVISIONS FOR EXTRA LONG STAPLE COTTON.

    (a) Competitiveness Program.--Notwithstanding any other 
provision of law, during the period beginning on the date of 
the enactment of this Act through July 31, 2008, the Secretary 
shall carry out a program--
            (1) to maintain and expand the domestic use of 
        extra long staple cotton produced in the United States;
            (2) to increase exports of extra long staple cotton 
        produced in the United States; and
            (3) to ensure that extra long staple cotton 
        produced in the United States remains competitive in 
        world markets.
    (b) Payments Under Program; Trigger.--Under the program, 
the Secretary shall make payments available under this section 
whenever--
            (1) for a consecutive 4-week period, the world 
        market price for the lowest priced competing growth of 
        extra long staple cotton (adjusted to United States 
        quality and location and for other factors affecting 
        the competitiveness of such cotton), as determined by 
        the Secretary, is below the prevailing United States 
        price for a competing growth of extra long staple 
        cotton; and
            (2) the lowest priced competing growth of extra 
        long staple cotton (adjusted to United States quality 
        and location and for other factors affecting the 
        competitiveness of such cotton), as determined by the 
        Secretary, is less than 134 percent of the loan rate 
        for extra long staple cotton.
    (c) Eligible Recipients.--The Secretary shall make payments 
available under this section to domestic users of extra long 
staple cotton produced in the United States and exporters of 
extra long staple cotton produced in the United States that 
enter into an agreement with the Commodity Credit Corporation 
to participate in the program under this section.
    (d) Payment Amount.--Payments under this section shall be 
based on the amount of the difference in the prices referred to 
in subsection (b)(1) during the fourth week of the consecutive 
4-week period multiplied by the amount of documented purchases 
by domestic users and sales for export by exporters made in the 
week following such a consecutive 4-week period.
    (e) Form of Payment.--Payments under this section shall be 
made through the issuance of cash or marketing certificates, at 
the option of eligible recipients of the payments.

SEC. 1209. 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 2002 
        through 2007 crops of corn and grain sorghum, the 
        Secretary shall make available recourse loans, as 
        determined by the Secretary, to producers on a farm 
        that--
                    (A) normally harvest all or a portion of 
                their crop of corn or grain sorghum in a high 
                moisture state;
                    (B) present--
                            (i) certified scale tickets from an 
                        inspected, certified commercial scale, 
                        including a licensed warehouse, 
                        feedlot, feed mill, distillery, or 
                        other similar entity approved by the 
                        Secretary, pursuant to regulations 
                        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 used to make counter-cyclical payments 
                under subtitle A 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 
        1201.
    (b) Recourse Loans Available for Seed Cotton.--For each of 
the 2002 through 2007 crops of upland cotton and extra long 
staple cotton, the Secretary shall make available recourse seed 
cotton loans, as determined by the Secretary, on any 
production.
    (c) Repayment Rates.--Repayment of a recourse loan made 
under this section shall be at the loan rate established for 
the commodity by the Secretary, plus interest (determined in 
accordance with section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7283)).
    (d) Termination of Superseded Loan Authority.--
Notwithstanding section 137 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7237), recourse 
loans shall not be made for the 2002 crop of corn, grain 
sorghum, and seed cotton under such section.

                          Subtitle C--Peanuts

SEC. 1301. DEFINITIONS.

    In this subtitle:
            (1) Base acres for peanuts.--The term ``base acres 
        for peanuts'' means the number of acres assigned to a 
        farm by historic peanut producers pursuant to section 
        1302(b).
            (2) Counter-cyclical payment.--The term ``counter-
        cyclical payment'' means a payment made under section 
        1304.
            (3) Effective price.--The term ``effective price'' 
        means the price calculated by the Secretary under 
        section 1304 for peanuts to determine whether counter-
        cyclical payments are required to be made under that 
        section for a crop year.
            (4) Direct payment.--The term ``direct payment'' 
        means a payment made under section 1303.
            (5) Historic peanut producer.--The term ``historic 
        peanut producer'' means a producer on a farm in the 
        United States that produced or was prevented from 
        planting peanuts during any or all of the 1998 through 
        2001 crop years.
            (6) Payment acres.--The term ``payment acres'' 
        means--
                    (A) for the 2002 crop of peanuts, 85 
                percent of the average acreage determined under 
                section 1302(a)(2) for an historic peanut 
                producer; and
                    (B) for the 2003 through 2007 crops of 
                peanuts, 85 percent of the base acres for 
                peanuts assigned to a farm under section 
                1302(b).
            (7) Payment yield.--The term ``payment yield'' 
        means the yield assigned to a farm by historic peanut 
        producers pursuant to section 1302(b).
            (8) Producer.--The term ``producer'' means an 
        owner, operator, landlord, tenant, or sharecropper that 
        shares in the risk of producing a crop on a farm and is 
        entitled to share in the crop available for marketing 
        from the farm, or would have shared had the crop been 
        produced. In determining whether a grower of hybrid 
        seed is a producer, the Secretary shall not take into 
        consideration the existence of a hybrid seed contract 
        and shall ensure that program requirements do not 
        adversely affect the ability of the grower to receive a 
        payment under this subtitle.
            (9) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (10) State.--The term ``State'' means each of the 
        several States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, and any 
        other territory or possession of the United States.
            (11) Target price.--The term ``target price'' means 
        the price per ton of peanuts used to determine the 
        payment rate for counter-cyclical payments.
            (12) United states.--The term ``United States'', 
        when used in a geographical sense, means all of the 
        States.

SEC. 1302. ESTABLISHMENT OF PAYMENT YIELD AND BASE ACRES FOR PEANUTS 
                    FOR A FARM.

    (a) Average Yield and Acreage Average for Historic Peanut 
Producers.--
            (1) Determination of average yield.--
                    (A) In general.--The Secretary shall 
                determine, for each historic peanut producer, 
                the average yield for peanuts on each farm on 
                which the historic peanut producer planted 
                peanuts for harvest for the 1998 through 2001 
                crop years, excluding any crop year in which 
                the producer did not plant or was prevented 
                from planting peanuts.
                    (B) Assigned yields.--For the purposes of 
                determining the 4-year average yield for an 
                historic peanut producer under this paragraph, 
                the historic peanut producer may elect to 
                substitute for a farm, for not more than 3 of 
                the 1998 through 2001 crop years in which the 
                producer planted peanuts on the farm, the 
                average yield for peanuts produced in the 
                county in which the farm is located for the 
                1990 through 1997 crop years.
            (2) Determination of acreage average.--
                    (A) In general.--The Secretary shall 
                determine, for each historic peanut producer, 
                the 4-year average of the following:
                            (i) Acreage planted to peanuts on 
                        each farm on which the historic peanut 
                        producer planted peanuts for harvest 
                        for the 1998 through 2001 crop years.
                            (ii) Any acreage on each farm that 
                        the historic peanut producer was 
                        prevented from planting to peanuts 
                        during the 1998 through 2001 crop years 
                        because of drought, flood, or other 
                        natural disaster, or other condition 
                        beyond the control of the historic 
                        peanut producer, as determined by the 
                        Secretary.
                    (B) Inclusion of all 4 years in average.--
                For the purposes of determining the 4-year 
                acreage average for an historic peanut producer 
                under this paragraph, the Secretary shall not 
                exclude any crop year in which the producer did 
                not plant peanuts.
                    (C) Proportional shares.--If more than 1 
                historic peanut producer shared in the risk of 
                producing the crop on a farm, the historic 
                peanut producers shall receive their 
                proportional share of the number of acres 
                planted (or prevented from being planted) to 
                peanuts for harvest on the farm based on the 
                sharing arrangement that was in effect among 
                the producers for the crop.
            (3) Time for determinations.--The Secretary shall 
        make the determinations required by this subsection as 
        soon as practicable after the date of enactment of this 
        Act.
            (4) Special considerations.--In making the 
        determinations required by this subsection, the 
        Secretary shall take into account changes in the 
        number, identity, or interest of producers sharing in 
        the risk of producing a peanut crop since the 1998 crop 
        year, including providing a method for the assignment 
        of average acres and average yield to a farm--
                    (A) when an historic peanut producer is no 
                longer living;
                    (B) when an entity composed of historic 
                peanut producers has been dissolved; or
                    (C) in other appropriate situations, as 
                determined by the Secretary.
    (b) Assignment of Average Yields and Average Acreage to 
Farms.--
            (1) Assignment by historic peanut producers.--The 
        Secretary shall give each historic peanut producer an 
        opportunity to assign the average peanut yield and 
        average acreage determined under subsection (a) for 
        each farm of the historic peanut producer to cropland 
        on that farm or another farm in the same State or a 
        contiguous State.
            (2) Limitation on acreage assignment.--
        Notwithstanding paragraph (1), the average acreage 
        determined under subsection (a)(2) for a farm may not 
        be assigned to a farm in a contiguous State unless--
                    (A) the historic peanut producer making the 
                assignment produced peanuts in that State 
                during at least 1 of the 1998 through 2001 crop 
                years; or
                    (B) as of March 31, 2003, the historic 
                peanut producer is a producer on a farm in that 
                State.
            (3) Notice of assignment opportunity.--The 
        Secretary shall provide notice to historic peanut 
        producers regarding their opportunity to assign average 
        peanut yields and average acreages to farms under 
        paragraph (1). The notice shall include the following:
                    (A) Notice that the opportunity to make the 
                assignments is being provided only once.
                    (B) A description of the limitation in 
                paragraph (2) on their ability to make the 
                assignments.
                    (C) Information regarding the manner in 
                which the assignments must be made and the time 
                periods and manner in which notice of the 
                assignments must be submitted to the Secretary.
            (4) Assignment deadlines.--Not later than March 31, 
        2003, an historic peanut producer shall submit to the 
        Secretary notice of the assignments made by the 
        producer under this subsection. If an historic peanut 
        producer fails to submit the notice by that date, the 
        notice shall be submitted in such other manner as the 
        Secretary may prescribe.
    (c) Payment Yield.--The average of all of the yields 
assigned by historic peanut producers under subsection (b) to a 
farm shall be considered to be the payment yield for that farm 
for the purpose of making direct payments and counter-cyclical 
payments under this subtitle.
    (d) Base Acres for Peanuts.--Subject to subsection (e), the 
total number of acres assigned by historic peanut producers 
under subsection (b) to a farm shall be considered to be the 
farm's base acres for peanuts for the purpose of making direct 
payments and counter-cyclical payments under this subtitle.
    (e) Treatment of Conservation Reserve Contract Acreage.--
            (1) In general.--The Secretary shall provide for an 
        adjustment, as appropriate, in the base acres for 
        peanuts for a farm whenever either of the following 
        circumstances occur:
                    (A) A conservation reserve contract entered 
                into under section 1231 of the Food Security 
                Act of 1985 (16 U.S.C. 3831) with respect to 
                the farm expires or is voluntarily terminated.
                    (B) Cropland is released from coverage 
                under a conservation reserve contract by the 
                Secretary.
            (2) Special payment rules.--For the crop year in 
        which a base acres for peanuts adjustment under 
        paragraph (1) is first made, the owner of the farm 
        shall elect to receive either direct payments and 
        counter-cyclical payments with respect to the acreage 
        added to the farm under this subsection or a prorated 
        payment under the conservation reserve contract, but 
        not both.
    (f) Prevention of Excess Base Acres for Peanuts.--
            (1) Required reduction.--If the sum of the base 
        acres for peanuts for a farm, together with the acreage 
        described in paragraph (2), exceeds the actual cropland 
        acreage of the farm, the Secretary shall reduce the 
        base acres for peanuts for the farm or the base acres 
        for 1 or more covered commodities under subtitle A for 
        the farm so that the sum of the base acres for peanuts 
        and acreage described in paragraph (2) does not exceed 
        the actual cropland acreage of the farm.
            (2) Other acreage.--For purposes of paragraph (1), 
        the Secretary shall include the following:
                    (A) Any base acres for the farm under 
                subtitle A.
                    (B) Any acreage on the farm enrolled in the 
                conservation reserve program or wetlands 
                reserve program under chapter 1 of subtitle D 
                of title XII of the Food Security Act of 1985 
                (16 U.S.C. 3830 et seq.).
                    (C) Any other acreage on the farm enrolled 
                in a conservation program for which payments 
                are made in exchange for not producing an 
                agricultural commodity on the acreage.
            (3) Selection of acres.--The Secretary shall give 
        the owner of the farm the opportunity to select the 
        base acres for peanuts or the subtitle A base acres 
        against which the reduction required by paragraph (1) 
        will be made.
            (4) Exception for double-cropped acreage.--In 
        applying paragraph (1), the Secretary shall make an 
        exception in the case of double cropping, as determined 
        by the Secretary.
            (5) Coordinated application of requirements.--The 
        Secretary shall take into account section 1101(g) when 
        applying the requirements of this subsection.
    (g) Permanent Reduction in Base Acres for Peanuts.--The 
owner of a farm may reduce, at any time, the base acres for 
peanuts assigned to the farm. The reduction shall be permanent 
and made in the manner prescribed by the Secretary.

SEC. 1303. AVAILABILITY OF DIRECT PAYMENTS FOR PEANUTS.

    (a) Payment Required.--
            (1) 2002 crop year.--For the 2002 crop year, the 
        Secretary shall make direct payments under this section 
        to historic peanut producers.
            (2) Subsequent crop years.--For each of the 2003 
        through 2007 crop years for peanuts, the Secretary 
        shall make direct payments to the producers on a farm 
        to which a payment yield and base acres for peanuts are 
        assigned under section 1302.
    (b) Payment Rate.--The payment rate used to make direct 
payments with respect to peanuts for a crop year shall be equal 
to $36 per ton.
    (c) Payment Amount for 2002 Crop Year.--The amount of the 
direct payment to be paid to an historic peanut producer for 
the 2002 crop of peanuts shall be equal to the product of the 
following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres of the historic peanut 
        producer.
            (3) The average peanut yield determined under 
        section 1302(a)(1) for the historic peanut producer.
    (d) Payment Amount for Subsequent Crop Years.--The amount 
of the direct payment to be paid to the producers on a farm for 
the 2003 through 2007 crops of peanuts shall be equal to the 
product of the following:
            (1) The payment rate specified in subsection (b).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (e) Time for Payment.--
            (1) In general.--The Secretary shall make direct 
        payments--
                    (A) in the case of the 2002 crop year, as 
                soon as practicable after the date of enactment 
                of this Act; and
                    (B) in the case of each of the 2003 through 
                2007 crop years, not later than September 30 of 
                the calendar year in which the crop is 
                harvested.
            (2) Advance payments.--At the option of the 
        producers on a farm, up to 50 percent of the direct 
        payment for any of the 2003 through 2007 crop years 
        shall be paid to the producers in advance. The 
        producers shall select the month within which the 
        advance payment for a crop year will be made. The month 
        selected may be any month during the period beginning 
        on December 1 of the calendar year before the calendar 
        year in which the crop is harvested through the month 
        within which the direct payment would otherwise be 
        made. The producers may change the selected month for a 
        subsequent advance payment by providing advance notice 
        to the Secretary.
            (3) Repayment of advance payments.--If a producer 
        on a farm that receives an advance direct payment for a 
        crop year ceases to be a producer on that farm, or the 
        extent to which the producer shares in the risk of 
        producing a crop changes, before the date the remainder 
        of the direct payment is made, the producer shall be 
        responsible for repaying the Secretary the applicable 
        amount of the advance payment, as determined by the 
        Secretary.

SEC. 1304. AVAILABILITY OF COUNTER-CYCLICAL PAYMENTS FOR PEANUTS.

    (a) Payment Required.--
            (1) In general.--During the 2002 through 2007 crop 
        years for peanuts, the Secretary shall make counter-
        cyclical payments under this section with respect to 
        peanuts if the Secretary determines that the effective 
        price for peanuts is less than the target price for 
        peanuts.
            (2) 2002 crop year.--If counter-cyclical payments 
        are required for the 2002 crop year, the Secretary 
        shall make the payments to historic peanut producers.
            (3) Subsequent crop years.--If counter-cyclical 
        payments are required for any of the 2003 through 2007 
        crop years for peanuts, the Secretary shall make the 
        payments to the producers on a farm to which a payment 
        yield and base acres for peanuts are assigned under 
        section 1302.
    (b) Effective Price.--For purposes of subsection (a), the 
effective price for peanuts is equal to the sum of the 
following:
            (1) The higher of the following:
                    (A) The national average market price for 
                peanuts received by producers during the 12-
                month marketing year for peanuts, as determined 
                by the Secretary.
                    (B) The national average loan rate for a 
                marketing assistance loan for peanuts in effect 
                for the applicable period under this subtitle.
            (2) The payment rate in effect under section 1303 
        for the purpose of making direct payments.
    (c) Target Price.--For purposes of subsection (a), the 
target price for peanuts shall be equal to $495 per ton.
    (d) Payment Rate.--The payment rate used to make counter-
cyclical payments for a crop year shall be equal to the 
difference between--
            (1) the target price; and
            (2) the effective price determined under subsection 
        (b).
    (e) Payment Amount for 2002 Crop Year.--If counter-cyclical 
payments are required to be paid for the 2002 crop of peanuts, 
the amount of the counter-cyclical payment to be paid to an 
historic peanut producer for that crop year shall be equal to 
the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres of the historic peanut 
        producer.
            (3) The average peanut yield determined under 
        section 1302(a)(1) for the historic peanut producer.
    (f) Payment Amount for Subsequent Crop Years.--If counter-
cyclical payments are required to be paid for any of the 2003 
through 2007 crops of peanuts, the amount of the counter-
cyclical payment to be paid to the producers on a farm for that 
crop year shall be equal to the product of the following:
            (1) The payment rate specified in subsection (d).
            (2) The payment acres on the farm.
            (3) The payment yield for the farm.
    (g) Time for Payments.--
            (1) General rule.--If the Secretary determines 
        under subsection (a) that counter-cyclical payments are 
        required to be made under this section for a crop year, 
        the Secretary shall make the counter-cyclical payments 
        as soon as practicable after the end of the 12-month 
        marketing year for the crop.
            (2) Availability of partial payments.--If, before 
        the end of the 12-month marketing year, the Secretary 
        estimates that counter-cyclical payments will be 
        required under this section for a crop year, the 
        Secretary shall give producers on a farm (or, in the 
        case of the 2002 crop year, historic peanut producers) 
        the option to receive partial payments of the counter-
        cyclical payment projected to be made for that crop.
            (3) Time for partial payments.--
                    (A) 2002 through 2006 crop years.--When the 
                Secretary makes partial payments available 
                under paragraph (2) for any of the 2002 through 
                2006 crop years--
                            (i) the first partial payment for 
                        the crop year shall be made not earlier 
                        than October 1, and, to the maximum 
                        extent practicable, not later than 
                        October 31, of the calendar year in 
                        which the crop is harvested;
                            (ii) the second partial payment 
                        shall be made not earlier than February 
                        1 of the next calendar year; and
                            (iii) the final partial payment 
                        shall be made as soon as practicable 
                        after the end of the 12-month marketing 
                        year for that crop.
                    (B) 2007 crop year.--When the Secretary 
                makes partial payments available for the 2007 
                crop year--
                            (i) the first partial payment shall 
                        be made after completion of the first 6 
                        months of the marketing year for that 
                        crop; and
                            (ii) the final partial payment 
                        shall be made as soon as practicable 
                        after the end of the 12-month marketing 
                        year for that crop.
            (4) Amount of partial payments.--
                    (A) 2002 crop year.--
                            (i) First partial payment.--In the 
                        case of the 2002 crop year, the first 
                        partial payment under paragraph (3) to 
                        an historic peanut producer may not 
                        exceed 35 percent of the projected 
                        counter-cyclical payment for the crop 
                        year, as determined by the Secretary.
                            (ii) Second partial payment.--The 
                        second partial payment may not exceed 
                        the difference between--
                                    (I) 70 percent of the 
                                projected counter-cyclical 
                                payment (including any revision 
                                thereof) for the 2002 crop 
                                year; and
                                    (II) the amount of the 
                                payment made under clause (i).
                            (iii) Final payment.--The final 
                        payment shall be equal to the 
                        difference between--
                                    (I) the actual counter-
                                cyclical payment to be made to 
                                the historic peanut producer; 
                                and
                                    (II) the amount of the 
                                partial payments made to the 
                                historic peanut producer under 
                                clauses (i) and (ii).
                    (B) 2003 through 2006 crop years.--
                            (i) First partial payment.--For 
                        each of the 2003 through 2006 crop 
                        years, the first partial payment under 
                        paragraph (3) to the producers on a 
                        farm may not exceed 35 percent of the 
                        projected counter-cyclical payment for 
                        the crop year, as determined by the 
                        Secretary.
                            (ii) Second partial payment.--The 
                        second partial payment for a crop year 
                        may not exceed the difference between--
                                    (I) 70 percent of the 
                                projected counter-cyclical 
                                payment (including any revision 
                                thereof) for the crop year; and
                                    (II) the amount of the 
                                payment made under clause (i).
                            (iii) Final payment.--The final 
                        payment for a crop year shall be equal 
                        to the difference between--
                                    (I) the actual counter-
                                cyclical payment to be made to 
                                the producers for that crop 
                                year; and
                                    (II) the amount of the 
                                partial payments made to the 
                                producers under clauses (i) and 
                                (ii) for that crop year.
                    (C) 2007 crop year.--
                            (i) First partial payment.--For the 
                        2007 crop year, the first partial 
                        payment under paragraph (3) to the 
                        producers on a farm may not exceed 40 
                        percent of the projected counter-
                        cyclical payment for the crop year, as 
                        determined by the Secretary.
                            (ii) Final payment.--The final 
                        payment for the 2007 crop year shall be 
                        equal to the difference between--
                                    (I) the actual counter-
                                cyclical payment to be made to 
                                the producers for that crop 
                                year; and
                                    (II) the amount of the 
                                partial payment made to the 
                                producers under clause (i).
            (5) Repayment.--The producers on a farm (or, in the 
        case of the 2002 crop year, historic peanut producers) 
        that receive a partial payment under this subsection 
        for a crop year shall repay to the Secretary the 
        amount, if any, by which the total of the partial 
        payments exceed the actual counter-cyclical payment to 
        be made for that crop year.

SEC. 1305. PRODUCER AGREEMENT REQUIRED AS CONDITION ON PROVISION OF 
                    DIRECT PAYMENTS AND COUNTER-CYCLICAL PAYMENTS.

    (a) Compliance With Certain Requirements.--
            (1) Requirements.--Before the producers on a farm 
        may receive direct payments or counter-cyclical 
        payments under this subtitle with respect to the farm, 
        the producers shall agree, during the crop year for 
        which the payments are made and in exchange for the 
        payments--
                    (A) to comply with applicable conservation 
                requirements under subtitle B of title XII of 
                the Food Security Act of 1985 (16 U.S.C. 3811 
                et seq.);
                    (B) to comply with applicable wetland 
                protection requirements under subtitle C of 
                title XII of that Act (16 U.S.C. 3821 et seq.);
                    (C) to comply with the planting flexibility 
                requirements of section 1306;
                    (D) to use the land on the farm, in a 
                quantity equal to the attributable base acres 
                for peanuts and any base acres for the farm 
                under subtitle A, for an agricultural or 
                conserving use, and not for a nonagricultural 
                commercial or industrial use, as determined by 
                the Secretary; and
                    (E) to effectively control noxious weeds 
                and otherwise maintain the land in accordance 
                with sound agricultural practices, as 
                determined by the Secretary, if the 
                agricultural or conserving use involves the 
                noncultivation of any portion of the land 
                referred to in subparagraph (D).
            (2) Compliance.--The Secretary may issue such rules 
        as the Secretary considers necessary to ensure producer 
        compliance with the requirements of paragraph (1).
            (3) Modification.--At the request of the transferee 
        or owner, the Secretary may modify the requirements of 
        this subsection if the modifications are consistent 
        with the objectives of this subsection, as determined 
        by the Secretary.
    (b) Transfer or Change of Interest in Farm.--
            (1) Termination.--Except as provided in paragraph 
        (2), a transfer of (or change in) the interest of the 
        producers on a farm in the base acres for peanuts for 
        which direct payments or counter-cyclical payments are 
        made shall result in the termination of the payments 
        with respect to those acres, unless the transferee or 
        owner of the acreage agrees to assume all obligations 
        under subsection (a). The termination shall take effect 
        on the date determined by the Secretary.
            (2) Exception.--If a producer entitled to a direct 
        payment or counter-cyclical payment dies, becomes 
        incompetent, or is otherwise unable to receive the 
        payment, the Secretary shall make the payment, in 
        accordance with rules issued by the Secretary.
    (c) Acreage Reports.--As a condition on the receipt of 
direct payments, counter-cyclical payments, marketing 
assistance loans, or loan deficiency payments under this 
subtitle, the Secretary shall require the producers on a farm 
to which a payment yield and base acres for peanuts are 
assigned under section 1302 to submit to the Secretary annual 
acreage reports with respect to all cropland on the farm.
    (d) Tenants and Sharecroppers.--In carrying out this 
subtitle, the Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
    (e) Sharing of Payments.--The Secretary shall provide for 
the sharing of direct payments and counter-cyclical payments 
among the producers on a farm on a fair and equitable basis.

SEC. 1306. PLANTING FLEXIBILITY.

    (a) Permitted Crops.--Subject to subsection (b), any 
commodity or crop may be planted on the base acres for peanuts 
on a farm.
    (b) Limitations Regarding Certain Commodities.--
            (1) General limitation.--The planting of an 
        agricultural commodity specified in paragraph (2) shall 
        be prohibited on base acres for peanuts unless the 
        commodity, if planted, is destroyed before harvest.
            (2) Treatment of trees and other perennials.--The 
        planting of an agricultural commodity specified in 
        paragraph (3) that is produced on a tree or other 
        perennial plant shall be prohibited on base acres for 
        peanuts.
            (3) Covered agricultural commodities.--Paragraphs 
        (1) and (2) apply to the following agricultural 
        commodities:
                    (A) Fruits.
                    (B) Vegetables (other than lentils, mung 
                beans, and dry peas).
                    (C) Wild rice.
    (c) Exceptions.--Paragraphs (1) and (2) of subsection (b) 
shall not limit the planting of an agricultural commodity 
specified in paragraph (3) of that subsection--
            (1) in any region in which there is a history of 
        double-cropping of peanuts with agricultural 
        commodities specified in subsection (b)(3), as 
        determined by the Secretary, in which case the double-
        cropping shall be permitted;
            (2) on a farm that the Secretary determines has a 
        history of planting agricultural commodities specified 
        in subsection (b)(3) on the base acres for peanuts, 
        except that direct payments and counter-cyclical 
        payments shall be reduced by an acre for each acre 
        planted to such an agricultural commodity; or
            (3) by the producers on a farm that the Secretary 
        determines has an established planting history of a 
        specific agricultural commodity specified in subsection 
        (b)(3), except that--
                    (A) the quantity planted may not exceed the 
                average annual planting history of such 
                agricultural commodity by the producers on the 
                farm in the 1991 through 1995 or 1998 through 
                2001 crop years (excluding any crop year in 
                which no plantings were made), as determined by 
                the Secretary; and
                    (B) direct payments and counter-cyclical 
                payments shall be reduced by an acre for each 
                acre planted to such agricultural commodity.

SEC. 1307. MARKETING ASSISTANCE LOANS AND LOAN DEFICIENCY PAYMENTS FOR 
                    PEANUTS.

    (a) Nonrecourse Loans Available.--
            (1) Availability.--For each of the 2002 through 
        2007 crops of peanuts, the Secretary shall make 
        available to producers on a farm nonrecourse marketing 
        assistance loans for peanuts 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 subsection (b).
            (2) Eligible production.--The producers on a farm 
        shall be eligible for a marketing assistance loan under 
        this subsection for any quantity of peanuts produced on 
        the farm.
            (3) Treatment of certain commingled commodities.--
        In carrying out this subsection, the Secretary shall 
        make loans to producers on a farm that would be 
        eligible to obtain a marketing assistance loan, but for 
        the fact the peanuts owned by the producers on the farm 
        are commingled with other peanuts in facilities 
        unlicensed for the storage of agricultural commodities 
        by the Secretary or a State licensing authority, if the 
        producers obtaining the loan agree to immediately 
        redeem the loan collateral in accordance with section 
        166 of the Federal Agriculture Improvement and Reform 
        Act of 1996 (7 U.S.C. 7286).
            (4) Options for obtaining loan.--A marketing 
        assistance loan under this subsection, and loan 
        deficiency payments under subsection (e), may be 
        obtained at the option of the producers on a farm 
        through--
                    (A) a designated marketing association or 
                marketing cooperative of producers that is 
                approved by the Secretary; or
                    (B) the Farm Service Agency.
            (5) Storage of loan peanuts.--As a condition on the 
        Secretary's approval of an individual or entity to 
        provide storage for peanuts for which a marketing 
        assistance loan is made under this section, the 
        individual or entity shall agree--
                    (A) to provide such storage on a 
                nondiscriminatory basis; and
                    (B) to comply with such additional 
                requirements as the Secretary considers 
                appropriate to accomplish the purposes of this 
                section and promote fairness in the 
                administration of the benefits of this section.
            (6) Payment of peanut storage costs.--Effective for 
        the 2002 through 2006 crops of peanuts, to ensure 
        proper storage of peanuts for which a loan is made 
        under this section, the Secretary shall use the funds 
        of the Commodity Credit Corporation to pay storage, 
        handling, and other associated costs. This authority 
        terminates beginning with the 2007 crop of peanuts.
            (7) Marketing.--A marketing association or 
        cooperative may market peanuts for which a loan is made 
        under this section in any manner that conforms to 
        consumer needs, including the separation of peanuts by 
        type and quality.
    (b) Loan Rate.--The loan rate for a marketing assistance 
loan under for peanuts subsection (a) shall be equal to $355 
per ton.
    (c) Term of Loan.--
            (1) In general.--A marketing assistance loan for 
        peanuts under subsection (a) shall have a term of 9 
        months beginning on the first day of the first month 
        after the month in which the loan is made.
            (2) Extensions prohibited.--The Secretary may not 
        extend the term of a marketing assistance loan for 
        peanuts under subsection (a).
    (d) Repayment Rate.--
            (1) In general.--The Secretary shall permit 
        producers on a farm to repay a marketing assistance 
        loan for peanuts under subsection (a) at a rate that is 
        the lesser of--
                    (A) the loan rate established for peanuts 
                under subsection (b), plus interest (determined 
                in accordance with section 163 of the Federal 
                Agriculture Improvement and Reform Act of 1996 
                (7 U.S.C. 7283)); or
                    (B) a rate that the Secretary determines 
                will--
                            (i) minimize potential loan 
                        forfeitures;
                            (ii) minimize the accumulation of 
                        stocks of peanuts by the Federal 
                        Government;
                            (iii) minimize the cost incurred by 
                        the Federal Government in storing 
                        peanuts; and
                            (iv) allow peanuts produced in the 
                        United States to be marketed freely and 
                        competitively, both domestically and 
                        internationally.
            (2) Good faith exception to beneficial interest 
        requirement.--For the 2002 crop year only, in the case 
        of the producers on a farm that marketed or otherwise 
        lost beneficial interest in the peanuts for which a 
        marketing assistance loan was made under this section 
        before repaying the loan, the Secretary shall permit 
        the producers to repay the loan at the applicable 
        repayment rate that was in effect for peanuts under 
        this subsection on the date that the producers lost 
        beneficial interest, as determined by the Secretary, if 
        the Secretary determines the producers acted in good 
        faith.
    (e) Loan Deficiency Payments.--
            (1) Availability.--The Secretary may make loan 
        deficiency payments available to producers on a farm 
        that, although eligible to obtain a marketing 
        assistance loan for peanuts under subsection (a), agree 
        to forgo obtaining the loan for the peanuts in return 
        for loan deficiency payments under this subsection.
            (2) Computation.--A loan deficiency payment under 
        this subsection shall be computed by multiplying--
                    (A) the payment rate determined under 
                paragraph (3) for peanuts; by
                    (B) the quantity of the peanuts produced by 
                the producers, excluding any quantity for which 
                the producers obtain a marketing assistance 
                loan under subsection (a).
            (3) Payment rate.--For purposes of this subsection, 
        the payment rate shall be the amount by which--
                    (A) the loan rate established under 
                subsection (b); exceeds
                    (B) the rate at which a loan may be repaid 
                under subsection (d).
            (4) Effective date for payment rate 
        determination.--
                    (A) In general.--The Secretary shall 
                determine the amount of the loan deficiency 
                payment to be made under this subsection to the 
                producers on a farm with respect to a quantity 
                of peanuts using the payment rate in effect 
                under paragraph (3) as of the date the 
                producers request the payment.
                    (B) Special rule for 2002 crop year.--For 
                the 2002 crop year only, the Secretary shall 
                determine the amount of the loan deficiency 
                payment to be made under this subsection to the 
                producers on a farm with respect to a quantity 
                of peanuts using the payment rate in effect 
                under paragraph (3) as of the earlier of the 
                following:
                            (i) The date on which the producers 
                        marketed or otherwise lost beneficial 
                        interest in the crop, as determined by 
                        the Secretary.
                            (ii) The date the producers request 
                        the payment.
    (f) 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 that Act (16 U.S.C. 3821 et seq.) 
during the term of the loan.
    (g) Reimbursable Agreements and Payment of Administrative 
Expenses.--The Secretary may implement any reimbursable 
agreements or provide for the payment of administrative 
expenses under this subtitle only in a manner that is 
consistent with such activities in regard to other commodities.

SEC. 1308. MISCELLANEOUS PROVISIONS.

    (a) Mandatory Inspection.--All peanuts marketed in the 
United States shall be officially inspected and graded by 
Federal or Federal-State inspectors.
    (b) Termination of Peanut Administrative Committee.--The 
Peanut Administrative Committee established under Marketing 
Agreement No. 146 issued pursuant to the Agricultural 
Adjustment Act (7 U.S.C. 601 et seq.), reenacted with 
amendments by the Agricultural Marketing Agreement Act of 1937, 
is terminated.
    (c) Peanut Standards Board.--
            (1) Establishment and purpose.--The Secretary shall 
        establish a Peanut Standards Board for the purpose of 
        advising the Secretary regarding the establishment of 
        quality and handling standards for domestically 
        produced and imported peanuts.
            (2) Membership and appointment.--
                    (A) Total members.--The Board shall consist 
                of 18 members, with representation equally 
                divided between peanut producers and peanut 
                industry representatives.
                    (B) Appointment process for producers.--The 
                Secretary shall appoint--
                            (i) 3 producers from the Southeast 
                        (Alabama, Georgia, and Florida) peanut 
                        producing region;
                            (ii) 3 producers from the Southwest 
                        (Texas, Oklahoma, and New Mexico) 
                        peanut producing region; and
                            (iii) 3 producers from the 
                        Virginia/Carolina (Virginia and North 
                        Carolina) peanut producing region.
                    (C) Appointment process for industry 
                representatives.--The Secretary shall appoint 3 
                peanut industry representatives from each of 
                the 3 peanut producing regions in the United 
                States.
            (3) Terms.--
                    (A) In general.--A member of the Board 
                shall serve a 3-year term.
                    (B) Initial appointment.--In making the 
                initial appointments to the Board, the 
                Secretary shall stagger the terms of the 
                members so that--
                            (i) 1 producer member and peanut 
                        industry member from each peanut 
                        producing region serves a 1-year term;
                            (ii) 1 producer member and peanut 
                        industry member from each peanut 
                        producing region serves a 2-year term; 
                        and
                            (iii) 1 producer member and peanut 
                        industry member from each peanut 
                        producing region serves a 3-year term.
            (4) Consultation required.--The Secretary shall 
        consult with the Board in advance whenever the 
        Secretary establishes or changes, or considers the 
        establishment of or a change to, quality and handling 
        standards for peanuts.
            (5) Federal advisory committee act.--The Federal 
        Advisory Committee Act (5 U.S.C. App.) shall not apply 
        to the Board.
    (d) Priority.--The Secretary shall make identifying and 
combating the presence of all quality concerns related to 
peanuts a priority in the development of quality and handling 
standards for peanuts and in the inspection of domestically 
produced and imported peanuts. The Secretary shall consult with 
appropriate Federal and State agencies to provide adequate 
safeguards against all quality concerns related to peanuts.
    (e) Consistent Standards.--Imported peanuts shall be 
subject to the same quality and handling standards as apply to 
domestically produced peanuts.
    (f) Authorization of Appropriations.--
            (1) In general.--In addition to other funds that 
        are available to carry out this section, there is 
        authorized to be appropriated such sums as are 
        necessary to carry out this section.
            (2) Treatment of board expenses.--The expenses of 
        the Peanut Standards Board shall not be counted toward 
        any general limitation on the expenses of advisory 
        committees, panels, commissions, and task forces of the 
        Department of Agriculture, whether enacted before, on, 
        or after the date of enactment of this Act, unless the 
        limitation specifically refers to this paragraph and 
        specifically includes the Peanut Standards Board within 
        the general limitation.
    (g) Transition Rule.--
            (1) Temporary designation of peanut administrative 
        committee members.--Notwithstanding the appointment 
        process specified in subsection (c) for the Peanut 
        Standards Board, during the transition period, the 
        Secretary may designate persons serving as members of 
        the Peanut Administrative Committee on the day before 
        the date of enactment of this Act to serve as members 
        of the Peanut Standards Board for the purpose of 
        carrying out the duties of the Board described in this 
        section.
            (2) Funds.--The Secretary may transfer any funds 
        available to carry out the activities of the Peanut 
        Administrative Committee to the Peanut Standards Board 
        to carry out the duties of the Board described in this 
        section.
            (3) Transition period.--In paragraph (1), the term 
        ``transition period'' means the period beginning on the 
        date of enactment of this Act and ending on the earlier 
        of--
                    (A) the date the Secretary appoints the 
                members of the Peanut Standards Board pursuant 
                to subsection (c); or
                    (B) 180 days after the date of enactment of 
                this Act.
    (h) Effective Date.--This section shall take effect with 
the 2002 crop of peanuts.

SEC. 1309. TERMINATION OF MARKETING QUOTA PROGRAMS FOR PEANUTS AND 
                    COMPENSATION TO PEANUT QUOTA HOLDERS FOR LOSS OF 
                    QUOTA ASSET VALUE.

    (a) Repeal of Marketing Quota.--
            (1) Repeal.--Part VI of subtitle B of title III of 
        the Agricultural Adjustment Act of 1938 (7 U.S.C. 1357-
        1359a), relating to peanuts, is repealed.
            (2) Treatment of 2001 crop.--Part VI of subtitle B 
        of title III of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1357-1359a), as in effect on the day before 
        the date of enactment of this Act, shall continue to 
        apply with respect to the 2001 crop of peanuts 
        notwithstanding the amendment made by paragraph (1). 
        Section 1308(g)(2) shall also apply to the 2001 crop of 
        peanuts.
    (b) Compensation Contract Required.--
            (1) In general.--The Secretary shall offer to enter 
        into a contract with each person that the Secretary 
        determines is an eligible peanut quota holder under 
        subsection (f) for the purpose of providing 
        compensation for the lost value of the quota on account 
        of the repeal of the marketing quota program for 
        peanuts under subsection (a).
            (2) Payment period.--The Secretary shall make 
        payments under the contracts during fiscal years 2002 
        through 2006.
    (c) Time for Payment.--
            (1) Payment in installments.--The payments required 
        under the contracts shall be provided in 5 equal 
        installments not later than September 30 of each of 
        fiscal years 2002 through 2006.
            (2) Single payment.--At the request of an eligible 
        peanut quota holder entitled to payments under a 
        contract, the Secretary shall provide the entire 
        payment amount determined under subsection (d) with 
        respect to the eligible peanut quota holder for the 5 
        fiscal years in a single lump sum during the fiscal 
        year specified by the eligible peanut quota holder.
    (d) Payment Amount.--The amount of the payment for a fiscal 
year to an eligible peanut quota holder under a contract shall 
be equal to the product obtained by multiplying--
            (1) $0.11 per pound; by
            (2) the number of pounds of quota with respect to 
        which the person qualifies as a peanut quota holder 
        under subsection (f).
    (e) Assignment of Payments.--The provisions of section 8(g) 
of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 
590h(g)), relating to assignment of payments, shall apply to 
the payments made under the contracts. A person making an 
assignment of the payment, or the assignee, shall provide the 
Secretary with notice, in such manner as the Secretary may 
require, of any assignment made under this subsection.
    (f) Eligible Peanut Quota Holder.--
            (1) In general.--Except as otherwise provided in 
        this subsection, the Secretary shall consider a person 
        to be an eligible peanut quota holder for the purposes 
        of this section if the person, as of the date of 
        enactment of this Act, owned a farm that, also as of 
        that date, was eligible for a permanent peanut quota 
        under section 358-1(b) of the Agricultural Adjustment 
        Act of 1938 (7 U.S.C. 1358-1(b)), irrespective of 
        temporary leases, transfers of quotas for seed, or 
        quotas for experimental purposes.
            (2) Effect of purchase contract.--If there was a 
        written contract for the purchase of all or a portion 
        of a farm described in paragraph (1) as of the date of 
        enactment of this Act and the parties to the sale are 
        unable to agree to the disposition of eligibility for 
        payments under this section, the Secretary, taking into 
        account any incomplete permanent transfer of quota that 
        has otherwise been agreed to, shall provide for the 
        equitable division of the payments among the parties by 
        adjusting the determination of who is the eligible 
        peanut quota holder with respect to particular pounds 
        of the quota.
            (3) Effect of agreement for permanent quota 
        transfer.--If the Secretary determines that there was 
        in existence, as of the date of enactment of this Act, 
        an agreement for the permanent transfer of quota, but 
        that the transfer was not completed by that date, the 
        Secretary shall consider the peanut quota holder to be 
        the party to the agreement who, as of that date, was 
        the owner of the farm to which the quota was to be 
        transferred.
            (4) Protected bases.--A person that owns a farm 
        with a peanut poundage quota which is protected under a 
        conservation reserve program contract entered into 
        under section 1231 of the Food Security Act of 1985 (16 
        U.S.C. 3831) shall be considered to be an eligible 
        quota holder with respect to the protected poundage.
            (5) Secretarial discretion.--Notwithstanding the 
        preceding paragraphs, the Secretary may declare a 
        person to be the eligible peanut quota holder with 
        respect to certain pounds of quota or otherwise for 
        purposes of this section if the Secretary considers the 
        declaration is needed to insure a fair and equitable 
        administration of the payments provided for in this 
        section, so long as the Secretary does not, in 
        exercising this authority, effectively increase the 
        total quota in excess of the quota that was available 
        to all producers for the 2001 crop year for other than 
        seed or experimental use.
            (6) Limitation on quantity of quota held.--A person 
        shall be considered an eligible peanut quota holder for 
        purposes of this section only with respect to that 
        number of permanent pounds that qualifies the person as 
        a peanut quota holder under one of the preceding 
        paragraphs. The determination of the peanut poundage 
        amount for which the person qualifies shall be made 
        based on the 2001 crop quota levels and shalltake into 
account sales of the farm that occurred before the date of enactment of 
this Act and any permanent transfers of quota that took place before 
that date, consistent with the preceding paragraphs. The Secretary 
shall not take into account, or allow eligibility for, quotas for seed, 
granted as experimental quotas, or obtained by temporary lease or 
transfer.
    (g) Successions in Payment Eligibility and Attachment of 
Eligibility to Persons.--
            (1) Eligibility attaches to persons.--Once a person 
        is eligible for payments under this section, as 
        determined under subsection (f), the continued 
        eligibility of the person for the payments does not run 
        with a farm, but shall remain with the person for the 
        term of this section irrespective of whether the person 
        sells, or continues to have an interest in, the farm 
        that had the quota that qualified the person as an 
        eligible peanut quota holder under subsection (f) and 
        irrespective of whether the person has a continuing 
        interest in the production of peanuts.
            (2) Succession.--If a person eligible for payments 
        under this section dies, in the case of an individual, 
        or ceases to exist, in the case of other persons, the 
        payment eligibility of the person shall pass to the 
        person's personal or organizational successor, as 
        determined by the Secretary.
    (h) Conforming Amendments.--
            (1) Administrative provisions.--Section 361 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1361) is 
        amended by striking ``peanuts,''.
            (2) Adjustment of quotas.--Section 371 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1371) is 
        amended--
                    (A) in the first sentence of subsection 
                (a), by striking ``peanuts,''; and
                    (B) in the first sentence of subsection 
                (b), by striking ``peanuts''.
            (3) Reports and records.--Section 373 of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1373) is 
        amended--
                    (A) in the first sentence of subsection 
                (a)--
                            (i) by striking ``peanuts,'' each 
                        place it appears;
                            (ii) by inserting ``and'' after 
                        ``from producers,''; and
                            (iii) by striking ``for producers, 
                        all'' and all that follows through the 
                        period at the end of the sentence and 
                        inserting ``for producers.''; and
                    (B) in subsection (b), by striking 
                ``peanuts,''.
            (4) Eminent domain.--Section 378(c) of the 
        Agricultural Adjustment Act of 1938 (7 U.S.C. 1378(c)) 
        is amended in the first sentence--
                    (A) by striking ``cotton,'' and inserting 
                ``cotton and''; and
                    (B) by striking ``and peanuts,''.

SEC. 1310. REPEAL OF SUPERSEDED PRICE SUPPORT AUTHORITY AND EFFECT OF 
                    REPEAL.

    (a) Repeal of Price Support Authority.--
            (1) In general.--Section 155 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7271) is repealed.
            (2) Conforming amendments.--The Agricultural Act of 
        1949 (7 U.S.C. 1441 et seq.) is amended--
                    (A) in section 101(b) (7 U.S.C. 1441(b)), 
                by striking ``and peanuts''; and
                    (B) in section 408(c) (7 U.S.C. 1428(c)), 
                by striking ``peanuts,''.
            (3) Technical amendment.--The chapter heading of 
        chapter 2 of subtitle D of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. prec. 
        7271) is amended by striking ``PEANUTS AND''.
    (b) Disposal.--Notwithstanding any other provision of law 
or previous declaration made by the Secretary, the Secretary 
shall ensure that the disposal of all peanuts for which a loan 
for the 2001 crop of peanuts was made under section 155 of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7271) before the date of enactment of this Act is 
carried out in a manner that prevents price disruptions in the 
domestic and international markets for peanuts.
    (c) Treatment of Crop Insurance Policies for 2002 Crop 
Year.--
            (1) Applicability.--This subsection shall apply for 
        the 2002 crop year only notwithstanding any other 
        provision of law or crop insurance policy.
            (2) Price election.--The nonquota price election 
        for segregation I, II, and III peanuts shall be 17.75 
        cents per pound and shall be used for all aspects of 
        the policy relating to the calculations of premium, 
        liability, and indemnities.
            (3) Quality Adjustment.--For the purposes of 
        quality adjustment only, the average support price per 
        pound of peanuts shall be a price equal to 17.75 cents 
        per pound. Quality under the crop insurance policy for 
        peanuts shall be adjusted under procedures issued by 
        the Federal Crop Insurance Corporation.

                           Subtitle D--Sugar

SEC. 1401. SUGAR PROGRAM.

    (a) Extension and Modification of Existing Sugar Program.--
Section 156 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7272) is amended to read as follows:

``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) Loan Rate Adjustments.--
            ``(1) In general.--The Secretary may reduce the 
        loan rate specified in subsection (a) for domestically 
        grown sugarcane and subsection (b) for domestically 
        grown sugar beets if the Secretary determines that 
        negotiated reductions in export subsidies and domestic 
        subsidies provided for sugar of other major sugar 
        growing, producing, and exporting countries in the 
        aggregate exceed the commitments made as part of the 
        Agreement on Agriculture.
            ``(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)), or any amendatory or successor 
                agreement.
                    ``(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) Nonrecourse loans.--The Secretary shall carry 
        out this section through the use of nonrecourse loans.
            ``(2) Processor assurances.--
                    ``(A) In general.--The Secretary shall 
                obtain from each processor that receives a loan 
                under this section such assurances as the 
                Secretary considers adequate to ensure that the 
                processor will provide payments to producers 
                that are proportional to the value of the loan 
                received by the processor for the sugar beets 
                and sugarcane delivered by producers to the 
                processor.
                    ``(B) Minimum payments.--
                            ``(i) In general.--Subject to 
                        clause (ii), the Secretary may 
                        establish appropriate minimum payments 
                        for purposes of this paragraph.
                            ``(ii) Limitation.--In the case of 
                        sugar beets, the minimum payment 
                        established under clause (i) shall not 
                        exceed the rate of payment provided for 
                        under the applicable contract between a 
                        sugar beet producer and a sugar beet 
                        processor.
                            ``(iii) Effect of disaster.--The 
                        Secretary may not bar a beet sugar 
                        processor from eligibility to obtain a 
                        loan under this section because of the 
                        failure of the processor to provide the 
                        appropriate minimum payment established 
                        under this subsection if the failure--
                                    ``(I) occurred during a 
                                crop year prior to the date of 
                                enactment of the Farm Security 
                                and Rural Investment Act of 
                                2002; and
                                    ``(II) was related, at 
                                least in part, to the effects 
                                of a natural disaster, 
                                including damage from freeze.
            ``(3) Administration.--The Secretary may not impose 
        or enforce any prenotification requirement, or similar 
        administrative requirement not otherwise in effect on 
        the date of enactment of the Farm Security and Rural 
        Investment Act of 2002, that has the effect of 
        preventing a processor from electing to forfeit the 
        loan collateral (of an acceptable grade and quality) on 
        the maturity of the loan.
    ``(f) Loans for In-Process Sugar.--
            ``(1) Definition of in-process sugars and syrups.--
        In this subsection, the term `in-process sugars and 
        syrups' does not include raw sugar, liquid sugar, 
        invert sugar, invert syrup, or other finished product 
        that is otherwise eligible for a loan under subsection 
        (a) or (b).
            ``(2) Availability.--The Secretary shall make 
        nonrecourse loans available to processors of a crop of 
        domestically grown sugarcane and sugar beets for in-
        process sugars and syrups derived from the crop.
            ``(3) Loan rate.--The loan rate shall be equal to 
        80 percent of the loan rate applicable to raw cane 
        sugar or refined beet sugar, as determined by the 
        Secretary on the basis of the source material for the 
        in-process sugars and syrups.
            ``(4) Further processing on forfeiture.--
                    ``(A) In general.--As a condition of the 
                forfeiture of in-process sugars and syrups 
                serving as collateral for a loan under 
                paragraph (2), the processor shall, within such 
                reasonable time period as the Secretary may 
                prescribe and at no cost to the Commodity 
                Credit Corporation, convert the in-process 
                sugars and syrups into raw cane sugar or 
                refined beet sugar of acceptable grade and 
                quality for sugars eligible for loans under 
                subsection (a) or (b).
                    ``(B) Transfer to corporation.--Once the 
                in-process sugars and syrups are fully 
                processed into raw cane sugar or refined beet 
                sugar, the processor shall transfer the sugar 
                to the Commodity Credit Corporation.
                    ``(C) Payment to processor.--On transfer of 
                the sugar, the Secretary shall make a payment 
                to the processor in an amount equal to the 
                amount obtained by multiplying--
                            ``(i) the difference between--
                                    ``(I) the loan rate for raw 
                                cane sugar or refined beet 
                                sugar, as appropriate; and
                                    ``(II) the loan rate the 
                                processor received under 
                                paragraph (3); by
                            ``(ii) the quantity of sugar 
                        transferred to the Secretary.
            ``(5) Loan conversion.--If the processor does not 
        forfeit the collateral as described in paragraph (4), 
        but instead further processes the in-process sugars and 
        syrups into raw cane sugar or refined beet sugar and 
        repays the loan on the in-process sugars and syrups, 
        the processor may obtain a loan under subsection (a) or 
        (b) for the raw cane sugar or refined beet sugar, as 
        appropriate.
            ``(6) Term of loan.--The term of a loan made under 
        this subsection for a quantity of in-process sugars and 
        syrups, when combined with the term of a loan made with 
        respect to the raw cane sugar or refined beet sugar 
        derived from the in-process sugars and syrups, may not 
        exceed 9 months, consistent with subsection (d).
    ``(g) Avoiding Forfeitures; Corporation Inventory 
Disposition.--
            ``(1) In general.--Subject to subsection (e)(3), to 
        the maximum extent practicable, the Secretary shall 
        operate the program established under this section at 
        no cost to the Federal Government by avoiding the 
        forfeiture of sugar to the Commodity Credit 
        Corporation.
            ``(2) Inventory disposition.--
                    ``(A) In general.--To carry out paragraph 
                (1), the Commodity Credit Corporation may 
                accept bids to obtain raw cane sugar or refined 
                beet sugar in the inventory of the Commodity 
                Credit Corporation from (or otherwise make 
                available such commodities, on appropriate 
                terms and conditions, to) processors of 
                sugarcane and processors of sugar beets (acting 
                in conjunction with the producers of the 
                sugarcane or sugar beets processed by the 
                processors) in return for the reduction of 
                production of raw cane sugar or refined beet 
                sugar, as appropriate.
                    ``(B) Additional authority.--The authority 
                provided under this paragraph is in addition to 
                any authority of the Commodity Credit 
                Corporation under any other law.
    ``(h) Information Reporting.--
            ``(1) Duty of processors and refiners to report.--A 
        sugarcane processor, cane sugar refiner, and sugar beet 
        processor shall furnish the Secretary, on a monthly 
        basis, such information as the Secretary may require to 
        administer sugar programs, including the quantity of 
        purchases of sugarcane, sugar beets, and sugar, and 
        production, importation, distribution, and stock levels 
        of sugar.
            ``(2) Duty of producers to report.--
                    ``(A) Proportionate share states.--As a 
                condition of a loan made to a processor for the 
                benefit of a producer, the Secretary shall 
                require each producer of sugarcane located in a 
                State (other than the Commonwealth of Puerto 
                Rico) in which there are in excess of 250 
                producers of sugarcane to report, in the manner 
                prescribed by the Secretary, the sugarcane 
                yields and acres planted to sugarcane of the 
                producer.
                    ``(B) Other states.--The Secretary may 
                require each producer of sugarcane or sugar 
                beets not covered by subparagraph (A) to 
                report, in a manner prescribed by the 
                Secretary, the yields of, and acres planted to, 
                sugarcane or sugar beets, respectively, of the 
                producer.
            ``(3) Duty of importers to report.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall require 
                an importer of sugars, syrups, or molasses to 
                be used for human consumption or to be used for 
                the extraction of sugar for human consumption 
                to report, in the manner prescribed by the 
                Secretary, the quantities of the products 
                imported by the importer and the sugar content 
                or equivalent of the products.
                    ``(B) Tariff-rate quotas.--Subparagraph (A) 
                shall not apply to sugars, syrups, or molasses 
                that are within the quantities of tariff-rate 
                quotas that are subject to the lower rate of 
                duties.
            ``(4) Penalty.--Any person willfully failing or 
        refusing to furnish the information, or furnishing 
        willfully any false information, shall be subject to a 
        civil penalty of not more than $10,000 for each such 
        violation.
            ``(5) Monthly reports.--Taking into consideration 
        the information received under this subsection, the 
        Secretary shall publish on a monthly basis composite 
        data on production, imports, distribution, and stock 
        levels of sugar.
    ``(i) Substitution of Refined Sugar.--For purposes of 
Additional U.S. Note 6 to chapter 17 of the Harmonized Tariff 
Schedule of the United States and the reexport programs and 
polyhydric alcohol program administered by the Secretary, all 
refined sugars (whether derived from sugar beets or sugarcane) 
produced by cane sugar refineries and beet sugar processors 
shall be fully substitutable for the export of sugar and sugar-
containing products under those programs.
    ``(j) Effective Period.--This section shall be effective 
only for the 1996 through 2007 crops of sugar beets and 
sugarcane.''.
    (b) Effective Date of Assessment Termination.--Subsection 
(f) of section 156 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7272(f)), as in effect immediately 
before the enactment of the Farm Security and Rural Investment 
Act of 2002, is deemed to have been repealed effective as of 
October 1, 2001.
    (c) Interest Rate.--Section 163 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7283) is amended--
            (1) by inserting ``(a) In General.--'' before 
        ``Notwithstanding''; and
            (2) by adding at the end the following:
    ``(b) Sugar.--For purposes of this section, raw cane sugar, 
refined beet sugar, and in-process sugar eligible for a loan 
under section 156 shall not be considered an agricultural 
commodity.''.

SEC. 1402. STORAGE FACILITY LOANS.

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

SEC. 1403. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    Part VII of subtitle B of title III of the Agricultural 
Adjustment Act of 1938 (7 U.S.C. 359aa et seq.) is amended to 
read as follows:

          ``PART VII--FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR

``SEC. 359A. DEFINITIONS.

    ``In this part:
            ``(1) Mainland state.--The term `mainland State' 
        means a State other than an offshore State.
            ``(2) Offshore state.--The term `offshore State' 
        means a sugarcane producing State located outside of 
        the continental United States.
            ``(3) State.--Notwithstanding section 301, the term 
        `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia; and
                    ``(C) the Commonwealth of Puerto Rico.
            ``(4) United states.--The term `United States', 
        when used in a geographical sense, means all of the 
        States.

``SEC. 359B. FLEXIBLE MARKETING ALLOTMENTS FOR SUGAR.

    ``(a) Sugar Estimates.--
            ``(1) In general.--Not later than August 1 before 
        the beginning of each of the 2002 through 2007 crop 
        years, the Secretary shall estimate--
                    ``(A) the quantity of sugar that will be 
                consumed in the United States during the crop 
                year;
                    ``(B) the quantity of sugar that would 
                provide for reasonable carryover stocks;
                    ``(C) the quantity of sugar that will be 
                available from carry-in stocks for consumption 
                in the United States during the crop year;
                    ``(D) the quantity of sugar that will be 
                available from the domestic processing of 
                sugarcane and sugar beets; and
                    ``(E) the quantity of sugars, syrups, and 
                molasses that will be imported for human 
                consumption or to be used for the extraction of 
                sugar for human consumption in the United 
                States during the crop year, whether such 
                articles are under a tariff-rate quota or are 
                in excess or outside of a tariff-rate quota.
            ``(2) Exclusion.--The estimates under this 
        subsection shall not apply to sugar imported for the 
        production of polyhydric alcohol or to any sugar 
        refined and reexported in refined form or in products 
        containing sugar.
            ``(3) Reestimates.--The Secretary shall make 
        reestimates of sugar consumption, stocks, production, 
        and imports for a crop year as necessary, but no later 
        than the beginning of each of the second through fourth 
        quarters of the crop year.
    ``(b) Sugar Allotments.--
            ``(1) In general.--By the beginning of each crop 
        year, the Secretary shall establish for that crop year 
        appropriate allotments under section 359c for the 
        marketing by processors of sugar processed from sugar 
        beets and from domestically produced sugarcane at a 
        level that the Secretary estimates will result in no 
        forfeitures of sugar to the Commodity Credit 
        Corporation under the loan program for sugar 
        established under section 156 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (7 
        U.S.C. 7272).
            ``(2) Products.--The Secretary may include sugar 
        products, whose majority content is sucrose for human 
        consumption, derived from sugarcane, sugar beets, 
        molasses, or sugar in the allotments under paragraph 
        (1) if the Secretary determines it to be appropriate 
        for purposes of this part.
    ``(c) Prohibitions.--
            ``(1) In general.--During any crop year or portion 
        thereof for which marketing allotments have been 
        established, no processor of sugar beets or sugarcane 
        shall market a quantity of sugar in excess of the 
        allocation established for such processor, except to 
        enable another processor to fulfill an allocation 
        established for such other processor or to facilitate 
        the exportation of such sugar.
            ``(2) Civil penalty.--Any processor who knowingly 
        violates paragraph (1) shall be liable to the Commodity 
        Credit Corporation for a civil penalty in an amount 
        equal to 3 times the United States market value, at the 
        time of the commission of the violation, of that 
        quantity of sugar involved in the violation.
            ``(3) Definition of market.--For purposes of this 
        part, the term `market' shall mean to sell or otherwise 
        dispose of in commerce in the United States (including 
        the forfeiture of sugar under the loan program for 
        sugar under section 156 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 7272) and, 
        with respect to any integrated processor and refiner, 
        the movement of raw cane sugar into the refining 
        process).

``SEC. 359C. ESTABLISHMENT OF FLEXIBLE MARKETING ALLOTMENTS.

    ``(a) In General.--The Secretary shall establish flexible 
marketing allotments for sugar for any crop year in which the 
allotments are required under section 359b(b) in accordance 
with this section.
    ``(b) Overall Allotment Quantity.--
            ``(1) In general.--The Secretary shall establish 
        the overall quantity of sugar to be allotted for the 
        crop year (in this part referred to as the `overall 
        allotment quantity') by deducting from the sum of the 
        estimated sugar consumption and reasonable carryover 
        stocks (at the end of the crop year) for the crop year, 
        as determined under section 359b(a)--
                    ``(A) 1,532,000 short tons, raw value; and
                    ``(B) carry-in stocks of sugar, including 
                sugar in Commodity Credit Corporation 
                inventory.
            ``(2) Adjustment.--The Secretary shall adjust the 
        overall allotment quantity to avoid the forfeiture of 
        sugar to the Commodity Credit Corporation.
    ``(c) Marketing Allotment for Sugar Derived from Sugar 
Beets and Sugar Derived from Sugarcane.--The overall allotment 
quantity for the crop year shall be allotted between--
            ``(1) sugar derived from sugar beets by 
        establishing a marketing allotment for a crop year at a 
        quantity equal to the product of multiplying the 
        overall allotment quantity for the crop year by 54.35 
        percent; and
            ``(2) sugar derived from sugarcane by establishing 
        a marketing allotment for a crop year at a quantity 
        equal to the product of multiplying the overall 
        allotment quantity for the crop year by 45.65 percent.
    ``(d) Filling Cane Sugar and Beet Sugar Allotments.--
            ``(1) Cane sugar.--Each marketing allotment for 
        cane sugar established under this section may only be 
        filled with sugar processed from domestically grown 
        sugarcane.
            ``(2) Beet sugar.--Each marketing allotment for 
        beet sugar established under this section may only be 
        filled with sugar domestically processed from sugar 
        beets.
    ``(e) State Cane Sugar Allotments.--
            ``(1) In general.--The allotment for sugar derived 
        from sugarcane shall be further allotted, among the 
        States in the United States in which sugarcane is 
        produced, after a hearing (if requested by the affected 
        sugarcane processors and growers) and on such notice as 
        the Secretary by regulation may prescribe, in a fair 
        and equitable manner as provided in this subsection and 
        section 359d(b)(1)(D).
            ``(2) Offshore allotment.--
                    ``(A) Collectively.--Prior to the allotment 
                of sugar derived from sugarcane to any other 
                State, 325,000 short tons, raw value shall be 
                allotted to the offshore States.
                    ``(B) Individually.--The collective 
                offshore State allotment provided for under 
                subparagraph (A) shall be furtherallotted among 
the offshore States in which sugarcane is produced, after a hearing (if 
requested by the affected sugarcane processors and growers) and on such 
notice as the Secretary by regulation may prescribe, in a fair and 
equitable manner on the basis of--
                            ``(i) past marketings of sugar, 
                        based on the average of the 2 highest 
                        years of production of raw cane sugar 
                        from the 1996 through 2000 crops;
                            ``(ii) the ability of processors to 
                        market the sugar covered under the 
                        allotments for the crop year; and
                            ``(iii) past processings of sugar 
                        from sugarcane, based on the 3-year 
                        average of the 1998 through 2000 crop 
                        years.
            ``(3) Mainland allotment.--The allotment for sugar 
        derived from sugarcane, less the amount provided for 
        under paragraph (2), shall be allotted among the 
        mainland States in the United States in which sugarcane 
        is produced, after a hearing (if requested by the 
        affected sugarcane processors and growers) and on such 
        notice as the Secretary by regulation may prescribe, in 
        a fair and equitable manner on the basis of--
                    ``(A) past marketings of sugar, based on 
                the average of the 2 highest years of 
                production of raw cane sugar from the 1996 
                through 2000 crops;
                    ``(B) the ability of processors to market 
                the sugar covered under the allotments for the 
                crop year; and
                    ``(C) past processings of sugar from 
                sugarcane, based on the 3 crop years with the 
                greatest processings (in the mainland States 
                collectively) during the 1991 through 2000 crop 
                years.
    ``(f) Filling Cane Sugar Allotments.--Except as provided in 
section 359e, a State cane sugar allotment established under 
subsection (e) for a crop year may be filled only with sugar 
processed from sugarcane grown in the State covered by the 
allotment.
    ``(g) Adjustment of Marketing Allotments.--
            ``(1) In general.--The Secretary shall, based on 
        reestimates under section 359b(a)(3), adjust upward or 
        downward marketing allotments in a fair and equitable 
        manner, as the Secretary determines appropriate, to 
        reflect changes in estimated sugar consumption, stocks, 
        production, or imports.
            ``(2) Allocation to processors.--In the case of any 
        increase or decrease in an allotment, each allocation 
        to a processor of the allotment under section 359d, and 
        each proportionate share established with respect to 
        the allotment under section 359f(c), shall be increased 
        or decreased by the same percentage that the allotment 
        is increased or decreased.
            ``(3) Carry-over of reductions.--Whenever a 
        marketing allotment for a crop year is required to be 
        reduced during the crop year under this subsection, if, 
        at the time of the reduction, the quantity of sugar 
        marketed exceeds the processor's reduced allocation, 
        the allocation of an allotment next established for the 
        processor shall be reduced by the quantity of the 
        excess sugar marketed.
    ``(h) Suspension of Allotments.--Whenever the Secretary 
estimates or reestimates under section 359b(a), or has reason 
to believe, that imports of sugars, syrups or molasses for 
human consumption or to be used for the extraction of sugar for 
human consumption, whether under a tariff-rate quota or in 
excess or outside of a tariff-rate quota, will exceed 1,532,000 
short tons (raw value equivalent) (excluding any imports 
attributable to reassignment under paragraph (1)(D) or (2)(C) 
of section 359e(b)), and that the imports would lead to a 
reduction of the overall allotment quantity, the Secretary 
shall suspend the marketing allotments established under this 
section until such time as the imports have been restricted, 
eliminated, or reduced to or below the level of 1,532,000 short 
tons (raw value equivalent).

``SEC. 359D. ALLOCATION OF MARKETING ALLOTMENTS.

    ``(a) Allocation to Processors.--Whenever marketing 
allotments are established for a crop year under section 359c, 
in order to afford all interested persons an equitable 
opportunity to market sugar under an allotment, the Secretary 
shall allocate each such allotment among the processors covered 
by the allotment.
    ``(b) Hearing and Notice.--
            ``(1) Cane sugar.--
                    ``(A) In general.--The Secretary shall make 
                allocations for cane sugar after a hearing, if 
                requested by the affected sugarcane processors 
                and growers, and on such notice as the 
                Secretary by regulation may prescribe, in such 
                manner and in such quantities as to provide a 
                fair, efficient, and equitable distribution of 
                the allocations under this paragraph. Each such 
                allocation shall be subject to adjustment under 
                section 359c(g).
                    ``(B) Multiple processor states.--Except as 
                provided in subparagraphs (C) and (D), the 
                Secretary shall allocate the allotment for cane 
                sugar among multiple cane sugar processors in a 
                single State based on--
                            ``(i) past marketings of sugar, 
                        based on the average of the 2 highest 
                        years of production of raw cane sugar 
                        from among the 1996 through 2000 crops;
                            ``(ii) the ability of processors to 
                        market sugar covered by that portion of 
                        the allotment allocated for the crop 
                        year; and
                            ``(iii) past processings of sugar 
                        from sugarcane, based on the average of 
                        the 3 highest years of production 
                        during the 1996 through 2000 crop 
                        years.
                    ``(C) Talisman processing facility.--In the 
                case of allotments under subparagraph (B) 
                attributable to the operations of the Talisman 
                processing facility before the date of 
                enactment of this subparagraph, the Secretary 
                shall allocate the allotment among processors 
                in the State under subparagraph (A) in 
                accordance with the agreements of March 25 and 
                26, 1999, between the affected processors and 
                the Secretary of the Interior.
                    ``(D) Proportionate share states.--In the 
                case of States subject to section 359f(c), the 
                Secretary shall allocate the allotment for cane 
                sugar among multiple cane sugar processors in a 
                single State based on--
                            ``(i) past marketings of sugar, 
                        based on the average of the 2 highest 
                        years of production of raw cane sugar 
                        from among the 1997 through 2001 crop 
                        years;
                            ``(ii) the ability of processors to 
                        market sugar covered by that portion of 
                        the allotments allocated for the crop 
                        year; and
                            ``(iii) past processings of sugar 
                        from sugarcane, based on the average of 
                        the 2 highest crop years of crop 
                        production during the 1997 through 2001 
                        crop years.
                    ``(E) New entrants.--
                            ``(i) In general.--Notwithstanding 
                        subparagraphs (B) and (D), the 
                        Secretary, on application of any 
                        processor that begins processing 
                        sugarcane on or after the date of 
                        enactment of this subparagraph, and 
                        after a hearing (if requested by the 
                        affected sugarcane processors and 
                        growers) and on such notice as the 
                        Secretary by regulation may prescribe, 
                        may provide the processor with an 
                        allocation that provides a fair, 
                        efficient and equitable distribution of 
                        the allocations from the allotment for 
                        the State in which the processor is 
                        located.
                            ``(ii) Proportionate share 
                        states.--In the case of proportionate 
                        share States, the Secretary shall 
                        establish proportionate shares in a 
                        quantity sufficient to produce the 
                        sugarcane required to satisfy the 
                        allocations.
                            ``(iii) Limitations.--The allotment 
                        for a new processor under this 
                        subparagraph shall not exceed--
                                    ``(I) in the case of the 
                                first crop year of operation of 
                                a new processor, 50,000 short 
                                tons (raw value); and
                                    ``(II) in the case of each 
                                subsequent crop year of 
                                operation of the new processor, 
                                a quantity established by the 
                                Secretary in accordance with 
                                this subparagraph and the 
                                criteria described in 
                                subparagraph (B) or (D), as 
                                applicable.
                            ``(iv) New entrant states.--
                                    ``(I) In general.--
                                Notwithstanding subparagraphs 
                                (A) and (C) of section 
                                359c(e)(3), to accommodate an 
                                allocation under clause (i) to 
                                a new processor located in a 
                                new entrant mainland State, the 
                                Secretary shall provide the new 
                                entrant mainland State with an 
                                allotment.
                                    ``(II) Effect on other 
                                allotments.--The allotment to 
                                any new entrant mainland State 
                                shall be subtracted, on a pro 
                                rata basis, from the allotments 
                                otherwise allotted to each 
                                mainland State under section 
                                359c(e)(3).
                            ``(v) Adverse effects.--Before 
                        providing an initial processor 
                        allocation or State allotment to a new 
                        entrant processor or a new entrant 
                        State under this subparagraph, the 
                        Secretary shall take into consideration 
                        any adverse effects that the provision 
                        of the allocation or allotment may have 
                        on existing cane processors and 
                        producers in mainland States.
                            ``(vi) Ability to market.--
                        Consistent with section 359c and this 
                        section, any processor allocation or 
                        State allotment made to a new entrant 
                        processor or to a new entrant State 
                        under this subparagraph shall be 
                        provided only after the applicant 
                        processor, or the applicable processors 
                        in the State, have demonstrated the 
                        ability to process, produce, and market 
                        (including the transfer or delivery of 
                        the raw cane sugar to a refinery for 
                        further processing or marketing) raw 
                        cane sugar for the crop year for which 
                        the allotment is applicable.
                            ``(vii) Prohibition.--Not more than 
                        1 processor allocation provided under 
                        this subparagraph may be applicable to 
                        any individual sugar processing 
                        facility.
                    ``(F) Transfer of ownership.--Except as 
                otherwise provided in section 359f(c)(8), if a 
                sugarcane processor is sold or otherwise 
                transferred to another owner or is closed as 
                part of an affiliated corporate group 
                processing consolidation, the Secretary shall 
                transfer the allotment allocation for the 
                processor to the purchaser, new owner, 
                successor in interest, or any remaining 
                processor of an affiliated entity, as 
                applicable, of the processor.
            ``(2) Beet sugar.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph and sections 
                359c(g), 359e(b), and 359f(b), the Secretary 
                shall make allocations for beet sugar among 
                beet sugar processors for each crop year that 
                allotments are in effect on the basis of the 
                adjusted weighted average quantity of beet 
                sugar produced by the processors for each of 
                the 1998 through 2000 crop years, as determined 
                under this paragraph.
                    ``(B) Quantity.--The quantity of an 
                allocation made for a beet sugar processor for 
                a crop year under subparagraph (A) shall bear 
                the same ratio to the quantity of allocations 
                made for all beet sugar processors for the crop 
                year as the adjusted weighted average quantity 
                of beet sugar produced by the processor (as 
                determined under subparagraphs (C) and (D)) 
                bears to the total of the adjusted weighted 
                average quantities of beet sugar produced by 
                all processors (as so determined).
                    ``(C) Weighted average quantity.--Subject 
                to subparagraph (D), the weighted quantity of 
                beet sugar produced by a beet sugar processor 
                during each of the 1998 through 2000 crop years 
                shall be (as determined by the Secretary)--
                            ``(i) in the case of the 1998 crop 
                        year, 25 percent of the quantity of 
                        beet sugar produced by the processor 
                        during the crop year;
                            ``(ii) in the case of the 1999 crop 
                        year, 35 percent of the quantity of 
                        beet sugar produced by the processor 
                        during the crop year; and
                            ``(iii) in the case of the 2000 
                        crop year, 40 percent of the quantity 
                        of beet sugar produced by the processor 
                        (including any quantity of sugar 
                        received from the Commodity Credit 
                        Corporation) during the crop year.
                    ``(D) Adjustments.--
                            ``(i) In general.--The Secretary 
                        shall adjust the weighted average 
                        quantity of beet sugar produced by a 
                        beet sugar processor during the 1998 
                        through 2000 crop years under 
                        subparagraph (C) if the Secretary 
                        determines that the processor--
                                    ``(I) during the 1996 
                                through 2000 crop years, opened 
                                a sugar beet processing 
                                factory;
                                    ``(II) during the 1998 
                                through 2000 crop years, closed 
                                a sugar beet processing 
                                factory;
                                    ``(III) during the 1998 
                                through 2000 crop years, 
                                constructed a molasses 
                                desugarization facility; or
                                    ``(IV) during the 1998 
                                through 2000 crop years, 
                                suffered substantial quality 
                                losses on sugar beets stored 
                                during any such crop year.
                            ``(ii) Quantity.--The quantity of 
                        beet sugar produced by a beet sugar 
                        processor under subparagraph (C) shall 
                        be--
                                    ``(I) in the case of a 
                                processor that opened a sugar 
                                beet processing factory, 
                                increased by 1.25 percent of 
                                the total of the adjusted 
                                weighted average quantities of 
                                beet sugar produced by all 
                                processors during the 1998 
                                through 2000 crop years 
                                (without consideration of any 
                                adjustment under this 
                                subparagraph) for each sugar 
                                beet processing factory that is 
                                opened by the processor;
                                    ``(II) in the case of a 
                                processor that closed a sugar 
                                beet processing factory, 
                                decreased by 1.25 percent of 
                                the total of the adjusted 
                                weighted average quantities of 
                                beet sugar produced by all 
                                processors during the 1998 
                                through 2000 crop years 
                                (without consideration of any 
                                adjustment under this 
                                subparagraph) for each sugar 
                                beet processing factory that is 
                                closed by the processor;
                                    ``(III) in the case of a 
                                processor that constructed a 
                                molasses desugarization 
                                facility, increased by 0.25 
                                percent of the total of the 
                                adjusted weighted average 
                                quantities of beet sugar 
                                produced by all processors 
                                during the 1998 through 2000 
                                crop years (without 
                                consideration of any adjustment 
                                under this subparagraph) for 
                                each molasses desugarization 
                                facility that is constructed by 
                                the processor; and
                                    ``(IV) in the case of a 
                                processor that suffered 
                                substantial quality losses on 
                                stored sugar beets, increased 
                                by 1.25 percent of the total of 
                                the adjusted weighted average 
                                quantities of beet sugar 
                                produced by all processors 
                                during the 1998 through 2000 
                                crop years (without 
                                consideration of any adjustment 
                                under this subparagraph).
                    ``(E) Permanent termination of operations 
                of a processor.--If a processor of beet sugar 
                has been dissolved, liquidated in a bankruptcy 
                proceeding, or otherwise has permanently 
                terminated operations (other than in 
                conjunction with a sale or other disposition of 
                the processor or the assets of the processor), 
                the Secretary shall--
                            ``(i) eliminate the allocation of 
                        the processor provided under this 
                        section; and
                            ``(ii) distribute the allocation to 
                        other beet sugar processors on a pro 
                        rata basis.
                    ``(F) Sale of all assets of a processor to 
                another processor.--If a processor of beet 
                sugar (or all of the assets of the processor) 
                is sold to another processor of beet sugar, the 
                Secretary shall transfer the allocation of the 
                seller to the buyer unless the allocation has 
                been distributed to other sugar beet processors 
                under subparagraph (E).
                    ``(G) Sale of factories of a processor to 
                another processor.--
                            ``(i) In general.--Subject to 
                        subparagraphs (E) and (F), if 1 or more 
                        factories of a processor of beet sugar 
                        (but not all of the assets of the 
                        processor) are sold to another 
                        processor of beet sugar during a crop 
                        year, the Secretary shall assign a pro 
                        rata portion of the allocation of the 
                        seller to the allocation of the buyer 
                        to reflect the historical contribution 
                        of the production of the sold factory 
                        or factories to the total allocation of 
                        the seller.
                            ``(ii) Application of allocation.--
                        The assignment of the allocation under 
                        clause (i) shall apply--
                                    ``(I) during the remainder 
                                of the crop year during which 
                                the sale described in clause 
                                (i) occurs (referred to in this 
                                subparagraph as the `initial 
                                crop year'); and
                                    ``(II) each subsequent crop 
                                year (referred in this 
                                subparagraph as a `subsequent 
                                crop year'), subject to clause 
                                (iii).
                            ``(iii) Subsequent crop years.--
                                    ``(I) In general.--The 
                                assignment of the allocation 
                                under clause (i) shall apply 
                                during each subsequent crop 
                                year unless the acquired 
                                factory or factories continue 
                                in operation for less than the 
                                initial crop year and the first 
                                subsequent crop year.
                                    ``(II) Reassignment.--If 
                                the acquired factory or 
                                factories do not continue in 
                                operation for the complete 
                                initial crop year and the first 
                                subsequent crop year, the 
                                Secretary shall reassign the 
                                temporary allocation to other 
                                processors of beet sugar on a 
                                pro rata basis.
                            ``(iv) Use of other factories to 
                        fill allocation.--If the transferred 
                        allocation to the buyer for the 
                        purchased factory or factories cannot 
                        be filled by the production of the 
                        purchased factory or factories for the 
                        initial crop year or a subsequent crop 
                        year, the remainder of the transferred 
                        allocation may be filled by beet sugar 
                        produced by the buyer from other 
                        factories of the buyer.
                    ``(H) New entrants starting production or 
                reopening factories.--
                            ``(i) In general.--Except as 
                        provided by clause (ii), if an 
                        individual or entity that does not have 
                        an allocation of beet sugar under this 
                        part (referred to in this paragraph as 
                        a `new entrant') starts processing 
                        sugar beets after the date of enactment 
                        of this subparagraph, or acquires and 
                        reopens a factory that produced beet 
                        sugar during previous crop years that 
                        (at the time of acquisition) has no 
                        allocation associated with the factory 
                        under this part, the Secretary shall--
                                    ``(I) assign an allocation 
                                for beet sugar to the new 
                                entrant that provides a fair 
                                and equitable distribution of 
                                the allocations for beet sugar; 
                                and
                                    ``(II) reduce the 
                                allocations for beet sugar of 
                                all other processors on a pro 
                                rata basis to reflect the new 
                                allocation.
                            ``(ii) Exception.--If a new entrant 
                        acquires and reopens a factory that 
                        previously produced beet sugar from 
                        sugar beets and from sugar beet 
                        molasses but the factory last processed 
                        sugar beets during the 1997 crop year 
                        and the new entrant starts to process 
                        sugar beets at such factory after the 
                        date of enactment of this clause, the 
                        Secretary shall--
                                    ``(I) assign an allocation 
                                for beet sugar to the new 
                                entrant that is not less than 
                                the greater of 1.67 percent of 
                                the total of the adjusted 
                                weighted average quantities of 
                                beet sugar produced by all 
                                processors during the 1998 
                                through 2000 crop years as 
                                determined under subsection 
                                (b)(2)(C), or 1,500,000 
                                hundredweights; and
                                    ``(II) reduce the 
                                allocations for beet sugar of 
                                all other processors on a pro 
                                rata basis to reflect the new 
                                allocation.
                    ``(I) New entrants acquiring ongoing 
                factories with production history.--If a new 
                entrant acquires a factory that has production 
                history during the period of the 1998 through 
                2000 crop years and that is producing beet 
                sugar at the time the allocations are made from 
                a processor that has an allocation of beet 
                sugar, the Secretary shall transfer a portion 
                of the allocation of the seller to the new 
                entrant to reflect the historical contribution 
                of the production of the sold factory to the 
                total allocation of the seller.

``SEC. 359E. REASSIGNMENT OF DEFICITS.

    ``(a) Estimates of Deficits.--At any time allotments are in 
effect under this part, the Secretary, from time to time, shall 
determine whether (in view of then-current inventories of 
sugar, the estimated production of sugar and expected 
marketings, and other pertinent factors) any processor of 
sugarcane will be unable to market the sugar covered by the 
portion of the State cane sugar allotment allocated to the 
processor and whether any processor of sugar beets will be 
unable to market sugar covered by the portion of the beet sugar 
allotment allocated to the processor.
    ``(b) Reassignment of Deficits.--
            ``(1) Cane sugar.--If the Secretary determines that 
        any sugarcane processor who has been allocated a share 
        of a State cane sugar allotment will be unable to 
        market the processor's allocation of the State's 
        allotment for the crop year--
                    ``(A) the Secretary first shall reassign 
                the estimated quantity of the deficit to the 
                allocations for other processors within that 
                State, depending on the capacity of each other 
                processor to fill the portion of the deficit to 
                be assigned to it and taking into account the 
                interests of producers served by the 
                processors;
                    ``(B) if after the reassignments the 
                deficit cannot be completely eliminated, the 
                Secretary shall reassign the estimated quantity 
                of the deficit proportionately to the 
                allotments for other cane sugar States, 
                depending on the capacity of each other State 
                to fill the portion of the deficit to be 
                assigned to it, with the reassigned quantity to 
                each State to be allocated among processors in 
                that State in proportion to the allocations of 
                the processors;
                    ``(C) if after the reassignments the 
                deficit cannot be completely eliminated, the 
                Secretary shall reassign the estimated quantity 
                of the deficit to the Commodity Credit 
                Corporation and shall sell such quantity of 
                sugar from inventories of the Corporation 
                unless the Secretary determines that such sales 
                would have a significant effect on the price of 
                sugar; and
                    ``(D) if after the reassignments and sales, 
                the deficit cannot be completely eliminated, 
                the Secretary shall reassign the remainder to 
                imports.
            ``(2) Beet sugar.--If the Secretary determines that 
        a sugar beet processor who has been allocated a share 
        of the beet sugar allotment will be unable to market 
        that allocation--
                    ``(A) the Secretary first shall reassign 
                the estimated quantity of the deficit to the 
                allotments for other sugar beet processors, 
                depending on the capacity of each other 
                processor to fill the portion of the deficit to 
                be assigned to it and taking into account the 
                interests of producers served by the 
                processors;
                    ``(B) if after the reassignments the 
                deficit cannot be completely eliminated, the 
                Secretary shall reassign the estimated quantity 
                of the deficit to the Commodity Credit 
                Corporation and shall sell such quantity of 
                sugar from inventories of the Corporation 
                unless the Secretary determines that such sales 
                would have a significant effect on the price of 
                sugar; and
                    ``(C) if after the reassignments and sales, 
                the deficit cannot be completely eliminated, 
                the Secretary shall reassign the remainder to 
                imports.
            ``(3) Corresponding increase.--The allocation of 
        each processor receiving a reassigned quantity of an 
        allotment under this subsection for a crop year shall 
        be increased to reflect the reassignment.

``SEC. 359F. PROVISIONS APPLICABLE TO PRODUCERS.

    ``(a) Processor Assurances.--
            ``(1) In general.--If allotments for a crop year 
        are allocated to processors under section 359d, the 
        Secretary shall obtain from the processors such 
        assurances as the Secretary considers adequate that the 
        allocation will be shared among producers served by the 
        processor in a fair and equitable manner that 
        adequately reflects producers' production histories.
            ``(2) Arbitration.--
                    ``(A) In general.--Any dispute between a 
                processor and a producer, or group of 
                producers, with respect to the sharing of the 
                allocation to the processor shall be resolved 
                through arbitration by the Secretary on the 
                request of either party.
                    ``(B) Period.--The arbitration shall, to 
                the maximum extent practicable, be--
                            ``(i) commenced not more than 45 
                        days after the request; and
                            ``(ii) completed not more than 60 
                        days after the request.
    ``(b) Sugar Beet Processing Facility Closures.--
            ``(1) In general.--If a sugar beet processing 
        facility is closed and the sugar beet growers that 
        previously delivered beets to the facility elect to 
        deliver their beets to another processing company, the 
        growers may petition the Secretary to modify 
        allocations under this part to allow the delivery.
            ``(2) Increased allocation for processing 
        company.--The Secretary may increase the allocation to 
        the processing company to which the growers elect to 
        deliver their sugar beets, with the approval of the 
        processing company, to a level that does not exceed the 
        processing capacity of the processing company, to 
        accommodate the change in deliveries.
            ``(3) Decreased allocation for closed company.--The 
        increased allocation shall be deducted from the 
        allocation to the company that owned the processing 
        facility that has been closed and the remaining 
        allocation shall be unaffected.
            ``(4) Timing.--The determinations of the Secretary 
        on the issues raised by the petition shall be made 
        within 60 days after the filing of the petition.
    ``(c) Proportionate Shares of Certain Allotments.--
            ``(1) In general.--
                    ``(A) States affected.--In any case in 
                which a State allotment is established under 
                section 359c(f) and there are in excess of 250 
                sugarcane producers in the State (other than 
                Puerto Rico), the Secretary shall make a 
                determination under subparagraph (B).
                    ``(B) Determination.--The Secretary shall 
                determine, for each State allotment described 
                in subparagraph (A), whether the production of 
                sugarcane, in the absence of proportionate 
                shares, will be greater than the quantity 
                needed to enable processors to fill the 
                allotment and provide a normal carryover 
                inventory of sugar.
            ``(2) Establishment of proportionate shares.--If 
        the Secretary determines under paragraph (1) that the 
        quantity of sugarcane produced by producers in the area 
        covered by a State allotment for a crop year will be in 
        excess of the quantity needed to enable processors to 
        fill the allotment for the crop year and provide a 
        normal carryover inventory of sugar, the Secretary 
        shall establish a proportionate share for each 
        sugarcane-producing farm that limits the acreage of 
        sugarcane that may be harvested on the farm for sugar 
        or seed during the crop year the allotment is in effect 
        as provided in this subsection. Each such proportionate 
        share shall be subject to adjustment under paragraph 
        (7) and section 359c(g).
            ``(3) Method of determining.--For purposes of 
        determining proportionate shares for any crop of 
        sugarcane:
                    ``(A) The Secretary shall establish the 
                State's per-acre yield goal for a crop of 
                sugarcane at a level (not less than the average 
                per-acre yield in the State for the 2 highest 
                years from among the 1999, 2000, and 2001 crop 
                years, as determined by the Secretary) that 
                will ensure an adequate net return per pound to 
                producers in the State, taking into 
                consideration any available production research 
                data that the Secretary considers relevant.
                    ``(B) The Secretary shall adjust the per-
                acre yield goal by the average recovery rate of 
                sugar produced from sugarcane by processors in 
                the State.
                    ``(C) The Secretary shall convert the State 
                allotment for the crop year involved into a 
                State acreage allotment for the crop by 
                dividing the State allotment by the per-acre 
                yield goal for the State, as established under 
                subparagraph (A) and as further adjusted under 
                subparagraph (B).
                    ``(D) The Secretary shall establish a 
                uniform reduction percentage for the crop by 
                dividing the State acreage allotment, as 
                determined for the crop under subparagraph (C), 
                by the sum of all adjusted acreage bases in the 
                State, as determined by the Secretary.
                    ``(E) The uniform reduction percentage for 
                the crop, as determined under subparagraph (D), 
                shall be applied to the acreage base for each 
                sugarcane-producing farm in the State to 
                determine the farm's proportionate share of 
                sugarcane acreage that may be harvested for 
                sugar or seed.
            ``(4) Acreage base.--For purposes of this 
        subsection, the acreage base for each sugarcane-
        producing farm shall be determined by the Secretary, as 
        follows:
                    ``(A) The acreage base for any farm shall 
                be the number of acres that is equal to the 
                average of the acreage planted and considered 
                planted for harvest for sugar or seed on the 
                farm in the 2 highest of the 1999, 2000, and 
                2001 crop years.
                    ``(B) Acreage planted to sugarcane that 
                producers on a farm were unable to harvest to 
                sugarcane for sugar or seed because of drought, 
                flood, other natural disaster, or other 
                condition beyond the control of the producers 
                may be considered as harvested for the 
                production of sugar or seed for purposes of 
                this paragraph.
            ``(5) Violation.--
                    ``(A) In general.--Whenever proportionate 
                shares are in effect in a State for a crop of 
                sugarcane, producers on a farm shall not 
                knowingly harvest, or allow to be harvested, 
                for sugar or seed an acreage of sugarcane in 
                excess of the farm's proportionate share for 
                the crop year, or otherwise violate 
                proportionate share regulations issued by the 
                Secretary under section 359h(a).
                    ``(B) Determination of violation.--No 
                producer shall be considered to have violated 
                subparagraph (A) unless the processor of the 
                sugarcane harvested by such producer from 
                acreage in excess of the proportionate share of 
                the farm markets an amount of sugar that 
                exceeds the allocation of such processor for a 
                crop year.
                    ``(C) Civil penalty.--Any producer on a 
                farm who violates subparagraph (A) by knowingly 
                harvesting, or allowing to be harvested, an 
                acreage of sugarcane in excess of the farm's 
                proportionate share shall be liable to the 
                Commodity Credit Corporation for a civil 
                penalty equal to one and one-half times the 
                United States market value of the quantity of 
                sugar that is marketed by the processor of such 
                sugarcane in excess of the allocation of such 
                processor for the crop year. The Secretary 
                shall prorate penalties imposed under this 
                subparagraph in a fair and equitable manner 
                among all the producers of sugarcane harvested 
                from excess acreage that is acquired by such 
                processor.
            ``(6) Waiver.--Notwithstanding the preceding 
        subparagraph, the Secretary may authorize the county 
        and State committees established under section 8(b) of 
        the Soil Conservation and Domestic Allotment Act (16 
        U.S.C. 590h(b)) to waive or modify deadlines and other 
        proportionate share requirements in cases in which 
        lateness or failure to meet the other requirements does 
        not affect adversely the operation of proportionate 
        shares.
            ``(7) Adjustments.--Whenever the Secretary 
        determines that, because of a natural disaster or other 
        condition beyond the control of producers that 
        adversely affects a crop of sugarcane subject to 
        proportionate shares, the amount of sugarcane produced 
        by producers subject to the proportionate shares will 
        not be sufficient to enable processors in the State to 
        meet the State's cane sugar allotment and provide a 
        normal carryover inventory of sugar, the Secretary may 
        uniformly allow producers to harvest an amount of 
        sugarcane in excess of their proportionate share, or 
        suspend proportionate shares entirely, as necessary to 
        enable processors to meet the State allotment and 
        provide a normal carryover inventory of sugar.
            ``(8) Processing facility closures.--
                    ``(A) In general.--If a sugarcane 
                processing facility subject to this subsection 
                is closed and the sugarcane growers that 
                delivered sugarcane to the facility prior to 
                closure elect to deliver their sugarcane to 
                another processing company, the growers may 
                petition the Secretary to modify allocations 
                under this part to allow the delivery.
                    ``(B) Increased allocation for processing 
                company.--The Secretary may increase the 
                allocation to the processing company to which 
                the growers elect to deliver the sugarcane, 
                with the approval of the processing company, to 
                a level that does not exceed the processing 
                capacity of the processing company, to 
                accommodate the change in deliveries.
                    ``(C) Decreased allocation for closed 
                company.--The increased allocation shall be 
                deducted from the allocation to the company 
                that owned the processing facility that has 
                been closed and the remaining allocation shall 
                be unaffected.
                    ``(D) Timing.--The determinations of the 
                Secretary on the issues raised by the petition 
                shall be made within 60 days after the filing 
                of the petition.

``SEC. 359G. SPECIAL RULES.

    ``(a) Transfer of Acreage Base History.--For the purpose of 
establishing proportionate shares for sugarcane farms under 
section 359f(c), the Secretary, on application of any producer, 
with the written consent of all owners of a farm, may transfer 
the acreage base history of the farm to any other parcels of 
land of the applicant.
    ``(b) Preservation of Acreage Base History.--If for reasons 
beyond the control of a producer on a farm, the producer is 
unable to harvest an acreage of sugarcane for sugar or seed 
with respect to all or a portion of the proportionate share 
established for the farm under section 359f(c), the Secretary, 
on the application of the producer and with the written consent 
of all owners of the farm, may preserve for a period of not 
more than 5 consecutive years the acreage base history of the 
farm to the extent of the proportionate share involved. The 
Secretary may permit the proportionate share to be 
redistributed to other farms, but no acreage base history for 
purposes of establishing acreage bases shall accrue to the 
other farms by virtue of the redistribution of the 
proportionate share.
    ``(c) Revisions of Allocations and Proportionate Shares.--
The Secretary, after such notice as the Secretary by regulation 
may prescribe, may revise or amend any allocation of a 
marketing allotment under section 359d, or any proportionate 
share established or adjusted for a farm under section 359f(c), 
on the same basis as the initial allocation or proportionate 
share was required to be established.
    ``(d) Transfers of Mill Allocations.--
            ``(1) Transfer authorized.--A producer in a 
        proportionate share State, upon written consent from 
        all crop-share owners (or the representative of the 
        crop-share owners) of a farm, and from the processing 
        company holding the applicable allocation for such 
        shares, may deliver sugarcane to another processing 
        company if the additional delivery, when combined with 
        such other processing company's existing deliveries, 
        does not exceed the processing capacity of the company.
            ``(2) Allocation adjustment.--Notwithstanding 
        section 359d, the Secretary shall adjust the 
        allocations of each of such processing companies 
        affected by a transfer under paragraph (1) to reflect 
        the change in deliveries, based on the product of--
                    ``(A) the number of acres of proportionate 
                shares being transferred; and
                    ``(B) the State's per acre yield goal 
                established under section 359f(c)(3).

``SEC. 359H. REGULATIONS; VIOLATIONS; PUBLICATION OF SECRETARY'S 
                    DETERMINATIONS; JURISDICTION OF THE COURTS; UNITED 
                    STATES ATTORNEYS.

    ``(a) Regulations.--The Secretary or the Commodity Credit 
Corporation, as appropriate, shall issue such regulations as 
may be necessary to carry out the authority vested in the 
Secretary in administering this part.
    ``(b) Violation.--Any person knowingly violating any 
regulation of the Secretary issued under subsection (a) shall 
be subject to a civil penalty of not more than $5,000 for each 
violation.
    ``(c) Publication in Federal Register.--Each determination 
issued by the Secretary to establish, adjust, or suspend 
allotments under this part shall be promptly published in the 
Federal Register and shall be accompanied by a statement of the 
reasons for the determination.
    ``(d) Jurisdiction of Courts; United States Attorneys.--
            ``(1) Jurisdiction of courts.--The several district 
        courts of the United States are vested with 
        jurisdiction specifically to enforce, and to prevent 
        and restrain any person from violating, this part or 
        any regulation issued thereunder.
            ``(2) United states attorneys.--Whenever the 
        Secretary shall so request, it shall be the duty of the 
        several United States attorneys, in their respective 
        districts, to institute proceedings to enforce the 
        remedies and to collect the penalties provided for in 
        this part. The Secretary may elect not to refer to a 
        United States attorney any violation of this part or 
        regulation when the Secretary determines that the 
        administration and enforcement of this part would be 
        adequately served by written notice or warning to any 
        person committing the violation.
    ``(e) Nonexclusivity of Remedies.--The remedies and 
penalties provided for in this part shall be in addition to, 
and not exclusive of, any remedies or penalties existing at law 
or in equity.

``SEC. 359I. APPEALS.

    ``(a) In General.--An appeal may be taken to the Secretary 
from any decision under section 359d establishing allocations 
of marketing allotments, or under section 359f, by any person 
adversely affected by reason of any such decision.
    ``(b) Procedure.--
            ``(1) Notice of appeal.--Any such appeal shall be 
        taken by filing with the Secretary, within 20 days 
        after the decision complained of is effective, notice 
        in writing of the appeal and a statement of the reasons 
        therefor. Unless a later date is specified by the 
        Secretary as part of the Secretary's decision, the 
        decision complained of shall be considered to be 
        effective as of the date on which announcement of the 
        decision is made. The Secretary shall deliver a copy of 
        any notice of appeal to each person shown by the 
        records of the Secretary to be adversely affected by 
        reason of the decision appealed, and shall at all times 
        thereafter permit any such person to inspect and make 
        copies of appellant's reasons for the appeal and shall 
        on application permit the person to intervene in the 
        appeal.
            ``(2) Hearing.--The Secretary shall provide each 
        appellant an opportunity for a hearing before an 
        administrative law judge in accordance with sections 
        554 and 556 of title 5, United States Code. The 
        expenses for conducting the hearing shall be reimbursed 
        by the Commodity Credit Corporation.
    ``(c) Special Appeal Process Regarding Beet Sugar 
Allocations.--
            ``(1) Appeal authorized.--Beginning after the 2006 
        crop year, a processor that has an allocation of the 
        beet sugar allotment under this part (referred to in 
        this subsection as a `petitioner') may file a notice of 
        appeal with the Secretary regarding the petitioner's 
        beet sugar allocation. Except as provided in paragraph 
        (2), the Secretary shall consider the appeal if the 
        notice alleges that any processor that has a beet sugar 
        allocation has failed to fill at least 82.5 percent of 
        its allocation of the beet sugar allotment with sugar 
        produced by it or received from the Commodity Credit 
        Corporation in 2 out of the 3 crop years preceding the 
        crop year in which the appeal is filed. A processor 
        that is alleged to have failed to fill at least 82.5 
        percent of its allocation shall be allowed to fully 
        participate in the appeal.
            ``(2) Exceptions.--An appeal under paragraph (1) 
        shall not be based on the failure of a processor to 
        fill at least 82.5 percent of its allocation because of 
        drought, flood, hail, or other weather disaster, as 
        determined by the Secretary. The determination by the 
        Secretary shall not require a formal disaster 
        declaration.
            ``(3) Response to appeal.--Upon the petitioner 
        making an appeal to the Secretary, and upon a review by 
        the Secretary of how processors have filled their 
        allocations, the Secretary may--
                    ``(A) assign an increased allocation for 
                beet sugar to the petitioner that provides a 
                fair and equitable distribution of the 
                allocations for beet sugar, taking into 
                account--
                            ``(i) production history during the 
                        period beginning on April 4, 1996, and 
                        through the date of enactment of the 
                        Farm Security and Rural Investment Act 
                        of 2002;
                            ``(ii) capital investment during 
                        that period;
                            ``(iii) increases in United States 
                        sugar consumption; and
                            ``(iv) the ability or inability of 
                        processors to fill the allocations they 
                        have received under this part; and
                    ``(B) reduce, correspondingly, the 
                allocation for beet sugar of each processor 
                determined to have failed to fill at least 82.5 
                percent of its allocation of the beet sugar 
                allotment as described in paragraph (1).
            ``(4) Filing deadline.--For purposes of the filing 
        deadline specified in subsection (b)(1), the 20-day 
        period shall commence on the date on which the 
        Secretary announces the allocations for the subsequent 
        crop year or October 1, whichever is earlier.

``SEC. 359J. ADMINISTRATION.

    ``(a) Use of Certain Agencies.--In carrying out this part, 
the Secretary may use the services of local committees of sugar 
beet or sugarcane producers, sugarcane processors, or sugar 
beet processors, State and county committees established under 
section 8(b) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(b)), and the departments and agencies of 
the United States Government.
    ``(b) Use of Commodity Credit Corporation.--The Secretary 
shall use the services, facilities, funds, and authorities of 
the Commodity Credit Corporation to carry out this part.

``SEC. 359K. REALLOCATING SUGAR QUOTA IMPORT SHORTFALLS.

    ``(a) In General.--Notwithstanding any other provision of 
law, on or after June 1 of each of the 2002 through 2007 
calendar years, the United States Trade Representative, in 
consultation with the Secretary, shall determine the amount of 
the quota of cane sugar used by each qualified supplying 
country for that crop year, and may reallocate the unused quota 
for that crop year among qualified supplying countries.
    ``(b) Qualified Supplying Country Defined.--In this 
section, the term `qualified supplying country' means one of 
the following foreign countries that is allowed to export cane 
sugar to the United States under an agreement or any other 
country with which the United States has an agreement relating 
to the importation of cane sugar:

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

                           Subtitle E--Dairy

SEC. 1501. MILK PRICE SUPPORT PROGRAM.

    (a) Support Activities.--During the period beginning on 
June 1, 2002, and ending on December 31, 2007, the Secretary of 
Agriculture shall support the price of milk produced in the 48 
contiguous States through the purchase of cheese, butter, and 
nonfat dry milk produced from the milk.
    (b) Rate.--During the period specified in subsection (a), 
the price of milk shall be supported at a rate equal to $9.90 
per hundredweight for milk containing 3.67 percent butterfat.
    (c) Purchase Prices.--
            (1) Uniform prices.--The support purchase prices 
        under this section for each of the products of milk 
        (butter, cheese, and nonfat dry milk) announced by the 
        Secretary shall be the same for all of that product 
        sold by persons offering to sell the product to the 
        Secretary.
            (2) Sufficient prices.--The purchase prices shall 
        be sufficient to enable plants of average efficiency to 
        pay producers, on average, a price that is not less 
        than the rate of price support for milk in effect under 
        subsection (b).
    (d) Special Rule for Butter and Nonfat Dry Milk Purchase 
Prices.--
            (1) Allocation of purchase prices.--The Secretary 
        may allocate the rate of price support between the 
        purchase prices for nonfat dry milk and butter in a 
        manner that will result in the lowest level of 
        expenditures by the Commodity Credit Corporation or 
        achieve such other objectives as the Secretary 
        considers appropriate. Not later than 10 days after 
        making or changing an allocation, the Secretary shall 
        notify the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate of the 
        allocation. Section 553 of title 5, United States Code, 
        shall not apply with respect to the implementation of 
        this section.
            (2) Timing of purchase price adjustments.--The 
        Secretary may make any such adjustments in the purchase 
        prices for nonfat dry milk and butter the Secretary 
        considers to be necessary not more than twice in each 
        calendar year.
    (e) Commodity Credit Corporation.--The Secretary shall 
carry out the program authorized by this section through the 
Commodity Credit Corporation.

SEC. 1502. NATIONAL DAIRY MARKET LOSS PAYMENTS.

    (a) Definitions.--In this section:
            (1) Class i milk.--The term ``Class I milk'' means 
        milk (including milk components) classified as Class I 
        milk under a Federal milk marketing order.
            (2) Eligible production.--The term ``eligible 
        production'' means milk produced by a producer in a 
        participating State.
            (3) Federal milk marketing order.--The term 
        ``Federal milk marketing order'' means an 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.
            (4) Participating state.--The term ``participating 
        State'' means each State.
            (5) Producer.--The term ``producer'' means an 
        individual or entity that directly or indirectly (as 
        determined by the Secretary)--
                    (A) shares in the risk of producing milk; 
                and
                    (B) makes contributions (including land, 
                labor, management, equipment, or capital) to 
                the dairy farming operation of the individual 
                or entity that are at least commensurate with 
                the share of the individual or entity of the 
                proceeds of the operation.
    (b) Payments.--The Secretary shall offer to enter into 
contracts with producers on a dairy farm located in a 
participating State under which the producers receive payments 
on eligible production.
    (c) Amount.--Payments to a producer under this section 
shall be calculated by multiplying (as determined by the 
Secretary)--
            (1) the payment quantity for the producer during 
        the applicable month established under subsection (d);
            (2) the amount equal to--
                    (A) $16.94 per hundredweight; less
                    (B) the Class I milk price per 
                hundredweight in Boston under the applicable 
                Federal milk marketing order; by
            (3) 45 percent.
    (d) Payment Quantity.--
            (1) In general.--Subject to paragraph (2), the 
        payment quantity for a producer during the applicable 
        month under this section shall be equal to the quantity 
        of eligible production marketed by the producer during 
        the month.
            (2) Limitation.--The payment quantity for all 
        producers on a single dairy operation during the months 
        of the applicable fiscal year for which the producers 
        receive payments under subsection (b) shall not exceed 
        2,400,000 pounds. For purposes of determining whether 
        producers are producers on separate dairy operations or 
        a single dairy operation, the Secretary shall apply the 
        same standards as were applied in implementing the 
        dairy program under section 805 of the Agriculture, 
        Rural Development, Food and Drug Administration, and 
        Related Agencies Appropriations Act, 2001 (as enacted 
        into law by Public Law 106-387; 114 Stat. 1549A-50).
            (3) Reconstitution.--The Secretary shall promulgate 
        regulations to ensure that a producer does not 
        reconstitute a dairy operation for the sole purpose of 
        receiving additional payments under this section.
    (e) Payments.--A payment under a contract under this 
section shall be made on a monthly basis not later than 60 days 
after the last day of the month for which the payment is made.
    (f) Signup.--The Secretary shall offer to enter into 
contracts under this section during the period beginning on the 
date that is 60 days after the date of enactment of this Act 
and ending on September 30, 2005.
    (g) Duration of Contract.--
            (1) In general.--Except as provided in paragraph 
        (2) and subsection (h), any contract entered into by 
        producers on a dairy farm under this section shall 
        cover eligible production marketed by the producers on 
        the dairy farm during the period starting with the 
        first day of month the producers on the dairy farm 
        enter into the contract and ending on September 30, 
        2005.
            (2) Violations.--If a producer violates the 
        contract, the Secretary may--
                    (A) terminate the contract and allow the 
                producer to retain any payments received under 
                the contract; or
                    (B) allow the contract to remain in effect 
                and require the producer to repay a portion of 
                the payments received under the contract based 
                on the severity of the violation.
    (h) Transition Rule.--In addition to any payment that is 
otherwise available under this section, if the producers on a 
dairy farm enter into a contract under this section, the 
Secretary shall make a payment in accordance with the formula 
specified in subsection (c) on the quantity of eligible 
production of the producer marketed during the period beginning 
on December 1, 2001, and ending on the last day of the month 
preceding the month the producers on the dairy farm entered 
into the contract.

SEC. 1503. DAIRY EXPORT INCENTIVE AND DAIRY INDEMNITY PROGRAMS.

    (a) Dairy Export Incentive Program.--Section 153(a) of the 
Food Security Act of 1985 (15 U.S.C. 713a-14(a)) is amended by 
striking ``2002'' and inserting ``2007''.
    (b) Dairy Indemnity Program.--Section 3 of Public Law 90-
484 (7 U.S.C. 450l) is amended by striking ``1995'' and 
inserting ``2007''.

SEC. 1504. DAIRY PRODUCT MANDATORY REPORTING.

    Section 272(1) of the Agricultural Marketing Act of 1946 (7 
U.S.C. 1637a(1)) is amended--
            (1) by striking ``means manufactured dairy 
        products'' and inserting ``means--
                    ``(A) manufactured dairy products'';
            (2) by striking the period at the end and inserting 
        ``; and''; and
            (3) by adding at the end the following:
                    ``(B) substantially identical products 
                designated by the Secretary.''.

SEC. 1505. FUNDING OF DAIRY PROMOTION AND RESEARCH PROGRAM.

    (a) Definitions.--Section 111 of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4502) is amended--
            (1) in subsection (k), by striking ``and'' at the 
        end;
            (2) in subsection (l), by striking the period at 
        the end and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(m) the term `imported dairy product' means any 
        dairy product that is imported into the United States 
        (as defined in subsection (l)), including dairy 
        products imported into the United States in the form 
        of--
                    ``(1) milk, cream, and fresh and dried 
                dairy products;
                    ``(2) butter and butterfat mixtures;
                    ``(3) cheese; and
                    ``(4) casein and mixtures;
            ``(n) the term `importer' means a person that 
        imports an imported dairy product into the United 
        States; and
            ``(o) the term `Customs' means the United States 
        Customs Service.''.
    (b) Representation of Importers on Board.--Section 113(b) 
of the Dairy Production Stabilization Act of 1983 (7 U.S.C. 
4504(b)) is amended--
            (1) by inserting ``National Dairy Promotion and 
        Research Board.--'' after ``(b)'';
            (2) by designating the first through ninth 
        sentences as paragraphs (1) through (5) and paragraphs 
        (7) through (10), respectively, and indenting the 
        paragraphs appropriately;
            (3) in paragraph (2) (as so designated), by 
        striking ``Members'' and inserting ``Except as provided 
        in paragraph (6), the members'';
            (4) by inserting after paragraph (5) (as so 
        designated) the following:
            ``(6) Importers.--
                    ``(A) Initial representation.--In making 
                initial appointments to the Board of importer 
                representatives, the Secretary shall appoint 2 
                members who represent importers of dairy 
                products and are subject to assessments under 
                the order.
                    ``(B) Subsequent representation.--At least 
                once every 3 years after the initial 
                appointment of importer representatives under 
                subparagraph (A), the Secretary shall review 
                the average volume of domestic production of 
                dairy products compared to the average volume 
                of imports of dairy products into the United 
                States during the previous 3 years and, on the 
                basis of that review, shall reapportion 
                importer representation on the Board to reflect 
                the proportional share of the United States 
                market by domestic production and imported 
                dairy products.
                    ``(C) Additional members; nominations.--The 
                members appointed under this paragraph--
                            ``(i) shall be in addition to the 
                        total number of members appointed under 
                        paragraph (2); and
                            ``(ii) shall be appointed from 
                        nominations submitted by importers 
                        under such procedures as the Secretary 
                        determines to be appropriate.''; and
            (5) in paragraph (8) (as so designated), by 
        striking ``is produced'' and inserting ``is produced as 
        well as importers of dairy products''.
    (c) Budgets.--Section 113(e) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4504(e)) is amended--
            (1) by striking ``(e)'' and inserting:
    ``(e) Budgets.--
            ``(1) Preparation and submission.--'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following:
            ``(2) Foreign market efforts.--The order shall 
        authorize the Board to expend in the maintenance and 
        expansion of foreign markets an amount not to exceed 
        the amount collected from United States producers for a 
        fiscal year. Of those funds, for each of the 2002 
        through 2007 fiscal years, 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 or manufactured in the United 
        States.''.
    (d) Importer Assessment.--Section 113(g) of the Dairy 
Production Stabilization Act of 1983 (7 U.S.C. 4504(g)) is 
amended--
            (1) by inserting ``Assessments.--'' after ``(g)'';
            (2) by designating the first through fifth 
        sentences as paragraphs (1) through (5), respectively, 
        and indenting appropriately;
            (3) in paragraph (3) (as so designated)--
                    (A) by inserting ``for milk produced in the 
                United States and imported dairy products'' 
                after ``The rate of assessment''; and
                    (B) by inserting before the period at the 
                end the following: ``, as determined by the 
                Secretary''; and
            (4) by adding at the end the following:
            ``(6) Importers.--
                    ``(A) In general.--The order shall provide 
                that each importer of imported dairy products 
                shall pay an assessment to the Board in the 
                manner prescribed by the order.
                    ``(B) Time for payment.--The assessment on 
                imported dairy products shall be paid by the 
                importer to Customs at the time the entry 
                documents are filed with Customs. Customs shall 
                remit the assessments to the Board. For 
                purposes of this subparagraph, the term 
                `importer' includes persons who hold title to 
                foreign-produced dairy products immediately 
                upon release by Customs, as well as persons who 
                act on behalf of others, as agents, brokers, or 
                consignees, to secure the release of dairy 
                products from Customs.
                    ``(C) Use of assessments on imported dairy 
                products.--Assessments collected on imported 
                dairy products shall not be used for foreign 
                market promotion.''.
    (e) Records.--Section 113(k) of the Dairy Production 
Stabilization Act of 1983 (7 U.S.C. 4504(k)) is amended in the 
first sentence by striking ``person receiving'' and inserting 
``importer of imported dairy products, each person receiving''.
    (f) Importer Eligibility To Vote in Referendum.--Section 
116(b) of the Dairy Promotion Stabilization Act of 1983 (7 
U.S.C. 4507(b)) is amended--
            (1) in the first sentence--
                    (A) by inserting after ``of producers'' the 
                following: ``and importers''; and
                    (B) by inserting after ``the producers'' 
                the following: ``and importers''; and
            (2) in the second sentence, by inserting after 
        ``commercial use'' the following: ``and importers 
        voting in the referendum (who have been engaged in the 
        importation of dairy products during the same 
        representative period, as determined by the 
        Secretary)''.
    (g) Order Implementation and International Trade 
Obligations.--Section 112 of the Dairy Promotion Stabilization 
Act of 1983 (7 U.S.C. 4503) is amended by adding at the end the 
following:
    ``(d) Order Implementation and International Trade 
Obligations.--The Secretary, in consultation with the United 
States Trade Representative, shall ensure that the order is 
implemented in a manner consistent with the international trade 
obligations of the Federal Government.''.
    (h) Conforming Amendments To Reflect Addition of 
Importers.--The Dairy Production Stabilization Act of 1983 is 
amended--
            (1) in section 110(b) (7 U.S.C. 4501(b))--
                    (A) in the first sentence--
                            (i) by inserting after ``commercial 
                        use'' the following: ``and on imported 
                        dairy products''; and
                            (ii) by striking ``products 
                        produced in the United States.'' and 
                        inserting ``products.''; and
                    (B) in the second sentence, by inserting 
                after ``produce milk'' the following: ``or the 
                right of any person to import dairy products''; 
                and
            (2) in section 111(d) (7 U.S.C. 4502(d)), by 
        striking ``produced in the United States''.

SEC. 1506. FLUID MILK PROMOTION.

    (a) Definition of Fluid Milk Product.--Section 1999C of the 
Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Fluid milk product.--The term `fluid milk 
        product' has the meaning given the term in--
                    ``(A) section 1000.15 of title 7, Code of 
                Federal Regulations, subject to such amendments 
                as may be made by the Secretary; or
                    ``(B) any successor regulation.''.
    (b) Definition of Fluid Milk Processor.--Section 1999C(4) 
of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6402(4)) is 
amended by striking ``500,000 pounds of fluid milk products in 
consumer-type packages per month'' and inserting ``3,000,000 
pounds of fluid milk products in consumer-type packages per 
month (excluding products delivered directly to the place of 
residence of a consumer)''.
    (c) Elimination of Order Termination Date.--Section 1999O 
of the Fluid Milk Promotion Act of 1990 (7 U.S.C. 6414) is 
amended--
            (1) by striking subsection (a); and
            (2) by redesignating subsections (b) and (c) as 
        subsections (a) and (b), respectively.

SEC. 1507. STUDY OF NATIONAL DAIRY POLICY.

    (a) Study Required.--The Secretary of Agriculture shall 
conduct a comprehensive economic evaluation of the potential 
direct and indirect effects of the various elements of the 
national dairy policy, including an examination of the effect 
of the national dairy policy on--
            (1) farm price stability, farm profitability and 
        viability, and local rural economies in the United 
        States;
            (2) child, senior, and low-income nutrition 
        programs, including impacts on schools and institutions 
        participating in the programs, on program recipients, 
        and other factors; and
            (3) the wholesale and retail cost of fluid milk, 
        dairy farms, and milk utilization.
    (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report describing the results of the study required by 
this section.
    (c) National Dairy Policy Defined.--In this section, the 
term ``national dairy policy'' means the dairy policy of the 
United States as evidenced by the following policies and 
programs:
            (1) Federal milk marketing orders issued under 
        section 8c of the Agricultural Adjustment Act (7 U.S.C. 
        608c), reenacted with amendments by the Agricultural 
        Marketing Act of 1937.
            (2) Interstate dairy compacts (including proposed 
        compacts described in H.R. 1827 and S. 1157, as 
        introduced in the 107th Congress).
            (3) Over-order premiums and State pricing programs.
            (4) Direct payments to milk producers.
            (5) Federal milk price support program established 
        under section 1401.
            (6) Export programs regarding milk and dairy 
        products, such as the dairy export incentive program 
        established under section 153 of the Food Security Act 
        of 1985 (15 U.S.C. 713a-14).

SEC. 1508. STUDIES OF EFFECTS OF CHANGES IN APPROACH TO NATIONAL DAIRY 
                    POLICY AND FLUID MILK IDENTITY STANDARDS.

    (a) Federal Dairy Policy Changes.--The Secretary of 
Agriculture shall conduct a study of the effects of--
            (1) terminating all Federal programs relating to 
        price support and supply management for milk; and
            (2) granting the consent of Congress to cooperative 
        efforts by States to manage milk prices and supply.
    (b) Fluid Milk Identity Standards.--The Secretary shall 
conduct a study of the effects of including in the standard of 
identity for fluid milk a required minimum protein content that 
is commensurate with the average nonfat solids content of 
bovine milk produced in the United States.
    (c) Reports.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report describing the results of the studies required 
by this section.

                       Subtitle F--Administration

SEC. 1601. ADMINISTRATION GENERALLY.

    (a) Use of Commodity Credit Corporation.--The Secretary 
shall use the funds, facilities, and authorities of the 
Commodity Credit Corporation to carry out this title.
    (b) Determinations by Secretary.--A determination made by 
the Secretary under this title shall be final and conclusive.
    (c) Regulations.--
            (1) In general.--Not later than 90 days after the 
        date of the enactment of this Act, the Secretary and 
        the Commodity Credit Corporation, as appropriate, shall 
        promulgate such regulations as are necessary to 
        implement this title.
            (2) Procedure.--The promulgation of the regulations 
        and administration of this title shall be made without 
        regard to--
                    (A) chapter 35 of title 44, United States 
                Code (commonly know as the ``Paperwork 
                Reduction Act'');
                    (B) the Statement of Policy of the 
                Secretary of Agriculture effective July 24, 
                1971 (36 Fed. Reg. 13804), relating to notices 
                of proposed rulemaking and public participation 
                in rulemaking; and
                    (C) the notice and comment provisions of 
                section 553 of title 5, United States Code.
            (3) Congressional review of agency rulemaking.--In 
        carrying out this subsection, the Secretary shall use 
        the authority provided under section 808 of title 5, 
        United States Code.
    (d) Treatment of Advance Payment Option.--The protection 
that was afforded producers that had an option to elect to 
accelerate the receipt of any payment under a production 
flexibility contract payable under the Federal Agriculture 
Improvement and Reform Act of 1996, as provided by section 525 
of Public 106-170 (113 Stat. 1928; 7 U.S.C. 7212 note), shall 
also apply to the option to receive--
            (1) the advance payment of direct payments and 
        counter-cyclical payments under subtitle A and subtitle 
        C; and
            (2) the single payment of compensation for eligible 
        peanut quota holders under section 1310.
    (e) Adjustment Authority Related to Uruguay Round 
Compliance.--
            (1) Required determination; adjustment.--If the 
        Secretary determines that expenditures under subtitles 
        A through E that are subject to the total allowable 
        domestic support levels under the Uruguay Round 
        Agreements (as defined in section 2 of the Uruguay 
        Round Agreements Act (19 U.S.C. 3501)), as in effect on 
        the date of enactment of this Act, will exceed such 
        allowable levels for any applicable reporting period, 
        the Secretary shall, to the maximum extent practicable, 
        make adjustments in the amount of such expenditures 
        during that period to ensure that such expenditures do 
        not exceed such allowable levels.
            (2) Congressional notification.--Before making any 
        adjustment under paragraph (1), the Secretary shall 
        submit to the Committee on Agriculture, Nutrition, and 
        Forestry of the Senate and the Committee on Agriculture 
        of the House of Representatives a report describing the 
        determination made under that paragraph and the extent 
        of the adjustment to be made.

SEC. 1602. SUSPENSION OF PERMANENT PRICE SUPPORT AUTHORITY.

    (a) Agricultural Adjustment Act of 1938.--The following 
provisions of the Agricultural Adjustment Act of 1938 shall not 
be applicable to the 2002 through 2007 crops of covered 
commodities, peanuts, and sugar and shall not be applicable to 
milk during the period beginning on the date of enactment of 
this Act through December 31, 2007:
            (1) Parts II through V of subtitle B of title III 
        (7 U.S.C. 1326-1351).
            (2) In the case of upland cotton, section 377 (7 
        U.S.C. 1377).
            (3) Subtitle D of title III (7 U.S.C. 1379a-1379j).
            (4) Title IV (7 U.S.C. 1401-1407).
    (b) Agricultural Act of 1949.--The following provisions of 
the Agricultural Act of 1949 shall not be applicable to the 
2002 through 2007 crops of covered commodities, peanuts, and 
sugar and shall not be applicable to milk during the period 
beginning on the date of enactment of this Act and through 
December 31, 2007:
            (1) Section 101 (7 U.S.C. 1441).
            (2) Section 103(a) (7 U.S.C. 1444(a)).
            (3) Section 105 (7 U.S.C. 1444b).
            (4) Section 107 (7 U.S.C. 1445a).
            (5) Section 110 (7 U.S.C. 1445e).
            (6) Section 112 (7 U.S.C. 1445g).
            (7) Section 115 (7 U.S.C. 1445k).
            (8) Section 201 (7 U.S.C. 1446).
            (9) Title III (7 U.S.C. 1447-1449).
            (10) Title IV (7 U.S.C. 1421-1433d), other than 
        sections 404, 412, and 416 (7 U.S.C. 1424, 1429, and 
        1431).
            (11) Title V (7 U.S.C. 1461-1469).
            (12) Title VI (7 U.S.C. 1471-1471j).
    (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 2002 through 2007.
    (d) Conforming Amendment.--Section 171(a)(1) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7301(a)(1)) is amended by striking ``2002'' the first place 
appears and inserting ``2001''.

SEC. 1603. PAYMENT LIMITATIONS.

    (a) Limitation on Amounts Received.--Section 1001 of the 
Food Security Act of 1985 (7 U.S.C. 1308) is amended by 
striking the section heading, ``Sec. 1001.'', and all that 
follows through the end of paragraph (4) and inserting the 
following:

``SEC. 1001. PAYMENT LIMITATIONS.

    ``(a) Definitions.--In this section:
            ``(1) Covered commodity.--The term `covered 
        commodity' has the meaning given that term in section 
        1001 of the Farm Security and Rural Investment Act of 
        2002.
            ``(2) Loan commodity.--The term `loan commodity' 
        has the meaning given that term in section 1001 of the 
        Farm Security and Rural Investment Act of 2002, except 
        that the term does not include wool, mohair, or honey.
            ``(3) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
    ``(b) Limitation on Direct Payments.--
            ``(1) Covered commodities.--The total amount of 
        direct payments made to a person during any crop year 
        under subtitle A of title I of the Farm Security and 
        Rural Investment Act of 2002 for 1 or more covered 
        commodities may not exceed $40,000.
            ``(2) Peanuts.--The total amount of direct payments 
        made to a person during any crop year under subtitle C 
        of title I of the Farm Security and Rural Investment 
        Act of 2002 may not exceed $40,000.
    ``(c) Limitation on Counter-Cyclical Payments.--
            ``(1) Covered commodities.--The total amount of 
        counter-cyclical payments made to a person during any 
        crop year under subtitle A of title I of the Farm 
        Security and Rural Investment Act of 2002 for 1 or more 
        covered commodities may not exceed $65,000.
            ``(2) Peanuts.--The total amount of counter-
        cyclical payments made to a person during any crop year 
        under subtitle C of title I of the Farm Security and 
        Rural Investment Act of 2002 may not exceed $65,000.
    ``(d) Limitation on Marketing Loan Gains and Loan 
Deficiency Payments.--
            ``(1) Loan commodities.--The total amount of the 
        following gains and payments that a person may receive 
        during any crop year may not exceed $75,000:
                    ``(A) Any gain realized by a producer from 
                repaying a marketing assistance loan for 1 or 
                more loan commodities under subtitle B of title 
                I of the Farm Security and Rural Investment Act 
                of 2002 at a lower level than the original loan 
                rate established for the loan commodity under 
                that subtitle.
                    ``(B) Any loan deficiency payments received 
                for 1 or more loan commodities under that 
                subtitle.
            ``(2) Other commodities.--The total amount of the 
        following gains and payments that a person may receive 
        during any crop year may not exceed $75,000:
                    ``(A) Any gain realized by a producer from 
                repaying a marketing assistance loan for 
                peanuts, wool, mohair, or honey under subtitle 
                B or C of title I of the Farm Security and 
                Rural Investment Act of 2002 at a lower level 
                than the original loan rate established for the 
                commodity under those subtitles.
                    ``(B) Any loan deficiency payments received 
                for peanuts, wool, mohair, and honey under 
                those subtitles.''.
    (b) Clerical and Conforming Amendments to Section 1001.--
Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) 
is amended--
            (1) in paragraph (5)--
                    (A) by striking ``(5)'' and inserting ``(e) 
                Definition of Person.--''
                    (B) by redesignating subparagraphs (A) 
                through (E) as paragraphs (1) through (5), 
                respectively;
                    (C) in paragraph (1), as so redesignated--
                            (i) by redesignating clauses (i) 
                        and (ii) as subparagraphs (A) and (B), 
                        respectively; and
                            (ii) by striking the second 
                        sentence; and
                    (D) in paragraph (2), as so redesignated--
                            (i) by redesignating clause (i) as 
                        subparagraph (A) and, in such 
                        subparagraph (as so redesignated)--
                                    (I) by striking 
                                ``subparagraph (A), subject to 
                                clause (ii)'' and inserting 
                                ``paragraph (1), subject to 
                                subparagraph (B)''; and
                                    (II) by redesignating 
                                subclauses (I), (II), and 
                                (III), as clauses (i), (ii), 
                                and (iii), respectively;
                            (ii) by redesignating clause (ii) 
                        as subparagraph (B) and, in such 
                        subparagraph (as so redesignated), by 
                        redesignating subclauses (I), (II), and 
                        (III), as clauses (i), (ii), and (iii), 
                        respectively; and
                            (iii) by redesignating clause (iii) 
                        as subparagraph (C) and, in such 
                        subparagraph (as so redesignated)--
                                    (I) by striking ``as 
                                described in paragraphs (1) and 
                                (2)'' and inserting ``as 
                                described in subsections (b), 
                                (c), and (d)''; and
                                    (II) by redesignating 
                                subclauses (I) and (II) as 
                                clauses (i) and (ii), 
                                respectively;
            (2) in paragraph (6), by striking ``(6)'' and 
        inserting ``(f) Public Schools.--''; and
            (3) in paragraph (7), by striking ``(7)'' and 
        inserting ``(g) Time Limits; Reliance.--''.
    (c) Conforming Amendments to Other laws.--
            (1) Section 1001A of the Food Security Act of 1985 
        (7 U.S.C. 1308-1) is amended--
                    (A) in subsections (a)(1) and (b)(2)(B), by 
                striking ``section 1001(5)(B)(i)(II)'' and 
                inserting ``section 1001(e)(2)(A)(ii)''; and
                    (B) in subsections (a)(1) and (b)(1), by 
                striking ``section 1001(5)(B)(i)'' and 
                inserting ``section 1001(e)(2)(A)''; and
            (2) Section 1001B of the Food Security Act of 1985 
        (7 U.S.C. 1308-2) is amended by striking ``as described 
        in paragraphs (1) and (2)'' and inserting ``as 
        described in subsections (b), (c), and (d)''.
            (3) Section 1001C(a) of the Food Security Act of 
        1985 (7 U.S.C. 1308-3(a)) is amended by inserting 
        ``title I of the Farm Security and Rural Investment Act 
        of 2002,'' after ``made available under''.
    (d) Transition.--Section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308), as in effect on the day before the date 
of the enactment of this Act, shall continue to apply with 
respect to the 2001 crop of any covered commodity.

SEC. 1604. ADJUSTED GROSS INCOME LIMITATION.

    The Food Security Act of 1985 is amended--
            (1) by redesignating section 1001D (7 U.S.C. 1308-
        4) and section 1001E (7 U.S.C. 1308-5) as sections 
        1001E and 1001F, respectively; and
            (2) by inserting after section 1001C (7 U.S.C. 
        1308-3) the following:

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

    ``(a) Definition of Average Adjusted Gross Income.--
            ``(1) In general.--In this section, the term 
        `average adjusted gross income', with respect to an 
        individual or entity (for purposes of this section, as 
        defined in section 1001(e)(2)(A)(ii)), means the 3-year 
        average of the adjusted gross income or comparable 
        measure of the individual or entity over the 3 
        preceding tax years, as determined by the Secretary.
            ``(2) Special rules for certain individuals and 
        entities.--In the case of an entity that is not 
        required to file a Federal income tax return or an 
        individual or entity that did not have taxable income 
        in 1 or more of the tax years used to determine the 
        average under paragraph (1), the Secretary shall 
        provide, by regulation, a method for determining the 
        average adjusted gross income of the individual or 
        entity for purposes of this section.
    ``(b) Limitation.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, an individual or entity shall not be 
        eligible to receive any benefit described in paragraph 
        (2) during a crop year if the average adjusted gross 
        income of the individual or entity exceeds $2,500,000, 
        unless not less than 75 percent of the average adjusted 
        gross income of the individual or entity is derived 
        from farming, ranching, or forestry operations, as 
        determined by the Secretary.
            ``(2) Covered benefits.--Paragraph (1) applies with 
        respect to the following:
                    ``(A) A direct payment or counter-cyclical 
                payment under subtitle A or C of title I of the 
                Farm Security and Rural Investment Act of 2002.
                    ``(B) A marketing loan gain or payment 
                described in section 1001(d) of this Act.
                    ``(C) A payment under any program under 
                title XII of this Act or title II of the Farm 
                Security and Rural Investment Act of 2002.
    ``(c) Certification.--To comply with the limitation under 
subsection (b), an individual or entity shall provide to the 
Secretary--
            ``(1) a certification by a certified public 
        accountant or another third party that is acceptable to 
        the Secretary that the average adjusted gross income of 
        the individual or entity does not exceed the limitation 
        specified in that subsection; or
            ``(2) information and documentation regarding the 
        adjusted gross income of the individual or entity 
        through other procedures established by the Secretary.
    ``(d) Commensurate Reduction.--In the case of a benefit 
described in subsection (b)(2) made in a crop year to an 
entity, general partnership, or joint venture, the amount of 
the benefit shall be reduced by an amount that is commensurate 
with the direct and indirect ownership interest in the entity, 
general partnership, or joint venture of each individual who 
has an average adjusted gross income in excess of the 
limitation specified in subsection (b) for the average of the 3 
preceding crop years.
    ``(e) Effective Period.--This section shall apply only 
during the 2003 through 2007 crop years.''.

SEC. 1605. COMMISSION ON APPLICATION OF PAYMENT LIMITATIONS.

    (a) Establishment.--There is established a commission to be 
known as the ``Commission on the Application of Payment 
Limitations for Agriculture'' (referred to in this section as 
the ``Commission'').
    (b) Duties.--The Commission shall conduct a study on the 
potential impacts of further payment limitations on the receipt 
of direct payments, counter-cyclical payments, and marketing 
loan gains and loan deficiency payments on--
            (1) farm income;
            (2) land values;
            (3) rural communities;
            (4) agribusiness infrastructure;
            (5) planting decisions of producers affected; and
            (6) supply and prices of covered commodities, loan 
        commodities, specialty crops (including fruits and 
        vegetables), and other agricultural commodities.
    (c) Membership.--
            (1) Composition.--The Commission shall be composed 
        of 10 members as follows:
                    (A) 3 members appointed by the Secretary.
                    (B) 3 members appointed by the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate.
                    (C) 3 members appointed by the Committee on 
                Agriculture of the House of Representatives.
                    (D) The Chief Economist of the Department 
                of Agriculture.
            (2) Federal government employment.--The membership 
        of the Commission may include 1 or more employees of 
        the Department of Agriculture or other Federal 
        agencies.
            (3) Date of appointments.--The appointment of a 
        member of the Commission shall be made not later than 
        60 days after the date of enactment of this Act.
            (4) Term; vacancies.--
                    (A) Term.--A member shall be appointed for 
                the life of the Commission.
                    (B) Vacancies.--A vacancy on the 
                Commission--
                            (i) shall not affect the powers of 
                        the Commission; and
                            (ii) shall be filled in the same 
                        manner as the original appointment was 
                        made.
            (5) Initial meeting.--Not later than 30 days after 
        the date on which all members of the Commission have 
        been appointed, the Commission shall hold the initial 
        meeting of the Commission.
    (d) Quorum.--A majority of the members of the Commission 
shall constitute a quorum for the transaction of business, but 
a lesser number of members may hold hearings.
    (e) Chairperson.--The Secretary shall appoint 1 of the 
members of the Commission to serve as Chairperson of the 
Commission.
    (f) Report.--Not later than 1 year after the date of 
enactment of this Act, the Commission shall submit to the 
President, the Committee on Agriculture of the House of 
Representatives, and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report containing the results of 
the study required by subsection (b), including such 
recommendations as the Commission considers appropriate.
    (g) Hearings.--The Commission may hold such hearings, meet 
and act at such times and places, take such testimony, and 
receive such evidence as the Commission considers advisable to 
carry out this section.
    (h) Information From Federal Agencies.--The Commission may 
secure directly from a Federal agency such information as the 
Commission considers necessary to carry out this section. On 
request of the Chairperson of the Commission, the head of the 
agency shall provide the information to the Commission.
    (i) Postal Services.--The Commission may use the United 
States mails in the same manner and under the same conditions 
as other agencies of the Federal Government.
    (j) Assistance From Secretary.--The Secretary may provide 
to the Commission appropriate office space and such reasonable 
administrative and support services as the Commission may 
request.
    (k) Compensation of Members.--
            (1) Non-federal employees.--A member of the 
        Commission who is not an officer or employee of the 
        Federal Government shall be compensated at a rate equal 
        to the daily equivalent of the annual rate of basic pay 
        prescribed for level IV of the Executive Schedule under 
        section 5315 of title 5, United States Code, for each 
        day (including travel time) during which the member is 
        engaged in the performance of the duties of the 
        Commission.
            (2) Federal employees.--A member of the Commission 
        who is an officer or employee of the Federal Government 
        shall serve without compensation in addition to the 
        compensation received for the services of the member as 
        an officer or employee of the Federal Government.
            (3) Travel expenses.--A member of the Commission 
        shall be allowed travel expenses, including per diem in 
        lieu of subsistence, at rates authorized for an 
        employee of an agency under subchapter I of chapter 57 
        of title 5, United States Code, while away from the 
        home or regular place of business of the member in the 
        performance of the duties of the Commission.
    (l) Federal Advisory Committee Act.--The Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the Commission 
or any proceeding of the Commission.

SEC. 1606. ADJUSTMENTS OF LOANS.

    Section 162(b) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7282(b)) is amended by striking 
``this title'' and inserting ``this title and title I of the 
Farm Security and Rural Investment Act of 2002''.

SEC. 1607. PERSONAL LIABILITY OF PRODUCERS FOR DEFICIENCIES.

    Section 164 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7284) is amended by striking 
``this title'' each place it appears and inserting ``this title 
and title I of the Farm Security and Rural Investment Act of 
2002''.

SEC. 1608. EXTENSION OF EXISTING ADMINISTRATIVE AUTHORITY REGARDING 
                    LOANS.

    Section 166 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7286) is amended--
            (1) in subsection (a), by striking ``subtitle C'' 
        and inserting ``subtitle C of this title and subtitle B 
        and C of title I of the Farm Security and Rural 
        Investment Act of 2002''; and
            (2) in subsection (c)(1), by striking ``subtitle 
        C'' and inserting ``subtitle C of this title and 
        subtitle B and C of title I of the Farm Security and 
        Rural Investment Act of 2002''.

SEC. 1609. COMMODITY CREDIT CORPORATION INVENTORY.

    Section 5 of the Commodity Credit Corporation Charter Act 
(15 U.S.C. 714c) is amended in the last sentence by inserting 
before the period at the end the following: ``(including, at 
the option of the Corporation, the use of private sector 
entities)''.

SEC. 1610. RESERVE STOCK LEVEL.

    Section 301(b)(14)(C) of the Agricultural Adjustment Act of 
1938 (7 U.S.C. 1301(b)(14)(C)) is amended--
            (1) in clause (i), by striking ``100,000,000'' and 
        inserting ``60,000,000''; and
            (2) in clause (ii), by striking ``15 percent'' and 
        inserting ``10 percent''.

SEC. 1611. FARM RECONSTITUTIONS.

    (a) In General.--Section 316(a)(1)(A)(ii) of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 
1314b(a)(1)(A)(ii)) is amended by adding at the end the 
following: ``Notwithstanding any other provision of law, for 
the 2002 crop only, the Secretary shall allow special farm 
reconstitutions, in lieu of lease and transfer of allotments 
and quotas, under this section, in accordance with such 
conditions as are established by the Secretary.''.
    (b) Study.--
            (1) In general.--The Secretary shall conduct a 
        study on the effects on the limitation on producers to 
        move quota to a farm other than the farm to which the 
        quota was initially assigned under part I of subtitle B 
        of title III of the Agricultural Adjustment Act of 1938 
        (7 U.S.C. 1311 et seq.).
            (2) Report.--Not later than 90 days after the date 
        of enactment of this Act, the Secretary shall submit to 
        the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        results of the study.

SEC. 1612. ASSIGNMENT OF PAYMENTS.

    The provisions of section 8(g) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(g)), relating to 
assignment of payments, shall apply to payments made under the 
authority of this Act. The producer making the assignment, or 
the assignee, shall provide the Secretary with notice, in such 
manner as the Secretary may require, of any assignment made 
under this section.

SEC. 1613. EQUITABLE RELIEF FROM INELIGIBILITY FOR LOANS, PAYMENTS, OR 
                    OTHER BENEFITS.

    (a) Definitions.--In this section:
            (1) Agricultural commodity.--The term 
        ``agricultural commodity'' means any agricultural 
        commodity, food, feed, fiber, or livestock that is 
        subject to a covered program.
            (2) Covered program.--
                    (A) In general.--The term ``covered 
                program'' means--
                            (i) a program administered by the 
                        Secretary under which price or income 
                        support, or production or market loss 
                        assistance, is provided to producers of 
                        agricultural commodities; and
                            (ii) a conservation program 
                        administered by the Secretary.
                    (B) Exclusions.--The term ``covered 
                program'' does not include--
                            (i) an agricultural credit program 
                        carried out under the Consolidated Farm 
                        and Rural Development Act (7 U.S.C. 
                        1921 et seq.); or
                            (ii) the crop insurance program 
                        carried out under the Federal Crop 
                        Insurance Act (7 U.S.C. 1501 et seq.).
            (3) Participant.--The term ``participant'' means a 
        participant in a covered program.
            (4) State conservationist.--The term ``State 
        Conservationist'' means the State Conservationist with 
        respect to a program administered by the Natural 
        Resources Conservation Service.
            (5) State director.--The term ``State Director'' 
        means the State Executive Director of the Farm Service 
        Agency with respect to a program administered by the 
        Farm Service Agency.
    (b) Equitable Relief.--The Secretary may provide relief to 
any participant that is determined to be not in compliance with 
the requirements of a covered program, and therefore ineligible 
for a loan, payment, or other benefit under the covered 
program, if the participant--
            (1) acting in good faith, relied on the action or 
        advice of the Secretary (including any authorized 
        representative of the Secretary) to the detriment of 
        the participant; or
            (2) failed to comply fully with the requirements of 
        the covered program, but made a good faith effort to 
        comply with the requirements.
    (c) Forms of Relief.--The Secretary may authorize a 
participant in a covered program to--
            (1) retain loans, payments, or other benefits 
        received under the covered program;
            (2) continue to receive loans, payments, and other 
        benefits under the covered program;
            (3) continue to participate, in whole or in part, 
        under any contract executed under the covered program;
            (4) in the case of a conservation program, reenroll 
        all or part of the land covered by the program; and
            (5) receive such other equitable relief as the 
        Secretary determines to be appropriate.
    (d) Remedial Action.--As a condition of receiving relief 
under this section, the Secretary may require the participant 
to take actions designed to remedy any failure to comply with 
the covered program.
    (e) Equitable Relief by State Directors and State 
Conservationists.--
            (1) In general.--A State Director, in the case of 
        programs administered by the State Director, and the 
        State Conservationist, in the case of programs 
        administered by the State Conservationist, may grant 
        relief to a participant in accordance with subsections 
        (b) through (d) if--
                    (A) the amount of loans, payments, and 
                benefits for which relief will be provided to 
                the participant under this subsection is less 
                than $20,000;
                    (B) the total amount of loans, payments, 
                and benefits for which relief has been 
                previously provided to the participant under 
                this subsection is not more than $5,000; and
                    (C) the total amount of loans, payments, 
                and benefits for which relief is provided to 
                similarly situated participants under this 
                subsection is not more than $1,000,000, as 
                determined by the Secretary.
            (2) Consultation, approval, and reversal.--The 
        decision by a State Director or State Conservationist 
        to grant relief under this subsection--
                    (A) shall not require prior approval by the 
                Administrator of the Farm Service Agency, the 
                Chief of the Natural Resources Conservation 
                Service, or any other officer or employee of 
                the Agency or Service;
                    (B) shall be made only after consultation 
                with, and the approval of, the Office of 
                General Counsel of the Department of 
                Agriculture; and
                    (C) is subject to reversal only by the 
                Secretary (who may not delegate the reversal 
                authority).
            (3) Nonapplicability.--The authority of a State 
        Director or State Conservationist under this subsection 
        does not apply to the administration of--
                    (A) payment limitations under--
                            (i) sections 1001 through 1001F of 
                        the Food Security Act of 1985 (7 U.S.C. 
                        1308 et seq.); or
                            (ii) a conservation program 
                        administered by the Secretary.
                    (B) highly erodible land and wetland 
                conservation requirements under subtitle B or C 
                of title XII of the Food Security Act of 1985 
                (16 U.S.C. 3811 et seq.).
            (4) Other authority.--The authority provided to a 
        State Director and State Conservationist under this 
        subsection is in addition to any other applicable 
        authority and does not limit other authority provided 
        by law or the Secretary.
    (f) Judicial Review.--A discretionary decision by the 
Secretary, the State Director, or the State Conservationist 
under this section shall be final, and shall not be subject to 
review under chapter 7 of title 5, United States Code.
    (g) Reports.--Not later than February 1 of each year, the 
Secretary shall submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that describes 
for the previous calendar year--
            (1) the number of requests for equitable relief 
        under subsections (b) and (e) and the disposition of 
        the requests; and
            (2) the number of requests for equitable relief 
        under section 278(d) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6998(d)) and the 
        disposition of the requests.
    (h) Relationship to Other Law.--The authority provided in 
this section is in addition to any other authority provided in 
this or any other Act.
    (i) Finality Rule.--Section 281(a) of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 7001(a)) is 
amended--
            (1) by striking ``Consolidated Farm Service 
        Agency'' each place it appears and inserting ``Farm 
        Service Agency'';
            (2) in paragraph (1)--
                    (A) by striking ``This subsection'' and 
                inserting the following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection''; and
                    (B) by adding at the end the following:
                    ``(B) Nonapplicability.--This subsection 
                does not apply to--
                            ``(i) a function performed under 
                        section 376 of the Consolidated Farm 
                        and Rural Development Act; or
                            ``(ii) a function performed under a 
                        conservation program administered by 
                        the Natural Resources Conservation 
                        Service.''; and
            (3) in paragraph (2), by inserting ``, before the 
        end of the 90-day period,'' after ``unless the 
        decision''.
    (j) Conforming Amendments.--
            (1) Section 326 of the Food and Agriculture Act of 
        1962 (7 U.S.C. 1339a) is repealed.
            (2) Section 278(d) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6998(d)) is 
        amended in the first sentence by striking ``section 326 
        of the Food and Agriculture Act of 1962 (7 U.S.C. 
        1339a)'' and inserting ``section 1613 of the Farm 
        Security and Rural Investment Act of 2002''.
            (3) Section 1230A of the Food Security Act of 1985 
        (16 U.S.C. 3830a) is repealed.

SEC. 1614. TRACKING OF BENEFITS.

    As soon as practicable after the date of enactment of this 
Act, the Secretary shall establish procedures to track the 
benefits provided, directly or indirectly, to individuals and 
entities under titles I and II and the amendments made by those 
titles.

SEC. 1615. ESTIMATES OF NET FARM INCOME.

    In each issuance of projections of net farm income, the 
Secretary shall include (as determined by the Secretary)--
            (1) an estimate of the net farm income earned by 
        commercial producers in the United States; and
            (2) an estimate of the net farm income attributable 
        to commercial producers of each of the following:
                    (A) Livestock.
                    (B) Loan commodities.
                    (C) Agricultural commodities other than 
                loan commodities.

SEC. 1616. AVAILABILITY OF INCENTIVE PAYMENTS FOR CERTAIN PRODUCERS.

    (a) Incentive Payments Required.--Subject to subsection 
(b), the Secretary shall make available a total of $20,000,000 
of funds of the Commodity Credit Corporation during the 2003 
through 2005 crop years to provide incentive payments to 
producers of hard white wheat.
    (b) Conditions on Implementation.--The Secretary shall 
implement subsection (a)--
            (1) only with regard to production that meets 
        minimum quality criteria; and
            (2) on not more than 2,000,000 acres or the 
        equivalent volume of production.
    (c) Demand for Wheat.--To be eligible to obtain an 
incentive payment under subsection (a), a producer shall 
demonstrate to the satisfaction of the Secretary that buyers 
and end-users are available for the wheat to be covered by the 
incentive payment.

SEC. 1617. RENEWED AVAILABILITY OF MARKET LOSS ASSISTANCE AND CERTAIN 
                    EMERGENCY ASSISTANCE TO PERSONS THAT FAILED TO 
                    RECEIVE ASSISTANCE UNDER EARLIER AUTHORITIES.

    (a) Authority To Provide Assistance.--The Secretary of 
Agriculture may use such funds of the Commodity Credit 
Corporation as are necessary to provide market loss assistance 
and other emergency assistance under a provision of law 
specified in subsection (c) to persons that, as determined by 
the Secretary--
            (1) were eligible to receive the assistance under 
        the provision of law; but
            (2) did not receive the assistance before October 
        1, 2001.
    (b) Limitation.--The amount of assistance provided under a 
provision of law specified in subsection (c) and this section 
to a person shall not exceed the amount of assistance the 
person would have been eligible to receive under the provision 
had the claim of the producer under the provision been timely 
resolved.
    (c) Covered Market Loss Assistance Authorities.--The 
following provisions of law are covered by this section:
            (1) Sections 1, 2, 3, 4, and 5 of Public Law 107-25 
        (115 Stat. 201).
            (2) Sections 805, 806, and 814 of the Agriculture, 
        Rural Development, Food and Drug Administration, and 
        Related Agencies Appropriations Act, 2001 (as enacted 
        into law by Public Law 106-387; 114 Stat. 1549).
            (3) Sections 201, 202, 204(a), 204(d), 257, and 259 
        of the Agricultural Risk Protection Act of 2000 (Public 
        Law 106-224; 7 U.S.C. 1421 note).
            (4) Sections 802, 803(a), 804, and 805 of the 
        Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations 
        Act, 2000 (Public Law 106-78; 113 Stat. 1135).
            (5) The livestock indemnity program under the 
        heading ``Commodity Credit Corporation Fund'' in 
        chapter 1 of title I of the 1999 Emergency Supplemental 
        Appropriations Act (Public 106-31; 113 Stat. 59).
            (6) Section 1111(a) of the Agriculture, Rural 
        Development, Food and Drug Administration, and Related 
        Agencies Appropriations Act, 1999 (as contained in 
        section 101(a) of division A of Public Law 105-277; 112 
        Stat. 2681-44).

SEC. 1618. PRODUCER RETENTION OF ERRONEOUSLY PAID LOAN DEFICIENCY 
                    PAYMENTS AND MARKETING LOAN GAINS.

    Notwithstanding any other provision of law, the Secretary 
and the Commodity Credit Corporation shall not require 
producers in Erie County, Pennsylvania, to repay loan 
deficiency payments and marketing loan gains erroneously paid 
or determined to have been earned by the Commodity Credit 
Corporation for certain 1998 and 1999 crops under subtitle C of 
title I of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7231 et seq.). In the case of a producer who 
has already made the repayment on or before the date of the 
enactment of this Act, the Commodity Credit Corporation shall 
reimburse the producer for the full amount of the repayment.

                         TITLE II--CONSERVATION

                   Subtitle A--Conservation Security

SEC. 2001. CONSERVATION SECURITY PROGRAM.

    (a) In General.--Subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by 
inserting after chapter 1 the following:

       ``CHAPTER 2--CONSERVATION SECURITY AND FARMLAND PROTECTION

             ``Subchapter A--Conservation Security Program

``SEC. 1238. DEFINITIONS.

    ``In this subchapter:
            ``(1) Base payment.--The term `base payment' means 
        an amount that is--
                    ``(A) determined in accordance with the 
                rate described in section 1238C(b)(1)(A); and
                    ``(B) paid to a producer under a 
                conservation security contract in accordance 
                with clause (i) of subparagraph (C), (D), or 
                (E) of section 1238C(b)(1), as appropriate.
            ``(2) Beginning farmer or rancher.--The term 
        `beginning farmer or rancher' has the meaning given the 
        term under section 343(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1991(a)).
            ``(3) Conservation practice.--The term 
        `conservation practice' means a conservation farming 
        practice described in section 1238A(d)(4) that--
                    ``(A) requires planning, implementation, 
                management, and maintenance; and
                    ``(B) promotes 1 or more of the purposes 
                described in section 1238A(a).
            ``(4) Conservation security contract.--The term 
        `conservation security contract' means a contract 
        described in section 1238A(e).
            ``(5) Conservation security plan.--The term 
        `conservation security plan' means a plan described in 
        section 1238A(c).
            ``(6) Conservation security program.--The term 
        `conservation security program' means the program 
        established under section 1238A(a).
            ``(7) Enhanced payment.--The term `enhanced 
        payment' means the amount paid to a producer under a 
        conservation security contract that is equal to the 
        amount described in section 1238C(b)(1)(C)(iii).
            ``(8) Nondegradation standard.--The term 
        `nondegradation standard' means the level of measures 
        required to adequately protect, and prevent degradation 
        of, 1 or more natural resources, as determined by the 
        Secretary in accordance with the quality criteria 
        described in handbooks of the Natural Resources 
        Conservation Service.
            ``(9) Producer.--
                    ``(A) In general.--The term `producer' 
                means an owner, operator, landlord, tenant, or 
                sharecropper that--
                            ``(i) shares in the risk of 
                        producing any crop or livestock; and
                            ``(ii) is entitled to share in the 
                        crop or livestock available for 
                        marketing from a farm (or would have 
                        shared had the crop or livestock been 
                        produced).
                    ``(B) Hybrid seed growers.--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.
            ``(10) Resource-conserving crop rotation.--The term 
        `resource-conserving crop rotation' means a crop 
        rotation that--
                    ``(A) includes at least 1 resource-
                conserving crop (as defined by the Secretary);
                    ``(B) reduces erosion;
                    ``(C) improves soil fertility and tilth;
                    ``(D) interrupts pest cycles; and
                    ``(E) in applicable areas, reduces 
                depletion of soil moisture (or otherwise 
                reduces the need for irrigation).
            ``(11) Resource management system.--The term 
        `resource management system' means a system of 
        conservation practices and management relating to land 
        or water use that is designed to prevent resource 
        degradation and permit sustained use of land, water, 
        and other natural resources, as defined in accordance 
        with the technical guide of the Natural Resources 
        Conservation Service.
            ``(12) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture, acting through the Chief of 
        the Natural Resources Conservation Service.
            ``(13) Tier i conservation security contract.--The 
        term `Tier I conservation security contract' means a 
        contract described in section 1238A(d)(5)(A).
            ``(14) Tier ii conservation security contract.--The 
        term `Tier II conservation security contract' means a 
        contract described in section 1238A(d)(5)(B).
            ``(15) Tier iii conservation security contract.--
        The term `Tier III conservation security contract' 
        means a contract described in section 1238A(d)(5)(C).

``SEC. 1238A. CONSERVATION SECURITY PROGRAM.

    ``(a) In General.--The Secretary shall establish and, for 
each of fiscal years 2003 through 2007, carry out a 
conservation security program to assist producers of 
agricultural operations in promoting, as is applicable with 
respect to land to be enrolled in the program, conservation and 
improvement of the quality of soil, water, air, energy, plant 
and animal life, and any other conservation purposes, as 
determined by the Secretary.
    ``(b) Eligibility.--
            ``(1) Eligible producers.--To be eligible to 
        participate in the conservation security program (other 
        than to receive technical assistance under section 
        1238C(g) for the development of conservation security 
        contracts), a producer shall--
                    ``(A) develop and submit to the Secretary, 
                and obtain the approval of the Secretary of, a 
                conservation security plan that meets the 
                requirements of subsection (c)(1); and
                    ``(B) enter into a conservation security 
                contract with the Secretary to carry out the 
                conservation security plan.
            ``(2) Eligible land.--Except as provided in 
        paragraph (3), private agricultural land (including 
        cropland, grassland, prairie land, improved pasture 
        land, and rangeland), land under the jurisdiction of an 
        Indian tribe (as defined by the Secretary), and 
        forested land that is an incidental part of an 
        agricultural operation shall be eligible for enrollment 
        in the conservation security program.
            ``(3) Exclusions.--
                    ``(A) Conservation reserve program.--Land 
                enrolled in the conservation reserve program 
                under subchapter B of chapter 1 shall not be 
                eligible for enrollment in the conservation 
                security program.
                    ``(B) Wetlands reserve program.--Land 
                enrolled in the wetlands reserve program 
                established under subchapter C of chapter 1 
                shall not be eligible for enrollment in the 
                conservation security program.
                    ``(C) Grassland reserve program.--Land 
                enrolled in the grassland reserve program 
                established under subchapter C of chapter 2 
                shall not be eligible for enrollment in the 
                conservation security program.
                    ``(D) Conversion to cropland.--Land that is 
                used for crop production after the date of 
                enactment of this subchapter that had not been 
                planted, considered to be planted, or devoted 
                to crop production for at least 4 of the 6 
                years preceding that date (except for land 
                enrolled in the conservation reserve program 
                under subchapter B of chapter 1) or that has 
                been maintained using long-term crop rotation 
                practices, as determined by the Secretary, 
                shall not be the basis for any payment under 
                the conservation security program.
            ``(4) Economic uses.--The Secretary shall permit a 
        producer to implement, with respect to all eligible 
        land covered by a conservation security plan, economic 
        uses that--
                    ``(A) maintain the agricultural nature of 
                the land; and
                    ``(B) are consistent with the natural 
                resource and conservation objectives of the 
                conservation security program.
    ``(c) Conservation Security Plans.--
            ``(1) In general.--A conservation security plan 
        shall--
                    ``(A) identify the designated land and 
                resources to be conserved under the 
                conservation security plan;
                    ``(B) describe the tier of conservation 
                security contract, and the particular 
                conservation practices to be implemented, 
                maintained, or improved, in accordance with 
                subsection (d) on the land covered by the 
                conservation security contract for the 
                specified term; and
                    ``(C) contain a schedule for the 
                implementation, maintenance, or improvement of 
                the conservation practices described in the 
                conservation security plan during the term of 
                the conservation security contract.
            ``(2) Resource planning.--The Secretary may assist 
        producers that enter into conservation security 
        contracts in developing a comprehensive, long-term 
        strategy for improving and maintaining all natural 
        resources of the agricultural operation of the 
        producer.
    ``(d) Conservation Contracts and Practices.--
            ``(1) In general.--
                    ``(A) Establishment of tiers.--The 
                Secretary shall establish, and offer to 
                eligible producers, 3 tiers of conservation 
                contracts under which a payment under this 
                subchapter may be received.
                    ``(B) Eligible conservation practices.--
                            ``(i) In general.--The Secretary 
                        shall make eligible for payment under a 
                        conservation security contract land 
                        management, vegetative, and structural 
                        practices.
                            ``(ii) Determination.--In 
                        determining the eligibility of a 
                        practice described in clause (i), the 
                        Secretary shall require, to the maximum 
                        extent practicable, that the lowest 
                        cost alternatives be used to fulfill 
                        the purposes of the conservation 
                        security plan, as determined by the 
                        Secretary.
            ``(2) On-farm research and demonstration or pilot 
        testing.--With respect to land enrolled in the 
        conservation security program, the Secretary may 
        approve a conservation security plan that includes--
                    ``(A) on-farm conservation research and 
                demonstration activities; and
                    ``(B) pilot testing of new technologies or 
                innovative conservation practices.
            ``(3) Use of handbook and guides; state and local 
        conservation concerns.--
                    ``(A) Use of handbook and guides.--In 
                determining eligible conservation practices and 
                the criteria for implementing or maintaining 
                the conservation practices under the 
                conservation security program, the Secretary 
                shall use the National Handbook of Conservation 
                Practices of the Natural Resources Conservation 
                Service.
                    ``(B) State and local conservation 
                priorities.--The conservation priorities of a 
                State or locality in which an agricultural 
                operation is situated shall be determined by 
                the State Conservationist, in consultation 
                with--
                            ``(i) the State technical committee 
                        established under subtitle G; and
                            ``(ii) local agricultural producers 
                        and conservation working groups.
            ``(4) Conservation practices.--Conservation 
        practices that may be implemented by a producer under a 
        conservation security contract (as appropriate for the 
        agricultural operation of a producer) include--
                    ``(A) nutrient management;
                    ``(B) integrated pest management;
                    ``(C) water conservation (including through 
                irrigation) and water quality management;
                    ``(D) grazing, pasture, and rangeland 
                management;
                    ``(E) soil conservation, quality, and 
                residue management;
                    ``(F) invasive species management;
                    ``(G) fish and wildlife habitat 
                conservation, restoration, and management;
                    ``(H) air quality management;
                    ``(I) energy conservation measures;
                    ``(J) biological resource conservation and 
                regeneration;
                    ``(K) contour farming;
                    ``(L) strip cropping;
                    ``(M) cover cropping;
                    ``(N) controlled rotational grazing;
                    ``(O) resource-conserving crop rotation;
                    ``(P) conversion of portions of cropland 
                from a soil-depleting use to a soil-conserving 
                use, including production of cover crops;
                    ``(Q) partial field conservation practices;
                    ``(R) native grassland and prairie 
                protection and restoration; and
                    ``(S) any other conservation practices that 
                the Secretary determines to be appropriate and 
                comparable to other conservation practices 
                described in this paragraph.
            ``(5) Tiers.--Subject to paragraph (6), to carry 
        out this subsection, the Secretary shall establish the 
        following 3 tiers of conservation contracts:
                    ``(A) Tier i conservation security 
                contracts.--A conservation security plan for 
                land enrolled under a Tier I conservation 
                security contract shall--
                            ``(i) be for a period of 5 years; 
                        and
                            ``(ii) include conservation 
                        practices appropriate for the 
                        agricultural operation, that, at a 
                        minimum (as determined by the 
                        Secretary)--
                                    ``(I) address at least 1 
                                significant resource of concern 
                                for the enrolled portion of the 
                                agriculturaloperation at a 
level that meets the appropriate nondegradation standard; and
                                    ``(II) cover active 
                                management of conservation 
                                practices that are implemented 
                                or maintained under the 
                                conservation security contract.
                    ``(B) Tier ii conservation security 
                contracts.--A conservation security plan for 
                land enrolled under a Tier II conservation 
                security contract shall--
                            ``(i) be for a period of not less 
                        than 5 nor more than 10 years, as 
                        determined by the producer;
                            ``(ii) include conservation 
                        practices appropriate for the 
                        agricultural operation, that, at a 
                        minimum--
                                    ``(I) address at least 1 
                                significant resource of concern 
                                for the entire agricultural 
                                operation, as determined by the 
                                Secretary, at a level that 
                                meets the appropriate 
                                nondegradation standard; and
                                    ``(II) cover active 
                                management of conservation 
                                practices that are implemented 
                                or maintained under the 
                                conservation security contract.
                    ``(C) Tier iii conservation security 
                contracts.--A conservation security plan for 
                land enrolled under a Tier III conservation 
                security contract shall--
                            ``(i) be for a period of not less 
                        than 5 nor more than 10 years, as 
                        determined by the producer; and
                            ``(ii) include conservation 
                        practices appropriate for the 
                        agricultural operation that, at a 
                        minimum--
                                    ``(I) apply a resource 
                                management system that meets 
                                the appropriate nondegradation 
                                standard for all resources of 
                                concern of the entire 
                                agricultural operation, as 
                                determined by the Secretary; 
                                and
                                    ``(II) cover active 
                                management of conservation 
                                practices that are implemented 
                                or maintained under the 
                                conservation security contract.
            ``(6) Minimum requirements.--The minimum 
        requirements for each tier of conservation contracts 
        implemented under paragraph (5) shall be determined and 
        approved by the Secretary.
    ``(e) Conservation Security Contracts.--
            ``(1) In general.--On approval of a conservation 
        security plan of a producer, the Secretary shall enter 
        into a conservation security contract with the producer 
        to enroll the land covered by the conservation security 
        plan in the conservation security program.
            ``(2) Modification.--
                    ``(A) Optional modifications.--A producer 
                may apply to the Secretary for a modification 
                of the conservation security contract of the 
                producer that is consistent with the purposes 
                of the conservation security program.
                    ``(B) Other modifications.--
                            ``(i) In general.--The Secretary 
                        may, in writing, require a producer to 
                        modify a conservation security contract 
                        before the expiration of the 
                        conservation security contract if the 
                        Secretary determines that a change made 
                        to the type, size, management, or other 
                        aspect of the agricultural operation of 
                        the producer would, without the 
                        modification of the contract, 
                        significantly interfere with achieving 
                        the purposes of the conservation 
                        security program.
                            ``(ii) Participation in other 
                        programs.--If appropriate payment 
                        reductions and other adjustments (as 
                        determined by the Secretary) are made 
                        to the conservation security contract 
                        of a producer, the producer may--
                                    ``(I) simultaneously 
                                participate in--
                                            ``(aa) the 
                                        conservation security 
                                        program;
                                            ``(bb) the 
                                        conservation reserve 
                                        program under 
                                        subchapter B of chapter 
                                        1; and
                                            ``(cc) the wetlands 
                                        reserve program under 
                                        subchapter C of chapter 
                                        1; and
                                    ``(II) may remove land 
                                enrolled in the conservation 
                                security program for enrollment 
                                in a program described in item 
                                (bb) or (cc) of subclause (I).
            ``(3) Termination.--
                    ``(A) Optional termination.--A producer may 
                terminate a conservation security contract and 
                retain payments received under the conservation 
                security contract, if--
                            ``(i) the producer is in full 
                        compliance with the terms and 
                        conditions (including any maintenance 
                        requirements) of the conservation 
                        security contract as of the date of the 
                        termination; and
                            ``(ii) the Secretary determines 
                        that termination of the contract would 
                        not defeat the purposes of the 
                        conservation security plan of the 
                        producer.
                    ``(B) Other termination.--A producer that 
                is required to modify a conservation security 
                contract under paragraph (2)(B)(i) may, in lieu 
                of modifying the contract--
                            ``(i) terminate the conservation 
                        security contract; and
                            ``(ii) retain payments received 
                        under the conservation security 
                        contract, if the producer has fully 
                        complied with the terms and conditions 
                        of the conservation security contract 
                        before termination of the contract, as 
                        determined by the Secretary.
            ``(4) Renewal.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), at the option of a producer, 
                the conservation security contract of the 
                producer may be renewed for an additional 
                period of not less than 5 nor more than 10 
                years.
                    ``(B) Tier i renewals.--In the case of a 
                Tier I conservation security contract of a 
                producer, the producer may renew the contract 
                only if the producer agrees--
                            ``(i) to apply additional 
                        conservation practices that meet the 
                        nondegradation standard on land already 
                        enrolled in the conservation security 
                        program; or
                            ``(ii) to adopt new conservation 
                        practices with respect to another 
                        portion of the agricultural operation 
                        that address resource concerns and meet 
                        the nondegradation standard under the 
                        terms of the Tier I conservation 
                        security contract.
    ``(f) Noncompliance Due to Circumstances Beyond the Control 
of Producers.--The Secretary shall include in the conservation 
security contract a provision, and may permit modification of a 
conservation security contract under subsection (e)(1), to 
ensure that a producer shall not be considered in violation of 
a conservation security contract for failure to comply with the 
conservation security contract due to circumstances beyond the 
control of the producer, including a disaster or related 
condition, as determined by the Secretary.

``SEC. 1238B. DUTIES OF PRODUCERS.

    ``Under a conservation security contract, a producer shall 
agree, during the term of the conservation security contract--
            ``(1) to implement the applicable conservation 
        security plan approved by the Secretary;
            ``(2) to maintain, and make available to the 
        Secretary at such times as the Secretary may request, 
        appropriate records showing the effective and timely 
        implementation of the conservation security plan;
            ``(3) not to engage in any activity that would 
        interfere with the purposes of the conservation 
        security program; and
            ``(4) on the violation of a term or condition of 
        the conservation security contract--
                    ``(A) if the Secretary determines that the 
                violation warrants termination of the 
                conservation security contract--
                            ``(i) to forfeit all rights to 
                        receive payments under the conservation 
                        security contract; and
                            ``(ii) to refund to the Secretary 
                        all or a portion of the payments 
                        received by the producer under the 
                        conservation security contract, 
                        including any advance payments and 
                        interest on the payments, as determined 
                        by the Secretary; or
                    ``(B) if the Secretary determines that the 
                violation does not warrant termination of the 
                conservation security contract, to refund to 
                the Secretary, or accept adjustments to, the 
                payments provided to the producer, as the 
                Secretary determines to be appropriate.

``SEC. 1238C. DUTIES OF THE SECRETARY.

    ``(a) Timing of Payments.--The Secretary shall make 
payments under a conservation security contract as soon as 
practicable after October 1 of each fiscal year.
    ``(b) Annual Payments.--
            ``(1) Criteria for determining amount of 
        payments.--
                    ``(A) Base payment.--A base payment under 
                this paragraph shall be (as determined by the 
                Secretary)--
                            ``(i) the average national per-acre 
                        rental rate for a specific land use 
                        during the 2001 crop year; or
                            ``(ii) another appropriate rate for 
                        the 2001 crop year that ensures 
                        regional equity.
                    ``(B) Payments.--A payment for a 
                conservation practice under this paragraph 
                shall be determined in accordance with 
                subparagraphs (C) through (E).
                    ``(C) Tier i conservation security 
                contracts.--The payment for a Tier I 
                conservation security contract shall consist of 
                the total of the following amounts:
                            ``(i) An amount equal to 5 percent 
                        of the applicable base payment for land 
                        covered by the contract.
                            ``(ii) An amount that does not 
                        exceed 75 percent (or, in the case of a 
                        beginning farmer or rancher, 90 
                        percent) of the average county costs of 
                        practices for the 2001 crop year that 
                        are included in the conservation 
                        security contract, as determined by the 
                        Secretary, including the costs of--
                                    ``(I) the adoption of new 
                                management, vegetative, and 
                                land-based structural 
                                practices;
                                    ``(II) the maintenance of 
                                existing land management and 
                                vegetative practices; and
                                    ``(III) the maintenance of 
                                existing land-based structural 
                                practices that are approved by 
                                the Secretary but not already 
                                covered by a Federal or State 
                                maintenance requirement.
                            ``(iii) An enhanced payment that is 
                        determined by the Secretary in a manner 
                        that ensures equity across regions of 
                        the United States, if the producer--
                                    ``(I) implements or 
                                maintains multiple conservation 
                                practices that exceed minimum 
                                requirements for the applicable 
                                tier of participation 
                                (including practices that 
                                involve a change in land use, 
                                such as resource-conserving 
                                crop rotation, managed 
                                rotational grazing, or 
                                conservation buffer practices);
                                    ``(II) addresses local 
                                conservation priorities in 
                                addition to resources of 
                                concern for the agricultural 
                                operation;
                                    ``(III) participates in an 
                                on-farm conservation research, 
                                demonstration, or pilot 
                                project;
                                    ``(IV) participates in a 
                                watershed or regional resource 
                                conservation plan that involves 
                                at least 75 percent of 
                                producers in a targeted area; 
                                or
                                    ``(V) carries out 
                                assessment and evaluation 
                                activities relating to 
                                practices included in a 
                                conservation security plan.
                    ``(D) Tier ii conservation security 
                contracts.--The payment for a Tier II 
                conservation security contract shall consist of 
                the total of the following amounts:
                            ``(i) An amount equal to 10 percent 
                        of the applicable base payment for land 
                        covered by the conservation security 
                        contract.
                            ``(ii) An amount that does not 
                        exceed 75 percent (or, in the case of a 
                        beginning farmer or rancher, 90 
                        percent) of the average county cost of 
                        adopting or maintaining practices for 
                        the 2001 crop year that are included in 
                        the conservation security contract, as 
                        described in subparagraph (C)(ii).
                            ``(iii) An enhanced payment that is 
                        determined in accordance with 
                        subparagraph (C)(iii).
                    ``(E) Tier iii conservation security 
                contracts.--The payment for a Tier III 
                conservation security contract shall consist of 
                the total of the following amounts:
                            ``(i) An amount equal to 15 percent 
                        of the base payment for land covered by 
                        the conservation security contract.
                            ``(ii) An amount that does not 
                        exceed 75 percent (or, in the case of a 
                        beginning farmer or rancher, 90 
                        percent) of the average county cost of 
                        adopting or maintaining practices for 
                        the 2001 crop year that are included in 
                        the conservation security contract, as 
                        described in subparagraph (C)(ii).
                            ``(iii) An enhanced payment that is 
                        determined in accordance with 
                        subparagraph (C)(iii).
            ``(2) Limitation on payments.--
                    ``(A) In general.--Subject to paragraphs 
                (1) and (3), the Secretary shall make an annual 
                payment, directly or indirectly, to an 
                individual or entity covered by a conservation 
                security contract in an amount not to exceed--
                            ``(i) in the case of a Tier I 
                        conservation security contract, 
                        $20,000;
                            ``(ii) in the case of a Tier II 
                        conservation security contract, 
                        $35,000; or
                            ``(iii) in the case of a Tier III 
                        conservation security contract, 
                        $45,000.
                    ``(B) Limitation on base payments.--In 
                applying the payment limitation under each of 
                clauses (i), (ii), and (iii) of subparagraph 
                (A), an individual or entity may not receive, 
                directly or indirectly, payments described in 
                clause (i) of paragraph (1)(C), (1)(D), or 
                (1)(E), as appropriate, in an amount that 
                exceeds--
                            ``(i) in the case of Tier I 
                        contracts, 25 percent of the applicable 
                        payment limitation; or
                            ``(ii) in the case of Tier II 
                        contracts and Tier III contracts, 30 
                        percent of the applicable payment 
                        limitation.
                    ``(C) Other usda payments.--A producer 
                shall not receive payments under the 
                conservation security program and any other 
                conservation program administered by the 
                Secretary for the same practices on the same 
                land.
                    ``(D) Commensurate share.--To be eligible 
                to receive a payment under this subchapter, an 
                individual or entity shall make contributions 
                (including contributions of land, labor, 
                management, equipment, or capital) to the 
                operation of the farm that are at least 
                commensurate with the share of the proceeds of 
                the operation of the individual or entity.
            ``(3) Equipment or facilities.--A payment to a 
        producer under this subchapter shall not be provided 
        for--
                    ``(A) construction or maintenance of animal 
                waste storage or treatment facilities or 
                associated waste transport or transfer devices 
                for animal feeding operations; or
                    ``(B) the purchase or maintenance of 
                equipment or a non-land based structure that is 
                not integral to a land-based practice, as 
                determined by the Secretary.
    ``(c) Minimum Practice Requirement.--In determining a 
payment under subsection (b) for a producer that receives a 
payment under another program administered by the Secretary 
that is contingent on complying with requirements under 
subtitle B or C (relating to the use of highly erodible land or 
wetland), a payment under this subchapter on land subject to 
those requirements shall be for practices only to the extent 
that the practices exceed minimum requirements for the producer 
under those subtitles, as determined by the Secretary.
    ``(d) Regulations.--The Secretary shall promulgate 
regulations that--
            ``(1) provide for adequate safeguards to protect 
        the interests of tenants and sharecroppers, including 
        provision for sharing payments, on a fair and equitable 
        basis; and
            ``(2) prescribe such other rules as the Secretary 
        determines to be necessary to ensure a fair and 
        reasonable application of the limitations established 
        under subsection (b).
    ``(e) Transfer or Change of Interest in Land Subject to 
Conservation Security Contract.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the transfer, or change in the interest, of a 
        producer in land subject to a conservation security 
        contract shall result in the termination of the 
        conservation security contract.
            ``(2) Transfer of duties and rights.--Paragraph (1) 
        shall not apply if, not later than 60 days after the 
        date of the transfer or change in the interest in land, 
        the transferee of the land provides written notice to 
        the Secretary that all duties and rights under the 
        conservation security contract have been transferred 
        to, and assumed by, the transferee.
    ``(f) Enrollment Procedure.--In entering into conservation 
security contracts with producers under this subchapter, the 
Secretary shall not use competitive bidding or any similar 
procedure.
    ``(g) Technical Assistance.--For each of fiscal years 2003 
through 2007, the Secretary shall provide technical assistance 
to producers for the development and implementation of 
conservation security contracts, in an amount not to exceed 15 
percent of amounts expended for the fiscal year.''.
    (b) Regulations.--Not later than 270 days after the date of 
enactment of this Act, the Secretary of Agriculture shall 
promulgate regulations implementing the amendment made by 
subsection (a).

SEC. 2002. CONSERVATION COMPLIANCE.

    (a) Highly Erodible Land.--Section 1211 of the Food 
Security Act of 1985 (16 U.S.C. 3811) is amended--
            (1) by striking the section heading and all that 
        follows through ``Except as provided in'' and inserting 
        the following:

``SEC. 1211. PROGRAM INELIGIBILITY.

    ``(a) In General.--Except as provided in''; and
            (2) by adding at the end the following:
    ``(b) Highly Erodible Land.--The Secretary shall have, and 
shall not delegate to any private person or entity, authority 
to determine whether a person has complied with this 
subtitle.''.
    (b) Wetland.--Section 1221 of the Food Security Act of 1985 
(16 U.S.C. 3821) is amended by adding at the end the following:
    ``(e) Wetland.--The Secretary shall have, and shall not 
delegate to any private person or entity, authority to 
determine whether a person has complied with this subtitle.''.

SEC. 2003. PARTNERSHIPS AND COOPERATION.

    Section 1243 of the Food Security Act of 1985 (16 U.S.C. 
3843) is amended by adding at the end the following:
    ``(f) Partnerships and Cooperation.--
            ``(1) In general.--In carrying out any program 
        under subtitle D, the Secretary may use resources 
        provided under that subtitle to enter into stewardship 
        agreements with State and local agencies, Indian 
        tribes, and nongovernmental organizations and to 
        designate special projects, as recommended by the State 
        Conservationist, after consultation with the State 
        technical committee, to enhance technical and financial 
        assistance provided to owners, operators, and producers 
        to address natural resource issues related to 
        agricultural production.
            ``(2) Criteria for special projects.--The purposes 
        of special projects carried out under this subsection 
        shall be to encourage--
                    ``(A) producers to cooperate in the 
                installation and maintenance of conservation 
                practices that affect multiple agricultural 
                operations;
                    ``(B) the sharing of information and 
                technical and financial resources among 
                producers;
                    ``(C) cumulative conservation benefits in 
                geographic areas; and
                    ``(D) the development and demonstration of 
                innovative conservation methods.
            ``(3) Incentives.--To realize the purposes of the 
        special projects under paragraph (1), the Secretary may 
        provide special incentives to owners, operators, and 
        producers participating in the special projects to 
        encourage partnerships and enrollments of optimal 
        conservation value.
            ``(4) Flexibility.--
                    ``(A) In general.--The Secretary may enter 
                into stewardship agreements with States 
                (including State agencies and units of local 
                government), Indian tribes, and nongovernmental 
                organizations that have a history of working 
                with agricultural producers to allow greater 
                flexibility to adjust the application of 
                eligibility criteria, approved practices, 
                innovative conservation practices, and other 
                elements of the programs under this title to 
                better reflect unique local circumstances and 
                purposes in a manner that is consistent with--
                            ``(i) conservation enhancement and 
                        long-term productivity of the natural 
                        resource base; and
                            ``(ii) the purposes and 
                        requirements of this title.
                    ``(B) Plan.--Each party to a stewardship 
                agreement under subparagraph (A) shall submit 
                to the Secretary, for approval by the 
                Secretary, a special project area plan for each 
                program to be carried out by the party that 
                includes--
                            ``(i) a description of the 
                        requested resources and adjustments to 
                        program implementation (including a 
                        description of how those adjustments 
                        will accelerate the achievement of 
                        conservation benefits);
                            ``(ii) an analysis of the 
                        contribution those adjustments will 
                        make to the effectiveness of programs 
                        in achieving the purposes of the 
                        special project;
                            ``(iii) a timetable for 
                        reevaluating the need for or 
                        performance of the proposed 
                        adjustments;
                            ``(iv) a description of non-Federal 
                        programs and resources that will 
                        contribute to achieving the purposes of 
                        the special project; and
                            ``(v) a plan for the evaluation of 
                        progress toward the purposes of the 
                        special project.
            ``(5) Funding.--
                    ``(A) In general.--In addition to resources 
                from programs under subtitle D, subject to 
                subparagraph (B), the Secretary shall use not 
                more than 5 percent of the funds made available 
                for each fiscal year under section 1241(a) to 
                carry out activities that are authorized under 
                conservation programs under subtitle D.
                    ``(B) Unused funding.--Any funds made 
                available for a fiscal year under subparagraph 
                (A) that are not obligated by April 1 of the 
                fiscal year may be used to carry out other 
                activities under conservation programs under 
                subtitle D during the fiscal year in which the 
                funding becomes available.''.

SEC. 2004. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    (a) In General.--Subtitle E of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3841 et seq.) is amended by 
adding at the end the following:

``SEC. 1244. ADMINISTRATIVE REQUIREMENTS FOR CONSERVATION PROGRAMS.

    ``(a) Beginning Farmers and Ranchers and Indian Tribes.--In 
carrying out any conservation program administered by the 
Secretary, the Secretary may provide to beginning farmers and 
ranchers and Indian tribes (as those terms are defined in 
section 1238) and limited resource agricultural producers 
incentives to participate in the conservation program to--
            ``(1) foster new farming and ranching 
        opportunities; and
            ``(2) enhance environmental stewardship over the 
        long term.
    ``(b) Privacy of Personal Information Relating to Natural 
Resources Conservation Programs.--
            ``(1) Information received for technical and 
        financial assistance.--
                    ``(A) In general.--In accordance with 
                section 552(b)(3) of title 5, United States 
                Code, except as provided in subparagraph (C) 
                and paragraph (2), information described in 
                subparagraph (B)--
                            ``(i) shall not be considered to be 
                        public information; and
                            ``(ii) shall not be released to any 
                        person or Federal, State, local agency 
                        or Indian tribe (as defined by the 
                        Secretary) outside the Department of 
                        Agriculture.
                    ``(B) Information.--The information 
                referred to in subparagraph (A) is 
                information--
                            ``(i) provided to the Secretary or 
                        a contractor of the Secretary 
                        (including information provided under 
                        subtitle D) for the purpose of 
                        providing technical or financial 
                        assistance to an owner, operator, or 
                        producer with respect to any natural 
                        resources conservation program 
                        administered by the Natural Resources 
                        Conservation Service or the Farm 
                        Service Agency; and
                            ``(ii) that is proprietary (within 
                        the meaning of section 552(b)(4) of 
                        title 5, United States Code) to the 
                        agricultural operation or land that is 
                        a part of an agricultural operation of 
                        the owner, operator, or producer.
                    ``(C) Exception.--Nothing in this section 
                affects the availability of payment information 
                (including payment amounts and the names and 
                addresses of recipients of payments) under 
                section 552 of title 5, United States Code.
            ``(2) Exceptions.--
                    ``(A) Release and disclosure for 
                enforcement.--The Secretary may release or 
                disclose to the Attorney General information 
                covered by paragraph (1) to the extent 
                necessary to enforce the natural resources 
                conservation programs referred to in paragraph 
                (1)(B)(i).
                    ``(B) Disclosure to cooperating persons and 
                agencies.--
                            ``(i) In general.--The Secretary 
                        may release or disclose information 
                        covered by paragraph (1) to a person or 
                        Federal, State, local, or tribal agency 
                        working in cooperation with the 
                        Secretary in providing technical and 
                        financial assistance described in 
                        paragraph (1)(B)(i) or collecting 
                        information from data gathering sites.
                            ``(ii) Use of information.--The 
                        person or Federal, State, local, or 
                        tribal agency that receives information 
                        described in clause (i) may release the 
                        information only for the purpose of 
                        assisting the Secretary--
                                    ``(I) in providing the 
                                requested technical or 
                                financial assistance; or
                                    ``(II) in collecting 
                                information from data gathering 
                                sites.
                    ``(C) Statistical and aggregate 
                information.--Information covered by paragraph 
                (1) may be disclosed to the public if the 
                information has been transformed into a 
                statistical or aggregate form without naming 
                any--
                            ``(i) individual owner, operator, 
                        or producer; or
                            ``(ii) specific data gathering 
                        site.
                    ``(D) Consent of owner, operator, or 
                producer.--
                            ``(i) In general.--An owner, 
                        operator, or producer may consent to 
                        the disclosure of information described 
                        in paragraph (1).
                            ``(ii) Condition of other 
                        programs.--The participation of the 
                        owner, operator, or producer in, and 
                        the receipt of any benefit by the 
                        owner, operator, or producer under, 
                        this title or any other program 
                        administered by the Secretary may not 
                        be conditioned on the owner, operator, 
                        or producer providing consent under 
                        this paragraph.
            ``(3) Violations; penalties.--Section 1770(c) shall 
        apply with respect to the release of information 
        collected in any manner or for any purpose prohibited 
        by this subsection.
            ``(4) Data collection, disclosure, and review.--
        Nothing in this subsection--
                    ``(A) affects any procedure for data 
                collection or disclosure through the National 
                Resources Inventory; or
                    ``(B) limits the authority of Congress or 
                the General Accounting Office to review 
                information collected or disclosed under this 
                subsection.''.
    (b) National Resources Inventory.--Section 1770 of the Food 
Security Act of 1985 (7 U.S.C. 2276) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``or'' at 
                the end;
                    (B) in paragraph (2), by striking the 
                period and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(3) in the case of information collected under 
        the authority described in subsection (d)(12), disclose 
        the information to any person or any Federal, State, 
        local, or tribal agency outside the Department of 
        Agriculture, unless the information has been converted 
        into a statistical or aggregate form that does not 
        allow the identification of the person that supplied 
        particular information.''; and
            (2) in subsection (d)--
                    (A) in paragraph (9), by striking ``or'' at 
                the end;
                    (B) in paragraph (11), by striking the 
                period and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(12) section 302 of the Rural Development Act of 
        1972 (7 U.S.C. 1010a) regarding the authority to 
        collect data for the National Resources Inventory.''.

SEC. 2005. REFORM AND ASSESSMENT OF CONSERVATION PROGRAMS.

    (a) In General.--The Secretary of Agriculture shall develop 
a plan to coordinate land retirement and agricultural working 
land conservation programs that are administered by the 
Secretary to achieve the goals of--
            (1) eliminating redundancy;
            (2) streamlining program delivery; and
            (3) improving services provided to agricultural 
        producers (including the reevaluation of the provision 
        of technical assistance).
    (b) Report.--Not later than December 31, 2005, the 
Secretary of Agriculture shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate, a report 
that describes--
            (1) the plan developed under subsection (a); and
            (2) the means by which the Secretary intends to 
        achieve the goals described in subsection (a).

SEC. 2006. CONFORMING AMENDMENTS.

    (a) Chapter 1 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by 
striking the chapter heading and inserting the following:

     ``CHAPTER 1--COMPREHENSIVE CONSERVATION ENHANCEMENT PROGRAM''.

    (b) Section 1230 of the Food Security Act of 1985 (16 
U.S.C. 3830) is amended--
            (1) in the section heading, by striking 
        ``ENVIRONMENTAL CONSERVATION ACREAGE RESERVE PROGRAM'' 
        and inserting ``COMPREHENSIVE CONSERVATION ENHANCEMENT 
        PROGRAM'';
            (2) in subsection (a)(1), by striking ``an 
        environmental conservation acreage reserve program'' 
        and inserting ``a comprehensive conservation 
        enhancement program'';
            (3) by striking subsection (c); and
            (4) by striking ``ECARP'' each place it appears and 
        inserting ``CCEP''.
    (c) Section 1230A of the Food Security Act of 1985 (16 
U.S.C. 3830a) is repealed.
    (d) Section 1243 of the Food Security Act of 1985 (16 
U.S.C. 3843) is amended by striking the section heading and 
inserting the following:

``SEC. 1243. ADMINISTRATION OF CCEP.''.

                    Subtitle B--Conservation Reserve

SEC. 2101. CONSERVATION RESERVE PROGRAM.

    (a) In General.--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.) is amended to read as follows:

                  ``Subchapter B--Conservation Reserve

``SEC. 1231. CONSERVATION RESERVE.

    ``(a) In General.--Through the 2007 calendar year, the 
Secretary shall formulate and carry out a conservation reserve 
program under which land is enrolled through the use of 
contracts to assist owners and operators of land specified in 
subsection (b) to conserve and improve the soil, water, and 
wildlife resources of such land.
    ``(b) Eligible Land.--The Secretary may include in the 
program established under this subchapter--
            ``(1) highly erodible cropland that--
                    ``(A)(i) if permitted to remain untreated 
                could substantially reduce the agricultural 
                production capability for future generations; 
                or
                    ``(ii) cannot be farmed in accordance with 
                a plan that complies with the requirements of 
                subtitle B; and
                    ``(B) the Secretary determines had a 
                cropping history or was considered to be 
                planted for 4 of the 6 years preceding the date 
                of enactment of the Farm Security and Rural 
                Investment Act of 2002 (except for land 
                enrolled in the conservation reserve program as 
                of that date).
            ``(2) marginal pasture land converted to wetland or 
        established as wildlife habitat prior to November 28, 
        1990;
            ``(3) marginal pasture land to be devoted to 
        appropriate vegetation, including trees, in or near 
        riparian areas, or devoted to similar water quality 
        purposes (including marginal pastureland converted to 
        wetland or established as wildlife habitat);
            ``(4) cropland that is otherwise ineligible if the 
        Secretary determines that--
                    ``(A) if permitted to remain in 
                agricultural production, the land would--
                            ``(i) contribute to the degradation 
                        of soil, water, or air quality; or
                            ``(ii) pose an on-site or off-site 
                        environmental threat to soil, water, or 
                        air quality;
                    ``(B) the land is a--
                            ``(i) newly-created, permanent 
                        grass sod waterway; or
                            ``(ii) a contour grass sod strip 
                        established and maintained as part of 
                        an approved conservation plan;
                    ``(C) the land will be devoted to newly 
                established living snow fences, permanent 
                wildlife habitat, windbreaks, shelterbelts, or 
                filterstrips devoted to trees or shrubs; or
                    ``(D) the land poses an off-farm 
                environmental threat, or a threat of continued 
                degradation of productivity due to soil 
                salinity, if permitted to remain in production; 
                and
                    ``(E) enrollment of the land would 
                facilitate a net savings in groundwater or 
                surface water resources of the agricultural 
                operation of the producer;
            ``(5) the portion of land in a field not enrolled 
        in the conservation reserve in a case in which more 
        than 50 percent of the land in the field is enrolled as 
        a buffer, if--
                    ``(A) the land is enrolled as part of the 
                buffer; and
                    ``(B) the remainder of the field is--
                            ``(i) infeasible to farm; and
                            ``(ii) enrolled at regular rental 
                        rates.
    ``(c) Planting Status of Certain Land.--For purposes of 
determining the eligibility of land to be placed in the 
conservation reserve established under this subchapter, land 
shall be considered to be planted to an agricultural commodity 
during a crop year if--
            ``(1) during the crop year, the land was devoted to 
        a conserving use; or
            ``(2)(A) during the crop year or during any of the 
        2 years preceding the crop year, the land was enrolled 
        in the water bank program; and
            ``(B) the contract of the owner or operator of the 
        cropland expired or will expire in calendar year 2000, 
        2001, or 2002.
    ``(d) Maximum Enrollment.--The Secretary may maintain up to 
39,200,000 acres in the conservation reserve at any 1 time 
during the 2002 through 2007 calendar years (including 
contracts extended by the Secretary pursuant to section 1437(c) 
of the Food, Agriculture, Conservation, and Trade Act of 1990 
(16 U.S.C. 3831 note; Public Law 101-624)).
    ``(e) Duration of Contract.--
            ``(1) In general.--For the purpose of carrying out 
        this subchapter, the Secretary shall enter into 
        contracts of not less than 10, nor more than 15, years.
            ``(2) Certain land.--
                    ``(A) In general.--In the case of land 
                devoted to hardwood trees, shelterbelts, 
                windbreaks, or wildlife corridors under a 
                contract entered into under this subchapter 
                after October 1, 1990, and land devoted to such 
                uses under contracts modified under section 
                1235A, the owner or operator of the land may, 
                within the limitations prescribed under this 
                section, specify the duration of the contract.
                    ``(B) Hardwood trees.--In the case of land 
                that is devoted to hardwood trees under a 
                contract entered into under this subchapter 
                prior to October 1, 1990, the Secretary may 
                extend the contract for a term of not to exceed 
                5 years, as agreed to by the owner or operator 
                of such land and the Secretary.
            ``(3) 1-year extension.--In the case of a contract 
        described in paragraph (1) the term of which expires 
        during calendar year 2002, an owner or operator of land 
        enrolled under the contract may extend the contract for 
        1 additional year.
    ``(f) Conservation Priority Areas.--
            ``(1) Designation.--On application by the 
        appropriate State agency, the Secretary shall designate 
        watershed areas of the Chesapeake Bay Region 
        (Pennsylvania, Maryland, and Virginia), the Great Lakes 
        Region, the Long Island Sound Region, and other areas 
        of special environmental sensitivity as conservation 
        priority areas.
            ``(2) Eligible watersheds.--Watersheds eligible for 
        designation under this subsection shall include areas 
        with actual and significant adverse water quality or 
        habitat impacts related to agricultural production 
        activities.
            ``(3) Expiration.--Conservation priority area 
        designation under this subsection shall expire after 5 
        years, subject to redesignation, except that the 
        Secretary may withdraw a watershed's designation--
                    ``(A) on application by the appropriate 
                State agency; or
                    ``(B) in the case of an area covered by 
                this subsection, if the Secretary finds that 
                the area no longer contains actual and 
                significant adverse water quality or habitat 
                impacts related to agricultural production 
                activities.
            ``(4) Duty of secretary.--In carrying out this 
        subsection, the Secretary shall attempt to maximize 
        water quality and habitat benefits in the watersheds 
        described in paragraph (1) by promoting a significant 
        level of enrollment of land within the watersheds in 
        the program under this subchapter by whatever means the 
        Secretary determines are appropriate and consistent 
        with the purposes of this subchapter.
    ``(g) Multi-Year Grasses and Legumes.--For purposes of this 
subchapter, alfalfa and other multi-year grasses and legumes in 
a rotation practice, approved by the Secretary, shall be 
considered agricultural commodities.
    ``(h) Pilot Program for Enrollment of Wetland and Buffer 
Acreage in Conservation Reserve.--
            ``(1) Program.--
                    ``(A) In general.--During the 2002 through 
                2007 calendar years, the Secretary shall carry 
                out a program in each State under which the 
                Secretary shall include eligible acreage 
                described in paragraph (2) in the program 
                established under this subchapter.
                    ``(B) Participation among states.--The 
                Secretary shall ensure, to the maximum extent 
                practicable, that owners and operators in each 
                State have an equitable opportunity to 
                participate in the pilot program established 
                under this subsection.
            ``(2) Eligible acreage.--
                    ``(A) In general.--Subject to subparagraphs 
                (B) through (D), an owner or operator may 
                enroll in the conservation reserve under this 
                subsection--
                            ``(i) a wetland (including a 
                        converted wetland described in section 
                        1222(b)(1)(A)) that was cropped during 
                        at least 3 of the immediately preceding 
                        10 crop years; and
                            ``(ii) buffer acreage that--
                                    ``(I) is contiguous to the 
                                wetland described in clause 
                                (i);
                                    ``(II) is used to protect 
                                the wetland; and
                                    ``(III) is of such width as 
                                the Secretary determines is 
                                necessary to protect the 
                                wetland, taking into 
                                consideration and accommodating 
                                the farming practices 
                                (including the straightening of 
                                boundaries to accommodate 
                                machinery) used with respect to 
                                the cropland that surrounds the 
                                wetland.
                    ``(B) Exclusions.--An owner or operator may 
                not enroll in the conservation reserve under 
                this subsection--
                            ``(i) any wetland, or land on a 
                        floodplain, that is, or is adjacent to, 
                        a perennial riverine system wetland 
                        identified on the final national 
                        wetland inventory map of the Secretary 
                        of the Interior; or
                            ``(ii) in the case of an area that 
                        is not covered by the final national 
                        inventory map, any wetland, or land on 
                        a floodplain, that is adjacent to a 
                        perennial stream identified on a 1-
                        24,000 scale map of the United States 
                        Geological Survey.
                    ``(C) Program limitations.--
                            ``(i) In general.--The Secretary 
                        may enroll in the conservation reserve 
                        under this subsection not more than--
                                    ``(I) 100,000 acres in any 
                                1 State referred to in 
                                paragraph (1); and
                                    ``(II) not more than a 
                                total of 1,000,000 acres.
                            ``(ii) Relationship to program 
                        maximum.--Subject to clause (iii), for 
                        the purposes of subsection (d), any 
                        acreage enrolled in the conservation 
                        reserve under this subsection shall be 
                        considered acres maintained in the 
                        conservation reserve.
                            ``(iii) Relationship to other 
                        enrolled acreage.--Acreage enrolled 
                        under this subsection shall not affect 
                        for any fiscal year the quantity of--
                                    ``(I) acreage enrolled to 
                                establish conservation buffers 
                                as part of the program 
                                announced on March 24, 1998 (63 
                                Fed. Reg. 14109); or
                                    ``(II) acreage enrolled 
                                into the conservation reserve 
                                enhancement program announced 
                                on May 27, 1998 (63 Fed. Reg. 
                                28965).
                            ``(iv) Review; potential increase 
                        in enrollment acreage.--Not later than 
                        3 years after the date of enactment of 
                        this clause, the Secretary shall--
                                    ``(I) conduct a review of 
                                the program under this 
                                subsection with respect to each 
                                State that has enrolled land in 
                                the program; and
                                    ``(II) notwithstanding 
                                clause (i)(I), increase the 
                                number of acres that may be 
                                enrolled by a State under 
                                clause (i)(I) to not more than 
                                150,000 acres, as determined by 
                                the Secretary.
                    ``(D) Owner or operator limitations.--
                            ``(i) Wetland.--
                                    ``(I) In general.--The 
                                maximum size of any wetland 
                                described in subparagraph 
                                (A)(i) of an owner or operator 
                                enrolled in the conservation 
                                reserve under this subsection 
                                shall be 10 contiguous acres, 
                                of which not more than 5 acres 
                                shall be eligible for payment.
                                    ``(II) Coverage.--All acres 
                                described in subclause (I) 
                                (including acres that are 
                                ineligible for payment) shall 
                                be covered by the conservation 
                                contract.
                            ``(ii) Buffer acreage.--The maximum 
                        size of any buffer acreage described in 
                        subparagraph (A)(ii) of an owner or 
                        operator enrolled in the conservation 
                        reserve under this subsection shall be 
                        the greater of--
                                    ``(I) 3 times the size of 
                                any wetland described in 
                                subparagraph (A)(i) to which 
                                the buffer acreage is 
                                contiguous; or
                                    ``(II) 150 feet on either 
                                side of the wetland.
                            ``(iii) Tracts.--The maximum size 
                        of any eligible acreage described in 
                        subparagraph (A) in a tract (as 
                        determined by the Secretary) of an 
                        owner or operator enrolled in the 
                        conservation reserve under this 
                        subsection shall be 40 acres.
            ``(3) Duties of owners and operators.--Under a 
        contract entered into under this subsection, during the 
        term of the contract, an owner or operator of a farm or 
        ranch shall agree--
                    ``(A) to restore the hydrology of the 
                wetland within the eligible acreage to the 
                maximum extent practicable, as determined by 
                the Secretary;
                    ``(B) to establish vegetative cover (which 
                may include emerging vegetation in water) on 
                the eligible acreage, as determined by the 
                Secretary; and
                    ``(C) to carry out other duties described 
                in section 1232.
            ``(4) Duties of the secretary.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), in return for a 
                contract entered into by an owner or operator 
                under this subsection, the Secretary shall make 
                payments and provide assistance to the owner or 
                operator in accordance with sections 1233 and 
                1234.
                    ``(B) Continuous signup.--The Secretary 
                shall use continuous signup under section 
                1234(c)(2)(B) to determine the acceptability of 
                contract offers and the amount of rental 
                payments under this subsection.
                    ``(C) Incentives.--The amounts payable to 
                owners and operators in the form of rental 
                payments under contracts entered into under 
                this subsection shall reflect incentives that 
                are provided to owners and operators to enroll 
                filterstrips in the conservation reserve under 
                section 1234.
    ``(i) Eligibility for Consideration.--On the expiration of 
a contract entered into under this subchapter, the land subject 
to the contract shall be eligible to be considered for 
reenrollment in the conservation reserve.
    ``(j) Balance of Natural Resource Purposes.--In determining 
the acceptability of contract offers under this subchapter, the 
Secretary shall ensure, to the maximum extent practicable, an 
equitable balance among the conservation purposes of soil 
erosion, water quality, and wildlife habitat.

``SEC. 1232. DUTIES OF OWNERS AND OPERATORS.

    ``(a) In General.--Under the terms of a contract entered 
into under this subchapter, during the term of the contract, an 
owner or operator of a farm or ranch shall agree--
            ``(1) to implement a plan approved by the local 
        conservation district (or in an area not located within 
        a conservation district, a plan approved by the 
        Secretary) for converting eligible land normally 
        devoted to the production of an agricultural commodity 
        on the farm or ranch to a less intensive use (as 
        defined by the Secretary), such as pasture, permanent 
        grass, legumes, forbs, shrubs, or trees, substantially 
        in accordance with a schedule outlined in the plan;
            ``(2) to place highly erodible cropland subject to 
        the contract in the conservation reserve established 
        under this subchapter;
            ``(3) not to use the land for agricultural 
        purposes, except as permitted by the Secretary;
            ``(4) to establish approved vegetative cover (which 
        may include emerging vegetation in water), water cover 
        for the enhancement of wildlife, or, where practicable, 
        maintain existing cover on the land, except that--
                    ``(A) the water cover shall not include 
                ponds for the purpose of watering livestock, 
                irrigating crops, or raising fish for 
                commercial purposes; and
                    ``(B) the Secretary shall not terminate the 
                contract for failure to establish approved 
                vegetative or water cover on the land if--
                            ``(i) the failure to plant the 
                        cover was due to excessive rainfall or 
                        flooding;
                            ``(ii) the land subject to the 
                        contract that could practicably be 
                        planted to the cover is planted to the 
                        cover; and
                            ``(iii) the land on which the owner 
                        or operator was unable to plant the 
                        cover is planted to the cover after the 
                        wet conditions that prevented the 
                        planting subsides;
            ``(5) on a violation of a term or condition of the 
        contract at any time the owner or operator has control 
        of the land--
                    ``(A) to forfeit all rights to receive 
                rental payments and cost sharing payments under 
                the contract and to refund to the Secretary any 
                rental payments and cost sharing payments 
                received by the owner or operator under the 
                contract, together with interest on the 
                payments as determined by the Secretary, if the 
                Secretary, after considering the 
                recommendations of the soil conservation 
                district and the Natural Resources Conservation 
                Service, determines that the violation is of 
                such nature as to warrant termination of the 
                contract; or
                    ``(B) to refund to the Secretary, or accept 
                adjustments to, the rental payments and cost 
                sharing payments provided to the owner or 
                operator, as the Secretary considers 
                appropriate, if the Secretary determines that 
                the violation does not warrant termination of 
                the contract;
            ``(6) on the transfer of the right and interest of 
        the owner or operator in land subject to the contract--
                    ``(A) to forfeit all rights to rental 
                payments and cost sharing payments under the 
                contract; and
                    ``(B) to refund to the United States all 
                rental payments and cost sharing payments 
                received by the owner or operator, or accept 
                such payment adjustments or make such refunds 
                as the Secretary considers appropriate and 
                consistent with the objectives of this 
                subchapter;

        unless the transferee of the land agrees with the 
        Secretary to assume all obligations of the contract, 
        except that no refund of rental payments and cost 
        sharing payments shall be required if the land is 
        purchased by or for the United States Fish and Wildlife 
        Service, or the transferee and the Secretary agree to 
        modifications to the contract, in a case in which the 
        modifications are consistent with the objectives of the 
        program, as determined by the Secretary;
            ``(7) not to conduct any harvesting or grazing, nor 
        otherwise make commercial use of the forage, on land 
        that is subject to the contract, nor adopt any similar 
        practice specified in the contract by the Secretary as 
        a practice that would tend to defeat the purposes of 
        the contract, except that the Secretary may permit, 
        consistent with the conservation of soil, water 
        quality, and wildlife habitat (including habitat during 
        nesting seasons for birds in the area)--
                    ``(A) managed harvesting and grazing 
                (including the managed harvesting of biomass), 
                except that in permitting managed harvesting 
                and grazing, the Secretary--
                            ``(i) shall, in coordination with 
                        the State technical committee--
                                    ``(I) develop appropriate 
                                vegetation management 
                                requirements; and
                                    ``(II) identify periods 
                                during which harvesting and 
                                grazing under this paragraph 
                                may be conducted;
                            ``(ii) may permit harvesting and 
                        grazing or other commercial use of the 
                        forage on the land that is subject to 
                        the contract in response to a drought 
                        or other emergency; and
                            ``(iii) shall, in the case of 
                        routine managed harvesting or grazing 
                        or harvesting or grazing conducted in 
                        response to a drought or other 
                        emergency, reduce the rental payment 
                        otherwise payable under the contract by 
                        an amount commensurate with the 
                        economic value of the activity; and
                    ``(B) the installation of wind turbines, 
                except that in permitting the installation of 
                wind turbines, the Secretary shall determine 
                the number and location of wind turbines that 
                may be installed, taking into account--
                            ``(i) the location, size, and other 
                        physical characteristics of the land;
                            ``(ii) the extent to which the land 
                        contains wildlife and wildlife habitat; 
                        and
                            ``(iii) the purposes of the 
                        conservation reserve program under this 
                        subchapter;
            ``(8) not to conduct any planting of trees on land 
        that is subject to the contract unless the contract 
        specifies that the harvesting and commercial sale of 
        trees such as Christmas trees are prohibited, nor 
        otherwise make commercial use of trees on land that is 
        subject to the contract unless it is expressly 
        permitted in the contract, nor adopt any similar 
        practice specified in the contract by the Secretary as 
        a practice that would tend to defeat the purposes of 
        the contract, except that no contract shall prohibit 
        activities consistent with customary forestry practice, 
        such as pruning, thinning, or stand improvement of 
        trees, on land converted to forestry use;
            ``(9) not to adopt any practice specified by the 
        Secretary in the contract as a practice that would tend 
        to defeat the purposes of this subchapter; and
            ``(10) to comply with such additional provisions as 
        the Secretary determines are desirable and are included 
        in the contract to carry out this subchapter or to 
        facilitate the practical administration of this 
        subchapter.
    ``(b) Conservation Plans.--The plan referred to in 
subsection (a)(1)--
            ``(1) shall set forth--
                    ``(A) the conservation measures and 
                practices to be carried out by the owner or 
                operator during the term of the contract; and
                    ``(B) the commercial use, if any, to be 
                permitted on the land during the term; and
            ``(2) may provide for the permanent retirement of 
        any existing cropland base and allotment history for 
        the land.
    ``(c) Foreclosure.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, an owner or operator who is a party 
        to a contract entered into under this subchapter may 
        not be required to make repayments to the Secretary of 
        amounts received under the contract if the land that is 
        subject to the contract has been foreclosed on and the 
        Secretary determines that forgiving the repayments is 
        appropriate in order to provide fair and equitable 
        treatment.
            ``(2) Resumption of control.--
                    ``(A) In general.--This subsection shall 
                not void the responsibilities of an owner or 
                operator under the contract if the owner or 
                operator resumes control over the land that is 
                subject to the contract within the period 
                specified in the contract.
                    ``(B) Contract.--On the resumption of the 
                control over the land by the owner or operator, 
                the provisions of the contract in effect on the 
                date of the foreclosure shall apply.

``SEC. 1233. DUTIES OF THE SECRETARY.

    ``In return for a contract entered into by an owner or 
operator under section 1232, the Secretary shall--
            ``(1) share the cost of carrying out the 
        conservation measures and practices set forth in the 
        contract for which the Secretary determines that cost 
        sharing is appropriate and in the public interest; and
            ``(2) for a period of years not in excess of the 
        term of the contract, pay an annual rental payment in 
        an amount necessary to compensate for--
                    ``(A) the conversion of highly erodible 
                cropland normally devoted to the production of 
                an agricultural commodity on a farm or ranch to 
                a less intensive use; and
                    ``(B) the retirement of any cropland base 
                and allotment history that the owner or 
                operator agrees to retire permanently.

``SEC. 1234. PAYMENTS.

    ``(a) Timing.--The Secretary shall provide payment for 
obligations incurred by the Secretary under a contract entered 
into under this subchapter--
            ``(1) with respect to any cost-sharing payment 
        obligation incurred by the Secretary, as soon as 
        practicable after the obligation is incurred; and
            ``(2) with respect to any annual rental payment 
        obligation incurred by the Secretary--
                    ``(A) as soon as practicable after October 
                1 of each calendar year; or
                    ``(B) at the option of the Secretary, at 
                any time prior to such date during the year 
                that the obligation is incurred.
    ``(b) Federal Percentage of Cost Sharing Payments.--
            ``(1) In general.--In making cost sharing payments 
        to an owner or operator under a contract entered into 
        under this subchapter, the Secretary shall pay 50 
        percent of the cost of establishing water quality and 
        conservation measures and practices required under each 
        contract for which the Secretary determines that cost 
        sharing is appropriate and in the public interest.
            ``(2) Limitation.--The Secretary shall not make any 
        payment to an owner or operator under this subchapter 
        to the extent that the total amount of cost sharing 
        payments provided to the owner or operator from all 
        sources would exceed 100 percent of the total cost of 
        establishing measures and practices described in 
        paragraph (1).
            ``(3) Hardwood trees, windbreaks, shelterbelts, and 
        wildlife corridors.--
                    ``(A) Applicability.--This paragraph 
                applies to--
                            ``(i) land devoted to the 
                        production of hardwood trees, 
                        windbreaks, shelterbelts, or wildlife 
                        corridors under a contract entered into 
                        under this subchapter after November 
                        28, 1990; and
                            ``(ii) land converted to such 
                        production under section 1235A.
                    ``(B) Payments.--In making cost share 
                payments to an owner or operator of land 
                described in subparagraph (A), the Secretary 
                shall pay 50 percent of the reasonable and 
                necessary costs, as determined by the 
                Secretary, incurred by the owner or operator 
                for maintaining trees or shrubs, including the 
                cost of replanting (if the trees or shrubs were 
                lost due to conditions beyond the control of 
                the owner or operator), during not less than 
                the 2-year, and not more than the 4-year, 
                period beginning on the date of the planting of 
                the trees or shrubs, as determined appropriate 
                by the Secretary.
            ``(4) Hardwood tree planting.--The Secretary may 
        permit owners or operators that contract to devote at 
        least 10 acres of land to the production of hardwood 
        trees under this subchapter to extend the planting of 
        the trees over a 3-year period if at least \1/3\ of the 
        trees are planted in each of the first 2 years.
            ``(5) Other federal cost share assistance.--An 
        owner or operator shall not be eligible to receive or 
        retain cost share assistance under this subsection if 
        the owner or operator receives any other Federal cost 
        share assistance with respect to the land under any 
        other provision of law.
    ``(c) Annual Rental Payments.--
            ``(1) In general.--In determining the amount of 
        annual rental payments to be paid to owners and 
        operators for converting highly erodible cropland 
        normally devoted to the production of an agricultural 
        commodity to less intensive use, the Secretary may 
        consider, among other things, the amount necessary to 
        encourage owners or operators of highly erodible 
        cropland to participate in the program established by 
        this subchapter.
            ``(2) Method of determination.--The amounts payable 
        to owners or operators in the form of rental payments 
        under contracts entered into under this subchapter may 
        be determined through--
                    ``(A) the submission of bids for such 
                contracts by owners and operators in such 
                manner as the Secretary may prescribe; or
                    ``(B) such other means as the Secretary 
                determines are appropriate.
            ``(3) Acceptance of contract offers.--In 
        determining the acceptability of contract offers, the 
        Secretary may--
                    ``(A) take into consideration the extent to 
                which enrollment of the land that is the 
                subject of the contract offer would improve 
                soil resources, water quality, wildlife 
                habitat, or provide other environmental 
                benefits; and
                    ``(B) establish different criteria in 
                various States and regions of the United States 
                based on the extent to which water quality or 
                wildlife habitat may be improved or erosion may 
                be abated.
            ``(4) Hardwood tree acreage.--In the case of 
        acreage enrolled in the conservation reserve 
        established under this subchapter that is to be devoted 
        to hardwood trees, the Secretary may consider bids for 
        contracts under this subsection on a continuous basis.
    ``(d) Cash or In-Kind Payments.--
            ``(1) In general.--Except as otherwise provided in 
        this section, payments under this subchapter--
                    ``(A) shall be made in cash or in 
                commodities in such amount and on such time 
                schedule as is agreed on and specified in the 
                contract; and
                    ``(B) may be made in advance of 
                determination of performance.
            ``(2) Method of providing in-kind payments.--If the 
        payment to an owner or operator is made with in-kind 
        commodities, the payment shall be made by the Commodity 
        Credit Corporation--
                    ``(A) by delivery of the commodity involved 
                to the owner or operator at a warehouse or 
                other similar facility located in the county in 
                which the highly erodible cropland is located 
                or at such other location as is agreed to by 
                the Secretary and the owner or operator;
                    ``(B) by the transfer of negotiable 
                warehouse receipts; or
                    ``(C) by such other method, including the 
                sale of the commodity in commercial markets, as 
                is determined by the Secretary to be 
                appropriate to enable the owner or operator to 
                receive efficient and expeditious possession of 
                the commodity.
            ``(3) Cash payments.--
                    ``(A) Commodity credit corporation 
                stocks.--If stocks of a commodity acquired by 
                the Commodity Credit Corporation are not 
                readily available to make full payment in kind 
                to the owner or operator, the Secretary may 
                substitute full or partial payment in cash for 
                payment in kind.
                    ``(B) Special conservation reserve 
                enhancement program.--Payments to an owner or 
                operator under a special conservation reserve 
                enhancement program described in subsection 
                (f)(4) shall be in the form of cash only.
    ``(e) Payments on Death, Disability, or Succession.--If an 
owner or operator that is entitled to a payment under a 
contract entered into under this subchapter dies, becomes 
incompetent, is otherwise unable to receive the payment, or is 
succeeded by another person that renders or completes the 
required performance, the Secretary shall make the payment, in 
accordance with regulations prescribed by the Secretary and 
without regard to any other provision of law, in such manner as 
the Secretary determines is fair and reasonable in light of all 
of the circumstances.
    ``(f) Payment Limitation for Rental Payments.--
            ``(1) In general.--The total amount of rental 
        payments, including rental payments made in the form of 
        in-kind commodities, made to a person under this 
        subchapter for any fiscal year may not exceed $50,000.
            ``(2) Regulations.--
                    ``(A) In general.--The Secretary shall 
                promulgate regulations--
                            ``(i) defining the term `person' as 
                        used in this subsection; and
                            ``(ii) providing such terms and 
                        conditions as the Secretary determines 
                        necessary to ensure a fair and 
                        reasonable application of the 
                        limitation established by this 
                        subsection.
                    ``(B) Corporations and stockholders.--The 
                regulations promulgated by the Secretary on 
                December 18, 1970, under section 101 of the 
                Agricultural Act of 1970 (7 U.S.C. 1307), shall 
                be used to determine whether corporations and 
                their stockholders may be considered as 
                separate persons under this subsection.
            ``(3) Other payments.--Rental payments received by 
        an owner or operator shall be in addition to, and not 
        affect, the total amount of payments that the owner or 
        operator is otherwise eligible to receive under the 
        Farm Security and Rural Investment Act of 2002.
            ``(4) Special conservation reserve enhancement 
        program.--
                    ``(A) In general.--The provisions of this 
                subsection that limit payments to any person, 
                and section 1305(d) of the Agricultural 
                Reconciliation Act of 1987 (7 U.S.C. 1308 note; 
                Public Law 100-203), shall not be applicable to 
                payments received by a State, political 
                subdivision, or agency thereof in connection 
                with agreements entered into under a special 
                conservation reserve enhancement program 
                carried out by that entity that has been 
                approved by the Secretary.
                    ``(B) Agreements.--The Secretary may enter 
                into such agreements for payments to States 
                (including political subdivisions and agencies 
                of States) that the Secretary determines will 
                advance the purposes of this subchapter.
    ``(g) Other State or Local Assistance.--In addition to any 
payment under this subchapter, an owner or operator may receive 
cost share assistance, rental payments, or tax benefits from a 
State or subdivision thereof for enrolling land in the 
conservation reserve program.

``SEC. 1235. CONTRACTS.

    ``(a) Ownership or Operation Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), no contract shall be entered into under this 
        subchapter concerning land with respect to which the 
        ownership has changed in the 1-year period preceding 
        the first year of the contract period unless--
                    ``(A) the new ownership was acquired by 
                will or succession as a result of the death of 
                the previous owner;
                    ``(B) the new ownership was acquired before 
                January 1, 1985;
                    ``(C) the Secretary determines that the 
                land was acquired under circumstances that give 
                adequate assurance that the land was not 
                acquired for the purpose of placing the land in 
                the program established by this subchapter; or
                    ``(D) the ownership change occurred due to 
                foreclosure on the land and the owner of the 
                land immediately before the foreclosure 
                exercises a right of redemption from the 
                mortgage holder in accordance with State law.
            ``(2) Exceptions.--Paragraph (1) shall not--
                    ``(A) prohibit the continuation of an 
                agreement by a new owner after an agreement has 
                been entered into under this subchapter; or
                    ``(B) require a person to own the land as a 
                condition of eligibility for entering into the 
                contract if the person--
                            ``(i) has operated the land to be 
                        covered by a contract under this 
                        section for at least 1 year preceding 
                        the date of the contract or since 
                        January 1, 1985, whichever is later; 
                        and
                            ``(ii) controls the land for the 
                        contract period.
    ``(b) Sales or Transfers.--If, during the term of a 
contract entered into under this subchapter, an owner or 
operator of land subject to the contract sells or otherwise 
transfers the ownership or right of occupancy of the land, the 
new owner or operator of the land may--
            ``(1) continue the contract under the same terms or 
        conditions;
            ``(2) enter into a new contract in accordance with 
        this subchapter; or
            ``(3) elect not to participate in the program 
        established by this subchapter.
    ``(c) Modifications.--
            ``(1) In general.--The Secretary may modify a 
        contract entered into with an owner or operator under 
        this subchapter if--
                    ``(A) the owner or operator agrees to the 
                modification; and
                    ``(B) the Secretary determines that the 
                modification is desirable--
                            ``(i) to carry out this subchapter;
                            ``(ii) to facilitate the practical 
                        administration of this subchapter; or
                            ``(iii) to achieve such other goals 
                        as the Secretary determines are 
                        appropriate, consistent with this 
                        subchapter.
            ``(2) Production of agricultural commodities.--The 
        Secretary may modify or waive a term or condition of a 
        contract entered into under this subchapter in order to 
        permit all or part of the land subject to such contract 
        to be devoted to the production of an agricultural 
        commodity during a crop year, subject to such 
        conditions as the Secretary determines are appropriate.
    ``(d) Termination.--
            ``(1) In general.--The Secretary may terminate a 
        contract entered into with an owner or operator under 
        this subchapter if--
                    ``(A) the owner or operator agrees to the 
                termination; and
                    ``(B) the Secretary determines that the 
                termination would be in the public interest.
            ``(2) Notice to congressional committees.--At least 
        90 days before taking any action to terminate under 
        paragraph (1) all conservation reserve contracts 
        entered into under this subchapter, the Secretary shall 
        provide to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate written notice of 
        the action.
    ``(e) Early Termination by Owner or Operator.--
            ``(1) Early termination.--
                    ``(A) In general.--The Secretary shall 
                allow a participant that entered into a 
                contract under this subchapter before January 
                1, 1995, to terminate the contract at any time 
                if the contract has been in effect for at least 
                5 years.
                    ``(B) Liability for contract violation.--
                The termination shall not relieve the 
                participant of liability for a contract 
                violation occurring before the date of the 
                termination.
                    ``(C) Notice to secretary.--The participant 
                shall provide the Secretary with reasonable 
                notice of the desire of the participant to 
                terminate the contract.
            ``(2) Certain land excepted.--The following land 
        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 land of high environmental 
                value (including wetland), 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)(C).
            ``(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 that 
        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 land in the 
        area, except that the requirements may not be more 
        onerous than the requirements imposed on other land.

``SEC. 1235A. CONVERSION OF LAND SUBJECT TO CONTRACT TO OTHER 
                    CONSERVING USES.

    ``(a) Conversion to Trees.--
            ``(1) In general.--The Secretary shall permit an 
        owner or operator that has entered into a contract 
        under this subchapter that is in effect on November 28, 
        1990, to convert areas of highly erodible cropland that 
        are subject to the contract, and that are devoted to 
        vegetative cover, from that use to hardwood trees, 
        windbreaks, shelterbelts, or wildlife corridors.
            ``(2) Terms.--
                    ``(A) Extension of contract.--With respect 
                to a contract that is modified under this 
                section that provides for the planting of 
                hardwood trees, windbreaks, shelterbelts, or 
                wildlife corridors, if the original term of the 
                contract was less than 15 years, the owner or 
                operator may extend the contract to a term of 
                not to exceed 15 years.
                    ``(B) Cost share assistance.--The Secretary 
                shall pay 50 percent of the cost of 
                establishing conservation measures and 
                practices authorized under this subsection for 
                which the Secretary determines the cost sharing 
                is appropriate and in the public interest.
    ``(b) Conversion to Wetland.--The Secretary shall permit an 
owner or operator that has entered into a contract under this 
subchapter that is in effect on November 28, 1990, to restore 
areas of highly erodible cropland that are devoted to 
vegetative cover under the contract to wetland if--
            ``(1) the areas are prior converted wetland;
            ``(2) the owner or operator of the areas enters 
        into an agreement to provide the Secretary with a long-
        term or permanent easement under subchapter C covering 
        the areas;
            ``(3) there is a high probability that the prior 
        converted area can be successfully restored to wetland 
        status; and
            ``(4) the restoration of the areas otherwise meets 
        the requirements of subchapter C.
    ``(c) Limitation.--The Secretary shall not incur, through a 
conversion under this section, any additional expense on the 
acres, including the expense involved in the original 
establishment of the vegetative cover, that would result in 
cost share for costs under this section in excess of the costs 
that would have been subject to cost share for the new practice 
had that practice been the original practice.
    ``(d) Condition of Contract.--An owner or operator shall as 
a condition of entering into a contract under subsection (a) 
participate in the Forest Stewardship Program established under 
section 5 of the Cooperative Forestry Assistance Act of 1978 
(16 U.S.C. 2103a).''.
    (b) Study on Economic Effects.--
            (1) In general.--Not later than 18 months after the 
        date of enactment of this Act, the Secretary of 
        Agriculture shall submit to the Committee on 
        Agriculture of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that describes the economic and 
        social effects on rural communities resulting from the 
        conservation reserve program established under 
        subchapter B of chapter 1 of subtitle D of title XII of 
        the Food Security Act of 1985 (16 U.S.C. 3831 et seq.).
            (2) Components.--The study under paragraph (1) 
        shall include analyses of--
                    (A) the impact that enrollments in the 
                conservation reserve program have on rural 
                businesses, civic organizations, and community 
                services (such as schools, public safety, and 
                infrastructure), particularly in communities 
                with a large percentage of whole farm 
                enrollments;
                    (B) the effect that those enrollments have 
                on rural population and beginning farmers 
                (including a description of any connection 
                between the rate of enrollment and the 
                incidence of absentee ownership);
                    (C)(i) the manner in which differential per 
                acre payment rates potentially impact the types 
                of land (by productivity) enrolled;
                    (ii) changes to the per acre payment rates 
                that may affect that impact; and
                    (iii) the manner in which differential per 
                acre payment rates could facilitate retention 
                of productive agricultural land in agriculture; 
                and
                    (D) the effect of enrollment on 
                opportunities for recreational activities 
                (including hunting and fishing).

                  Subtitle C--Wetlands Reserve Program

SEC. 2201. REAUTHORIZATION.

    Section 1237(c) of the Food Security Act of 1985 (16 U.S.C. 
3837(c)) is amended by striking ``2002'' and inserting 
``2007''.

SEC. 2202. ENROLLMENT.

    Section 1237 of the Food Security Act of 1985 (16 U.S.C. 
3837) is amended--
            (1) 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 2,275,000 acres, of which, to the maximum 
        extent practicable, the Secretary shall enroll 250,000 
        acres in each calendar year.
            ``(2) Methods of enrollment.--The Secretary shall 
        enroll acreage into the wetlands reserve program 
        through the use of permanent easements, 30-year 
        easements, restoration cost share agreements, or any 
        combination of those options.''; and
            (2) by striking subsection (g).

SEC. 2203. EASEMENTS AND AGREEMENTS.

    Section 1237A of the Food Security Act of 1985 (16 U.S.C. 
3837a) is amended by striking subsection (h).

SEC. 2204. CHANGES IN OWNERSHIP; AGREEMENT MODIFICATION; TERMINATION.

    Section 1237E(a) of the Food Security Act of 1985 (16 
U.S.C. 3837e(a)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2)(A) the ownership change occurred because of 
        foreclosure on the land; and
            ``(B) immediately before the foreclosure, the owner 
        of the land exercises a right of redemption from the 
        mortgage holder in accordance with State law; or''.

              Subtitle D--Environmental Quality Incentives

SEC. 2301. ENVIRONMENTAL QUALITY INCENTIVES PROGRAM.

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

``SEC. 1240. PURPOSES.

    ``The purposes of the environmental quality incentives 
program established by this chapter are to promote agricultural 
production and environmental quality as compatible goals, and 
to optimize environmental benefits, by--
            ``(1) assisting producers in complying with local, 
        State, and national regulatory requirements 
        concerning--
                    ``(A) soil, water, and air quality;
                    ``(B) wildlife habitat; and
                    ``(C) surface and ground water 
                conservation;
            ``(2) avoiding, to the maximum extent practicable, 
        the need for resource and regulatory programs by 
        assisting producers in protecting soil, water, air, and 
        related natural resources and meeting environmental 
        quality criteria established by Federal, State, tribal, 
        and local agencies;
            ``(3) providing flexible assistance to producers to 
        install and maintain conservation practices that 
        enhance soil, water, related natural resources 
        (including grazing land and wetland), and wildlife 
        while sustaining production of food and fiber;
            ``(4) assisting producers to make beneficial, cost 
        effective changes to cropping systems, grazing 
        management, nutrient management associated with 
        livestock, pest or irrigation management, or other 
        practices on agricultural land; and
            ``(5) consolidating and streamlining conservation 
        planning and regulatory compliance processes to reduce 
        administrative burdens on producers and the cost of 
        achieving environmental goals.

``SEC. 1240A. DEFINITIONS.

    ``In this chapter:
            ``(1) Beginning farmer or rancher.--The term 
        `beginning farmer or rancher' has the meaning provided 
        under section 343(a) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1999(a)).
            ``(2) Eligible land.--
                    ``(A) In general.--The term `eligible land' 
                means land on which agricultural commodities or 
                livestock are produced.
                    ``(B) Inclusions.--The term `eligible land' 
                includes--
                            ``(i) cropland;
                            ``(ii) grassland;
                            ``(iii) rangeland;
                            ``(iv) pasture land;
                            ``(v) private, nonindustrial forest 
                        land; and
                            ``(vi) other agricultural land that 
                        the Secretary determines poses a 
                        serious threat to soil, air, water, or 
                        related resources.
            ``(3) Land management practice.--The term `land 
        management practice' means a site-specific nutrient or 
        manure management, integrated pest management, 
        irrigation management, tillage or residue management, 
        grazing management, air quality management, or other 
        land management practice carried out on eligible land 
        that the Secretary determines is needed to protect from 
        degradation, in the most cost-effective manner, water, 
        soil, or related resources.
            ``(4) Livestock.--The term `livestock' means dairy 
        cattle, beef cattle, laying hens, broilers, turkeys, 
        swine, sheep, and other such animals as are determined 
        by the Secretary.
            ``(5) Practice.--The term `practice' means 1 or 
        more structural practices, land management practices, 
        and comprehensive nutrient management planning 
        practices.
            ``(6) Structural practice.--The term `structural 
        practice' means--
                    ``(A) the establishment on eligible land of 
                a site-specific animal waste management 
                facility, terrace, grassed waterway, contour 
                grass strip, filterstrip, tailwater pit, 
                permanent wildlife habitat, constructed 
                wetland, or other structural practice that the 
                Secretary determines is needed to protect, in 
                the most cost effective manner, 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 each of the 2002 through 
        2007 fiscal years, the Secretary shall provide cost-
        share payments and incentive payments to producers that 
        enter into contracts with the Secretary under the 
        program.
            ``(2) Eligible practices.--With respect to 
        practices implemented under this chapter--
                    ``(A) a producer that implements a 
                structural practice in accordance with this 
                chapter shall be eligible to receive cost-share 
                payments; and
                    ``(B) a producer that implements a land 
                management practice, or develops a 
                comprehensive nutrient management plan, in 
                accordance with this chapter shall be eligible 
                to receive incentive payments.
    ``(b) Practices and Term.--
            ``(1) Practices.--A contract under this chapter may 
        apply to 1 or more structural practices, land 
        management practices, and comprehensive nutrient 
        management practices.
            ``(2) Term.--A contract under this chapter shall 
        have a term that--
                    ``(A) at a minimum, is equal to the period 
                beginning on the date on which the contract is 
                entered into and ending on the date that is 1 
                year after the date on which all practices 
                under the contract have been implemented; but
                    ``(B) not to exceed 10 years.
    ``(c) Bidding Down.--If the Secretary determines that the 
environmental values of 2 or more applications for cost-share 
payments or incentive payments are comparable, the Secretary 
shall not assign a higher priority to the application only 
because it would present the least cost to the program 
established under the program.
    ``(d) Cost-Share Payments.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the cost-share payments provided to a producer 
        proposing to implement 1 or more practices under the 
        program shall be not more than 75 percent of the cost 
        of the practice, as determined by the Secretary.
            ``(2) Exceptions.--
                    ``(A) Limited resource and beginning 
                farmers.--The Secretary may increase the amount 
                provided to a producer under paragraph (1) to 
                not more than 90 percent if the producer is a 
                limited resource or beginning farmer or 
                rancher, as determined by the Secretary.
                    ``(B) Cost-share assistance from other 
                sources.--Except as provided in paragraph (3), 
                any cost-share payments received by a producer 
                from a State or private organization or person 
                for the implementation of 1 or more practices 
                on eligible land of the producer shall be in 
                addition to the payments provided to the 
                producer under paragraph (1).
            ``(3) Other payments.--A producer shall not be 
        eligible for cost-share payments for practices on 
        eligible land under the program if the producer 
        receives cost-share payments or other benefits for the 
        same practice on the same land under chapter 1 and the 
        program.
    ``(e) Incentive Payments.--
            ``(1) In general.--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.
            ``(2) Special rule.--In determining the amount and 
        rate of incentive payments, the Secretary may accord 
        great significance to a practice that promotes residue, 
        nutrient, pest, invasive species, or air quality 
        management.
    ``(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) Allocation of Funding.--For each of fiscal years 2002 
through 2007, 60 percent of the funds made available for cost-
share payments and incentive payments under this chapter shall 
be targeted at practices relating to livestock production.

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

    ``In evaluating applications for cost-share payments and 
incentive payments, the Secretary shall accord a higher 
priority to assistance and payments that--
            ``(1) encourage the use by producers of cost-
        effective conservation practices; and
            ``(2) address national conservation priorities.

``SEC. 1240D. DUTIES OF PRODUCERS.

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

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

    ``(a) In General.--To be eligible to receive cost-share 
payments or incentive payments under the program, a producer 
shall submit to the Secretary for approval a plan of operations 
that--
            ``(1) specifies practices covered under the 
        program;
            ``(2) includes such terms and conditions as the 
        Secretary considers necessary to carry out the program, 
        including a description of the purposes to be met by 
        the implementation of the plan; and
            ``(3) in the case of a confined livestock feeding 
        operation, provides for development and implementation 
        of a comprehensive nutrient management plan, if 
        applicable.
    ``(b) Avoidance of Duplication.--The Secretary shall, to 
the maximum extent practicable, eliminate duplication of 
planning activities under the program under this chapter 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 a program plan by--
            ``(1) providing cost-share payments or incentive 
        payments for developing and implementing 1 or more 
        practices, as appropriate; and
            ``(2) providing the producer with information and 
        training to aid in implementation of the plan.

``SEC. 1240G. LIMITATION ON PAYMENTS.

    ``An individual or entity may not receive, directly or 
indirectly, cost-share or incentive payments under this chapter 
that, in the aggregate, exceed $450,000 for all contracts 
entered into under this chapter by the individual or entity 
during the period of fiscal years 2002 through 2007, regardless 
of the number of contracts entered into under this chapter by 
the individual or entity.

``SEC. 1240H. CONSERVATION INNOVATION GRANTS.

    ``(a) In General.--The Secretary may pay the cost of 
competitive grants that are intended to stimulate innovative 
approaches to leveraging Federal investment in environmental 
enhancement and protection, in conjunction with agricultural 
production, through the program.
    ``(b) Use.--The Secretary may provide grants under this 
section to governmental and nongovernmental organizations and 
persons, on a competitive basis, to carry out projects that--
            ``(1) involve producers that are eligible for 
        payments or technical assistance under the program;
            ``(2) implement projects, such as--
                    ``(A) market systems for pollution 
                reduction; and
                    ``(B) innovative conservation practices, 
                including the storing of carbon in the soil; 
                and
            ``(3) leverage funds made available to carry out 
        the program under this chapter with matching funds 
        provided by State and local governments and private 
        organizations to promote environmental enhancement and 
        protection in conjunction with agricultural production.
    ``(c) Cost Share.--The amount of a grant made under this 
section to carry out a project shall not exceed 50 percent of 
the cost of the project.

``SEC. 1240I. GROUND AND SURFACE WATER CONSERVATION.

    ``(a) Establishment.--In carrying out the program under 
this chapter, subject to subsection (b), the Secretary shall 
promote ground and surface water conservation by providing 
cost-share payments, incentive payments, and loans to producers 
to carry out eligible water conservation activities with 
respect to the agricultural operations of producers, to--
            ``(1) improve irrigation systems;
            ``(2) enhance irrigation efficiencies;
            ``(3) convert to--
                    ``(A) the production of less water-
                intensive agricultural commodities; or
                    ``(B) dryland farming;
            ``(4) improve the storage of water through measures 
        such as water banking and groundwater recharge;
            ``(5) mitigate the effects of drought; or
            ``(6) institute other measures that improve 
        groundwater and surface water conservation, as 
        determined by the Secretary, in the agricultural 
        operations of producers.
    ``(b) Net Savings.--The Secretary may provide assistance to 
a producer under this section only if the Secretary determines 
that the assistance will facilitate a conservation measure that 
results in a net savings in groundwater or surface water 
resources in the agricultural operation of the producer.
    ``(c) Funding.--Of the funds of the Commodity Credit 
Corporation, in addition to amounts made available under 
section 1241(a)(6) to carry out this chapter, the Secretary 
shall use--
            ``(1) to carry out this section--
                    ``(A) $25,000,000 for fiscal year 2002;
                    ``(B) $45,000,000 for fiscal year 2003; and
                    ``(C) $60,000,000 for each of fiscal years 
                2004 through 2007; and
            ``(2) $50,000,000 to carry out water conservation 
        activities in Klamath Basin, California and Oregon, to 
        be made available as soon as practicable after the date 
        of enactment of this section.''.

                     Subtitle E--Grassland Reserve

SEC. 2401. GRASSLAND RESERVE PROGRAM.

    Chapter 2 of the Food Security Act of 1985 (as amended by 
section 2001) is amended by adding at the end the following:

               ``Subchapter C--Grassland Reserve Program

``SEC. 1238N. GRASSLAND RESERVE PROGRAM.

    ``(a) Establishment.--The Secretary shall establish a 
grassland reserve program (referred to in this subchapter as 
the `program') to assist owners in restoring and conserving 
eligible land described in subsection (c).
    ``(b) Enrollment Conditions.--
            ``(1) Maximum enrollment.--The total number of 
        acres enrolled in the program shall not exceed 
        2,000,000 acres of restored or improved grassland, 
        rangeland, and pastureland.
            ``(2) Methods of enrollment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall enroll in 
                the program from a willing owner not less than 
                40 contiguous acres of land through the use 
                of--
                            ``(i) a 10-year, 15-year, or 20-
                        year rental agreement;
                            ``(ii)(I) a 30-year rental 
                        agreement or permanent or 30-year 
                        easement; or
                            ``(II) in a State that imposes a 
                        maximum duration for easements, an 
                        easement for the maximum duration 
                        allowed under State law.
                    ``(B) Waiver.--The Secretary may enroll in 
                the program such parcels of land that are less 
                than 40 acres as the Secretary determines are 
                appropriate to achieve the purposes of the 
                program.
            ``(3) Limitation on use of easements and rental 
        agreements.--Of the total amount of funds expended 
        under the program to acquire easements and rental 
        agreements described in paragraph (2)(A)--
                    ``(A) not more than 40 percent shall be 
                used for rental agreements described in 
                paragraph (2)(A)(i); and
                    ``(B) not more than 60 percent shall be 
                used for easements and rental agreements 
                described in paragraph (2)(A)(ii).
    ``(c) Eligible Land.--Land shall be eligible to be enrolled 
in the program if the Secretary determines that the land is 
private land that is--
            ``(1) grassland, land that contains forbs, or 
        shrubland (including improved rangeland and 
        pastureland); or
            ``(2) land that--
                    ``(A) is located in an area that has been 
                historically dominated by grassland, forbs, or 
                shrubland; and
                    ``(B) has potential to serve as habitat for 
                animal or plant populations of significant 
                ecological value if the land is--
                            ``(i) retained in the current use 
                        of the land; or
                            ``(ii) restored to a natural 
                        condition; or
            ``(3) land that is incidental to land described in 
        paragraph (1) or (2), if the incidental land is 
        determined by the Secretary to be necessary for the 
        efficient administration of an agreement or easement.

``SEC. 1238O. REQUIREMENTS RELATING TO EASEMENTS AND AGREEMENTS.

    ``(a) Requirements of Landowner.--
            ``(1) In general.--To be eligible to enroll land in 
        the program through the grant of an easement, the owner 
        of the land shall enter into an agreement with the 
        Secretary--
                    ``(A) to grant an easement that applies to 
                the land to the Secretary;
                    ``(B) to create and record an appropriate 
                deed restriction in accordance with applicable 
                State law to reflect the easement;
                    ``(C) to provide a written statement of 
                consent to the easement signed by persons 
                holding a security interest or any vested 
                interest in the land;
                    ``(D) to provide proof of unencumbered 
                title to the underlying fee interest in the 
                land that is the subject of the easement; and
                    ``(E) to comply with the terms of the 
                easement and restoration agreement.
            ``(2) Agreements.--To be eligible to enroll land in 
        the program under an agreement, the owner or operator 
        of the land shall agree--
                    ``(A) to comply with the terms of the 
                agreement (including any related restoration 
                agreements); and
                    ``(B) to the suspension of any existing 
                cropland base and allotment history for the 
                land under a program administered by the 
                Secretary.
    ``(b) Terms of Easement or Rental Agreement.--An easement 
or rental agreement under subsection (a) shall--
            ``(1) permit--
                    ``(A) common grazing practices, including 
                maintenance and necessary cultural practices, 
                on the land in a manner that is consistent with 
                maintaining the viability of grassland, forb, 
                and shrub species common to that locality;
                    ``(B) subject to appropriate restrictions 
                during the nesting season for birds in the 
                local area that are in significant decline or 
                are conserved in accordance with Federal or 
                State law, as determined by the Natural 
                Resources Conservation Service State 
                conservationist, haying, mowing, or harvesting 
                for seed production; and
                    ``(C) fire rehabilitation and construction 
                of fire breaks and fences (including placement 
                of the posts necessary for fences);
            ``(2) prohibit--
                    ``(A) the production of crops (other than 
                hay), fruit trees, vineyards, or any other 
                agricultural commodity that requires breaking 
                the soil surface; and
                    ``(B) except as permitted under this 
                subsection or subsection (d), the conduct of 
                any other activity that would disturb the 
                surface of the land covered by the easement or 
                rental agreement; and
            ``(3) include such additional provisions as the 
        Secretary determines are appropriate to carry out or 
        facilitate the administration of this subchapter.
    ``(c) Evaluation and Ranking of Easement and Rental 
Agreement Applications.--
            ``(1) In general.--The Secretary shall establish 
        criteria to evaluate and rank applications for 
        easements and rental agreements under this subchapter.
            ``(2) Considerations.--In establishing the 
        criteria, the Secretary shall emphasize support for--
                    ``(A) grazing operations;
                    ``(B) plant and animal biodiversity; and
                    ``(C) grassland, land that contains forbs, 
                and shrubland under the greatest threat of 
                conversion.
    ``(d) Restoration Agreements.--
            ``(1) In general.--The Secretary shall prescribe 
        the terms of a restoration agreement by which 
        grassland, land that contains forbs, or shrubland that 
        is subject to an easement or rental agreement entered 
        into under the program shall be restored.
            ``(2) Requirements.--The restoration agreement 
        shall describe the respective duties of the owner and 
        the Secretary (including the Federal share of 
        restoration payments and technical assistance).
    ``(e) Violations.--On a violation of the terms or 
conditions of an easement, rental agreement, or restoration 
agreement entered into under this section--
            ``(1) the easement or rental agreement shall remain 
        in force; and
            ``(2) the Secretary may require the owner to refund 
        all or part of any payments received by the owner under 
        this subchapter, with interest on the payments as 
        determined appropriate by the Secretary.

``SEC. 1238P. DUTIES OF SECRETARY.

    ``(a) In general.--In return for the granting of an 
easement, or the execution of a rental agreement, by an owner 
under this subchapter, the Secretary shall, in accordance with 
this section--
            ``(1) make easement or rental agreement payments to 
        the owner in accordance with subsection (b); and
            ``(2) make payments to the owner for the Federal 
        share of the cost of restoration in accordance with 
        subsection (c).
    ``(b) Payments.--
            ``(1) Easement payments.--
                    ``(A) Amount.--In return for the granting 
                of an easement by an owner under this 
                subchapter, the Secretary shall make easement 
                payments to the owner in an amount equal to--
                            ``(i) in the case of a permanent 
                        easement, the fair market value of the 
                        land less the grazing value of the land 
                        encumbered by the easement; and
                            ``(ii) in the case of a 30-year 
                        easement or an easement for the maximum 
                        duration allowed under applicable State 
                        law, 30 percent of the fair market 
                        value of the land less the grazing 
                        value of the land for the period during 
                        which the land is encumbered by the 
                        easement.
                    ``(B) Schedule.--Easement payments may be 
                provided in not less than 1 payment nor more 
                than 10 annual payments of equal or unequal 
                amount, as agreed to by the Secretary and the 
                owner.
            ``(2) Rental agreement payments.--In return for 
        entering into a rental agreement by an owner under this 
        subchapter, the Secretary shall make annual payments to 
        the owner during the term of the rental agreement in an 
        amount that is not more than 75 percent of the grazing 
        value of the land covered by the contract.
    ``(c) Federal Share of Restoration.--The Secretary shall 
make payments to an owner under this section of not more than--
            ``(1) in the case of grassland, land that contains 
        forbs, or shrubland that has never been cultivated, 90 
        percent of the costs of carrying out measures and 
        practices necessary to restore functions and values of 
        that land; or
            ``(2) in the case of restored grassland, land that 
        contains forbs, or shrubland, 75 percent of those 
        costs.
    ``(d) Payments to Others.--If an owner that is entitled to 
a payment under this subchapter dies, becomes incompetent, is 
otherwise unable to receive the payment, or is succeeded by 
another person who renders or completes the required 
performance, the Secretary shall make the payment, in 
accordance with regulations promulgated by the Secretary and 
without regard to any other provision of law, in such manner as 
the Secretary determines is fair and reasonable in light of all 
the circumstances.

``SEC. 1238Q. DELEGATION TO PRIVATE ORGANIZATIONS.

    ``(a) In General.--The Secretary may permit a private 
conservation or land trust organization (referred to in this 
section as a `private organization') or a State agency to hold 
and enforce an easement under this subchapter, in lieu of the 
Secretary, subject to the right of the Secretary to conduct 
periodic inspections and enforce the easement, if--
            ``(1) the Secretary determines that granting the 
        permission will promote protection of grassland, land 
        that contains forbs, and shrubland;
            ``(2) the owner authorizes the private organization 
        or State agency to hold and enforce the easement; and
            ``(3) the private organization or State agency 
        agrees to assume the costs incurred in administering 
        and enforcing the easement, including the costs of 
        restoration or rehabilitation of the land as specified 
        by the owner and the private organization or State 
        agency.
    ``(b) Application.--A private organization or State agency 
that seeks to hold and enforce an easement under this 
subchapter shall apply to the Secretary for approval.
    ``(c) Approval by Secretary.--The Secretary may approve a 
private organization to hold and enforce an easement under this 
subchapter if (as determined by the Secretary) the private 
organization--
            ``(1)(A) is an organization described in section 
        501(c)(3) of the Internal Revenue Code of 1986 that is 
        exempt from taxation under section 501(a) of that Code; 
        or
            ``(B) is described in section 509(a)(3), and is 
        controlled by an organization described in section 
        509(a)(2), of that Code;
            ``(2) has the relevant experience necessary to 
        administer grassland and shrubland easements;
            ``(3) has a charter that describes the commitment 
        of the private organization to conserving ranchland, 
        agricultural land, or grassland for grazing and 
        conservation purposes; and
            ``(4) has the resources necessary to effectuate the 
        purposes of the charter.
    ``(d) Reassignment.--
            ``(1) In general.--If a private organization 
        holding an easement on land under this subchapter 
        terminates, not later than 30 days after termination of 
        the private organization, the owner of the land shall 
        reassign the easement to--
                    ``(A) a new private organization that is 
                approved by the Secretary; or
                    ``(B) the Secretary.
            ``(2) Notification of secretary.--
                    ``(A) In general.--If the easement is 
                reassigned to a new private organization, not 
                later than 60 days after the date of 
                reassignment, the owner and the new 
                organization shall notify the Secretary in 
                writing that a reassignment for termination has 
                been made.
                    ``(B) Failure to notify.--If the owner and 
                the new organization fail to notify the 
                Secretary of the reassignment in accordance 
                with subparagraph (A), the easement shall 
                revert to the control of the Secretary.''.

                Subtitle F--Other Conservation Programs

SEC. 2501. AGRICULTURAL MANAGEMENT ASSISTANCE.

    Section 524 of the Federal Crop Insurance Act (7 U.S.C. 
1524) is amended by striking subsection (b) and inserting the 
following:
    ``(b) Agricultural Management Assistance.--
            ``(1) Authority.--The Secretary shall provide 
        financial assistance to producers in the States of 
        Connecticut, Delaware, Maryland, Massachusetts, Maine, 
        Nevada, New Hampshire, New Jersey, New York, 
        Pennsylvania, Rhode Island, Utah, Vermont, West 
        Virginia, and Wyoming.
            ``(2) Uses.--A producer may use financial 
        assistance provided under this subsection to--
                    ``(A) construct or improve--
                            ``(i) watershed management 
                        structures; or
                            ``(ii) irrigation structures;
                    ``(B) plant trees to form windbreaks or to 
                improve water quality;
                    ``(C) mitigate financial risk through 
                production or marketing diversification or 
                resource conservation practices, including--
                            ``(i) soil erosion control;
                            ``(ii) integrated pest management;
                            ``(iii) organic farming; or
                            ``(iv) to develop and implement a 
                        plan to create marketing opportunities 
                        for the producer, including through 
                        value-added processing;
                    ``(D) enter into futures, hedging, or 
                options contracts in a manner designed to help 
                reduce production, price, or revenue risk;
                    ``(E) enter into agricultural trade options 
                as a hedging transaction to reduce production, 
                price, or revenue risk; or
                    ``(F) conduct any other activity relating 
                to an activity described in subparagraphs (A) 
                through (E), as determined by the Secretary.
            ``(3) Payment limitation.--The total amount of 
        payments made to a person (as defined in section 
        1001(5) of the Food Security Act (7 U.S.C. 1308(5))) 
        under this subsection for any year may not exceed 
        $50,000.
            ``(4) Commodity credit corporation.--
                    ``(A) In general.--The Secretary shall 
                carry out this subsection through the Commodity 
                Credit Corporation.
                    ``(B) Funding.--
                            ``(i) In general.--Except as 
                        provided in clause (ii), the Commodity 
                        Credit Corporation shall make available 
                        to carry out this subsection not less 
                        than $10,000,000 for each fiscal year.
                            ``(ii) Exception.--For each of 
                        fiscal years 2003 through 2007, the 
                        Commodity Credit Corporation shall make 
                        available to carry out this subsection 
                        $20,000,000.''.

SEC. 2502. GRAZING, WILDLIFE HABITAT INCENTIVE, SOURCE WATER 
                    PROTECTION, AND GREAT LAKES BASIN PROGRAMS.

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

                ``CHAPTER 5--OTHER CONSERVATION PROGRAMS

``SEC. 1240M. CONSERVATION OF PRIVATE GRAZING LAND.

    ``(a) 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.
    ``(b) 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.
    ``(c) 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 land;
                    ``(H) identifying the opportunities and 
                encouraging the diversification of private 
                grazing land enterprises; and
                    ``(I) encouraging the use of sustainable 
                grazing systems, such as year-round, 
                rotational, or managed grazing.
            ``(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.
    ``(d) Grazing Technical Assistance Self-Help.--
            ``(1) Findings.--Congress finds that--
                    ``(A) there is a severe lack of technical 
                assistance for farmers and ranchers that 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 land 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 April 4, 1996.
                    ``(D) Area included.--The area proposed to 
                be included in a grazing management district 
                shall be determined by the Secretary on the 
                basis of an application 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.
    ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $60,000,000 for 
each of fiscal years 2002 through 2007.

``SEC. 1240N. WILDLIFE HABITAT INCENTIVE PROGRAM.

    ``(a) In General.--The Secretary, in consultation with the 
State technical committees established under section 1261, 
shall establish within the Natural Resources Conservation 
Service a program to be known as the wildlife habitat incentive 
program (referred to in this section as the `program').
    ``(b) Cost-Share Payments.--
            ``(1) In general.--Under the program, the Secretary 
        shall make cost-share payments to landowners to 
        develop--
                    ``(A) upland wildlife habitat;
                    ``(B) wetland wildlife habitat;
                    ``(C) habitat for threatened and endangered 
                species;
                    ``(D) fish habitat; and
                    ``(E) other types of wildlife habitat 
                approved by the Secretary.
            ``(2) Increased cost share for long-term 
        agreements.--
                    ``(A) In general.--In a case in which the 
                Secretary enters into an agreement or contract 
                to protect and restore plant and animal habitat 
                that has a term of at least 15 years, the 
                Secretary may provide cost-share payments in 
                addition to amounts provided under paragraph 
                (1).
                    ``(B) Funding limitation.--The Secretary 
                may use, for a fiscal year, not more than 15 
                percent of funds made available under section 
                1241(a)(7) for the fiscal year to carry out 
                contracts and agreements described in 
                subparagraph (A).
    ``(c) Regional Equity.--In carrying out this section, the 
Secretary shall, to the maximum extent practicable, ensure that 
regional issues of concern relating to wildlife habitat are 
addressed in an appropriate manner.

``SEC. 1240O. GRASSROOTS SOURCE WATER PROTECTION PROGRAM.

    ``(a) In General.--The Secretary shall establish a national 
grassroots water protection program to more effectively use 
onsite technical assistance capabilities of each State rural 
water association that, as of the date of enactment of this 
section, operates a wellhead or groundwater protection program 
in the State.
    ``(b) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2002 through 2007.

``SEC. 1240P. GREAT LAKES BASIN PROGRAM FOR SOIL EROSION AND SEDIMENT 
                    CONTROL.

    ``(a) In General.--The Secretary, in consultation with the 
Great Lakes Commission created by Article IV of the Great Lakes 
Basin Compact (82 Stat. 415) and in cooperation with the 
Administrator of the Environmental Protection Agency and the 
Secretary of the Army, may carry out the Great Lakes basin 
program for soil erosion and sediment control (referred to in 
this section as the `program').
    ``(b) Assistance.--In carrying out the program, the 
Secretary may--
            ``(1) provide project demonstration grants, provide 
        technical assistance, and carry out information and 
        education programs to improve water quality in the 
        Great Lakes basin by reducing soil erosion and 
        improving sediment control; and
            ``(2) provide a priority for projects and 
        activities that directly reduce soil erosion or improve 
        sediment control.
    ``(c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $5,000,000 for 
each of fiscal years 2002 through 2007.''.
    (b) Conforming Amendment.--Sections 386 and 387 of the 
Federal Agriculture Improvement and Reform Act of 1996 (16 
U.S.C. 2005b, 3836a) are repealed.

SEC. 2503. FARMLAND PROTECTION PROGRAM.

    (a) In General.--Chapter 2 of the Food Security Act of 1985 
(as amended by section 2001) is amended by adding at the end 
the following:

              ``Subchapter B--Farmland Protection Program

``SEC. 1238H. DEFINITIONS.

    ``In this subchapter:
            ``(1) Eligible entity.--The term `eligible entity' 
        means--
                    ``(A) any agency of any State or local 
                government or an Indian tribe (including a 
                farmland protection board or land resource 
                council established under State law); or
                    ``(B) any organization that--
                            ``(i) is organized for, and at all 
                        times since the formation of the 
                        organization has been operated 
                        principally for, 1 or more of the 
                        conservation purposes specified in 
                        clause (i), (ii), (iii), or (iv) of 
                        section 170(h)(4)(A) of the Internal 
                        Revenue Code of 1986;
                            ``(ii) is an organization described 
                        in section 501(c)(3) of that Code that 
                        is exempt from taxation under section 
                        501(a) of that Code;
                            ``(iii) is described in section 
                        509(a)(2) of that Code; or
                            ``(iv) is described in section 
                        509(a)(3), and is controlled by an 
                        organization described in section 
                        509(a)(2), of that Code.
            ``(2) Eligible land.--
                    ``(A) In general.--The term `eligible land' 
                means land on a farm or ranch that--
                            ``(i)(I) has prime, unique, or 
                        other productive soil; or
                            ``(II) contains historical or 
                        archaeological resources; and
                            ``(ii) is subject to a pending 
                        offer for purchase from an eligible 
                        entity.
                    ``(B) Inclusions.--The term `eligible land' 
                includes, on a farm or ranch--
                            ``(i) cropland;
                            ``(ii) rangeland;
                            ``(iii) grassland;
                            ``(iv) pasture land; and
                            ``(v) forest land that is an 
                        incidental part of an agricultural 
                        operation, as determined by the 
                        Secretary.
            ``(3) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(4) Program.--The term `program' means the 
        farmland protection program established under section 
        1238I(a).

``SEC. 1238I. FARMLAND PROTECTION.

    ``(a) In General.--The Secretary, acting through the 
Natural Resources Conservation Service, shall establish and 
carry out a farmland protection program under which the 
Secretary shall purchase conservation easements or other 
interests in eligible land that is subject to a pending offer 
from an eligible entity 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 subchapter 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) Cost Sharing.--
            ``(1) Farmland protection.--
                    ``(A) Share provided under this 
                subsection.--The share of the cost of 
                purchasing a conservation easement or other 
                interest in eligible land described in 
                subsection (a) provided under section 1241(d) 
                shall not exceed 50 percent of the appraised 
                fair market value of the conservation easement 
                or other interest in eligible land.
                    ``(B) Share not provided under this 
                subsection.--As part of the share of the cost 
                of purchasing a conservation easement or other 
                interest in eligible land described in 
                subsection (a) that is not provided under 
                section 1241(d), an eligible entity may include 
                a charitable donation by the private landowner 
                from which the eligible land is to be purchased 
                of not more than 25 percent of the fair market 
                value of the conservation easement or other 
                interest in eligible land.
            ``(2) Bidding down.--If the Secretary determines 
        that 2 or more applications for the purchase of a 
        conservation easement or other interest in eligible 
        land described in subsection (a) are comparable in 
        achieving the purposes of this section, the Secretary 
        shall not assign a higher priority to any 1 of those 
        applications solely on the basis of lesser cost to the 
        farmland protection program established under 
        subsection (a).

``SEC. 1238J. FARM VIABILITY PROGRAM.

    ``(a) In General.--The Secretary may provide to eligible 
entities identified by the Secretary grants for use in carrying 
out farm viability programs developed by the eligible entities 
and approved by the Secretary.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary to carry out 
this section such sums as are necessary for each of fiscal 
years 2002 through 2007.''.
    (b) Conforming Amendments.--
            (1) In general.--
                    (A) Section 388 of the Federal Agriculture 
                Improvement and Reform Act of 1996 (16 U.S.C. 
                3830 note; Public Law 104-127) is repealed.
                    (B) Section 211 of the Agriculture Risk 
                Protection Act of 2000 (16 U.S.C. 3830 note; 
                Public Law 106-224) is amended--
                            (i) by striking subsection (a); and
                            (ii) in subsection (b)--
                                    (I) by striking the 
                                subsection designation and the 
                                subsection heading;
                                    (II) by redesignating 
                                paragraphs (1), (2), and (3) as 
                                subsections (a), (b), and (c), 
                                respectively, and indenting 
                                appropriately;
                                    (III) in subsection (a) (as 
                                so redesignated), by 
                                redesignating subparagraphs 
                                (A), (B), and (C) as paragraphs 
                                (1), (2), and (3), 
                                respectively, and indenting 
                                appropriately;
                                    (IV) in subsection (b) (as 
                                so redesignated), by striking 
                                ``assistance'' and inserting 
                                ``Assistance''; and
                                    (V) by striking 
                                ``subsection'' each place it 
                                appears and inserting 
                                ``section''.
            (2) Effect on contracts.--The amendment made by 
        paragraph (1)(A) shall have no effect on any contract 
        entered into under section 388 of the Federal 
        Agriculture Improvement and Reform Act of 1996 (16 
        U.S.C. 3830 note) that is in effect as of the date of 
        enactment of this Act.

SEC. 2504. RESOURCE CONSERVATION AND DEVELOPMENT PROGRAM.

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

      ``Subtitle H--Resource Conservation and Development Program

``SEC. 1528. DEFINITIONS.

    ``In this subtitle:
            ``(1) Area plan.--The term `area plan' means a 
        resource conservation and use plan developed through a 
        planning process by a council for a designated area of 
        1 or more States, or of land under the jurisdiction of 
        an Indian tribe, that includes 1 or more of the 
        following elements:
                    ``(A) A land conservation element, the 
                purpose of which is to control erosion and 
                sedimentation.
                    ``(B) A water management element that 
                provides 1 or more clear environmental or 
                conservation benefits, the purpose of which is 
                to provide for--
                            ``(i) the conservation, use, and 
                        quality of water, including irrigation 
                        and rural water supplies;
                            ``(ii) the mitigation of floods and 
                        high water tables;
                            ``(iii) the repair and improvement 
                        of reservoirs;
                            ``(iv) the improvement of 
                        agricultural water management; and
                            ``(v) the improvement of water 
                        quality.
                    ``(C) A community development element, the 
                purpose of which is to improve--
                            ``(i) the development of resources-
                        based industries;
                            ``(ii) the protection of rural 
                        industries from natural resource 
                        hazards;
                            ``(iii) the development of adequate 
                        rural water and waste disposal systems;
                            ``(iv) the improvement of 
                        recreation facilities;
                            ``(v) the improvement in the 
                        quality of rural housing;
                            ``(vi) the provision of adequate 
                        health and education facilities;
                            ``(vii) the satisfaction of 
                        essential transportation and 
                        communication needs; and
                            ``(viii) the promotion of food 
                        security, economic development, and 
                        education.
                    ``(D) A land management element, the 
                purpose of which is--
                            ``(i) energy conservation, 
                        including the production of energy 
                        crops;
                            ``(ii) the protection of 
                        agricultural land, as appropriate, from 
                        conversion to other uses;
                            ``(iii) farmland protection; and
                            ``(iv) the protection of fish and 
                        wildlife habitats.
            ``(2) Board.--The term `Board' means the Resource 
        Conservation and Development Policy Advisory Board 
        established under section 1533(a).
            ``(3) Council.--The term `council' means a 
        nonprofit entity (including an affiliate of the entity) 
        operating in a State that is--
                    ``(A) established by volunteers or 
                representatives of States, local units of 
                government, Indian tribes, or local nonprofit 
                organizations to carry out an area plan in a 
                designated area; and
                    ``(B) designated by the chief executive 
                officer or legislature of the State to receive 
                technical assistance and financial assistance 
                under this subtitle.
            ``(4) Designated area.--The term `designated area' 
        means a geographic area designated by the Secretary to 
        receive technical assistance and financial assistance 
        under this subtitle.
            ``(5) Financial assistance.--The term `financial 
        assistance' means a grant or loan provided by the 
        Secretary (or the Secretary and other Federal agencies) 
        to, or a cooperative agreement entered into by the 
        Secretary (or the Secretary and other Federal agencies) 
        with, a council, or association of councils, to carry 
        out an area plan in a designated area, including 
        assistance provided for planning, analysis, feasibility 
        studies, training, education, and other activities 
        necessary to carry out the area plan.
            ``(6) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(7) Local unit of government.--The term `local 
        unit of government' means--
                    ``(A) any county, city, town, township, 
                parish, village, or other general-purpose 
                subdivision of a State; and
                    ``(B) any local or regional special 
                district or other limited political subdivision 
                of a State, including any soil conservation 
                district, school district, park authority, and 
                water or sanitary district.
            ``(8) Nonprofit organization.--The term `nonprofit 
        organization' means any organization that is--
                    ``(A) described in section 501(c) of the 
                Internal Revenue Code of 1986; and
                    ``(B) exempt from taxation under section 
                501(a) of the Internal Revenue Code of 1986.
            ``(9) Planning process.--The term `planning 
        process' means actions taken by a council to develop 
        and carry out an effective area plan in a designated 
        area, including development of the area plan, goals, 
        purposes, policies, implementation activities, 
        evaluations and reviews, and the opportunity for public 
        participation in the actions.
            ``(10) Project.--The term `project' means a project 
        that is carried out by a council to achieve any of the 
        elements of an area plan.
            ``(11) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
            ``(12) State.--The term `State' means--
                    ``(A) any State;
                    ``(B) the District of Columbia; or
                    ``(C) any territory or possession of the 
                United States.
            ``(13) Technical assistance.--The term `technical 
        assistance' means any service provided by the Secretary 
        or agent of the Secretary, including--
                    ``(A) inventorying, evaluating, planning, 
                designing, supervising, laying out, and 
                inspecting projects;
                    ``(B) providing maps, reports, and other 
                documents associated with the services 
                provided;
                    ``(C) providing assistance for the long-
                term implementation of area plans; and
                    ``(D) providing services of an agency of 
                the Department of Agriculture to assist 
                councils in developing and carrying out area 
                plans.

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

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

``SEC. 1530. SELECTION OF DESIGNATED AREAS.

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

``SEC. 1531. POWERS OF THE SECRETARY.

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

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

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

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

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

``SEC. 1534. EVALUATION OF PROGRAM.

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

``SEC. 1535. LIMITATION ON ASSISTANCE.

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

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

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

``SEC. 1537. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 2505. SMALL WATERSHED REHABILITATION PROGRAM.

    Section 14 of the Watershed Protection and Flood Prevention 
Act (16 U.S.C. 1012) is amended by striking subsection (h) and 
inserting the following:
    ``(h) Funding.--
            ``(1) Funds of commodity credit corporation.--In 
        carrying out this section, of the funds of the 
        Commodity Credit Corporation, the Secretary shall make 
        available, to remain available until expended--
                    ``(A) $45,000,000 for fiscal year 2003;
                    ``(B) $50,000,000 for fiscal year 2004;
                    ``(C) $55,000,000 for fiscal year 2005;
                    ``(D) $60,000,000 for fiscal year 2006;
                    ``(E) $65,000,000 for fiscal year 2007; and
                    ``(F) $0 for fiscal year 2008.
            ``(2) Authorization of appropriations.--In addition 
        to amounts made available under paragraph (1), there 
        are authorized to be appropriated to the Secretary to 
        carry out this section, to remain available until 
        expended--
                    ``(A) $45,000,000 for fiscal year 2003;
                    ``(B) $55,000,000 for fiscal year 2004;
                    ``(C) $65,000,000 for fiscal year 2005;
                    ``(D) $75,000,000 for fiscal year 2006; and
                    ``(E) $85,000,000 for fiscal year 2007.''.

SEC. 2506. USE OF SYMBOLS, SLOGANS, AND LOGOS.

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

SEC. 2507. DESERT TERMINAL LAKES.

    ``(a) In General.--Subject to subsection (b), as soon as 
practicable after the date of enactment of this Act, the 
Secretary of Agriculture shall transfer $200,000,000 of the 
funds of the Commodity Credit Corporation to the Bureau of 
Reclamation Water and Related Resources Account, which funds 
shall--
            ``(1) be used by the Secretary of the Interior, 
        acting through the Commissioner of Reclamation, to 
        provide water to at-risk natural desert terminal lakes; 
        and
            ``(2) remain available until expended.
    ``(b) Limitation.--The funds described in subsection (a) 
shall not be used to purchase or lease water rights.

        Subtitle G--Conservation Corridor Demonstration Program

SEC. 2601. DEFINITIONS.

    In this subtitle:
            (1) Delmarva peninsula.--The term ``Delmarva 
        Peninsula'' means land in the States of Delaware, 
        Maryland, and Virginia located on the east side of the 
        Chesapeake Bay.
            (2) Demonstration program.--The term 
        ``demonstration program'' means the Conservation 
        Corridor Demonstration Program established under this 
        subtitle.
            (3) Conservation corridor plan; plan.--The terms 
        ``conservation corridor plan'' and ``plan'' mean a 
        conservation corridor plan required to be submitted and 
        approved as a condition for participation in the 
        demonstration program.
            (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.

SEC. 2602. CONSERVATION CORRIDOR DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary shall carry out a 
demonstration program, to be known as the ``Conservation 
Corridor Demonstration Program'', under which any of the States 
of Delaware, Maryland, and Virginia, a local government of any 
1 of those States with jurisdiction over land on the Delmarva 
Peninsula, or a combination of those States, may submit a 
conservation corridor plan to integrate agriculture and 
forestry conservation programs of the Department of Agriculture 
with State and local efforts to address farm conservation 
needs.
    (b) Submission of Conservation Corridor Plan.--
            (1) Submission and proposal.--To be eligible to 
        participate in the demonstration program, a State, 
        local government, or combination of States referred to 
        in subsection (a) shall--
                    (A) submit to the Secretary a conservation 
                corridor plan that--
                            (i) proposes specific criteria and 
                        commitment of resources in the 
                        geographic region designated in the 
                        plan; and
                            (ii) describes how the linkage of 
                        Federal, State, and local resources 
                        will improve--
                                    (I) the economic viability 
                                of agriculture; and
                                    (II) the environmental 
                                integrity of the watersheds in 
                                the Delmarva Peninsula; and
                    (B) demonstrate to the Secretary that, in 
                developing the plan, the State, local 
                government, or combination of States has 
                solicited and taken into account the views of 
                local residents.
            (2) Draft memorandum of agreement.--If the 
        conservation corridor plan is submitted by more than 1 
        State, the plan shall provide a draft memorandum of 
        agreement among entities in each submitting State.
    (c) Review of Plan.--Not later than 90 days after the date 
of receipt of a conservation corridor plan, the Secretary--
            (1) shall review the plan; and
            (2) may approve the plan for implementation under 
        this subtitle if the Secretary determines that the plan 
        meets the requirements specified in subsection (d).
    (d) Criteria for Approval.--The Secretary may approve a 
conservation corridor plan only if, as determined by the 
Secretary, the plan provides for each of the following:
            (1) Voluntary actions.--Actions taken under the 
        plan--
                    (A) are voluntary;
                    (B) require the consent of willing 
                landowners; and
                    (C) provide a mechanism by which the 
                landowner may withdraw such consent without 
                adverse consequences other than the loss of any 
                payments to the landowner conditioned on 
                continued enrollment of the land.
            (2) Land of high conservation value.--Criteria 
        specified in the plan ensure that land enrolled in each 
        conservation program incorporated through the plan are 
        of exceptionally high conservation value, as determined 
        by the Secretary.
            (3) No effect on unenrolled land.--The enrollment 
        of land in a conservation program incorporated through 
        the plan will neither--
                    (A) adversely affect any adjacent land not 
                so enrolled; nor
                    (B) create any buffer zone on such 
                unenrolled land.
            (4) Greater benefits.--The conservation programs 
        incorporated through the plan provide benefits greater 
        than the benefits that would likely be achieved through 
        individual application of the conservation programs.
            (5) Sufficient staffing.--Staffing, considering 
        both Federal and non-Federal resources, is sufficient 
        to ensure success of the plan.

SEC. 2603. IMPLEMENTATION OF CONSERVATION CORRIDOR PLAN.

    (a) Memorandum of Agreement.--On approval of a conservation 
corridor plan, the Secretary may enter into a memorandum of 
agreement with the State, local government, or combination of 
States that submitted the plan to--
            (1) guarantee specific program resources for 
        implementation of the plan;
            (2) establish various compensation rates to the 
        extent that the parties to the agreement consider 
        justified; and
            (3) provide streamlined and integrated paperwork 
        requirements.
    (b) Continued Compliance With Plan Approval Criteria.--The 
Secretary shall terminate the memorandum of agreement entered 
into under subsection (a) with respect to an approved 
conservation corridor plan and cease the provision of resources 
for implementation of the plan if the Secretary determines 
that, in the implementation of the plan--
            (1) the State, local government, or combination of 
        States that submitted the plan has deviated from--
                    (A) the plan;
                    (B) the criteria specified in section 
                2602(d) on which approval of the plan was 
                conditioned; or
                    (C) the cost-sharing requirements of 
                section 2604(a) or any other condition of the 
                plan; or
            (2) the economic viability of agriculture in the 
        geographic region designated in the plan is being 
        hindered.
    (c) Progress Report.--At the end of the 3-year period that 
begins on the date on which funds are first provided with 
respect to a conservation corridor plan under the demonstration 
program, the State, local government, or combination of States 
that submitted the plan shall submit to the Secretary--
            (1) a report on the effectiveness of the activities 
        carried out under the plan; and
            (2) an evaluation of the economic viability of 
        agriculture in the geographic region designated in the 
        plan.
    (d) Duration.--The demonstration program shall be carried 
out for not less than 3 nor more than 5 years beginning on the 
date on which funds are first provided under the demonstration 
program.

SEC. 2604. FUNDING REQUIREMENTS.

    (a) Cost Sharing.--
            (1) Required non-federal share.--Subject to 
        paragraph (2), as a condition on the approval of a 
        conservation corridor plan, the Secretary shall require 
        the State and local participants to contribute 
        financial resources sufficient to cover at least 50 
        percent of the total cost of the activities carried out 
        under the plan.
            (2) Exception.--The Secretary may reduce the cost-
        sharing requirement in the case of a specific project 
        or activity under the demonstration program on good 
        cause and on demonstration that the project or activity 
        is likely to achieve extraordinary natural resource 
        benefits.
    (b) Reservation of Funds.--The Secretary may consider 
directing funds on a priority basis to the demonstration 
program and to projects in areas identified by the plan.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
subtitle for each of fiscal years 2002 through 2007.

                 Subtitle H--Funding and Administration

SEC. 2701. FUNDING AND ADMINISTRATION.

    Subtitle E of the Food Security Act of 1985 is amended by 
striking sections 1241 and 1242 (16 U.S.C. 3841, 3842) and 
inserting the following:

``SEC. 1241. COMMODITY CREDIT CORPORATION.

    ``(a) In General.--For each of fiscal years 2002 through 
2007, the Secretary shall use the funds, facilities, and 
authorities of the Commodity Credit Corporation to carry out 
the following programs under subtitle D (including the 
provision of technical assistance):
            ``(1) The conservation reserve program under 
        subchapter B of chapter 1.
            ``(2) The wetlands reserve program under subchapter 
        C of chapter 1.
            ``(3) The conservation security program under 
        subchapter A of chapter 2.
            ``(4) The farmland protection program under 
        subchapter B of chapter 2, using, to the maximum extent 
        practicable--
                    ``(A) $50,000,000 in fiscal year 2002;
                    ``(B) $100,000,000 in fiscal year 2003;
                    ``(C) $125,000,000 in each of fiscal years 
                2004 and 2005;
                    ``(D) $100,000,000 in fiscal year 2006; and
                    ``(E) $97,000,000 in fiscal year 2007.
            ``(5) The grassland reserve program under 
        subchapter C of chapter 2, using, to the maximum extent 
        practicable $254,000,000 for the period of fiscal years 
        2003 through 2007.
            ``(6) The environmental quality incentives program 
        under chapter 4, using, to the maximum extent 
        practicable--
                    ``(A) $400,000,000 in fiscal year 2002;
                    ``(B) $700,000,000 in fiscal year 2003;
                    ``(C) $1,000,000,000 in fiscal year 2004;
                    ``(D) $1,200,000,000 in each of fiscal 
                years 2005 and 2006; and
                    ``(E) $1,300,000,000 in fiscal year 2007.
            ``(7) The wildlife habitat incentives program under 
        section 1240N, using, to the maximum extent 
        practicable--
                    ``(A) $15,000,000 in fiscal year 2002;
                    ``(B) $30,000,000 in fiscal year 2003;
                    ``(C) $60,000,000 in fiscal year 2004; and
                    ``(D) $85,000,000 in each of fiscal years 
                2005 through 2007.
    ``(b) Section 11.--Nothing in this section affects the 
limit on expenditures for technical assistance imposed by 
section 11 of the Commodity Credit Corporation Charter Act (15 
U.S.C. 714i).
    ``(c) Regional Equity.--Before April 1 of each fiscal year, 
the Secretary shall give priority for funding under the 
conservation programs under subtitle D (excluding the 
conservation reserve program under subchapter B of chapter 1, 
the wetlands reserve program under subchapter C of chapter 1, 
and the conservation security program under subchapter A of 
chapter 2) to approved applications in any State that has not 
received, for the fiscal year, an aggregate amount of at least 
$12,000,000 for those conservation programs.

``SEC. 1242. DELIVERY OF TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide technical 
assistance under this title to a producer eligible for that 
assistance--
            ``(1) directly; or
            ``(2) at the option of the producer, through a 
        payment, as determined by the Secretary, to the 
        producer for an approved third party, if available.
    ``(b) Certification of Third-Party Providers.--
            ``(1) In general.--Not later than 180 days after 
        the date of enactment of the Farm Security and Rural 
        Investment Act of 2002, the Secretary shall, by 
        regulation, establish a system for--
                    ``(A) approving individuals and entities to 
                provide technical assistance to carry out 
                programs under this title (including criteria 
                for the evaluation of providers or potential 
                providers of technical assistance); and
                    ``(B) establishing the amounts and methods 
                for payments for that assistance.
            ``(2) Expertise.--In promulgating regulations to 
        carry out this subsection the Secretary shall ensure 
        that persons with expertise in the technical aspects of 
        conservation planning, watershed planning, 
        environmental engineering (including commercial 
        entities, nonprofit entities, State or local 
        governments or agencies, and other Federal agencies), 
        are eligible to become approved providers of the 
        technical assistance.
            ``(3) Interim assistance.--
                    ``(A) In general.--A person that has 
                provided technical assistance in accordance 
                with an agreement between the person and the 
                Secretary before the date of enactment of the 
                Farm Security and Rural Investment Act of 2002 
                may continue to provide technical assistance 
                under this section until the date on which the 
                Secretary establishes the system described in 
                paragraph (1).
                    ``(B) Evaluation.--If a person described in 
                subparagraph (A) seeks to continue to provide 
                technical assistance after the date referred to 
                in subparagraph (A), the Secretary shall 
                evaluate the person using criteria referred to 
                in paragraph (1).
            ``(4) Non-federal assistance.--The Secretary may 
        request the services of, and enter into cooperative 
        agreements or contracts with, non-Federal entities to 
        assist the Secretary in providing technical assistance 
        necessary to develop and implement conservation 
        programs under this title.''.

SEC. 2702. REGULATIONS.

    (a) In General.--Except as otherwise provided in this title 
or an amendment made by this title, not later than 90 days 
after the date of enactment of this Act, the Secretary of 
Agriculture, in consultation with the Commodity Credit 
Corporation, shall promulgate such regulations as are necessary 
to implement this title.
    (b) Applicable Authority.--The promulgation of regulations 
under subsection (a) and administration of this title--
            (1) shall--
                    (A) be carried out without regard to 
                chapter 35 of title 44, United States Code 
                (commonly known as the Paperwork Reduction 
                Act); and
                    (B) the Statement of Policy of the 
                Secretary of Agriculture effective July 24, 
                1971 (36 Fed. Reg. 13804) relating to notices 
                of proposed rulemaking and public participation 
                in rulemaking; and
            (2) may--
                    (A) be promulgated with an opportunity for 
                notice and comment; or
                    (B) if determined to be appropriate by the 
                Secretary of Agriculture or the Commodity 
                Credit Corporation, as an interim rule 
                effective on publication with an opportunity 
                for notice and comment.
    (c) Congressional Review of Agency Rulemaking.--In carrying 
out this section, the Secretary shall use the authority 
provided under section 808(2) of title 5, United States Code.

                            TITLE III--TRADE

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

SEC. 3001. UNITED STATES POLICY.

    Section 2 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1691) is amended--
            (1) in paragraph (4), by striking ``and'' at the 
        end;
            (2) in paragraph (5), by striking the period at the 
        end and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(6) prevent conflicts.''.

SEC. 3002. PROVISION OF AGRICULTURAL COMMODITIES.

    Section 202 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1722) is amended--
            (1) in subsection (b), by adding at the end the 
        following:
            ``(3) Program diversity.--The Administrator shall--
                    ``(A) encourage eligible organizations to 
                propose and implement program plans to address 
                1 or more aspects of the program under section 
                201; and
                    ``(B) consider proposals that incorporate a 
                variety of program objectives and strategic 
                plans based on the identification by eligible 
                organizations of appropriate activities, 
                consistent with section 201, to assist 
                development of foreign countries.'';
            (2) in subsection (e)(1), by striking ``not less 
        than $10,000,000, and not more than $28,000,000,'' and 
        inserting ``not less than 5 percent nor more than 10 
        percent of the funds''; and
            (3) by adding at the end the following:
    ``(h) Streamlined Program Management.--
            ``(1) Improvements.--Not later than 1 year after 
        the date of enactment of this subsection, the 
        Administrator shall--
                    ``(A) streamline program procedures and 
                guidelines under this title for agreements with 
                eligible organizations for programs in 1 or 
                more countries; and
                    ``(B) effective beginning with fiscal year 
                2004, to the maximum extent practicable, 
                incorporate the changes into the procedures and 
                guidelines for programs and the guidelines for 
                resource requests.
            ``(2) Streamlined procedures and guidelines.--In 
        carrying out paragraph (1), the Administrator shall 
        make improvements in the Office of Food for Peace 
        management systems that include--
                    ``(A) expedition of and greater consistency 
                in the program review and approval process 
                under this title;
                    ``(B) streamlining of information 
                collection and reporting systems by identifying 
                the critical information that needs to be 
                monitored and reported on by eligible 
                organizations; and
                    ``(C) for approved programs, provision of 
                greater flexibility for an eligible 
                organization to make modifications in program 
                activities to achieve program results with 
                streamlined procedures for reporting such 
                modifications.
            ``(3) Consultation.--
                    ``(A) In general.--Paragraphs (1) and (2) 
                shall be carried out in accordance with section 
                205 and subsections (b) and (c) of section 207.
                    ``(B) Consultation with congressional 
                committees.--Not later than 180 days after the 
                date of enactment of this subsection, the 
                Administrator shall consult with the Committee 
                on Agriculture and the Committee on 
                International Relations of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate on progress made in carrying out this 
                subsection.
            ``(4) Report.--Not later than 270 days after the 
        date of enactment of this subsection, the Administrator 
        shall submit to the Committee on Agriculture and the 
        Committee on International Relations of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        improvements made and planned upgrades in the 
        information management, procurement, and financial 
        management systems to administer this title.''.

SEC. 3003. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY 
                    ORGANIZATIONS AND COOPERATIVES.

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

SEC. 3004. LEVELS OF ASSISTANCE.

    Section 204(a) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1724(a)) is amended--
            (1) by striking ``1996 through 2002'' each place it 
        appears and inserting ``2002 through 2007'';
            (2) in paragraph (1), by striking ``2,025,000'' and 
        inserting ``2,500,000''; and
            (3) in paragraph (2), by striking ``1,550,000 
        metric tons'' and inserting ``1,875,000 metric tons''.

SEC. 3005. FOOD AID CONSULTATIVE GROUP.

    Section 205(f) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1725(f)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 3006. MAXIMUM LEVEL OF EXPENDITURES.

    Section 206 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1726) is repealed.

SEC. 3007. ADMINISTRATION.

    Section 207 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1726a) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraph (2) as 
                paragraph (3); and
                    (B) by striking paragraph (1) and inserting 
                the following:
            ``(1) Recipient countries.--A proposal to enter 
        into a nonemergency food assistance agreement under 
        this title shall identify the recipient country or 
        countries that are the subject of the agreement.
            ``(2) Timing.--Not later than 120 days after the 
        date of receipt by the Administrator of a proposal 
        submitted by an eligible organization under this title, 
        the Administrator shall determine whether to accept the 
        proposal.'';
            (2) in subsection (b), by striking ``guideline'' 
        each place it appears and inserting ``guideline or 
        annual policy guidance''; and
            (3) by adding at the end the following:
    ``(e) Timely Approval.--
            ``(1) In general.--The Administrator is encouraged 
        to finalize program agreements and resource requests 
        for programs under this section before the beginning of 
        each fiscal year.
            ``(2) Report.--Not later than December 1 of each 
        year, the Administrator shall submit to the Committee 
        on Agriculture and the Committee on International 
        Relations of the House of Representatives and the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report that contains--
                    ``(A) a list of programs, countries, and 
                commodities approved to date for assistance 
                under this section; and
                    ``(B) a statement of the total amount of 
                funds approved to date for transportation and 
                administrative costs under this section.''.

SEC. 3008. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION, 
                    DELIVERY, AND DISTRIBUTION OF SHELF-STABLE 
                    PREPACKAGED FOODS.

    Section 208(f) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1726b(f)) is amended by 
striking ``and 2002'' and inserting ``through 2007''.

SEC. 3009. SALE PROCEDURE.

    (a) In General.--Section 403 of the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1733) is 
amended--
            (1) in subsection (e)--
                    (A) by striking ``In carrying'' and 
                inserting the following:
            ``(1) In general.--In carrying''; and
                    (B) by adding at the end the following:
            ``(2) Sale price.--Sales of agricultural 
        commodities described in paragraph (1) shall be made at 
        a reasonable market price in the economy where the 
        agricultural commodity is to be sold, as determined by 
        the Secretary or the Administrator, as appropriate.''; 
        and
            (2) by adding at the end the following:
    ``(l) Sale Procedure.--
            ``(1) In general.--Subsections (b) and (h) shall 
        apply to sales of commodities in recipient countries to 
        generate proceeds to carry out projects under--
                    ``(A) titles I and II;
                    ``(B) section 416(b) of the Agricultural 
                Act of 1949 (7 U.S.C. 1431(b)); and
                    ``(C) the Food for Progress Act of 1985 (7 
                U.S.C. 1736o).
            ``(2) Currency.--A sale described in paragraph (1) 
        may be made in United States dollars or other 
        currencies.''.
    (b) Conforming Amendments.--
            (1) Section 416(b) of the Agricultural Act of 1949 
        (7 U.S.C. 1431(b)) is amended by adding at the end the 
        following:
            ``(10) Sale procedure.--In approving sales of 
        commodities under this subsection, the Secretary shall 
        follow the sale procedure described in section 403(l) 
        of the Agricultural Trade Development and Assistance 
        Act of 1954.''.
            (2) Subsection (f) of the Food for Progress Act of 
        1985 (7 U.S.C. 1736o(f)) is amended by adding at the 
        end the following:
            ``(5) Sale procedure.--In making sales of eligible 
        commodities under this section, the Secretary shall 
        follow the sale procedure described in section 403(l) 
        of the Agricultural Trade Development and Assistance 
        Act of 1954.''.

SEC. 3010. PREPOSITIONING.

    Section 407(c)(4) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736a(c)(4)) is amended by 
striking ``and 2002'' and inserting ``through 2007''.

SEC. 3011. TRANSPORTATION AND RELATED COSTS.

    Section 407(c)(1) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736a(c)(1)) is amended--
            (1) by striking ``The Administrator'' and inserting 
        the following:
                    ``(A) In general.--The Administrator''; and
            (2) by adding at the end the following:
            ``(B) Certain commodities made available for 
        nonemergency assistance.--In the case of agricultural 
        commodities made available for nonemergency assistance 
        under title II for least developed countries that meet 
        the poverty and other eligibility criteria established 
        by the International Bank for Reconstruction and 
        Development for financing under the International 
        Development Association, the Administrator may pay the 
        transportation costs incurred in moving the 
        agricultural commodities from designated points of 
        entry or ports of entry abroad to storage and 
        distribution sites and associated storage and 
        distribution costs.''.

SEC. 3012. EXPIRATION DATE.

    Section 408 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736b) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 3013. MICRONUTRIENT FORTIFICATION PROGRAMS.

    Section 415 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1736g-2) is amended--
            (1) in the section heading, by striking ``PILOT 
        PROGRAM.'' and inserting ``PROGRAMS.'';
            (2) in subsection (a)--
                    (A) by redesignating paragraphs (1) and (2) 
                as subparagraphs (A) and (B), respectively, and 
                adjusting the margins appropriately;
                    (B) by striking the first sentence and 
                inserting the following:
            ``(1) Programs.--Not later than September 30, 2003, 
        the Administrator, in consultation with the Secretary, 
        shall establish micronutrient fortification 
        programs.''; and
                    (C) in the second sentence, by striking 
                ``The purpose of the program'' and inserting 
                the following:
            ``(2) Purpose.--The purpose of a program''; and
                    (D) in paragraph (2) (as designated by 
                subparagraph (C))--
                            (i) in subparagraph (A), by 
                        striking ``and'' at the end;
                            (ii) in subparagraph (B)--
                                    (I) by striking ``whole''; 
                                and
                                    (II) by striking the period 
                                at the end and inserting ``; 
                                and''; and
                            (iii) by adding at the end the 
                        following:
                    ``(C) assess and apply technologies and 
                systems to improve and ensure the quality, 
                shelf life, bioavailability, and safety of 
                fortified food aid commodities, and products of 
                those commodities, that are provided to 
                developing countries, by using the same 
                mechanism that was used to assess the 
                micronutrient fortification program in the 
                report entitled `Micronutrient Compliance 
                Review of Fortified P.L. 480 Commodities', 
                published October 2001 with funds from the 
                Bureau for Humanitarian Response of the United 
                States Agency for International Development.'';
            (3) in subsection (b), by striking ``the pilot 
        program'' and inserting ``a program under this 
        section'';
            (4) in the first sentence of subsection (c)--
                    (A) by striking ``the pilot program, 
                whole'' and inserting ``a program,'';
                    (B) by striking ``the pilot program may'' 
                and inserting ``a program may'';
                    (C) by striking ``including'' and inserting 
                ``such as''; and
                    (D) by striking ``and iodine'' and 
                inserting ``iodine, and folic acid''; and
            (5) in subsection (d)--
                    (A) by striking ``the pilot program'' and 
                inserting ``programs''; and
                    (B) by striking ``2002'' and inserting 
                ``2007''.

SEC. 3014. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.

    Section 501 of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1737) is amended to read as 
follows:

``SEC. 501. JOHN OGONOWSKI FARMER-TO-FARMER PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Caribbean basin country.--The term `Caribbean 
        Basin country' means a country eligible for designation 
        as a beneficiary country under section 212 of the 
        Caribbean Basin Economic Recovery Act (19 U.S.C. 2702).
            ``(2) Emerging market.--The term `emerging market' 
        means a 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.
            ``(3) Middle income country.--The term `middle 
        income country' means a country that has developed 
        economically to the point at which the country does not 
        receive bilateral development assistance from the 
        United States.
            ``(4) Sub-saharan african country.--The term `sub-
        Saharan African country' has the meaning given the term 
        in section 107 of the Trade and Development Act of 2000 
        (19 U.S.C. 3706).
    ``(b) Provision.--Notwithstanding any other provision of 
law, to further assist developing countries, middle-income 
countries, emerging markets, sub-Saharan African countries, and 
Caribbean Basin countries to increase farm production and 
farmer incomes, the President may--
            ``(1) establish and administer a program, to be 
        known as the `John Ogonowski Farmer-to-Farmer Program', 
        of farmer-to-farmer assistance between the United 
        States and such countries to assist in--
                    ``(A) increasing food production and 
                distribution; and
                    ``(B) improving the effectiveness of the 
                farming and marketing operations of 
                agricultural producers in those countries;
            ``(2) use United States agricultural producers, 
        agriculturalists, colleges and universities (including 
        historically black colleges and universities, land 
        grant colleges or universities, and foundations 
        maintained by colleges or universities), private 
        agribusinesses, private organizations (including 
        grassroots organizations with an established and 
        demonstrated capacity to carry out such a bilateral 
        exchange program), private corporations, and nonprofit 
        farm organizations to work in conjunction with 
        agricultural producers and farm organizations in those 
        countries, on a voluntary basis--
                    ``(A) to improve agricultural and 
                agribusiness operations and agricultural 
                systems in those countries, including 
                improving--
                            ``(i) animal care and health;
                            ``(ii) field crop cultivation;
                            ``(iii) fruit and vegetable 
                        growing;
                            ``(iv) livestock operations;
                            ``(v) food processing and 
                        packaging;
                            ``(vi) farm credit;
                            ``(vii) marketing;
                            ``(viii) inputs; and
                            ``(ix) agricultural extension; and
                    ``(B) to strengthen cooperatives and other 
                agricultural groups in those countries;
            ``(3) transfer the knowledge and expertise of 
        United States agricultural producers and businesses, on 
        an individual basis, to those countries while enhancing 
        the democratic process by supporting private and public 
        agriculturally related organizations that request and 
        support technical assistance activities through cash 
        and in-kind services;
            ``(4) to the maximum extent practicable, make 
        grants to or enter into contracts or other cooperative 
        agreements with private voluntary organizations, 
        cooperatives, land grant universities, private 
        agribusiness, or nonprofit farm organizations to carry 
        out this section (except that any such contract or 
        other agreement may obligate the United States to make 
        outlays only to the extent that the budget authority 
        for such outlays is available under subsection (d) or 
        has otherwise been provided in advance in appropriation 
        Acts);
            ``(5) coordinate programs established under this 
        section with other foreign assistance programs and 
        activities carried out by the United States; and
            ``(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, 
        within the country in which the program is being 
        conducted, of--
                    ``(A) foreign currencies that accrue from 
                the sale of agricultural commodities and 
                products under this Act; and
                    ``(B) local currencies generated from other 
                types of foreign assistance activities.
    ``(c) Special Emphasis on Sub-Saharan African and Caribbean 
Basin Countries.--
            ``(1) Findings.--Congress finds that--
                    ``(A) agricultural producers in sub-Saharan 
                African and Caribbean Basin countries need 
                training in agricultural techniques that are 
                appropriate for the majority of eligible 
                agricultural producers in those countries, 
                including training in--
                            ``(i) standard growing practices;
                            ``(ii) insecticide and sanitation 
                        procedures; and
                            ``(iii) other agricultural methods 
                        that will produce increased yields of 
                        more nutritious and healthful crops;
                    ``(B) agricultural producers in the United 
                States (including African-American agricultural 
                producers) and banking and insurance 
                professionals have agribusiness expertise that 
                would be invaluable for agricultural producers 
                in sub-Saharan African and Caribbean Basin 
                countries;
                    ``(C) a commitment by the United States is 
                appropriate to support the development of a 
                comprehensive agricultural skills training 
                program for those agricultural producers that 
                focuses on--
                            ``(i) improving knowledge of 
                        insecticide and sanitation procedures 
                        to prevent crop destruction;
                            ``(ii) teaching modern agricultural 
                        techniques that would facilitate a 
                        continual analysis of crop production, 
                        including--
                                    ``(I) the identification 
                                and development of standard 
                                growing practices; and
                                    ``(II) the establishment of 
                                systems for recordkeeping;
                            ``(iii) the use and maintenance of 
                        agricultural equipment that is 
                        appropriate for the majority of 
                        eligible agricultural producers in sub-
                        Saharan African or Caribbean Basin 
                        countries;
                            ``(iv) the expansion of small 
                        agricultural operations into 
                        agribusiness enterprises by increasing 
                        access to credit for agricultural 
                        producers through--
                                    ``(I) the development and 
                                use of village banking systems; 
                                and
                                    ``(II) the use of 
                                agricultural risk insurance 
                                pilot products; and
                            ``(v) marketing crop yields to 
                        prospective purchasers (including 
                        businesses and individuals) for local 
                        needs and export; and
                    ``(D) programs that promote the exchange of 
                agricultural knowledge and expertise through 
                the exchange of American and foreign 
                agricultural producers have been effective in 
                promoting improved agricultural techniques and 
                food security and the extension of additional 
                resources to such farmer-to-farmer exchanges is 
                warranted.
            ``(2) Goals for programs carried out in sub-saharan 
        african and caribbean countries.--The goals of programs 
        carried out under this section in sub-Saharan African 
        and Caribbean Basin countries shall be--
                    ``(A) to expand small agricultural 
                operations in those countries into agribusiness 
                enterprises by increasing access to credit for 
                agricultural producers through--
                            ``(i) the development and use of 
                        village banking systems; and
                            ``(ii) the use of agricultural risk 
                        insurance pilot products;
                    ``(B) to provide training to agricultural 
                producers in those countries that will--
                            ``(i) enhance local food security; 
                        and
                            ``(ii) help mitigate and alleviate 
                        hunger;
                    ``(C) to provide training to agricultural 
                producers in those countries in groups to 
                encourage participants to share and pass on to 
                other agricultural producers in the home 
                communities of the participants, the 
                information and skills obtained from the 
                training, rather than merely retaining the 
                information and skills for the personal 
                enrichment of the participants; and
                    ``(D) to maximize the number of 
                beneficiaries of the programs in sub-Saharan 
                African and Caribbean Basin countries.
    ``(d) Minimum Funding.--Notwithstanding any other provision 
of law, in addition to any funds that may be specifically 
appropriated to carry out this section, not less than 0.5 
percent of the amounts made available for each of fiscal years 
2002 through 2007 to carry out this Act shall be used to carry 
out programs under this section, with--
            ``(1) not less than 0.2 percent to be used for 
        programs in developing countries; and
            ``(2) not less than 0.1 percent to be used for 
        programs in sub-Saharan African and Caribbean Basin 
        countries.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be 
        appropriated to carry out programs under this section 
        in sub-Saharan African and Caribbean Basin countries 
        $10,000,000 for each of fiscal years 2002 through 2007.
            ``(2) Administrative costs.--Not more than 5 
        percent of the funds made available for a fiscal year 
        under paragraph (1) may be used to pay administrative 
        costs incurred in carrying out programs in sub-Saharan 
        African and Caribbean Basin countries.''.

               Subtitle B--Agricultural Trade Act of 1978

SEC. 3101. EXPORTER ASSISTANCE INITIATIVE.

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

``SEC. 107. EXPORTER ASSISTANCE INITIATIVE.

    ``To provide a comprehensive source of information to 
facilitate exports of United States agricultural commodities, 
the Secretary shall maintain on a website on the Internet 
information to assist exporters and potential exporters of 
United States agricultural commodities.''.

SEC. 3102. EXPORT CREDIT GUARANTEE PROGRAM.

    (a) Terms of Supplier Credit Program.--Section 202(a) of 
the Agricultural Trade Act of 1978 (7 U.S.C. 5622(a)) is 
amended by adding at the end the following:
            ``(3) Extended supplier credits.--
                    ``(A) In general.--Subject to the 
                appropriation of funds under subparagraph (B), 
                in carrying out this section, the Commodity 
                Credit Corporation may issue guarantees for the 
                repayment of credit made available for a period 
                of more than 180 days, but not more than 360 
                days, by a United States exporter to a buyer in 
                a foreign country.
                    ``(B) Authorization of appropriations.--
                There are authorized to be appropriated such 
                sums as are necessary to fund the additional 
                costs attributable to the portion of any 
                guarantee issued under this paragraph to cover 
                the repayment of credit beyond the initial 180-
                day period.''.
    (b) Processed and High-Value Products.--Section 202(k)(1) 
of the Agricultural Trade Act of 1978 (7 U.S.C. 5622(k)(1)) is 
amended by striking ``, 2001, and 2002'' and inserting 
``through 2007''.
    (c) Report.--Section 202 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5622) is amended by adding at the end the 
following:
    ``(l) Consultation on Agricultural Export Credit 
Programs.--The Secretary and the United States Trade 
Representative shall consult on a regular basis with the 
Committee on Agriculture, and the Committee on International 
Relations, of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate on the 
status of multilateral negotiations regarding agricultural 
export credit programs.''.
    (d) Reauthorization.--Section 211(b)(1) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5641(b)(1)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 3103. MARKET ACCESS PROGRAM.

    Section 211(c) of the Agricultural Trade Act of 1978 (7 
U.S.C. 5641(c)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively, and indenting 
        appropriately;
            (2) by striking ``The Commodity'' and inserting the 
        following:
            ``(1) In general.--The Commodity'';
            (3) by striking subparagraph (A) (as so 
        redesignated) and inserting the following:
                    ``(A) in addition to any funds that may be 
                specifically appropriated to implement a market 
                access program, not more than $90,000,000 for 
                fiscal year 2001, $100,000,000 for fiscal year 
                2002, $110,000,000 for fiscal year 2003, 
                $125,000,000 for fiscal year 2004, $140,000,000 
                for fiscal year 2005, and $200,000,000 for each 
                of fiscal years 2006 and 2007, of the funds of, 
                or an equal value of commodities owned by, the 
                Commodity Credit Corporation; and''; and
            (4) by adding at the end the following:
            ``(2) Program priorities.--In providing any amount 
        of funds made available under paragraph (1)(A) for any 
        fiscal year that is in excess of the amount made 
        available under paragraph (1)(A) for fiscal year 2001, 
        the Secretary shall, to the maximum extent 
        practicable--
                    ``(A) give equal consideration to--
                            ``(i) proposals submitted by 
                        organizations that were participating 
                        organizations in prior fiscal years; 
                        and
                            ``(ii) proposals submitted by 
                        eligible trade organizations that have 
                        not previously participated in the 
                        program established under this title; 
                        and
                    ``(B) give equal consideration to--
                            ``(i) proposals submitted for 
                        activities in emerging markets; and
                            ``(ii) proposals submitted for 
                        activities in markets other than 
                        emerging markets.''.

SEC. 3104. EXPORT ENHANCEMENT PROGRAM.

    (a) In General.--Section 301(e)(1)(G) of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5651(e)(1)(G)) is amended by 
striking ``fiscal year 2002'' and inserting ``each of fiscal 
years 2002 through 2007''.
    (b) Unfair Trade Practices.--Section 102(5)(A) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5602(5)(A)) is 
amended--
            (1) in clause (i), by striking ``or'' at the end; 
        and
            (2) by striking clause (ii) and inserting the 
        following:
                            ``(ii) in the case of a 
                        monopolistic state trading enterprise 
                        engaged in the export sale of an 
                        agricultural commodity, implements a 
                        pricing practice that is inconsistent 
                        with sound commercial practice;
                            ``(iii) provides a subsidy that--
                                    ``(I) decreases market 
                                opportunities for United States 
                                exports; or
                                    ``(II) unfairly distorts an 
                                agricultural market to the 
                                detriment of United States 
                                exporters;
                            ``(iv) imposes an unfair technical 
                        barrier to trade, including--
                                    ``(I) a trade restriction 
                                or commercial requirement (such 
                                as a labeling requirement) that 
                                adversely affects a new 
                                technology (including 
                                biotechnology); and
                                    ``(II) an unjustified 
                                sanitary or phytosanitary 
                                restriction (including any 
                                restriction that, in violation 
                                of the Uruguay Round 
                                Agreements, is not based on 
                                scientific principles;
                            ``(v) imposes a rule that unfairly 
                        restricts imports of United States 
                        agricultural commodities in the 
                        administration of tariff rate quotas; 
                        or
                            ``(vi) fails to adhere to, or 
                        circumvents any obligation under, any 
                        provision of a trade agreement with the 
                        United States.''.

SEC. 3105. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.

    (a) Value-Added Products.--
            (1) In general.--Section 702(a) of the Agricultural 
        Trade Act of 1978 (7 U.S.C. 5722(a)) is amended by 
        inserting ``, with a continued significant emphasis on 
        the importance of the export of value-added United 
        States agricultural products into emerging markets'' 
        after ``products''.
            (2) Report to congress.--Section 702 of the 
        Agricultural Trade Act of 1978 (7 U.S.C. 5722) is 
        amended by adding at the end the following:
    ``(c) Report to Congress.--The Secretary shall annually 
submit to the Committee on Agriculture and the Committee on 
International Relations of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report on activities under this section describing the amount 
of funding provided, the types of programs funded, the value-
added products that have been targeted, and the foreign markets 
for those products that have been developed.''.
    (b) Funding.--Section 703 of the Agricultural Trade Act of 
1978 (7 U.S.C. 5723) is amended to read as follows:

``SEC. 703. FUNDING.

    ``(a) In General.--To carry out this title, the Secretary 
shall use funds of the Commodity Credit Corporation, or 
commodities of the Commodity Credit Corporation of a comparable 
value, in the amount of $34,500,000 for each of fiscal years 
2002 through 2007.
    ``(b) Program Priorities.--In providing any amount of funds 
or commodities made available under subsection (a) for any 
fiscal year that is in excess of the amount made available 
under this section for fiscal year 2001, the Secretary shall, 
to the maximum extent practicable--
            ``(1) give equal consideration to--
                    ``(A) proposals submitted by organizations 
                that were participating organizations in prior 
                fiscal years; and
                    ``(B) proposals submitted by eligible trade 
                organizations that have not previously 
                participated in the program established under 
                this title; and
            ``(2) give equal consideration to--
                    ``(A) proposals submitted for activities in 
                emerging markets; and
                    ``(B) proposals submitted for activities in 
                markets other than emerging markets.''.

SEC. 3106. FOOD FOR PROGRESS.

    (a) In General.--Subsections (f)(3), (k), and (l)(1) of the 
Food for Progress Act of 1985 (7 U.S.C. 1736o) are each amended 
by striking ``2002'' and inserting ``2007''.
    (b) Definitions; Program.--
            (1) In general.--The Food for Progress Act of 1985 
        (7 U.S.C. 1736o) is amended by striking subsections (b) 
        and (c) and inserting the following:
    ``(b) Definitions.--In this section:
            ``(1) Cooperative.--The term `cooperative' has the 
        meaning given the term in section 402 of the 
        Agricultural Trade Development and Assistance Act of 
        1954 (7 U.S.C. 1732).
            ``(2) Corporation.--The term `Corporation' means 
        the Commodity Credit Corporation.
            ``(3) Developing country.--The term `developing 
        country' has the meaning given the term in section 402 
        of the Agricultural Trade Development and Assistance 
        Act of 1954 (7 U.S.C. 1732).
            ``(4) Eligible commodity.--The term `eligible 
        commodity' means an agricultural commodity, or a 
        product of an agricultural commodity, in inventories of 
        the Corporation or acquired by the President or the 
        Corporation for disposition through commercial 
        purchases under a program authorized under this 
        section.
            ``(5) Eligible entity.--The term `eligible entity' 
        means--
                    ``(A) the government of an emerging 
                agricultural country;
                    ``(B) an intergovernmental organization;
                    ``(C) a private voluntary organization;
                    ``(D) a nonprofit agricultural organization 
                or cooperative;
                    ``(E) a nongovernmental organization; and
                    ``(F) any other private entity.
            ``(6) Food security.--The term `food security' 
        means access by all people at all times to sufficient 
        food and nutrition for a healthy and productive life.
            ``(7) Nongovernmental organization.--The term 
        `nongovernmental organization' has the meaning given 
        the term in section 402 of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1732).
            ``(8) Private voluntary organization.--The term 
        `private voluntary organization' has the meaning given 
        the term in section 402 of the Agricultural Trade 
        Development and Assistance Act of 1954 (7 U.S.C. 1732).
            ``(9) Program.--The term `program' means a food 
        assistance or development initiative proposed by an 
        eligible entity and approved by the President under 
        this section.
    ``(c) Program.--In order to use the food resources of the 
United States more effectively in support of developing 
countries, and countries that are emerging democracies that 
have made commitments to introduce or expand free enterprise 
elements in their agricultural economies through changes in 
commodity pricing, marketing, input availability, distribution, 
and private sector involvement, the President may enter into 
agreements with eligible entities to furnish to the countries 
eligible commodities made available under subsections (e) and 
(f).''.
            (2) Conforming amendments.--The Food for Progress 
        Act of 1985 (7 U.S.C. 136o) is amended--
                    (A) in the first sentence of subsection 
                (d), by striking ``food'';
                    (B) in subsection (l)(2), by striking 
                ``agricultural'';
                    (C) in subsection (m)(1), by striking 
                ``these'';
                    (D) in subsections (d), (e), (f), (h), (j), 
                (l), and (m), by striking ``commodities'' each 
                place it appears and inserting ``eligible 
                commodities''; and
                    (E) in subsections (e), (f), and (l), by 
                striking ``Commodity Credit Corporation'' each 
                place it appears and inserting ``Corporation''; 
                and
                    (F) by striking subsection (o).
    (c) Consideration for Agreements.--Subsection (d) of the 
Food for Progress Act of 1985 (7 U.S.C. 1736o(d)) is amended by 
striking ``(d) In determining'' and inserting ``(d) 
Consideration for Agreements.--In determining''.
    (d) Funding of Eligible Commodities.--Subsection (e) of the 
Food for Progress Act of 1985 (7 U.S.C. 1736o(e)) is amended--
            (1) by striking ``(e)'' and inserting ``(e) Funding 
        of Eligible Commodities.--'';
            (2) in paragraph (2), by inserting ``, and 
        subsection (g) does not apply to eligible commodities 
        furnished on a grant basis or on credit terms under 
        that title'' before the period at the end; and
            (3) by adding at the end the following:
            ``(5) No effect on domestic programs.--The 
        President shall not make an eligible commodity 
        available for disposition under this section in any 
        amount that will reduce the amount of the eligible 
        commodity that is traditionally made available through 
        donations to domestic feeding programs or agencies, as 
        determined by the President.
    (e) Provision of Eligible Commodities to Developing 
Countries.--Subsection (f) of the Food for Progress Act of 1985 
(7 U.S.C. 1736o(f)) is amended--
            (1) by striking ``(f)'' and inserting ``(f) 
        Provision of Eligible Commodities to Developing 
        Countries.--''; and
            (2) in paragraph (3), by striking ``$30,000,000 (or 
        in the case of fiscal year 1999, $35,000,000)'' and 
        inserting ``$40,000,000''.
    (f) Minimum Tonnage.--The Food for Progress Act of 1985 is 
amended by striking subsection (g) (7 U.S.C. 1736o(g)) and 
inserting the following:
    ``(g) Minimum Tonnage.--Subject to subsection (f)(3), not 
less than 400,000 metric tons of eligible commodities may be 
provided under this section for the program for each of fiscal 
years 2002 through 2007.''.
    (g) Prohibition on Resale or Transshipment of Eligible 
Commodities.--Subsection (h) of the Food for Progress Act of 
1985 (7 U.S.C. 1736o(h)) is amended by striking ``(h) An 
agreement'' and inserting ``(h) Prohibition on Resale or 
Transshipment of Eligible Commodities.--An agreement''.
    (h) Displacement of United States Commercial Sales.--
Subsection (i) of the Food for Progress Act of 1985 (7 U.S.C. 
1736o(i)) is amended by striking ``(i) In entering'' and 
inserting ``(i) Displacement of United States Commercial 
Sales.--In entering''.
    (i) Multicountry or Multiyear Basis.--Subsection (j) of the 
Food for Progress Act of 1985 (7 U.S.C. 1736o(j)) is amended--
            (1) by striking ``(j) In carrying out this section, 
        the President may,'' and inserting the following: ``(j) 
        Multicountry or Multiyear Basis.--
            ``(1) In general.--In carrying out this section, 
        the President,'';
            (2) by striking ``approve'' and inserting ``is 
        encouraged to approve'';
            (3) by striking ``multiyear'' and inserting 
        ``multicountry or multiyear''; and
            (4) by adding at the end the following:
            ``(2) Deadline for program announcements.--Before 
        the beginning of any fiscal year, the President shall, 
        to the maximum extent practicable--
                    ``(A) make all determinations concerning 
                program agreements and resource requests for 
                programs under this section; and
                    ``(B) announce those determinations.
            ``(3) Report.--Not later than December 1 of each 
        fiscal year, the President shall submit to the 
        Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a list of 
        programs, countries, and eligible commodities, and the 
        total amount of funds for transportation and 
        administrative costs, approved to date for the fiscal 
        year under this section.''.
    (j) Effective and Termination Dates.--Subsection (k) of the 
Food for Progress Act of 1985 (7 U.S.C. 1736o(k)) is amended by 
striking ``(k) This section'' and inserting ``(k) Effective and 
Termination Dates.--This section''.
    (k) Administrative Expenses.--Subsection (l) of the Food 
for Progress Act of 1985 (7 U.S.C. 1736o(l)) is amended--
            (1) by striking ``(l)'' and inserting ``(l) 
        Administrative Expenses.--'';
            (2) in paragraph (1), by striking ``$10,000,000'' 
        and inserting ``$15,000,000'';
            (3) in paragraph (3), by striking ``local 
        currencies'' and inserting ``proceeds''; and
            (4) by adding at the end the following:
            ``(4) Humanitarian or development purposes.--The 
        Secretary may authorize the use of proceeds to pay the 
        costs incurred by an eligible entity under this section 
        for--
                    ``(A)(i) programs targeted at hunger and 
                malnutrition; or
                    ``(ii) development programs involving food 
                security;
                    ``(B) transportation, storage, and 
                distribution of eligible commodities provided 
                under this section; and
                    ``(C) administration, sales, monitoring, 
                and technical assistance.''.
    (l) Presidential Approval.--Subsection (m) of the Food for 
Progress Act of 1985 (7 U.S.C. 1736o(m)) is amended by striking 
``(m) In carrying'' and inserting ``(m) Presidential 
Approval.--In carrying''.
    (m) Program Management.--The Food for Progress Act of 1985 
is amended by striking subsection (n) (7 U.S.C. 1736o(n)) and 
inserting the following:
    ``(n) Program Management.--
            ``(1) In general.--The President shall ensure, to 
        the maximum extent practicable, that each eligible 
        entity participating in 1 or more programs under this 
        section--
                    ``(A) uses eligible commodities made 
                available under this section--
                            ``(i) in an effective manner;
                            ``(ii) in the areas of greatest 
                        need; and
                            ``(iii) in a manner that promotes 
                        the purposes of this section;
                    ``(B) in using eligible commodities, 
                assesses and takes into account the needs of 
                recipient countries and the target populations 
                of the recipient countries;
                    ``(C) works with recipient countries, and 
                indigenous institutions or groups in recipient 
                countries, to design and carry out mutually 
                acceptable programs authorized under this 
                section; and
                    ``(D) monitors and reports on the 
                distribution or sale of eligible commodities 
                provided under this section using methods that, 
                as determined by the President, facilitate 
                accurate and timely reporting.
            ``(2) Requirements.--
                    ``(A) In general.--Not later than 270 days 
                after the date of enactment of this paragraph, 
                the President shall review and, as necessary, 
                make changes in regulations and internal 
                procedures designed to streamline, improve, and 
                clarify the application, approval, and 
                implementation processes pertaining to 
                agreements under this section.
                    ``(B) Considerations.--In conducting the 
                review, the President shall consider--
                            ``(i) revising procedures for 
                        submitting proposals;
                            ``(ii) developing criteria for 
                        program approval that separately 
                        address the objectives of the program;
                            ``(iii) pre-screening organizations 
                        and proposals to ensure that the 
                        minimum qualifications are met;
                            ``(iv) implementing e-government 
                        initiatives and otherwise improving the 
                        efficiency of the proposal submission 
                        and approval processes;
                            ``(v) upgrading information 
                        management systems;
                            ``(vi) improving commodity and 
                        transportation procurement processes; 
                        and
                            ``(vii) ensuring that evaluation 
                        and monitoring methods are sufficient.
                    ``(C) Consultations.--Not later than 1 year 
                after the date of enactment of this paragraph, 
                the President shall consult with the Committee 
                on Agriculture, and the Committee on 
                International Relations, of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate on changes made in regulations and 
                procedures.
            ``(3) Reports.--Each eligible entity that enters 
        into an agreement under this section shall submit to 
        the President, at such time as the President may 
        request, a report containing such information as the 
        President may request relating to the use of eligible 
        commodities and funds furnished to the eligible entity 
        under this section.''.

SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD 
                    NUTRITION PROGRAM.

    (a) Definition of Agricultural Commodity.--In this section, 
the term ``agricultural commodity'' means an agricultural 
commodity, or a product of an agricultural commodity, that is 
produced in the United States.
    (b) Program.--Subject to subsection (l), the President may 
establish a program, to be known as ``McGovern-Dole 
International Food for Education and Child Nutrition Program'', 
requiring the procurement of agricultural commodities and the 
provision of financial and technical assistance to carry out--
            (1) preschool and school food for education 
        programs in foreign countries to improve food security, 
        reduce the incidence of hunger, and improve literacy 
        and primary education, particularly with respect to 
        girls; and
            (2) maternal, infant, and child nutrition programs 
        for pregnant women, nursing mothers, infants, and 
        children who are 5 years of age or younger.
    (c) Eligible Commodities and Cost Items.--Notwithstanding 
any other provision of law--
            (1) any agricultural commodity is eligible to be 
        provided under this section;
            (2) as necessary to achieve the purposes of this 
        section, funds appropriated under this section may be 
        used to pay--
                    (A)(i) the cost of acquiring agricultural 
                commodities;
                    (ii) the costs associated with packaging, 
                enrichment, preservation, and fortification of 
                agricultural commodities;
                    (iii) the processing, transportation, 
                handling, and other incidental costs up to the 
                time of the delivery of agricultural 
                commodities free on board vessels in United 
                States ports;
                    (iv) the vessel freight charges from United 
                States ports or designated Canadian 
                transshipment ports, as determined by the 
                Secretary, to designated ports of entry abroad;
                    (v) the costs associated with transporting 
                agricultural commodities from United States 
                ports to designated points of entry abroad in 
                the case--
                            (I) of landlocked countries;
                            (II) of ports that cannot be used 
                        effectively because of natural or other 
                        disturbances;
                            (III) of the unavailability of 
                        carriers to a specific country; or
                            (IV) of substantial savings in 
                        costs or time that may be effected by 
                        the utilization of points of entry 
                        other than ports; and
                    (vi) the charges for general average 
                contributions arising out of the ocean 
                transport of agricultural commodities 
                transferred pursuant thereto;
                    (B) all or any part of the internal 
                transportation, storage, and handling costs 
                incurred in moving the eligible commodity, if 
                the President determines that--
                            (i) payment of the costs is 
                        appropriate; and
                            (ii) the recipient country is a low 
                        income, net food-importing country 
                        that--
                                    (I) meets the poverty 
                                criteria established by the 
                                International Bank for 
                                Reconstruction and Development 
                                for Civil Works Preference; and
                                    (II) has a national 
                                government that is committed to 
                                or is working toward, through a 
                                national action plan, the goals 
                                of the World Declaration on 
                                Education for All convened in 
                                1990 in Jomtien, Thailand, and 
                                the followup Dakar Framework 
                                for Action of the World 
                                Education Forum, convened in 
                                2000;
                    (C) the costs of activities conducted in 
                the recipient countries by a nonprofit 
                voluntary organization, cooperative, or 
                intergovernmental agency or organization that 
                would enhance the effectiveness of the 
                activities implemented by such entities under 
                this section; and
                    (D) the costs of meeting the allowable 
                administrative expenses of private voluntary 
                organizations, cooperatives, or 
                intergovernmental organizations that are 
                implementing activities under this section.
    (d) General Authorities.--The President shall designate 1 
or more Federal agencies to--
            (1) implement the program established under this 
        section;
            (2) ensure that the program established under this 
        section is consistent with the foreign policy and 
        development assistance objectives of the United States; 
        and
            (3) consider, in determining whether a country 
        should receive assistance under this section, whether 
        the government of the country is taking concrete steps 
        to improve the preschool and school systems in the 
        country.
    (e) Eligible Entities.--Assistance may be provided under 
this section to private voluntary organizations, cooperatives, 
intergovernmental organizations, governments of developing 
countries and their agencies, and other organizations.
    (f) Procedures.--
            (1) In general.--In carrying out subsection (b), 
        the President shall ensure that procedures are 
        established that--
                    (A) provide for the submission of proposals 
                by eligible entities, each of which may include 
                1 or more recipient countries, for commodities 
                and other assistance under this section;
                    (B) provide for eligible commodities and 
                assistance on a multiyear basis;
                    (C) ensure that eligible entities 
                demonstrate the organizational capacity and the 
                ability to develop, implement, monitor, report 
                on, and provide accountability for activities 
                conducted under this section;
                    (D) provide for the expedited development, 
                review, and approval of proposals submitted in 
                accordance with this section;
                    (E) ensure monitoring and reporting by 
                eligible entities on the use of commodities and 
                other assistance provided under this section; 
                and
                    (F) allow for the sale or barter of 
                commodities by eligible entities to acquire 
                funds to implement activities that improve the 
                food security of women and children or 
                otherwise enhance the effectiveness of programs 
                and activities authorized under this section.
            (2) Priorities for program funding.--In carrying 
        out paragraph (1) with respect to criteria for 
        determining the use of commodities and other assistance 
        provided for programs and activities authorized under 
        this section, the implementing agency may consider the 
        ability of eligible entities to--
                    (A) identify and assess the needs of 
                beneficiaries, especially malnourished or 
                undernourished mothers and their children who 
                are 5 years of age or younger, and school-age 
                children who are malnourished, undernourished, 
                or do not regularly attend school;
                    (B)(i) in the case of preschool and school-
                age children, target low-income areas where 
                children's enrollment and attendance in school 
                is low or girls' enrollment and participation 
                in preschool or school is low, and incorporate 
                developmental objectives for improving literacy 
                and primary education, particularly with 
                respect to girls; and
                    (ii) in the case of programs to benefit 
                mothers and children who are 5 years of age or 
                younger, coordinate supplementary feeding and 
                nutrition programs with existing or newly-
                established maternal, infant, and children 
                programs that provide health-needs 
                interventions, including maternal, prenatal, 
                and postnatal and newborn care;
                    (C) involve indigenous institutions as well 
                as local communities and governments in the 
                development and implementation of the programs 
                and activities to foster local capacity 
                building and leadership; and
                    (D) carry out multiyear programs that 
                foster local self-sufficiency and ensure the 
                longevity of programs in the recipient country.
    (g) Use of Food and Nutrition Service.--The Food and 
Nutrition Service of the Department of Agriculture may provide 
technical advice on the establishment of programs under 
subsection (b)(1) and on implementation of the programs in the 
field in recipient countries.
    (h) Multilateral Involvement.--
            (1) In general.--The President is urged to engage 
        existing international food aid coordinating mechanisms 
        to ensure multilateral commitments to, and 
        participation in, programs similar to programs 
        supported under this section.
            (2) Reports.--The President shall annually submit 
        to the Committee on International Relations and the 
        Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        commitments and activities of governments, including 
        the United States government, in the global effort to 
        reduce child hunger and increase school attendance.
    (i) Private Sector Involvement.--The President is urged to 
encourage the support and active involvement of the private 
sector, foundations, and other individuals and organizations in 
programs assisted under this section.
    (j) Graduation.--An agreement with an eligible organization 
under this section shall include provisions--
            (1) to--
                    (A) sustain the benefits to the education, 
                enrollment, and attendance of children in 
                schools in the targeted communities when the 
                provision of commodities and assistance to a 
                recipient country under a program under this 
                section terminates; and
                    (B) estimate the period of time required 
                until the recipient country or eligible 
                organization is able to provide sufficient 
                assistance without additional assistance under 
                this section; or
            (2) to provide other long-term benefits to targeted 
        populations of the recipient country.
    (k) Requirement To Safeguard Local Production and Usual 
Marketing.--The requirement of section 403(a) of the 
Agricultural Trade Development and Assistance Act of 1954 (7 
U.S.C. 1733(a)) applies with respect to the availability of 
commodities under this section.
    (l) Funding.--
            (1) In general.--Of the funds of the Commodity 
        Credit Corporation, the President shall use 
        $100,000,000 for fiscal year 2003 to carry out this 
        section.
            (2) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this section for each of fiscal 
        years 2004 through 2007.
            (3) Administrative expenses.--Funds made available 
        to carry out this section may be used to pay the 
        administrative expenses of any Federal agency 
        implementing or assisting in the implementation of this 
        section.

                       Subtitle C--Miscellaneous

SEC. 3201. SURPLUS COMMODITIES FOR DEVELOPING OR FRIENDLY COUNTRIES.

    (a) Use of Currencies.--Section 416(b)(7)(D) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)(7)(D)) is amended--
            (1) in clauses (i) and (iii), by striking ``foreign 
        currency'' each place it appears;
            (2) in clause (ii)--
                    (A) by striking ``Foreign currencies'' and 
                inserting ``Proceeds''; and
                    (B) by striking ``foreign currency''; and
            (3) in clause (iv)--
                    (A) by striking ``Foreign currency 
                proceeds'' and inserting ``Proceeds'';
                    (B) by striking ``country of origin'' the 
                second place it appears and all that follows 
                through ``as necessary to expedite'' and 
                inserting ``country of origin as necessary to 
                expedite'';
                    (C) by striking ``; or'' and inserting a 
                period; and
                    (D) by striking subclause (II).
    (b) Implementation of Agreements.--Section 416(b) of the 
Agricultural Act of 1949 (7 U.S.C. 1431(b)) (as amended by 
section 3009(b)) is amended--
            (1) in paragraph (8), by striking ``(8)(A)'' and 
        all that follows through ``(B) The Secretary'' and 
        inserting the following:
            ``(8) Administrative provisions.--
                    ``(A) Expedited procedures.--To the maximum 
                extent practicable, expedited procedures shall 
                be used in the implementation of this 
                subsection.
                    ``(B) Estimate of commodities.--The 
                Secretary shall publish in the Federal 
                Register, not later than October 31 of each 
                fiscal year, an estimate of the types and 
                quantities of commodities and products that 
                will be available under this section for the 
                fiscal year.
                    ``(C) Finalization of agreements.--The 
                Secretary is encouraged to finalize program 
                agreements under this section not later than 
                December 31 of each fiscal year.
                    ``(D) Regulations.--The Secretary''; and
            (2) by adding at the end the following:
            ``(11) Requirements.--
                    ``(A) In general.--Not later than 270 days 
                after the date of enactment of this 
                subparagraph, the Secretary shall review and, 
                as necessary, make changes in regulations and 
                internal procedures designed to streamline, 
                improve, and clarify the application, approval, 
                and implementation processes pertaining to 
                agreements under this section.
                    ``(B) Considerations.--In conducting the 
                review, the Secretary shall consider--
                            ``(i) revising procedures for 
                        submitting proposals;
                            ``(ii) developing criteria for 
                        program approval that separately 
                        address the objectives of the program;
                            ``(iii) pre-screening organizations 
                        and proposals to ensure that the 
                        minimum qualifications are met;
                            ``(iv) implementing e-government 
                        initiatives and otherwise improving the 
                        efficiency of the proposal submission 
                        and approval processes;
                            ``(v) upgrading information 
                        management systems;
                            ``(vi) improving commodity and 
                        transportation procurement processes; 
                        and
                            ``(vii) ensuring that evaluation 
                        and monitoring methods are sufficient.
                    ``(C) Consultations.--Not later than 1 year 
                after the date of enactment of this 
                subparagraph, the Secretary shall consult with 
                the Committee on Agriculture, and the Committee 
                on International Relations, of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate on changes made in regulations and 
                procedures under this paragraph.''.

SEC. 3202. BILL EMERSON HUMANITARIAN TRUST.

    Section 302 of the Bill Emerson Humanitarian Trust Act (7 
U.S.C. 1736f-1) is amended by striking ``2002'' each place it 
appears in subsection (b)(2)(B)(i) and paragraphs (1) and (2) 
of subsection (h) and inserting ``2007''.

SEC. 3203. EMERGING MARKETS.

    Section 1542 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5622 note) is amended in 
subsections (a) and (d)(1)(A)(i) by striking ``2002'' and 
inserting ``2007''.

SEC. 3204. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    The Food, Agriculture, Conservation, and Trade Act of 1990 
is amended by inserting after section 1543 (7 U.S.C. 3293) the 
following:

``SEC. 1543A. BIOTECHNOLOGY AND AGRICULTURAL TRADE PROGRAM.

    ``(a) Establishment.--There is established in the 
Department the biotechnology and agricultural trade program.
    ``(b) Purpose.--The purpose of the program shall be to 
remove, resolve, or mitigate significant regulatory nontariff 
barriers to the export of United States agricultural 
commodities (as defined in section 102 of the Agricultural 
Trade Act of 1978 (7 U.S.C. 5602)) into foreign markets through 
public and private sector projects funded by grants that 
address--
            ``(1) quick response intervention regarding 
        nontariff barriers to United States exports involving--
                    ``(A) United States agricultural 
                commodities produced through biotechnology;
                    ``(B) food safety;
                    ``(C) disease; or
                    ``(D) other sanitary or phytosanitary 
                concerns; or
            ``(2) developing protocols as part of bilateral 
        negotiations with other countries on issues such as 
        animal health, grain quality, and genetically modified 
        commodities.
    ``(c) Eligible Programs.--Depending on need, as determined 
by the Secretary, activities authorized under this section may 
be carried out through--
            ``(1) this section;
            ``(2) the emerging markets program under section 
        1542; or
            ``(3) the Cochran Fellowship Program under section 
        1543.
    ``(d) Funding.--There is authorized to be appropriated 
$6,000,000 for each of fiscal years 2002 through 2007.''.

SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.

    (a) Establishment.--The Secretary of Agriculture shall 
establish an export assistance program (referred to in this 
section as the ``program'') to address unique barriers that 
prohibit or threaten the export of United States specialty 
crops.
    (b) Purpose.--The program shall provide direct assistance 
through public and private sector projects and technical 
assistance to remove, resolve, or mitigate sanitary and 
phytosanitary and related barriers to trade.
    (c) Priority.--The program shall address time sensitive and 
strategic market access projects based on--
            (1) trade effect on market retention, market 
        access, and market expansion; and
            (2) trade impact.
    (d) Funding.--For each of fiscal years 2002 through 2007, 
the Secretary shall make available $2,000,000 of the funds of, 
or an equal value of commodities owned by, the Commodity Credit 
Corporation.

SEC. 3206. GLOBAL MARKET STRATEGY.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, and biennially thereafter, the Secretary 
of Agriculture shall consult with the Committee on Agriculture, 
and the Committee on International Relations, of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate on the formulation and 
implementation of a global market strategy for the Department 
of Agriculture that, to the maximum extent practicable--
            (1) identifies opportunities for the growth of 
        agricultural exports to overseas markets;
            (2) ensures that the resources, programs, and 
        policies of the Department are coordinated with those 
        of other agencies; and
            (3) remove barriers to agricultural trade in 
        overseas markets.
    (b) Review.--The consultations under subsection (a) shall 
include a review of--
            (1) the strategic goals of the Department; and
            (2) the progress of the Department in implementing 
        the strategic goals through the global market strategy.

SEC. 3207. REPORT ON USE OF PERISHABLE COMMODITIES AND LIVE ANIMALS.

    Not later than 120 days after the date of enactment of this 
Act, the Secretary of Agriculture shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report on international food aid programs of the United 
States that evaluates--
            (1) the implications of storage and transportation 
        capacity and funding for the use of perishable 
        agricultural commodities and semiperishable 
        agricultural commodities; and
            (2) the feasibility of the transport of lambs and 
        other live animals under the program.

SEC. 3208. STUDY ON FEE FOR SERVICES.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Agriculture shall 
submit to the Committee on Agriculture, and the Committee on 
International Relations, of the House of Representatives and 
the Committee on Agriculture, Nutrition and Forestry of the 
Senate a report on the feasibility of instituting a program 
under which the Secretary would charge and retain a fee to 
cover the costs incurred by the Department of Agriculture, 
acting through the Foreign Agricultural Service or any 
successor agency, in providing persons with commercial services 
provided outside the United States.
    (b) Purpose of Program.--The purpose of a program described 
in subsection (a) would be to supplement and not replace any 
services currently offered overseas by the Foreign Agricultural 
Service.
    (c) Market Development Strategy.--A program under 
subsection (b) would be part of an overall market development 
strategy for a particular country or region.
    (d) Pilot Program.--A program under subsection (a) would be 
established on a pilot basis to ensure that the program does 
not disadvantage small- and medium-sized companies, including 
companies that have never engaged in exporting.

SEC. 3209. SENSE OF CONGRESS CONCERNING FOREIGN ASSISTANCE PROGRAMS.

    (a) Findings.--Congress finds that--
            (1) the international community faces a continuing 
        epidemic of ethnic, sectarian, and criminal violence;
            (2) poverty, hunger, political uncertainty, and 
        social instability are the principal causes of violence 
        and conflict around the world;
            (3) broad-based, equitable economic growth and 
        agriculture development facilitates political 
        stability, food security, democracy, and the rule of 
        law;
            (4) democratic governments are more likely to 
        advocate and observe international laws, protect civil 
        and human rights, pursue free market economies, and 
        avoid external conflicts;
            (5) the United States Agency for International 
        Development has provided critical democracy and 
        governance assistance to a majority of the nations that 
        successfully made the transition to democratic 
        governments during the past 2 decades;
            (6) 43 of the top 50 consumer nations of American 
        agricultural products were once United States foreign 
        aid recipients;
            (7) in the past 50 years, infant child death rates 
        in the developing world have been reduced by 50 
        percent, and health conditions around the world have 
        improved more during this period than in any other 
        period;
            (8) the United States Agency for International 
        Development child survival programs have significantly 
        contributed to a 10 percent reduction in infant 
        mortality rates worldwide in just the past 8 years;
            (9) in providing assistance by the United States 
        and other donors in better seeds and teaching more 
        efficient agricultural techniques over the past 2 
        decades have helped make it possible to feed an 
        additional 1,000,000,000 people in the world;
            (10) despite this progress, approximately 
        1,200,000,000 people, one-quarter of the world's 
        population, live on less that $1 per day, and 
        approximately 3,000,000,000 people live on only $2 per 
        day;
            (11) 95 percent of new births occur in developing 
        countries, including the world's poorest countries; and
            (12) only \1/2\ percent of the Federal budget is 
        dedicated to international economic and humanitarian 
        assistance.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) United States foreign assistance programs 
        should play an increased role in the global fight 
        against terrorism to complement the national security 
        objectives of the United States;
            (2) the United States should lead coordinated 
        international efforts to provide increased financial 
        assistance to countries with impoverished and 
        disadvantaged populations that are the breeding grounds 
        for terrorism; and
            (3) the United States Agency for International 
        Development and the Department of Agriculture should 
        substantially increase humanitarian, economic 
        development, and agricultural assistance to foster 
        international peace and stability and the promotion of 
        human rights.

SEC. 3210. SENSE OF THE SENATE CONCERNING AGRICULTURAL TRADE.

    (a) Agriculture Trade Negotiating Objectives.--It is the 
sense of the Senate that the principal negotiating objective of 
the United States with respect to agricultural trade in all 
multilateral, regional, and bilateral negotiations is to obtain 
competitive opportunities for the export of United States 
agricultural commodities in foreign markets substantially 
equivalent to the competitive opportunities afforded foreign 
exports in United States markets and to achieve fairer and more 
open conditions of agricultural trade in bulk and value-added 
commodities by--
            (1) reducing or eliminating, by a date certain, 
        tariffs or other charges that decrease market 
        opportunities for the export of United States 
        agricultural commodities, giving priority to United 
        States agricultural commodities that are subject to 
        significantly higher tariffs or subsidy regimes of 
        major producing countries;
            (2) immediately eliminating all export subsidies on 
        agricultural commodities worldwide while maintaining 
        bona fide food aid and preserving United States 
        agricultural market development and export credit 
        programs that allow the United States to compete with 
        other foreign export promotion efforts;
            (3) leveling the playing field for United States 
        agricultural producers by disciplining domestic 
        supports such that no other country can provide greater 
        support, measured as a percentage of total agricultural 
        production value, than the United States does while 
        preserving existing green box category to support 
        conservation activities, family farms, and rural 
        communities;
            (4) developing, strengthening, and clarifying rules 
        and effective dispute settlement mechanisms to 
        eliminate practices that unfairly decrease United 
        States market access opportunities for United States 
        agricultural commodities or distort agricultural 
        markets to the detriment of the United States, 
        including--
                    (A) unfair or trade-distorting activities 
                of state trading enterprises and other 
                administrative mechanisms, with emphasis on--
                            (i) requiring price transparency in 
                        the operation of state trading 
                        enterprises and such other mechanisms; 
                        and
                            (ii) ending discriminatory pricing 
                        practices for agricultural commodities 
                        that amount to de facto export 
                        subsidies so that the enterprises or 
                        other mechanisms do not (except in 
                        cases of bona fide food aid) sell 
                        agricultural commodities in foreign 
                        markets at prices below domestic market 
                        prices or prices below the full costs 
                        of acquiring and delivering 
                        agricultural commodities to the foreign 
                        markets;
                    (B) unjustified trade restrictions or 
                commercial requirements affecting new 
                agricultural technologies, including 
                biotechnology;
                    (C) unjustified sanitary or phytosanitary 
                restrictions, including restrictions that are 
                not based on scientific principles, in 
                contravention of the Agreement on the 
                Application of Sanitary and Phytosanitary 
                Measures (as described in section 101(d)(3) of 
                the Uruguay Round Agreements Act (19 U.S.C. 
                3511(d)(3)));
                    (D) other unjustified technical barriers to 
                agricultural trade; and
                    (E) restrictive and nontransparent rules in 
                the administration of tariff rate quotas;
            (5) improving import relief mechanisms to recognize 
        the unique characteristics of perishable agricultural 
        commodities;
            (6) taking into account whether a party to 
        negotiations with respect to trading in an agricultural 
        commodity has--
                    (A) failed to adhere to the provisions of 
                an existing bilateral trade agreement with the 
                United States;
                    (B) circumvented obligations under a 
                multilateral trade agreement to which the 
                United States is a signatory; or
                    (C) manipulated its currency value to the 
                detriment of United States agricultural 
                producers or exporters; and
            (7) otherwise ensuring that countries that accede 
        to the World Trade Organization--
                    (A) have made meaningful market 
                liberalization commitments in agriculture; and
                    (B) make progress in fulfilling those 
                commitments over time.
    (b) Priority for Agriculture Trade.--It is the sense of the 
Senate that--
            (1) reaching a successful agreement on agriculture 
        should be the top priority of United States negotiators 
        in World Trade Organization talks; and
            (2) if the primary export competitors of the United 
        States fail to reduce their trade distorting domestic 
        supports and eliminate export subsidies in accordance 
        with the negotiating objectives expressed in this 
        section, the United States should take steps to 
        increase the leverage of United States negotiators and 
        level the playing field for United States producers, 
        within existing World Trade Organization commitments.
    (c) Consultation With Congressional Committees.--It is the 
sense of the Senate that--
            (1) before the United States Trade Representative 
        negotiates a trade agreement that would reduce tariffs 
        on agricultural commodities or require a change in 
        United States agricultural law, the United States Trade 
        Representative should consult with 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;
            (2) not less than 48 hours before initialing an 
        agreement relating to agricultural trade negotiated 
        under the auspices of the World Trade Organization, the 
        United States Trade Representative should consult 
        closely with the committees referred to in paragraph 
        (1) regarding--
                    (A) the details of the agreement;
                    (B) the potential impact of the agreement 
                on United States agricultural producers; and
                    (C) any changes in United States law 
                necessary to implement the agreement; and
            (3) any agreement or other understanding (whether 
        verbal or in writing) that relates to agricultural 
        trade that is not disclosed to Congress before 
        legislation implementing a trade agreement is 
        introduced in either the Senate or the House of 
        Representatives should not be considered to be part of 
        the agreement approved by Congress and should have no 
        force and effect under Unites States law or in any 
        dispute settlement body.

                      TITLE IV--NUTRITION PROGRAMS

SEC. 4001. SHORT TITLE.

    This title may be cited as the ``Food Stamp Reauthorization 
Act of 2002''.

                     Subtitle A--Food Stamp Program

SEC. 4101. ENCOURAGEMENT OF PAYMENT OF CHILD SUPPORT.

    (a) Exclusion.--Section 5(d)(6) of the Food Stamp Act of 
1977 (7 U.S.C. 2014(d)(6)) is amended by adding at the end the 
following: ``and child support payments made by a household 
member to or for an individual who is not a member of the 
household if the household member is legally obligated to make 
the payments,''.
    (b) Simplified Procedure.--Section 5 of the Food Stamp Act 
of 1977 (7 U.S.C. 2014) is amended--
            (1) in subsection (e), by striking paragraph (4) 
        and inserting the following:
            ``(4) Deduction for child support payments.--
                    ``(A) In general.--In lieu of providing an 
                exclusion for legally obligated child support 
                payments made by a household member under 
                subsection (d)(6), a State agency may elect to 
                provide a deduction for the amount of the 
                payments.
                    ``(B) Order of determining deductions.--A 
                deduction under this paragraph shall be 
                determined before the computation of the excess 
                shelter expense deduction under paragraph 
                (6).''; and
            (2) by adding at the end the following:
    ``(n) State Options To Simplify Determination of Child 
Support Payments.--Regardless of whether a State agency elects 
to provide a deduction under subsection (e)(4), the Secretary 
shall establish simplified procedures to allow State agencies, 
at the option of the State agencies, to determine the amount of 
any legally obligated child support payments made, including 
procedures to allow the State agency to rely on information 
from the agency responsible for implementing the program under 
part D of title IV of the Social Security Act (42 U.S.C. 651 et 
seq.) concerning payments made in prior months in lieu of 
obtaining current information from the households.''.

SEC. 4102. SIMPLIFIED DEFINITION OF INCOME.

    Section 5(d) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(d)) is amended--
            (1) by striking ``and (15)'' and inserting 
        ``(15)''; and
            (2) by inserting before the period at the end the 
        following: ``, (16) at the option of the State agency, 
        any educational loans on which payment is deferred, 
        grants, scholarships, fellowships, veterans' 
        educational benefits, and the like (other than loans, 
        grants, scholarships, fellowships,veterans' educational 
benefits, and the like excluded under paragraph (3)), to the extent 
that they are required to be excluded under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.), (17) at the option of the State 
agency, any State complementary assistance program payments that are 
excluded for the purpose of determining eligibility for medical 
assistance under section 1931 of the Social Security Act (42 U.S.C. 
1396u-1), and (18) at the option of the State agency, any types of 
income that the State agency does not consider when determining 
eligibility for (A) cash assistance under a program funded under part A 
of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or the 
amount of such assistance, or (B) medical assistance under section 1931 
of the Social Security Act (42 U.S.C. 1396u-1), except that this 
paragraph does not authorize a State agency to exclude wages or 
salaries, benefits under title I, II, IV, X, XIV, or XVI of the Social 
Security Act (42 U.S.C. 301 et seq.), regular payments from a 
government source (such as unemployment benefits and general 
assistance), worker's compensation, child support payments made to a 
household member by an individual who is legally obligated to make the 
payments, or such other types of income the consideration of which the 
Secretary determines by regulation to be essential to equitable 
determinations of eligibility and benefit levels''.

SEC. 4103. STANDARD DEDUCTION.

    Section 5(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2014(e)) is amended by striking paragraph (1) and inserting the 
following:
            ``(1) Standard deduction.--
                    ``(A) In general.--
                            ``(i) Deduction.--The Secretary 
                        shall allow a standard deduction for 
                        each household in the 48 contiguous 
                        States and the District of Columbia, 
                        Alaska, Hawaii, and the Virgin Islands 
                        of the United States in an amount that 
                        is--
                                    ``(I) equal to 8.31 percent 
                                of the income standard of 
                                eligibility established under 
                                subsection (c)(1); but
                                    ``(II) not more than 8.31 
                                percent of the income standard 
                                of eligibility established 
                                under subsection (c)(1) for a 
                                household of 6 members.
                            ``(ii) Minimum amount.--
                        Notwithstanding clause (i), the 
                        standard deduction for each household 
                        in the 48 contiguous States and the 
                        District of Columbia, Alaska, Hawaii, 
                        and the Virgin Islands of the United 
                        States shall be not less than $134, 
                        $229, $189, and $118, respectively.
                    ``(B) Guam.--
                            ``(i) In general.--The Secretary 
                        shall allow a standard deduction for 
                        each household in Guam in an amount 
                        that is--
                                    ``(I) equal to 8.31 percent 
                                of twice the income standard of 
                                eligibility established under 
                                subsection (c)(1) for the 48 
                                contiguous States and the 
                                District of Columbia; but
                                    ``(II) not more than 8.31 
                                percent of twice the income 
                                standard of eligibility 
                                established under subsection 
                                (c)(1) for the 48 contiguous 
                                States and the District of 
                                Columbia for a household of 6 
                                members.
                            ``(ii) Minimum amount.--
                        Notwithstanding clause (i), the 
                        standard deduction for each household 
                        in Guam shall be not less than $269.''.

SEC. 4104. SIMPLIFIED UTILITY ALLOWANCE.

    Section 5(e)(7)(C)(iii) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(e)(7)(C)(iii)) is amended--
            (1) in subclause (I)(bb), by inserting ``(without 
        regard to subclause (III))'' after ``Secretary finds''; 
        and
            (2) by adding at the end the following:
                                    ``(III) Inapplicability of 
                                certain restrictions.--Clauses 
                                (ii)(II) and (ii)(III) shall 
                                not apply in the case of a 
                                State agency that has made the 
                                use of a standard utility 
                                allowance mandatory under 
                                subclause (I).''.

SEC. 4105. SIMPLIFIED DETERMINATION OF HOUSING COSTS.

    (a) In General.--Section 5(e)(7) of the Food Stamp Act of 
1977 (7 U.S.C. 2014(e)(7)) is amended by adding at the end the 
following:
                    ``(D) Homeless households.--
                            ``(i) Alternative deduction.--In 
                        lieu of the deduction provided under 
                        subparagraph (A), a State agency may 
                        elect to allow a household in which all 
                        members are homeless individuals, but 
                        that is not receiving free shelter 
                        throughout the month, to receive a 
                        deduction of $143 per month.
                            ``(ii) Ineligibility.--The State 
                        agency may make a household with 
                        extremely low shelter costs ineligible 
                        for the alternative deduction under 
                        clause (i).''.
    (b) Conforming Amendments.--Section 5 of the Food Stamp Act 
of 1977 (7 U.S.C. 2014) is amended--
            (1) in subsection (e)--
                    (A) by striking paragraph (5); and
                    (B) by redesignating paragraphs (6) and (7) 
                as paragraphs (5) and (6), respectively; and
            (2) in subsection (k)(4)(B), by striking 
        ``subsection (e)(7)'' and inserting ``subsection 
        (e)(6)''.

SEC. 4106. SIMPLIFIED DETERMINATION OF DEDUCTIONS.

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

SEC. 4107. SIMPLIFIED DEFINITION OF RESOURCES.

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

SEC. 4108. ALTERNATIVE ISSUANCE SYSTEMS IN DISASTERS.

    (a) In General.--Section 5(h)(3)(B) of the Food Stamp Act 
of 1977 (7 U.S.C. 2014(h)(3)(B)) is amended--
            (1) in the first sentence, by inserting ``issuance 
        methods and'' after ``shall adjust''; and
            (2) in the second sentence, by inserting ``, any 
        conditions that make reliance on electronic benefit 
        transfer systems described in section 7(i) 
        impracticable,'' after ``personnel''.
    (b) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

SEC. 4109. STATE OPTION TO REDUCE REPORTING REQUIREMENTS.

    Section 6(c)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2015(c)(1)) is amended--
            (1) in subparagraph (B), by striking ``on a monthly 
        basis''; and
            (2) by adding at the end the following:
                    ``(D) Frequency of reporting.--
                            ``(i) In general.--Except as 
                        provided in subparagraphs (A) and (C), 
                        a State agency may require households 
                        that report on a periodic basis to 
                        submit reports--
                                    ``(I) not less often than 
                                once each 6 months; but
                                    ``(II) not more often than 
                                once each month.
                            ``(ii) Reporting by households with 
                        excess income.--A household required to 
                        report less often than once each 3 
                        months shall, notwithstanding 
                        subparagraph (B), report in a manner 
                        prescribed by the Secretary if the 
                        income of the household for any month 
                        exceeds the income standard of 
                        eligibility established under section 
                        5(c)(2).''.

SEC. 4110. COST NEUTRALITY FOR ELECTRONIC BENEFIT TRANSFER SYSTEMS.

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

SEC. 4111. REPORT ON ELECTRONIC BENEFIT TRANSFER SYSTEMS.

    (a) Definition of EBT System.--In this section, the term 
``EBT system'' means an electronic benefit transfer system used 
in issuance of benefits under the food stamp program under the 
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
    (b) Report.--Not later than October 1, 2003, the Secretary 
of Agriculture shall submit to the Committee on Agriculture of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that--
            (1) describes the status of use by each State 
        agency of EBT systems;
            (2) specifies the number of vendors that have 
        entered into a contract for an EBT system with a State 
        agency;
            (3)(A) specifies the number of State agencies that 
        have entered into an EBT-system contract with multiple 
        EBT-system vendors; and
            (B) describes, for each State agency described in 
        subparagraph (A), how responsibilities are divided 
        among the various vendors;
            (4) with respect to any State in which an EBT 
        system is not operational throughout the State as of 
        October 1, 2002--
                    (A) provides an explanation of the reasons 
                why an EBT system is not operational throughout 
                the State;
                    (B) describes how the reasons are being 
                addressed; and
                    (C) specifies the expected date of 
                operation of an EBT system throughout the 
                State;
            (5) provides a description of--
                    (A) the issues faced by any State agency 
                that has awarded a second EBT-system contract 
                in the 2-year period preceding the date of the 
                report; and
                    (B) the steps that the State agency has 
                taken to address those issues;
            (6) provides a description of--
                    (A) the issues faced by any State agency 
                that will award a second EBT-system contract 
                within the 2-year period beginning on the date 
                of the report; and
                    (B) strategies that the State agency is 
                considering to address those issues;
            (7) describes initiatives being considered or taken 
        by the Department of Agriculture, food retailers, EBT-
        system vendors, and client advocates to address any 
        outstanding issues with respect to EBT systems; and
            (8) examines areas of potential advances in 
        electronic benefit delivery in the 5- to 10-year period 
        beginning on the date of the report, including--
                    (A) access to EBT systems at farmers' 
                markets;
                    (B) increased use of transaction data from 
                EBT systems to identify and prosecute fraud; 
                and
                    (C) fostering of increased competition 
                among EBT-system vendors to ensure cost 
                containment and optimal service.

SEC. 4112. ALTERNATIVE PROCEDURES FOR RESIDENTS OF CERTAIN GROUP 
                    FACILITIES.

    (a) In General.--Section 8 of the Food Stamp Act of 1977 (7 
U.S.C. 2017) is amended by adding at the end the following:
    ``(f) Alternative Procedures for Residents of Certain Group 
Facilities.--
            ``(1) In general.--
                    ``(A) Applicability.--
                            ``(i) In general.--Subject to 
                        clause (ii), at the option of the State 
                        agency, allotments for residents of any 
                        facility described in subparagraph (B), 
                        (C), (D), or (E) of section 3(i)(5) 
                        (referred to in this subsection as a 
                        `covered facility') may be determined 
                        and issued under this paragraph in lieu 
                        of subsection (a).
                            ``(ii) Limitation.--Unless the 
                        Secretary authorizes implementation of 
                        this paragraph in all States under 
                        paragraph (3), clause (i) shall apply 
                        only to residents of covered facilities 
                        participating in a pilot project under 
                        paragraph (2).
                    ``(B) Amount of allotment.--The allotment 
                for each eligible resident described in 
                subparagraph (A) shall be calculated in 
                accordance with standardized procedures 
                established by the Secretary that take into 
                account the allotments typically received by 
                residents of covered facilities.
                    ``(C) Issuance of allotment.--
                            ``(i) In general.--The State agency 
                        shall issue an allotment determined 
                        under this paragraph to a covered 
                        facility as the authorized 
                        representative of the residents of the 
                        covered facility.
                            ``(ii) Adjustment.--The Secretary 
                        shall establish procedures to ensure 
                        that a covered facility does not 
                        receive a greater proportion of a 
                        resident's monthly allotment than the 
                        proportion of the month during which 
                        the resident lived in the covered 
                        facility.
                    ``(D) Departures of residents of covered 
                facilities.--
                            ``(i) Notification.--Any covered 
                        facility that receives an allotment for 
                        a resident under this paragraph shall--
                                    ``(I) notify the State 
                                agency promptly on the 
                                departure of the resident; and
                                    ``(II) notify the resident, 
                                before the departure of the 
                                resident, that the resident--
                                            ``(aa) is eligible 
                                        for continued benefits 
                                        under the food stamp 
                                        program; and
                                            ``(bb) should 
                                        contact the State 
                                        agency concerning 
                                        continuation of the 
                                        benefits.
                            ``(ii) Issuance to departed 
                        residents.--On receiving a notification 
                        under clause (i)(I) concerning the 
                        departure of a resident, the State 
                        agency--
                                    ``(I) shall promptly issue 
                                the departed resident an 
                                allotment for the days of the 
                                month after the departure of 
                                the resident (calculated in a 
                                manner prescribed by the 
                                Secretary) unless the departed 
                                resident reapplies to 
                                participate in the food stamp 
                                program; and
                                    ``(II) may issue an 
                                allotment for the month 
                                following the month of the 
                                departure (but not any 
                                subsequent month) based on this 
                                paragraph unless the departed 
                                resident reapplies to 
                                participate in the food stamp 
                                program.
                            ``(iii) State option.--The State 
                        agency may elect not to issue an 
                        allotment under clause (ii)(I) if the 
                        State agency lacks sufficient 
                        information on the location of the 
                        departed resident to provide the 
                        allotment.
                            ``(iv) Effect of reapplication.--If 
                        the departed resident reapplies to 
                        participate in the food stamp program, 
                        the allotment of the departed resident 
                        shall be determined without regard to 
                        this paragraph.
            ``(2) Pilot projects.--
                    ``(A) In general.--Before the Secretary 
                authorizes implementation of paragraph (1) in 
                all States, the Secretary shall carry out, at 
                the request of 1 or more State agencies and in 
                1 or more areas of the United States, such 
                number of pilot projects as the Secretary 
                determines to be sufficient to test the 
                feasibility of determining and issuing 
                allotments to residents of covered facilities 
                under paragraph (1) in lieu of subsection (a).
                    ``(B) Project plan.--To be eligible to 
                participate in a pilot project under 
                subparagraph (A), a State agency shall submit 
                to the Secretary for approval a project plan 
                that includes--
                            ``(i) a specification of the 
                        covered facilities in the State that 
                        will participate in the pilot project;
                            ``(ii) a schedule for reports to be 
                        submitted to the Secretary on the pilot 
                        project;
                            ``(iii) procedures for 
                        standardizing allotment amounts that 
                        takes into account the allotments 
                        typically received by residents of 
                        covered facilities; and
                            ``(iv) a commitment to carry out 
                        the pilot project in compliance with 
                        the requirements of this subsection 
                        other than paragraph (1)(B).
            ``(3) Authorization of implementation in all 
        states.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) determine whether to 
                        authorize implementation of paragraph 
                        (1) in all States; and
                            ``(ii) notify the Committee on 
                        Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate of the determination.
                    ``(B) Determination not to authorize 
                implementation in all states.--
                            ``(i) In general.--If the Secretary 
                        makes a finding described in clause 
                        (ii), the Secretary--
                                    ``(I) shall not authorize 
                                implementation of paragraph (1) 
                                in all States; and
                                    ``(II) shall terminate all 
                                pilot projects under paragraph 
                                (2) within a reasonable period 
                                of time (as determined by the 
                                Secretary).
                            ``(ii) Finding.--The finding 
                        referred to in clause (i) is that--
                                    ``(I) an insufficient 
                                number of project plans that 
                                the Secretary determines to be 
                                eligible for approval are 
                                submitted by State agencies 
                                under paragraph (2)(B); or
                                    ``(II)(aa) a sufficient 
                                number of pilot projects have 
                                been carried out under 
                                paragraph (2)(A); and
                                    ``(bb) authorization of 
                                implementation of paragraph (1) 
                                in all States is not in the 
                                best interest of the food stamp 
                                program.''.
    (b) Conforming Amendments.--
            (1) Section 3(i) of the Food Stamp Act of 1977 (7 
        U.S.C. 2012(i)) is amended--
                    (A) by striking ``(i) `Household' means (1) 
                an'' and inserting the following:
    ``(i)(1) `Household' means--
            ``(A) an'';
                    (B) in the first sentence, by striking 
                ``others, or (2) a group'' and inserting the 
                following: ``others; or
            ``(B) a group'';
                    (C) in the second sentence, by striking 
                ``Spouses'' and inserting the following:
    ``(2) Spouses'';
                    (D) in the third sentence, by striking 
                ``Notwithstanding'' and inserting the 
                following:
    ``(3) Notwithstanding'';
                    (E) in paragraph (3) (as designated by 
                subparagraph (D)), by striking ``the preceding 
                sentences'' and inserting ``paragraphs (1) and 
                (2)'';
                    (F) in the fourth sentence, by striking 
                ``In no event'' and inserting the following:
    ``(4) In no event'';
                    (G) in the fifth sentence, by striking 
                ``For the purposes of this subsection, 
                residents'' and inserting the following:
    ``(5) For the purposes of this subsection, the following 
persons shall not be considered to be residents of institutions 
and shall be considered to be individual households:
            ``(A) Residents''; and
                    (H) in paragraph (5) (as designated by 
                subparagraph (G))--
                            (i) by striking ``Act, or are 
                        individuals'' and inserting the 
                        following: ``Act.
            ``(B) Individuals'';
                            (ii) by striking ``such section, 
                        temporary'' and inserting the 
                        following: ``that section.
            ``(C) Temporary'';
                            (iii) by striking ``children, 
                        residents'' and inserting the 
                        following: ``children.
            ``(D) Residents'';
                            (iv) by striking ``coupons, and 
                        narcotics'' and inserting the 
                        following: ``coupons.
            ``(E) Narcotics''; and
                            (v) by striking ``shall not'' and 
                        all that follows and inserting a 
                        period.
            (2) Section 5(a) of the Food Stamp Act of 1977 (7 
        U.S.C. 2014(a)) is amended by striking ``the third 
        sentence of section 3(i)'' each place it appears and 
        inserting ``section 3(i)(4)''.
            (3) Section 8(e)(1) of the Food Stamp Act of 1977 
        (7 U.S.C. 2017(e)(1)) is amended by striking ``the last 
        sentence of section 3(i)'' and inserting ``section 
        3(i)(5)''.
            (4) Section 17(b)(1)(B)(iv)(III)(aa) of the Food 
        Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(iv)(III)(aa)) 
        is amended by striking ``the last 2 sentences of 
        section 3(i)'' and inserting ``paragraphs (4) and (5) 
        of section 3(i)''.

SEC. 4113. REDEMPTION OF BENEFITS THROUGH GROUP LIVING ARRANGEMENTS.

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

SEC. 4114. AVAILABILITY OF FOOD STAMP PROGRAM APPLICATIONS ON THE 
                    INTERNET.

    (a) In General.--Section 11(e)(2)(B)(ii) of the Food Stamp 
Act of 1977 (7 U.S.C. 2020(e)(2)(B)(ii)) is amended--
            (1) by inserting ``(I)'' after ``(ii)'';
            (2) in subclause (I) (as designated by paragraph 
        (1)), by adding ``and'' at the end; and
            (3) by adding at the end the following:
                    ``(II) if the State agency maintains a 
                website for the State agency, shall make the 
                application available on the website in each 
                language in which the State agency makes a 
                printed application available;''.
    (b) Effective Date.--The amendments made by this section 
take effect 18 months after the date of enactment of this Act.

SEC. 4115. TRANSITIONAL FOOD STAMPS FOR FAMILIES MOVING FROM WELFARE.

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

SEC. 4116. GRANTS FOR SIMPLE APPLICATION AND ELIGIBILITY DETERMINATION 
                    SYSTEMS AND IMPROVED ACCESS TO BENEFITS.

    (a) In General.--Section 11 of the Food Stamp Act of 1977 
(7 U.S.C. 2020) (as amended by section 4115(a)) is amended by 
adding at the end the following:
    ``(t) Grants for Simple Application and Eligibility 
Determination Systems and Improved Access to Benefits.--
            ``(1) In general.--For each of fiscal years 2003 
        through 2007, the Secretary shall use not more than 
        $5,000,000 of funds made available under section 
        18(a)(1) to make grants to pay 100 percent of the costs 
        of eligible entities approved by the Secretary to carry 
        out projects to develop and implement--
                    ``(A) simple food stamp application and 
                eligibility determination systems; or
                    ``(B) measures to improve access to food 
                stamp benefits by eligible households.
            ``(2) Types of projects.--A project under paragraph 
        (1) may consist of--
                    ``(A) coordinating application and 
                eligibility determination processes, including 
                verification practices, under the food stamp 
                program and other Federal, State, and local 
                assistance programs;
                    ``(B) establishing methods for applying for 
                benefits and determining eligibility that--
                            ``(i) more extensively use--
                                    ``(I) communications by 
                                telephone; and
                                    ``(II) electronic 
                                alternatives such as the 
                                Internet; or
                            ``(ii) otherwise improve the 
                        administrative infrastructure used in 
                        processing applications and determining 
                        eligibility;
                    ``(C) developing procedures, training 
                materials, and other resources aimed at 
                reducing barriers to participation and reaching 
                eligible households;
                    ``(D) improving methods for informing and 
                enrolling eligible households; or
                    ``(E) carrying out such other activities as 
                the Secretary determines to be appropriate.
            ``(3) Limitation.--A grant under this subsection 
        shall not be made for the ongoing cost of carrying out 
        any project.
            ``(4) Eligible entities.--To be eligible to receive 
        a grant under this subsection, an entity shall be--
                    ``(A) a State agency administering the food 
                stamp program;
                    ``(B) a State or local government;
                    ``(C) an agency providing health or welfare 
                services;
                    ``(D) a public health or educational 
                entity; or
                    ``(E) a private nonprofit entity such as a 
                community-based organization, food bank, or 
                other emergency feeding organization.
            ``(5) Selection of eligible entities.--The 
        Secretary--
                    ``(A) shall develop criteria for the 
                selection of eligible entities to receive 
                grants under this subsection; and
                    ``(B) may give preference to any eligible 
                entity that consists of a partnership between a 
                governmental entity and a nongovernmental 
                entity.''.
    (b) Conforming Amendments.--Section 17 of the Food Stamp 
Act of 1977 (7 U.S.C. 2026) is amended--
            (1) by striking subsection (i); and
            (2) by redesignating subsections (j) and (k) as 
        subsections (i) and (j), respectively.

SEC. 4117. DELIVERY TO RETAILERS OF NOTICES OF ADVERSE ACTION.

    (a) In General.--Section 14(a) of the Food Stamp Act of 
1977 (7 U.S.C. 2023(a)) is amended by striking paragraph (2) 
and inserting the following:
            ``(2) Delivery of notices.--A notice under 
        paragraph (1) shall be delivered by any form of 
        delivery that the Secretary determines will provide 
        evidence of the delivery.''.
    (b) Effective Date.--The amendment made by this section 
takes effect on the date of enactment of this Act.

SEC. 4118. REFORM OF QUALITY CONTROL SYSTEM.

    (a) In General.--Section 16(c) of the Food Stamp Act of 
1977 (7 U.S.C. 2025(c)) is amended--
            (1) by striking ``(c)(1) The program'' and all that 
        follows through the end of paragraph (1) and inserting 
        the following:
    ``(c) Quality Control System.--
            ``(1) In general.--
                    ``(A) System.--In carrying out the food 
                stamp program, the Secretary shall carry out a 
                system that enhances payment accuracy and 
                improves administration by establishing fiscal 
                incentives that require State agencies with 
                high payment error rates to share in the cost 
                of payment error.
                    ``(B) Adjustment of federal share of 
                administrative costs for fiscal years before 
                fiscal year 2003.--
                            ``(i) In general.--Subject to 
                        clause (ii), with respect to any fiscal 
                        year before fiscal year 2003, the 
                        Secretary shall adjust a State agency's 
                        federally funded share of 
                        administrative costs under subsection 
                        (a), other than the costs already 
                        shared in excess of 50 percent under 
                        the proviso in the first sentence of 
                        subsection (a) or under subsection (g), 
                        by increasing that share of all such 
                        administrative costs by 1 percentage 
                        point to a maximum of 60 percent of all 
                        such administrative costs for each full 
                        \1/10\ of a percentage point by which 
                        the payment error rate is less than 6 
                        percent.
                            ``(ii) Limitation.--Only States 
                        with a rate of invalid decisions in 
                        denying eligibility that is less than a 
                        nationwide percentage that the 
                        Secretary determines to be reasonable 
                        shall be entitled to the adjustment 
                        under clause (i).
                    ``(C) Establishment of liability amount for 
                fiscal year 2003 and thereafter.--With respect 
                to fiscal year 2004 and any fiscal year 
                thereafter for which the Secretary determines 
                that, for the second or subsequent consecutive 
                fiscal year, a 95 percent statistical 
                probability exists that the payment error rate 
                of a State agency exceeds 105 percent of the 
                national performance measure for payment error 
                rates announced under paragraph (6), the 
                Secretary shall establish an amount for which 
                the State agency may be liable (referred to in 
                this paragraph as the `liability amount') that 
                is equal to the product obtained by 
                multiplying--
                            ``(i) the value of all allotments 
                        issued by the State agency in the 
                        fiscal year;
                            ``(ii) the difference between--
                                    ``(I) the payment error 
                                rate of the State agency; and
                                    ``(II) 6 percent; and
                            ``(iii) 10 percent.
                    ``(D) Authority of secretary with respect 
                to liability amount.--With respect to the 
                liability amount established for a State agency 
                under subparagraph (C) for any fiscal year, the 
                Secretary shall--
                            ``(i)(I) waive the responsibility 
                        of the State agency to pay all or any 
                        portion of the liability amount 
                        established for the fiscal year 
                        (referred to in this paragraph as the 
                        `waiver amount');
                            ``(II) require that a portion, not 
                        to exceed 50 percent, of the liability 
                        amount established for the fiscal year 
                        be used by the State agency for new 
                        investment, approved by the Secretary, 
                        to improve administration by the State 
                        agency of the food stamp program 
                        (referred to in this paragraph as the 
                        `new investment amount'), which new 
                        investment amount shall not be matched 
                        by Federal funds;
                            ``(III) designate a portion, not to 
                        exceed 50 percent, of the amount 
                        established for the fiscal year for 
                        payment to the Secretary in accordance 
                        with subparagraph (E) (referred to in 
                        this paragraph as the `at-risk 
                        amount'); or
                            ``(IV) take any combination of the 
                        actions described in subclauses (I) 
                        through (III); or
                            ``(ii) make the determinations 
                        described in clause (i) and enter into 
                        a settlement with the State agency, 
                        only with respect to any waiver amount 
                        or new investment amount, before the 
                        end of the fiscal year in which the 
                        liability amount is determined under 
                        subparagraph (C).
                    ``(E) Payment of at-risk amount for certain 
                states.--
                            ``(i) In general.--A State agency 
                        shall pay to the Secretary the at-risk 
                        amount designated under subparagraph 
                        (D)(i)(III) for any fiscal year in 
                        accordance with clause (ii), if, with 
                        respect to the immediately following 
                        fiscal year, a liability amount has 
                        been established for the State agency 
                        under subparagraph (C).
                            ``(ii) Method of payment of at-risk 
                        amount.--
                                    ``(I) Remission to the 
                                secretary.--In the case of a 
                                State agency required to pay an 
                                at-risk amount under clause 
                                (i), as soon as practicable 
                                after completion of all 
                                administrative and judicial 
                                reviews with respect to that 
                                requirement to pay, the chief 
                                executive officer of the State 
                                shall remit to the Secretary 
                                the at-risk amount required to 
                                be paid.
                                    ``(II) Alternative method 
                                of collection.--
                                            ``(aa) In 
                                        general.--If the chief 
                                        executive officer of 
                                        the State fails to make 
                                        the payment under 
                                        subclause (I) within a 
                                        reasonable period of 
                                        time determined by the 
                                        Secretary, the 
                                        Secretary may reduce 
                                        any amount due to the 
                                        State agency under any 
                                        other provision of this 
                                        section by the amount 
                                        required to be paid 
                                        under clause (i).
                                            ``(bb) Accrual of 
                                        interest.--During any 
                                        period of time 
                                        determined by the 
                                        Secretary under item 
                                        (aa), interest on the 
                                        payment under subclause 
                                        (I) shall not accrue 
                                        under section 13(a)(2).
                    ``(F) Use of portion of liability amount 
                for new investment.--
                            ``(i) Reduction of other amounts 
                        due to state agency.--In the case of a 
                        State agency that fails to comply with 
                        a requirement for new investment under 
                        subparagraph (D)(i)(II) or clause 
                        (iii)(I), the Secretary may reduce any 
                        amount due to the State agency under 
                        any other provision of this section by 
                        the portion of the liability amount 
                        that has not been used in accordance 
                        with that requirement.
                            ``(ii) Effect of state agency's 
                        wholly prevailing on appeal.--If a 
                        State agency begins required new 
                        investment under subparagraph 
                        (D)(i)(II), the State agency appeals 
                        the liability amount of the State 
                        agency, and the determination by the 
                        Secretary of the liability amount is 
                        reduced to $0 on administrative or 
                        judicial review, the Secretary shall 
                        pay to the State agency an amount equal 
                        to 50 percent of the new investment 
                        amount that was included in the 
                        liability amount subject to the appeal.
                            ``(iii) Effect of secretary's 
                        wholly prevailing on appeal.--If a 
                        State agency does not begin required 
                        new investment under subparagraph 
                        (D)(i)(II), the State agency appeals 
                        the liability amount of the State 
                        agency, and the determination by the 
                        Secretary of the liability amount is 
                        wholly upheld on administrative or 
                        judicial review, the Secretary shall--
                                    ``(I) require all or any 
                                portion of the new investment 
                                amount to be used by the State 
                                agency for new investment, 
                                approved by the Secretary, to 
                                improve administration by the 
                                State agency of the food stamp 
                                program, which amount shall not 
                                be matched by Federal funds; 
                                and
                                    ``(II) require payment of 
                                any remaining portion of the 
                                new investment amount in 
                                accordance with subparagraph 
                                (E)(ii).
                            ``(iv) Effect of neither party's 
                        wholly prevailing on appeal.--The 
                        Secretary shall promulgate regulations 
                        regarding obligations of the Secretary 
                        and the State agency in a case in which 
                        the State agency appeals the liability 
                        amount of the State agency and neither 
                        the Secretary nor the State agency 
                        wholly prevails.
                    ``(G) Corrective action plans.--The 
                Secretary shall foster management improvements 
                by the States by requiring State agencies, 
                other than State agencies with payment error 
                rates of less than 6 percent, to develop and 
                implement corrective action plans to reduce 
                payment errors.'';
            (2) in paragraph (4), by striking ``(4)'' and all 
        that follows through the end of the first sentence and 
        inserting the following:
            ``(4) Reporting requirements.--The Secretary may 
        require a State agency to report any factors that the 
        Secretary considers necessary to determine a State 
        agency's payment error rate, liability amount or new 
        investment amount under paragraph (1), or performance 
        under the performance measures under subsection (d).'';
            (3) in paragraph (5)--
                    (A) by striking ``(5)'' and all that 
                follows through the end of the second sentence 
                and inserting the following:
            ``(5) Procedures.--To facilitate the implementation 
        of this subsection, each State agency shall 
        expeditiously submit to the Secretary data concerning 
        the operations of the State agency in each fiscal year 
        sufficient for the Secretary to establish the State 
        agency's payment error rate, liability amount or new 
        investment amount under paragraph (1), or performance 
        under the performance measures under subsection (d).''; 
        and
                    (B) in the last sentence, by striking 
                ``paragraph (1)(C)'' and inserting ``paragraph 
                (1)'';
            (4) in paragraph (6)--
                    (A) by striking ``(6) At'' and inserting 
                the following:
            ``(6) National performance measure for payment 
        error rates.--
                    ``(A) Announcement.--At'';
                    (B) in subparagraph (A) (as designated by 
                subparagraph (A)), by striking ``and incentive 
                payments or claims pursuant to paragraphs 
                (1)(A) and (1)(C)'';
                    (C) in the first and third sentences, by 
                striking ``paragraph (5)'' each place it 
                appears and inserting ``paragraph (8)'';
                    (D) by striking ``Where a State'' and 
                inserting the following:
                    ``(B) Use of alternative measure of state 
                error.--Where a State'';
                    (E) by striking ``The announced'' and 
                inserting the following:
                    ``(C) Use of national performance 
                measure.--The announced'';
                    (F) in subparagraph (C) (as designated by 
                subparagraph (E)), by striking ``the State 
                share of the cost of payment error under 
                paragraph (1)(C)'' and inserting ``the 
                liability amount of a State under paragraph 
                (1)(C)''; and
                    (G) by adding at the end the following:
                    ``(D) No administrative or judicial 
                review.--The national performance measure 
                announced under this paragraph shall not be 
                subject to administrative or judicial 
                review.'';
            (5) in paragraph (7)--
                    (A) by striking ``(7) If the Secretary 
                asserts a financial claim against'' and 
                inserting the following:
            ``(7) Administrative and judicial review.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), if the Secretary 
                asserts a financial claim against or 
                establishes a liability amount with respect 
                to'';
                    (B) in subparagraph (A) (as designated by 
                subparagraph (A)), by striking ``paragraph 
                (1)(C)'' and inserting ``paragraph (1)''; and
                    (C) by adding at the end the following:
                    ``(B) Determination of payment error 
                rate.--With respect to any fiscal year, a 
                determination of the payment error rate of a 
                State agency or a determination whether the 
                payment error rate exceeds 105 percent of the 
                national performance measure for payment error 
                rates shall be subject to administrative or 
                judicial review only if the Secretary 
                establishes a liability amount with respect to 
                the fiscal year under paragraph (1)(C).
                    ``(C) Authority of secretary with respect 
                to liability amount.--An action by the 
                Secretary under subparagraph (D) or (F)(iii) of 
                paragraph (1) shall not be subject to 
                administrative or judicial review.''; and
            (6) in paragraph (8)--
                    (A) in subparagraph (A), by striking 
                ``paragraph (1)(C)'' and inserting ``paragraph 
                (1)'';
                    (B) in subparagraph (C)--
                            (i) in clause (i), by striking 
                        ``payment claimed against State 
                        agencies; and'' and inserting ``payment 
                        claimed against State agencies or 
                        liability amount established with 
                        respect to State agencies;'';
                            (ii) in clause (ii), by striking 
                        ``claims.'' and inserting ``claims or 
                        liability amounts; and''; and
                            (iii) by adding at the end the 
                        following:
                            ``(iii) provide a copy of the 
                        document providing notification under 
                        clause (ii) to the chief executive 
                        officer and the legislature of the 
                        State.''; and
                    (C) in subparagraphs (D) and (H), by 
                inserting ``or liability amount'' after 
                ``claim'' each place it appears.
    (b) Authority To Settle Claims Concerning At-Risk 
Amounts.--Section 13(a) of the Food Stamp Act of 1977 (7 U.S.C. 
2022(a)) is amended--
            (1) by striking ``(a)(1) The'' and inserting the 
        following:
    ``(a) General Authority of the Secretary.--
            ``(1) Determination of claims.--Except in the case 
        of an at-risk amount required under section 
        16(c)(1)(D)(i)(III), the'';
            (2) by striking the fourth sentence;
            (3) by striking ``To the extent'' and inserting the 
        following:
            ``(2) Claims established under quality control 
        system.--To the extent'';
            (4) in paragraph (2) (as designated by paragraph 
        (3)), by striking ``section 16(c)(1)(C)'' and inserting 
        ``section 16(c)(1)'';
            (5) by striking ``Any interest'' and inserting the 
        following:
            ``(3) Computation of interest.--Any interest''; and
            (6) by striking ``(2) Each adult'' and inserting 
        the following:
            ``(4) Joint and several liability of household 
        members.--Each adult''.
    (c) Crediting of Payments to Food Stamp Appropriations 
Account.--Section 18(e) of the Food Stamp Act of 1977 (7 U.S.C. 
2027(e)) is amended in the first sentence--
            (1) by striking ``11(g) and (h), and'' and 
        inserting ``subsections (g) and (h) of section 11,''; 
        and
            (2) by inserting ``and section 16(c)(1),'' after 
        ``section 13,''.
    (d) Conforming Amendments.--Section 22(h) of the Food Stamp 
Act of 1977 (7 U.S.C. 2031(h)) is amended--
            (1) in the second sentence, by striking ``section 
        16(c)(1)(C)'' and inserting ``section 16(c)(1)''; and
            (2) by striking the third sentence.
    (e) Applicability.--The amendments made by this section 
shall not apply with respect to any sanction, appeal, new 
investment agreement, or other action by the Secretary of 
Agriculture or a State agency that is based on a payment error 
rate calculated for any fiscal year before fiscal year 2003.

SEC. 4119. IMPROVEMENT OF CALCULATION OF STATE PERFORMANCE MEASURES.

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

SEC. 4120. BONUSES FOR STATES THAT DEMONSTRATE HIGH OR MOST IMPROVED 
                    PERFORMANCE.

    (a) In General.--Section 16 of the Food Stamp Act of 1977 
(7 U.S.C. 2025) is amended by striking subsection (d) and 
inserting the following:
    ``(d) Bonuses for States That Demonstrate High or Most 
Improved Performance.--
            ``(1) Fiscal years 2003 and 2004.--
                    ``(A) Guidance.--With respect to fiscal 
                years 2003 and 2004, the Secretary shall 
                establish, in guidance issued to State agencies 
                not later than October 1, 2002--
                            ``(i) performance criteria relating 
                        to--
                                    ``(I) actions taken to 
                                correct errors, reduce rates of 
                                error, and improve eligibility 
                                determinations; and
                                    ``(II) other indicators of 
                                effective administration 
                                determined by the Secretary; 
                                and
                            ``(ii) standards for high and most 
                        improved performance to be used in 
                        awarding performance bonus payments 
                        under subparagraph (B)(ii).
                    ``(B) Performance bonus payments.--With 
                respect to each of fiscal years 2003 and 2004, 
                the Secretary shall--
                            ``(i) measure the performance of 
                        each State agency with respect to the 
                        criteria established under subparagraph 
                        (A)(i); and
                            ``(ii) subject to paragraph (3), 
                        award performance bonus payments in the 
                        following fiscal year, in a total 
                        amount of $48,000,000 for each fiscal 
                        year, to State agencies that meet 
                        standards for high or most improved 
                        performance established by the 
                        Secretary under subparagraph (A)(ii).
            ``(2) Fiscal years 2005 and thereafter.--
                    ``(A) Regulations.--With respect to fiscal 
                year 2005 and each fiscal year thereafter, the 
                Secretary shall--
                            ``(i) establish, by regulation, 
                        performance criteria relating to--
                                    ``(I) actions taken to 
                                correct errors, reduce rates of 
                                error, and improve eligibility 
                                determinations; and
                                    ``(II) other indicators of 
                                effective administration 
                                determined by the Secretary;
                            ``(ii) establish, by regulation, 
                        standards for high and most improved 
                        performance to be used in awarding 
                        performance bonus payments under 
                        subparagraph (B)(ii); and
                            ``(iii) before issuing proposed 
                        regulations to carry out clauses (i) 
                        and (ii), solicit ideas for performance 
                        criteria and standards for high and 
                        most improved performance from State 
                        agencies and organizations that 
                        represent State interests.
                    ``(B) Performance bonus payments.--With 
                respect to fiscal year 2005 and each fiscal 
                year thereafter, the Secretary shall--
                            ``(i) measure the performance of 
                        each State agency with respect to the 
                        criteria established under subparagraph 
                        (A)(i); and
                            ``(ii) subject to paragraph (3), 
                        award performance bonus payments in the 
                        following fiscal year, in a total 
                        amount of $48,000,000 for each fiscal 
                        year, to State agencies that meet 
                        standards for high or most improved 
                        performance established by the 
                        Secretary under subparagraph (A)(ii).
            ``(3) Prohibition on receipt of performance bonus 
        payments.--A State agency shall not be eligible for a 
        performance bonus payment with respect to any fiscal 
        year for which the State agency has a liability amount 
        established under subsection (c)(1)(C).
            ``(4) Payments not subject to judicial review.--A 
        determination by the Secretary whether, and in what 
        amount, to award a performance bonus payment under this 
        subsection shall not be subject to administrative or 
        judicial review.''.
    (b) Effective Date.--The amendment made by this section 
takes effect on the date of enactment of this Act.

SEC. 4121. EMPLOYMENT AND TRAINING PROGRAM.

    (a) Levels of Funding.--Section 16(h)(1) of the Food Stamp 
Act of 1977 (7 U.S.C. 2025(h)(1)) is amended--
            (1) in subparagraph (A), by striking clause (vii) 
        and inserting the following:
                            ``(vii) for each of fiscal years 
                        2002 through 2007, $90,000,000.'';
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Allocation.--Funds made available 
                under subparagraph (A) shall be made available 
                to and reallocated among State agencies under a 
                reasonable formula that--
                            ``(i) is determined and adjusted by 
                        the Secretary; and
                            ``(ii) takes into account the 
                        number of individuals who are not 
                        exempt from the work requirement under 
                        section 6(o).''; and
            (3) by striking subparagraphs (E) through (G) and 
        inserting the following:
                    ``(E) Additional allocations for states 
                that ensure availability of work 
                opportunities.--
                            ``(i) In general.--In addition to 
                        the allocations under subparagraph (A), 
                        from funds made available under section 
                        18(a)(1), the Secretary shall allocate 
                        not more than $20,000,000 for each of 
                        fiscal years 2002 through 2007 to 
                        reimburse a State agency that is 
                        eligible under clause (ii) for the 
                        costs incurred in serving food stamp 
                        recipients who--
                                    ``(I) are not eligible for 
                                an exception under section 
                                6(o)(3); and
                                    ``(II) are placed in and 
                                comply with a program described 
                                in subparagraph (B) or (C) of 
                                section 6(o)(2).
                            ``(ii) Eligibility.--To be eligible 
                        for an additional allocation under 
                        clause (i), a State agency shall make 
                        and comply with a commitment to offer a 
                        position in a program described in 
                        subparagraph (B) or (C) of section 
                        6(o)(2) to each applicant or recipient 
                        who--
                                    ``(I) is in the last month 
                                of the 3-month period described 
                                in section 6(o)(2);
                                    ``(II) is not eligible for 
                                an exception under section 
                                6(o)(3);
                                    ``(III) is not eligible for 
                                a waiver under section 6(o)(4); 
                                and
                                    ``(IV) is not exempt under 
                                section 6(o)(6).''.
    (b) Carryover Funds.--Notwithstanding any other provision 
of law, funds provided under section 16(h)(1)(A) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(h)(1)(A)) for any fiscal year 
before fiscal year 2002 shall be rescinded on the date of 
enactment of this Act, unless obligated by a State agency 
before that date.
    (c) Participant Expenses.--Section 6(d)(4)(I)(i)(I) of the 
Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4)(I)(i)(I)) is 
amended by striking ``, except that the State agency may limit 
such reimbursement to each participant to $25 per month''.
    (d) Federal Reimbursement.--Section 16(h)(3) of the Food 
Stamp Act of 1977 (7 U.S.C. 2025(h)(3)) is amended by striking 
``such total amount shall not exceed an amount representing $25 
per participant per month for costs of transportation and other 
actual costs (other than dependent care costs) and'' and 
inserting ``the amount of the reimbursement for dependent care 
expenses shall not exceed''.
    (e) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

SEC. 4122. REAUTHORIZATION OF FOOD STAMP PROGRAM AND FOOD DISTRIBUTION 
                    PROGRAM ON INDIAN RESERVATIONS.

    (a) Reductions in Payments for Administrative Costs.--
Section 16(k)(3) of the Food Stamp Act of 1977 (7 U.S.C. 
2025(k)(3)) is amended--
            (1) in the first sentence of subparagraph (A), by 
        striking ``2002'' and inserting ``2007''; and
            (2) in subparagraph (B)(ii), by striking ``2002'' 
        and inserting ``2007''.
    (b) Cash Payment Pilot Projects.--Section 17(b)(1)(B)(vi) 
of the Food Stamp Act of 1977 (7 U.S.C. 2026(b)(1)(B)(vi)) is 
amended by striking ``2002'' and inserting ``2007''.
    (c) Authorization of Appropriations.--Section 18(a)(1) of 
the Food Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended in 
the first sentence by striking ``1996 through 2002'' and 
inserting ``2003 through 2007''.

SEC. 4123. EXPANDED GRANT AUTHORITY.

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

SEC. 4124. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN 
                    SAMOA.

    (a) Consolidated Funding.--Section 19 of the Food Stamp Act 
of 1977 (7 U.S.C. 2028) is amended--
            (1) by striking the section heading and ``(a)(1)(A) 
        From'' and all that follows through ``(2) The'' and 
        inserting the following:

``SEC. 19. CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO AND AMERICAN 
                    SAMOA.

    ``(a) Payments to Governmental Entities.--
            ``(1) Definition of governmental entity.--In this 
        subsection, the term `governmental entity' means--
                    ``(A) the Commonwealth of Puerto Rico; and
                    ``(B) American Samoa.
            ``(2) Block grants.--
                    ``(A) Amount of block grants.--From the 
                sums appropriated under this Act, the Secretary 
                shall, subject to this section, pay to 
                governmental entities to pay the expenditures 
                for nutrition assistance programs for needy 
                persons as described in subparagraphs (B) and 
                (C)--
                            ``(i) for fiscal year 2003, 
                        $1,401,000,000; and
                            ``(ii) for each of fiscal years 
                        2004 through 2007, the amount specified 
                        in clause (i), as adjusted by the 
                        percentage by which the thrifty food 
                        plan has been adjusted under section 
                        3(o)(4) between June 30, 2002, and June 
                        30 of the immediately preceding fiscal 
                        year.
                    ``(B) Payments to commonwealth of puerto 
                rico.--
                            ``(i) In general.--For fiscal year 
                        2003 and each fiscal year thereafter, 
                        the Secretary shall use 99.6 percent of 
                        the funds made available under 
                        subparagraph (A) for payment to the 
                        Commonwealth of Puerto Rico to pay--
                                    ``(I) 100 percent of the 
                                expenditures by the 
                                Commonwealth for the fiscal 
                                year for the provision of 
                                nutrition assistance included 
                                in the plan of the Commonwealth 
                                approved under subsection (b); 
                                and
                                    ``(II) 50 percent of the 
                                related administrative 
                                expenses.
                            ``(ii) Exception for expenditures 
                        for certain systems.--Notwithstanding 
                        clause (i), the Commonwealth of Puerto 
                        Rico may spend in fiscal year 2002 or 
                        2003 not more than $6,000,000 of the 
                        amount required to be paid to the 
                        Commonwealth for fiscal year 2002 under 
                        this paragraph (as in effect on the day 
                        before the date of enactment of this 
                        clause) to pay 100 percent of the costs 
                        of--
                                    ``(I) upgrading and 
                                modernizing the electronic data 
                                processing system used to carry 
                                out nutrition assistance 
                                programs for needy persons;
                                    ``(II) implementing systems 
                                to simplify the determination 
                                of eligibility to receive the 
                                nutrition assistance; and
                                    ``(III) operating systems 
                                to deliver the nutrition 
                                assistance through electronic 
                                benefit transfers.
                    ``(C) Payments to american samoa.--For 
                fiscal year 2003 and each fiscal year 
                thereafter, the Secretary shall use 0.4 percent 
                of the funds made available under subparagraph 
                (A) for payment to American Samoa to pay 100 
                percent of the expenditures by American Samoa 
                for a nutrition assistance program extended 
                under section 601(c) of Public Law 96-597 (48 
                U.S.C. 1469d(c)).
                    ``(D) Carryover of funds.--For fiscal year 
                2002 and each fiscal year thereafter, not more 
                than 2 percent of the funds made available 
                under this paragraph for the fiscal year to 
                each governmental entity may be carried over to 
                the following fiscal year.
            ``(3) Time and manner of payments to commonwealth 
        of puerto rico.--The'';
            (2) in subsection (b), by striking ``subsection 
        (a)(1)(A)'' each place it appears and inserting 
        ``subsection (a)(2)(B)''; and
            (3) in subsection (c), by striking ``subsection 
        (a)(1)(A)'' each place it appears and inserting 
        ``subsection (a)(2)(A)''.
    (b) Conforming Amendment.--Section 24 of the Food Stamp Act 
of 1977 (7 U.S.C. 2033) is repealed.
    (c) Applicability.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by this section apply 
        beginning on October 1, 2002.
            (2) Exceptions.--Subparagraphs (B)(ii) and (D) of 
        section 19(a)(2) of the Food Stamp Act of 1977 (as 
        amended by subsection (a)(1)) apply beginning on the 
        date of enactment of this Act.
    (d) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

SEC. 4125. ASSISTANCE FOR COMMUNITY FOOD PROJECTS.

    (a) In General.--Section 25 of the Food Stamp Act of 1977 
(7 U.S.C. 2034) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(1)'' and inserting 
                ``(1)(A)'';
                    (B) by redesignating paragraphs (2) and (3) 
                as subparagraphs (B) and (C), respectively, of 
                paragraph (1);
                    (C) in paragraph (1)(C) (as redesignated by 
                subparagraph (B)), by striking the period at 
                the end and inserting ``; or''; and
                    (D) by adding at the end the following:
            ``(2) meet specific State, local, or neighborhood 
        food and agricultural needs, including needs for--
                    ``(A) infrastructure improvement and 
                development;
                    ``(B) planning for long-term solutions; or
                    ``(C) the creation of innovative marketing 
                activities that mutually benefit agricultural 
                producers and low-income consumers.'';
            (2) in subsection (b)(2)(B)--
                    (A) by striking ``$2,500,000'' and 
                inserting ``$5,000,000''; and
                    (B) by striking ``2002'' and inserting 
                ``2007'';
            (3) in subsection (d), by striking paragraph (4) 
        and inserting the following:
            ``(4) encourage long-term planning activities, and 
        multisystem, interagency approaches with 
        multistakeholder collaborations, that build the long-
        term capacity of communities to address the food and 
        agricultural problems of the communities, such as food 
        policy councils and food planning associations.''; and
            (4) by striking subsection (h) and inserting the 
        following:
    ``(h) Innovative Programs for Addressing Common Community 
Problems.--
            ``(1) In general.--The Secretary shall offer to 
        enter into a contract with, or make a grant to, 1 
        nongovernmental organization that meets the 
        requirements of paragraph (2) to coordinate with 
        Federal agencies, States, political subdivisions, and 
        nongovernmental organizations (collectively referred to 
        in this subsection as `targeted entities') to gather 
        information, and recommend to the targeted entities, 
        innovative programs for addressing common community 
        problems, including--
                    ``(A) loss of farms and ranches;
                    ``(B) rural poverty;
                    ``(C) welfare dependency;
                    ``(D) hunger;
                    ``(E) the need for job training; and
                    ``(F) the need for self-sufficiency by 
                individuals and communities.
            ``(2) Nongovernmental organization.--The 
        nongovernmental organization referred to in paragraph 
        (1) shall--
                    ``(A) be selected by the Secretary on a 
                competitive basis;
                    ``(B) be experienced in working with other 
                targeted entities and in organizing workshops 
                that demonstrate programs to other targeted 
                entities;
                    ``(C) be experienced in identifying 
                programs that effectively address community 
                problems described in paragraph (1) that can be 
                implemented by other targeted entities;
                    ``(D) be experienced in, and capable of, 
                receiving information from and communicating 
                with other targeted entities throughout the 
                United States;
                    ``(E) be experienced in operating a 
                national information clearinghouse that 
                addresses 1 or more of the community problems 
                described in paragraph (1); and
                    ``(F) as a condition of entering into the 
                contract or receiving the grant referred to in 
                paragraph (1), agree--
                            ``(i) to contribute in-kind 
                        resources toward implementation of the 
                        contract or grant;
                            ``(ii) to provide to other targeted 
                        entities information and guidance on 
                        the innovative programs referred to in 
                        paragraph (1); and
                            ``(iii) to operate a national 
                        information clearinghouse on innovative 
                        means for addressing community problems 
                        described in paragraph (1) that--
                                    ``(I) is easily usable by--
                                            ``(aa) Federal, 
                                        State, and local 
                                        government agencies;
                                            ``(bb) local 
                                        community leaders;
                                            ``(cc) 
                                        nongovernmental 
                                        organizations; and
                                            ``(dd) the public; 
                                        and
                                    ``(II) includes information 
                                on approved community food 
                                projects.
            ``(3) Audits; effective use of funds.--The 
        Secretary shall establish auditing procedures and 
        otherwise ensure the effective use of funds made 
        available to carry out this subsection.
            ``(4) Funding.--Not later than 90 days after the 
        date of enactment of this paragraph, and on October 1 
        of each of fiscal years 2003 through 2007, the 
        Secretary shall allocate to carry out this subsection 
        $200,000 of the funds made available under subsection 
        (b), to remain available until expended.''.
    (b) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

SEC. 4126. AVAILABILITY OF COMMODITIES FOR THE EMERGENCY FOOD 
                    ASSISTANCE PROGRAM.

    (a) In General.--Section 27(a) of the Food Stamp Act of 
1977 (7 U.S.C. 2036(a)) is amended--
            (1) by striking ``1997 through 2002'' and inserting 
        ``2002 through 2007''; and
            (2) by striking ``$100,000,000'' and inserting 
        ``$140,000,000''.
    (b) Effective Date.--The amendments made by this section 
take effect on October 1, 2001.

                   Subtitle B--Commodity Distribution

SEC. 4201. COMMODITY SUPPLEMENTAL FOOD PROGRAM.

    (a) Commodity Distribution Program.--Section 4(a) of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
note; Public Law 93-86) is amended in the first sentence by 
striking ``2002'' and inserting ``2007''.
    (b) Commodity Supplemental Food Program.--Section 5 of the 
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c 
note; Public Law 93-86) is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) Grants Per Assigned Caseload Slot.--
            ``(1) In general.--In carrying out the program 
        under section 4 (referred to in this section as the 
        `commodity supplemental food program'), for each of 
        fiscal years 2003 through 2007, the Secretary shall 
        provide to each State agency from funds made available 
        to carry out that section (including any such funds 
        remaining available from the preceding fiscal year), a 
        grant per assigned caseload slot for administrative 
        costs incurred by the State agency and local agencies 
        in the State in operating the commodity supplemental 
        food program.
            ``(2) Amount of grants.--
                    ``(A) Fiscal year 2003.--For fiscal year 
                2003, the amount of each grant per assigned 
                caseload slot shall be equal to the amount of 
                the grant per assigned caseload slot for 
                administrative costs in 2001, adjusted by the 
                percentage change between--
                            ``(i) the value of the State and 
                        local government price index, as 
                        published by the Bureau of Economic 
                        Analysis of the Department of Commerce, 
                        for the 12-month period ending June 30, 
                        2001; and
                            ``(ii) the value of that index for 
                        the 12-month period ending June 30, 
                        2002.
                    ``(B) Fiscal years 2004 through 2007.--For 
                each of fiscal years 2004 through 2007, the 
                amount of each grant per assigned caseload slot 
                shall be equal to the amount of the grant per 
                assigned caseload slot for the preceding fiscal 
                year, adjusted by the percentage change 
                between--
                            ``(i) the value of the State and 
                        local government price index, as 
                        published by the Bureau of Economic 
                        Analysis of the Department of Commerce, 
                        for the 12-month period ending June 30 
                        of the second preceding fiscal year; 
                        and
                            ``(ii) the value of that index for 
                        the 12-month period ending June 30 of 
                        the preceding fiscal year.'';
            (2) in subsection (d)(2), by striking ``2002'' each 
        place it appears and inserting ``2007''; and
            (3) by striking subsection (l) and inserting the 
        following:
    ``(l) Use of Approved Food Safety Technology.--
            ``(1) In general.--In acquiring commodities for 
        distribution through a program specified in paragraph 
        (2), the Secretary shall not prohibit the use of any 
        technology to improve food safety that--
                    ``(A) has been approved by the Secretary; 
                or
                    ``(B) has been approved or is otherwise 
                allowed by the Secretary of Health and Human 
                Services.
            ``(2) Programs.--A program referred to in paragraph 
        (1) is a program authorized under--
                    ``(A) this Act;
                    ``(B) the Food Stamp Act of 1977 (7 U.S.C. 
                2011 et seq.);
                    ``(C) the Emergency Food Assistance Act of 
                1983 (7 U.S.C. 7501 et seq.);
                    ``(D) the Richard B. Russell National 
                School Lunch Act (42 U.S.C. 1751 et seq.); or
                    ``(E) the Child Nutrition Act of 1966 (42 
                U.S.C. 1771 et seq.).''.
    (c) Additional Funding for Certain States.--
            (1) In general.--Not later than 30 days after the 
        date of enactment of this Act, of the funds of the 
        Commodity Credit Corporation, the Secretary of 
        Agriculture shall make available an amount equal to the 
        amount that the Secretary of Agriculture determines to 
        be necessary to permit each State that began 
        administering the commodity supplemental food program 
        under the Agriculture and Consumer Protection Act of 
        1973 (7 U.S.C. 612c note; Public Law 93-86) in the 2000 
        caseload cycle to administer the program, through the 
        2002 caseload cycle, at a caseload level that is not 
        less than the originally assigned caseload level of the 
        State.
            (2) Provision to states.--The Secretary shall 
        provide to each State described in paragraph (1) for 
        the purpose described in that paragraph the funds made 
        available under that paragraph.
    (d) Effective Date.--The amendment made by subsection 
(b)(3) takes effect on the date of enactment of this Act.

SEC. 4202. COMMODITY DONATIONS.

    (a) In General.--The Commodity Distribution Reform Act and 
WIC Amendments of 1987 (7 U.S.C. 612c note; Public Law 100-237) 
is amended--
            (1) by redesignating sections 17 and 18 as sections 
        18 and 19, respectively; and
            (2) by inserting after section 16 the following:

``SEC. 17. COMMODITY DONATIONS.

    ``(a) In General.--Notwithstanding any other provision of 
law concerning commodity donations, any commodities acquired in 
the conduct of the operations of the Commodity Credit 
Corporation and any commodities acquired under section 32 of 
the Act of August 24, 1935 (7 U.S.C. 612c), to the extent that 
the commodities are in excess of the quantities of commodities 
that are essential to carry out other authorized activities of 
the Commodity Credit Corporation and the Secretary (including 
any quantity specifically reserved for a specific purpose), may 
be used for any program authorized to be carried out by the 
Secretary that involves the acquisition of commodities for use 
in a domestic feeding program, including any program conducted 
by the Secretary that provides commodities to individuals in 
cases of hardship.
    ``(b) Programs.--A program described in subsection (a) 
includes a program authorized by--
            ``(1) the Emergency Food Assistance Act of 1983 (7 
        U.S.C. 7501 et seq.);
            ``(2) the Richard B. Russell National School Lunch 
        Act (42 U.S.C. 1751 et seq.);
            ``(3) the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.);
            ``(4) the Older Americans Act of 1965 (42 U.S.C. 
        3001 et seq.); or
            ``(5) such other laws as the Secretary determines 
        to be appropriate.''.
    (b) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

SEC. 4203. DISTRIBUTION OF SURPLUS COMMODITIES TO SPECIAL NUTRITION 
                    PROJECTS.

    Section 1114(a)(2)(A) of the Agriculture and Food Act of 
1981 (7 U.S.C. 1431e(2)(A)) is amended in the first sentence by 
striking ``2002'' and inserting ``2007''.

SEC. 4204. EMERGENCY FOOD ASSISTANCE.

    Section 204(a)(1) of the Emergency Food Assistance Act of 
1983 (7 U.S.C. 7508(a)(1)) is amended in the first sentence--
            (1) by striking ``$50,000,000'' and inserting 
        ``$60,000,000'';
            (2) by striking ``1991 through 2002'' and inserting 
        ``2003 through 2007'';
            (3) by striking ``administrative'';
            (4) by inserting ``storage,'' after 
        ``processing,''; and
            (5) by inserting ``, including commodities secured 
        by gleaning (as defined in section 111(a) of the Hunger 
        Prevention Act of 1988 (7 U.S.C. 612c note; Public Law 
        100-435))'' after ``sources''.

            Subtitle C--Child Nutrition and Related Programs

SEC. 4301. COMMODITIES FOR SCHOOL LUNCH PROGRAM.

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

SEC. 4302. ELIGIBILITY FOR FREE AND REDUCED PRICE MEALS.

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

SEC. 4303. PURCHASES OF LOCALLY PRODUCED FOODS.

    Section 9 of the Richard B. Russell National School Lunch 
Act (42 U.S.C. 1758) is amended by adding at the end the 
following:
    ``(j) Purchases of Locally Produced Foods.--
            ``(1) In general.--The Secretary shall--
                    ``(A) encourage institutions participating 
                in the school lunch program under this Act and 
                the school breakfast program established by 
                section 4 of the Child Nutrition Act of 1966 
                (42 U.S.C. 1773) to purchase, in addition to 
                other food purchases, locally produced foods 
                for school meal programs, to the maximum extent 
                practicable and appropriate;
                    ``(B) advise institutions participating in 
                a program described in subparagraph (A) of the 
                policy described in that subparagraph and post 
                information concerning the policy on the 
                website maintained by the Secretary; and
                    ``(C) in accordance with requirements 
                established by the Secretary, provide startup 
                grants to not more than 200 institutions to 
                defray the initial costs of equipment, 
                materials, and storage facilities, and similar 
                costs, incurred in carrying out the policy 
                described in subparagraph (A).
            ``(2) Authorization of appropriations.--
                    ``(A) In general.--There is authorized to 
                be appropriated to carry out this subsection 
                $400,000 for each of fiscal years 2003 through 
                2007, to remain available until expended.
                    ``(B) Limitation.--No amounts may be made 
                available to carry out this subsection unless 
                specifically provided by an appropriation 
                Act.''.

SEC. 4304. APPLICABILITY OF BUY-AMERICAN REQUIREMENT TO PUERTO RICO.

    Section 12(n) of the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1760(n)) is amended by adding at the end 
the following:
            ``(4) Applicability to puerto rico.--Paragraph 
        (2)(A) shall apply to a school food authority in the 
        Commonwealth of Puerto Rico with respect to domestic 
        commodities or products that are produced in the 
        Commonwealth of Puerto Rico in sufficient quantities to 
        meet the needs of meals provided under the school lunch 
        program under this Act or the school breakfast program 
        under section 4 of the Child Nutrition Act of 1966 (42 
        U.S.C. 1773).''.

SEC. 4305. FRUIT AND VEGETABLE PILOT PROGRAM.

    (a) In General.--Section 18 of the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1769) is amended by adding 
at the end the following:
    ``(g) Fruit and Vegetable Pilot Program.--
            ``(1) In general.--In the school year beginning 
        July 2002, the Secretary shall carry out a pilot 
        program to make available to students in 25 elementary 
        or secondary schools in each of 4 States, and in 
        elementary or secondary schools on 1 Indian 
        reservation, free fresh and dried fruits and fresh 
        vegetables throughout the school day in 1 or more areas 
        designated by the school.
            ``(2) Publicity.--A school that participates in the 
        pilot program shall widely publicize within the school 
        the availability of free fruits and vegetables under 
        the pilot program.
            ``(3) Report.--Not later than May 1, 2003, the 
        Secretary, acting through the Administrator of the 
        Economic Research Service, shall report to the 
        Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate on the results of 
        the pilot program.
            ``(4) Funding.--The Secretary shall use not more 
        than $6,000,000 of funds made available under section 
        32 of the Act of August 24, 1935 (7 U.S.C. 612c), to 
        carry out this subsection (other than paragraph 
        (3)).''.
    (b) Effective Date.--The amendment made by this section 
takes effect on the date of enactment of this Act.

SEC. 4306. ELIGIBILITY FOR ASSISTANCE UNDER THE SPECIAL SUPPLEMENTAL 
                    NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN.

    (a) In General.--Section 17(d)(2)(B)(i) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1786(d)(2)(B)(i)) is amended--
            (1) by striking ``basic allowance for housing'' and 
        inserting the following: ``basic allowance--
                    ``(I) for housing'';
            (2) by striking ``and'' at the end and inserting 
        ``or''; and
            (3) by adding at the end the following:
                    ``(II) provided under section 403 of title 
                37, United States Code, for housing that is 
                acquired or constructed under subchapter IV of 
                chapter 169 of title 10, United States Code, or 
                any related provision of law; and''.
    (b) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

SEC. 4307. WIC FARMERS' MARKET NUTRITION PROGRAM.

    (a) In General.--Section 17(m)(9) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(m)(9)) is amended--
            (1) by striking ``(9)(A) There'' and inserting the 
        following:
            ``(9) Funding.--
                    ``(A) In general.--
                            ``(i) Authorization of 
                        appropriations.--There''; and
            (2) in subparagraph (A), by adding at the end the 
        following:
                            ``(ii) Mandatory funding.--Not 
                        later than 30 days after the date of 
                        enactment of the Food Stamp 
                        Reauthorization Act of 2002, of the 
                        funds of the Commodity Credit 
                        Corporation, the Secretary shall make 
                        available to carry out this subsection 
                        $15,000,000, to remain available until 
                        expended.''.
    (b) Effective Date.--The amendments made by this section 
take effect on the date of enactment of this Act.

                       Subtitle D--Miscellaneous

SEC. 4401. PARTIAL RESTORATION OF BENEFITS TO LEGAL IMMIGRANTS.

    (a) Restoration of Benefits to Disabled Aliens.--Section 
402(a)(2)(F) of the Personal Responsibility and Work 
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(F)) 
is amended by striking ``(i) was'' and all that follows through 
``(II) in the case'' and inserting the following:
                            ``(i) in the case of the specified 
                        Federal program described in paragraph 
                        (3)(A)--
                                    ``(I) was lawfully residing 
                                in the United States on August 
                                22, 1996; and
                                    ``(II) is blind or disabled 
                                (as defined in paragraph (2) or 
                                (3) of section 1614(a) of the 
                                Social Security Act (42 U.S.C. 
                                1382c(a))); and
                            ``(ii) in the case''.
    (b) Restoration of Benefits to All Qualified Alien 
Children.--
            (1) In general.--Section 402(a)(2)(J) of the 
        Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (8 U.S.C. 1612(a)(2)(J)) is 
        amended by striking ``who'' and all that follows 
        through ``is under'' and inserting ``who is under''.
            (2) Conforming amendments.--
                    (A) Section 403(c)(2) of the Personal 
                Responsibility and Work Opportunity 
                Reconciliation Act of 1996 (8 U.S.C. 
                1613(c)(2)) is amended by adding at the end the 
                following:
                    ``(L) Assistance or benefits provided to 
                individuals under the age of 18 under the Food 
                Stamp Act of 1977 (7 U.S.C. 2011 et seq.).''.
                    (B) Section 421(d) of the Personal 
                Responsibility and Work Opportunity 
                Reconciliation Act of 1996 (8 U.S.C. 1631(d)) 
                is amended by adding at the end the following:
            ``(3) This section shall not apply to assistance or 
        benefits under the Food Stamp Act of 1977 (7 U.S.C. 
        2011 et seq.) to the extent that a qualified alien is 
        eligible under section 402(a)(2)(J).''.
                    (C) Section 5(i)(2)(E) of the Food Stamp 
                Act of 1977 (7 U.S.C. 2014(i)(2)(E)) is amended 
                by inserting before the period at the end the 
                following: ``, or to any alien who is under 18 
                years of age''.
            (3) Effective date.--The amendments made by this 
        subsection take effect on October 1, 2003.
    (c) Food Stamp Exception for Certain Qualified Aliens.--
            (1) In general.--Section 402(a)(2) of the Personal 
        Responsibility and Work Opportunity Reconciliation Act 
        of 1996 (8 U.S.C. 1612(a)(2)) is amended by adding at 
        the end the following:
                    ``(L) Food stamp exception for certain 
                qualified aliens.--With respect to eligibility 
                for benefits for the specified Federal program 
                described in paragraph (3)(B), paragraph (1) 
                shall not apply to any qualified alien who has 
                resided in the United States with a status 
                within the meaning of the term `qualified 
                alien' for a period of 5 years or more 
                beginning on the date of the alien's entry into 
                the United States.''.
            (2) Effective date.--The amendment made by 
        paragraph (1) takes effect on April 1, 2003.

SEC. 4402. SENIORS FARMERS' MARKET NUTRITION PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall use 
$5,000,000 for fiscal year 2002, and $15,000,000 for each of 
fiscal years 2003 through 2007, of the funds available to the 
Commodity Credit Corporation to carry out and expand a seniors 
farmers' market nutrition program.
    (b) Program Purposes.--The purposes of the seniors farmers' 
market nutrition program are--
            (1) to provide resources in the form of fresh, 
        nutritious, unprepared, locally grown fruits, 
        vegetables, and herbs from farmers' markets, roadside 
        stands, and community supported agriculture programs to 
        low-income seniors;
            (2) to increase the domestic consumption of 
        agricultural commodities by expanding or aiding in the 
        expansion of domestic farmers' markets, roadside 
        stands, and community supported agriculture programs; 
        and
            (3) to develop or aid in the development of new and 
        additional farmers' markets, roadside stands, and 
        community supported agriculture programs.
    (c) Regulations.--The Secretary may issue such regulations 
as the Secretary considers necessary to carry out the seniors 
farmers' market nutrition program.

SEC. 4403. NUTRITION INFORMATION AND AWARENESS PILOT PROGRAM.

    (a) Establishment.--The Secretary of Agriculture may 
establish, in not more than 5 States, for a period not to 
exceed 4 years for each participating State, a pilot program to 
increase the domestic consumption of fresh fruits and 
vegetables.
    (b) Purpose.--
            (1) In general.--Subject to paragraph (2), the 
        purpose of the program shall be to provide funds to 
        States solely for the purpose of assisting eligible 
        public and private sector entities with cost-share 
        assistance to carry out demonstration projects--
                    (A) to increase fruit and vegetable 
                consumption; and
                    (B) to convey related health promotion 
                messages.
            (2) Limitation.--Funds made available to a State 
        under the program shall not be used to disparage any 
        agricultural commodity.
    (c) Selection of States.--
            (1) In general.--In selecting States to participate 
        in the program, the Secretary shall take into 
        consideration, with respect to projects and activities 
        proposed to be carried out under the program--
                    (A) experience in carrying out similar 
                projects or activities;
                    (B) innovative approaches; and
                    (C) the ability of the State to promote and 
                track increases in levels of fruit and 
                vegetable consumption.
            (2) Enhancement of existing state programs.--The 
        Secretary may use the pilot program to enhance existing 
        State programs that are consistent with the purpose of 
        the pilot program specified in subsection (b).
    (d) Eligible Public and Private Sector Entities.--
            (1) In general.--A participating State shall 
        establish eligibility criteria under which the State 
        may select public and private sector entities to carry 
        out demonstration projects under the program.
            (2) Limitation.--No funds made available to States 
        under the program shall be provided by a State to any 
        foreign for-profit corporation.
    (e) Federal Share.--The Federal share of the cost of any 
project or activity carried out using funds provided under this 
section shall be 50 percent.
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $10,000,000 for 
each of fiscal years 2002 through 2007.

SEC. 4404. HUNGER FELLOWSHIP PROGRAM.

    (a) Short Title; Findings.--
            (1) Short title.--This section may be cited as the 
        ``Congressional Hunger Fellows Act of 2002''.
            (2) Findings.--The Congress finds as follows:
                    (A) There is a critical need for 
                compassionate individuals who are committed to 
                assisting people who suffer from hunger as well 
                as a need for such individuals to initiate and 
                administer solutions to the hunger problem.
                    (B) Bill Emerson, the distinguished late 
                Representative from the 8th District of 
                Missouri, demonstrated his commitment to 
                solving the problem of hunger in a bipartisan 
                manner, his commitment to public service, and 
                his great affection for the institution and the 
                ideals of the United States Congress.
                    (C) George T. (Mickey) Leland, the 
                distinguished late Representative from the 18th 
                District of Texas, demonstrated his compassion 
                for those in need, his high regard for public 
                service, and his lively exercise of political 
                talents.
                    (D) The special concern that Mr. Emerson 
                and Mr. Leland demonstrated during their lives 
                for the hungry and poor was an inspiration for 
                others to work toward the goals of equality and 
                justice for all.
                    (E) These two outstanding leaders 
                maintained a special bond of friendship 
                regardless of political affiliation and worked 
                together to encourage future leaders to 
                recognize and provide service to others, and 
                therefore it is especially appropriate to honor 
                the memory of Mr. Emerson and Mr. Leland by 
                creating a fellowship program to develop and 
                train the future leaders of the United States 
                to pursue careers in humanitarian service.
    (b) Establishment.--There is established as an independent 
entity of the legislative branch of the United States 
Government the Congressional Hunger Fellows Program 
(hereinafter in this section referred to as the ``Program'').
    (c) Board of Trustees.--
            (1) In general.--The Program shall be subject to 
        the supervision and direction of a Board of Trustees.
            (2) Members of the board of trustees.--
                    (A) Appointment.--The Board shall be 
                composed of 6 voting members appointed under 
                clause (i) and one nonvoting ex officio member 
                designated in clause (ii) as follows:
                            (i) Voting members.--(I) The 
                        Speaker of the House of Representatives 
                        shall appoint two members.
                            (II) The minority leader of the 
                        House of Representatives shall appoint 
                        one member.
                            (III) The majority leader of the 
                        Senate shall appoint two members.
                            (IV) The minority leader of the 
                        Senate shall appoint one member.
                            (ii) Nonvoting member.--The 
                        Executive Director of the program shall 
                        serve as a nonvoting ex officio member 
                        of the Board.
                    (B) Terms.--Members of the Board shall 
                serve a term of 4 years.
                    (C) Vacancy.--
                            (i) Authority of board.--A vacancy 
                        in the membership of the Board does not 
                        affect the power of the remaining 
                        members to carry out this section.
                            (ii) Appointment of successors.--A 
                        vacancy in the membership of the Board 
                        shall be filled in the same manner in 
                        which the original appointment was 
                        made.
                            (iii) Incomplete term.--If a member 
                        of the Board does not serve the full 
                        term applicable to the member, the 
                        individual appointed to fill the 
                        resulting vacancy shall be appointed 
                        for the remainder of the term of the 
                        predecessor of the individual.
                    (D) Chairperson.--As the first order of 
                business of the first meeting of the Board, the 
                members shall elect a Chairperson.
                    (E) Compensation.--
                            (i) In general.--Subject to clause 
                        (ii), members of the Board may not 
                        receive compensation for service on the 
                        Board.
                            (ii) Travel.--Members of the Board 
                        may be reimbursed for travel, 
                        subsistence, and other necessary 
                        expenses incurred in carrying out the 
                        duties of the program.
            (3) Duties.--
                    (A) Bylaws.--
                            (i) Establishment.--The Board shall 
                        establish such bylaws and other 
                        regulations as may be appropriate to 
                        enable the Board to carry out this 
                        section, including the duties described 
                        in this paragraph.
                            (ii) Contents.--Such bylaws and 
                        other regulations shall include 
                        provisions--
                                    (I) for appropriate fiscal 
                                control, funds accountability, 
                                and operating principles;
                                    (II) to prevent any 
                                conflict of interest, or the 
                                appearance of any conflict of 
                                interest, in the procurement 
                                and employment actions taken by 
                                the Board or by any officer or 
                                employee of the Board and in 
                                the selection and placement of 
                                individuals in the fellowships 
                                developed under the program;
                                    (III) for the resolution of 
                                a tie vote of the members of 
                                the Board; and
                                    (IV) for authorization of 
                                travel for members of the 
                                Board.
                            (iii) Transmittal to congress.--Not 
                        later than 90 days after the date of 
                        the first meeting of the Board, the 
                        Chairperson of the Board shall transmit 
                        to the appropriate congressional 
                        committees a copy of such bylaws.
                    (B) Budget.--For each fiscal year the 
                program is in operation, the Board shall 
                determine a budget for the program for that 
                fiscal year. All spending by the program shall 
                be pursuant to such budget unless a change is 
                approved by the Board.
                    (C) Process for selection and placement of 
                fellows.--The Board shall review and approve 
                the process established by the Executive 
                Director for the selection and placement of 
                individuals in the fellowships developed under 
                the program.
                    (D) Allocation of funds to fellowships.--
                The Board of Trustees shall determine the 
                priority of the programs to be carried out 
                under this section and the amount of funds to 
                be allocated for the Emerson and Leland 
                fellowships.
    (d) Purposes; Authority of Program.--
            (1) Purposes.--The purposes of the program are--
                    (A) to encourage future leaders of the 
                United States to pursue careers in humanitarian 
                service, to recognize the needs of people who 
                are hungry and poor, and to provide assistance 
                and compassion for those in need;
                    (B) to increase awareness of the importance 
                of public service; and
                    (C) to provide training and development 
                opportunities for such leaders through 
                placement in programs operated by appropriate 
                organizations or entities.
            (2) Authority.--The program is authorized to 
        develop such fellowships to carry out the purposes of 
        this section, including the fellowships described in 
        paragraph (3).
            (3) Fellowships.--
                    (A) In general.--The program shall 
                establish and carry out the Bill Emerson Hunger 
                Fellowship and the Mickey Leland Hunger 
                Fellowship.
                    (B) Curriculum.--
                            (i) In general.--The fellowships 
                        established under subparagraph (A) 
                        shall provide experience and training 
                        to develop the skills and understanding 
                        necessary to improve the humanitarian 
                        conditions and the lives of individuals 
                        who suffer from hunger, including--
                                    (I) training in direct 
                                service to the hungry in 
                                conjunction with community-
                                based organizations through a 
                                program of field placement; and
                                    (II) experience in policy 
                                development through placement 
                                in a governmental entity or 
                                nonprofit organization.
                            (ii) Focus of bill emerson hunger 
                        fellowship.--The Bill Emerson Hunger 
                        Fellowship shall address hunger and 
                        other humanitarian needs in the United 
                        States.
                            (iii) Focus of mickey leland hunger 
                        fellowship.--The Mickey Leland Hunger 
                        Fellowship shall address international 
                        hunger and other humanitarian needs.
                            (iv) Workplan.--To carry out clause 
                        (i) and to assist in the evaluation of 
                        the fellowships under paragraph (4), 
                        the program shall, for each fellow, 
                        approve a work plan that identifies the 
                        target objectives for the fellow in the 
                        fellowship, including specific duties 
                        and responsibilities related to those 
                        objectives.
                    (C) Period of fellowship.--
                            (i) Emerson fellow.--A Bill Emerson 
                        Hunger Fellowship awarded under this 
                        paragraph shall be for no more than 1 
                        year.
                            (ii) Leland fellow.--A Mickey 
                        Leland Hunger Fellowship awarded under 
                        this paragraph shall be for no more 
                        than 2 years. Not less than 1 year of 
                        the fellowship shall be dedicated to 
                        fulfilling the requirement of 
                        subparagraph (B)(i)(I).
                    (D) Selection of fellows.--
                            (i) In general.--A fellowship shall 
                        be awarded pursuant to a nationwide 
                        competition established by the program.
                            (ii) Qualification.--A successful 
                        applicant shall be an individual who 
                        has demonstrated--
                                    (I) an intent to pursue a 
                                career in humanitarian service 
                                and outstanding potential for 
                                such a career;
                                    (II) leadership potential 
                                or actual leadership 
                                experience;
                                    (III) diverse life 
                                experience;
                                    (IV) proficient writing and 
                                speaking skills;
                                    (V) an ability to live in 
                                poor or diverse communities; 
                                and
                                    (VI) such other attributes 
                                as determined to be appropriate 
                                by the Board.
                            (iii) Amount of award.--
                                    (I) In general.--Each 
                                individual awarded a fellowship 
                                under this paragraph shall 
                                receive a living allowance and, 
                                subject to subclause (II), an 
                                end-of-service award as 
                                determined by the program.
                                    (II) Requirement for 
                                successful completion of 
                                fellowship.--Each individual 
                                awarded a fellowship under this 
                                paragraph shall be entitled to 
                                receive an end-of-service award 
                                at an appropriate rate for each 
                                month of satisfactory service 
                                as determined by the Executive 
                                Director.
                            (iv) Recognition of fellowship 
                        award.--
                                    (I) Emerson fellow.--An 
                                individual awarded a fellowship 
                                from the Bill Emerson Hunger 
                                Fellowship shall be known as an 
                                ``Emerson Fellow''.
                                    (II) Leland fellow.--An 
                                individual awarded a fellowship 
                                from the Mickey Leland Hunger 
                                Fellowship shall be known as a 
                                ``Leland Fellow''.
            (4) Evaluation.--The program shall conduct periodic 
        evaluations of the Bill Emerson and Mickey Leland 
        Hunger Fellowships. Such evaluations shall include the 
        following:
                    (A) An assessment of the successful 
                completion of the work plan of the fellow.
                    (B) An assessment of the impact of the 
                fellowship on the fellows.
                    (C) An assessment of the accomplishment of 
                the purposes of the program.
                    (D) An assessment of the impact of the 
                fellow on the community.
    (e) Trust Fund.--
            (1) Establishment.--There is established the 
        Congressional Hunger Fellows Trust Fund (hereinafter in 
        this section referred to as the ``Fund'') in the 
        Treasury of the United States, consisting of amounts 
        appropriated to the Fund under subsection (i), amounts 
        credited to it under paragraph (3), and amounts 
        received under subsection (g)(3)(A).
            (2) Investment of funds.--The Secretary of the 
        Treasury shall invest the full amount of the Fund. Each 
        investment shall be made in an interest bearing 
        obligation of the United States or an obligation 
        guaranteed as to principal and interest by the United 
        States that, as determined by the Secretary in 
        consultation with the Board, has a maturity suitable 
        for the Fund.
            (3) Return on investment.--Except as provided in 
        subsection (f)(2), the Secretary of the Treasury shall 
        credit to the Fund the interest on, and the proceeds 
        from the sale or redemption of, obligations held in the 
        Fund.
    (f) Expenditures; Audits.--
            (1) In general.--The Secretary of the Treasury 
        shall transfer to the program from the amounts 
        described in subsection (e)(3) and subsection (g)(3)(A) 
        such sums as the Board determines are necessary to 
        enable the program to carry out the provisions of this 
        section.
            (2) Limitation.--The Secretary may not transfer to 
        the program the amounts appropriated to the Fund under 
        subsection (i).
            (3) Use of funds.--Funds transferred to the program 
        under paragraph (1) shall be used for the following 
        purposes:
                    (A) Stipends for fellows.--To provide for a 
                living allowance for the fellows.
                    (B) Travel of fellows.--To defray the costs 
                of transportation of the fellows to the 
                fellowship placement sites.
                    (C) Insurance.--To defray the costs of 
                appropriate insurance of the fellows, the 
                program, and the Board.
                    (D) Training of fellows.--To defray the 
                costs of preservice and midservice education 
                and training of fellows.
                    (E) Support staff.--Staff described in 
                subsection (g).
                    (F) Awards.--End-of-service awards under 
                subsection (d)(3)(D)(iii)(II).
                    (G) Additional approved uses.--For such 
                other purposes that the Board determines 
                appropriate to carry out the program.
            (4) Audit by gao.--
                    (A) In general.--The Comptroller General of 
                the United States shall conduct an annual audit 
                of the accounts of the program.
                    (B) Books.--The program shall make 
                available to the Comptroller General all books, 
                accounts, financial records (including records 
                of salaries of the Executive Director and other 
                personnel), reports, files, and all other 
                papers, things, or property belonging to or in 
                use by the program and necessary to facilitate 
                such audit.
                    (C) Report to congress.--The Comptroller 
                General shall submit a copy of the results of 
                each such audit to the appropriate 
                congressional committees.
    (g) Staff; Powers of Program.--
            (1) Executive director.--
                    (A) In general.--The Board shall appoint an 
                Executive Director of the program who shall 
                administer the program. The Executive Director 
                shall carry out such other functions consistent 
                with the provisions of this section as the 
                Board shall prescribe.
                    (B) Restriction.--The Executive Director 
                may not serve as Chairperson of the Board.
                    (C) Compensation.--The Executive Director 
                shall be paid at a rate not to exceed the rate 
                of basic pay payable for level V of the 
                Executive Schedule under section 5316 of title 
                5, United States Code.
            (2) Staff.--
                    (A) In general.--With the approval of a 
                majority of the Board, the Executive Director 
                may appoint and fix the pay of additional 
                personnel as the Executive Director considers 
                necessary and appropriate to carry out the 
                functions of the provisions of this section.
                    (B) Compensation.--An individual appointed 
                under subparagraph (A) shall be paid at a rate 
                not to exceed the rate of basic pay payable for 
                level GS-15 of the General Schedule.
            (3) Powers.--In order to carry out the provisions 
        of this section, the program may perform the following 
        functions:
                    (A) Gifts.--The program may solicit, 
                accept, use, and dispose of gifts, bequests, or 
                devises of services or property, both real and 
                personal, for the purpose of aiding or 
                facilitating the work of the program. Gifts, 
                bequests, or devises of money and proceeds from 
                sales of other property received as gifts, 
                bequests, or devises shall be deposited in the 
                Fund and shall be available for disbursement 
                upon order of the Board.
                    (B) Experts and consultants.--The program 
                may procure temporary and intermittent services 
                under section 3109 of title 5, United States 
                Code, but at rates for individuals not to 
                exceed the daily equivalent of the maximum 
                annual rate of basic pay payable for GS-15 of 
                the General Schedule.
                    (C) Contract authority.--The program may 
                contract, with the approval of a majority of 
                the members of the Board, with and compensate 
                Government and private agencies or persons 
                without regard to section 3709 of the Revised 
                Statutes (41 U.S.C. 5).
                    (D) Other necessary expenditures.--The 
                program shall make such other expenditures 
                which the program considers necessary to carry 
                out the provisions of this section, but 
                excluding project development.
    (h) Report.--Not later than December 31 of each year, the 
Board shall submit to the appropriate congressional committees 
a report on the activities of the program carried out during 
the previous fiscal year, and shall include the following:
            (1) An analysis of the evaluations conducted under 
        subsection (d)(4) (relating to evaluations of the 
        Emerson and Leland fellowships and accomplishment of 
        the program purposes) during that fiscal year.
            (2) A statement of the total amount of funds 
        attributable to gifts received by the program in that 
        fiscal year (as authorized under subsection (g)(3)(A)), 
        and the total amount of such funds that were expended 
        to carry out the program that fiscal year.
    (i) Authorization of Appropriations.--There are authorized 
to be appropriated $18,000,000 to carry out the provisions of 
this section.
    (j) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Agriculture and the Committee 
        on International Relations of the House of 
        Representatives; and
            (2) the Committee on Agriculture, Nutrition, and 
        Forestry and the Committee on Foreign Relations of the 
        Senate.

SEC. 4405. GENERAL EFFECTIVE DATE.

    Except as otherwise provided in this title, the amendments 
made by this title take effect on October 1, 2002.

                            TITLE V--CREDIT

                    Subtitle A--Farm Ownership Loans

SEC. 5001. DIRECT LOANS.

    Section 302(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1922(b)(1)) is amended by striking 
``operated'' and inserting ``participated in the business 
operations of''.

SEC. 5002. FINANCING OF BRIDGE LOANS.

    Section 303(a)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1923(a)(1)) is amended--
            (1) in subparagraph (C), by striking ``or'' at the 
        end;
            (2) in subparagraph (D), by striking the period at 
        the end and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(E) refinancing a temporary bridge loan 
                made by a commercial or cooperative lender to a 
                farmer or rancher for the acquisition of land 
                for a farm or ranch, if--
                            ``(i) the Secretary approved an 
                        application for a direct farm ownership 
                        loan to the farmer or rancher for 
                        acquisition of the land; and
                            ``(ii) funds for direct farm 
                        ownership loans under section 346(b) 
                        were not available at the time at which 
                        the application was approved.''.

SEC. 5003. AMOUNT OF GUARANTEE OF LOANS FOR FARM OPERATIONS ON TRIBAL 
                    LANDS.

    Section 309(h) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1929(h)) is amended--
            (1) in paragraph (4), by striking ``paragraphs (5) 
        and (6)'' and inserting ``paragraphs (5), (6), and 
        (7)''; and
            (2) by adding at the end the following:
            ``(7) Amount of guarantee of loans for farm 
        operations on tribal lands.--In the case of an 
        operating loan made to a farmer or rancher whose farm 
        or ranch land is subject to the jurisdiction of an 
        Indian tribe and whose loan is secured by 1 or more 
        security instruments that are subject to the 
        jurisdiction of an Indian tribe, the Secretary shall 
        guarantee 95 percent of the loan.''.

SEC. 5004. GUARANTEE OF LOANS MADE UNDER STATE BEGINNING FARMER OR 
                    RANCHER PROGRAMS.

    Section 309 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1929) is amended by adding at the end the 
following:
    ``(j) Guarantee of Loans Made Under State Beginning Farmer 
or Rancher Programs.--The Secretary may guarantee under this 
title a loan made under a State beginning farmer or rancher 
program, including a loan financed by the net proceeds of a 
qualified small issue agricultural bond for land or property 
described in section 144(a)(12)(B)(ii) of the Internal Revenue 
Code of 1986.''.

SEC. 5005. DOWN PAYMENT LOAN PROGRAM.

    Section 310E of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1935) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``30 
                percent'' and inserting ``40 percent''; and
                    (B) in paragraph (3), by striking ``10 
                years'' and inserting ``15 years''; and
            (2) in subsection (c)(3)(B), by striking ``10-
        year'' and inserting ``15-year''.

SEC. 5006. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    Subtitle A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1922 et seq.) is amended by adding at the end the 
following:

``SEC. 310F. BEGINNING FARMER AND RANCHER CONTRACT LAND SALES PROGRAM.

    ``(a) In General.--If the Secretary makes a determination 
that the risk is comparable under subsection (b), the Secretary 
shall carry out a pilot program in not fewer than 5 States, as 
determined by the Secretary, to guarantee up to 5 loans per 
State in each of fiscal years 2003 through 2007 made by a 
private seller of a farm or ranch to a qualified beginning 
farmer or rancher on a contract land sale basis, if the loan 
meets applicable underwriting criteria and a commercial lending 
institution agrees to serve as escrow agent.
    ``(b) Date of Commencement of Program.--Not later than 
October 1, 2002, the Secretary shall make a determination on 
whether guarantees of contract land sales present a risk that 
is comparable with the risk presented in the case of guarantees 
to commercial lenders.''.

                      Subtitle B--Operating Loans

SEC. 5101. DIRECT LOANS.

    Section 311(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter that precedes 
                subparagraph (A), by striking ``paragraph (3)'' 
                and inserting ``paragraphs (3) and (4)''; and
                    (B) in subparagraph (A), by striking ``who 
                has not'' and all that follows through ``5 
                years''; and
            (2) by adding at the end the following:
            ``(4) Waivers.--
                    ``(A) Farm and ranch operations on tribal 
                lands.--The Secretary shall waive the 
                limitation under paragraph (1)(C) or (3) for a 
                direct loan made under this subtitle to a 
                farmer or rancher whose farm or ranch land is 
                subject to the jurisdiction of an Indian tribe 
                and whose loan is secured by 1 or more security 
                instruments that are subject to the 
                jurisdiction of an Indian tribe if the 
                Secretary determines that commercial credit is 
                not generally available for such farm or ranch 
                operations.
                    ``(B) Other farm and ranch operations.--On 
                a case-by-case determination not subject to 
                administrative appeal, the Secretary may grant 
                a borrower a waiver, 1 time only for a period 
                of 2 years, of the limitation under paragraph 
                (1)(C) or (3) for a direct operating loan if 
                the borrower demonstrates to the satisfaction 
                of the Secretary that--
                            ``(i) the borrower has a viable 
                        farm or ranch operation;
                            ``(ii) the borrower applied for 
                        commercial credit from at least 2 
                        commercial lenders;
                            ``(iii) the borrower was unable to 
                        obtain a commercial loan (including a 
                        loan guaranteed by the Secretary); and
                            ``(iv) the borrower successfully 
                        has completed, or will complete within 
                        1 year, borrower training under section 
                        359 (from which requirement the 
                        Secretary shall not grant a waiver 
                        under section 359(f)).''.

SEC. 5102. SUSPENSION OF LIMITATION ON PERIOD FOR WHICH BORROWERS ARE 
                    ELIGIBLE FOR GUARANTEED ASSISTANCE.

    During the period beginning January 1, 2002, and ending 
December 31, 2006, section 319(b) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1949(b)) shall have no force or 
effect.

                      Subtitle C--Emergency Loans

SEC. 5201. EMERGENCY LOANS IN RESPONSE TO AN EMERGENCY RESULTING FROM 
                    QUARANTINES.

    (a) Loan Authority.--Section 321(a) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1961(a)) is amended--
            (1) in each of the 1st and 3rd sentences, by 
        striking ``a natural disaster in the United States or 
        by'' and inserting ``a quarantine imposed by the 
        Secretary under the Plant Protection Act or the animal 
        quarantine laws (as defined in section 2509 of the 
        Food, Agriculture, Conservation, and Trade Act of 
        1990), a natural disaster in the United States, or''; 
        and
            (2) in the 4th sentence--
                    (A) by striking ``a natural disaster'' and 
                inserting ``such a quarantine or natural 
                disaster''; and
                    (B) by striking ``by such natural 
                disaster'' and inserting ``by such quarantine 
                or natural disaster''.
    (b) Conforming Amendment.--Section 323 of such Act (7 
U.S.C. 1963) is amended by inserting ``quarantine,'' before 
``natural disaster''.

                 Subtitle D--Administrative Provisions

SEC. 5301. EVALUATIONS OF DIRECT AND GUARANTEED LOAN PROGRAMS.

    (a) Studies.--The Secretary of Agriculture shall conduct 2 
studies of the direct and guaranteed loan progams under 
sections 302 and 311 of the Consolidated Farm and Rural 
Development Act, each of which shall include an examination of 
the number, average principal amount, and delinquency and 
default rates of loans provided or guaranteed during the period 
covered by the study.
    (b) Periods Covered.--
            (1) First study.--One study under subsection (a) 
        shall cover the 1-year period that begins 1 year after 
        the date of the enactment of this section.
            (2) Second study.--One study under subsection (a) 
        shall cover the 1-year period that begins 3 years after 
        such date of enactment.
    (c) Reports to the Congress.--At the end of the period 
covered by each study under this section, the Secretary of 
Agriculture shall submit to the Congress a report that contains 
an evaluation of the results of the study, including an 
analysis of the effectiveness of loan programs referred to in 
subsection (a) in meeting the credit needs of agricultural 
producers in an efficient and fiscally responsible manner.

SEC. 5302. ELIGIBILITY OF TRUSTS AND LIMITED LIABILITY COMPANIES FOR 
                    FARM OWNERSHIP LOANS, FARM OPERATING LOANS, AND 
                    EMERGENCY LOANS.

    (a) In General.--Sections 302(a), 311(a), and 321(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1922(a), 
1941(a), and 1961(a)) are each amended by striking ``and joint 
operations'' each place it appears and inserting ``joint 
operations, trusts, and limited liability companies''.
    (b) Conforming Amendment.--Section 321(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) 
is amended by striking ``or joint operations'' each place it 
appears and inserting ``joint operations, trusts, or limited 
liability companies''.

SEC. 5303. DEBT SETTLEMENT.

    Section 331(b)(4) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1981(b)(4)) is amended--
            (1) by striking ``The Secretary may release'' and 
        inserting ``After consultation with a local or area 
        county committee, the Secretary may release''; and
            (2) by striking ``carried out--'' and all that 
        follows through ``(B) after'' and inserting ``carried 
        out after''.

SEC. 5304. TEMPORARY AUTHORITY TO ENTER INTO CONTRACTS; PRIVATE 
                    COLLECTION AGENCIES.

    (a) In General.--Section 331 of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1981) is amended by striking 
subsections (d) and (e).
    (b) Application.--The amendment made by subsection (a) 
shall not apply to a contract entered into before the effective 
date of this Act.

SEC. 5305. INTEREST RATE OPTIONS FOR LOANS IN SERVICING.

    Section 331B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981b) is amended--
            (1) by striking ``lower of (1) the'' and inserting 
        the following: ``lowest of--
            ``(1) the''; and
            (2) by striking ``original loan or (2) the'' and 
        inserting the following: ``original loan;
            ``(2) the rate being charged by the Secretary for 
        loans, other than guaranteed loans, of the same type at 
        the time at which the borrower applies for a deferral, 
        consolidation, rescheduling, or reamortization; or
            ``(3) the''.

SEC. 5306. ELIMINATION OF REQUIREMENT THAT SECRETARY REQUIRE COUNTY 
                    COMMITTEES TO CERTIFY IN WRITING THAT CERTAIN LOAN 
                    REVIEWS HAVE BEEN CONDUCTED.

    Section 333(2) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983(2)) is amended to read as 
follows:
            ``(2) except with respect to a loan under section 
        306, 310B, or 314--
                    ``(A) an annual review of the credit 
                history and business operation of the borrower; 
                and
                    ``(B) an annual review of the continued 
                eligibility of the borrower for the loan;''.

SEC. 5307. SIMPLIFIED LOAN GUARANTEE APPLICATION AVAILABLE FOR LOANS OF 
                    GREATER AMOUNTS.

    Section 333A(g)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1983a(g)(1)) is amended by striking 
``$50,000'' and inserting ``$125,000''.

SEC. 5308. INVENTORY PROPERTY.

    Section 335(c) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1985(c)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) in clause (i), by striking ``75 
                        days'' and inserting ``135 days''; and
                            (ii) by adding at the end the 
                        following:
                            ``(iv) Combining and dividing of 
                        property.--To the maximum extent 
                        practicable, the Secretary shall 
                        maximize the opportunity for beginning 
                        farmers and ranchers to purchase real 
                        property acquired by the Secretary 
                        under this title by combining or 
                        dividing inventory parcels of the 
                        property in such manner as the 
                        Secretary determines to be 
                        appropriate.''; and
                    (B) in subparagraph (C)--
                            (i) by striking ``75 days'' and 
                        inserting ``135 days''; and
                            (ii) by striking ``75-day period'' 
                        and inserting ``135-day period''; and
            (2) by striking paragraph (2) and inserting the 
        following:
            ``(2) Previous lease.--In the case of real property 
        acquired before April 4, 1996, that the Secretary 
        leased before April 4, 1996, not later than 60 days 
        after the lease expires, the Secretary shall offer to 
        sell the property in accordance with paragraph (1).''.

SEC. 5309. ADMINISTRATION OF CERTIFIED LENDERS AND PREFERRED CERTIFIED 
                    LENDERS PROGRAMS.

    Section 339 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1989) is amended by adding at the end the 
following:
    ``(e) Administration of Certified Lenders and Preferred 
Certified Lenders Programs.--The Secretary may administer the 
loan guarantee programs under subsections (c) and (d) through 
central offices established in States or in multi-State 
areas.''.

SEC. 5310. DEFINITIONS.

    (a) Qualified Beginning Farmer or Rancher.--Section 
343(a)(11)(F) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1991(a)(11)(F)) is amended by striking ``25 
percent'' and inserting ``30 percent''.
    (b) Debt Forgiveness.--Section 343(a)(12)(B) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 
1991(a)(12)(B)) is amended to read as follows:
                    ``(B) Exceptions.--The term `debt 
                forgiveness' does not include--
                            ``(i) consolidation, rescheduling, 
                        reamortization, or deferral of a loan; 
                        or
                            ``(ii) any write-down provided as 
                        part of a resolution of a 
                        discrimination complaint against the 
                        Secretary.''.

SEC. 5311. LOAN AUTHORIZATION LEVELS.

    Section 346(b)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1994(b)(1)) is amended to read as 
follows:
            ``(1) In general.--The Secretary may make or 
        guarantee loans under subtitles A and B from the 
        Agricultural Credit Insurance Fund provided for in 
        section 309 for not more than $3,796,000,000 for each 
        of fiscal years 2003 through 2007, of which, for each 
        fiscal year--
                    ``(A) $770,000,000 shall be for direct 
                loans, of which--
                            ``(i) $205,000,000 shall be for 
                        farm ownership loans under subtitle A; 
                        and
                            ``(ii) $565,000,000 shall be for 
                        operating loans under subtitle B; and
                    ``(B) $3,026,000,000 shall be for 
                guaranteed loans, of which--
                            ``(i) $1,000,000,000 shall be for 
                        guarantees of farm ownership loans 
                        under subtitle A; and
                            ``(ii) $2,026,000,000 shall be for 
                        guarantees of operating loans under 
                        subtitle B.''.

SEC. 5312. RESERVATION OF FUNDS FOR DIRECT OPERATING LOANS FOR 
                    BEGINNING FARMERS AND RANCHERS.

    Section 346(b)(2)(A)(ii)(III) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 1994(b)(2)(A)(ii)(III)) is 
amended by striking ``2000 through 2002'' and inserting ``2003 
through 2007''.

SEC. 5313. INTEREST RATE REDUCTION PROGRAM.

    Section 351 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1999) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Program.--'' and all that 
                follows through ``The Secretary'' and inserting 
                ``Program.--The Secretary''; and
                    (B) by striking paragraph (2); and
            (2) in subsection (e), by striking paragraph (2) 
        and inserting the following:
            ``(2) Maximum amount of funds.--
                    ``(A) In general.--The total amount of 
                funds used by the Secretary to carry out this 
                section for a fiscal year shall not exceed 
                $750,000,000.
                    ``(B) Beginning farmers and ranchers.--
                            ``(i) In general.--The Secretary 
                        shall reserve not less than 15 percent 
                        of the funds used by the Secretary 
                        under subparagraph (A) to make payments 
                        for guaranteed loans made to beginning 
                        farmers and ranchers.
                            ``(ii) Duration of reservation of 
                        funds.--Funds reserved for beginning 
                        farmers or ranchers under clause (i) 
                        for a fiscal year shall be reserved 
                        only until March 1 of the fiscal 
                        year.''.

SEC. 5314. REAMORTIZATION OF RECAPTURE PAYMENTS.

    Section 353(e)(7) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2001(e)(7)) is amended by adding at 
the end the following:
                    ``(D) Reamortization.--
                            ``(i) In general.--The Secretary 
                        may modify the amortization of a 
                        recapture payment referred to in 
                        subparagraph (A) of this paragraph on 
                        which a payment has become delinquent 
                        by using loan service tools under 
                        section 343(b)(3) if--
                                    ``(I) the default is due to 
                                circumstances beyond the 
                                control of the borrower; and
                                    ``(II) the borrower acted 
                                in good faith (as determined by 
                                the Secretary) in attempting to 
                                repay the recapture amount.
                            ``(ii) Limitations.--
                                    ``(I) Term of 
                                reamortization.--The term of a 
                                reamortization under this 
                                subparagraph may not exceed 25 
                                years from the date of the 
                                original amortization 
                                agreement.
                                    ``(II) No reduction or 
                                principal or unpaid interest 
                                due.--A reamortization of a 
                                recapture payment under this 
                                subparagraph may not provide 
                                for reducing the outstanding 
                                principal or unpaid interest 
                                due on the recapture payment.

SEC. 5315. ALLOCATION OF CERTAIN FUNDS FOR SOCIALLY DISADVANTAGED 
                    FARMERS AND RANCHERS.

    The last sentence of section 355(c)(2) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2003(c)(2)) is amended 
to read as follows: ``Any funds reserved and allocated under 
this paragraph but not used within a State shall, to the extent 
necessary to satisfy pending applications under this title, be 
available for use by socially disadvantaged farmers and 
ranchers in other States, as determined by the Secretary, and 
any remaining funds shall be reallocated within the State.''.

SEC. 5316. WAIVER OF BORROWER TRAINING CERTIFICATION REQUIREMENT.

    Section 359 of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 2006a) is amended by striking subsection (f) and 
inserting the following:
    ``(f) Waivers.--
            ``(1) In general.--The Secretary may waive the 
        requirements of this section for an individual borrower 
        if the Secretary determines that the borrower 
        demonstrates adequate knowledge in areas described in 
        this section.
            ``(2) Criteria.--The Secretary shall establish 
        criteria providing for the application of paragraph (1) 
        consistently in all counties nationwide.''.

SEC. 5317. TIMING OF LOAN ASSESSMENTS.

    Section 360(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006b(a)) is amended by striking 
``After an applicant is determined eligible for assistance 
under this title by the appropriate county committee 
established pursuant to section 332, the'' and inserting 
``The''.

SEC. 5318. ANNUAL REVIEW OF BORROWERS.

    Section 360(d)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006b(d)(1)) is amended by striking 
``biannual'' and inserting ``annual''.

SEC. 5319. LOAN ELIGIBILITY FOR BORROWERS WITH PRIOR DEBT FORGIVENESS.

    Section 373(b)(2)(A) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008h(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``or'';
            (2) in clause (ii), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(iii) received debt forgiveness 
                        on not more than 1 occasion resulting 
                        directly and primarily from a major 
                        disaster or emergency designated by the 
                        President on or after April 4, 1996, 
                        under the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 
                        U.S.C. 5121 et seq.).''.

SEC. 5320. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, COUNTY, 
                    OR AREA COMMITTEES.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981-2008j) is amended by adding at the end the 
following:

``SEC. 376. MAKING AND SERVICING OF LOANS BY PERSONNEL OF STATE, 
                    COUNTY, OR AREA COMMITTEES.

    ``The Secretary shall use personnel of a State, county or 
area committee established under section 8(b)(5) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C 590h(b)(5)) 
to make and service loans under this title to the extent the 
personnel have been trained to do so.''.

SEC. 5321. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA COMMITTEE 
                    FOR LOANS AND LOAN GUARANTEES.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981-2008j) is further amended by adding at the 
end the following:

``SEC. 377. ELIGIBILITY OF EMPLOYEES OF STATE, COUNTY, OR AREA 
                    COMMITTEE FOR LOANS AND LOAN GUARANTEES.

    ``(a) In General.--The Secretary shall not prohibit an 
employee of a State, county or area committee established under 
section 8(b)(5) of the Soil Conservation and Domestic Allotment 
Act (16 U.S.C. 590h(b)(5)) or an employee of the Department of 
Agriculture from obtaining a loan or loan guarantee under 
subtitle A, B or C of this title.
    ``(b) Approvals.--
            ``(1) County or area office.--In the case of a loan 
        application from an employee in a county or area 
        office, the Farm Service Agency State office shall be 
        responsible for reviewing and approving the 
        application.
            ``(2) State office.--In the case of a loan 
        application from an employee of a State office, the 
        Farm Service Agency national office shall be 
        responsible for reviewing and approving the 
        application.''.

                        Subtitle E--Farm Credit

SEC. 5401. REPEAL OF BURDENSOME APPROVAL REQUIREMENTS.

    (a) Banks for Cooperatives.--Section 3.1(11)(B) of the Farm 
Credit Act of 1971 (12 U.S.C. 2122(11)(B)) is amended--
            (1) by striking clause (iii); and
            (2) by redesignating clause (iv) as clause (iii).
    (b) Other System Banks; Associations.--Section 4.18A of the 
Farm Credit Act of 1971 (12 U.S.C. 2206a) is amended--
            (1) in subsection (a)(1), by striking 
        ``3.1(11)(B)(iv)'' and inserting ``3.1(11)(B)(iii)''; 
        and
            (2) by striking subsection (c).

SEC. 5402. BANKS FOR COOPERATIVES.

    Section 3.7(b) of the Farm Credit Act of 1971 (12 U.S.C. 
2128(b)) is amended--
            (1) in paragraphs (1) and (2)(A)(i), by striking 
        ``farm supplies'' each place it appears and inserting 
        ``agricultural supplies''; and
            (2) by adding at the end the following:
            ``(4) Definition of agricultural supply.--In this 
        subsection, the term `agricultural supply' includes--
                    ``(A) a farm supply; and
                    ``(B)(i) agriculture-related processing 
                equipment;
                    ``(ii) agriculture-related machinery; and
                    ``(iii) other capital goods related to the 
                storage or handling of agricultural commodities 
                or products.''.

SEC. 5403. INSURANCE CORPORATION PREMIUMS.

    (a) Reduction in Premiums for GSE-Guaranteed Loans.--
            (1) In general.--Section 5.55 of the Farm Credit 
        Act of 1971 (12 U.S.C. 2277a-4) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``government-
                                guaranteed loans provided for 
                                in subparagraph (C)'' and 
                                inserting ``loans provided for 
                                in subparagraphs (C) and (D)'';
                                    (II) in subparagraph (B), 
                                by striking ``and'' at the end;
                                    (III) in subparagraph (C), 
                                by striking the period at the 
                                end and inserting ``; and''; 
                                and
                                    (IV) by adding at the end 
                                the following:
                    ``(D) the annual average principal 
                outstanding for such year on the guaranteed 
                portions of Government Sponsored Enterprise-
                guaranteed loans made by the bank that are in 
                accrual status, multiplied by a factor, not to 
                exceed 0.0015, determined by the Corporation at 
                the sole discretion of the Corporation.''; and
                            (ii) by adding at the end the 
                        following:
            ``(4) Definition of government sponsored 
        enterprise-guaranteed loan.--In this section and 
        sections 1.12(b) and 5.56(a), the term `Government 
        Sponsored Enterprise-guaranteed loan' means a loan or 
        credit, or portion of a loan or credit, that is 
        guaranteed by an entity that is chartered by Congress 
        to serve a public purpose and the debt obligations of 
        which are not explicitly guaranteed by the United 
        States, including the Federal National Mortgage 
        Association, the Federal Home Loan Mortgage 
        Corporation, the Federal Home Loan Bank System, and the 
        Federal Agricultural Mortgage Corporation, but not 
        including any other institution of the Farm Credit 
        System.''; and
                    (B) in subsection (e)(4)(B), by striking 
                ``government-guaranteed loans described in 
                subsection (a)(1)(C)'' and inserting ``loans 
                described in subparagraph (C) or (D) of 
                subsection (a)(1)''.
            (2) Conforming amendments.--
                    (A) Section 1.12(b) of the Farm Credit Act 
                of 1971 (12 U.S.C. 2020(b)) is amended--
                            (i) in paragraph (1), by inserting 
                        ``and Government Sponsored Enterprise-
                        guaranteed loans (as defined in section 
                        5.55(a)(4)) provided for in paragraph 
                        (4)'' after ``government-guaranteed 
                        loans (as defined in section 
                        5.55(a)(3)) provided for in paragraph 
                        (3)'';
                            (ii) in paragraph (2), by striking 
                        ``and'' at the end;
                            (iii) in paragraph (3), by striking 
                        the period at the end and inserting ``; 
                        and''; and
                            (iv) by adding at the end the 
                        following:
            ``(4) the annual average principal outstanding for 
        such year on the guaranteed portions of Government 
        Sponsored Enterprise-guaranteed loans (as so defined) 
        made by the association, or by the other financing 
        institution and funded by or discounted with the Farm 
        Credit Bank, that are in accrual status, multiplied by 
        a factor, not to exceed 0.0015, determined by the 
        Corporation for the purpose of setting the premium for 
        such guaranteed portions of loans under section 
        5.55(a)(1)(D).''.
                    (B) Section 5.56(a) of the Farm Credit Act 
                of 1971 (12 U.S.C. 2277a-5(a)) is amended--
                            (i) in paragraph (1), by inserting 
                        ``and Government Sponsored Enterprise-
                        guaranteed loans (as defined in section 
                        5.55(a)(4))'' after ``government-
                        guaranteed loans'';
                            (ii) by redesignating paragraphs 
                        (4) and (5) as paragraphs (5) and (6), 
                        respectively; and
                            (iii) by inserting after paragraph 
                        (3) the following:
            ``(4) the annual average principal outstanding on 
        the guaranteed portions of Government Sponsored 
        Enterprise-guaranteed loans (as defined in section 
        5.55(a)(4)) that are in accrual status;''.
    (b) Applicability.--The amendments made by this section 
shall apply with respect to determinations of premiums for 
calendar year 2002 and for any succeeding calendar year, and to 
certified statements with respect to such premiums.

                     Subtitle F--General Provisions

SEC. 5501. TECHNICAL AMENDMENTS.

    (a) Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended by striking 
``Disaster Relief and Emergency Assistance Act'' each place it 
appears and inserting ``Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.)''.
    (b) Section 336(b) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1986(b)) is amended in the second 
sentence by striking ``provided for in section 332 of this 
title''.
    (c) Section 359(c)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2006a(c)(1)) is amended by striking 
``established pursuant to section 332,''.

                      TITLE VI--RURAL DEVELOPMENT

        Subtitle A--Consolidated Farm and Rural Development Act

SEC. 6001. ELIGIBILITY OF RURAL EMPOWERMENT ZONES AND RURAL ENTERPRISE 
                    COMMUNITIES FOR DIRECT AND GUARANTEED LOANS FOR 
                    ESSENTIAL COMMUNITY FACILITIES.

    Section 306(a)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(1)) is amended by inserting 
after the first sentence the following: ``The Secretary may 
also make or insure loans to communities that have been 
designated as rural empowerment zones or rural enterprise 
communities pursuant to part I of subchapter U of chapter 1 of 
the Internal Revenue Code of 1986, or as rural enterprise 
communities pursuant to section 766 of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 1999 (Public Law 105-277; 112 Stat. 2681, 
2681-37), to provide for the installation or improvement of 
essential community facilities including necessary related 
equipment, and to furnish financial assistance or other aid in 
planning projects for such purposes.''.

SEC. 6002. WATER OR WASTE DISPOSAL GRANTS.

    Section 306(a)(2) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(2)) is amended--
            (1) by striking ``(2) The'' and inserting the 
        following:
            ``(2) Water, waste disposal, and wastewater 
        facility grants.--
                    ``(A) Authority.--
                            ``(i) In general.--The'';
            (2) by striking ``aggregating not to exceed 
        $590,000,000 in any fiscal year'';
            (3) by striking ``The amount'' and inserting the 
        following:
                            ``(ii) Amount.--The amount'';
            (4) by striking ``paragraph'' and inserting 
        ``subparagraph'';
            (5) by striking ``The Secretary shall'' and 
        inserting the following:
                            ``(iii) Grant rate.--The Secretary 
                        shall''; and
            (6) by adding at the end the following:
                    ``(B) Revolving funds for financing water 
                and wastewater projects.--
                            ``(i) In general.--The Secretary 
                        may make grants to qualified private, 
                        nonprofit entities to capitalize 
                        revolving funds for the purpose of 
                        providing financing to eligible 
                        entities for--
                                    ``(I) predevelopment costs 
                                associated with proposed water 
                                and wastewater projects or with 
                                existing water and wastewater 
                                systems; and
                                    ``(II) short-term costs 
                                incurred for replacement 
                                equipment, small-scale 
                                extension services, or other 
                                small capital projects that are 
                                not part of the regular 
                                operations and maintenance 
                                activities of existing water 
                                and wastewater systems.
                            ``(ii) Eligible entities.--To be 
                        eligible to obtain financing from a 
                        revolving fund under clause (i), an 
                        eligible entity must be eligible to 
                        obtain a loan, loan guarantee, or grant 
                        under paragraph (1) or this paragraph.
                            ``(iii) Maximum amount of 
                        financing.--The amount of financing 
                        made to an eligible entity under this 
                        subparagraph shall not exceed--
                                    ``(I) $100,000 for costs 
                                described in clause (i)(I); and
                                    ``(II) $100,000 for costs 
                                described in clause (i)(II).
                            ``(iv) Term.--The term of financing 
                        provided to an eligible entity under 
                        this subparagraph shall not exceed 10 
                        years.
                            ``(v) Administration.--The 
                        Secretary shall limit the amount of 
                        grant funds that may be used by a grant 
                        recipient for administrative costs 
                        incurred under this subparagraph.
                            ``(vi) Annual report.--A nonprofit 
                        entity receiving a grant under this 
                        subparagraph shall submit to the 
                        Secretary an annual report that 
                        describes the number and size of 
                        communities served and the type of 
                        financing provided.
                            ``(vii) Authorization of 
                        appropriations.--There are authorized 
                        to be appropriated to carry out this 
                        subparagraph $30,000,000 for each of 
                        fiscal years 2002 through 2007.''.

SEC. 6003. RURAL BUSINESS OPPORTUNITY GRANTS.

    Section 306(a)(11)(D) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(11)(D)) is amended--
            (1) by striking ``$7,500,000'' and inserting 
        ``$15,000,000''; and
            (2) by striking ``2002'' and inserting ``2007''.

SEC. 6004. CHILD DAY CARE FACILITIES.

    Section 306(a)(19) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)(19)) is amended by adding at 
the end the following:
                    ``(C) Reservation of funds for child day 
                care facilities.--
                            ``(i) In general.--For each fiscal 
                        year, not less than 10 percent of the 
                        funds made available to carry out this 
                        paragraph shall be reserved for grants 
                        to pay the Federal share of the cost of 
                        developing and constructing day care 
                        facilities for children in rural areas.
                            ``(ii) Release.--Funds reserved 
                        under clause (i) for a fiscal year 
                        shall be reserved only until April 1 of 
                        the fiscal year.''.

SEC. 6005. RURAL WATER AND WASTEWATER CIRCUIT RIDER PROGRAM.

    Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) is amended by adding at the 
end the following:
            ``(22) Rural water and wastewater circuit rider 
        program.--
                    ``(A) In general.--The Secretary shall 
                establish a national rural water and wastewater 
                circuit rider program that is based on the 
                rural water circuit rider program of the 
                National Rural Water Association that (as of 
                the date of enactment of this paragraph) 
                receives funding from the Secretary, acting 
                through the Rural Utilities Service.
                    ``(B) Relationship to existing program.--
                The program established under subparagraph (A) 
                shall not affect the authority of the Secretary 
                to carry out the circuit rider program for 
                which funds are made available under the 
                heading ``rural community advancement program'' 
                in title III of the Agriculture, Rural 
                Development, Food and Drug Administration, and 
                Related Agencies Appropriations Act, 2002 (115 
                Stat. 719).
                    ``(C) Authorization of appropriations.--
                There is authorized to be appropriated to carry 
                out this paragraph $15,000,000 for fiscal year 
                2003 and each fiscal year thereafter.''.

SEC. 6006. MULTIJURISDICTIONAL REGIONAL PLANNING ORGANIZATIONS.

    Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) (as amended by section 6005) 
is amended by adding at the end the following:
            ``(23) Multijurisdictional regional planning 
        organizations.--
                    ``(A) Grants.--The Secretary shall provide 
                grants to multijurisdictional regional planning 
                and development organizations to pay the 
                Federal share of the cost of providing 
                assistance to local governments to improve the 
                infrastructure, services, and business 
                development capabilities of local governments 
                and local economic development organizations.
                    ``(B) Priority.--In determining which 
                organizations will receive a grant under this 
                paragraph, the Secretary shall give priority to 
                an organization that--
                            ``(i) serves a rural area that, 
                        during the most recent 5-year period--
                                    ``(I) had a net out-
                                migration of inhabitants, or 
                                other population loss, from the 
                                rural area that equals or 
                                exceeds 5 percent of the 
                                population of the rural area; 
                                or
                                    ``(II) had a median 
                                household income that is less 
                                than the nonmetropolitan median 
                                household income of the 
                                applicable State; and
                            ``(ii) has a history of providing 
                        substantive assistance to local 
                        governments and economic development 
                        organizations.
                    ``(C) Federal share.--A grant provided 
                under this paragraph shall be for not more than 
                75 percent of the cost of providing assistance 
                described in subparagraph (A).
                    ``(D) Maximum amount of grants.--The amount 
                of a grant provided to an organization under 
                this paragraph shall not exceed $100,000.
                    ``(E) Authorization of appropriations.--
                There is authorized to be appropriated to carry 
                out this paragraph $30,000,000 for each of 
                fiscal years 2003 through 2007.''.

SEC. 6007. LOAN GUARANTEES FOR CERTAIN RURAL DEVELOPMENT LOANS.

    (a) Loan Guarantees for Water, Wastewater, and Essential 
Community Facilities Loans.--Section 306(a) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1925(a)) (as amended 
by section 6006) is amended by adding at the end the following:
            ``(24) Loan guarantees for water, wastewater, and 
        essential community facilities loans.--
                    ``(A) In general.--The Secretary may 
                guarantee a loan made to finance a community 
                facility or water or waste facility project in 
                a rural area, including a loan financed by the 
                net proceeds of a bond described in section 
                142(a) of the Internal Revenue Code of 1986.
                    ``(B) Requirements.--To be eligible for a 
                loan guarantee under subparagraph (A), an 
                individual or entity offering to purchase the 
                loan shall demonstrate to the Secretary that 
                the person has--
                            ``(i) the capabilities and 
                        resources necessary to service the loan 
                        in a manner that ensures the continued 
                        performance of the loan, as determined 
                        by the Secretary; and
                            ``(ii) the ability to generate 
                        capital to provide borrowers of the 
                        loan with the additional credit 
                        necessary to properly service the 
                        loan.''.
    (b) Loan Guarantees for Certain Loans.--Section 310B of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932) is 
amended by adding at the end the following:
    ``(h) Loan Guarantees for Certain Loans.--The Secretary may 
guarantee loans made under subsection (a) to finance the 
issuance of bonds for the projects described in section 
306(a)(24).''.

SEC. 6008. TRIBAL COLLEGE AND UNIVERSITY ESSENTIAL COMMUNITY 
                    FACILITIES.

    Section 306(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926(a)) (as amended by section 
6007(a)) is amended by adding at the end the following:
            ``(25) Tribal college and university essential 
        community facilities.--
                    ``(A) In general.--The Secretary may make 
                grants to tribal colleges and universities (as 
                defined in section 316 of the Higher Education 
                Act of 1965 (20 U.S.C. 1059c)) to provide the 
                Federal share of the cost of developing 
                specific tribal college or university 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 maximum percentage of the 
                        cost of the facility that may be 
                        covered by a grant 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 of the percentages of the cost 
                        covered by a grant made under this 
                        paragraph that provides higher 
                        percentages for facilities in 
                        communities that have lower community 
                        population and income levels, as 
                        determined by the Secretary.
                    ``(C) Authorization of appropriations.--
                There is authorized to be appropriated to carry 
                out this paragraph $10,000,000 for each of 
                fiscal years 2003 through 2007.''.

SEC. 6009. EMERGENCY AND IMMINENT COMMUNITY WATER ASSISTANCE GRANT 
                    PROGRAM.

    Section 306A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926a) is amended--
            (1) in the section heading, by inserting ``and 
        imminent'' after ``emergency'';
            (2) in subsection (a)--
                    (A) in paragraph (1), by inserting ``, or 
                when such a decline is imminent'' before the 
                semicolon at the end; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by 
                        striking ``acute'' and inserting 
                        ``acute, or imminent,''; and
                            (ii) in subparagraph (B), by 
                        striking ``decline'' and inserting 
                        ``decline, or imminent decline,'';
            (3) in subsection (c)(2), by striking ``occurred'' 
        and inserting ``occurred, or will occur,'';
            (4) in subsection (d), by striking paragraph (1) 
        and inserting the following:
            ``(1) In general.--Grants made under this section 
        may be used--
                    ``(A) for waterline extensions from 
                existing systems, laying of new waterlines, 
                repairs, significant maintenance, digging of 
                new wells, equipment replacement, and hook and 
                tap fees;
                    ``(B) for any other appropriate purpose 
                associated with developing sources of, 
                treating, storing, or distributing water;
                    ``(C) to assist communities in complying 
                with the requirements of the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.) 
                or the Safe Drinking Water Act (42 U.S.C. 300f 
                et seq.); and
                    ``(D) to provide potable water to 
                communities through other means.'';
            (5) in subsection (f)(2), by striking ``$75,000'' 
        and inserting ``$150,000'';
            (6) in subsection (h)--
                    (A) in the second sentence of paragraph 
                (1), by striking ``decline'' and inserting 
                ``decline, or imminent decline,''; and
                    (B) by striking paragraph (2) and inserting 
                the following:
            ``(2) Timing of review of applications.--
                    ``(A) Simplified application.--The 
                application process developed by the Secretary 
                under paragraph (1) shall include a simplified 
                application form that will permit expedited 
                consideration of an application for a grant 
                filed under this section.
                    ``(B) Priority review.--In processing 
                applications for any water or waste grant or 
                loan authorized under this title, the Secretary 
                shall afford priority processing to an 
                application for a grant under this section to 
                the extent funds will be available for an award 
                on the application at the conclusion of 
                priority processing.
                    ``(C) Timing.--The Secretary shall, to the 
                maximum extent practicable, review and act on 
                an application under this section within 60 
                days after the date on which the application is 
                submitted to the Secretary.''; and
            (7) by striking subsection (i) and inserting the 
        following:
    ``(i) Funding.--
            ``(1) Reservation.--
                    ``(A) In general.--For each fiscal year, 
                not less than 3 nor more than 5 percent of the 
                total amount made available to carry out 
                section 306(a)(2) for the fiscal year shall be 
                reserved for grants under this section.
                    ``(B) Release.--Funds reserved under 
                subparagraph (A) for a fiscal year shall be 
                reserved only until July 1 of the fiscal year.
            ``(2) Authorization of appropriations.--In addition 
        to funds made available under paragraph (1), there is 
        authorized to be appropriated to carry out this section 
        $35,000,000 for each of fiscal years 2003 through 
        2007.''.

SEC. 6010. WATER AND WASTE FACILITY GRANTS FOR NATIVE AMERICAN TRIBES.

    Section 306C of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1926c) is amended by striking subsection (e) and 
inserting the following:
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there 
        are authorized to be appropriated--
                    ``(A) for grants under this section, 
                $30,000,000 for each fiscal year;
                    ``(B) for loans under this section, 
                $30,000,000 for each fiscal year; and
                    ``(C) in addition to grants provided under 
                subparagraph (A), for grants under this section 
                to benefit Indian tribes (as defined in section 
                4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b)), 
                $20,000,000 for each fiscal year.
            ``(2) Exception.--An entity eligible to receive 
        funding through a grant made under section 306D shall 
        not be eligible for a grant from funds made available 
        under paragraph (1)(C).''.

SEC. 6011. GRANTS FOR WATER SYSTEMS FOR RURAL AND NATIVE VILLAGES IN 
                    ALASKA.

    Section 306D(d)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1926d(d)(1)) is amended by striking 
``and 2002'' and inserting ``through 2007''.

SEC. 6012. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                    CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                    INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN 
                    RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE 
                    INCOMES.

    (a) In General.--The Consolidated Farm and Rural 
Development Act is amended by inserting after section 306D (7 
U.S.C. 1926d) the following:

``SEC. 306E. GRANTS TO NONPROFIT ORGANIZATIONS TO FINANCE THE 
                    CONSTRUCTION, REFURBISHING, AND SERVICING OF 
                    INDIVIDUALLY-OWNED HOUSEHOLD WATER WELL SYSTEMS IN 
                    RURAL AREAS FOR INDIVIDUALS WITH LOW OR MODERATE 
                    INCOMES.

    ``(a) Definition of Eligible Individual.--In this section, 
the term `eligible individual' means an individual who is a 
member of a household the members of which have a combined 
income (for the most recent 12-month period for which the 
information is available) that is not more than 100 percent of 
the median nonmetropolitan household income for the State or 
territory in which the individual resides, according to the 
most recent decennial census of the United States.
    ``(b) Grants.--
            ``(1) In general.--The Secretary may make grants to 
        private nonprofit organizations for the purpose of 
        providing loans to eligible individuals for the 
        construction, refurbishing, and servicing of individual 
        household water well systems in rural areas that are or 
        will be owned by the eligible individuals.
            ``(2) Terms of loans.--A loan made with grant funds 
        under this section--
                    ``(A) shall have an interest rate of 1 
                percent;
                    ``(B) shall have a term not to exceed 20 
                years; and
                    ``(C) shall not exceed $8,000 for each 
                water well system described in paragraph (1).
            ``(3) Administrative expenses.--A recipient of a 
        grant made under this section may use grant funds to 
        pay administrative expenses associated with providing 
        the assistance described in paragraph (1), as 
        determined by the Secretary.
    ``(c) Priority in Awarding Grants.--In awarding grants 
under this section, the Secretary shall give priority to an 
applicant that has substantial expertise and experience in 
promoting the safe and productive use of individually-owned 
household water well systems and ground water.
    ``(d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $10,000,000 for 
each of fiscal years 2003 through 2007.''.
    (b) Effective Date.--The amendment made by subsection (a) 
takes effect on October 1, 2002.

SEC. 6013. LOANS AND LOAN GUARANTEES FOR RENEWABLE ENERGY SYSTEMS.

    Section 310B(a)(3) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(a)(3)) is amended by inserting 
``and other renewable energy systems (including wind energy 
systems and anaerobic digestors for the purpose of energy 
generation)'' after ``solar energy systems''.

SEC. 6014. RURAL BUSINESS ENTERPRISE GRANTS.

    Section 310B(c)(1) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(c)(1)) is amended--
            (1) by striking ``(1) In General.--The Secretary'' 
        and inserting the following:
            ``(1) Grants.--
                    ``(A) In general.--The Secretary''; and
            (2) by adding at the end the following:
                    ``(B) Small and emerging private business 
                enterprises.--
                            ``(i) In general.--For the purpose 
                        of subparagraph (A), a small and 
                        emerging private business enterprise 
                        shall include (regardless of the number 
                        of employees or operating capital of 
                        the enterprise) an eligible nonprofit 
                        entity, or other tax-exempt 
                        organization, with a principal office 
                        in an area that is located--
                                    ``(I) on land of an 
                                existing or former Native 
                                American reservation; and
                                    ``(II) in a city, town, or 
                                unincorporated area that has a 
                                population of not more than 
                                5,000 inhabitants.
                            ``(ii) Use of grant.--An eligible 
                        nonprofit entity, or other tax exempt 
                        organization, described in clause (i) 
                        may use assistance provided under this 
                        paragraph to create, expand, or operate 
                        value-added processing in an area 
                        described in clause (i) in connection 
                        with production agriculture.
                            ``(iii) Priority.--In making grants 
                        under this paragraph, the Secretary 
                        shall give priority to grants that will 
                        be used to provide assistance to 
                        eligible nonprofit entities and other 
                        tax exempt organizations described in 
                        clause (i).''.

SEC. 6015. RURAL COOPERATIVE DEVELOPMENT GRANTS.

    Section 310B(e) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(e)) is amended--
            (1) in paragraph (5)(F), before the period at the 
        end the following: ``, except that the Secretary shall 
        not require non-Federal financial support in an amount 
        that is greater than 5 percent in the case of a 1994 
        institution (as defined in section 532 of the Equity in 
        Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 
        note; Public Law 103-382))''; and
            (2) in paragraph (9), by striking ``2002'' and 
        inserting ``2007''.

SEC. 6016. GRANTS TO BROADCASTING SYSTEMS.

    Section 310B(f) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1932(f)) is amended by adding at the 
end the following:
            ``(3) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this 
        subsection $5,000,000 for each of fiscal years 2002 
        through 2007.''.

SEC. 6017. BUSINESS AND INDUSTRY LOAN MODIFICATIONS.

    Section 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1932) is amended by striking subsection (g) and 
inserting the following:
    ``(g) Business and Industry Direct and Guaranteed Loans.--
            ``(1) Definition of business and industry loan.--In 
        this subsection, the term `business and industry loan' 
        means a business and industry direct or guaranteed loan 
        that is made or guaranteed by the Secretary under 
        subsection (a)(1).
            ``(2) Loan guarantees for the purchase of 
        cooperative stock.--
                    ``(A) In general.--The Secretary may 
                guarantee a business and industry loan to 
                individual farmers or ranchers for the purpose 
                of purchasing capital stock of a farmer or 
                rancher cooperative established for the purpose 
                of processing an agricultural commodity.
                    ``(B) Processing contracts during initial 
                period.--A cooperative described in 
                subparagraph (A) for which a farmer or rancher 
                receives a guarantee to purchase stock under 
                subparagraph (A) may contract for services to 
                process agricultural commodities, or otherwise 
                process value-added agricultural products, 
                during the 5-year period beginning on the date 
                of the startup of the cooperative in order to 
                provide adequate time for the planning and 
                construction of the processing facility of the 
                cooperative.
                    ``(C) Financial information.--Financial 
                information required by the Secretary from a 
                farmer or rancher as a condition of making a 
                business and industry loan guarantee under this 
                paragraph shall be provided in the manner 
                generally required by commercial agricultural 
                lenders in the area.
            ``(3) Loans to cooperatives.--
                    ``(A) In general.--The Secretary may make 
                or guarantee a business and industry loan to a 
                cooperative organization that is headquartered 
                in a metropolitan area if the loan is used for 
                a project or venture described in subsection 
                (a) that is located in a rural area or a loan 
                guarantee that meets the requirements of 
                paragraph (6).
                    ``(B) Refinancing.--A cooperative 
                organization that is eligible for a business 
                and industry loan shall be eligible to 
                refinance an existing business and industry 
                loan with a lender if--
                            ``(i) the cooperative 
                        organization--
                                    ``(I) is current and 
                                performing with respect to the 
                                existing loan; and
                                    ``(II) is not, and has not 
                                been, in payment default, or 
                                the collateral of which has not 
                                been converted, with respect to 
                                the existing loan; and
                            ``(ii) there is adequate security 
                        or full collateral for the refinanced 
                        loan.
            ``(4) Loan appraisals.--The Secretary may require 
        that any appraisal made in connection with a business 
        and industry loan be conducted by a specialized 
        appraiser that uses standards that are similar to 
        standards used for similar purposes in the private 
        sector, as determined by the Secretary.
            ``(5) Fees.--The Secretary may assess a 1-time fee 
        for any guaranteed business and industry loan in an 
        amount that does not exceed 2 percent of the guaranteed 
        principal portion of the loan.
            ``(6) Loan guarantees in nonrural areas.--
                    ``(A) In general.--The Secretary may 
                guarantee a business and industry loan to a 
                cooperative organization for a facility that is 
                not located in a rural area if--
                            ``(i) the primary purpose of the 
                        loan guarantee is for a facility to 
                        provide value-added processing for 
                        agricultural producers that are located 
                        within 80 miles of the facility;
                            ``(ii) the applicant demonstrates 
                        to the Secretary that the primary 
                        benefit of the loan guarantee will be 
                        to provide employment for residents of 
                        a rural area; and
                            ``(iii) the total amount of 
                        business and industry loans guaranteed 
                        for a fiscal year under this paragraph 
                        does not exceed 10 percent of the 
                        business and industry loans guaranteed 
                        for the fiscal year under subsection 
                        (a)(1).
                    ``(B) Principal amounts.--The principal 
                amount of a business and industry loan 
                guaranteed under this paragraph may not exceed 
                $25,000,000.
            ``(7) Intangible assets.--In determining whether a 
        cooperative organization is eligible for a guaranteed 
        business and industry loan, the Secretary may consider 
        the market value of a properly appraised brand name, 
        patent, or trademark of the cooperative.
            ``(8) Limitations on loan guarantees for 
        cooperative organizations.--
                    ``(A) Principal amount.--
                            ``(i) In general.--Subject to 
                        clause (ii), the principal amount of a 
                        business and industry loan made to a 
                        cooperative organization and guaranteed 
                        under this subsection shall not exceed 
                        $40,000,000.
                            ``(ii) Use.--To be eligible for a 
                        guarantee under this subsection for a 
                        business and industry loan made to a 
                        cooperative organization, the principal 
                        amount of the any such loan in excess 
                        of $25,000,000 shall be used to carry 
                        out a project--
                                    ``(I) in a rural area; and
                                    ``(II) that provides for 
                                the value-added processing of 
                                agricultural commodities.
                    ``(B) Applications.--If a cooperative 
                organization submits an application for a 
                guarantee under this subsection of a business 
                and industry loan with a principal amount that 
                is in excess of $25,000,000, the Secretary--
                            ``(i) shall review and, if 
                        appropriate, approve the application; 
                        and
                            ``(ii) may not delegate the 
                        approval authority.
                    ``(C) Maximum amount.--The total amount of 
                business and industry loans made to cooperative 
                organizations and guaranteed for a fiscal year 
                under this subsection with principal amounts 
                that are in excess of $25,000,000 may not 
                exceed 10 percent of the business and industry 
                loans guaranteed for the fiscal year under 
                subsection (a)(1).''.

SEC. 6018. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
                    PURPOSES.

    Subtitle A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq.) (as amended by section 5006) is 
amended by adding at the end the following:

``SEC. 310G. USE OF RURAL DEVELOPMENT LOANS AND GRANTS FOR OTHER 
                    PURPOSES.

    ``If, after making a loan or a grant described in section 
381E(d), the Secretary determines that the circumstances under 
which the loan or grant was made have sufficiently changed to 
make the project or activity for which the loan or grant was 
made available no longer appropriate, the Secretary may allow 
the loan borrower or grant recipient to use property (real and 
personal) purchased or improved with the loan or grant funds, 
or proceeds from the sale of property (real and personal) 
purchased with such funds, for another project or activity that 
(as determined by the Secretary)--
            ``(1) will be carried out in the same area as the 
        original project or activity;
            ``(2) meets the criteria for a loan or a grant 
        described in section 381E(d); and
            ``(3) satisfies such additional requirements as are 
        established by the Secretary.''.

SEC. 6019. SIMPLIFIED APPLICATION FORMS FOR LOAN GUARANTEES.

    Section 333A of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1983a) (as amended by section 5307) is amended by 
striking subsection (g) and inserting the following:
    ``(g) Simplified Application Forms for Loan Guarantees.--
            ``(1) In general.--The Secretary shall provide to 
        lenders a short, simplified application form for 
        guarantees under this title of--
                    ``(A) farmer program loans the principal 
                amount of which is $125,000 or less; and
                    ``(B) business and industry guaranteed 
                loans under section 310B(a)(1) the principal 
                amount of which is--
                            ``(i) in the case of a loan 
                        guarantee made during fiscal year 2002 
                        or 2003, $400,000 or less; and
                            ``(ii) in the case of a loan 
                        guarantee made during any subsequent 
                        fiscal year--
                                    ``(I) $400,000 or less; or
                                    ``(II) if the Secretary 
                                determines that there is not a 
                                significant increased risk of a 
                                default on the loan, $600,000 
                                or less.
            ``(2) Water and waste disposal grants and loans.--
        The Secretary shall develop an application process that 
        accelerates, to the maximum extent practicable, the 
        processing of applications for water and waste disposal 
        grants or direct or guaranteed loans under paragraph 
        (1) or (2) of section 306(a) the grant award amount or 
        principal loan amount, respectively, of which is 
        $300,000 or less.
            ``(3) Administration.--In developing an application 
        under this subsection, the Secretary shall--
                    ``(A) consult with commercial and 
                cooperative lenders; and
                    ``(B) ensure that--
                            ``(i) the form can be completed 
                        manually or electronically, at the 
                        option of the lender;
                            ``(ii) the form minimizes the 
                        documentation required to accompany the 
                        form;
                            ``(iii) the cost of completing and 
                        processing the form is minimal; and
                            ``(iv) the form can be completed 
                        and processed in an expeditious 
                        manner.''.

SEC. 6020. DEFINITION OF RURAL AND RURAL AREA.

    (a) In General.--Section 343(a) of the Consolidated Farm 
and Rural Development Act (7 U.S.C. 1991(a)) is amended by 
adding at the end the following:
            ``(13) Rural and rural area.--
                    ``(A) In general.--Except as otherwise 
                provided in this paragraph, the terms `rural' 
                and `rural area' mean any area other than--
                            ``(i) a city or town that has a 
                        population of greater than 50,000 
                        inhabitants; and
                            ``(ii) the urbanized area 
                        contiguous and adjacent to such a city 
                        or town.
                    ``(B) Water and waste disposal grants and 
                direct and guaranteed loans.--For the purpose 
                of water and waste disposal grants and direct 
                and guaranteed loans provided under paragraphs 
                (1), (2), and (24) of section 306(a), the terms 
                `rural' and `rural area' mean a city, town, or 
                unincorporated area that has a population of no 
                more than 10,000 inhabitants.
                    ``(C) Community facility loans and 
                grants.--For the purpose of community facility 
                direct and guaranteed loans and grants under 
                paragraphs (1), (19), (20), (21), and (24) of 
                section 306(a), the terms `rural' and `rural 
                area' mean a city, town, or unincorporated area 
                that has a population of not more than 20,000 
                inhabitants.
                    ``(D) Multijurisdictional regional planning 
                organizations; national rural development 
                partnership.--In sections 306(a)(23) and 378, 
                the term `rural area' means--
                            ``(i) all the territory of a State 
                        that is not within the boundary of any 
                        standard metropolitan statistical area; 
                        and
                            ``(ii) all territory within any 
                        standard metropolitan statistical area 
                        within a census tract having a 
                        population density of less than 20 
                        persons per square mile, as determined 
                        by the Secretary according to the most 
                        recent census of the United States as 
                        of any date.
                    ``(E) Rural business investment program.--
                In subtitle H, the term `rural area' means an 
                area that is located--
                            ``(i) outside a standard 
                        metropolitan statistical area; or
                            ``(ii) within a community that has 
                        a population of 50,000 inhabitants or 
                        less.''.
    (b) Conforming Amendments.--
            (1) Section 306(a) of the Consolidated Farm and 
        Rural Development Act (7 U.S.C. 1926(a)) is amended by 
        striking paragraph (7).
            (2) Section 381A of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 2009) is amended--
                    (A) by striking paragraph (1); and
                    (B) by redesignating paragraphs (2) and (3) 
                as paragraphs (1) and (2), respectively.
            (3) Section 735 of the Agriculture, Rural 
        Development, Food and Drug Administration, and Related 
        Agencies Appropriations Act, 1999 (112 Stat. 2681-29) 
        is repealed.

SEC. 6021. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 5321) is 
amended by adding at the end the following:

``SEC. 378. NATIONAL RURAL DEVELOPMENT PARTNERSHIP.

    ``(a) Definitions.--In this section:
            ``(1) Agency with rural responsibilities.--The term 
        `agency with rural responsibilities' means any 
        executive agency (as defined in section 105 of title 5, 
        United States Code) that implements a Federal law, or 
        administers a program, targeted at or having a 
        significant impact on rural areas.
            ``(2) Coordinating committee.--The term 
        `Coordinating Committee' means the National Rural 
        Development Coordinating Committee established by 
        subsection (c).
            ``(3) Partnership.--The term `Partnership' means 
        the National Rural Development Partnership continued by 
        subsection (b).
            ``(4) State rural development council.--The term 
        `State rural development council' means a State rural 
        development council that meets the requirements of 
        subsection (d).
    ``(b) Partnership.--
            ``(1) In general.--The Secretary shall continue the 
        National Rural Development Partnership composed of--
                    ``(A) the Coordinating Committee; and
                    ``(B) State rural development councils.
            ``(2) Purposes.--The purposes of the Partnership 
        are to empower and build the capacity of States and 
        rural communities to design flexible and innovative 
        responses to their own special rural development needs, 
        with local determinations of progress and selection of 
        projects and activities.
            ``(3) Governing panel.--
                    ``(A) In general.--A panel consisting of 
                representatives of the Coordinating Committee 
                and State rural development councils shall be 
                established to lead and coordinate the 
                strategic operation, policies, and practices of 
                the Partnership.
                    ``(B) Annual reports.--In conjunction with 
                the Coordinating Committee and State rural 
                development councils, the panel shall prepare 
                and submit to Congress an annual report on the 
                activities of the Partnership.
            ``(4) Role of federal government.--The role of the 
        Federal Government in the Partnership may be that of a 
        partner and facilitator, with Federal agencies 
        authorized--
                    ``(A) to cooperate with States to implement 
                the Partnership;
                    ``(B) to provide States with the technical 
                and administrative support necessary to plan 
                and implement tailored rural development 
                strategies to meet local needs;
                    ``(C) to ensure that the head of each 
                agency with rural responsibilities designates a 
                senior-level agency official to represent the 
                agency on the Coordinating Committee and 
                directs appropriate field staff to participate 
                fully with the State rural development council 
                within the jurisdiction of the field staff; and
                    ``(D) to enter into cooperative agreements 
                with, and to provide grants and other 
                assistance to, the Coordinating Committee and 
                State rural development councils.
    ``(c) National Rural Development Coordinating Committee.--
            ``(1) Establishment.--The Secretary shall establish 
        a National Rural Development Coordinating Committee 
        within the Department of Agriculture.
            ``(2) Composition.--The Coordinating Committee 
        shall be composed of--
                    ``(A) 1 representative of each agency with 
                rural responsibilities; and
                    ``(B) representatives, approved by the 
                Secretary, of--
                            ``(i) national associations of 
                        State, regional, local, and tribal 
                        governments and intergovernmental and 
                        multijurisdictional agencies and 
                        organizations;
                            ``(ii) national public interest 
                        groups;
                            ``(iii) other national nonprofit 
                        organizations that elect to participate 
                        in the activities of the Coordinating 
                        Committee; and
                            ``(iv) the private sector.
            ``(3) Duties.--The Coordinating Committee shall--
                    ``(A) support the work of the State rural 
                development councils;
                    ``(B) facilitate coordination of rural 
                development policies, programs, and activities 
                among Federal agencies and with those of State, 
                local, and tribal governments, the private 
                sector, and nonprofit organizations;
                    ``(C) review and comment on policies, 
                regulations, and proposed legislation that 
                affect or would affect rural areas and gather 
                and provide related information;
                    ``(D) develop and facilitate strategies to 
                reduce or eliminate administrative and 
                regulatory impediments; and
                    ``(E) require each State rural development 
                council receiving funds under this section to 
                submit an annual report on the use of the 
                funds, including a description of strategic 
                plans, goals, performance measures, and 
                outcomes for the State rural development 
                council of the State.
            ``(4) Federal participation in coordinating 
        committee.--
                    ``(A) In general.--A Federal employee shall 
                fully participate in the governance and 
                operations of the Coordinating Committee, 
                including activities related to grants, 
                contracts, and other agreements, in accordance 
                with this section.
                    ``(B) Conflicts.--Participation by a 
                Federal employee in the Coordinating Committee 
                in accordance with this paragraph shall not 
                constitute a violation of section 205 or 208 of 
                title 18, United States Code.
            ``(5) Administrative support.--The Secretary may 
        provide such administrative support for the 
        Coordinating Committee as the Secretary determines is 
        necessary to carry out the duties of the Coordinating 
        Committee.
            ``(6) Procedures.--The Secretary may prescribe such 
        regulations, bylaws, or other procedures as are 
        necessary for the operation of the Coordinating 
        Committee.
    ``(d) State Rural Development Councils.--
            ``(1) Establishment.--Notwithstanding chapter 63 of 
        title 31, United States Code, each State may elect to 
        participate in the Partnership by entering into an 
        agreement with the Secretary to recognize a State rural 
        development council.
            ``(2) Composition.--A State rural development 
        council shall--
                    ``(A) be composed of representatives of 
                Federal, State, local, and tribal governments, 
                nonprofit organizations, regional 
                organizations, the private sector, and other 
                entities committed to rural advancement; and
                    ``(B) have a nonpartisan and 
                nondiscriminatory membership that--
                            ``(i) is broad and representative 
                        of the economic, social, and political 
                        diversity of the State; and
                            ``(ii) shall be responsible for the 
                        governance and operations of the State 
                        rural development council.
            ``(3) Duties.--A State rural development council 
        shall--
                    ``(A) facilitate collaboration among 
                Federal, State, local, and tribal governments 
                and the private and nonprofit sectors in the 
                planning and implementation of programs and 
                policies that have an impact on rural areas of 
                the State;
                    ``(B) monitor, report, and comment on 
                policies and programs that address, or fail to 
                address, the needs of the rural areas of the 
                State;
                    ``(C) as part of the Partnership, in 
                conjunction with the Coordinating Committee, 
                facilitate the development of strategies to 
                reduce or eliminate conflicting or duplicative 
                administrative or regulatory requirements of 
                Federal, State, local, and tribal governments; 
                and
                    ``(D)(i) provide to the Coordinating 
                Committee an annual plan with goals and 
                performance measures; and
                    ``(ii) submit to the Coordinating Committee 
                an annual report on the progress of the State 
                rural development council in meeting the goals 
                and measures.
            ``(4) Federal participation in state rural 
        development councils.--
                    ``(A) In general.--A State Director for 
                Rural Development of the Department of 
                Agriculture, other employees of the Department, 
                and employees of other Federal agencies with 
                rural responsibilities shall fully participate 
                as voting members in the governance and 
                operations of State rural development councils 
                (including activities related to grants, 
                contracts, and other agreements in accordance 
                with this section) on an equal basis with other 
                members of the State rural development 
                councils.
                    ``(B) Conflicts.--Participation by a 
                Federal employee in a State rural development 
                council in accordance with this paragraph shall 
                not constitute a violation of section 205 or 
                208 of title 18, United States Code.
    ``(e) Administrative Support of the Partnership.--
            ``(1) Detail of employees.--
                    ``(A) In general.--In order to provide 
                experience in intergovernmental collaboration, 
                the head of an agency with rural 
                responsibilities that elects to participate in 
                the Partnership may, and is encouraged to, 
                detail to the Secretary for the support of the 
                Partnership 1 or more employees of the agency 
                with rural responsibilities without 
                reimbursement for a period of up to 1 year.
                    ``(B) Civil service status.--The detail 
                shall be without interruption or loss of civil 
                service status or privilege.
            ``(2) Additional support.--The Secretary may 
        provide for any additional support staff to the 
        Partnership as the Secretary determines to be necessary 
        to carry out the duties of the Partnership.
            ``(3) Intermediaries.--The Secretary may enter into 
        a contract with a qualified intermediary under which 
        the intermediary shall be responsible for providing 
        administrative and technical assistance to a State 
        rural development council, including administering the 
        financial assistance available to the State rural 
        development council.
    ``(f) Matching Requirements for State Rural Development 
Councils.--
            ``(1) In general.--Except as provided in paragraph 
        (2), a State rural development council shall provide 
        matching funds, or in-kind goods or services, to 
        support the activities of the State rural development 
        council in an amount that is not less than 33 percent 
        of the amount of Federal funds received from a Federal 
        agency under subsection (g)(2).
            ``(2) Exceptions to matching requirement for 
        certain federal funds.--Paragraph (1) shall not apply 
        to funds, grants, funds provided under contracts or 
        cooperative agreements, gifts, contributions, or 
        technical assistance received by a State rural 
        development council from a Federal agency that are 
        used--
                    ``(A) to support 1 or more specific program 
                or project activities; or
                    ``(B) to reimburse the State rural 
                development council for services provided to 
                the Federal agency providing the funds, grants, 
                funds provided under contracts or cooperative 
                agreements, gifts, contributions, or technical 
                assistance.
            ``(3) Department's share.--The Secretary shall 
        develop a plan to decrease, over time, the share of the 
        Department of Agriculture of the cost of the core 
        operations of State rural development councils.
    ``(g) Funding.--
            ``(1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this section 
        $10,000,000 for each of fiscal years 2003 through 2007.
            ``(2) Federal agencies.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law limiting the ability of 
                an agency, along with other agencies, to 
                provide funds to the Coordinating Committee or 
                a State rural development council in order to 
                carry out the purposes of this section, a 
                Federal agency may make grants, gifts, or 
                contributions to, provide technical assistance 
                to, or enter into contracts or cooperative 
                agreements with, the Coordinating Committee or 
                a State rural development council.
                    ``(B) Assistance.--Federal agencies are 
                encouraged to use funds made available for 
                programs that have an impact on rural areas to 
                provide assistance to, and enter into contracts 
                with, the Coordinating Committee or a State 
                rural development council, as described in 
                subparagraph (A).
            ``(3) Contributions.--The Coordinating Committee 
        and a State rural development council may accept 
        private contributions.
    ``(h) Termination.--The authority provided under this 
section shall terminate on the date that is 5 years after the 
date of enactment of this section.''.

SEC. 6022. RURAL TELEWORK.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6021) is 
amended by adding at the end the following:

``SEC. 379. RURAL TELEWORK.

    ``(a) Definitions.--In this section:
            ``(1) Eligible organization.--The term `eligible 
        organization' means a nonprofit entity, an educational 
        institution, an Indian tribe (as defined in section 4 
        of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b)), or any other 
        organization, in a rural area (except for the 
        institute), that meets the requirements of this section 
        and such other requirements as are established by the 
        Secretary.
            ``(2) Institute.--The term `institute' means a 
        rural telework institute established using a grant 
        under subsection (b).
            ``(3) Telework.--The term `telework' means the use 
        of telecommunications to perform work functions at a 
        rural work center located outside the place of business 
        of an employer.
    ``(b) Rural Telework Institute.--
            ``(1) In general.--The Secretary shall make 1 or 
        more grants to an eligible organization to pay the 
        Federal share of the cost of establishing and operating 
        a national rural telework institute to carry out 
        projects described in paragraph (2).
            ``(2) Projects.--The institute shall use grant 
        funds received under this subsection to carry out a 5-
        year project--
                    ``(A) to serve as a clearinghouse for 
                telework research and development;
                    ``(B) to conduct outreach to rural 
                communities and rural workers;
                    ``(C) to develop and share best practices 
                in rural telework throughout the United States;
                    ``(D) to develop innovative, market-driven 
                telework projects and joint ventures with the 
                private sector that employ workers in rural 
                areas in jobs that promote economic self-
                sufficiency;
                    ``(E) to share information about the design 
                and implementation of telework arrangements;
                    ``(F) to support private sector businesses 
                that are transitioning to telework;
                    ``(G) to support and assist telework 
                projects and individuals at the State and local 
                level; and
                    ``(H) to perform such other functions as 
                the Secretary considers appropriate.
            ``(3) Non-federal share.--
                    ``(A) In general.--As a condition of 
                receiving a grant under this subsection, an 
                eligible organization shall agree to obtain, 
                after the application of the eligible 
                organization has been approved and notice of 
                award has been issued, contributions from non-
                Federal sources that are equal to--
                            ``(i) during each of the first, 
                        second, and third years of a project, 
                        30 percent of the amount of the grant; 
                        and
                            ``(ii) during each of the fourth 
                        and fifth years of the project, 50 
                        percent of the amount of the grant.
                    ``(B) Indian tribes.--Notwithstanding 
                subparagraph (A), an Indian tribe may use any 
                Federal funds made available to the Indian 
                tribe for self-governance to pay the non-
                Federal contributions required under 
                subparagraph (A).
                    ``(C) Form.--The non-Federal contributions 
                required under subparagraph (A) may be in the 
                form of in-kind contributions, including office 
                equipment, office space, computer software, 
                consultant services, computer networking 
                equipment, and related services.
    ``(c) Telework Grants.--
            ``(1) In general.--Subject to paragraphs (2) 
        through (5), the Secretary shall make grants to 
        eligible organizations to pay the Federal share of the 
        cost of--
                    ``(A) obtaining equipment and facilities to 
                establish or expand telework locations in rural 
                areas; and
                    ``(B) operating telework locations in rural 
                areas.
            ``(2) Applications.--To be eligible to receive a 
        grant under this subsection, an eligible organization 
        shall submit to the Secretary, and receive the approval 
        of the Secretary of, an application for the grant that 
        demonstrates that the eligible organization has 
        adequate resources and capabilities to establish or 
        expand a telework location in a rural area.
            ``(3) Non-federal share.--
                    ``(A) In general.--As a condition of 
                receiving a grant under this subsection, an 
                eligible organization shall agree to obtain, 
                after the application of the eligible 
                organization has been approved and notice of 
                award has been issued, contributions from non-
                Federal sources that are equal to 50 percent of 
                the amount of the grant.
                    ``(B) Indian tribes.--Notwithstanding 
                subparagraph (A), an Indian tribe may use 
                Federal funds made available to the tribe for 
                self-governance to pay the non-Federal 
                contributions required under subparagraph (A).
                    ``(C) Sources.--The non-Federal 
                contributions required under subparagraph (A)--
                            ``(i) may be in the form of in-kind 
                        contributions, including office 
                        equipment, office space, computer 
                        software, consultant services, computer 
                        networking equipment, and related 
                        services; and
                            ``(ii) may not be made from funds 
                        made available for community 
                        development block grants under title I 
                        of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. 5301 
                        et seq.).
            ``(4) Duration.--The Secretary may not provide a 
        grant under this subsection to expand or operate a 
        telework location in a rural area after the date that 
        is 3 years after the establishment of the telework 
        location.
            ``(5) Amount.--The amount of a grant provided to an 
        eligible organization under this subsection shall be 
        not less than $1,000,000 and not more than $2,000,000.
    ``(d) Applicability of Certain Federal Law.--An eligible 
organization that receives funds under this section shall be 
subject to the provisions of Federal law (including 
regulations) administered by the Secretary of Labor or the 
Equal Employment Opportunity Commission that govern the 
responsibilities of employers to employees.
    ``(e) Regulations.--Not later than 180 days after the date 
of enactment of this section, the Secretary shall promulgate 
regulations to carry out this section.
    ``(f) Authorization of Appropriation.--There is authorized 
to be appropriated to carry out this section $30,000,000 for 
each of fiscal years 2002 through 2007, of which $5,000,000 
shall be provided to establish and support an institute under 
subsection (b).''.

SEC. 6023. HISTORIC BARN PRESERVATION.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6022) is 
amended by adding at the end the following:

``SEC. 379A. HISTORIC BARN PRESERVATION.

    ``(a) Definitions.--In this section:
            ``(1) Barn.--The term `barn' means a building 
        (other than a dwelling) on a farm, ranch, or other 
        agricultural operation for--
                    ``(A) housing animals;
                    ``(B) storing or processing crops;
                    ``(C) storing and maintaining agricultural 
                equipment; or
                    ``(D) serving an essential or useful 
                purpose related to agricultural activities 
                conducted on the adjacent land.
            ``(2) Eligible applicant.--The term `eligible 
        applicant' means--
                    ``(A) a State department of agriculture (or 
                a designee);
                    ``(B) a national or State nonprofit 
                organization that--
                            ``(i) is described in section 
                        501(c)(3) of the Internal Revenue Code 
                        of 1986 and exempt from taxation under 
                        section 501(a) of such Code; and
                            ``(ii) has experience or expertise, 
                        as determined by the Secretary, in the 
                        identification, evaluation, 
                        rehabilitation, preservation, or 
                        protection of historic barns; and
                    ``(C) a State historic preservation office.
            ``(3) Historic barn.--The term `historic barn' 
        means a barn that--
                    ``(A) is at least 50 years old;
                    ``(B) retains sufficient integrity of 
                design, materials, and construction to clearly 
                identify the barn as an agricultural building; 
                and
                    ``(C) meets the criteria for listing on 
                National, State, or local registers or 
                inventories of historic structures.
            ``(4) Secretary.--The term `Secretary' means the 
        Secretary, acting through the Under Secretary of Rural 
        Development.
    ``(b) Program.--The Secretary shall establish a historic 
barn preservation program--
            ``(1) to assist States in developing a list of 
        historic barns;
            ``(2) to collect and disseminate information on 
        historic barns;
            ``(3) to foster educational programs relating to 
        the history, construction techniques, rehabilitation, 
        and contribution to society of historic barns; and
            ``(4) to sponsor and conduct research on--
                    ``(A) the history of barns; and
                    ``(B) best practices to protect and 
                rehabilitate historic barns from the effects of 
                decay, fire, arson, and natural disasters.
    ``(c) Grants.--
            ``(1) In general.--The Secretary may make grants 
        to, or enter into contracts or cooperative agreements 
        with, eligible applicants to carry out an eligible 
        project under paragraph (2).
            ``(2) Eligible projects.--A grant under this 
        subsection may be made to an eligible applicant for a 
        project--
                    ``(A) to rehabilitate or repair a historic 
                barn;
                    ``(B) to preserve a historic barn through--
                            ``(i) the installation of a fire 
                        protection system, including 
                        fireproofing or fire detection system 
                        and sprinklers; and
                            ``(ii) the installation of a system 
                        to prevent vandalism; and
                    ``(C) to identify, document, and conduct 
                research on a historic barn to develop and 
                evaluate appropriate techniques or best 
                practices for protecting historic barns.
            ``(3) Requirements.--An eligible applicant that 
        receives a grant for a project under this subsection 
        shall comply with any standards established by the 
        Secretary of the Interior for historic preservation 
        projects.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this section for each of fiscal 
        years 2002 through 2007.''.

SEC. 6024. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6023)) is 
amended by adding at the end the following:

``SEC. 379B. GRANTS FOR NOAA WEATHER RADIO TRANSMITTERS.

    ``(a) In General.--The Secretary, acting through the 
Administrator of the Rural Utilities Service, may make grants 
to public and nonprofit entities, and borrowers of loans made 
by the Rural Utilities Service, for the Federal share of the 
cost of acquiring radio transmitters to increase coverage of 
rural areas by the all hazards weather radio broadcast system 
of the National Oceanic and Atmospheric Administration.
    ``(b) Eligibility.--To be eligible for a grant under this 
section, an applicant shall provide to the Secretary--
            ``(1) a binding commitment from a tower owner to 
        place the transmitter on a tower; and
            ``(2) a description of how the tower placement will 
        increase coverage of a rural area by the all hazards 
        weather radio broadcast system of the National Oceanic 
        and Atmospheric Administration.
    ``(c) Federal Share.--A grant provided under this section 
shall be not more than 75 percent of the total cost of 
acquiring a radio transmitter, as described in subsection (a).
    ``(d) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for each of fiscal years 2002 through 
2007.''.

SEC. 6025. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO 
                    TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY 
                    FOR HIGHER VALUE CROPS.

    Subtitle D of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1981 et seq.) (as amended by section 6024) is 
amended by adding at the end the following:

``SEC. 379C. GRANTS TO TRAIN FARM WORKERS IN NEW TECHNOLOGIES AND TO 
                    TRAIN FARM WORKERS IN SPECIALIZED SKILLS NECESSARY 
                    FOR HIGHER VALUE CROPS.

    ``(a) In General.--The Secretary shall make grants to 
nonprofit organizations, or to a consortium of nonprofit 
organizations, agribusinesses, State and local governments, 
agricultural labor organizations, farmer or rancher 
cooperatives, and community-based organizations with the 
capacity to train farm workers.
    ``(b) Use of Funds.--An entity to which a grant is made 
under this section shall use the grant to train farm workers to 
use new technologies and develop specialized skills for 
agricultural development.
    ``(c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $10,000,000 for 
each of fiscal years 2002 through 2007.''.

SEC. 6026. RURAL COMMUNITY ADVANCEMENT PROGRAM.

    (a) National Reserve Program.--Section 381E of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009d) is 
amended--
            (1) in subsection (b)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as 
                paragraph (4);
            (2) by striking subsection (e);
            (3) by redesignating subsections (f) through (h) as 
        subsections (e) through (g), respectively; and
            (4) in subsection (g) (as so redesignated), by 
        striking ``subsection (g) of this section'' and 
        inserting ``subsection (f)''.
    (b) Rural Venture Capital Demonstration Program.--Section 
381O of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009n) is repealed.
    (c) Conforming Amendments.--Section 381G of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009f(a)) 
is amended--
            (1) in subsection (a), by striking ``section 
        381E(g)'' each place it appears and inserting ``section 
        381E(f)''; and
            (2) in subsection (b)(1), by striking ``section 
        381E(h)'' and inserting ``section 381E(g)''.

SEC. 6027. DELTA REGIONAL AUTHORITY.

    (a) Voting.--Section 382B(c) of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009aa-1(c)) is amended by 
striking paragraph (1) and inserting the following:
            ``(1) In general.--
                    ``(A) Temporary method.--During the period 
                beginning on the date of enactment of this 
                subparagraph and ending on December 31, 2004, a 
                decision by the Authority shall require the 
                affirmative vote of the Federal cochairperson 
                and a majority of the State members (not 
                including any member representing a State that 
                is delinquent under subsection (g)(2)(C)) to be 
                effective.
                    ``(B) Permanent method.--Effective 
                beginning on January 1, 2005, a decision by the 
                Authority shall require a majority vote of the 
                Authority (not including any member 
                representing a State that is delinquent under 
                subsection (g)(2)(C)) to be effective.''.
    (b) Authority To Issue Regulations.--Section 382B(e)(4) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009aa-1(e)(4)) is amended by striking ``and rules'' and 
inserting ``, rules, and regulations''.
    (c) Economic and Community Development Grants.--Section 
382C(b) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009aa-2(b)) is amended by striking paragraph (3).
    (d) Supplements to Federal Grant Programs.--Section 382D of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009aa-3) is amended to read as follows:

``SEC. 382D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Finding.--Congress finds that certain States and 
local communities of the region, including local development 
districts, may be unable to take maximum advantage of Federal 
grant programs for which the States and communities are 
eligible because--
            ``(1) the States or communities lack the economic 
        resources to provide the required matching share; or
            ``(2) there are insufficient funds available under 
        the applicable Federal law authorizing the Federal 
        grant program to meet pressing needs of the region.
    ``(b) Federal Grant Program Funding.--Notwithstanding any 
provision of law limiting the Federal share, the areas eligible 
for assistance, or the authorizations of appropriations of any 
Federal grant program, and in accordance with subsection (c), 
the Authority, with the approval of the Federal cochairperson 
and with respect to a project to be carried out in the region--
            ``(1) may increase the Federal share of the costs 
        of a project under the Federal grant program to not 
        more than 90 percent (except as provided in section 
        382F(b)); and
            ``(2) shall use amounts made available to carry out 
        this subtitle to pay the increased Federal share.
    ``(c) Certifications.--
            ``(1) In general.--In the case of any project for 
        which all or any portion of the basic Federal share of 
        the costs of the project is proposed to be paid under 
        this section, no Federal contribution shall be made 
        until the Federal official administering the Federal 
        law that authorizes the Federal grant program certifies 
        that the project--
                    ``(A) meets (except as provided in 
                subsection (b)) the applicable requirements of 
                the applicable Federal grant program; and
                    ``(B) could be approved for Federal 
                contribution under the Federal grant program if 
                funds were available under the law for the 
                project.
            ``(2) Certification by authority.--
                    ``(A) In general.--The certifications and 
                determinations required to be made by the 
                Authority for approval of projects under this 
                Act in accordance with section 382I--
                            ``(i) shall be controlling; and
                            ``(ii) shall be accepted by the 
                        Federal agencies.
                    ``(B) Acceptance by federal 
                cochairperson.--In the case of any project 
                described in paragraph (1), any finding, 
                report, certification, or documentation 
                required to be submitted with respect to the 
                project to the head of the department, agency, 
                or instrumentality of the Federal Government 
                responsible for the administration of the 
                Federal grant program under which the project 
                is carried out shall be accepted by the Federal 
                cochairperson.''.
    (e) Grants to Local Development Agencies.--Section 
382E(b)(1) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 2009aa-4(b)(1)) is amended by striking ``may'' and 
inserting ``shall''.
    (f) Approval of Development Plans and Projects.--Section 
382I of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009aa-8) is amended--
            (1) in subsection (a), by inserting ``and 
        approved'' after ``reviewed''; and
            (2) in subsection (d), by striking ``Votes for 
        Decisions.--'' and inserting ``Approval of Grant 
        Applications.--''.
    (g) Authorization of Appropriations.--Section 382M(a) of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009aa-12(a)) is amended by striking ``2002'' and inserting 
``2007''.
    (h) Termination of Authority.--Section 382N of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009aa-
13) is amended by striking ``2002'' and inserting ``2007''.
    (i) Delta Region Agricultural Economic Development.--
Subtitle D of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1981 et seq.) (as amended by section 6025) is amended 
by adding at the end the following:

``SEC. 379D. DELTA REGION AGRICULTURAL ECONOMIC DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants to assist 
in the development of state-of-the-art technology in animal 
nutrition (including research and development of the 
technology) and value-added manufacturing to promote an 
economic platform for the Delta region (as defined in section 
382A) to relieve severe economic conditions.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section 
$7,000,000 for each of fiscal years 2002 through 2007.''.
    (j) Definition of Lower Mississippi.--Section 4(2)(I) of 
the Delta Development Act (42 U.S.C. 3121 note; Public Law 100-
460) is amended by inserting ``Butler, Conecuh, Escambia, 
Monroe,'' after ``Russell,''.

SEC. 6028. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

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

         ``Subtitle G--Northern Great Plains Regional Authority

``SEC. 383A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Authority.--The term `Authority' means the 
        Northern Great Plains Regional Authority established by 
        section 383B.
            ``(2) Federal grant program.--The term `Federal 
        grant program' means a Federal grant program to provide 
        assistance in--
                    ``(A) implementing the recommendations of 
                the Northern Great Plains Rural Development 
                Commission established by the Northern Great 
                Plains Rural Development Act (7 U.S.C. 2661 
                note; Public Law 103-318);
                    ``(B) acquiring or developing land;
                    ``(C) constructing or equipping a highway, 
                road, bridge, or facility;
                    ``(D) carrying out other economic 
                development activities; or
                    ``(E) conducting research activities 
                related to the activities described in 
                subparagraphs (A) through (D).
            ``(3) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(4) Region.--The term `region' means the States 
        of Iowa, Minnesota, Nebraska, North Dakota, and South 
        Dakota.

``SEC. 383B. NORTHERN GREAT PLAINS REGIONAL AUTHORITY.

    ``(a) Establishment.--
            ``(1) In general.--There is established the 
        Northern Great Plains Regional Authority.
            ``(2) Composition.--The Authority shall be composed 
        of--
                    ``(A) a Federal member, to be appointed by 
                the President, by and with the advice and 
                consent of the Senate;
                    ``(B) the Governor (or a designee of the 
                Governor) of each State in the region that 
                elects to participate in the Authority; and
                    ``(C) a member of an Indian tribe, who 
                shall be a chairperson of an Indian tribe in 
                the region or a designee of such a chairperson, 
                to be appointed by the President, by and with 
                the advice and consent of the Senate.
            ``(3) Cochairpersons.--The Authority shall be 
        headed by--
                    ``(A) the Federal member, who shall serve--
                            ``(i) as the Federal cochairperson; 
                        and
                            ``(ii) as a liaison between the 
                        Federal Government and the Authority;
                    ``(B) a State cochairperson, who--
                            ``(i) shall be a Governor of a 
                        participating State in the region; and
                            ``(ii) shall be elected by the 
                        State members for a term of not less 
                        than 1 year; and
                    ``(C) the member of an Indian tribe, who 
                shall serve--
                            ``(i) as the tribal cochairperson; 
                        and
                            ``(ii) as a liaison between the 
                        governments of Indian tribes in the 
                        region and the Authority.
    ``(b) Alternate Members.--
            ``(1) Alternate federal cochairperson.--The 
        President shall appoint an alternate Federal 
        cochairperson.
            ``(2) State alternates.--
                    ``(A) In general.--The State member of a 
                participating State may have a single 
                alternate, who shall be--
                            ``(i) a resident of that State; and
                            ``(ii) appointed by the Governor of 
                        the State.
                    ``(B) Quorum.--A State alternate member 
                shall not be counted toward the establishment 
                of a quorum of the members of the Authority in 
                any case in which a quorum of the State members 
                is required to be present.
            ``(3) Alternate tribal cochairperson.--The 
        President shall appoint an alternate tribal 
        cochairperson, by and with the advice and consent of 
        the Senate.
            ``(4) Delegation of power.--No power or 
        responsibility of the Authority specified in paragraphs 
        (2) and (3) of subsection (c), and no voting right of 
        any member of the Authority, shall be delegated to any 
        person who is not--
                    ``(A) a member of the Authority; or
                    ``(B) entitled to vote in Authority 
                meetings.
    ``(c) Voting.--
            ``(1) In general.--A decision by the Authority 
        shall require a majority vote of the Authority (not 
        including any member representing a State that is 
        delinquent under subsection (g)(2)(D)) to be effective.
            ``(2) Quorum.--A quorum of State members shall be 
        required to be present for the Authority to make any 
        policy decision, including--
                    ``(A) a modification or revision of an 
                Authority policy decision;
                    ``(B) approval of a State or regional 
                development plan; and
                    ``(C) any allocation of funds among the 
                States.
            ``(3) Project and grant proposals.--The approval of 
        project and grant proposals shall be--
                    ``(A) a responsibility of the Authority; 
                and
                    ``(B) conducted in accordance with section 
                383I.
            ``(4) Voting by alternate members.--An alternate 
        member shall vote in the case of the absence, death, 
        disability, removal, or resignation of the Federal, 
        State, or Indian tribe member for whom the alternate 
        member is an alternate.
    ``(d) Duties.--The Authority shall--
            ``(1) develop, on a continuing basis, comprehensive 
        and coordinated plans and programs to establish 
        priorities and approve grants for the economic 
        development of the region, giving due consideration to 
        other Federal, State, tribal, and local planning and 
        development activities in the region;
            ``(2) not later than 220 days after the date of 
        enactment of this subtitle, establish priorities in a 
        development plan for the region (including 5-year 
        regional outcome targets);
            ``(3) assess the needs and assets of the region 
        based on available research, demonstrations, 
        investigations, assessments, and evaluations of the 
        region prepared by Federal, State, tribal, and local 
        agencies, universities, local development districts, 
        and other nonprofit groups;
            ``(4) formulate and recommend to the Governors and 
        legislatures of States that participate in the 
        Authority forms of interstate cooperation;
            ``(5) work with State, tribal, and local agencies 
        in developing appropriate model legislation;
            ``(6)(A) enhance the capacity of, and provide 
        support for, local development districts in the region; 
        or
            ``(B) if no local development district exists in an 
        area in a participating State in the region, foster the 
        creation of a local development district;
            ``(7) encourage private investment in industrial, 
        commercial, and other economic development projects in 
        the region; and
            ``(8) cooperate with and assist State governments 
        with economic development programs of participating 
        States.
    ``(e) Administration.--In carrying out subsection (d), the 
Authority may--
            ``(1) hold such hearings, sit and act at such times 
        and places, take such testimony, receive such evidence, 
        and print or otherwise reproduce and distribute a 
        description of the proceedings and reports on actions 
        by the Authority as the Authority considers 
        appropriate;
            ``(2) authorize, through the Federal, State, or 
        tribal cochairperson or any other member of the 
        Authority designated by the Authority, the 
        administration of oaths if the Authority determines 
        that testimony should be taken or evidence received 
        under oath;
            ``(3) request from any Federal, State, tribal, or 
        local agency such information as may be available to or 
        procurable by the agency that may be of use to the 
        Authority in carrying out the duties of the Authority;
            ``(4) adopt, amend, and repeal bylaws and rules 
        governing the conduct of business and the performance 
        of duties of the Authority;
            ``(5) request the head of any Federal agency to 
        detail to the Authority such personnel as the Authority 
        requires to carry out duties of the Authority, each 
        such detail to be without loss of seniority, pay, or 
        other employee status;
            ``(6) request the head of any State agency, tribal 
        government, or local government to detail to the 
        Authority such personnel as the Authority requires to 
        carry out duties of the Authority, each such detail to 
        be without loss of seniority, pay, or other employee 
        status;
            ``(7) provide for coverage of Authority employees 
        in a suitable retirement and employee benefit system 
        by--
                    ``(A) making arrangements or entering into 
                contracts with any participating State 
                government or tribal government; or
                    ``(B) otherwise providing retirement and 
                other employee benefit coverage;
            ``(8) accept, use, and dispose of gifts or 
        donations of services or real, personal, tangible, or 
        intangible property;
            ``(9) enter into and perform such contracts, 
        leases, cooperative agreements, or other transactions 
        as are necessary to carry out Authority duties, 
        including any contracts, leases, or cooperative 
        agreements with--
                    ``(A) any department, agency, or 
                instrumentality of the United States;
                    ``(B) any State (including a political 
                subdivision, agency, or instrumentality of the 
                State);
                    ``(C) any Indian tribe in the region; or
                    ``(D) any person, firm, association, or 
                corporation; and
            ``(10) establish and maintain a central office and 
        field offices at such locations as the Authority may 
        select.
    ``(f) Federal Agency Cooperation.--A Federal agency shall--
            ``(1) cooperate with the Authority; and
            ``(2) provide, on request of the Federal 
        cochairperson, appropriate assistance in carrying out 
        this subtitle, in accordance with applicable Federal 
        laws (including regulations).
    ``(g) Administrative Expenses.--
            ``(1) Federal share.--The Federal share of the 
        administrative expenses of the Authority shall be--
                    ``(A) for fiscal year 2002, 100 percent;
                    ``(B) for fiscal year 2003, 75 percent; and
                    ``(C) for fiscal year 2004 and each fiscal 
                year thereafter, 50 percent.
            ``(2) Non-federal share.--
                    ``(A) In general.--The non-Federal share of 
                the administrative expenses of the Authority 
                shall be paid by non-Federal sources in the 
                States that participate in the Authority.
                    ``(B) Share paid by each state.--The share 
                of administrative expenses of the Authority to 
                be paid by non-Federal sources in each State 
                shall be determined by the Authority.
                    ``(C) No federal participation.--The 
                Federal cochairperson shall not participate or 
                vote in any decision under subparagraph (B).
                    ``(D) Delinquent states.--If a State is 
                delinquent in payment of the State's share of 
                administrative expenses of the Authority under 
                this subsection--
                            ``(i) no assistance under this 
                        subtitle shall be provided to the State 
                        (including assistance to a political 
                        subdivision or a resident of the 
                        State); and
                            ``(ii) no member of the Authority 
                        from the State shall participate or 
                        vote in any action by the Authority.
    ``(h) Compensation.--
            ``(1) Federal and tribal cochairpersons.--The 
        Federal cochairperson and the tribal cochairperson 
        shall be compensated by the Federal Government at the 
        annual rate of basic pay prescribed for level III of 
        the Executive Schedule in subchapter II of chapter 53 
        of title 5, United States Code.
            ``(2) Alternate federal and tribal 
        cochairpersons.--The alternate Federal cochairperson 
        and the alternate tribal cochairperson--
                    ``(A) shall be compensated by the Federal 
                Government at the annual rate of basic pay 
                prescribed for level V of the Executive 
                Schedule described in paragraph (1); and
                    ``(B) when not actively serving as an 
                alternate, shall perform such functions and 
                duties as are delegated by the Federal 
                cochairperson or the tribal cochairperson, 
                respectively.
            ``(3) State members and alternates.--
                    ``(A) In general.--A State shall compensate 
                each member and alternate representing the 
                State on the Authority at the rate established 
                by State law.
                    ``(B) No additional compensation.--No State 
                member or alternate member shall receive any 
                salary, or any contribution to or 
                supplementation of salary from any source other 
                than the State for services provided by the 
                member or alternate member to the Authority.
            ``(4) Detailed employees.--
                    ``(A) In general.--No person detailed to 
                serve the Authority under subsection (e)(6) 
                shall receive any salary or any contribution to 
                or supplementation of salary for services 
                provided to the Authority from--
                            ``(i) any source other than the 
                        State, tribal, local, or 
                        intergovernmental agency from which the 
                        person was detailed; or
                            ``(ii) the Authority.
                    ``(B) Violation.--Any person that violates 
                this paragraph shall be fined not more than 
                $5,000, imprisoned not more than 1 year, or 
                both.
                    ``(C) Applicable law.--The Federal 
                cochairperson, the alternate Federal 
                cochairperson, and any Federal officer or 
                employee detailed to duty on the Authority 
                under subsection (e)(5) shall not be subject to 
                subparagraph (A), but shall remain subject to 
                sections 202 through 209 of title 18, United 
                States Code.
            ``(5) Additional personnel.--
                    ``(A) Compensation.--
                            ``(i) In general.--The Authority 
                        may appoint and fix the compensation of 
                        an executive director and such other 
                        personnel as are necessary to enable 
                        the Authority to carry out the duties 
                        of the Authority.
                            ``(ii) Exception.--Compensation 
                        under clause (i) shall not exceed the 
                        maximum rate for the Senior Executive 
                        Service under section 5382 of title 5, 
                        United States Code, including any 
                        applicable locality-based comparability 
                        payment that may be authorized under 
                        section 5304(h)(2)(C) of that title.
                    ``(B) Executive director.--The executive 
                director shall be responsible for--
                            ``(i) the carrying out of the 
                        administrative duties of the Authority;
                            ``(ii) direction of the Authority 
                        staff; and
                            ``(iii) such other duties as the 
                        Authority may assign.
                    ``(C) No federal employee status.--No 
                member, alternate, officer, or employee of the 
                Authority (except the Federal cochairperson of 
                the Authority, the alternate and staff for the 
                Federal cochairperson, and any Federal employee 
                detailed to the Authority under subsection 
                (e)(5)) shall be considered to be a Federal 
                employee for any purpose.
    ``(i) Conflicts of Interest.--
            ``(1) In general.--Except as provided under 
        paragraph (2), no State member, Indian tribe member, 
        State alternate, officer, or employee of the Authority 
        shall participate personally and substantially as a 
        member, alternate, officer, or employee of the 
        Authority, through decision, approval, disapproval, 
        recommendation, the rendering of advice, investigation, 
        or otherwise, in any proceeding, application, request 
        for a ruling or other determination, contract, claim, 
        controversy, or other matter in which, to knowledge of 
        the member, alternate, officer, or employee--
                    ``(A) the member, alternate, officer, or 
                employee;
                    ``(B) the spouse, minor child, partner, or 
                organization (other than a State or political 
                subdivision of the State or the Indian tribe) 
                of the member, alternate, officer, or employee, 
                in which the member, alternate, officer, or 
                employee is serving as officer, director, 
                trustee, partner, or employee; or
                    ``(C) any person or organization with whom 
                the member, alternate, officer, or employee is 
                negotiating or has any arrangement concerning 
                prospective employment;
        has a financial interest.
            ``(2) Disclosure.--Paragraph (1) shall not apply if 
        the State member, Indian tribe member, alternate, 
        officer, or employee--
                    ``(A) immediately advises the Authority of 
                the nature and circumstances of the proceeding, 
                application, request for a ruling or other 
                determination, contract, claim, controversy, or 
                other particular matter presenting a potential 
                conflict of interest;
                    ``(B) makes full disclosure of the 
                financial interest; and
                    ``(C) before the proceeding concerning the 
                matter presenting the conflict of interest, 
                receives a written determination by the 
                Authority that the interest is not so 
                substantial as to be likely to affect the 
                integrity of the services that the Authority 
                may expect from the State member, Indian tribe 
                member, alternate, officer, or employee.
            ``(3) Violation.--Any person that violates this 
        subsection shall be fined not more than $10,000, 
        imprisoned not more than 2 years, or both.
    ``(j) Validity of Contracts, Loans, and Grants.--The 
Authority may declare void any contract, loan, or grant of or 
by the Authority in relation to which the Authority determines 
that there has been a violation of any provision under 
subsection (h)(4) or subsection (i) of this subtitle, or 
sections 202 through 209 of title 18, United States Code.

``SEC. 383C. ECONOMIC AND COMMUNITY DEVELOPMENT GRANTS.

    ``(a) In General.--The Authority may approve grants to 
States, Indian tribes, local governments, and public and 
nonprofit organizations for projects, approved in accordance 
with section 383I--
            ``(1) to develop the transportation and 
        telecommunication infrastructure of the region for the 
        purpose of facilitating economic development in the 
        region (except that grants for this purpose may be made 
        only to States, Indian tribes, local governments, and 
        nonprofit organizations);
            ``(2) to assist the region in obtaining the job 
        training, employment-related education, and business 
        development (with an emphasis on entrepreneurship) that 
        are needed to build and maintain strong local 
        economies;
            ``(3) to provide assistance to severely distressed 
        and underdeveloped areas that lack financial resources 
        for improving basic public services;
            ``(4) to provide assistance to severely distressed 
        and underdeveloped areas that lack financial resources 
        for equipping industrial parks and related facilities; 
        and
            ``(5) to otherwise achieve the purposes of this 
        subtitle.
    ``(b) Funding.--
            ``(1) In general.--Funds for grants under 
        subsection (a) may be provided--
                    ``(A) entirely from appropriations to carry 
                out this section;
                    ``(B) in combination with funds available 
                under another Federal grant program; or
                    ``(C) from any other source.
            ``(2) Priority of funding.--To best build the 
        foundations for long-term economic development and to 
        complement other Federal, State, and tribal resources 
        in the region, Federal funds available under this 
        subtitle shall be focused on the activities in the 
        following order or priority:
                    ``(A) Basic public infrastructure in 
                distressed counties and isolated areas of 
                distress.
                    ``(B) Transportation and telecommunication 
                infrastructure for the purpose of facilitating 
                economic development in the region.
                    ``(C) Business development, with emphasis 
                on entrepreneurship.
                    ``(D) Job training or employment-related 
                education, with emphasis on use of existing 
                public educational institutions located in the 
                region.

``SEC. 383D. SUPPLEMENTS TO FEDERAL GRANT PROGRAMS.

    ``(a) Finding.--Congress finds that certain States and 
local communities of the region, including local development 
districts, may be unable to take maximum advantage of Federal 
grant programs for which the States and communities are 
eligible because--
            ``(1) they lack the economic resources to provide 
        the required matching share; or
            ``(2) there are insufficient funds available under 
        the applicable Federal law authorizing the Federal 
        grant program to meet pressing needs of the region.
    ``(b) Federal Grant Program Funding.--Notwithstanding any 
provision of law limiting the Federal share, the areas eligible 
for assistance, or the authorizations of appropriations, under 
any Federal grant program, and in accordance with subsection 
(c), the Authority, with the approval of the Federal 
cochairperson and with respect to a project to be carried out 
in the region--
            ``(1) may increase the Federal share of the costs 
        of a project under any Federal grant program to not 
        more than 90 percent (except as provided in section 
        383F(b)); and
            ``(2) shall use amounts made available to carry out 
        this subtitle to pay the increased Federal share.
    ``(c) Certifications.--
            ``(1) In general.--In the case of any project for 
        which all or any portion of the basic Federal share of 
        the costs of the project is proposed to be paid under 
        this section, no Federal contribution shall be made 
        until the Federal official administering the Federal 
        law that authorizes the Federal grant program certifies 
        that the project--
                    ``(A) meets (except as provided in 
                subsection (b)) the applicable requirements of 
                the applicable Federal grant program; and
                    ``(B) could be approved for Federal 
                contribution under the Federal grant program if 
                funds were available under the law for the 
                project.
            ``(2) Certification by authority.--
                    ``(A) In general.--The certifications and 
                determinations required to be made by the 
                Authority for approval of projects under this 
                Act in accordance with section 383I--
                            ``(i) shall be controlling; and
                            ``(ii) shall be accepted by the 
                        Federal agencies.
                    ``(B) Acceptance by federal 
                cochairperson.--In the case of any project 
                described in paragraph (1), any finding, 
                report, certification, or documentation 
                required to be submitted with respect to the 
                project to the head of the department, agency, 
                or instrumentality of the Federal Government 
                responsible for the administration of the 
                Federal grant program under which the project 
                is carried out shall be accepted by the Federal 
                cochairperson.

``SEC. 383E. LOCAL DEVELOPMENT DISTRICTS AND ORGANIZATIONS AND NORTHERN 
                    GREAT PLAINS INC.

    ``(a) Definition of Local Development District.--In this 
section, the term `local development district' means an 
entity--
            ``(1) that--
                    ``(A) is a planning district in existence 
                on the date of enactment of this subtitle that 
                is recognized by the Economic Development 
                Administration of the Department of Commerce; 
                or
                    ``(B) is--
                            ``(i) organized and operated in a 
                        manner that ensures broad-based 
                        community participation and an 
                        effective opportunity for other 
                        nonprofit groups to contribute to the 
                        development and implementation of 
                        programs in the region;
                            ``(ii) governed by a policy board 
                        with at least a simple majority of 
                        members consisting of--
                                    ``(I) elected officials or 
                                employees of a general purpose 
                                unit of local government who 
                                have been appointed to 
                                represent the government; or
                                    ``(II) individuals 
                                appointed by the general 
                                purpose unit of local 
                                government to represent the 
                                government;
                            ``(iii) certified to the Authority 
                        as having a charter or authority that 
                        includes the economic development of 
                        counties or parts of counties or other 
                        political subdivisions within the 
                        region--
                                    ``(I) by the Governor of 
                                each State in which the entity 
                                is located; or
                                    ``(II) by the State officer 
                                designated by the appropriate 
                                State law to make the 
                                certification; and
                            ``(iv)(I) a nonprofit incorporated 
                        body organized or chartered under the 
                        law of the State in which the entity is 
                        located;
                            ``(II) a nonprofit agency or 
                        instrumentality of a State or local 
                        government;
                            ``(III) a public organization 
                        established before the date of 
                        enactment of this subtitle under State 
                        law for creation of multi-
                        jurisdictional, area-wide planning 
                        organizations; or
                            ``(IV) a nonprofit association or 
                        combination of bodies, agencies, and 
                        instrumentalities described in 
                        subclauses (I) through (III); and
            ``(2) that has not, as certified by the Federal 
        cochairperson--
                    ``(A) inappropriately used Federal grant 
                funds from any Federal source; or
                    ``(B) appointed an officer who, during the 
                period in which another entity inappropriately 
                used Federal grant funds from any Federal 
                source, was an officer of the other entity.
    ``(b) Grants to Local Development Districts.--
            ``(1) In general.--The Authority may make grants 
        for administrative expenses under this section.
            ``(2) Conditions for grants.--
                    ``(A) Maximum amount.--The amount of any 
                grant awarded under paragraph (1) shall not 
                exceed 80 percent of the administrative 
                expenses of the local development district 
                receiving the grant.
                    ``(B) Maximum period.--No grant described 
                in paragraph (1) shall be awarded to a State 
                agency certified as a local development 
                district for a period greater than 3 years.
                    ``(C) Local share.--The contributions of a 
                local development district for administrative 
                expenses may be in cash or in kind, fairly 
                evaluated, including space, equipment, and 
                services.
    ``(c) Duties of Local Development Districts.--A local 
development district shall--
            ``(1) operate as a lead organization serving 
        multicounty areas in the region at the local level; and
            ``(2) serve as a liaison between State, tribal, and 
        local governments, nonprofit organizations (including 
        community-based groups and educational institutions), 
        the business community, and citizens that--
                    ``(A) are involved in multijurisdictional 
                planning;
                    ``(B) provide technical assistance to local 
                jurisdictions and potential grantees; and
                    ``(C) provide leadership and civic 
                development assistance.
    ``(d) Northern Great Plains Inc.--Northern Great Plains 
Inc., a nonprofit corporation incorporated in the State of 
Minnesota to implement the recommendations of the Northern 
Great Plains Rural Development Commission established by the 
Northern Great Plains Rural Development Act (7 U.S.C. 2661 
note; Public Law 103-318)--
            ``(1) shall serve as an independent, primary 
        resource for the Authority on issues of concern to the 
        region;
            ``(2) shall advise the Authority on development of 
        international trade;
            ``(3) may provide research, education, training, 
        and other support to the Authority; and
            ``(4) may carry out other activities on its own 
        behalf or on behalf of other entities.

``SEC. 383F. DISTRESSED COUNTIES AND AREAS AND NONDISTRESSED COUNTIES.

    ``(a) Designations.--Not later than 90 days after the date 
of enactment of this subtitle, and annually thereafter, the 
Authority, in accordance with such criteria as the Authority 
may establish, shall designate--
            ``(1) as distressed counties, counties in the 
        region that are the most severely and persistently 
        distressed and underdeveloped and have high rates of 
        poverty, unemployment, or outmigration;
            ``(2) as nondistressed counties, counties in the 
        region that are not designated as distressed counties 
        under paragraph (1); and
            ``(3) as isolated areas of distress, areas located 
        in nondistressed counties (as designated under 
        paragraph (2)) that have high rates of poverty, 
        unemployment, or outmigration.
    ``(b) Distressed Counties.--
            ``(1) In general.--The Authority shall allocate at 
        least 75 percent of the appropriations made available 
        under section 383M for programs and projects designed 
        to serve the needs of distressed counties and isolated 
        areas of distress in the region.
            ``(2) Funding limitations.--The funding limitations 
        under section 383D(b) shall not apply to a project to 
        provide transportation or telecommunication or basic 
        public services to residents of 1 or more distressed 
        counties or isolated areas of distress in the region.
    ``(c) Nondistressed Counties.--
            ``(1) In general.--Except as provided in paragraph 
        (2), no funds shall be provided under this subtitle for 
        a project located in a county designated as a 
        nondistressed county under subsection (a)(2).
            ``(2) Exceptions.--
                    ``(A) In general.--The funding prohibition 
                under paragraph (1) shall not apply to grants 
                to fund the administrative expenses of local 
                development districts under section 383E(b).
                    ``(B) Multicounty projects.--The Authority 
                may waive the application of the funding 
                prohibition under paragraph (1) to--
                            ``(i) a multicounty project that 
                        includes participation by a 
                        nondistressed county; or
                            ``(ii) any other type of project;
                if the Authority determines that the project 
                could bring significant benefits to areas of 
                the region outside a nondistressed county.
                    ``(C) Isolated areas of distress.--For a 
                designation of an isolated area of distress for 
                assistance to be effective, the designation 
                shall be supported--
                            ``(i) by the most recent Federal 
                        data available; or
                            ``(ii) if no recent Federal data 
                        are available, by the most recent data 
                        available through the government of the 
                        State in which the isolated area of 
                        distress is located.
    ``(d) Transportation, Telecommunication, and Basic Public 
Infrastructure.--The Authority shall allocate at least 50 
percent of any funds made available under section 383M for 
transportation, telecommunication, and basic public 
infrastructure projects authorized under paragraphs (1) and (3) 
of section 383C(a).

``SEC. 383G. DEVELOPMENT PLANNING PROCESS.

    ``(a) State Development Plan.--In accordance with policies 
established by the Authority, each State member shall submit a 
development plan for the area of the region represented by the 
State member.
    ``(b) Content of Plan.--A State development plan submitted 
under subsection (a) shall reflect the goals, objectives, and 
priorities identified in the regional development plan 
developed under section 383B(d)(2).
    ``(c) Consultation With Interested Local Parties.--In 
carrying out the development planning process (including the 
selection of programs and projects for assistance), a State 
may--
            ``(1) consult with--
                    ``(A) local development districts; and
                    ``(B) local units of government; and
            ``(2) take into consideration the goals, 
        objectives, priorities, and recommendations of the 
        entities described in paragraph (1).
    ``(d) Public Participation.--
            ``(1) In general.--The Authority and applicable 
        State and local development districts shall encourage 
        and assist, to the maximum extent practicable, public 
        participation in the development, revision, and 
        implementation of all plans and programs under this 
        subtitle.
            ``(2) Regulations.--The Authority shall develop 
        guidelines for providing public participation described 
        in paragraph (1), including public hearings.

``SEC. 383H. PROGRAM DEVELOPMENT CRITERIA.

    ``(a) In General.--In considering programs and projects to 
be provided assistance under this subtitle, and in establishing 
a priority ranking of the requests for assistance provided to 
the Authority, the Authority shall follow procedures that 
ensure, to the maximum extent practicable, consideration of--
            ``(1) the relationship of the project or class of 
        projects to overall regional development;
            ``(2) the per capita income and poverty and 
        unemployment and outmigration rates in an area;
            ``(3) the financial resources available to the 
        applicants for assistance seeking to carry out the 
        project, with emphasis on ensuring that projects are 
        adequately financed to maximize the probability of 
        successful economic development;
            ``(4) the importance of the project or class of 
        projects in relation to other projects or classes of 
        projects that may be in competition for the same funds;
            ``(5) the prospects that the project for which 
        assistance is sought will improve, on a continuing 
        rather than a temporary basis, the opportunities for 
        employment, the average level of income, or the 
        economic development of the area to be served by the 
        project; and
            ``(6) the extent to which the project design 
        provides for detailed outcome measurements by which 
        grant expenditures and the results of the expenditures 
        may be evaluated.
    ``(b) No Relocation Assistance.--No financial assistance 
authorized by this subtitle shall be used to assist a person or 
entity in relocating from one area to another, except that 
financial assistance may be used as otherwise authorized by 
this title to attract businesses from outside the region to the 
region.
    ``(c) Maintenance of Effort.--Funds may be provided for a 
program or project in a State under this subtitle only if the 
Authority determines that the level of Federal or State 
financial assistance provided under a law other than this 
subtitle, for the same type of program or project in the same 
area of the State within the region, will not be reduced as a 
result of funds made available by this subtitle.

``SEC. 383I. APPROVAL OF DEVELOPMENT PLANS AND PROJECTS.

    ``(a) In General.--A State or regional development plan or 
any multistate subregional plan that is proposed for 
development under this subtitle shall be reviewed by the 
Authority.
    ``(b) Evaluation by State Member.--An application for a 
grant or any other assistance for a project under this subtitle 
shall be made through and evaluated for approval by the State 
member of the Authority representing the applicant.
    ``(c) Certification.--An application for a grant or other 
assistance for a project shall be approved only on 
certification by the State member that the application for the 
project--
            ``(1) describes ways in which the project complies 
        with any applicable State development plan;
            ``(2) meets applicable criteria under section 383H;
            ``(3) provides adequate assurance that the proposed 
        project will be properly administered, operated, and 
        maintained; and
            ``(4) otherwise meets the requirements of this 
        subtitle.
    ``(d) Votes for Decisions.--On certification by a State 
member of the Authority of an application for a grant or other 
assistance for a specific project under this section, an 
affirmative vote of the Authority under section 383B(c) shall 
be required for approval of the application.

``SEC. 383J. CONSENT OF STATES.

    ``Nothing in this subtitle requires any State to engage in 
or accept any program under this subtitle without the consent 
of the State.

``SEC. 383K. RECORDS.

    ``(a) Records of the Authority.--
            ``(1) In general.--The Authority shall maintain 
        accurate and complete records of all transactions and 
        activities of the Authority.
            ``(2) Availability.--All records of the Authority 
        shall be available for audit and examination by the 
        Comptroller General of the United States and the 
        Inspector General of the Department of Agriculture 
        (including authorized representatives of the 
        Comptroller General and the Inspector General of the 
        Department of Agriculture).
    ``(b) Records of Recipients of Federal Assistance.--
            ``(1) In general.--A recipient of Federal funds 
        under this subtitle shall, as required by the 
        Authority, maintain accurate and complete records of 
        transactions and activities financed with Federal funds 
        and report to the Authority on the transactions and 
        activities to the Authority.
            ``(2) Availability.--All records required under 
        paragraph (1) shall be available for audit by the 
        Comptroller General of the United States, the Inspector 
        General of the Department of Agriculture, and the 
        Authority (including authorized representatives of the 
        Comptroller General, the Inspector General of the 
        Department of Agriculture, and the Authority).
    ``(c) Annual Audit.--The Inspector General of the 
Department of Agriculture shall audit the activities, 
transactions, and records of the Authority on an annual basis.

``SEC. 383L. ANNUAL REPORT.

    ``Not later than 180 days after the end of each fiscal 
year, the Authority shall submit to the President and to 
Congress a report describing the activities carried out under 
this subtitle.

``SEC. 383M. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated 
to the Authority to carry out this subtitle $30,000,000 for 
each of fiscal years 2002 through 2007, to remain available 
until expended.
    ``(b) Administrative Expenses.--Not more than 5 percent of 
the amount appropriated under subsection (a) for a fiscal year 
shall be used for administrative expenses of the Authority.
    ``(c) Minimum State Share of Grants.--Notwithstanding any 
other provision of this subtitle, for any fiscal year, the 
aggregate amount of grants received by a State and all persons 
or entities in the State under this subtitle shall be not less 
than \1/3\ of the product obtained by multiplying--
            ``(1) the aggregate amount of grants under this 
        subtitle for the fiscal year; and
            ``(2) the ratio that--
                    ``(A) the population of the State (as 
                determined by the Secretary of Commerce based 
                on the most recent decennial census for which 
                data are available); bears to
                    ``(B) the population of the region (as so 
                determined).

``SEC. 383N. TERMINATION OF AUTHORITY.

    ``The authority provided by this subtitle terminates 
effective October 1, 2007.''.

SEC. 6029. RURAL BUSINESS INVESTMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (as amended 
by section 6028) is amended by adding at the end the following:

            ``Subtitle H--Rural Business Investment Program

``SEC. 384A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Articles.--The term `articles' means articles 
        of incorporation for an incorporated body or the 
        functional equivalent or other similar documents 
        specified by the Secretary for other business entities.
            ``(2) Developmental venture capital.--The term 
        `developmental venture capital' means capital in the 
        form of equity capital investments in rural business 
        investment companies with an objective of fostering 
        economic development in rural areas.
            ``(3) Employee welfare benefit plan; pension 
        plan.--
                    ``(A) In general.--The terms `employee 
                welfare benefit plan' and `pension plan' have 
                the meanings given the terms in section 3 of 
                the Employee Retirement Income Security Act of 
                1974 (29 U.S.C. 1002).
                    ``(B) Inclusions.--The terms `employee 
                welfare benefit plan' and `pension plan' 
                include--
                            ``(i) public and private pension or 
                        retirement plans subject to this 
                        subtitle; and
                            ``(ii) similar plans not covered by 
                        this subtitle that have been 
                        established, and that are maintained, 
                        by the Federal Government or any State 
                        (including by a political subdivision, 
                        agency, or instrumentality of the 
                        Federal Government or a State) for the 
                        benefit of employees.
            ``(4) Equity capital.--The term `equity capital' 
        means common or preferred stock or a similar 
        instrument, including subordinated debt with equity 
        features.
            ``(5) Leverage.--The term `leverage' includes--
                    ``(A) debentures purchased or guaranteed by 
                the Secretary;
                    ``(B) participating securities purchased or 
                guaranteed by the Secretary; and
                    ``(C) preferred securities outstanding as 
                of the date of enactment of this subtitle.
            ``(6) License.--The term `license' means a license 
        issued by the Secretary as provided in section 384D(e).
            ``(7) Limited liability company.--The term `limited 
        liability company' means a business entity that is 
        organized and operating in accordance with a State 
        limited liability company law approved by the 
        Secretary.
            ``(8) Member.--The term `member' means, with 
        respect to a rural business investment company that is 
        a limited liability company, a holder of an ownership 
        interest or a person otherwise admitted to membership 
        in the limited liability company.
            ``(9) Operational assistance.--The term 
        `operational assistance' means management, marketing, 
        and other technical assistance that assists a rural 
        business concern with business development.
            ``(10) Participation agreement.--The term 
        `participation agreement' means an agreement, between 
        the Secretary and a rural business investment company 
        granted final approval under section 384D(e), that 
        requires the rural business investment company to make 
        investments in smaller enterprises in rural areas.
            ``(11) Private capital.--
                    ``(A) In general.--The term `private 
                capital' means the total of--
                            ``(i)(I) the paid-in capital and 
                        paid-in surplus of a corporate rural 
                        business investment company;
                            ``(II) the contributed capital of 
                        the partners of a partnership rural 
                        business investment company; or
                            ``(III) the equity investment of 
                        the members of a limited liability 
                        company rural business investment 
                        company; and
                            ``(ii) unfunded binding commitments 
                        from investors that meet criteria 
                        established by the Secretary to 
                        contribute capital to the rural 
                        business investment company, except 
                        that--
                                    ``(I) unfunded commitments 
                                may be counted as private 
                                capital for purposes of 
                                approval by the Secretary of 
                                any request for leverage; but
                                    ``(II) leverage shall not 
                                be funded based on the 
                                commitments.
                    ``(B) Exclusions.--The term `private 
                capital' does not include--
                            ``(i) any funds borrowed by a rural 
                        business investment company from any 
                        source;
                            ``(ii) any funds obtained through 
                        the issuance of leverage; or
                            ``(iii) any funds obtained directly 
                        or indirectly from the Federal 
                        Government or any State (including by a 
                        political subdivision, agency, or 
                        instrumentality of the Federal 
                        Government or a State), except for--
                                    ``(I) funds obtained from 
                                the business revenues 
                                (excluding any governmental 
                                appropriation) of any federally 
                                chartered or government-
                                sponsored enterprise 
                                established prior to the date 
                                of enactment of this subtitle;
                                    ``(II) funds invested by an 
                                employee welfare benefit plan 
                                or pension plan; and
                                    ``(III) any qualified 
                                nonprivate funds (if the 
                                investors of the qualified 
                                nonprivate funds do not 
                                control, directly or 
                                indirectly, the management, 
                                board of directors, general 
                                partners, or members of the 
                                rural business investment 
                                company).
            ``(12) Qualified nonprivate funds.--The term 
        `qualified nonprivate funds' means any--
                    ``(A) funds directly or indirectly invested 
                in any applicant or rural business investment 
                company on or before the date of enactment of 
                this subtitle, by any Federal agency, other 
                than the Department of Agriculture, under a 
                provision of law explicitly mandating the 
                inclusion of those funds in the definition of 
                the term `private capital'; and
                    ``(B) funds invested in any applicant or 
                rural business investment company by 1 or more 
                entities of any State (including by a political 
                subdivision, agency, or instrumentality of the 
                State and including any guarantee extended by 
                those entities) in an aggregate amount that 
                does not exceed 33 percent of the private 
                capital of the applicant or rural business 
                investment company.
            ``(13) Rural business concern.--The term `rural 
        business concern' means--
                    ``(A) a public, private, or cooperative 
                for-profit or nonprofit organization;
                    ``(B) a for-profit or nonprofit business 
                controlled by an Indian tribe on a Federal or 
                State reservation or other federally recognized 
                Indian tribal group; or
                    ``(C) any other person or entity;
        that primarily operates in a rural area, as determined 
        by the Secretary.
            ``(14) Rural business investment company.--The term 
        `rural business investment company' means a company 
        that--
                    ``(A) has been granted final approval by 
                the Secretary under section 384D(e); and
                    ``(B) has entered into a participation 
                agreement with the Secretary.
            ``(15) Smaller enterprise.--The term `smaller 
        enterprise' means any rural business concern that, 
        together with its affiliates--
                    ``(A) has--
                            ``(i) a net financial worth of not 
                        more than $6,000,000, as of the date on 
                        which assistance is provided under this 
                        subtitle to the rural business concern; 
                        and
                            ``(ii) an average net income for 
                        the 2-year period preceding the date on 
                        which assistance is provided under this 
                        subtitle to the rural business concern, 
                        of not more than $2,000,000, after 
                        Federal income taxes (excluding any 
                        carryover losses), except that, for 
                        purposes of this clause, if the rural 
                        business concern is not required by law 
                        to pay Federal income taxes at the 
                        enterprise level, but is required to 
                        pass income through to the 
                        shareholders, partners, beneficiaries, 
                        or other equitable owners of the 
                        business concern, the net income of the 
                        business concern shall be determined by 
                        allowing a deduction in an amount equal 
                        to the total of--
                                    ``(I) if the rural business 
                                concern is not required by law 
                                to pay State (and local, if 
                                any) income taxes at the 
                                enterprise level, the net 
                                income (determined without 
                                regard to this clause), 
                                multiplied by the marginal 
                                State income tax rate (or by 
                                the combined State and local 
                                income tax rates, as 
                                applicable) that would have 
                                applied if the business concern 
                                were a corporation; and
                                    ``(II) the net income (so 
                                determined) less any deduction 
                                for State (and local) income 
                                taxes calculated under 
                                subclause (I), multiplied by 
                                the marginal Federal income tax 
                                rate that would have applied if 
                                the rural business concern were 
                                a corporation; or
                    ``(B) satisfies the standard industrial 
                classification size standards established by 
                the Administrator of the Small Business 
                Administration for the industry in which the 
                rural business concern is primarily engaged.

``SEC. 384B. PURPOSES.

    ``The purposes of the Rural Business Investment Program 
established under this subtitle are--
            ``(1) to promote economic development and the 
        creation of wealth and job opportunities in rural areas 
        and among individuals living in those areas by 
        encouraging developmental venture capital investments 
        in smaller enterprises primarily located in rural 
        areas; and
            ``(2) to establish a developmental venture capital 
        program, with the mission of addressing the unmet 
        equity investment needs of small enterprises located in 
        rural areas, by authorizing the Secretary--
                    ``(A) to enter into participation 
                agreements with rural business investment 
                companies;
                    ``(B) to guarantee debentures of rural 
                business investment companies to enable each 
                rural business investment company to make 
                developmental venture capital investments in 
                smaller enterprises in rural areas; and
                    ``(C) to make grants to rural business 
                investment companies, and to other entities, 
                for the purpose of providing operational 
                assistance to smaller enterprises financed, or 
                expected to be financed, by rural business 
                investment companies.

``SEC. 384C. ESTABLISHMENT.

    ``In accordance with this subtitle, the Secretary shall 
establish a Rural Business Investment Program, under which the 
Secretary may--
            ``(1) enter into participation agreements with 
        companies granted final approval under section 384D(e) 
        for the purposes set forth in section 384B;
            ``(2) guarantee the debentures issued by rural 
        business investment companies as provided in section 
        384E; and
            ``(3) make grants to rural business investment 
        companies, and to other entities, under section 384H.

``SEC. 384D. SELECTION OF RURAL BUSINESS INVESTMENT COMPANIES.

    ``(a) Eligibility.--A company shall be eligible to apply to 
participate, as a rural business investment company, in the 
program established under this subtitle if--
            ``(1) the company is a newly formed for-profit 
        entity or a newly formed for-profit subsidiary of such 
        an entity;
            ``(2) the company has a management team with 
        experience in community development financing or 
        relevant venture capital financing; and
            ``(3) the company will invest in enterprises that 
        will create wealth and job opportunities in rural 
        areas, with an emphasis on smaller enterprises.
    ``(b) Application.--To participate, as a rural business 
investment company, in the program established under this 
subtitle, a company meeting the eligibility requirements of 
subsection (a) shall submit an application to the Secretary 
that includes--
            ``(1) a business plan describing how the company 
        intends to make successful developmental venture 
        capital investments in identified rural areas;
            ``(2) information regarding the community 
        development finance or relevant venture capital 
        qualifications and general reputation of the management 
        of the company;
            ``(3) a description of how the company intends to 
        work with community-based organizations and local 
        entities (including local economic development 
        companies, local lenders, and local investors) and to 
        seek to address the unmet equity capital needs of the 
        communities served;
            ``(4) a proposal describing how the company intends 
        to use the grant funds provided under this subtitle to 
        provide operational assistance to smaller enterprises 
        financed by the company, including information 
        regarding whether the company intends to use licensed 
        professionals, as necessary, on the staff of the 
        company or from an outside entity;
            ``(5) with respect to binding commitments to be 
        made to the company under this subtitle, an estimate of 
        the ratio of cash to in-kind contributions;
            ``(6) a description of the criteria to be used to 
        evaluate whether and to what extent the company meets 
        the purposes of the program established under this 
        subtitle;
            ``(7) information regarding the management and 
        financial strength of any parent firm, affiliated firm, 
        or any other firm essential to the success of the 
        business plan of the company; and
            ``(8) such other information as the Secretary may 
        require.
    ``(c) Status.--Not later than 90 days after the initial 
receipt by the Secretary of an application under this section, 
the Secretary shall provide to the applicant a written report 
describing the status of the application and any requirements 
remaining for completion of the application.
    ``(d) Matters Considered.--In reviewing and processing any 
application under this section, the Secretary--
            ``(1) shall determine whether--
                    ``(A) the applicant meets the requirements 
                of subsection (e); and
                    ``(B) the management of the applicant is 
                qualified and has the knowledge, experience, 
                and capability necessary to comply with this 
                subtitle;
            ``(2) shall take into consideration--
                    ``(A) the need for and availability of 
                financing for rural business concerns in the 
                geographic area in which the applicant is to 
                commence business;
                    ``(B) the general business reputation of 
                the owners and management of the applicant; and
                    ``(C) the probability of successful 
                operations of the applicant, including adequate 
                profitability and financial soundness; and
            ``(3) shall not take into consideration any 
        projected shortage or unavailability of grant funds or 
        leverage.
    ``(e) Approval; License.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the Secretary may approve an applicant to operate 
        as a rural business investment company under this 
        subtitle and license the applicant as a rural business 
        investment company, if--
                    ``(A) the Secretary determines that the 
                application satisfies the requirements of 
                subsection (b);
                    ``(B) the area in which the rural business 
                investment company is to conduct its 
                operations, and establishment of branch offices 
                or agencies (if authorized by the articles), 
                are approved by the Secretary; and
                    ``(C) the applicant enters into a 
                participation agreement with the Secretary.
            ``(2) Capital requirements.--
                    ``(A) In general.--Notwithstanding any 
                other provision of this subtitle, the Secretary 
                may approve an applicant to operate as a rural 
                business investment company under this subtitle 
                and designate the applicant as a rural business 
                investment company, if the Secretary determines 
                that the applicant--
                            ``(i) has private capital of more 
                        than $2,500,000;
                            ``(ii) would otherwise be approved 
                        under this subtitle, except that the 
                        applicant does not satisfy the 
                        requirements of section 384I(c); and
                            ``(iii) has a viable business plan 
                        that--
                                    ``(I) reasonably projects 
                                profitable operations; and
                                    ``(II) has a reasonable 
                                timetable for achieving a level 
                                of private capital that 
                                satisfies the requirements of 
                                section 384I(c).
                    ``(B) Leverage.--An applicant approved 
                under subparagraph (A) shall not be eligible to 
                receive leverage under this subtitle until the 
                applicant satisfies the requirements of section 
                384I(c).
                    ``(C) Grants.--An applicant approved under 
                subparagraph (A) shall be eligible for grants 
                under section 384H in proportion to the private 
                capital of the applicant, as determined by the 
                Secretary.

``SEC. 384E. DEBENTURES.

    ``(a) In General.--The Secretary may guarantee the timely 
payment of principal and interest, as scheduled, on debentures 
issued by any rural business investment company.
    ``(b) Terms and Conditions.--The Secretary may make 
guarantees under this section on such terms and conditions as 
the Secretary considers appropriate, except that the term of 
any debenture guaranteed under this section shall not exceed 15 
years.
    ``(c) Full Faith and Credit of the United States.--Section 
381H(i) shall apply to any guarantee under this section.
    ``(d) Maximum Guarantee.--Under this section, the Secretary 
may--
            ``(1) guarantee the debentures issued by a rural 
        business investment company only to the extent that the 
        total face amount of outstanding guaranteed debentures 
        of the rural business investment company does not 
        exceed the lesser of--
                    ``(A) 300 percent of the private capital of 
                the rural business investment company; or
                    ``(B) $105,000,000; and
            ``(2) provide for the use of discounted debentures.

``SEC. 384F. ISSUANCE AND GUARANTEE OF TRUST CERTIFICATES.

    ``(a) Issuance.--The Secretary may issue trust certificates 
representing ownership of all or a fractional part of 
debentures issued by a rural business investment company and 
guaranteed by the Secretary under this subtitle, if the 
certificates are based on and backed by a trust or pool 
approved by the Secretary and composed solely of guaranteed 
debentures.
    ``(b) Guarantee.--
            ``(1) In general.--The Secretary may, under such 
        terms and conditions as the Secretary considers 
        appropriate, guarantee the timely payment of the 
        principal of and interest on trust certificates issued 
        by the Secretary or agents of the Secretary for 
        purposes of this section.
            ``(2) Limitation.--Each guarantee under this 
        subsection shall be limited to the extent of principal 
        and interest on the guaranteed debentures that compose 
        the trust or pool.
            ``(3) Prepayment or default.--
                    ``(A) In general.--In the event a debenture 
                in a trust or pool is prepaid, or in the event 
                of default of such a debenture, the guarantee 
                of timely payment of principal and interest on 
                the trust certificates shall be reduced in 
                proportion to the amount of principal and 
                interest the prepaid debenture represents in 
                the trust or pool.
                    ``(B) Interest.--Interest on prepaid or 
                defaulted debentures shall accrue and be 
                guaranteed by the Secretary only through the 
                date of payment of the guarantee.
                    ``(C) Redemption.--At any time during its 
                term, a trust certificate may be called for 
                redemption due to prepayment or default of all 
                debentures.
    ``(c) Full Faith and Credit of the United States.--Section 
381H(i) shall apply to any guarantee of a trust certificate 
issued by the Secretary under this section.
    ``(d) Subrogation and Ownership Rights.--
            ``(1) Subrogation.--If the Secretary pays a claim 
        under a guarantee issued under this section, the claim 
        shall be subrogated fully to the rights satisfied by 
        the payment.
            ``(2) Ownership rights.--No Federal, State, or 
        local law shall preclude or limit the exercise by the 
        Secretary of the ownership rights of the Secretary in a 
        debenture residing in a trust or pool against which 1 
        or more trust certificates are issued under this 
        section.
    ``(e) Management and Administration.--
            ``(1) Registration.--The Secretary shall provide 
        for a central registration of all trust certificates 
        issued under this section.
            ``(2) Creation of pools.--The Secretary may--
                    ``(A) maintain such commercial bank 
                accounts or investments in obligations of the 
                United States as may be necessary to facilitate 
                the creation of trusts or pools backed by 
                debentures guaranteed under this subtitle; and
                    ``(B) issue trust certificates to 
                facilitate the creation of those trusts or 
                pools.
            ``(3) Fidelity bond or insurance requirement.--Any 
        agent performing functions on behalf of the Secretary 
        under this paragraph shall provide a fidelity bond or 
        insurance in such amount as the Secretary considers to 
        be necessary to fully protect the interests of the 
        United States.
            ``(4) Regulation of brokers and dealers.--The 
        Secretary may regulate brokers and dealers in trust 
        certificates issued under this section.
            ``(5) Electronic registration.--Nothing in this 
        subsection prohibits the use of a book-entry or other 
        electronic form of registration for trust certificates 
        issued under this section.

``SEC. 384G. FEES.

    ``(a) In General.--The Secretary may charge such fees as 
the Secretary considers appropriate with respect to any 
guarantee or grant issued under this subtitle.
    ``(b) Trust Certificate.--Notwithstanding subsection (a), 
the Secretary shall not collect a fee for any guarantee of a 
trust certificate under section 384F, except that any agent of 
the Secretary may collect a fee approved by the Secretary for 
the functions described in section 384F(e)(2).
    ``(c) License.--
            ``(1) In general.--The Secretary may prescribe fees 
        to be paid by each applicant for a license to operate 
        as a rural business investment company under this 
        subtitle.
            ``(2) Use of amounts.--Fees collected under this 
        subsection--
                    ``(A) shall be deposited in the account for 
                salaries and expenses of the Secretary; and
                    ``(B) are authorized to be appropriated 
                solely to cover the costs of licensing 
                examinations.

``SEC. 384H. OPERATIONAL ASSISTANCE GRANTS.

    ``(a) In General.--In accordance with this section, the 
Secretary may make grants to rural business investment 
companies and to other entities, as authorized by this 
subtitle, to provide operational assistance to smaller 
enterprises financed, or expected to be financed, by the 
entities.
    ``(b) Terms.--Grants made under this section shall be made 
over a multiyear period (not to exceed 10 years) under such 
terms as the Secretary may require.
    ``(c) Use of Funds.--The proceeds of a grant made under 
this section may be used by the rural business investment 
company receiving the grant only to provide operational 
assistance in connection with an equity or prospective equity 
investment in a business located in a rural area.
    ``(d) Submission of Plans.--A rural business investment 
company shall be eligible for a grant under this section only 
if the rural business investment company submits to the 
Secretary, in such form and manner as the Secretary may 
require, a plan for use of the grant.
    ``(e) Grant Amount.--
            ``(1) Rural business investment companies.--The 
        amount of a grant made under this section to a rural 
        business investment company shall be equal to the 
        lesser of--
                    ``(A) 10 percent of the private capital 
                raised by the rural business investment 
                company; or
                    ``(B) $1,000,000.
            ``(2) Other entities.--The amount of a grant made 
        under this section to any entity other than a rural 
        business investment company shall be equal to the 
        resources (in cash or in kind) raised by the entity in 
        accordance with the requirements applicable to rural 
        business investment companies under this subtitle.

``SEC. 384I. RURAL BUSINESS INVESTMENT COMPANIES.

    ``(a) Organization.--For the purpose of this subtitle, a 
rural business investment company shall--
            ``(1) be an incorporated body, a limited liability 
        company, or a limited partnership organized and 
        chartered or otherwise existing under State law solely 
        for the purpose of performing the functions and 
        conducting the activities authorized by this subtitle;
            ``(2)(A) if incorporated, have succession for a 
        period of not less than 30 years unless earlier 
        dissolved by the shareholders of the rural business 
        investment company; and
            ``(B) if a limited partnership or a limited 
        liability company, have succession for a period of not 
        less than 10 years; and
            ``(3) possess the powers reasonably necessary to 
        perform the functions and conduct the activities.
    ``(b) Articles.--The articles of any rural business 
investment company--
            ``(1) shall specify in general terms--
                    ``(A) the purposes for which the rural 
                business investment company is formed;
                    ``(B) the name of the rural business 
                investment company;
                    ``(C) the area or areas in which the 
                operations of the rural business investment 
                company are to be carried out;
                    ``(D) the place where the principal office 
                of the rural business investment company is to 
                be located; and
                    ``(E) the amount and classes of the shares 
                of capital stock of the rural business 
                investment company;
            ``(2) may contain any other provisions consistent 
        with this subtitle that the rural business investment 
        company may determine appropriate to adopt for the 
        regulation of the business of the rural business 
        investment company and the conduct of the affairs of 
        the rural business investment company; and
            ``(3) shall be subject to the approval of the 
        Secretary.
    ``(c) Capital Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), the private capital of each rural business 
        investment company shall be not less than--
                    ``(A) $5,000,000; or
                    ``(B) $10,000,000, with respect to each 
                rural business investment company authorized or 
                seeking authority to issue participating 
                securities to be purchased or guaranteed by the 
                Secretary under this subtitle.
            ``(2) Exception.--The Secretary may, in the 
        discretion of the Secretary and based on a showing of 
        special circumstances and good cause, permit the 
        private capital of a rural business investment company 
        described in paragraph (1)(B) to be less than 
        $10,000,000, but not less than $5,000,000, if the 
        Secretary determines that the action would not create 
        or otherwise contribute to an unreasonable risk of 
        default or loss to the Federal Government.
            ``(3) Adequacy.--In addition to the requirements of 
        paragraph (1), the Secretary shall--
                    ``(A) determine whether the private capital 
                of each rural business investment company is 
                adequate to ensure a reasonable prospect that 
                the rural business investment company will be 
                operated soundly and profitably, and managed 
                actively and prudently in accordance with the 
                articles of the rural business investment 
                company;
                    ``(B) determine that the rural business 
                investment company will be able to comply with 
                the requirements of this subtitle;
                    ``(C) require that at least 75 percent of 
                the capital of each rural business investment 
                company is invested in rural business concerns 
                and not more than 10 percent of the investments 
                shall be made in an area containing a city of 
                over 150,000 in the last decennial census and 
                the Census Bureau defined urbanized area 
                containing or adjacent to that city;
                    ``(D) ensure that the rural business 
                investment company is designed primarily to 
                meet equity capital needs of the businesses in 
                which the rural business investment company 
                invests and not to compete with traditional 
                small business financing by commercial lenders; 
                and
                    ``(E) require that the rural business 
                investment company makes short-term non-equity 
                investments of less than 5 years only to the 
                extent necessary to preserve an existing 
                investment.
    ``(d) Diversification of Ownership.--The Secretary shall 
ensure that the management of each rural business investment 
company licensed after the date of enactment of this subtitle 
is sufficiently diversified from and unaffiliated with the 
ownership of the rural business investment company so as to 
ensure independence and objectivity in the financial management 
and oversight of the investments and operations of the rural 
business investment company.

``SEC. 384J. FINANCIAL INSTITUTION INVESTMENTS.

    ``(a) In General.--Except as otherwise provided in this 
section and notwithstanding any other provision of law, the 
following banks, associations, and institutions are eligible 
both to establish and invest in any rural business investment 
company or in any entity established to invest solely in rural 
business investment companies:
            ``(1) Any bank or savings association the deposits 
        of which are insured under the Federal Deposit 
        Insurance Act (12 U.S.C. 1811 et seq.).
            ``(2) Any Farm Credit System institution described 
        in section 1.2(a) of the Farm Credit Act of 1971 (12 
        U.S.C. 2002(a)).
    ``(b) Limitation.--No bank, association, or institution 
described in subsection (a) may make investments described in 
subsection (a) that are greater than 5 percent of the capital 
and surplus of the bank, association, or institution.
    ``(c) Limitation on Rural Business Investment Companies 
Controlled by Farm Credit System Institutions.--If a Farm 
Credit System institution described in section 1.2(a) of the 
Farm Credit Act of 1971 (12 U.S.C. 2002(a)) holds more than 15 
percent of the shares of a rural business investment company, 
either alone or in conjunction with other System institutions 
(or affiliates), the rural business investment company shall 
not provide equity investments in, or provide other financial 
assistance to, entities that are not otherwise eligible to 
receive financing from the Farm Credit System under that Act 
(12 U.S.C. 2001 et seq.).

``SEC. 384K. REPORTING REQUIREMENTS.

    ``(a) Rural Business Investment Companies.--Each rural 
business investment company that participates in the program 
established under this subtitle shall provide to the Secretary 
such information as the Secretary may require, including--
            ``(1) information relating to the measurement 
        criteria that the rural business investment company 
        proposed in the program application of the rural 
        business investment company; and
            ``(2) in each case in which the rural business 
        investment company under this subtitle makes an 
        investment in, or a loan or grant to, a business that 
        is not located in a rural area, a report on the number 
        and percentage of employees of the business who reside 
        in those areas.
    ``(b) Public Reports.--
            ``(1) In general.--The Secretary shall prepare and 
        make available to the public an annual report on the 
        program established under this subtitle, including 
        detailed information on--
                    ``(A) the number of rural business 
                investment companies licensed by the Secretary 
                during the previous fiscal year;
                    ``(B) the aggregate amount of leverage that 
                rural business investment companies have 
                received from the Federal Government during the 
                previous fiscal year;
                    ``(C) the aggregate number of each type of 
                leveraged instruments used by rural business 
                investment companies during the previous fiscal 
                year and how each number compares to previous 
                fiscal years;
                    ``(D) the number of rural business 
                investment company licenses surrendered and the 
                number of rural business investment companies 
                placed in liquidation during the previous 
                fiscal year, identifying the amount of leverage 
                each rural business investment company has 
                received from the Federal Government and the 
                type of leverage instruments each rural 
                business investment company has used;
                    ``(E) the amount of losses sustained by the 
                Federal Government as a result of operations 
                under this subtitle during the previous fiscal 
                year and an estimate of the total losses that 
                the Federal Government can reasonably expect to 
                incur as a result of the operations during the 
                current fiscal year;
                    ``(F) actions taken by the Secretary to 
                maximize recoupment of funds of the Federal 
                Government expended to implement and administer 
                the Rural Business Investment Program under 
                this subtitle during the previous fiscal year 
                and to ensure compliance with the requirements 
                of this subtitle (including regulations);
                    ``(G) the amount of Federal Government 
                leverage that each licensee received in the 
                previous fiscal year and the types of leverage 
                instruments each licensee used;
                    ``(H) for each type of financing 
                instrument, the sizes, types of geographic 
                locations, and other characteristics of the 
                small business investment companies using the 
                instrument during the previous fiscal year, 
                including the extent to which the investment 
                companies have used the leverage from each 
                instrument to make loans or equity investments 
                in rural areas; and
                    ``(I) the actions of the Secretary to carry 
                out this subtitle.
            ``(2) Prohibition.--In compiling the report 
        required under paragraph (1), the Secretary may not--
                    ``(A) compile the report in a manner that 
                permits identification of any particular type 
                of investment by an individual rural business 
                investment company or small business concern in 
                which a rural business investment company 
                invests; and
                    ``(B) may not release any information that 
                is prohibited under section 1905 of title 18, 
                United States Code.

``SEC. 384L. EXAMINATIONS.

    ``(a) In General.--Each rural business investment company 
that participates in the program established under this 
subtitle shall be subject to examinations made at the direction 
of the Secretary in accordance with this section.
    ``(b) Assistance of Private Sector Entities.--An 
examination under this section may be conducted with the 
assistance of a private sector entity that has the 
qualifications and the expertise necessary to conduct such an 
examination.
    ``(c) Costs.--
            ``(1) In general.--The Secretary may assess the 
        cost of an examination under this section, including 
        compensation of the examiners, against the rural 
        business investment company examined.
            ``(2) Payment.--Any rural business investment 
        company against which the Secretary assesses costs 
        under this paragraph shall pay the costs.
    ``(d) Deposit of Funds.--Funds collected under this section 
shall--
            ``(1) be deposited in the account that incurred the 
        costs for carrying out this section;
            ``(2) be made available to the Secretary to carry 
        out this section, without further appropriation; and
            ``(3) remain available until expended.

``SEC. 384M. INJUNCTIONS AND OTHER ORDERS.

    ``(a) In General.--
            ``(1) Application by secretary.--Whenever, in the 
        judgment of the Secretary, a rural business investment 
        company or any other person has engaged or is about to 
        engage in any act or practice that constitutes or will 
        constitute a violation of a provision of this subtitle 
        (including any rule, regulation, order, or 
        participation agreement under this subtitle), the 
        Secretary may apply to the appropriate district court 
        of the United States for an order enjoining the act or 
        practice, or for an order enforcing compliance with the 
        provision, rule, regulation, order, or participation 
        agreement.
            ``(2) Jurisdiction; relief.--The court shall have 
        jurisdiction over the action and, on a showing by the 
        Secretary that the rural business investment company or 
        other person has engaged or is about to engage in an 
        act or practice described in paragraph (1), a permanent 
        or temporary injunction, restraining order, or other 
        order, shall be granted without bond.
    ``(b) Jurisdiction.--
            ``(1) In general.--In any proceeding under 
        subsection (a), the court as a court of equity may, to 
        such extent as the court considers necessary, take 
        exclusive jurisdiction over the rural business 
        investment company and the assets of the rural business 
        investment company, wherever located.
            ``(2) Trustee or receiver.--The court shall have 
        jurisdiction in any proceeding described in paragraph 
        (1) to appoint a trustee or receiver to hold or 
        administer the assets.
    ``(c) Secretary as Trustee or Receiver.--
            ``(1) Authority.--The Secretary may act as trustee 
        or receiver of a rural business investment company.
            ``(2) Appointment.--On the request of the 
        Secretary, the court shall appoint the Secretary to act 
        as a trustee or receiver of a rural business investment 
        company unless the court considers the appointment 
        inequitable or otherwise inappropriate by reason of any 
        special circumstances involved.

``SEC. 384N. ADDITIONAL PENALTIES FOR NONCOMPLIANCE.

    ``(a) In General.--With respect to any rural business 
investment company that violates or fails to comply with this 
subtitle (including any rule, regulation, order, or 
participation agreement under this subtitle), the Secretary 
may, in accordance with this section--
            ``(1) void the participation agreement between the 
        Secretary and the rural business investment company; 
        and
            ``(2) cause the rural business investment company 
        to forfeit all of the rights and privileges derived by 
        the rural business investment company under this 
        subtitle.
    ``(b) Adjudication of Noncompliance.--
            ``(1) In general.--Before the Secretary may cause a 
        rural business investment company to forfeit rights or 
        privileges under subsection (a), a court of the United 
        States of competent jurisdiction must find that the 
        rural business investment company committed a 
        violation, or failed to comply, in a cause of action 
        brought for that purpose in the district, territory, or 
        other place subject to the jurisdiction of the United 
        States, in which the principal office of the rural 
        business investment company is located.
            ``(2) Parties authorized to file causes of 
        action.--Each cause of action brought by the United 
        States under this subsection shall be brought by the 
        Secretary or by the Attorney General.

``SEC. 384O. UNLAWFUL ACTS AND OMISSIONS; BREACH OF FIDUCIARY DUTY.

    ``(a) Parties Deemed To Commit a Violation.--Whenever any 
rural business investment company violates this subtitle 
(including any rule, regulation, order, or participation 
agreement under this subtitle), by reason of the failure of the 
rural business investment company to comply with this subtitle 
or by reason of its engaging in any act or practice that 
constitutes or will constitute a violation of this subtitle, 
the violation shall also be deemed to be a violation and an 
unlawful act committed by any person that, directly or 
indirectly, authorizes, orders, participates in, causes, brings 
about, counsels, aids, or abets in the commission of any acts, 
practices, or transactions that constitute or will constitute, 
in whole or in part, the violation.
    ``(b) Fiduciary Duties.--It shall be unlawful for any 
officer, director, employee, agent, or other participant in the 
management or conduct of the affairs of a rural business 
investment company to engage in any act or practice, or to omit 
any act or practice, in breach of the fiduciary duty of the 
officer, director, employee, agent, or participant if, as a 
result of the act or practice, the rural business investment 
company suffers or is in imminent danger of suffering financial 
loss or other damage.
    ``(c) Unlawful Acts.--Except with the written consent of 
the Secretary, it shall be unlawful--
            ``(1) for any person to take office as an officer, 
        director, or employee of any rural business investment 
        company, or to become an agent or participant in the 
        conduct of the affairs or management of a rural 
        business investment company, if the person--
                    ``(A) has been convicted of a felony, or 
                any other criminal offense involving dishonesty 
                or breach of trust; or
                    ``(B) has been found liable in a civil 
                action for damages, or has been permanently or 
                temporarily enjoined by an order, judgment, or 
                decree of a court of competent jurisdiction, by 
                reason of any act or practice involving fraud 
                or breach of trust; and
            ``(2) for any person to continue to serve in any of 
        the capacities described in paragraph (1), if--
                    ``(A) the person is convicted of a felony 
                or any other criminal offense involving 
                dishonesty or breach of trust; or
                    ``(B) the person is found liable in a civil 
                action for damages, or is permanently or 
                temporarily enjoined by an order, judgment, or 
                decree of a court of competent jurisdiction, by 
                reason of any act or practice involving fraud 
                or breach of trust.

``SEC. 384P. REMOVAL OR SUSPENSION OF DIRECTORS OR OFFICERS.

    ``Using the procedures established by the Secretary for 
removing or suspending a director or an officer of a rural 
business investment company, the Secretary may remove or 
suspend any director or officer of any rural business 
investment company.

``SEC. 384Q. CONTRACTING OF FUNCTIONS.

    ``(a) In General.--Notwithstanding any other provision of 
law, to carry out the day-to-day management and operation of 
the program authorized by this subtitle on behalf of the 
Secretary, the Secretary shall enter into an interagency 
agreement under section 1535 of title 31, United States Code, 
with another Federal agency that has considerable expertise in 
operating a program under which capital is provided for equity 
investments in private sector companies.
    ``(b) Funding.--The costs incurred by a Federal agency 
entering into an agreement under subsection (a) shall be 
reimbursed in accordance with section 1535 of title 31, United 
States Code, from amounts made available under section 
384S(a)(2).

``SEC. 384R. REGULATIONS.

    ``The Secretary may promulgate such regulations as the 
Secretary considers necessary to carry out this subtitle.

``SEC. 384S. FUNDING.

    ``(a) In General.--Notwithstanding any other provision of 
law, of the funds of the Commodity Credit Corporation, the 
Secretary shall make available--
            ``(1) such sums as may be necessary for the cost of 
        guaranteeing $280,000,000 of debentures under this 
        subtitle; and
            ``(2) $44,000,000 to make grants under this 
        subtitle.
    ``(b) Availability of Funds.--Funds transferred under 
subsection (a) shall remain available until expended.''.

SEC. 6030. RURAL STRATEGIC INVESTMENT PROGRAM.

    The Consolidated Farm and Rural Development Act (as amended 
by section 6029) is amended by adding at the end the following:

            ``Subtitle I--Rural Strategic Investment Program

``SEC. 385A. PURPOSE.

    ``The purpose of this subtitle is to establish a rural 
strategic investment program--
            ``(1) to provide rural communities with flexible 
        resources to develop comprehensive, collaborative, and 
        locally-based strategic planning processes; and
            ``(2) to implement innovative community and 
        economic development strategies that optimize regional 
        competitive advantages.

``SEC. 385B. DEFINITIONS.

    ``In this subtitle:
            ``(1) Benchmark.--The term `benchmark' means an 
        annual set of strategies and goals of a Regional Board 
        established for the purpose of measuring performance in 
        meeting the regional plan of the Regional Board.
            ``(2) Conference.--The term ``Conference'' means 
        the National Conference on Rural America conducted 
        under section 385H.
            ``(3) Eligible area.--
                    ``(A) In general.--The term `eligible area' 
                means a nonmetropolitan county (as defined by 
                the Secretary) that has a population of 50,000 
                inhabitants or less.
                    ``(B) Inclusion.--
                            ``(i) In general.--Subject to 
                        clause (ii), the term `eligible area' 
                        includes an unincorporated or other 
                        area of a county that has a population 
                        of more than 50,000 inhabitants if the 
                        unincorporated area or other area is 
                        adjacent to an eligible rural area 
                        described in subparagraph (A).
                            ``(ii) Participation.--An area 
                        described in clause (i) may be 
                        represented on a Regional Board.
                    ``(C) Exclusion.--The term `eligible area' 
                does not include any area designated by the 
                Secretary as a rural empowerment zone or rural 
                enterprise community.
            ``(4) Innovation grant.--The term `innovation 
        grant' means an innovation grant made by the National 
        Board to a Regional Board under section 385G.
            ``(5) National board.--The term `National Board' 
        means the National Board on Rural America established 
        under section 385D(a).
            ``(6) National plan.--The term `national plan' 
        means a national strategic investment plan of the 
        National Board developed under section 385D(d)(3).
            ``(7) Planning grant.--The term `planning grant' 
        means a regional strategic investment planning grant 
        made by the National Board to a Regional Board under 
        section 385F.
            ``(8) Program.--The term `program' means the rural 
        strategic investment program established under this 
        subtitle.
            ``(9) Region.--The term `region' means the eligible 
        areas that--
                    ``(A) are under the jurisdiction of a 
                Regional Board; and
                    ``(B) meet criteria established by the 
                National Board not later than 1 year after the 
                date of enactment of this subtitle.
            ``(10) Regional board.--The term `Regional Board' 
        means a Regional Investment Board certified under 
        section 385C(a).
            ``(11) Regional plan.--The term `regional plan' 
        means a regional strategic investment plan of a 
        Regional Board developed under section 385C(b)(3)(B).

``SEC. 385C. REGIONAL INVESTMENT BOARDS.

    ``(a) In General.--The National Board may certify a group 
representing the interests described in subsection (b)(2)(A) as 
a Regional Investment Board created to develop and implement a 
regional strategic investment plan for grants made under this 
subtitle to promote investment in eligible areas.
    ``(b) Requirements for Certification.--
            ``(1) In general.--A Regional Board shall meet the 
        requirements of this subsection for certification.
            ``(2) Composition.--
                    ``(A) In general.--A Regional Board shall 
                be composed of residents of the region that 
                broadly represent diverse public, nonprofit, 
                and private sector interests in investment in 
                the region, including (to the maximum extent 
                practicable) representatives of--
                            ``(i) units of local government 
                        (including multijurisdictional units of 
                        local government);
                            ``(ii) in the case of regions with 
                        Indian populations, Indian tribes (as 
                        defined in section 4 of the Indian 
                        Self-Determination and Education 
                        Assistance Act (25 U.S.C. 450b));
                            ``(iii) private nonprofit 
                        community-based development 
                        organizations;
                            ``(iv) regional development 
                        organizations;
                            ``(v) private business 
                        organizations;
                            ``(vi) other entities and 
                        organizations, as determined by the 
                        Regional Board; and
                            ``(vii) consortia of entities and 
                        organizations described in clauses (i) 
                        through (vii).
                    ``(B) Local public-private 
                representation.--Of the members of a Regional 
                Board, to the maximum extent practicable--
                            ``(i) \1/2\ of the members shall be 
                        representatives of units of local 
                        government and Indian tribes described 
                        in subparagraph (A); and
                            ``(ii) \1/2\ of the members shall 
                        be representatives of nonprofit, 
                        regional, private, and other entities 
                        and organizations described in 
                        subparagraph (A).
                    ``(C) Ex-officio members.--
                            ``(i) In general.--An officer or 
                        employee of a Federal or State agency 
                        may serve as an ex-officio, non-voting 
                        member of a Regional Board representing 
                        the agency.
                            ``(ii) Conflicts.--Participation by 
                        a Federal officer or employee in 
                        activities of the Regional Board shall 
                        not constitute a violation of section 
                        205 or 208 of title 18, United States 
                        Code.
                    ``(D) Certification.--To be certified by 
                the National Board, a Regional Board shall 
                demonstrate to the National Board that the 
                Regional Board is broadly representative of the 
                interests described in subparagraph (A).
                    ``(E) Appeals.--
                            ``(i) In general.--Prior to 
                        certification of the Regional Board by 
                        the National Board, representatives of 
                        interests described in subparagraph (A) 
                        that participated in the development of 
                        a Regional Board may appeal the 
                        composition of the Regional Board to 
                        the National Board on the ground that--
                                    ``(I) the composition of 
                                the Regional Board does not 
                                adequately reflect the purposes 
                                of the program; or
                                    ``(II) the selection 
                                process for the Regional Board 
                                unfairly disadvantaged those 
                                interests.
                            ``(ii) Action by national board.--
                        The National Board shall act on any 
                        appeal of the composition of a Regional 
                        Board before taking action on the 
                        certification of the Regional Board.
            ``(3) Duties and purpose.--The organizational 
        documents of the proposed Regional Board shall 
        demonstrate that, on certification, the Regional Board 
        shall--
                    ``(A) create a collaborative, inclusive 
                public-private planning process;
                    ``(B) develop, and submit to the National 
                Board for approval, a regional strategic 
                investment plan that meets the requirements of 
                section 385F, with benchmarks, to promote 
                investment in eligible areas through the use of 
                grants made available under this subtitle;
                    ``(C) implement the approved regional plan;
                    ``(D) provide annual reports to the 
                Secretary and the National Board on progress 
                made in achieving the benchmarks of the 
                regional plan, including an annual financial 
                statement; and
                    ``(E) select a non-Federal organization 
                (such as a regional development organization) 
                in the local area served by the Regional Board 
                that has previous experience in the management 
                of Federal funds to serve as fiscal manager of 
                any funds of the Regional Board.

``SEC. 385D. NATIONAL BOARD ON RURAL AMERICA.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary shall establish a 
        National Board on Rural America to carry out the rural 
        strategic investment program established under this 
        subtitle.
            ``(2) Supervision and direction.--Except as 
        otherwise provided in this subtitle, the National Board 
        shall be subject to the general supervision and 
        direction of the Secretary.
    ``(b) Composition.--
            ``(1) In general.--
                    ``(A) Appointment.--In addition to the 
                Secretary or the designee of the Secretary, the 
                National Board shall consist of 14 members 
                appointed by the Secretary from among--
                            ``(i) representatives of nationally 
                        recognized entrepreneurship 
                        organizations;
                            ``(ii) representatives of regional 
                        planning and development organizations;
                            ``(iii) representatives of 
                        community-based organizations;
                            ``(iv) elected members of county 
                        governments;
                            ``(v) elected members of State 
                        legislatures;
                            ``(vi) representatives of the rural 
                        philanthropic community; and
                            ``(vii) representatives of Indian 
                        tribes (as defined in section 4 of the 
                        Indian Self-Determination and Education 
                        Assistance Act (25 U.S.C. 450b)).
                    ``(B) Recommendations.--In appointing the 
                members of the National Board under 
                subparagraph (A), the Secretary shall consider 
                recommendations made by--
                            ``(i) the chairman and ranking 
                        member of each of the Committee on 
                        Agriculture of the House of 
                        Representatives and the Committee on 
                        Agriculture, Nutrition, and Forestry of 
                        the Senate;
                            ``(ii) the Majority Leader of the 
                        Senate; and
                            ``(iii) the Speaker of the House of 
                        Representatives.
            ``(3) Term of office.--
                    ``(A) In general.--Subject to subparagraph 
                (B), the term of office of a member of the 
                National Board appointed under paragraph (1)(A) 
                shall be 4 years.
                    ``(B) Staggered initial terms.--Of the 
                initial members of the National Board appointed 
                under paragraph (1)(A), the term of office of--
                            ``(i) 5 members shall be 4 years;
                            ``(ii) 5 members shall be 3 years; 
                        and
                            ``(iii) 4 members shall be 2 years.
            ``(4) Initial appointments.--Not later than 90 days 
        after the date of enactment of this subtitle, the 
        Secretary shall appoint the initial members of the 
        National Board under paragraph (1)(A).
            ``(5) Ex-officio members.--
                    ``(A) Special assistant to the president 
                for rural policy.--If appointed by the 
                President under section 6406(1) of the Farm 
                Security and Rural Investment Act of 2002, the 
                Special Assistant to the President for Rural 
                Policy shall serve as an ex-officio, non-voting 
                member of the National Board.
                    ``(B) Other members.--In consultation with 
                the chairman and ranking member of each of the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate, the Secretary may appoint not more than 
                3 other officers or employees of the Executive 
                Branch to serve as ex-officio, non-voting 
                members of the National Board.
            ``(6) Vacancies.--A vacancy on the National Board 
        shall be filled in the same manner as the original 
        appointment.
            ``(7) Compensation.--A member of the National Board 
        shall receive no compensation for service on the 
        National Board, but shall be reimbursed for travel and 
        other expenses incurred in carrying out the duties of 
        the member of the National Board in accordance with 
        section 5702 and 5703 of title 5, United States Code.
            ``(8) Chairperson.--The National Board shall select 
        a chairperson from among the members of the National 
        Board.
            ``(9) Meetings.--
                    ``(A) Time and place.--The National Board 
                shall meet at the call of the chairperson.
                    ``(B) Quorum.--A quorum of the National 
                Board shall consist of a majority of the 
                members.
                    ``(C) Majority vote.--A decision of the 
                National Board shall be made by majority vote.
            ``(10) Federal status.--For purposes of Federal 
        law, a member of the National Board shall be considered 
        a special Government employee (as defined in section 
        202(a) of title 18, United States Code).
            ``(11) Conflict of interest.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), no member of the National 
                Board shall vote on any matter respecting any 
                application for a grant or other particular 
                matter pending before the National Board 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.
                    ``(B) Violations.--A violation of 
                subparagraph (A) by a member of the National 
                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 
                National Board in which the member 
                participated.
                    ``(C) Exception.--Subparagraph (A) shall 
                not apply to the extent a member of the 
                National Board advises the National Board of 
                the nature of the particular matter in which 
                the member proposes to participate, if--
                            ``(i) the member makes a full 
                        disclosure of the financial interest; 
                        and
                            ``(ii) prior to any participation 
                        by the member, the National Board 
                        determines, by majority vote of the 
                        other members of the National Board, 
                        that the financial interest is too 
                        remote or too inconsequential to affect 
                        the integrity of the services of the 
                        member to the National Board in that 
                        matter.
    ``(c) Administrative Support.--The Secretary, on a 
reimbursable basis, may provide such administrative support to 
the National Board as the Secretary determines is necessary to 
carry out the duties of the National Board.
    ``(d) Duties.--The National Board shall--
            ``(1) certify Regional Boards in accordance with 
        section 385C, with the initial certification of 
        Regional Boards occurring not later than 540 days after 
        the date of enactment of this subtitle;
            ``(2) approve, negotiate, or disapprove each 
        regional plan that is submitted by a Regional Board to 
        the National Board under section 385C;
            ``(3) develop, and submit to the Secretary for 
        approval, a national strategic investment plan;
            ``(4) use the amount received from the Secretary 
        under section 385E to make planning grants and 
        innovation grants to Regional Boards and to otherwise 
        carry out the program;
            ``(5) provide leadership and advice to Regional 
        Boards on issues, best practices, and emerging trends 
        relating to rural development;
            ``(6) evaluate the progress of each Regional Board 
        in achieving the benchmarks of the regional plan using 
        annual reports submitted under section 385C(b)(3)(D) 
        and any other information that is available to the 
        Regional Board; and
            ``(7) submit an annual report on the performance of 
        Regional Boards and the program to--
                    ``(A) the Committee on Agriculture of the 
                House of Representatives;
                    ``(B) the Committee on Agriculture, 
                Nutrition, and Forestry of the Senate; and
                    ``(C) the Secretary.

``SEC. 385E. RURAL STRATEGIC INVESTMENT PROGRAM.

    ``(a) In General.--If the Secretary approves a national 
strategic investment plan submitted by the National Board, of 
the funds of the Commodity Credit Corporation, the Secretary 
shall transfer to the National Board $100,000,000, to remain 
available until expended, for the Board to use to make planning 
grants and innovation grants to Regional Boards and to 
otherwise carry out this subtitle.
    ``(b) Use by National Board.--Of the amount transferred by 
the Secretary to the National Board under subsection (a), the 
National Board shall use--
            ``(1) not less than $8,000,000 to make planning 
        grants to Regional Boards under section 385F;
            ``(2) not less than $87,000,000 to make innovation 
        grants to Regional Boards under section 385G; and
            ``(3) the remainder of the funds to carry out 
        section 385H and administer this subtitle (other than 
        section 385H).

``SEC. 385F. REGIONAL STRATEGIC INVESTMENT PLANNING GRANTS.

    ``(a) In General.--The National Board shall use amounts 
made available under section 385E(b)(1) to make not fewer than 
80 planning grants, on a competitive basis, to applicant 
Regional Boards to develop, maintain, evaluate, and report 
progress on regional strategic investment plans in accordance 
with section 385C and this section.
    ``(b) Regional Plans.--A regional plan for a region covered 
by a Regional Board shall, to the maximum extent practicable, 
cover--
            ``(1) basic infrastructure needs of the region;
            ``(2) basic services within the region;
            ``(3) opportunities for economic diversification 
        and innovation within the region, with particular 
        attention to entrepreneurial support and innovation;
            ``(4) the current and future human resource 
        capacity of the region;
            ``(5) access to market-based financing and venture 
        and equity capital in the region;
            ``(6) the development of innovative public and 
        private collaborations for investments in the region; 
        and
            ``(7) other appropriate matters, as determined by 
        the National Board and the Secretary.
    ``(c) Preferences.--In awarding planning grants, the 
National Board shall give a preference to planning grants that 
will be used to address community capacity building and 
community sustainability.
    ``(d) Amount.--The total amount of a planning grant made to 
a Regional Board shall not exceed $100,000.
    ``(e) Cost Sharing.--
            ``(1) In general.--Subject to paragraphs (2) and 
        (3), the share of the costs of developing, maintaining, 
        evaluating, and reporting on a regional plan funded by 
        a grant under this section shall not exceed 50 percent.
            ``(2) Form.--
                    ``(A) In general. Except as provided in 
                subparagraph (B), a Regional Board shall pay 
                the grantee share of the costs described in 
                paragraph (1) in the form of cash, services, 
                materials, or other in-kind contributions.
                    ``(B) Limitation.--A grantee shall not pay 
                more than 50 percent of the grantee share in 
                the form of services, materials, or other in-
                kind contributions.
            ``(3) Increased share.--The National Board may 
        increase the share of the costs covered by a planning 
        grant made to a Regional Board under this section if a 
        limited ability of the Regional Board to pay would 
        otherwise create a barrier to full participation in the 
        program.

``SEC. 385G. INNOVATION GRANTS.

    ``(a) In General.--The National Board shall use amounts 
made available under section 385E(b)(2) to make innovation 
grants, on a competitive basis, to Regional Boards to implement 
projects that are identified in the regional plans of the 
Regional Boards.
    ``(b) Eligibility.--
            ``(1) In general.--For a Regional Board to be 
        eligible to receive an innovation grant, the National 
        Board shall determine that--
                    ``(A) the regional plan of a Regional Board 
                meets the requirements of this subtitle;
                    ``(B) the management and organizational 
                structure of the Regional Board is sufficient 
                to oversee grant projects;
                    ``(C) the Regional Board will be able to 
                provide the grantee share required under this 
                section; and
                    ``(D) the Regional Board agrees to achieve, 
                to the maximum extent practicable, the 
                performance-based benchmarks of the regional 
                plan.
            ``(2) Relationship to planning grants.--A Regional 
        Board that meets the requirements of paragraph (1) 
        shall be eligible to receive an innovation grant, 
        regardless of whether the Regional Board receives a 
        planning grant.
    ``(c) Selection.--Subject to subsection (d), of the 
applications submitted by Regional Boards for innovation 
grants, the National Board shall, to the maximum extent 
practicable, select not fewer than 30 regional boards to 
receive innovation grants.
    ``(d) Preferences.--In awarding innovation grants, the 
National Board shall give a preference (in order of priority) 
to Regional Boards that--
            ``(1) exhibit collaborative innovation and 
        entrepreneurship, particularly within a public-private 
        partnership;
            ``(2) represent a broad coalition of interests 
        described in section 385C(b)(2)(A);
            ``(3) demonstrate a plan to leverage public 
        (Federal and non-federal) and private funds and 
        existing assets, including natural assets and public 
        infrastructure;
            ``(4) address gaps in existing basic services 
        within a region;
            ``(5) address economic diversification, including 
        agricultural and non-agriculturally based economies, 
        within a regional framework;
            ``(6) demonstrate a plan to achieve 
        multijurisdictional regional planning and development, 
        with particular evidence of economic development 
        successes within diverse stakeholder frameworks; or
            ``(7) meet other community development needs 
        identified by a Regional Board.
    ``(e) Uses.--
            ``(1) Leverage.--A Regional Board shall prioritize 
        projects, in part, on the degree to which the Regional 
        Board is able to leverage additional funds for the 
        implementation of the projects.
            ``(2) Purposes.--A Regional Board may use an 
        innovation grant provided for a region--
                    ``(A) to support the development of 
                critical infrastructure necessary to facilitate 
                economic development in the region;
                    ``(B) to provide assistance to entities 
                within the region that provide basic public 
                services;
                    ``(C) to assist with job training, 
                workforce development, or other needs related 
                to the development and maintenance of strong 
                local and regional economies;
                    ``(D) to assist in the development of 
                unique new collaborations that link public, 
                private, and philanthropic resources to achieve 
                collaboratively designed regional advancement; 
                and
                    ``(E) to provide support to business 
                investment.
            ``(3) Other department programs.--A Regional Board 
        may not use an innovation grant provided for a region 
        for any purpose for which funding may be obtained under 
        any other rural development program of the Department 
        of Agriculture unless--
                    ``(A) the Regional Board--
                            ``(i) has submitted an application 
                        for the funding under the other 
                        program; and
                            ``(ii) withdraws the application; 
                        and
                    ``(B) the National Board approves use of 
                the innovation grant for that purpose.
            ``(4) Operating expenses.--A Regional Board may use 
        for administrative costs in carrying out programs and 
        activities related to the grant the greater of--
                    ``(A) $100,000; or
                    ``(B) 5 percent of the amount of an 
                innovation grant provided.
    ``(f) Amount.--
            ``(1) In general.--The amount of an innovation 
        grant made to a Regional Board shall not exceed 
        $3,000,000.
            ``(2) Availability.--The amount of an innovation 
        grant made to a Regional Board shall remain available 
        until expended.
    ``(g) Cost Sharing.--
            ``(1) In general.--Subject to paragraphs (2) and 
        (3), the share of the costs of projects covered by an 
        innovation grant made to a Regional Board under this 
        section shall not exceed 75 percent, as determined by 
        the National Board.
            ``(2) Form.--A Regional Board may pay the grantee 
        share of the costs of projects covered by an innovation 
        grant in the form of cash or services, materials, or 
        other in-kind contributions.
            ``(3) Waiver of grantee share.--The National Board 
        may waive the grantee share of the costs of projects 
        covered by an innovation grant made to a Regional Board 
        under this section if the National Board determines 
        that such a waiver is appropriate.
            ``(4) Other federal programs.--For the purpose of 
        determining grantee share requirements for any other 
        Federal programs, funds provided for innovation grants 
        shall be considered to be non-Federal funds.
    ``(h) Negotiation.--The National Board may--
            ``(1) negotiate with a Regional Board on the 
        substance, size, and scope of a regional plan; and
            ``(2) approve an innovation grant for an amount 
        that is lower than the amount requested by the Regional 
        Board.
    ``(i) Noncompliance.--If a Regional Board fails to comply 
with the requirements of this section, the National Board may 
take such actions as are necessary to obtain reimbursement of 
unused grant funds.
    ``(j) Other Uses.--The National Board may use not more than 
5 percent of the amounts made available for innovation grants--
            ``(1) to provide assistance to interests described 
        in section 385C(b)(2)(A) to obtain certification of a 
        Regional Board;
            ``(2) to provide assistance for emergent innovative 
        opportunities that are not covered by existing regional 
        plans;
            ``(3) to provide technical assistance, research, 
        organizational support, and other capacity building 
        infrastructure to support existing Regional Boards;
            ``(4) to provide assistance for other 
        entrepreneurial opportunities to advance the goals of 
        the program; or
            ``(5) to advance a more integrative rural policy 
        framework for the United States.
    ``(k) Transfers.--To ensure maximum use of funds provided 
under this subtitle, the National Board may transfer not more 
than 10 percent of the amount of funds made available between 
planning grants and innovation grants.

``SEC. 385H. NATIONAL CONFERENCE ON RURAL AMERICA.

    ``(a) In General.--The President shall call and conduct a 
National Conference on Rural America, which shall be held not 
earlier than November 1, 2002, and not later than October 30, 
2004.
    ``(b) Purpose.--The purpose of the Conference shall be to 
bring together the resources of governmental agencies and the 
private and nonprofit sectors to develop--
            ``(1) policy recommendations and integrative 
        strategies for addressing the unique challenges facing 
        rural areas of the United States; and
            ``(2) an implementation plan, with outcome-based 
        measurements, for addressing the challenges.
    ``(c) Composition.--
            ``(1) In general.--The Conference shall be 
        comprised of--
                    ``(A) representatives of organizations 
                devoted to rural development;
                    ``(B) Members of Congress, including the 
                chairman and ranking member of each of the 
                Committee on Agriculture of the House of 
                Representatives and the Committee on 
                Agriculture, Nutrition, and Forestry of the 
                Senate;
                    ``(C) representatives of the Department of 
                Agriculture and other Federal agencies;
                    ``(D) State, local, and tribal elected 
                officials and representatives;
                    ``(E) representatives of colleges and 
                universities, State and tribal extension 
                services, and State rural development councils; 
                and
                    ``(F) individuals with specialized 
                knowledge of and expertise in rural and 
                community development, cooperative business, 
                agricultural credit, venture capital, health 
                care, and rural demography.
            ``(2) Selection.--Of the participants in the 
        Conference described in paragraph (1)--
                    ``(A) \1/3\ of the members shall be 
                selected by the President;
                    ``(B) \1/3\ of the members shall be 
                selected by the Chairman and the ranking member 
                of the Committee on Agriculture of the House of 
                Representatives; and
                    ``(C) \1/3\ of the members shall be 
                selected by the Chairman and the ranking member 
                of the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate.
            ``(3) Representation.--In selecting the 
        participants of the Conference, the President and the 
        Chairman of each Committee referred to in paragraph (2) 
        shall ensure, to the maximum extent practicable, that 
        the participants are representative of the ethnic, 
        racial, and linguistic diversity of rural areas of the 
        United States.
    ``(d) Report.--
            ``(1) Report to president.--Not later than 120 days 
        after the termination of the Conference, the Conference 
        shall submit to the President a report that contains 
        the findings and recommendations of the Conference, 
        including findings and recommendations to address needs 
        related to--
                    ``(A) telecommunications;
                    ``(B) rural health issues;
                    ``(C) transportation;
                    ``(D) opportunities for economic 
                diversification and innovation within rural 
                America, with particular attention to 
                entrepreneurial support and innovation;
                    ``(E) the current and future human resource 
                capacity of rural America;
                    ``(F) access to market-based financing and 
                venture and equity capital in rural America; 
                and
                    ``(G) the development of innovative public 
                and private collaborations for investments in 
                rural America.
            ``(2) Report made public and to congress.--Not 
        later than 90 days after receipt by the President, the 
        President shall--
                    ``(A) make the report public; and
                    ``(B) transmit to the Committee on 
                Agriculture of the House of Representatives and 
                the Committee on Agriculture, Nutrition, and 
                Forestry of the Senate a copy of the report and 
                a statement of the President containing 
                recommendations for implementing the report.
            ``(3) Publication and distribution.--
                    ``(A) In general.--The Conference shall 
                publish and distribute the report described in 
                paragraph (1).
                    ``(B) Mandatory distribution.--The 
                Conference shall provide a copy of a report 
                published under subparagraph (A), at no cost, 
                to--
                            ``(i) each Federal depository 
                        library; and
                            ``(ii) on request, each State, 
                        tribal, and local elected official in a 
                        rural area of the United States.
    ``(e) Funding.--Not later than 180 days after the 
establishment of the National Board, the National Board shall 
transfer not more than $2,000,000 to the Office of the 
President to carry out this section, to remain available until 
expended.''.

SEC. 6031. FUNDING OF PENDING RURAL DEVELOPMENT LOAN AND GRANT 
                    APPLICATIONS.

    (a) Definition of Application.--In this section, the term 
``application'' does not include an application for a loan or 
grant that, as of the date of enactment of this Act, is in the 
preapplication phase of consideration under regulations of the 
Secretary of Agriculture in effect on the date of enactment of 
this Act.
    (b) Use of Funds.--Subject to subsection (c), the Secretary 
of Agriculture shall use funds made available under subsection 
(d) to provide funds for applications that are pending on the 
date of enactment of this Act for--
            (1) water or waste disposal grants or direct loans 
        under paragraph (1) or (2) of section 306(a) of the 
        Consolidated Farm and Rural Development Act (7 U.S.C. 
        1926(a)); and
            (2) emergency community water assistance grants 
        under section 306A of that Act (7 U.S.C. 1926a).
    (c) Limitations.--
            (1) Appropriated amounts.--Funds made available 
        under this section shall be available to the Secretary 
        to provide funds for applications for loans and grants 
        described in subsection (b) that are pending on the 
        date of enactment of this Act only to the extent that 
        funds for the loans and grants appropriated in the 
        annual appropriations Act for fiscal year 2002 have 
        been exhausted.
            (2) Program requirements.--The Secretary may use 
        funds made available under this section to provide 
        funds for a pending application for a loan or grant 
        described in subsection (b) only if the Secretary 
        processes, reviews, and approves the application in 
        accordance with regulations in effect on the date of 
        enactment of this Act.
            (3) Priority.--In providing funding under this 
        section for pending applications for loans or grants 
        described in subsection (b), the Secretary shall 
        provide funding in the following order of priority 
        (until funds made available under this section are 
        exhausted):
                    (A) Pending applications for water systems.
                    (B) Pending applications for waste disposal 
                systems.
    (d) Funding.--Notwithstanding any other provision of law, 
of the funds of the Commodity Credit Corporation, the Secretary 
shall use $360,000,000 to carry out this section, to remain 
available until expended.

             Subtitle B--Rural Electrification Act of 1936

SEC. 6101. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION OR 
                    TELEPHONE PURPOSES.

    (a) In General.--The Rural Electrification Act of 1936 is 
amended by inserting after section 313 (7 U.S.C. 940c) the 
following:

``SEC. 313A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR ELECTRIFICATION 
                    OR TELEPHONE PURPOSES.

    ``(a) In General.--Subject to subsection (b), the Secretary 
shall guarantee payments on bonds or notes issued by 
cooperative or other lenders organized on a not-for-profit 
basis if the proceeds of the bonds or notes are used to make 
loans for any electrification or telephone purpose eligible for 
assistance under this Act, including section 4 or 201 or to 
refinance bonds or notes issued for such purposes.
    ``(b) Limitations.--
            ``(1) Outstanding loans.--A lender shall not 
        receive a guarantee under this section for a bond or 
        note if, at the time of the guarantee, the total 
        principal amount of such guaranteed bonds or notes 
        outstanding of the lender would exceed the principal 
        amount of outstanding loans of the lender for 
        electrification or telephone purposes that have been 
        made concurrently with loans approved for such purposes 
        under this Act.
            ``(2) Generation of electricity.--The Secretary 
        shall not guarantee payment on a bond or note issued by 
        a lender, the proceeds of which are used for the 
        generation of electricity.
            ``(3) Qualifications.--The Secretary may deny the 
        request of a lender for the guarantee of a bond or note 
        under this section if the Secretary determines that--
                    ``(A) the lender does not have appropriate 
                expertise or experience or is otherwise not 
                qualified to make loans for electrification or 
                telephone purposes;
                    ``(B) the bond or note issued by the lender 
                would not be investment grade quality without a 
                guarantee; or
                    ``(C) the lender has not provided to the 
                Secretary a list of loan amounts approved by 
                the lender that the lender certifies are for 
                eligible purposes described in subsection (a).
            ``(4) Interest rate reduction.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a lender may not use any 
                amount obtained from the reduction in funding 
                costs as a result of the guarantee of a bond or 
                note under this section to reduce the interest 
                rate on a new or outstanding loan.
                    ``(B) Concurrent loans.--A lender may use 
                any amount described in subparagraph (A) to 
                reduce the interest rate on a loan if the loan 
                is--
                            ``(i) made by the lender for 
                        electrification or telephone projects 
                        that are eligible for assistance under 
                        this Act; and
                            ``(ii) made concurrently with a 
                        loan approved by the Secretary under 
                        this Act for such a project, as 
                        provided in section 307.
    ``(c) Fees.--
            ``(1) In general.--A lender that receives a 
        guarantee issued under this section on a bond or note 
        shall pay a fee to the Secretary.
            ``(2) Amount.--The amount of an annual fee paid for 
        the guarantee of a bond or note under this section 
        shall be equal to 30 basis points of the amount of the 
        unpaid principal of the bond or note guaranteed under 
        this section.
            ``(3) Payment.--A lender shall pay the fees 
        required under this subsection on a semiannual basis.
            ``(4) Rural economic development subaccount.--
        Subject to subsection (e)(2), fees collected under this 
        subsection shall be--
                    ``(A) deposited into the rural economic 
                development subaccount maintained under section 
                313(b)(2)(A), to remain available until 
                expended; and
                    ``(B) used for the purposes described in 
                section 313(b)(2)(B).
    ``(d) Guarantees.--
            ``(1) In general.--A guarantee issued under this 
        section shall--
                    ``(A) be for the full amount of a bond or 
                note, including the amount of principal, 
                interest, and call premiums;
                    ``(B) be fully assignable and transferable; 
                and
                    ``(C) represent the full faith and credit 
                of the United States.
            ``(2) Limitation.--To ensure that the Secretary has 
        the resources necessary to properly examine the 
        proposed guarantees, the Secretary may limit the number 
        of guarantees issued under this section to 5 per year.
            ``(3) Department opinion.--On the timely request of 
        a lender, the General Counsel of the Department of 
        Agriculture shall provide the Secretary with an opinion 
        regarding the validity and authority of a guarantee 
        issued to the lender under this section.
    ``(e) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be 
        appropriated such sums as are necessary to carry out 
        this section.
            ``(2) Fees.--To the extent that the amount of funds 
        appropriated for a fiscal year under paragraph (1) are 
        not sufficient to carry out this section, the Secretary 
        may use up to \1/3\ of the fees collected under 
        subsection (c) for the cost of providing guarantees of 
        bonds and notes under this section before depositing 
        the remainder of the fees into the rural economic 
        development subaccount maintained under section 
        313(b)(2)(A).
    ``(f) Termination.--The authority provided under this 
section shall terminate on September 30, 2007.''.
    (b) Administration.--
            (1) Regulations.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary of 
        Agriculture shall promulgate regulations to carry out 
        the amendments made by this section.
            (2) Implementation.--Not later than 240 days after 
        the date of enactment of this Act, the Secretary shall 
        implement the amendment made by this section.

SEC. 6102. EXPANSION OF 911 ACCESS.

    Title III of the Rural Electrification Act of 1936 (7 
U.S.C. 931 et seq.) is amended by adding at the end the 
following:

``SEC. 315. EXPANSION OF 911 ACCESS.

    ``(a) In General.--Subject to such terms and conditions as 
the Secretary may prescribe, the Secretary may make telephone 
loans under this title to borrowers of loans made by the Rural 
Utilities Service, State or local governments, Indian tribes 
(as defined in section 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b)), or other public 
entities for facilities and equipment to expand or improve 911 
access and integrated emergency communications systems in rural 
areas.
    ``(b) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for each of fiscal years 2002 through 
2007.''.

SEC. 6103. ENHANCEMENT OF ACCESS TO BROADBAND SERVICE IN RURAL AREAS.

    (a) In General.--The Rural Electrification Act of 1936 (7 
U.S.C. 901 et seq.) is amended by adding at the end the 
following:

                   ``TITLE VI--RURAL BROADBAND ACCESS

``SEC. 601. ACCESS TO BROADBAND TELECOMMUNICATIONS SERVICES IN RURAL 
                    AREAS.

    ``(a) Purpose.--The purpose of this section is to provide 
loans and loan guarantees to provide funds for the costs of the 
construction, improvement, and acquisition of facilities and 
equipment for broadband service in eligible rural communities.
    ``(b) Definitions.--In this section:
            ``(1) Broadband service.--The term `broadband 
        service' means any technology identified by the 
        Secretary as having the capacity to transmit data to 
        enable a subscriber to the service to originate and 
        receive high-quality voice, data, graphics, and video.
            ``(2) Eligible rural community.--The term `eligible 
        rural community' means any incorporated or 
        unincorporated place that--
                    ``(A) has not more than 20,000 inhabitants, 
                based on the most recent available population 
                statistics of the Bureau of the Census; and
                    ``(B) is not located in an area designated 
                as a standard metropolitan statistical area.
    ``(c) Loans and Loan Guarantees.--
            ``(1) In general.--The Secretary shall make or 
        guarantee loans to eligible entities described in 
        subsection (d) to provide funds for the construction, 
        improvement, or acquisition of facilities and equipment 
        for the provision of broadband service in eligible 
        rural communities.
            ``(2) Priority.--In making or guaranteeing loans 
        under paragraph (1), the Secretary shall give priority 
        to eligible rural communities in which broadband 
        service is not available to residential customers.
    ``(d) Eligible Entities.--
            ``(1) In general.--To be eligible to obtain a loan 
        or loan guarantee under this section, an entity shall--
                    ``(A) have the ability to furnish, improve, 
                or extend a broadband service to an eligible 
                rural community; and
                    ``(B) submit to the Secretary a proposal 
                for a project that meets the requirements of 
                this section.
            ``(2) State and local governments.--A State or 
        local government (including any agency, subdivision, or 
        instrumentality thereof (including consortia thereof)) 
        shall be eligible for a loan or loan guarantee under 
        this section to provide broadband services to an 
        eligible rural community only if, not later than 90 
        days after the Administrator has promulgated 
        regulations to carry out this section, no other 
        eligible entity is already offering, or has committed 
        to offer, broadband services to the eligible rural 
        community.
            ``(3) Subscriber lines.--An entity shall not be 
        eligible to obtain a loan or loan guarantee under this 
        section if the entity serves more than 2 percent of the 
        telephone subscriber lines installed in the aggregate 
        in the United States.
    ``(e) Broadband Service.--The Secretary shall, from time to 
time as advances in technology warrant, review and recommend 
modifications of rate-of-data transmission criteria for 
purposes of the identification of broadband service 
technologies under subsection (b)(1).
    ``(f) Technological Neutrality.--For purposes of 
determining whether or not to make a loan or loan guarantee for 
a project under this section, the Secretary shall use criteria 
that are technologically neutral.
    ``(g) Terms and Conditions for Loans and Loan Guarantees.--
Notwithstanding any other provision of law, a loan or loan 
guarantee under subsection (c) shall--
            ``(1) bear interest at an annual rate of, as 
        determined by the Secretary--
                    ``(A) in the case of a direct loan--
                            ``(i) the cost of borrowing to the 
                        Department of the Treasury for 
                        obligations of comparable maturity; or
                            ``(ii) 4 percent; and
                    ``(B) in the case of a guaranteed loan, the 
                current applicable market rate for a loan of 
                comparable maturity; and
            ``(2) have a term not to exceed the useful life of 
        the assets constructed, improved, or acquired with the 
        proceeds of the loan or extension of credit.
    ``(h) Use of Loan Proceeds To Refinance Loans for 
Deployment of Broadband Service.--Notwithstanding any other 
provision of this Act, the proceeds of any loan made or 
guaranteed by the Secretary under this Act may be used by the 
recipient of the loan for the purpose of refinancing an 
outstanding obligation of the recipient on another 
telecommunications loan made under this Act if the use of the 
proceeds for that purpose will further the construction, 
improvement, or acquisition of facilities and equipment for the 
provision of broadband service in eligible rural communities.
    ``(i) Reports.--Not later than 1 year after the date of 
enactment of this section, and biennially thereafter, the 
Administrator shall submit to Congress a report that--
            ``(1) describes how the Administrator determines 
        under subsection (a)(1) that a service enables a 
        subscriber to originate and receive high-quality voice, 
        data, graphics, and video; and
            ``(2) provides a detailed list of services that 
        have been granted assistance under this section.
    ``(j) Funding.--
            ``(1) In general.--Notwithstanding any other 
        provision of law, of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to 
        carry out this section--
                    ``(A) $20,000,000 for each of fiscal years 
                2002 through 2005, to remain available until 
                expended; and
                    ``(B) $10,000,000 for each of fiscal years 
                2006 and 2007, to remain available until 
                expended.
            ``(2) Television funds.--
                    ``(A) In general.--The Secretary shall be 
                entitled to receive, shall accept, and shall 
                use to carry out this section, without further 
                appropriation any funds made available under 
                section 1011(a)(2)(B) of the Launching Our 
                Communities' Access to Local Television Act of 
                2000 (47 U.S.C. 1109(a)(2)(B)).
                    ``(B) Use of television funds.--The 
                Secretary shall use any funds received under 
                subparagraph (A) in equal amounts for each 
                remaining fiscal year on receipt of the funds 
                (including the fiscal year of receipt) through 
                fiscal year 2007.
            ``(3) Authorization of appropriations.--In addition 
        to funds otherwise made available under this 
        subsection, there are authorized to be appropriated 
        such sums as necessary to carry out this section for 
        each of fiscal years 2003 through 2007.
            ``(4) Allocation of funds.--
                    ``(A) In general.--From amounts made 
                available for each fiscal year under this 
                subsection, the Secretary shall--
                            ``(i) establish a national reserve 
                        for loans and loan guarantees to 
                        eligible entities in States under this 
                        section; and
                            ``(ii) allocate amounts in the 
                        reserve to each State for each fiscal 
                        year for loans and loan guarantees to 
                        eligible entities in the State.
                    ``(B) Amount.--The amount of an allocation 
                made to a State for a fiscal year under 
                subparagraph (A) shall bear the same ratio to 
                the amount of allocations made for all States 
                for the fiscal year as the number of 
                communities with a population of 2,500 
                inhabitants or less in the State bears to the 
                number of communities with a population of 
                2,500 inhabitants or less in all States, as 
                determined on the basis of the latest available 
                census.
                    ``(C) Unobligated amounts.--Any amounts in 
                the reserve established for a State for a 
                fiscal year under subparagraph (B) that are not 
                obligated by April 1 of the fiscal year shall 
                be available to the Secretary to make loans and 
                loan guarantees under this section to eligible 
                entities in any State, as determined by the 
                Secretary.
    ``(k) Termination of Authority.--No loan or loan guarantee 
may be made under this section after September 30, 2007.''.
    (b) Regulations.--
            (1) In general.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary of 
        Agriculture shall promulgate such regulations as are 
        necessary to implement the amendment made by subsection 
        (a).
            (2) Procedure.--The promulgation of the regulations 
        shall be made without regard to--
                    (A) the notice and comment provisions of 
                section 553 of title 5, United States Code;
                    (B) the Statement of Policy of the 
                Secretary of Agriculture effective July 24, 
                1971 (36 Fed. Reg. 13804), relating to notices 
                of proposed rulemaking and public participation 
                in rulemaking; and
                    (C) chapter 35 of title 44, United States 
                Code (commonly known as the ``Paperwork 
                Reduction Act'').
            (3) Congressional review of agency rulemaking.--In 
        carrying out this subsection, the Secretary shall use 
        the authority provided under section 808 of title 5, 
        United States Code.

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

SEC. 6201. ALTERNATIVE AGRICULTURAL RESEARCH AND COMMERCIALIZATION 
                    CORPORATION.

    (a) Repeal of Corporation Authorization.--Subtitle G of 
title XVI of the Food, Agriculture, Conservation, and Trade Act 
of 1990 (7 U.S.C. 5901 et seq.) is repealed.
    (b) Disposition of Assets.--On the date of enactment of 
this Act--
            (1) the assets, both tangible and intangible, of 
        the Alternative Agricultural Research and 
        Commercialization Corporation (referred to in this 
        section as the ``Corporation''), including the funds in 
        the Alternative Agricultural Research and 
        Commercialization Revolving Fund as of the date of 
        enactment of this Act, are transferred to the Secretary 
        of Agriculture; and
            (2) notwithstanding the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 471 et 
        seq.) and any other law that prescribes procedures for 
        procurement, use, and disposal of property by a Federal 
        agency, the Secretary shall have authority to manage 
        and dispose of the assets transferred under paragraph 
        (1) in a manner that, to the maximum extent 
        practicable, provides the best value to the Federal 
        Government.
    (c) Use of Assets.--
            (1) In general.--Funds transferred under subsection 
        (b), and any income from assets or proceeds from the 
        sale of assets transferred under subsection (b), shall 
        be deposited in an account in the Treasury, and shall 
        remain available to the Secretary until expended, 
        without further appropriation, to pay--
                    (A) any claims against, or obligations of, 
                the Corporation; and
                    (B) the costs incurred by the Secretary in 
                carrying out this section.
            (2) Final disposition.--On final disposition of all 
        assets transferred under subsection (b), any funds 
        remaining in the account described in paragraph (1) 
        shall be transferred into miscellaneous receipts in the 
        Treasury.
    (d) Conforming Amendments.--
            (1) Section 5315 of title 5, United States Code, is 
        amended by striking ``Executive Director of the 
        Alternative Agricultural Research and Commercialization 
        Corporation''.
            (2) Section 730 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 5902 note; 
        Public Law 104-127) is repealed.
            (3) Section 211(b) of the Department of Agriculture 
        Reorganization Act of 1994 (7 U.S.C. 6911(b)) is 
        amended by striking paragraph (5).
            (4) Section 404(d) of the Agricultural Research, 
        Extension, and Education Reform Act of 1998 (7 U.S.C. 
        7624(d)) is amended--
                    (A) by striking paragraph (2); and
                    (B) by redesignating paragraphs (3) and (4) 
                as paragraphs (2) and (3), respectively.
            (5) The Herger-Feinstein Quincy Library Group 
        Forest Recovery Act (16 U.S.C. 2104; Public Law 105-
        277; 112 Stat. 2681-305) is amended by striking 
        subsection (m).
            (6) Section 9101(3) of title 31, United States 
        Code, is amended by striking subparagraph (Q).

SEC. 6202. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

    Subtitle H of title XVI of the Food, Agriculture, 
Conservation, and Trade Act of 1990 is amended by inserting 
after section 1669 (7 U.S.C. 5922) the following:

``SEC. 1670. RURAL ELECTRONIC COMMERCE EXTENSION PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Development center.--The term `development 
        center' means--
                    ``(A) the North Central Regional Center for 
                Rural Development;
                    ``(B) the Northeast Regional Center for 
                Rural Development or its designee;
                    ``(C) the Southern Rural Development 
                Center; and
                    ``(D) the Western Rural Development Center 
                or its designee.
            ``(2) Extension program.--The term `extension 
        program' means the rural electronic commerce extension 
        program established under subsection (b).
            ``(3) Microenterprise.--The term `microenterprise' 
        means a commercial enterprise that has 5 or fewer 
        employees, 1 or more of whom own the enterprise.
            ``(4) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture, acting through the 
        Administrator of the Cooperative State Research, 
        Education, and Extension Service.
            ``(5) Small business.--The term `small business' 
        has the meaning given the term `small-business concern' 
        by section 3(a) of the Small Business Act (15 U.S.C. 
        632(a)).
    ``(b) Establishment.--The Secretary shall establish a rural 
electronic commerce extension program to expand and enhance 
electronic commerce practices and technology to be used by 
small businesses and microenterprises in rural areas.
    ``(c) Grants.--
            ``(1) In general.--The Secretary shall carry out 
        the program established under subsection (b) by 
        making--
                    ``(A) grants to each of the development 
                centers; and
                    ``(B) competitive grants to land-grant 
                colleges and universities (or consortia of 
                land-grant colleges and universities) and to 
                colleges and universities (including community 
                colleges) with agricultural or rural 
                development programs--
                            ``(i) to develop and facilitate 
                        innovative rural electronic commerce 
                        business strategies; and
                            ``(ii) to assist small businesses 
                        and microenterprises in identifying, 
                        adapting, implementing, and using 
                        electronic commerce business practices 
                        and technologies.
            ``(2) Eligibility.--The selection criteria 
        established for grants awarded under paragraph (1)(B) 
        shall include--
                    ``(A) the ability of an applicant to 
                provide training and education on best 
                practices, technology transfer, adoption, and 
                use of electronic commerce in rural communities 
                by small businesses and microenterprises;
                    ``(B) the extent and geographic diversity 
                of the area served by the proposed project or 
                activity under the extension program;
                    ``(C) in the case of a land-grant college 
                or university, the extent of participation of 
                the land-grant college or university in the 
                extension program (including any economic 
                benefits that would result from that 
                participation);
                    ``(D) the percentage of funding and in-kind 
                commitments from non-Federal sources that would 
                be needed by and available for a proposed 
                project or activity under the extension 
                program; and
                    ``(E) the extent of participation of low-
                income and minority businesses or 
                microenterprises in a proposed project or 
                activity under the extension program.
            ``(3) Non-federal share.--
                    ``(A) In general.--As a condition of the 
                receipt of funds under this section, a 
                development center or grant applicant shall 
                agree to obtain from non-Federal sources 
                (including State, local, nonprofit, or private 
                sector sources) contributions of an amount 
                equal to 50 percent of the grant amount.
                    ``(B) Form.--The non-Federal share required 
                under subparagraph (A) may be provided in the 
                form of in-kind contributions.
                    ``(C) Exception.--The non-Federal share 
                required under subparagraph (A) may be reduced 
                to 25 percent if the grant recipient serves 
                low-income or minority-owned businesses or 
                microenterprises, as determined by the 
                Secretary.
    ``(d) Report.--Not later than 2 years after the date of 
enactment of this section, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes--
            ``(1) the policies, practices, and procedures used 
        to assist rural communities in efforts to adopt and use 
        electronic commerce techniques; and
    ``(e) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $60,000,000 for 
each of fiscal years 2002 through 2007, of which not less than 
\1/3\ of the amount made available for each fiscal year shall 
be used to carry out activities under subsection (c)(1)(A).''.

SEC. 6203. TELEMEDICINE AND DISTANCE LEARNING SERVICES IN RURAL AREAS.

    (a) In General.--Section 2335A of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 950aaa-5) is 
amended by striking ``2002'' and inserting ``2007''.
    (b) Conforming Amendment.--Section 1(b) of Public Law 102-
551 (7 U.S.C. 950aaa note) is amended by striking ``1997'' and 
inserting ``2007''.

            Subtitle D--SEARCH Grants for Small Communities

SEC. 6301. DEFINITIONS.

    In this subtitle:
            (1) Council.--The term ``council'' means an 
        independent citizens' council established by a State 
        rural development director under section 6302(c).
            (2) Environmental project.--
                    (A) In general.--The term ``environmental 
                project'' means a project that--
                            (i) improves environmental quality; 
                        and
                            (ii) is necessary to comply with an 
                        applicable environmental law (including 
                        a regulation).
                    (B) Inclusion.--The term ``environmental 
                project'' includes an initial feasibility study 
                of a project.
            (3) Region.--The term ``region'' means a geographic 
        area of a State, as determined by the State rural 
        development director, in coordination with the 
        environmental protection director of the State.
            (4) SEARCH grant.--The term ``SEARCH grant'' means 
        a grant awarded under section 6302(f).
            (5) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (6) Small community.--The term ``small community'' 
        means an incorporated or unincorporated rural community 
        with a population of 2,500 inhabitants or less.
            (7) State.--The term ``State'' has the meaning 
        given the term in section 381A of the Consolidated Farm 
        and Rural Development Act (7 U.S.C. 2009).

SEC. 6302. SEARCH GRANT PROGRAM.

    (a) In General.--The Secretary, in coordination with the 
Administrator of the Environmental Protection Agency, may 
establish the SEARCH grant program.
    (b) Allocation to State Rural Development Directors.--
            (1) In general.--Subject to paragraph (2) and 
        section 6304(a)(2), not later than 60 days after the 
        date on which the Director of the Office of Management 
        and Budget apportions any amounts made available under 
        this subtitle for any of fiscal years 2002 through 
        2007, the Secretary, on request of a State rural 
        development director (in coordination with the 
        environmental protection director of the State), shall 
        allocate to the State rural development director an 
        amount not to exceed $1,000,000, to be used by the 
        State rural development director to award SEARCH grants 
        under subsection (d).
            (2) Grants to states.--The total amount of funds 
        allocated to State rural development directors in all 
        States other than Alaska, Hawaii, or the 48 contiguous 
        States for a fiscal year under this subsection shall 
        not exceed $1,000,000.
    (c) Independent Citizens' Council.--
            (1) Establishment.--The State rural development 
        director of a State shall establish an independent 
        citizens' council to carry out the duties described in 
        this section.
            (2) Composition.--
                    (A) In general.--A council shall be 
                composed of 9 members, appointed by the State 
                rural development director, in coordination 
                with the environmental protection director of 
                the State.
                    (B) Representation; residence.--Each member 
                of a council shall--
                            (i) represent an individual region 
                        of the State, as determined by the 
                        State rural development director; and
                            (ii) reside in a small community in 
                        the State.
    (d) Eligibility.--A SEARCH grant shall be awarded under 
this section only to a small community for 1 or more 
environmental projects for which the small community--
            (1) needs funds to carry out initial feasibility or 
        environmental studies as required by Federal or State 
        law before applying to traditional funding sources; and
            (2) demonstrates that the small community has been 
        unable to obtain sufficient funding from traditional 
        funding sources.
    (e) Applications.--To be eligible to receive a SEARCH 
grant, a small community in a State shall submit to the State 
rural development director of the State an application that 
includes--
            (1) a description of the proposed environmental 
        project (including an explanation of how the project 
        would assist the small community in complying with a 
        Federal or State environmental law (including a 
        regulation);
            (2) an explanation of why the project is important 
        to the small community;
            (3) a description of all actions taken with respect 
        to the project as of the date of the application, 
        including any attempt to secure funding; and
            (4) a description of demonstrated need for funding 
        for the project.
    (f) Awards.--
            (1) In general.--Not later than May 1 of each 
        fiscal year, a State rural development director, in 
        coordination with the council and the environmental 
        protection director of the State, shall--
                    (A) review all applications received by the 
                State rural development director under 
                subsection (e); and
                    (B) award SEARCH grants to small 
                communities based on--
                            (i) an evaluation of whether the 
                        proposed project meets the eligibility 
                        criteria under subsection (d); and
                            (ii) the content of the 
                        application.
            (2) Administration.--In awarding a SEARCH grant, a 
        State rural development director--
                    (A) shall award the funds for any 
                recommended environmental project in a timely 
                and expeditious manner; and
                    (B) shall not award a SEARCH grant to a 
                grantee or project in violation of any Federal 
                or State law (including a regulation).
            (3) Matching requirement.--A small community that 
        receives a SEARCH grant under this section may be 
        required to provide matching funds.
    (g) Unexpended Funds.--
            (1) In general.--If, for any fiscal year, any 
        unexpended funds remain after SEARCH grants are awarded 
        by a State rural development director under subsection 
        (f), the State rural development director, in 
        coordination with the environmental protection director 
        of the State, may repeat the application and review 
        process so that any remaining funds are recommended for 
        award, and awarded, not later than July 30 of the 
        fiscal year.
            (2) Retention of funds.--
                    (A) In general.--Any unexpended funds that 
                are not awarded under subsection (f) or 
                paragraph (1) shall be retained by the State 
                rural development director for award during the 
                following fiscal year.
                    (B) Limitation.--A State SEARCH account 
                that accumulates a balance of unexpended funds 
                described in subparagraph (A) in excess of 
                $2,000,000 shall be ineligible to receive 
                additional funds for SEARCH grants until such 
                time as the State rural development director 
                awards grants in the amount of the excess.

SEC. 6303. REPORT.

    Not later than 30 days after the end of the first fiscal 
year for which SEARCH grants are awarded, and annually 
thereafter, the Secretary shall submit to the Committee on 
Energy and Commerce and the Committee on Agriculture of the 
House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate a report that--
            (1) describes the number of SEARCH grants awarded 
        during the fiscal year;
            (2) identifies each small community that received a 
        SEARCH grant during the fiscal year;
            (3) describes the project or purpose for which each 
        SEARCH grant was awarded, including a statement of the 
        benefit to public health or the environment of the 
        environmental project receiving the grant funds; and
            (4) describes the status of each project or portion 
        of a project for which a SEARCH grant was awarded, 
        including a project or portion of a project for which a 
        SEARCH grant was awarded for any previous fiscal year.

SEC. 6304. FUNDING.

    (a) Allocation to State Rural Development Directors.--
            (1) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out section 
        6302(b) $51,000,000 for each of fiscal years 2002 
        through 2007, of which not to exceed $1,000,000 shall 
        be used to make grants under section 6302(b)(2).
            (2) Actual appropriation.--If funds to carry out 
        section 6302(b) are made available for a fiscal year in 
        an amount that is less than the amount authorized under 
        paragraph (1) for the fiscal year, the Secretary shall 
        divide the appropriated funds for the fiscal year 
        equally among the 50 States.
    (b) Other Expenses.--There are authorized to be 
appropriated such sums as are necessary to carry out this 
subtitle (other than section 6302(b)).

                       Subtitle E--Miscellaneous

SEC. 6401. VALUE-ADDED AGRICULTURAL PRODUCT MARKET DEVELOPMENT GRANTS.

    (a) In General.--Section 231 of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 1621 note; Public Law 106-224) 
is amended--
            (1) by redesignating subsections (b) through (d) as 
        subsections (c) through (e), respectively;
            (2) by striking subsection (a) and inserting the 
        following:
    ``(a) Definition of Value-Added Agricultural Product.--
            ``(1) In general.--The term `value-added 
        agricultural product' means any agricultural commodity 
        or product that--
                    ``(A)(i) has undergone a change in physical 
                state;
                    ``(ii) was produced in a manner that 
                enhances the value of the agricultural 
                commodity or product, as demonstrated through a 
                business plan that shows the enhanced value, as 
                determined by the Secretary; or
                    ``(iii) is physically segregated in a 
                manner that results in the enhancement of the 
                value of the agricultural commodity or product; 
                and
                    ``(B) as a result of the change in physical 
                state or the manner in which the agricultural 
                commodity or product was produced or 
                segregated--
                            ``(i) the customer base for the 
                        agricultural commodity or product has 
                        been expanded; and
                            ``(ii) a greater portion of the 
                        revenue derived from the marketing, 
                        processing, or physical segregation of 
                        the agricultural commodity or product 
                        is available to the producer of the 
                        commodity or product.
            ``(2) Inclusion.--The term `value-added 
        agricultural product' includes farm- or ranch-based 
        renewable energy.
    ``(b) Grant Program.--
            ``(1) In general.--From amounts made available 
        under paragraph (4), the Secretary shall award 
        competitive grants--
                    ``(A) to an eligible independent producer 
                (as determined by the Secretary) of a value-
                added agricultural product to assist the 
                producer--
                            ``(i) in developing a business plan 
                        for viable marketing opportunities for 
                        the value-added agricultural product; 
                        or
                            ``(ii) in developing strategies 
                        that are intended to create marketing 
                        opportunities for the producer; and
                    ``(B) to an eligible agricultural producer 
                group, farmer or rancher cooperative, or 
                majority-controlled producer-based business 
                venture (as determined by the Secretary) to 
                assist the entity--
                            ``(i) in developing a business plan 
                        for viable marketing opportunities in 
                        emerging markets for a value-added 
                        agricultural product; or
                            ``(ii) in developing strategies 
                        that are intended to create marketing 
                        opportunities in emerging markets for 
                        the value-added agricultural product.
            ``(2) Amount of grant.--
                    ``(A) In general.--The total amount 
                provided under this subsection to a grant 
                recipient shall not exceed $500,000.
                    ``(B) Majority-controlled producer-based 
                business ventures.--The amount of grants 
                provided to majority-controlled producer-based 
                business ventures under paragraph (1)(B) for a 
                fiscal year may not exceed 10 percent of the 
                amount of funds that are used to make grants 
                for the fiscal year under this subsection.
            ``(3) Grantee strategies.--A grantee under 
        paragraph (1) shall use the grant--
                    ``(A) to develop a business plan or perform 
                a feasibility study to establish a viable 
                marketing opportunity for a value-added 
                agricultural product; or
                    ``(B) to provide capital to establish 
                alliances or business ventures that allow the 
                producer of the value-added agricultural 
                product to better compete in domestic or 
                international markets.
            ``(4) Funding.--Not later than 30 days after the 
        date of enactment of this paragraph, on October 1, 
        2002, and on each October 1 thereafter through October 
        1, 2006, of the funds of the Commodity Credit 
        Corporation, the Secretary shall make available to 
        carry out this subsection $40,000,000, to remain 
        available until expended.'';
            (3) in subsection (c)(1) (as redesignated by 
        paragraph (1))--
                    (A) by striking ``subsection (a)(2)'' and 
                inserting ``subsection (b)(2)'';
                    (B) by striking ``$5,000,000'' and 
                inserting ``5 percent''; and
                    (C) by striking ``subsection (a)'' and 
                inserting ``subsection (b)''; and
            (4) in subsection (d) (as redesignated by paragraph 
        (1)), by striking ``subsections (a) and (b)'' and 
        inserting ``subsections (b) and (c)''.
    (b) Applicability.--
            (1) In general.--Except as provided in paragraph 
        (2), the amendments made by subsection (a) apply 
        beginning on October 1, 2002.
            (2) Funding.--Funds made available under section 
        231(b)(4)(A)(i) of the Agricultural Risk Protection Act 
        of 2000 (as amended by subsection (a)(2)) shall be made 
        available not later than 30 days after the date of 
        enactment of this Act.

SEC. 6402. AGRICULTURE INNOVATION CENTER DEMONSTRATION PROGRAM.

    (a) Purpose.--The purpose of this section is to direct the 
Secretary of Agriculture to establish a demonstration program 
under which agricultural producers are provided--
            (1) technical assistance, consisting of engineering 
        services, applied research, scale production, and 
        similar services, to enable the agricultural producers 
        to establish businesses to produce value-added 
        agricultural commodities or products;
            (2) assistance in marketing, market development, 
        and business planning; and
            (3) organizational, outreach, and development 
        assistance to increase the viability, growth, and 
        sustainability of businesses that produce value-added 
        agricultural commodities or products.
    (b) Definitions.--In this section:
            (1) Program.--The term ``Program'' means the 
        Agriculture Innovation Center Demonstration Program 
        established under subsection (c).
            (2) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
    (c) Establishment of Program.--The Secretary shall 
establish a demonstration program, to be known as the 
``Agriculture Innovation Center Demonstration Program'' under 
which the Secretary shall--
            (1) make grants to assist eligible entities in 
        establishing Agriculture Innovation Centers to enable 
        agricultural producers to obtain the assistance 
        described in subsection (a); and
            (2) provide assistance to eligible entities in 
        establishing Agriculture Innovation Centers through the 
        research and technical services of the Department of 
        Agriculture.
    (d) Eligibility Requirements.--
            (1) In general.--An entity shall be eligible for a 
        grant and assistance described in subsection (c) to 
        establish an Agriculture Innovation Center if--
                    (A) the entity--
                            (i) has provided services similar 
                        to the services described in subsection 
                        (a); or
                            (ii) demonstrates the capability of 
                        providing such services;
                    (B) the application of the entity for the 
                grant and assistance includes a plan, in 
                accordance with regulations promulgated by the 
                Secretary, that outlines--
                            (i) the support for the entity in 
                        the agricultural community;
                            (ii) the technical and other 
                        expertise of the entity; and
                            (iii) the goals of the entity for 
                        increasing and improving the ability of 
                        local agricultural producers to develop 
                        markets and processes for value-added 
                        agricultural commodities or products;
                    (C) the entity demonstrates that adequate 
                resources (in cash or in kind) are available, 
                or have been committed to be made available, to 
                the entity, to increase and improve the ability 
                of local agricultural producers to develop 
                markets and processes for value-added 
                agricultural commodities or products; and
                    (D) the Agriculture Innovation Center of 
                the entity has a board of directors established 
                in accordance with paragraph (2).
            (2) Board of directors.--Each Agriculture 
        Innovation Center of an eligible entity shall have a 
        board of directors composed of representatives of each 
        of the following groups:
                    (A) The 2 general agricultural 
                organizations with the greatest number of 
                members in the State in which the eligible 
                entity is located.
                    (B) The department of agriculture, or 
                similar State department or agency, of the 
                State in which the eligible entity is located.
                    (C) Entities representing the 4 highest 
                grossing commodities produced in the State, 
                determined on the basis of annual gross cash 
                sales.
    (e) Grants and Assistance.--
            (1) In general.--Subject to subsection (i), under 
        the Program, the Secretary shall make, on a competitive 
        basis, annual grants to eligible entities.
            (2) Maximum amount of grants.--A grant under 
        paragraph (1) shall be in an amount that does not 
        exceed the lesser of--
                    (A) $1,000,000; or
                    (B) twice the dollar amount of the 
                resources (in cash or in kind) that the 
                eligible entity demonstrates are available, or 
                have been committed to be made available, to 
                the eligible entity in accordance with 
                subsection (d)(1)(C).
            (3) Maximum number of grants.--
                    (A) First fiscal year of program.--In the 
                first fiscal year of the Program, the Secretary 
                shall make grants to not more than 5 eligible 
                entities.
                    (B) Second fiscal year of program.--In the 
                second fiscal year of the Program, the 
                Secretary may make grants to--
                            (i) the eligible entities to which 
                        grants were made under subparagraph 
                        (A); and
                            (ii) not more than 10 additional 
                        eligible entities.
            (4) State limitation.--
                    (A) In general.--Subject to subparagraph 
                (B), in the first 3 fiscal years of the 
                Program, the Secretary shall not make a grant 
                under the Program to more than 1 entity in any 
                1 State.
                    (B) Collaboration.--Nothing in subparagraph 
                (A) precludes a recipient of a grant under the 
                Program from collaborating with any other 
                institution with respect to activities 
                conducted using the grant.
    (f) Use of Funds.--An eligible entity to which a grant is 
made under the Program may use the grant only for the following 
purposes (but only to the extent that the use is not described 
in section 231(d) of the Agricultural Risk Protection Act of 
2000 (7 U.S.C. 1621 note; Public Law 106-224)):
            (1) Applied research.
            (2) Consulting services.
            (3) Hiring of employees, at the discretion of the 
        board of directors of the Agriculture Innovation Center 
        of the eligible entity.
            (4) The making of matching grants, each of which 
        shall be in an amount not to exceed $5,000, to 
        agricultural producers, except that the aggregate 
        amount of all such matching grants made by the eligible 
        entity shall be not more than $50,000.
            (5) Legal services.
            (6) Any other related cost, as determined by the 
        Secretary.
    (g) Research on Effects on the Agricultural Sector.--
            (1) In general.--Of the amount made available under 
        subsection (i) for each fiscal year, the Secretary 
        shall use $300,000 to support research at a university 
        concerning the effects of projects for value-added 
        agricultural commodities or products on agricultural 
        producers and the commodity markets.
            (2) Research elements.--Research under paragraph 
        (1) shall systematically examine, using linked, long-
        term, global projections of the agricultural sector, 
        the potential effects of projects described in 
        subparagraph (A) on--
                    (A) demand for agricultural commodities;
                    (B) market prices;
                    (C) farm income; and
                    (D) Federal outlays on commodity programs.
    (h) Report to Congress.--
            (1) In general.--Not later than 3 years after the 
        date on which the last of the first 10 grants is made 
        under the Program, the Secretary shall submit to the 
        Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on--
                    (A) the effectiveness of the Program in 
                improving and expanding the production of 
                value-added agricultural commodities or 
                products; and
                    (B) the effects of the Program on the 
                economic viability of agricultural producers.
            (2) Required elements.--The report under paragraph 
        (1) shall--
                    (A) include a description of the best 
                practices and innovations found at each of the 
                Agriculture Innovation Centers established 
                under the Program; and
                    (B) specify the number and type of 
                activities assisted, and the type of assistance 
                provided, under the Program.
    (i) Funding.--Of the amount made available under section 
231(a)(1) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1621 note; Public Law 106-224) for each fiscal year, the 
Secretary shall use to carry out this section--
            (1) not less than $3,000,000 for fiscal year 2002; 
        and
            (2) not less than $6,000,000 for each of fiscal 
        years 2003 and 2004.

SEC. 6403. FUND FOR RURAL AMERICA.

    (a) In General.--Section 793 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 2204f) is 
repealed.
    (b) Conforming Amendment.--Section 2(b)(8)(B) of the 
Competitive, Special, and Facilities Research Grant Act (7 
U.S.C. 450i(b)(8)(B)) is amended in the second sentence by 
striking ``smaller college or university (as described in 
section 793(c)(2)(ii) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 2204f(c)(2)(ii))'' and 
inserting ``college, university, or research foundation 
maintained by a college or university that ranks in the lowest 
\1/3\ of such colleges, universities, and research foundations 
on the basis of Federal research funds received''.

SEC. 6404. RURAL LOCAL TELEVISION BROADCAST SIGNAL LOAN GUARANTEES.

    (a) In General.--Section 1011(a) of the Launching Our 
Communities' Access to Local Television Act of 2000 (47 U.S.C. 
1109(a)) is amended--
            (1) by striking ``For'' and inserting the 
        following:
            ``(1) Authorization of appropriations.--For''; and
            (2) by adding at the end the following:
            ``(2) Commodity credit corporation funds.--
                    ``(A) In general.--Notwithstanding any 
                other provision of law, subject to subparagraph 
                (B), in addition to amounts made available 
                under paragraph (1), of the funds of the 
                Commodity Credit Corporation, the Secretary of 
                Agriculture shall make available for loan 
                guarantees to carry out this title $80,000,000 
                for the period beginning on the date of 
                enactment of this paragraph and ending on 
                December 31, 2006, to remain available until 
                expended.
                    ``(B) Broadband loans and loan 
                guarantees.--
                            ``(i) In general.--Amounts made 
                        available under subparagraph (A) that 
                        are not obligated as of the release 
                        date described in clause (ii) shall be 
                        available to the Secretary to make 
                        loans and loan guarantees under section 
                        601 of the Rural Electrification Act of 
                        1936.
                            ``(ii) Release date.--For purposes 
                        of clause (i), the release date is the 
                        date that is the earlier of--
                                    ``(I) the date the 
                                Secretary determines that at 
                                least 75 percent of the 
                                designated market areas (as 
                                defined in section 122(j) of 
                                title 17, United States Code) 
                                not in the top 40 designated 
                                market areas described in 
                                section 1004(e)(1)(C)(i) of the 
                                Launching Our Communities' 
                                Access to Local Television Act 
                                of 2000 (47 U.S.C. 
                                1103(e)(1)(C)(i)) have access 
                                to local television broadcast 
                                signals for virtually all 
                                households (as determined by 
                                the Secretary); or
                                    ``(II) December 31, 2006.
                    ``(C) Advanced appropriations.--Subsections 
                (c) and (h)(1)(B) of section 1004 and section 
                1005(n)(3)(B) shall not apply to amounts made 
                available under this paragraph.''.
    (b) Technical and Conforming Amendments.--
            (1) Approval of loan guarantees.--Section 1004 of 
        the Launching Our Communities' Access to Local 
        Television Act of 2000 (47 U.S.C. 1103) is amended--
                    (A) in subsection (b)(1)--
                            (i) by striking ``section 5'' and 
                        inserting ``section 1005''; and
                            (ii) by striking ``section 11'' and 
                        inserting ``section 1011'';
                    (B) in subsection (d)(1), by striking 
                ``section 3'' and inserting ``section 1003''; 
                and
                    (C) in the first sentence of subsection 
                (h)(2)(D), by striking ``section 5'' and 
                inserting ``section 1005''.
            (2) Administration of loan guarantees.--Section 
        1005 of the Launching Our Communities' Access to Local 
        Television Act of 2000 (47 U.S.C. 1104) is amended--
                    (A) in subsection (a), by striking 
                ``sections 3 and 4'' and inserting ``sections 
                1003 and 1004'';
                    (B) in subsection (b)--
                            (i) in paragraph (1)(D), by 
                        striking ``section 6(a)(2)'' and 
                        inserting ``section 1006(a)(2)''; and
                            (ii) in paragraph (3), by striking 
                        ``section 4(d)(3)(B)(iii)'' and 
                        inserting ``section 
                        1004(d)(3)(B)(iii)''; and
                    (C) in subsection (e)(3), by striking 
                ``section 4(g)'' and inserting ``section 
                1004(g)''.

SEC. 6405. RURAL FIREFIGHTERS AND EMERGENCY PERSONNEL GRANT PROGRAM.

    (a) In General.--The Secretary of Agriculture may make 
grants to units of general local government and Indian tribes 
(as defined in section 4 of the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450b)) to pay the cost of 
training firefighters and emergency medical personnel in 
firefighting, emergency medical practices, and responding to 
hazardous materials and bioagents in rural areas.
    (b) Use of Funds.--
            (1) Scholarships.--
                    (A) In general.--Not less than 60 percent 
                of the amounts made available for 
                competitively-awarded grants under this section 
                shall be used to provide grants to fund partial 
                scholarships for training of individuals at 
                training centers approved by the Secretary.
                    (B) Priority.--In awarding grants under 
                this paragraph, the Secretary shall give 
                priority to grant applicants that provide for 
                training within the region (or locality) of the 
                applicant.
            (2) Grants for training centers.--
                    (A) In general.--A grant under subsection 
                (a) may be used to provide financial assistance 
                to State and regional centers that provide 
                training for firefighters and emergency medical 
                personnel for improvements to the training 
                facility, equipment, curricula, and personnel.
                    (B) Limitation.--Not more than $750,000 
                shall be provided to any single training center 
                for any fiscal year under this paragraph.
    (c) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out 
this section $10,000,000 for each of fiscal years 2003 through 
2007, to remain available until expended.

SEC. 6406. SENSE OF CONGRESS ON RURAL POLICY COORDINATION.

    It is the sense of Congress that the President should--
            (1) appoint a Special Assistant to the President 
        for Rural Policy;
            (2) designate within each Federal agency with 
        jurisdiction over rural programs or activities 1 or 
        more senior officers or employees to provide rural 
        policy leadership for the agency; and
            (3) create an intergovernmental rural policy 
        working group comprised of--
                    (A) the Special Assistant to the President 
                for Rural Policy, who should serve as 
                Chairperson; and
                    (B) the senior officers and employees 
                designated under paragraph (2).

                TITLE VII--RESEARCH AND RELATED MATTERS

                         Subtitle A--Extensions

SEC. 7101. NATIONAL RURAL INFORMATION CENTER CLEARINGHOUSE.

    Section 2381(e) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 3125b(e)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7102. GRANTS AND FELLOWSHIPS FOR FOOD AND AGRICULTURAL SCIENCES 
                    EDUCATION.

    Section 1417 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' after 
                ``economics,''; and
                    (B) by inserting ``, and rural economic, 
                community, and business development'' before 
                the period;
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``, or 
                in rural economic, community, and business 
                development'' before the semicolon;
                    (B) in paragraph (2), by inserting ``, or 
                in rural economic, community, and business 
                development'' before the semicolon;
                    (C) in paragraph (3), by inserting ``, or 
                teaching programs emphasizing rural economic, 
                community, and business development'' before 
                the semicolon;
                    (D) in paragraph (4), by inserting ``, or 
                programs emphasizing rural economic, community, 
                and business development,'' after ``programs''; 
                and
                    (E) in paragraph (5), by inserting ``, or 
                professionals in rural economic, community, and 
                business development'' before the semicolon;
            (3) in subsection (d)--
                    (A) in paragraph (1), by inserting ``, or 
                in rural economic, community, and business 
                development,'' after ``sciences''; and
                    (B) in paragraph (2), by inserting ``, or 
                in the rural economic, community, and business 
                development workforce,'' after ``workforce''; 
                and
            (4) in subsection (l), by striking ``2002'' and 
        inserting ``2007''.

SEC. 7103. POLICY RESEARCH CENTERS.

    Section 1419A(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3155(d)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7104. HUMAN NUTRITION INTERVENTION AND HEALTH PROMOTION RESEARCH 
                    PROGRAM.

    Section 1424(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174(d)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7105. PILOT RESEARCH PROGRAM TO COMBINE MEDICAL AND AGRICULTURAL 
                    RESEARCH.

    Section 1424A(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3174a(d)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7106. NUTRITION EDUCATION PROGRAM.

    Section 1425(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3175(c)(3)) is amended by striking ``2002'' and inserting 
``2007''.

SEC. 7107. CONTINUING ANIMAL HEALTH AND DISEASE RESEARCH PROGRAMS.

    Section 1433(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3195(a)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7108. APPROPRIATIONS FOR RESEARCH ON NATIONAL OR REGIONAL 
                    PROBLEMS.

    Section 1434(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3196(a)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7109. GRANTS TO UPGRADE AGRICULTURAL AND FOOD SCIENCES FACILITIES 
                    AT 1890 LAND-GRANT COLLEGES, INCLUDING TUSKEGEE 
                    UNIVERSITY.

    Section 1447(b) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222b(b)) 
is amended by striking ``$15,000,000 for each of fiscal years 
1996 through 2002'' and inserting ``$25,000,000 for each of 
fiscal years 2002 through 2007''.

SEC. 7110. NATIONAL RESEARCH AND TRAINING VIRTUAL CENTERS.

    (a) Authorization.--Section 1448 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3222c) is amended by striking ``2002'' each 
place it appears in subsections (a)(1) and (f) and inserting 
``2007''.
    (b) Redesignation.--Section 1448 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3222c) is amended--
            (1) in the section heading, by striking 
        ``CENTENNIAL'' and inserting ``VIRTUAL''; and
            (2) by striking ``centennial'' each place it 
        appears and inserting ``virtual''.

SEC. 7111. HISPANIC-SERVING INSTITUTIONS.

    Section 1455(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3241(c)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7112. COMPETITIVE GRANTS FOR INTERNATIONAL AGRICULTURAL SCIENCE 
                    AND EDUCATION PROGRAMS.

    Section 1459A(c) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3292b(c)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7113. UNIVERSITY RESEARCH.

    Section 1463 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3311) is 
amended--
            (1) in subsection (a), by striking ``$850,000,000 
        for each of the fiscal years 1991 through 2002'' and 
        inserting ``such sums as may be necessary for each of 
        fiscal years 1991 through 2007''; and
            (2) in subsection (b), by striking ``$310,000,000 
        for each of the fiscal years 1991 through 2002'' and 
        inserting ``such sums as may be necessary for each of 
        fiscal years 1991 through 2007''.

SEC. 7114. EXTENSION SERVICE.

    Section 1464 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3312) is 
amended by striking ``$420,000,000 for fiscal year 1991, 
$430,000,000 for fiscal year 1992, $440,000,000 for fiscal year 
1993, $450,000,000 for fiscal year 1994, and $460,000,000 for 
each of fiscal years 1995 through 2002'' and inserting ``such 
sums as may be necessary for each of fiscal years 1991 through 
2007''.

SEC. 7115. SUPPLEMENTAL AND ALTERNATIVE CROPS.

    Section 1473D(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3319d(a)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7116. AQUACULTURE RESEARCH FACILITIES.

    The first sentence of section 1477 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3324) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7117. RANGELAND RESEARCH.

    Section 1483(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3336(a)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7118. NATIONAL GENETICS RESOURCES PROGRAM.

    Section 1635(b) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5844(b)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7119. HIGH-PRIORITY RESEARCH AND EXTENSION INITIATIVES.

    Section 1672(h) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925(h)) is amended by striking 
``2002'' and inserting ``2007.

SEC. 7120. NUTRIENT MANAGEMENT RESEARCH AND EXTENSION INITIATIVE.

    Section 1672A(g) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5925a(g)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7121. AGRICULTURAL TELECOMMUNICATIONS PROGRAM.

    Section 1673(h) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5926(h)) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7122. ASSISTIVE TECHNOLOGY PROGRAM FOR FARMERS WITH DISABILITIES.

    Section 1680(c)(1) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 5933(c)(1)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7123. PARTNERSHIPS FOR HIGH-VALUE AGRICULTURAL PRODUCT QUALITY 
                    RESEARCH.

    Section 402(g) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7622(g)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7124. BIOBASED PRODUCTS.

    (a) Pilot Project.--Section 404(e)(2) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7624(e)(2)) is amended by striking ``2001'' and inserting 
``2007''.
    (b) Authorization of Appropriations.--Section 404(h) of 
such Act (7 U.S.C. 7624(h)) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7125. INTEGRATED RESEARCH, EDUCATION, AND EXTENSION COMPETITIVE 
                    GRANTS PROGRAM.

    Section 406 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626) is amended--
            (1) by redesignating subsection (e) as subsection 
        (f);
            (2) by inserting after subsection (d) the 
        following:
    ``(e) Term of Grant.--A grant under this section shall have 
a term of not more than 5 years.''; and
            (3) in subsection (f) (as so redesignated), by 
        striking ``2002'' and inserting ``2007''.

SEC. 7126. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (f) Institutional Capacity Building Grants.--Section 535 of 
the Equity in Educational Land-Grant Status Act of 1994 (7 
U.S.C. 301 note; Public Law 103-382) is amended--
            (1) in subsection (b)(1), by striking ``2002'' and 
        inserting ``2007''; and
            (2) in subsection (c), by striking ``$1,700,000 for 
        each of fiscal years 1996 through 2002'' and inserting 
        ``such sums as are necessary for each of fiscal years 
        2002 through 2007''.

SEC. 7127. 1994 INSTITUTION RESEARCH GRANTS.

    Section 536(c) of the Equity in Educational Land-Grant 
Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
``2002'' and inserting ``2007''.

SEC. 7128. ENDOWMENT FOR 1994 INSTITUTIONS.

    The first sentence of section 533(b) of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
is amended by striking ``$4,600,000'' and all that follows 
through the period and inserting ``such sums as are necessary 
to carry out this section for each of fiscal years 1996 through 
2007.''.

SEC. 7129. PRECISION AGRICULTURE.

    Section 403(i) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7623(i)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7130. THOMAS JEFFERSON INITIATIVE FOR CROP DIVERSIFICATION.

    Section 405(h) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(h)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7131. SUPPORT FOR RESEARCH REGARDING DISEASES OF WHEAT, TRITICALE, 
                    AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM OR BY 
                    TILLETIA INDICA.

    Section 408(e) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7628(e)) is amended--
            (1) by striking ``$5,200,000'' and inserting ``such 
        sums as may be necessary''; and
            (2) by striking ``2002'' and inserting ``2007''.

SEC. 7132. OFFICE OF PEST MANAGEMENT POLICY.

    Section 614(f) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7653(f)) is amended by 
striking ``2002'' and inserting ``2007''.

SEC. 7133. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, EDUCATION, AND 
                    ECONOMICS ADVISORY BOARD.

    Section 1408(h) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3123(h)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7134. GRANTS FOR RESEARCH ON PRODUCTION AND MARKETING OF ALCOHOLS 
                    AND INDUSTRIAL HYDROCARBONS FROM AGRICULTURAL 
                    COMMODITIES AND FOREST PRODUCTS.

    Section 1419(d) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3154(d)) 
is amended by striking ``2002'' and inserting ``2007''.

SEC. 7135. AGRICULTURAL EXPERIMENT STATIONS RESEARCH FACILITIES.

    Section 6(a) of the Research Facilities Act (7 U.S.C. 
390d(a)) is amended by striking ``2002'' and inserting 
``2007''.

SEC. 7136. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS 
                    NATIONAL RESEARCH INITIATIVE.

    Section 2(b)(10) of the Competitive, Special, and 
Facilities Research Grant Act (7 U.S.C. 450i(b)(10)) is amended 
by striking ``2002'' and inserting ``2007''.

SEC. 7137. FEDERAL AGRICULTURAL RESEARCH FACILITIES AUTHORIZATION OF 
                    APPROPRIATIONS.

    Section 1431 of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1985 (Public 
Law 99-198; 99 Stat. 1556) is amended by striking ``2002'' and 
inserting ``2007''.

SEC. 7138. CRITICAL AGRICULTURAL MATERIALS RESEARCH.

    Section 16(a) of the Critical Agricultural Materials Act (7 
U.S.C. 178n(a)) is amended by striking ``2002'' and inserting 
``2007''.

SEC. 7139. AQUACULTURE.

    Section 10 of the National Aquaculture Act of 1980 (16 
U.S.C. 2809) is amended by striking ``2002'' each place it 
appears and inserting ``2007''.

                       Subtitle B--Modifications

SEC. 7201. EQUITY IN EDUCATIONAL LAND-GRANT STATUS ACT OF 1994.

    (a) Authorization of Appropriations.--Section 534(a)(1)(A) 
of the Equity in Educational Land-Grant Status Act of 1994 (7 
U.S.C. 301 note) is amended by striking ``$50,000'' and 
inserting ``$100,000''.
    (b) Change of Indian Student Count Formula.--Section 
533(c)(4)(A) of the Equity in Educational Land-Grant Status Act 
of 1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
striking ``(as defined in section 390(3) of the Carl D. Perkins 
Vocational and Applied Technology Education Act, as such 
section was in effect on the day preceding the date of 
enactment of the Carl. D. Perkins Vocational and Applied 
Technology Education Amendments of 1998 (Oct. 31, 1998)) for 
each 1994 Institution for the fiscal year'' and inserting ``(as 
defined in section 2(a) of the Tribally Controlled College or 
University Assistance Act of 1978 (25 U.S.C. 1801(a)))''.
    (c) Accreditation Requirement for Research Grants.--Section 
533(a)(3) of the Equity in Educational Land-Grant Status Act of 
1994 (7 U.S.C. 301 note; Public Law 103-382) is amended by 
striking ``sections 534 and 535'' and inserting ``sections 534, 
535, and 536''.
    (d) Technical Amendment To Reflect Name Changes.--Section 
532 of the Equity in Educational Land-Grant Status Act of 1994 
(7 U.S.C. 301 note; Public Law 103-382) is amended by striking 
paragraphs (1) through (30) and inserting the following:
            ``(1) Bay Mills Community College.
            ``(2) Blackfeet Community College.
            ``(3) Cankdeska Cikana Community College.
            ``(4) College of Menominee Nation.
            ``(5) Crownpoint Institute of Technology.
            ``(6) D-Q University.
            ``(7) Dine College.
            ``(8) Chief Dull Knife Memorial College.
            ``(9) Fond du Lac Tribal and Community College.
            ``(10) Fort Belknap College.
            ``(11) Fort Berthold Community College.
            ``(12) Fort Peck Community College.
            ``(13) Haskell Indian Nations University.
            ``(14) Institute of American Indian and Alaska 
        Native Culture and Arts Development.
            ``(15) Lac Courte Oreilles Ojibwa Community 
        College.
            ``(16) Leech Lake Tribal College.
            ``(17) Little Big Horn College.
            ``(18) Little Priest Tribal College.
            ``(19) Nebraska Indian Community College.
            ``(20) Northwest Indian College.
            ``(21) Oglala Lakota College.
            ``(22) Salish Kootenai College.
            ``(23) Sinte Gleska University.
            ``(24) Sisseton Wahpeton Community College.
            ``(25) Si Tanka/Huron University.
            ``(26) Sitting Bull College.
            ``(27) Southwestern Indian Polytechnic Institute.
            ``(28) Stone Child College.
            ``(29) Turtle Mountain Community College.
            ``(30) United Tribes Technical College.
            ``(31) White Earth Tribal and Community College.''.
    (e) Report Recommending Criteria for Additional Eligible 
Entities.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Agriculture shall submit a report 
containing recommended criteria for designating additional 1994 
Institutions to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate.

SEC. 7202. CARRYOVER FOR EXPERIMENT STATIONS.

    Section 7 of the Hatch Act of 1887 (7 U.S.C. 361g) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Carryover.--
            ``(1) In general.--The balance of any annual funds 
        provided under this Act to a State agricultural 
        experiment station for a fiscal year that remains 
        unexpended at the end of the fiscal year may be carried 
        over for use during the following fiscal year.
            ``(2) Failure to expend full allotment.--
                    ``(A) In general.--If any unexpended 
                balance carried over by a State is not expended 
                by the end of the second fiscal year, an amount 
                equal to the unexpended balance shall be 
                deducted from the next succeeding annual 
                allotment to the State.
                    ``(B) Redistribution.--Federal funds that 
                are deducted under subparagraph (A) for a 
                fiscal year shall be redistributed by the 
                Secretary in accordance with the formula set 
                forth in section 3(c) to those States for which 
                no deduction under subparagraph (A) has been 
                taken for that fiscal year.''.

SEC. 7203. AUTHORIZATION PERCENTAGES FOR RESEARCH AND EXTENSION FORMULA 
                    FUNDS.

    (a) Extension.--Section 1444(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3221(a)) is amended--
            (1) by striking ``(a) There'' and inserting the 
        following:
    ``(a) Authorization of Appropriations.--
            ``(1) In general.--There'';
            (2) by striking the second sentence; and
            (3) in the third sentence, by striking 
        ``Beginning'' through ``6 per centum'' and inserting 
        the following:
            ``(2) Minimum amount.--Beginning with fiscal year 
        2003, there shall be appropriated under this section 
        for each fiscal year an amount that is not less than 15 
        percent'';
            (3) by striking ``Funds appropriated'' and 
        inserting the following:
            ``(3) Uses.--Funds appropriated''; and
            (4) by striking ``No more'' and inserting the 
        following:
            ``(4) Carryover.--No more''.
    (b) Research.--Section 1445(a) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3222(a)) is amended--
            (1) by striking ``(a) There'' and inserting the 
        following:
    ``(a) Authorization of Appropriations.--
            ``(1) In general.--There'';
            (2) by striking the second sentence and inserting 
        the following:
            ``(2) Minimum amount.--Beginning with fiscal year 
        2003, there shall be appropriated under this section 
        for each fiscal year an amount that is not less than 25 
        percent of the total appropriations for the fiscal year 
        under section 3 of the Hatch Act of 1887 (7 U.S.C. 
        361c).'';
            (3) by striking ``Funds appropriated'' and 
        inserting the following:
            ``(3) Uses.--Funds appropriated'';
            (4) by striking ``The eligible'' and inserting the 
        following:
            ``(4) Coordination.--The eligible''; and
            (5) by striking ``No more'' and inserting the 
        following:
            ``(5) Carryover.--No more''.

SEC. 7204. CARRYOVER FOR ELIGIBLE INSTITUTIONS.

    Section 1445(a) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222(a)) 
(as amended by section 7203 of this Act) is further amended by 
striking paragraph (5) and inserting the following:
            ``(5) Carryover.--
                    ``(A) In general.--The balance of any 
                annual funds provided to an eligible 
                institution for a fiscal year under this 
                section that remains unexpended at the end of 
                the fiscal year may be carried over for use 
                during the following fiscal year.
                    ``(B) Failure to expend full amount.--
                            ``(i) In general.--If any 
                        unexpended balance carried over by an 
                        eligible institution is not expended by 
                        the end of the second fiscal year, an 
                        amount equal to the unexpended balance 
                        shall be deducted from the next 
                        succeeding annual allotment to the 
                        eligible institution.
                            ``(ii) Redistribution.--Federal 
                        funds that are deducted under clause 
                        (i) for a fiscal year shall be 
                        redistributed by the Secretary in 
                        accordance with the formula set forth 
                        in subsection (b)(2)(B) to those 
                        eligible institutions for which no 
                        deduction under clause (i) has been 
                        taken for that fiscal year.''.

SEC. 7205. INITIATIVE FOR FUTURE AGRICULTURE AND FOOD SYSTEMS.

    (a) Funding.--Section 401(b) of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)) 
is amended--
            (1) in paragraph (1), by striking ``2002'' and 
        inserting ``2001''; and
            (2) by adding at the end the following:
            ``(3) Other funding.--Out of funds in the Commodity 
        Credit Corporation, the Secretary shall transfer to the 
        Account--
                    ``(A) on October 1, 2003, $120,000,000;
                    ``(B) on October 1, 2004, $140,000,000;
                    ``(C) on October 1, 2005, $160,000,000; and
                    ``(D) on October 1, 2006, and each October 
                1 thereafter, $200,000,000.''.
            (2) by amending subsection (c)(1) to read as 
        follows:
            ``(1) Critical emerging agricultural and rural 
        issues.--The Secretary shall use the funds in the 
        Account for research, extension, and education grants 
        (referred to in this section as `grants') to address 
        critical emerging agricultural and rural issues related 
        to--
                    ``(A) future food production;
                    ``(B) environmental quality and natural 
                resource management;
                    ``(C) farm income; or
                    ``(D) rural economic and business and 
                community development policy.''; and
            (3) in subsection (e)(1), by striking ``small and 
        mid-sized'' and inserting ``small, mid-sized, and 
        minority-serving''.

SEC. 7206. ELIGIBILITY FOR INTEGRATED GRANTS PROGRAM.

    Section 406(b) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7626(b)) is amended by 
inserting ``and 1994 Institutions'' before ``on a competitive 
basis''.

SEC. 7207. AGRICULTURAL RESEARCH, EXTENSION, AND EDUCATION REFORM ACT 
                    OF 1998.

    (a) Precision Agriculture.--Section 403 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7623) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3)--
                            (i) in subparagraph (A), inserting 
                        ``, horticultural,'' following 
                        ``agronomic'' the second place it 
                        appears; and
                            (ii) in subparagraph (C), by 
                        striking ``or'' at the end;
                            (iii) in subparagraph (D), by 
                        striking the period at the end and 
                        inserting ``; or''; and
                            (iv) by adding at the end the 
                        following:
                    ``(E) using such information to enable 
                intelligent mechanized harvesting and sorting 
                systems for horticultural crops.'';
                    (B) in paragraph (4)--
                            (i) in subparagraph (C), by 
                        striking ``or'' at the end;
                            (ii) in subparagraph (D), by 
                        striking the period at the end and 
                        inserting ``; or''; and
                            (iii) by adding at the end the 
                        following:
                    ``(E) robotic and other intelligent 
                machines for use in horticultural cropping 
                systems.''; and
                    (C) in paragraph (5)(F), by inserting 
                ``(including improved use of energy inputs)'' 
                after ``farm production efficiencies'';
            (2) in subsection (c)(2)--
                    (A) by inserting ``or horticultural'' after 
                ``agronomic''; and
                    (B) by striking ``and meteorological 
                variability'' and inserting ``product 
                variability, and meteorological variability'';
            (3) in subsection (d)--
                    (A) by redesignating paragraphs (4) and (5) 
                as paragraphs (5) and (6), respectively; and
                    (B) by inserting after paragraph (3) the 
                following:
            ``(4) Improve farm energy use efficiencies.''.
    (b) Thomas Jefferson Initiative for Crop Diversification.--
Section 405(a) of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7625(a)) is amended by 
striking ``and marketing'' and inserting ``, marketing, and 
efficient use''.
    (c) Coordinated Program of Research, Extension, and 
Education To Improve Viability of Small- and Medium-Size Dairy, 
Livestock, and Poultry Operations.--Section 407(b)(3) of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7627(b)(3)) is amended by inserting ``(including 
improved use of energy inputs)'' after ``poultry systems that 
increase efficiencies''.
    (d) Support for Research Regarding Diseases of Wheat, 
Triticale, and Barley Caused by Fusarium Graminearum or by 
Tilletia Indica.--
            (1) Research grant authorized.--Section 408(a) of 
        the Agricultural Research, Extension, and Education 
        Reform Act of 1998 (7 U.S.C. 7628(a)) is amended to 
        read as follows:
    ``(a) Research Grant Authorized.--The Secretary of 
Agriculture may make grants to consortia of land-grant colleges 
and universities to enhance the ability of the consortia to 
carry out multi-State research projects aimed at understanding 
and combating diseases of wheat, triticale, and barley caused 
by Fusarium graminearum and related fungi (referred to in this 
section as `wheat scab') or by Tilletia indica and related 
fungi (referred to in this section as `Karnal bunt').''.
            (2) Research components.--Section 408(b) of such 
        Act (7 U.S.C. 7628(b)) is amended--
                    (A) in paragraph (1), by inserting ``or of 
                Karnal bunt,'' after ``epidemiology of wheat 
                scab'';
                    (B) in paragraph (1), by inserting ``, 
                triticale,'' after ``occurring in wheat'';
                    (C) in paragraph (2), by inserting ``or 
                Karnal bunt'' after ``wheat scab'';
                    (D) in paragraph (3)(A), by striking ``and 
                barley for the presence of'' and inserting ``, 
                triticale, and barley for the presence of 
                Karnal bunt or of'';
                    (E) in paragraph (3)(B), by striking ``and 
                barley infected with wheat scab'' and inserting 
                ``, triticale, and barley infected with wheat 
                scab or with Karnal bunt'';
                    (F) in paragraph (3)(C), by inserting 
                ``wheat scab'' after ``to render'';
                    (G) in paragraph (4), by striking ``and 
                barley to wheat scab'' and inserting ``, 
                triticale, and barley to wheat scab and to 
                Karnal bunt''; and
                    (H) in paragraph (5)--
                            (i) by inserting ``and Karnal 
                        bunt'' after ``wheat scab''; and
                            (ii) by inserting ``, triticale,'' 
                        after ``resistant wheat''.
            (3) Communications networks.--Section 408(c) of 
        such Act (7 U.S.C. 7628(c)) is amended by inserting 
        ``or Karnal bunt'' after ``wheat scab''.
            (4) Technical amendments.--(A) The section heading 
        for section 408 of such Act is amended by striking 
        ``AND BARLEY CAUSED BY FUSARIUM GRAMINEARUM'' and 
        inserting ``, TRITICALE, AND BARLEY CAUSED BY FUSARIUM 
        GRAMINEARUM OR BY TILLETIA INDICA''.
            (B) The table of sections for such Act is amended 
        by striking ``and barley caused by fusarium 
        graminearum'' in the item relating to section 408 and 
        inserting ``, triticale, and barley caused by Fusarium 
        graminearum or by Tilletia indica''.
    (e) Program to Control Johne's Disease.--Title IV of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7621 et seq.) is amended by adding at the end 
the following new section:

``SEC. 409. BOVINE JOHNE'S DISEASE CONTROL PROGRAM.

    ``(a) Establishment.--The Secretary of Agriculture, in 
coordination with State veterinarians and other appropriate 
State animal health professionals, may establish a program to 
conduct research, testing, and evaluation of programs for the 
control and management of Johne's disease in livestock.
    ``(b) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary such sums as may be 
necessary to carry out this section for each of fiscal years 
2003 through 2007.''.

SEC. 7208. FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF 1990.

    (a) Agricultural Genome Initiative.--Section 1671(b) of the 
Food, Agriculture, Conservation, and Trade Act of 1990 (7 
U.S.C. 5924(b)) is amended--
            (1) in paragraph (3), by inserting ``pathogens 
        and'' before ``diseases causing economic hardship'';
            (2) in paragraph (6), by striking ``and'' at the 
        end;
            (3) by redesignating paragraph (7) as paragraph 
        (8); and
            (4) by inserting after paragraph (6) the following 
        new paragraph:
            ``(7) reducing the economic impact of plant 
        pathogens on commercially important crop plants; and''.
    (b) High-Priority Research and Extension Initiatives.--
Section 1672(e) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925) is amended by adding at the 
end the following new paragraphs:
            ``(25) Genetically modified agriculture products 
        (gmap) research.--Research grants may be made under 
        this section for the purposes of providing unbiased, 
        science-based evaluation of the risks and benefits to 
        the public and the environment of specific genetically 
        modified plant and animal products. Grants may be used 
        to form interdisciplinary teams to review and conduct 
        research on scientific, social, economic, and ethical 
        issues during the review process, to answer questions 
        raised by the release of new genetically modified 
        agriculture products, to conduct fundamental studies on 
        the health and environmental safety of genetically 
        modified agriculture products (including quantitative 
        risk assessment, the effect of specific genetically 
        modified agriculture products on human health, and gene 
        flow studies), to communicate the risk of genetically 
        modified agriculture products through extension and 
        education programs, and to engage the public and 
        industry in relevant issues.
            ``(26) Wind erosion research and extension.--
        Research and extension grants may be made under this 
        section for the purpose of validating wind erosion 
        models.
            ``(27) Crop loss research and extension.--Research 
        and extension grants may be made under this section for 
        the purpose of validating crop loss models.
            ``(28) Land use management research and 
        extension.--Research and extension grants may be made 
        under this section for the purposes of evaluating the 
        environmental benefits of land use management tools 
        such as those provided in the Farmland Protection 
        Program.
            ``(29) Water and air quality research and 
        extension.--Research and extension grants may be made 
        under this section for the purpose of better 
        understanding agricultural impacts to air and water 
        quality and means to address them.
            ``(30) Revenue and insurance tools research and 
        extension.--Research and extension grants may be made 
        under this section for the purposes of better 
        understanding the impact of revenue and insurance tools 
        on farm income.
            ``(31) Agrotourism research and extension.--
        Research and extension grants may be made under this 
        section for the purpose of better understanding the 
        economic, environmental, and food systems impacts of 
        agrotourism.
            ``(32) Harvesting productivity for fruits and 
        vegetables.--Research and extension grants may be made 
        under this section for the purpose of improving 
        harvesting productivity for fruits and vegetables 
        (including citrus), including the development of 
        mechanical harvesting technologies and effective, 
        economical, and safe abscission compounds.
            ``(33) Nitrogen-fixation by plants.--Research and 
        extension grants may be made under this section for the 
        purpose of enhancing the nitrogen-fixing ability and 
        efficiency of legumes, developing new varieties of 
        legumes that fix nitrogen more efficiently, and 
        developing new varieties of other commercially 
        important crops that potentially are able to fix 
        nitrogen.
            ``(34) Agricultural marketing.--Extension grants 
        may be made under this section for the purpose of 
        providing education materials, information, and 
        outreach programs regarding commodity and livestock 
        marketing strategies for agricultural producers and for 
        cooperatives and other marketers of any agricultural 
        commodity, including livestock.
            ``(35) Environment and private lands research and 
        extension.--Research and extension grants may be made 
        under this section for the purpose of researching the 
        use of computer models to aid in assessment of best 
        management practices on a watershed basis, working with 
        government, industry, and private landowners to help 
        craft industry-led solutions to identified 
        environmental issues, researching and monitoring water, 
        air, or soil environmental quality to aid in the 
        development of new approaches to local environmental 
        concerns, and working with local, State, and federal 
        officials to help craft effective environmental 
        solutions that respect private property rights and 
        agricultural production realities.
            ``(36) Livestock disease research and extension.--
        Research and extension grants may be made under this 
        section for the purpose of identifying possible 
        livestock disease threats, educating the public 
        regarding livestock disease threats, training persons 
        to deal with such threats, and conducting related 
        research.
            ``(37) Plant gene expression.--Research grants may 
        be made under this section for the purpose of plant 
        gene expression research to accelerate the application 
        of basic plant genomic science to the development and 
        testing of new varieties of enhanced food crops, crops 
        that can be used as renewable energy sources, and other 
        alternative uses of agricultural crops.
            ``(38) Animal infectious diseases research.--
        Research and extension grants may be made under this 
        section for the purpose of developing prevention and 
        control methodologies for animal infectious diseases 
        (including evaluation under field conditions in 
        countries in which an animal disease occurs) such as 
        laboratory tests for quicker detection of infected 
        animals and presence of disease, prevention strategies 
        (including vaccination programs), and rapid diagnostic 
        techniques for animal disease agents considered to be 
        risks for agricultural bioterrorism attack.
            ``(39) Program to combat childhood obesity.--
        Research and extension grants may be made under this 
        section to institutions of higher education with 
        demonstrated capacity in basic and clinical obesity 
        research, nutrition research, and community health 
        education research to develop and evaluate community-
        wide strategies that catalyze partnerships between 
        families and health care, education, recreation, mass 
        media, and other community resources to reduce the 
        incidence of childhood obesity.
            ``(40) Integrated pest management.--Research and 
        extension grants may be made under this section to 
        coordinate and improve research, education, and 
        outreach on, and implementation on farms of, integrated 
        pest management.
            ``(41) Beef cattle genetics.--Research and 
        extension grants for beef cattle genetics evaluation 
        research may be made under this section to consortia of 
        institutions of higher education that have expertise in 
        beef cattle genetic evaluation research and technology 
        and that have been actively involved for at least 20 
        years in the estimation and prediction of progeny 
        differences for publication and use by seed stock 
        producer breed associations.
            ``(42) Dairy pipeline cleaner.--Research and 
        extension grants may be made under this section for the 
        purpose of preventing and eliminating the dangers of 
        dairy pipeline cleaner, including development of safer 
        packaging and transfer mechanisms, outlining accident 
        causes and potential prevention measures, and other 
        means of improving efforts to prevent ingestion of 
        dairy pipeline cleaner.
            ``(43) Development of publicly held plants and 
        animal varieties.--Research and extension grants may be 
        made under this section for the purpose of development 
        of publicly held plants and animal varieties (including 
        germplasm for identity-preserved markets) and genetic 
        resource conservation activities.
            ``(44) Sugarcane genetics.--Research grants may be 
        made under this section for the purpose of maintaining 
        acceptable yields under reduced production inputs, 
        implementing marker-assisted breeding strategies and 
        other basic plant genomic technologies to screen for 
        improved plant resistance to diseases, weeds, and 
        insects toward minimizing pesticide use, enhancing 
        food, fiber and energy production, and developing 
        varieties for maximum performance under prevailing 
        conditions, including management for improved soil and 
        water conservation.''.
    (c) Assistive Technology Program for Farmers With 
Disabilities.--Section 1680(a) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5933(a)) is 
amended by adding at the end the following new paragraph:
            ``(6) Consideration for grants for new programs.--
        For each fiscal year that amounts are made available 
        for grants under this subsection, the Secretary may 
        make grants in a manner that ensures that eligible 
        entities who apply for grants, but have not previously 
        received a grant under this subsection, are given full 
        consideration.''.

SEC. 7209. NATIONAL AGRICULTURAL RESEARCH, EXTENSION, AND TEACHING 
                    POLICY ACT OF 1977.

    (a) National Agricultural Research, Extension, Education, 
and Economic Advisory Board.--Section 1408 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3123) is amended--
            (1) in subsection (b)(1), by striking ``30 
        members'' and inserting ``31 members'';
            (2) in subsection (b)(3)--
                    (A) by redesignating subparagraphs (R) 
                through (DD) as subparagraphs (S) through (EE), 
                respectively; and
                    (B) by inserting after subparagraph (Q) the 
                following new subparagraph:
                    ``(R) 1 member representing a non-land 
                grant college or university with a historic 
                commitment to research in the food and 
                agricultural sciences.'';
            (3) in subsection (c)(1), by striking ``and land-
        grant colleges and universities'' and inserting ``, 
        land-grant colleges and universities, and the Committee 
        on Agriculture of the House of Representatives, the 
        Committee on Agriculture, Nutrition, and Forestry of 
        the Senate, the Subcommittee on Agriculture, Rural 
        Development, Food and Drug Administration and Related 
        Agencies of the Committee on Appropriations of the 
        House of Representatives, and the Subcommittee on 
        Agriculture, Rural Development and Related Agencies of 
        the Committee on Appropriations of the Senate''; and
            (4) in subsection (d)(1), inserting ``consult with 
        any appropriate agencies of the Department of 
        Agriculture and'' after ``the Advisory Board shall''.
    (b) Grants for Research on Production and Marketing of 
Alcohols and Industrial Hydrocarbons from Agricultural 
Commodities and Forest Products.--Section 1419 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3154) is amended--
            (1) in subsection (a)(2), by inserting ``and animal 
        fats and oils'' after ``industrial oilseed crops''; and
            (2) in subsection (a)(4), by inserting ``or 
        triglycerides'' after ``other industrial 
        hydrocarbons''.
    (c) FAS Overseas Intern Program.--Section 1458(a) of the 
National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3291(a)) is amended--
            (1) by striking ``and'' at the end of paragraph 
        (8);
            (2) by striking the period at the end of paragraph 
        (9) and inserting ``; and''; and
            (3) by adding at the end the following new 
        paragraph:
            ``(10) establish a program, to be coordinated by 
        the Cooperative State Research, Education, and 
        Extension Service and the Foreign Agricultural Service, 
        to place interns from United States colleges and 
        universities at Foreign Agricultural Service field 
        offices overseas.''.
    (d) Rangeland Research Grants.--Section 1480 of the 
National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3333) is amended to read as follows:

``SEC. 1480. RANGELAND RESEARCH GRANTS.

    ``(a) In General.--The Secretary may make grants to--
            ``(1) land-grant colleges and universities, State 
        agricultural experiment stations, and colleges, 
        universities, and Federal laboratories having a 
        demonstrable capacity in rangeland research, as 
        determined by the Secretary, to carry out rangeland 
        research; and
            ``(2) the Joe Skeen Institute for Rangeland 
        Restoration for the purposes of facilitating and 
        expanding ongoing State-Federal range management, 
        animal husbandry, and agricultural research, education, 
        and extension programs to meet the targeted, emerging, 
        and future needs of western United States rangelands 
        and associated natural resources.
    ``(b) Matching Requirements.--
            ``(1) In general.--Except as provided in paragraph 
        (2), this grant program shall be based on a matching 
        formula of 50 percent Federal and 50 percent non-
        Federal funding.
            ``(2) Exception.--Paragraph (1) shall not apply to 
        a grant to a Federal laboratory or a grant under 
        subsection (a)(2).''.

SEC. 7210. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    Section 1668 of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5921) is amended to read as 
follows:

``SEC. 1668. BIOTECHNOLOGY RISK ASSESSMENT RESEARCH.

    ``(a) Purpose.--It is the purpose of this section--
            ``(1) to authorize and support environmental 
        assessment research to help identify and analyze 
        environmental effects of biotechnology; and
            ``(2) to authorize research to help regulators 
        develop long-term policies concerning the introduction 
        of such technology.
    ``(b) Grant Program.--The Secretary of Agriculture shall 
establish a grant program within the Cooperative State 
Research, Education, and Extension Service and the Agricultural 
Research Service to provide the necessary funding for 
environmental assessment research concerning the introduction 
of genetically engineered animals, plants, and microorganisms 
into the environment.
    ``(c) Research Priorities.-- The following types of 
research shall be given priority for funding:
            ``(1) Research designed to identify and develop 
        appropriate management practices to minimize physical 
        and biological risks associated with genetically 
        engineered animals, plants, and microorganisms.
            ``(2) Research designed to develop methods to 
        monitor the dispersal of genetically engineered 
        animals, plants, and microorganisms.
            ``(3) Research designed to further existing 
        knowledge with respect to the characteristics, rates, 
        and methods of gene transfer that may occur between 
        genetically engineered animals, plants, and 
        microorganisms and related wild and agricultural 
        organisms.
            ``(4) Environmental assessment research designed to 
        provide analysis which compares the relative impacts of 
        animals, plants, and microorganisms modified through 
        genetic engineering to other types of production 
        systems.
            ``(5) Other areas of research designed to further 
        the purposes of this section.
    ``(d) Eligibility Requirements.--Grants under this section 
shall be--
            ``(1) made on the basis of the quality of the 
        proposed research project; and
            ``(2) available to any public or private research 
        or educational institution or organization.
    ``(e) Consultation.-- In considering specific areas of 
research for funding under this section, the Secretary of 
Agriculture shall consult with the Administrator of the Animal 
and Plant Health Inspection Service and the National 
Agricultural Research, Extension, Education, and Economics 
Advisory Board.
    ``(f) Program Coordination.-- The Secretary of Agriculture 
shall coordinate research funded under this section with the 
Office of Research and Development of the Environmental 
Protection Agency in order to avoid duplication of research 
activities.
    ``(g) Authorization of Appropriations.--
            ``(1) In general.-- There are authorized to be 
        appropriated such sums as necessary to carry out this 
        section.
            ``(2) Withholdings from biotechnology outlays.--The 
        Secretary of Agriculture shall withhold from outlays of 
        the Department of Agriculture for research on 
        biotechnology, as defined and determined by the 
        Secretary, at least 2 percent of such amount for the 
        purpose of making grants under this section for 
        research on biotechnology risk assessment.
            ``(3) Application of Funds.--Funds made available 
        under this subsection shall be applied, to the maximum 
        extent practicable, to risk assessment research on all 
        categories identified in subsection (c).''.

SEC. 7211. COMPETITIVE, SPECIAL, AND FACILITIES RESEARCH GRANTS.

    Section 2(b)(2) of the Competitive, Special, and Facilities 
Research Grant Act (7 U.S.C. 450i(b)(2)) is amended by striking 
``in--'' and inserting the following: ``in the areas described 
in subparagraphs (A) through (F). Such needs shall be 
determined by the Secretary, in consultation with the National 
Agricultural Research, Extension, Education, and Economics 
Advisory Board, not later than July 1 of each fiscal year for 
the purposes of the following fiscal year.''.

SEC. 7212. MATCHING FUNDS REQUIREMENT FOR RESEARCH AND EXTENSION 
                    ACTIVITIES OF 1890 INSTITUTIONS.

    Section 1449 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3222d) is 
amended--
            (1) by amending subsection (c) to read as follows:
    ``(c) Matching Formula.--Notwithstanding any other 
provision of this subtitle, for each of fiscal years 2003 
through 2007, theState shall provide matching funds from non-
Federal sources. Such matching funds shall be for an amount equal to 
not less than--
            ``(1) 60 percent of the formula funds to be 
        distributed to the eligible institution for fiscal year 
        2003;
            ``(2) 70 percent of the formula funds to be 
        distributed to the eligible institution for fiscal year 
        2004;
            ``(3) 80 percent of the formula funds to be 
        distributed to the eligible institution for fiscal year 
        2005;
            ``(4) 90 percent of the formula funds to be 
        distributed to the eligible institution for fiscal year 
        2006; and
            ``(5) 100 percent of the formula funds to be 
        distributed to the eligible institution for fiscal year 
        2007 and each fiscal year thereafter.''; and
            (2) by amending subsection (d) to read as follows:
    ``(d) Waiver Authority.--Notwithstanding subsection (f), 
the Secretary may waive the matching funds requirement under 
subsection (c) above the 50 percent level for any fiscal year 
for an eligible institution of a State if the Secretary 
determines that the State will be unlikely to satisfy the 
matching requirement.''.

SEC. 7213. MATCHING REQUIREMENTS FOR RESEARCH AND EXTENSION FORMULA 
                    FUNDS FOR INSULAR AREA LAND-GRANT INSTITUTIONS.

    (a) Experiment Stations.--Section 3(d) of the Hatch Act of 
1887 (7 U.S.C. 361c(d)) is amended by striking paragraph (4) 
and inserting the following:
            ``(4) Exception for insular areas.--
                    ``(A) In general.--Effective beginning for 
                fiscal year 2003, in lieu of the matching funds 
                requirement of paragraph (1), the insular areas 
                of the Commonwealth of Puerto Rico, Guam, and 
                the Virgin Islands of the United States shall 
                provide matching funds from non-Federal sources 
                in an amount equal to not less than 50 percent 
                of the formula funds distributed by the 
                Secretary to each of the insular areas, 
                respectively, under this section.
                    ``(B) Waivers.--The Secretary may waive the 
                matching fund requirement of subparagraph (A) 
                for any fiscal year if the Secretary determines 
                that the government of the insular area will be 
                unlikely to meet the matching requirement for 
                the fiscal year.''.
    (b) Cooperative Agricultural Extension.--Section 3(e) of 
the Smith-Lever Act (7 U.S.C. 343(e)) is amended by striking 
paragraph (4) and inserting the following:
            ``(4) Exception for insular areas.--
                    ``(A) In general.--Effective beginning for 
                fiscal year 2003, in lieu of the matching funds 
                requirement of paragraph (1), the insular areas 
                of the Commonwealth of Puerto Rico, Guam, and 
                the Virgin Islands of the United States shall 
                provide matching funds from non-Federal sources 
                in an amount equal to not less than 50 percent 
                of the formula funds distributed by the 
                Secretary to each of the insular areas, 
                respectively, under this section.
                    ``(B) Waivers.--The Secretary may waive the 
                matching fund requirement of subparagraph (A) 
                for any fiscal year if the Secretary determines 
                that the government of the insular area will be 
                unlikely to meet the matching requirement for 
                the fiscal year.''.

SEC. 7214. DEFINITION OF FOOD AND AGRICULTURAL SCIENCES.

    Section 2(3) of the Research Facilities Act (7 U.S.C. 
390(2)(3)) is amended to read as follows:
            ``(3) Food and agricultural sciences.--The term 
        `food and agricultural sciences' has the meaning given 
        that term in section 1404(8) of the National 
        Agricultural Research, Extension, and Teaching Policy 
        Act of 1977 (7 U.S.C. 3103(8)).''.

SEC. 7215. FEDERAL EXTENSION SERVICE.

    Section 3(b)(3) of the Smith-Lever Act (7 U.S.C. 343(b)(3)) 
is amended--
            (1) by striking ``$5,000,000'' and inserting ``such 
        sums as are necessary''; and
            (2) by adding after the first sentence the 
        following new sentence: ``The balance of any annual 
        funds provided under the preceding sentence for a 
        fiscal year that remains unexpended at the end of that 
        fiscal year shall remain available without fiscal year 
        limitation.''.

SEC. 7216. POLICY RESEARCH CENTERS.

    Section 1419A(c)(3) of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3155(c)(3)) is amended by striking ``collect and analyze'' and 
inserting ``collect, analyze, and disseminate''.

SEC. 7217. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by inserting after section 1469 
(7 U.S.C. 3315) the following:

``SEC. 1469A. AVAILABILITY OF COMPETITIVE GRANT FUNDS.

    ``Except as otherwise provided by law, funds made available 
to the Secretary to carry out a competitive agricultural 
research, education, or extension grant program under this or 
any other Act shall be available for obligation for a 2-year 
period beginning on October 1 of the fiscal year for which the 
funds are made available.''.

SEC. 7218. ORGANIC AGRICULTURE RESEARCH AND EXTENSION INITIATIVE.

    Section 1672B of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (7 U.S.C. 5925b) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``, 
                breeding,'' after ``production'';
                    (B) in paragraph (2), by striking ``and'' 
                at the end;
                    (C) in paragraph (3), by striking the 
                period at the end and inserting a semicolon; 
                and
                    (D) by adding at the end the following:
            ``(4) determining desirable traits for organic 
        commodities;
            ``(5) identifying marketing and policy constraints 
        on the expansion of organic agriculture; and
            ``(6) conducting advanced on-farm research and 
        development that emphasizes observation of, 
        experimentation with, and innovation for working 
        organic farms, including research relating to 
        production and marketing and to socioeconomic 
        conditions.''; and
            (2) by amending subsection (e) to read as follows:
    ``(e) Funding.--On October 1, 2003, and each October 1 
thereafter through October 1, 2007, out of any funds in the 
Treasury not otherwise appropriated, the Secretary of the 
Treasury shall transfer $3,000,000 to the Secretary of 
Agriculture for this section.''.

SEC. 7219. SENIOR SCIENTIFIC RESEARCH SERVICE.

    Subtitle B of title VI of the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7651 et 
seq.) is amended by adding at the end the following:

``SEC. 620. SENIOR SCIENTIFIC RESEARCH SERVICE.

    ``(a) In General.--There is established in the Department 
of Agriculture the Senior Scientific Research Service (referred 
to in this section as the `Service').
    ``(b) Members.--
            ``(1) In general.--Subject to paragraphs (2) 
        through (4), the Secretary shall appoint the members of 
        the Service.
            ``(2) Qualifications.--To be eligible for 
        appointment to the Service, an individual shall--
                    ``(A) have conducted outstanding research 
                in the field of agriculture or forestry;
                    ``(B) have earned a doctoral level degree 
                at an institution of higher education (as 
                defined in section 101 of the Higher Education 
                Act of 1965 (20 U.S.C. 1001)); and
                    ``(C) meet qualification standards 
                prescribed by the Director of the Office of 
                Personnel Management for appointment to a 
                position at level GS-15 of the General 
                Schedule.
            ``(3) Number.--Not more than 100 individuals may 
        serve as members of the Service at any 1 time.
            ``(4) Other requirements.--
                    ``(A) In general.--Subject to subparagraph 
                (B) and subsection (d)(2), the Secretary may 
                appoint and employ a member of the Service 
                without regard to--
                            ``(i) the provisions of title 5, 
                        United States Code, governing 
                        appointments in the competitive 
                        service;
                            ``(ii) the provisions of subchapter 
                        I of chapter 35 of title 5, United 
                        States Code, relating to retention 
                        preference;
                            ``(iii) the provisions of chapter 
                        43 of title 5, United States Code, 
                        relating to performance appraisal and 
                        performance actions;
                            ``(iv) the provisions of chapter 51 
                        and subchapter III of chapter 53 of 
                        title 5, United States Code, relating 
                        to classification and General Schedule 
                        pay rates; and
                            ``(v) the provisions of chapter 75 
                        of title 5, United States Code, 
                        relating to adverse actions.
                    ``(B) Exception.--A member of the Service 
                appointed and employed by the Secretary under 
                subparagraph (A) shall have the same right of 
                appeal to the Merit Systems Protection Board 
                and the same right to file a complaint with the 
                Office of Special Counsel as an employee 
                appointedto a position at level GS-15 of the 
General Schedule.
    ``(c) Performance Appraisal System.--The Secretary shall 
develop a performance appraisal system for members of the 
Service that is designed to--
            ``(1) provide for the systematic appraisal of the 
        employment performance of the members; and
            ``(2) encourage excellence in employment 
        performance by the members.
    ``(d) Compensation.--
            ``(1) In general.--Subject to paragraph (2), the 
        Secretary shall determine the compensation of members 
        of the Service.
            ``(2) Limitations.--The rate of pay for a member of 
        the Service shall--
                    ``(A) not be less than the minimum rate 
                payable for a position at level GS-15 of the 
                General Schedule; and
                    ``(B) not be more than the rate payable for 
                a position at level I of the Executive 
                Schedule, unless the rate is approved by the 
                President under section 5377(d)(2) of title 5, 
                United States Code.
    ``(e) Retirement Contributions.--
            ``(1) In general.--On the request of a member of 
        the Service who was an employee of an institution of 
        higher education (as defined in section 101 of the 
        Higher Education Act of 1965 (20 U.S.C. 1001)) 
        immediately prior to appointment as a member of the 
        Service and who retains the right to continue to make 
        contributions to the retirement system of the 
        institution, the Secretary may contribute an amount not 
        to exceed 10 percent of the basic pay of the member to 
        the retirement system of the institution on behalf of 
        the member.
            ``(2) Federal retirement system.--
                    ``(A) In general.--Subject to subparagraph 
                (B), a member for whom a contribution is made 
                under paragraph (1) shall not, as a result of 
                serving as a member of the Service, be covered 
                by, or earn service credit under, chapter 83 or 
                84 of title 5, United States Code.
                    ``(B) Annual leave.--Service of a member of 
                the Service described in subparagraph (A) shall 
                be creditable for determining years of service 
                under section 6303(a) of title 5, United States 
                Code.
    ``(f) Involuntary Separation.--
            ``(1) In general.--Subject to paragraph (2) and 
        notwithstanding the provisions of title 5, United 
        States Code, governing appointment in the competitive 
        service, in the case of an individual who is separated 
        from the Service involuntarily and without cause--
                    ``(A) the Secretary may appoint the 
                individual to a position in the competitive 
                civil service at level GS-15 of the General 
                Schedule; and
                    ``(B) the appointment shall be a career 
                appointment.
            ``(2) Excepted civil service.--In the case of an 
        individual described in paragraph (1) who immediately 
        prior to appointment as a member of the Service was not 
        a career appointee in the civil service or the Senior 
        Executive Service, the appointment of the individual 
        under paragraph (1)--
                    ``(A) shall be to the excepted civil 
                service; and
                    ``(B) may not exceed a period of 2 
                years.''.

SEC. 7220. TERMINATION OF CERTAIN SCHEDULE A APPOINTMENTS.

    (a) Termination.--Not later than January 31, 2003, the 
Secretary of Agriculture shall terminate each appointment 
listed as an excepted position under schedule A of the General 
Schedule made by the Secretary to the Federal civil service of 
an individual who holds dual government appointments, and who 
carries out agricultural extension work in a program at a 
college or university eligible to receive funds, under--
            (1) the Smith-Lever Act (7 U.S.C. 341 et seq.);
            (2) section 1444 of the National Agricultural 
        Research, Extension, and Teaching Policy Act of 1977 (7 
        U.S.C. 3221); or
            (3) section 208(e) of the District of Columbia 
        Public Postsecondary Education Reorganization Act (88 
        Stat. 1428).
    (b) Continuation of Certain Federal Benefits.--
            (1) In general.--Notwithstanding title 5, United 
        States Code, and subject to paragraph (2), an 
        individual described in subsection (a), during the 
        period the individual is employed in an agricultural 
        extension program described in subsection (a) without a 
        break in service, shall continue to--
                    (A) be eligible to participate, to the same 
                extent that the individual was eligible to 
                participate (on the day before the date of 
                enactment of this Act), in--
                            (i) the Federal Employee Health 
                        Benefits Program;
                            (ii) the Federal Employee Group 
                        Life Insurance Program;
                            (iii) the Civil Service Retirement 
                        System;
                            (iv) the Federal Employee 
                        Retirement System;
                            (v) the Thrift Savings Plan; and
                            (vi) the Federal Long Term Care 
                        Insurance Program; and
                    (B) receive Federal Civil Service 
                employment credit to the same extent that the 
                individual was receiving such credit on the day 
                before the date of enactment of this Act.
            (2) Limitations.--An individual may continue to be 
        eligible for the benefits described in paragraph (1) 
        if--
                    (A) in the case of an individual who 
                remains employed in the agricultural extension 
                program described in subsection (a) on the date 
                of enactment of this Act, the employing college 
                or university continues to fulfill the 
                administrative and financial responsibilities 
                (including making agency contributions) 
                associated with providing those benefits, as 
                determined by the Secretary of Agriculture; and
                    (B) in the case of an individual who 
                changes employment to a second college or 
                university described in subsection (a)--
                            (i) the individual continues to 
                        work in an agricultural extension 
                        program described in subsection (a), as 
                        determined by the Secretary of 
                        Agriculture;
                            (ii) the second college or 
                        university--
                                    (I) fulfills the 
                                administrative and financial 
                                responsibilities (including 
                                making agency contributions) 
                                associated with providing those 
                                benefits, as determined by the 
                                Secretary of Agriculture; and
                                    (II) within 1 year before 
                                the date of the employment of 
                                the individual, had employed a 
                                different individual described 
                                in subsection (a) who had 
                                performed the same duties of 
                                employment; and
                            (iii) the individual was eligible 
                        for those benefits on the day before 
                        the date of enactment of this Act.

SEC. 7221. BIOSECURITY PLANNING AND RESPONSE PROGRAMS.

    (a) Biosecurity.--The National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et 
seq.) is amended by adding at the end the following:

                       ``Subtitle N--Biosecurity

``SEC. 1484. SPECIAL AUTHORIZATION FOR BIOSECURITY PLANNING AND 
                    RESPONSE.

    ``(a) Authorization of Appropriations.--In addition to 
amounts for agricultural research, extension, and education 
under this Act, there are authorized to be appropriated for 
agricultural research, education, and extension activities for 
biosecurity planning and response such sums as are necessary 
for each of fiscal years 2002 through 2007.
    ``(b) Use of Funds.--Using any authority available to the 
Secretary, the Secretary shall use funds made available under 
this section to carry out agricultural research, education, and 
extension activities (including through competitive grants) for 
the following:
            ``(1) To reduce the vulnerability of the United 
        States food and agricultural system to chemical or 
        biological attack.
            ``(2) To continue partnerships with institutions of 
        higher education and other institutions to help form 
        stable, long-term programs to enhance the biosecurity 
        of the United States, including the coordination of the 
        development, implementation, and enhancement of diverse 
        capabilities for addressing threats to the Nation's 
        agricultural economy and food supply with special 
        emphasis on planning, training, outreach, and research 
        activities related to vulnerability analyses, incident 
        response, and detection and prevention technologies.
            ``(3) To make competitive grants to universities 
        and qualified research institutions for research on 
        counterbioterrorism.
            ``(4) To counter or otherwise respond to chemical 
        or biological attack.

``SEC. 1485. AGRICULTURE RESEARCH FACILITY EXPANSION AND SECURITY 
                    UPGRADES.

    ``(a) In General.--To enhance the security of agriculture 
in the United States against threats posed by bioterrorism, the 
Secretary shall make expansion or security upgrade grants on a 
competitive basis to colleges and universities (as defined in 
section 1404(4)).
    ``(b) Limitation on Grants.--Grants to a recipient under 
this section shall not exceed $10,000,000 in any fiscal year.
    ``(c) Requirements for Grants.--The Secretary shall make a 
grant under this section only if the grant applicant provides 
satisfactory assurances to the Secretary that--
            ``(1) sufficient funds are available to pay the 
        non-Federal share of the cost of the proposed expansion 
        or security upgrades; and
            ``(2) the proposed expansion or security upgrades 
        meet such reasonable qualifications as may be 
        established by the Secretary with respect to biosafety 
        and biosecurity requirements necessary to protect 
        facility staff, members of the public, and the food 
        supply.
    ``(d) Additional Requirements for Grants for Facility 
Expansion.--The Secretary shall make a grant under this section 
for the expansion, renovation, remodeling, or alteration 
(collectively referred to in this section as ``expansion'') of 
a facility only if the grant applicant provides such assurances 
as the Secretary determines to be satisfactory to ensure the 
following:
            ``(1) For not less than 20 years after the grant is 
        awarded, the facility shall be used for the purposes of 
        the research for which the facility was expanded, as 
        described in the grant application.
            ``(2) Sufficient funds will be available, as of the 
        date of completion of the expansion, for the effective 
        use of the facility for the purposes of the research 
        for which the facility was expanded.
            ``(3) The proposed expansion--
                    ``(A) will increase the capability of the 
                applicant to conduct research for which the 
                facility was expanded; or
                    ``(B) is necessary to improve the quality 
                of the research of the applicant.
    ``(e) Amount of Grant.--The amount of a grant awarded under 
this section shall be determined by the Secretary.
    ``(f) Federal Share.--The Federal share of the cost of any 
expansion or security upgrade carried out using funds from a 
grant provided under this section shall not exceed 50 percent.
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as are necessary for each fiscal year.''.
    (b) Sense of Congress on Increasing Capacity for Research 
on Biosecurity and Animal and Plant Health Diseases.--It is the 
sense of Congress that funding for the Agricultural Research 
Service, the Animal and Plant Health Inspection Service, and 
other agencies of the Department of Agriculture with 
responsibilities for biosecurity should be increased as 
necessary to improve the capacity of the agencies to conduct 
research and analysis of, and respond to, bioterrorism and 
animal and plant diseases.

SEC. 7222. INDIRECT COSTS FOR SMALL BUSINESS INNOVATION RESEARCH 
                    GRANTS.

    Section 1462 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310) is 
amended--
            (1) by inserting ``(a) In General.--'' before 
        ``Except''; and
            (2) by adding at the end the following:
    ``(b) Exception.--Subsection (a) shall not apply to a grant 
awarded competitively under section 9 of the Small Business Act 
(15 U.S.C. 638).''.

SEC. 7223. CARBON CYCLE RESEARCH.

    Section 221 of the Agricultural Risk Protection Act of 2000 
(Public Law 106-224; 114 Stat. 407), as amended by section 9009 
of this Act, is amended--
            (1) in subsection (a), by striking ``Of the 
        amount'' and all that follows through ``to provide'' 
        and inserting ``To the extent funds are made available 
        for this purpose, the Secretary shall provide'';
            (2) in subsection (f), by striking ``under 
        subsection (a)'' and inserting ``for this section''; 
        and
            (3) by adding at the end the following new 
        subsection:
    ``(g) Authorization of Appropriations.--There are 
authorized to be appropriated for fiscal years 2002 through 
2007 such sums as may be necessary to carry out this 
section.''.

        Subtitle C--Repeal of Certain Activities and Authorities

SEC. 7301. FOOD SAFETY RESEARCH INFORMATION OFFICE AND NATIONAL 
                    CONFERENCE.

    (a) Repeal.--Subsections (b) and (c) of section 615 of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7654(b) and (c)) are repealed.
    (b) Conforming Amendments.--
            (1) Generally.--Section 615 of such Act is 
        amended--
                    (A) in the section heading, by striking 
                ``AND NATIONAL CONFERENCE'';
                    (B) by striking ``(a) Food Safety Research 
                Information Office.--'';
                    (C) by redesignating paragraphs (1), (2), 
                and (3) as subsections (a), (b), and (c), 
                respectively, and moving the margins 2 ems to 
                the left;
                    (D) in subsection (b) (as so redesignated), 
                by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively, and 
                moving the margins 2 ems to the left; and
                    (E) in subsection (c) (as so redesignated), 
                by striking ``this subsection'' and inserting 
                ``this section''.
            (2) Table of sections.--The table of sections for 
        such Act is amended by striking ``and National 
        Conference'' in the item relating to section 615.

SEC. 7302. REIMBURSEMENT OF EXPENSES UNDER SHEEP PROMOTION, RESEARCH, 
                    AND INFORMATION ACT OF 1994.

    Section 617 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (Public Law 105-185; 112 Stat. 
607) is repealed.

SEC. 7303. MARKET EXPANSION RESEARCH.

    Section 1436 of the Food Security Act of 1985 (7 U.S.C. 
1632) is repealed.

SEC. 7304. NATIONAL ADVISORY BOARD ON AGRICULTURAL WEATHER.

    (a) Repeal.--Section 1639 of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 5853) is 
repealed.
    (b) Conforming Amendment.--Section 1640(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5854(b)) is amended by striking ``take into'' and all that 
follows through ``Weather and''.

SEC. 7305. AGRICULTURAL INFORMATION EXCHANGE WITH IRELAND.

    Section 1420 of the National Agricultural Research, 
Extension and Teaching Policy Act Amendments of 1985 (Public 
Law 99-198; 99 Stat. 1551) is repealed.

SEC. 7306. PESTICIDE RESISTANCE STUDY.

    Section 1437 of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1985 (Public 
Law 99-198; 99 Stat. 1558) is repealed.

SEC. 7307. EXPANSION OF EDUCATION STUDY.

    Section 1438 of the National Agricultural Research, 
Extension, and Teaching Policy Act Amendments of 1985 (Public 
Law 99-198; 99 Stat. 1559) is repealed.

SEC. 7308. TASK FORCE ON 10-YEAR STRATEGIC PLAN FOR AGRICULTURAL 
                    RESEARCH FACILITIES.

    (a) Repeal.--Section 4 of the Research Facilities Act (7 
U.S.C. 390b) is repealed.
    (b) Conforming Amendment.--Section 2 of such Act (7 U.S.C. 
390) is amended by striking paragraph (5).

                      Subtitle D--New Authorities

SEC. 7401. SUBTITLE DEFINITIONS.

    In this subtitle:
            (1) Department.--The term ``Department'' means the 
        Department of Agriculture.
            (2) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.

SEC. 7402. RESEARCH EQUIPMENT GRANTS.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 is amended by inserting after section 1462 
(7 U.S.C. 3310) the following:

``SEC. 1462A. RESEARCH EQUIPMENT GRANTS.

    ``(a) In General.--The Secretary may make competitive 
grants for the acquisition of special purpose scientific 
research equipment for use in the food and agricultural 
sciences programs of eligible institutions described in 
subsection (b).
    ``(b) Eligible Institutions.--The Secretary may make a 
grant under this section to--
            ``(1) a college or university; or
            ``(2) a State cooperative institution.
    ``(c) Maximum Amount.--The amount of a grant made to an 
eligible institution under this section may not exceed 
$500,000.
    ``(d) Prohibition on Charge of Equipment as Indirect 
Costs.--The cost of acquisition or depreciation of equipment 
purchased with a grant under this section shall not be--
            ``(1) charged as an indirect cost against another 
        Federal grant; or
            ``(2) included as part of the indirect cost pool 
        for purposes of calculating the indirect cost rate of 
        an eligible institution.
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated to carry out this section such 
sums as may be necessary for each of fiscal years 2002 through 
2007.''.

SEC. 7403. JOINT REQUESTS FOR PROPOSALS.

    (a) Purposes.--The purposes of this section are--
            (1) to reduce the duplication of administrative 
        functions relating to grant awards and administration 
        among Federal agencies conducting similar types of 
        research, education, and extension programs;
            (2) to maximize the use of peer review resources in 
        research, education, and extension programs; and
            (3) to reduce the burden on potential recipients 
        that may offer similar proposals to receive competitive 
        grants under different Federal programs in overlapping 
        subject areas.
    (b) Authority.--The National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 is amended by 
inserting after section 1473A (7 U.S.C. 3319a) the following:

``SEC. 1473B. JOINT REQUESTS FOR PROPOSALS.

    ``(a) In General.--In carrying out any competitive 
agricultural research, education, or extension grant program 
authorized under this or any other Act, the Secretary may 
cooperate with 1 or more other Federal agencies (including the 
National Science Foundation) in issuing joint requests for 
proposals, awarding grants, and administering grants, for 
similar or related research, education, or extension projects 
or activities.
    ``(b) Administration.--
            ``(1) Secretary.--The Secretary may delegate 
        authority to issue requests for proposals, make grant 
        awards, or administer grants, in whole or in part, to a 
        cooperating Federal agency.
            ``(2) Cooperating federal agency.--The cooperating 
        Federal agency may delegate to the Secretary authority 
        to issue requests for proposals, make grant awards, or 
        administer grants, in whole or in part.
    ``(c) Regulations.--The Secretary and a cooperating Federal 
agency may agree to make applicable to recipients of grants--
            ``(1) the post-award grant administration 
        regulations applicable to recipients of grants from the 
        Secretary; or
            ``(2) the post-award grant administration 
        regulations applicable to recipients of grants from the 
        cooperating Federal agency.
    ``(d) Joint Peer Review Panels.--Subject to section 1413B, 
the Secretary and a cooperating Federal agency may establish 
joint peer review panels for the purpose of evaluating grant 
proposals.''.

SEC. 7404. REVIEW OF AGRICULTURAL RESEARCH SERVICE.

    (a) In General.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a task 
force to--
            (1) conduct a review of the Agricultural Research 
        Service; and
            (2) evaluate the merits of establishing one or more 
        National Institutes focused on disciplines important to 
        the progress of food and agricultural science.
    (b) Membership.--
            (1) In general.--The Task Force shall consist of 8 
        members, appointed by the Secretary, that--
                    (A) have a broad-based background in plant, 
                animal, and agricultural sciences research, 
                food, nutrition, biotechnology, crop production 
                methods, environmental science, or related 
                disciplines; and
                    (B) are familiar with the role and 
                infrastructure used to conduct Federal and 
                private research, including--
                            (i) the Agricultural Research 
                        Service;
                            (ii) the National Institutes of 
                        Health;
                            (iii) the National Science 
                        Foundation;
                            (iv) the National Aeronautics and 
                        Space Administration;
                            (v) the Department of Energy 
                        laboratory system; or
                            (vi) the Cooperative State 
                        Research, Education, and Extension 
                        Service.
            (2) Private sector.--Of the members appointed under 
        paragraph (1), the Secretary shall appoint at least 6 
        members that are members of the private sector or come 
        from institutions of higher education.
            (3) Plant and agricultural sciences research.--Of 
        the members appointed under paragraph (1), the 
        Secretary shall appoint at least 3 members that have an 
        extensive background and preeminence in the field of 
        plant, animal, and agricultural sciences research.
            (4) Chairperson.--Of the members appointed under 
        paragraph (1), the Secretary shall designate a 
        Chairperson that has significant leadership experience 
        in educational and research institutions and indepth 
        knowledge of the research enterprises of the United 
        States.
            (5) Consultation.--Before appointing members of the 
        Task Force under this subsection, the Secretary shall 
        consult with the National Academy of Sciences and the 
        Office of Science and Technology Policy.
    (c) Duties.--The Task Force shall--
            (1) conduct a review of the purpose, efficiency, 
        effectiveness, and impact on agricultural research of 
        the Agricultural Research Service;
            (2) conduct a review and evaluation of the merits 
        of establishing one or more National Institutes (such 
        as National Institutes for Plant and Agricultural 
        Sciences) focused on disciplines important to the 
        progress of food and agricultural sciences, and, if 
        establishment of one or more National Institutes is 
        recommended, provide further recommendations to the 
        Secretary, including the structure for establishing 
        each Institute, the multistate area location of each 
        Institute, and the amount of funding necessary to 
        establish each Institute; and
            (3) submit the reports required by subsection (d).
    (d) Reports.--Not later than 12 months after the date of 
enactment of this Act, the Task Force shall submit to the 
Committee on Agriculture of the House of Representatives, the 
Committee on Agriculture, Nutrition, and Forestry of the 
Senate, and the Secretary--
            (1) a report on the review and evaluation required 
        under subsection (c)(1); and
            (2) a report on the review and evaluation required 
        under subsection (c)(2).
    (e) Funding.--The Secretary shall use to carry out this 
section not more than 0.1 percent of the amount of 
appropriations available to the Agricultural Research Service 
for fiscal year 2003.

SEC. 7405. BEGINNING FARMER AND RANCHER DEVELOPMENT PROGRAM.

    (a) Definition of Beginning Farmer or Rancher.--In this 
section, the term ``beginning farmer or rancher'' means a 
person that--
            (1)(A) has not operated a farm or ranch; or
            (B) has operated a farm or ranch for not more than 
        10 years; and
            (2) meets such other criteria as the Secretary may 
        establish.
    (b) Program.--The Secretary shall establish a beginning 
farmer and rancher development program to provide training, 
education, outreach, and technical assistance initiatives for 
beginning farmers or ranchers.
    (c) Grants.--
            (1) In general.--In carrying out this section, the 
        Secretary shall make competitive grants to support new 
        and established local and regional training, education, 
        outreach, and technical assistance initiatives for 
        beginning farmers or ranchers, including programs and 
        services (as appropriate) relating to--
                    (A) mentoring, apprenticeships, and 
                internships;
                    (B) resources and referral;
                    (C) assisting beginning farmers or ranchers 
                in acquiring land from retiring farmers and 
                ranchers;
                    (D) innovative farm and ranch transfer 
                strategies;
                    (E) entrepreneurship and business training;
                    (F) model land leasing contracts;
                    (G) financial management training;
                    (H) whole farm planning;
                    (I) conservation assistance;
                    (J) risk management education;
                    (K) diversification and marketing 
                strategies;
                    (L) curriculum development;
                    (M) understanding the impact of 
                concentration and globalization;
                    (N) basic livestock and crop farming 
                practices;
                    (O) the acquisition and management of 
                agricultural credit;
                    (P) environmental compliance;
                    (Q) information processing; and
                    (R) other similar subject areas of use to 
                beginning farmers or ranchers.
            (2) Eligibility.--To be eligible to receive a grant 
        under this subsection, the recipient shall be a 
        collaborative State, tribal, local, or regionally-based 
        network or partnership of public or private entities, 
        which may include--
                    (A) a State cooperative extension service;
                    (B) a Federal, State, or tribal agency;
                    (C) a community-based and nongovernmental 
                organization;
                    (D) a college or university (including an 
                institution awarding an associate's degree) or 
                foundation maintained by a college or 
                university; or
                    (E) any other appropriate partner, as 
                determined by the Secretary.
            (3) Term of grant.--The term of a grant under this 
        subsection shall not exceed 3 years.
            (4) Matching requirement.--To be eligible to 
        receive a grant under this subsection, a recipient 
        shall provide a match in the form of cash or in-kind 
        contributions in an amount equal to 25 percent of the 
        funds provided by the grant.
            (5) Set-aside.--Not less than 25 percent of funds 
        used to carry out this subsection for a fiscal year 
        shall be used to support programs and services that 
        address the needs of--
                    (A) limited resource beginning farmers or 
                ranchers (as defined by the Secretary);
                    (B) socially disadvantaged beginning 
                farmers or ranchers (as defined in section 
                355(e) of the Consolidated Farm and Rural 
                Development Act (7 U.S.C. 2003(e)); and
                    (C) farmworkers desiring to become farmers 
                or ranchers.
            (6) Prohibition.--A grant made under this 
        subsection may not be used for the planning, repair, 
        rehabilitation, acquisition, or construction of a 
        building or facility.
            (7) Administrative costs.--The Secretary shall use 
        not more than 4 percent of the funds made available to 
        carry out this subsection for administrative costs 
        incurred by the Secretary in carrying out this section.
    (d) Education Teams.--
            (1) In general.--In carrying out this section, the 
        Secretary shall establish beginning farmer and rancher 
        education teams to develop curricula and conduct 
        educational programs and workshops for beginning 
        farmers or ranchers in diverse geographical areas of 
        the United States.
            (2) Curriculum.--In promoting the development of 
        curricula, the Secretary shall, to the maximum extent 
        practicable, include modules tailored to specific 
        audiences of beginning farmers or ranchers, based on 
        crop or regional diversity.
            (3) Composition.--In establishing an education team 
        for a specific program or workshop, the Secretary 
        shall, to the maximum extent practicable--
                    (A) obtain the short-term services of 
                specialists with knowledge and expertise in 
                programs serving beginning farmers or ranchers; 
                and
                    (B) use officers and employees of the 
                Department with direct experience in programs 
                of the Department that may be taught as part of 
                the curriculum for the program or workshop.
            (4) Cooperation.--
                    (A) In general.--In carrying out this 
                subsection, the Secretary shall cooperate, to 
                the maximum extent practicable, with--
                            (i) State cooperative extension 
                        services;
                            (ii) Federal and State agencies;
                            (iii) community-based and 
                        nongovernmental organizations;
                            (iv) colleges and universities 
                        (including an institution awarding an 
                        associate's degree) or foundations 
                        maintained by a college or university; 
                        and
                            (v) other appropriate partners, as 
                        determined by the Secretary.
                    (B) Cooperative agreement.--Notwithstanding 
                chapter 63 of title 31, United States Code, the 
                Secretary may enter into a cooperative 
                agreement to reflect the terms of any 
                cooperation under subparagraph (A).
    (e) Curriculum and Training Clearinghouse.--The Secretary 
shall establish an online clearinghouse that makes available to 
beginning farmers or ranchers education curricula and training 
materials and programs, which may include online courses for 
direct use by beginning farmers or ranchers.
    (f) Stakeholder Input.--In carrying out this section, the 
Secretary shall seek stakeholder input from--
            (1) beginning farmers and ranchers;
            (2) national, State, tribal, and local 
        organizations and other persons with expertise in 
        operating beginning farmer and rancher programs; and
            (3) the Advisory Committee on Beginning Farmers and 
        Ranchers established under section 5 of the 
        Agricultural Credit Improvement Act of 1992 (7 U.S.C. 
        1929 note; Public Law 102-554).
    (g) Participation by Other Farmers and Ranchers.--Nothing 
in this section prohibits the Secretary from allowing farmers 
and ranchers who are not beginning farmers or ranchers from 
participating in programs authorized under this section to the 
extent that the Secretary determines that such participation is 
appropriate and will not detract from the primary purpose of 
educating beginning farmers and ranchers.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of fiscal years 2002 through 2007.

SEC. 7406. SENSE OF CONGRESS REGARDING DOUBLING OF FUNDING FOR 
                    AGRICULTURAL RESEARCH.

    It is the sense of Congress that--
            (1) Federal funding for food and agricultural 
        research has been essentially constant for 2 decades, 
        putting at risk the scientific base on which food and 
        agricultural advances have been made;
            (2) the resulting increase in the relative 
        proportion of private sector, industry investments in 
        food and agricultural research has led to questions 
        about the independence and objectivity of research and 
        outreach conducted by the Federal and university 
        research sectors; and
            (3) funding for food and agricultural research 
        should be at least doubled over the next 5 fiscal 
        years--
                    (A) to restore the balance between public 
                and private sector funding for food and 
                agricultural research; and
                    (B) to maintain the scientific base on 
                which food and agricultural advances are made.

SEC. 7407. ORGANIC PRODUCTION AND MARKET DATA INITIATIVES.

    The Secretary shall ensure that segregated data on the 
production and marketing of organic agricultural products is 
included in the ongoing baseline of data collection regarding 
agricultural production and marketing.

SEC. 7408. INTERNATIONAL ORGANIC RESEARCH COLLABORATION.

    The Secretary, acting through the Agricultural Research 
Service (including the National Agricultural Library) and the 
Economic Research Service, shall facilitate access by research 
and extension professionals, farmers, and other interested 
persons in the United States to, and the use by those persons 
of, organic research conducted outside the United States.

SEC. 7409. REPORT ON PRODUCERS AND HANDLERS OF ORGANIC AGRICULTURAL 
                    PRODUCTS.

    Not later than 1 year after funds are made available to 
carry out this section, the Secretary shall submit to Congress 
a report that--
            (1) describes--
                    (A) the extent to which producers and 
                handlers of organic agricultural products are 
                contributing to research and promotion programs 
                of the Department;
                    (B) the extent to which producers and 
                handlers of organic agricultural products are 
                surveyed for ideas for research and promotion;
                    (C) ways in which the programs reflect the 
                contributions made by producers and handlers of 
                organic agricultural products and directly 
                benefit the producers and handlers; and
                    (D) the implementation of initiatives that 
                directly benefit organic producers and 
                handlers; and
            (2) evaluates industry and other proposals for 
        improving the treatment of certified organic 
        agricultural products under Federal marketing orders, 
        including proposals to target additional resources for 
        research and promotion of organic products and to 
        differentiate between certified organic and other 
        products in new or existing volume limitations or other 
        orderly marketing requirements.

SEC. 7410. REPORT ON GENETICALLY MODIFIED PEST-PROTECTED PLANTS.

    It is the sense of Congress that, not later than 1 year 
after the date of enactment of this Act, the Secretary should--
            (1) review the recommendations of the Committee on 
        Genetically Modified Pest-Protected Plants of the Board 
        on Agriculture and Natural Resources of the National 
        Research Council made during 2000 and the Committee on 
        Environmental Impacts Associated with Commercialization 
        of Transgenic Plants made during 2002, concerning food 
        safety, ecological research, monitoring needs for 
        transgenic crops with plant incorporated protectants, 
        and the environmental effects of transgenic plants; and
            (2) submit to the Committee on Agriculture of the 
        House of Representatives and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        report that describes actions taken to implement those 
        recommendations by agencies within the Department, 
        including agencies that develop or implement programs 
        or objectives relating to marketing, regulation, food 
        safety, research, education, or economics.

SEC. 7411. STUDY OF NUTRIENT BANKING.

    (a) In General.--The Secretary may conduct a study to 
evaluate nutrient banking for the purpose of enhancing the 
health and viability of watersheds in areas with large 
concentrations of animal producing units.
    (b) Components.--In conducting any study under subsection 
(a), the Secretary shall evaluate the costs, needs, and means 
by which litter may be collected and distributed outside the 
applicable watershed to reduce potential point source and 
nonpoint source phosphorous pollution.
    (c) Report.--The Secretary shall submit to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
that describes the results of any study conducted under 
subsection (a).

SEC. 7412. GRANTS FOR YOUTH ORGANIZATIONS.

    Title IV of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7621 et seq.) (as 
amended by section 7206(e)) is amended by adding at the end the 
following:

``SEC. 410. GRANTS FOR YOUTH ORGANIZATIONS.

    ``(a) In General.--The Secretary, acting through the 
Administrator of the Cooperative State Research, Education, and 
Extension Service, shall make grants to the Girl Scouts of the 
United States of America, the Boy Scouts of America, the 
National 4-H Council, and the National FFA Organization to 
establish pilot projects to expand the programs carried out by 
the organizations in rural areas and small towns (including, 
with respect to the National 4-H Council, activities provided 
for in Public Law 107-19 (115 Stat. 153)).
    ``(b) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available $8,000,000 for 
fiscal year 2002, which shall remain available until expended.
    ``(c) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section such sums as are 
necessary for each of fiscal years 2003 through 2007.''.

                       Subtitle E--Miscellaneous

SEC. 7501. RESIDENT INSTRUCTION AND DISTANCE EDUCATION AT INSTITUTIONS 
                    OF HIGHER EDUCATION IN UNITED STATES INSULAR AREAS.

    (a) Purpose.--It is the purpose of this subtitle to promote 
and strengthen higher education in the food and agricultural 
sciences at institutions of higher education (as defined in 
section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 
1001(a))) that have demonstrable capacity to carry out teaching 
and extension programs in food and agricultural sciences and 
that are located in the insular areas of the Commonwealth of 
Puerto Rico, the Virgin Islands of the United States, Guam, 
American Samoa, the Commonwealth of the Northern Mariana 
Islands, the Federated States of Micronesia, the Republic of 
the Marshall Islands, or the Republic of Palau by formulating 
and administering programs to enhance teaching programs in 
agriculture, natural resources, forestry, veterinary medicine, 
home economics, and disciplines closely allied to the food and 
agriculture production and delivery systems.

SEC. 7502. DEFINITIONS.

    (a) In General.--Section 1404 of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3103) is amended--
            (1) by redesignating paragraphs (10) through (17) 
        as paragraphs (11) through (18), respectively;
            (2) by inserting after paragraph (9) the following:
            ``(10) Insular area.--The term `insular area' 
        means--
                    ``(A) the Commonwealth of Puerto Rico;
                    ``(B) Guam;
                    ``(C) American Samoa;
                    ``(D) the Commonwealth of the Northern 
                Mariana Islands;
                    ``(E) the Federated States of Micronesia;
                    ``(F) the Republic of the Marshall Islands;
                    ``(G) the Republic of Palau; and
                    ``(H) the Virgin Islands of the United 
                States.''; and
            (3) by striking paragraph (13) (as so redesignated) 
        and inserting the following:
            ``(13) State.--The term `State' means--
                    ``(A) a State;
                    ``(B) the District of Columbia; and
                    ``(C) any insular area.''.
    (b) Effect of Amendments.--The amendments made by 
subsection (a) shall not affect any basis for distribution of 
funds by formula (in effect on the date of enactment of this 
Act) to--
            (1) the Federated States of Micronesia;
            (2) the Republic of the Marshall Islands; or
            (3) the Republic of Palau.

SEC. 7503. RESIDENT INSTRUCTION AND DISTANCE EDUCATION GRANTS PROGRAM 
                    FOR INSULAR AREA INSTITUTIONS OF HIGHER EDUCATION.

    The National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3101 et seq.) is amended by adding 
at the end the following:

    ``Subtitle O--Institutions of Higher Education in Insular Areas

``SEC. 1489. DEFINITION.

    ``For the purposes of this subtitle, the term `eligible 
institution' means an institution of higher education (as 
defined in section 101(a) of the Higher Education Act of 1965 
(20 U.S.C. 1001(a)) inan insular area that has demonstrable 
capacity to carry out teaching and extension programs in the food and 
agricultural sciences.

``SEC. 1490. DISTANCE EDUCATION GRANTS FOR INSULAR AREAS.

    ``(a) In General.--The Secretary may make competitive or 
noncompetitive grants to eligible institutions in insular areas 
to strengthen the capacity of such institutions to carry out 
distance food and agricultural education programs using digital 
network technologies.
    ``(b) Use.--Grants made under this section shall be used--
            ``(1) to acquire the equipment, instrumentation, 
        networking capability, hardware and software, digital 
        network technology, and infrastructure necessary to 
        teach students and teachers about technology in the 
        classroom;
            ``(2) to develop and provide educational services 
        (including faculty development) to prepare students or 
        faculty seeking a degree or certificate that is 
        approved by the State or a regional accrediting body 
        recognized by the Secretary of Education;
            ``(3) to provide teacher education, library and 
        media specialist training, and preschool and teacher 
        aid certification to individuals who seek to acquire or 
        enhance technology skills in order to use technology in 
        the classroom or instructional process;
            ``(4) to implement a joint project to provide 
        education regarding technology in the classroom with a 
        local educational agency, community-based organization, 
        national nonprofit organization, or business; or
            ``(5) to provide leadership development to 
        administrators, board members, and faculty of eligible 
        institutions with institutional responsibility for 
        technology education.
    ``(c) Limitation on Use of Grant Funds.--Funds provided 
under this section shall not be used for the planning, 
acquisition, construction, rehabilitation, or repair of a 
building or facility.
    ``(d) Administration of Program.--The Secretary may carry 
out this section in a manner that recognizes the different 
needs and opportunities for eligible institutions in the 
Atlantic and Pacific Oceans.
    ``(e) Matching Requirement.--
            ``(1) In general.--The Secretary may establish a 
        requirement that an eligible institution receiving a 
        grant under this section shall provide matching funds 
        from non-Federal sources in an amount equal to not less 
        than 50 percent of the grant.
            ``(2) Waivers.--If the Secretary establishes a 
        matching requirement under paragraph (1), the Secretary 
        shall retain an option to waive the requirement for an 
        eligible institution for any fiscal year if the 
        Secretary determines that the institution will be 
        unlikely to meet the matching requirement for the 
        fiscal year.
    ``(f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of fiscal years 2002 through 2007.

``SEC. 1491. RESIDENT INSTRUCTION GRANTS FOR INSULAR AREAS.

    ``(a) In General.--The Secretary of Agriculture shall make 
competitive grants to eligible institutions to--
            ``(1) strengthen institutional educational 
        capacities, including libraries, curriculum, faculty, 
        scientific instrumentation, instruction delivery 
        systems, and student recruitment and retention, in 
        order to respond to identified State, regional, 
        national, or international education needs in the food 
        and agricultural sciences;
            ``(2) attract and support undergraduate and 
        graduate students in order to educate them in 
        identified areas of national need in the food and 
        agriculture sciences;
            ``(3) facilitate cooperative initiatives between 
        two or more insular area eligible institutions, or 
        between those institutions and units of State 
        Government or organizations in the private sector, to 
        maximize the development and use of resources such as 
        faculty, facilities, and equipment to improve food and 
        agricultural sciences teaching programs; and
            ``(4) conduct undergraduate scholarship programs to 
        assist in meeting national needs for training food and 
        agricultural scientists
    ``(b) Grant Requirements.--
            ``(1) The Secretary of Agriculture shall ensure 
        that each eligible institution, prior to receiving 
        grant funds under subsection (a), shall have a 
        significant demonstrable commitment to higher education 
        programs in the food and agricultural sciences and to 
        each specific subject area for which grant funds under 
        this section are to be used.
            ``(2) The Secretary of Agriculture may require that 
        any grant awarded under this section contain provisions 
        that require funds to be targeted to meet the needs 
        identified in section 1402.
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary for 
each of the fiscal years 2002 through 2007 to carry out this 
section.''.

SEC. 7504. DECLARATION OF EXTRAORDINARY EMERGENCY AND RESULTING 
                    AUTHORITIES.

    (a) Review of Payment of Compensation.--Section 415(e) of 
the Plant Protection Act (7 U.S.C. 7715(e)) is amended by 
inserting before the final period the following: ``or a review 
of longer than 60 days by any officer or employee of the 
Federal Government other than the Secretary or the designee of 
the Secretary''.
    (b) Review of Certain Decisions.--Section 442 of the Plant 
Protection Act (7 U.S.C. 7772) is amended by adding at the end 
the following new subsection:
    ``(c) Secretarial Discretion.--The action of any officer, 
employee, or agent of the Secretary in carrying out this Act, 
including determining the amount of and making any payment 
authorized to be made under this title, shall not be subject to 
a review of longer than 60 days by any officer or employee of 
the Federal Government other than the Secretary or the designee 
of the Secretary.''.
    (c) Methyl Bromide.--The Plant Protection Act (7 U.S.C. 
7701 et seq.) is amended by inserting after section 418 the 
following new section:

``SEC. 419. METHYL BROMIDE.

    ``(a) In General.--The Secretary, upon request of State, 
local, or tribal authorities, shall determine whether methyl 
bromide treatments or applications required by State, local, or 
tribal authorities to prevent the introduction, establishment, 
or spread of plant pests (including diseases) or noxious weeds 
should be authorized as an official control or official 
requirement. The Secretary shall not authorize such treatments 
or applications unless the Secretary finds there is no other 
registered, effective, and economically feasible alternative 
available.
    ``(b) Methyl Bromide Alternative.--The Secretary, in 
consultation with State, local and tribal authorities, shall 
establish a program to identify alternatives to methyl bromide 
for treatment and control of plant pests and weeds. For uses 
where no registered, effective, economically feasible 
alternatives available can currently be identified, the 
Secretary shall initiate research programs to develop 
alternative methods of control and treatment.
    ``(c) Registry.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall publish, and 
thereafter maintain, a registry of State, local, and tribal 
requirements authorized by the Secretary under this section.
    ``(d) Administration.--
            ``(1) Timeline for determination.--Upon the 
        promulgation of regulations to carry out this section, 
        the Secretary shall make the determination required by 
        subsection (a) not later than 90 days after receiving 
        the request for such a determination.
            ``(2) Construction.--Nothing in this section shall 
        be construed to alter or modify the authority of the 
        Administrator of the Environmental Protection Agency or 
        to provide any authority to the Secretary of 
        Agriculture under the Clean Air Act or regulations 
        promulgated under the Clean Air Act.''.

SEC. 7505. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
                    DEVELOPING COUNTRIES.

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

``SEC. 411. AGRICULTURAL BIOTECHNOLOGY RESEARCH AND DEVELOPMENT FOR 
                    DEVELOPING COUNTRIES.

    ``(a) Eligible Entity.--In this section, the term `eligible 
entity' means--
                    ``(A) an institution of higher education 
                that offers a curriculum in agriculture or the 
                biosciences;
                    ``(B) a nonprofit organization; or
                    ``(C) a consortium of for-profit 
                institutions and agricultural research 
                institutions.
    ``(b) Grant Program.--
            ``(1) In general.--The Secretary (acting through 
        the Foreign Agricultural Service) shall establish and 
        administer a program to make competitive grants to 
        eligible entities to develop agricultural biotechnology 
        for developing countries.
            ``(2) Use of funds.--Funds provided to an eligible 
        entity under this section may be used for projects that 
        use biotechnology to--
                    ``(A) enhance the nutritional content of 
                agricultural products that can be grown in 
                developing countries;
                    ``(B) increase the yield and safety of 
                agricultural products that can be grown in 
                developing countries;
                    ``(C) increase the yield of agricultural 
                products that are drought- and stress-resistant 
                and that can be grown in developing countries;
                    ``(D) extend the growing range of crops 
                that can be grown in developing countries;
                    ``(E) enhance the shelf-life of fruits and 
                vegetables grown in developing countries;
                    ``(F) develop environmentally sustainable 
                agricultural products that can be grown in 
                developing countries; and
                    ``(G) develop vaccines to immunize against 
                life-threatening illnesses and other 
                medications that can be administered by 
                consuming genetically-engineered agricultural 
                products.
    ``(c) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as may be necessary to 
carry out this section for each of fiscal years 2002 through 
2007.''.

SEC. 7506. LAND ACQUISITION AUTHORITY, NATIONAL PEANUT RESEARCH 
                    LABORATORY, DAWSON, GEORGIA.

    The limitation on the authority of the Agricultural 
Research Service to acquire lands by purchase using funds 
appropriated under the heading Agricultural Research Service-
salaries and expenses in the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies 
Appropriations Act, 2002 (Public Law 107-76; 115 Stat. 708), 
shall not apply to the purchase of land for a research farm for 
the National Peanut Research Laboratory in Dawson, Georgia, for 
which a lease with an option to purchase has been entered into 
before the date of enactment of this Act.

                          TITLE VIII--FORESTRY

        Subtitle A--Cooperative Forestry Assistance Act of 1978

SEC. 8001. REPEAL OF FORESTRY INCENTIVES PROGRAM AND STEWARDSHIP 
                    INCENTIVE PROGRAM.

    (a) Repeal.--The Cooperative Forestry Assistance Act of 
1978 is amended by striking section 4 (16 U.S.C. 2103) and 
section 6 (16 U.S.C. 2103b).
    (b) Use of Remaining Funds.--Notwithstanding the amendment 
made by subsection (a), the Secretary of Agriculture may use 
funds appropriated for fiscal year 2002 for the forestry 
incentives program or the stewardship incentive program, but 
not expended before the date of enactment of this Act, to carry 
out sections 4 and 6 of the Cooperative Forestry Assistance Act 
of 1978, as in effect on the date before the date of enactment 
of this Act.

SEC. 8002. ESTABLISHMENT OF FOREST LAND ENHANCEMENT PROGRAM.

    (a) Purposes.--The purposes of this section are--
            (1) to strengthen the commitment of the Secretary 
        of Agriculture to sustainable forest management to 
        enhance the productivity of timber, fish and wildlife 
        habitat, soil and water quality, wetland, recreational 
        resources, and aesthetic values of forest land; and
            (2) to establish a coordinated and cooperative 
        Federal, State, and local sustainable forestry program 
        for the establishment, management, maintenance, 
        enhancement, and restoration of forests on 
        nonindustrial private forest land.
    (b) Forest Land Enhancement Program.--The Cooperative 
Forestry Assistance Act of 1978 is amended by inserting after 
section 3 (16 U.S.C. 2102) the following:

``SEC. 4. FOREST LAND ENHANCEMENT PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Secretary of Agriculture 
        shall establish a forest land enhancement program--
                    ``(A) to provide financial assistance to 
                State foresters; and
                    ``(B) to encourage the long-term 
                sustainability of nonindustrial private forest 
                lands in the United States by assisting the 
                owners of nonindustrial private forest lands, 
                through State foresters, in more actively 
                managing the nonindustrial private forest lands 
                and related resources of those owners through 
                the use of State, Federal, and private sector 
                resource management expertise, financial 
                assistance, and educational programs.
            ``(2) Coordination and consultation.--The 
        Secretary, acting through State foresters, shall 
        implement the program--
                    ``(A) in coordination with the State Forest 
                Stewardship Coordinating Committees; and
                    ``(B) in consultation with other Federal, 
                State, and local natural resource management 
                agencies, institutions of higher education, and 
                a broad range of private sector interests.
    ``(b) Program Objectives.--In implementing the program, the 
Secretary shall target resources to achieve the following 
objectives:
            ``(1) Investing in practices to establish, restore, 
        protect, manage, maintain, and enhance the health and 
        productivity of the nonindustrial private forest lands 
        in the United States for timber, habitat for flora and 
        fauna, soil, water, and air quality, wetlands, and 
        riparian buffers.
            ``(2) Ensuring that afforestation, reforestation, 
        improvement of poorly stocked stands, timber stand 
        improvement, practices necessary to improve seedling 
        growth and survival, and growth enhancement practices 
        occur where needed to enhance and sustain the long-term 
        productivity of timber and nontimber forest resources 
        to help meet future public demand for all forest 
        resources and provide environmental benefits.
            ``(3) Reducing the risks and helping restore, 
        recover, and mitigate the damage to forests caused by 
        fire, insects, invasive species, disease, and damaging 
        weather.
            ``(4) Increasing and enhancing carbon sequestration 
        opportunities.
            ``(5) Enhancing implementation of agroforestry 
        practices.
            ``(6) Maintaining and enhancing the forest landbase 
        and leverage State and local financial and technical 
        assistance to owners that promote the same conservation 
        and environmental values.
            ``(7) Preserving the aesthetic quality of 
        nonindustrial private forest lands and providing 
        opportunities for outdoor recreation.
    ``(c) State Priority Plan.--
            ``(1) Development.--The State Forester and State 
        Forest Stewardship Coordinating Committee of a State 
        shall jointly develop and submit to the Secretary a 
        State priority plan that is intended to promote forest 
        management objectives in that State.
            ``(2) Report.--Not later than September 30, 2006, 
        each State that implemented a State priority plan shall 
        submit to the Secretary a report describing the status 
        of all activities and practices funded under the 
        program as of that date.
    ``(d) Owner Eligibility for Assistance.--
            ``(1) Eligibility criteria.--To be eligible for 
        cost-share assistance under the program, an owner of 
        nonindustrial private forest lands shall agree--
                    ``(A) to develop and implement, in 
                cooperation with a State forester, another 
                State official, or a professional resources 
                manager, a management plan that--
                            ``(i) except as provided in 
                        paragraph (2) or (3), provides for the 
                        treatment of not more than 1,000 acres 
                        of nonindustrial private forest lands;
                            ``(ii) is approved by the State 
                        forester; and
                            ``(iii) addresses site specific 
                        activities and practices; and
                    ``(B) to implement approved activities and 
                practices in a manner consistent with the 
                management plan for a period of not less than 
                10 years, unless the State forester approves a 
                modification to the plan.
            ``(2) Public benefit exception.--The Secretary may 
        increase the acreage limitation specified in paragraph 
        (1)(A)(i) to not more than 5,000 acres for an owner of 
        nonindustrial private forest lands if the Secretary, in 
        consultation with the State forester, determines that 
        significant public benefits will accrue as a result of 
        the provision of cost-share assistance under the 
        program for the treatment of the additional acreage.
            ``(3) Plan development exception.--An owner may 
        receive cost-share assistance under the program for the 
        purpose of developing a management plan under 
        subsection (e) that provides for the treatment of 
        acreage in excess of the acreage limitations specified 
        in paragraphs (1)(A)(i) and (2), except that the 
        owner's eligibility for cost-share assistance to 
        implement approved activities and practices under the 
        management plan remains subject to the acreage 
        limitation specified in paragraph (1)(A)(i) or, if the 
        Secretary makes the determination described in 
        paragraph (2), the acreage limitation specified in that 
        paragraph.
    ``(e) Management Plan.--
            ``(1) Submission and content.--An owner of 
        nonindustrial private forest lands that seeks to 
        participate in the program shall submit to the State 
        forester of the State in which the lands are located a 
        management plan that--
                    ``(A) identifies and describes projects and 
                activities to be carried out by the owner to 
                protect or enhance soil, water, air, range and 
                aesthetic quality, recreation, timber, water, 
                wetland, or fish and wildlife resources on the 
                lands in a manner that is compatible with the 
                objectives of the owner;
                    ``(B) addresses any criteria established by 
                the State and the applicable Committee; and
                    ``(C) meets the other requirements of this 
                section.
            ``(2) Lands covered.--At a minimum, the management 
        plan shall apply to those portions of the nonindustrial 
        private forest lands of the owner on which any project 
        or activity funded under the program will be carried 
        out. In a case in which a project or activity may 
        affect acreage outside the portion of the land on which 
        the project or activity is carried out, the management 
        plan shall apply to all lands of the owner that are in 
        forest cover and may be affected by the project or 
        activity.
    ``(f) Approved Activities.--
            ``(1) State list.--The Secretary shall develop for 
        each State a list of approved forest activities and 
        practices eligible for cost-share assistance that meets 
        the purposes of the program. The Secretary shall 
        develop the list for a State in consultation with the 
        State forester and the Committee for that State.
            ``(2) Types of activities.--Approved activities and 
        practices under paragraph (1) may consist of activities 
        and practices for the following purposes:
                    ``(A) The establishment, management, 
                maintenance, and restoration of forests for 
                shelterbelts, windbreaks, aesthetic quality, 
                and other conservation purposes.
                    ``(B) The sustainable growth and management 
                of forests for timber production.
                    ``(C) The restoration, use, and enhancement 
                of forest wetland and riparian areas.
                    ``(D) The protection of water quality and 
                watersheds through--
                            ``(i) the planting of trees in 
                        riparian areas; and
                            ``(ii) the enhanced management and 
                        maintenance of native vegetation on 
                        land vital to water quality.
                    ``(E) The management, maintenance, 
                restoration, or development of habitat for 
                plants, fish, and wildlife.
                    ``(F) The control, detection, monitoring, 
                and prevention of the spread of invasive 
                species and pests on nonindustrial private 
                forest lands.
                    ``(G) The restoration of nonindustrial 
                private forest land affected by invasive 
                species and pests.
                    ``(H) The conduct of other management 
                activities, such as the reduction of hazardous 
                fuels, that reduce the risks to forests posed 
                by, and that restore, recover, and mitigate the 
                damage to forests caused by, fire or any other 
                catastrophic event, as determined by the 
                Secretary.
                    ``(I) The development of management plans;
                    ``(J) The conduct of energy conservation 
                and carbon sequestration activities.
                    ``(K) The conduct of other activities 
                approved by the Secretary, in consultation with 
                the State forester and the appropriate 
                Committees.
    ``(g) Reimbursement of Eligible Activities.--
            ``(1) In general.--In the case of an eligible owner 
        that has an approved management plan, the Secretary 
        shall share the cost of implementing the approved 
        activities and practices that the Secretary determines 
        are appropriate.
            ``(2) Rate.--The Secretary shall determine the 
        appropriate reimbursement rate for cost-share payments 
        under paragraph (1) and the schedule for making those 
        payments.
            ``(3) Maximum cost share.--The Secretary shall not 
        make cost-share payments under this subsection to an 
        owner in an amount in excess of 75 percent, or a lower 
        percentage as determined by the State forester, of the 
        total cost to the owner to implement the approved 
        activities and practices under the management plan.
            ``(4) Aggregate payment limit.--The Secretary shall 
        determine the maximum aggregate amount of cost-share 
        payments that an owner may receive under the program.
            ``(5) Consultation.--The Secretary shall make 
        determinations under this subsection in consultation 
        with the State forester.
    ``(h) Recapture.--
            ``(1) In general.--The Secretary shall establish 
        and implement a mechanism to recapture payments made to 
        an owner in the event that the owner fails to implement 
        an approved activity or practice specified in the 
        management plan for which the owner received cost-share 
        payments.
            ``(2) Additional remedy.--The remedy provided in 
        paragraph (1) is in addition to any other remedy 
        available to the Secretary.
    ``(i) Distribution of Cost-Share Funds.--The Secretary, 
acting through the State foresters, shall distribute funds 
available for cost sharing under the program only after giving 
appropriate consideration to the following factors:
            ``(1) The public benefits that would result from 
        the distribution.
            ``(2) The total acreage of nonindustrial private 
        forest lands in each State.
            ``(3) The potential productivity of those lands, as 
        determined by the Secretary.
            ``(4) The number of owners eligible for cost 
        sharing in each State.
            ``(5) The opportunities to enhance nontimber 
        resources on those lands, including--
                    ``(A) the protection of riparian buffers 
                and forest wetland;
                    ``(B) the preservation of fish and wildlife 
                habitat;
                    ``(C) the enhancement of soil, air, and 
                water quality; and
                    ``(D) the preservation of aesthetic quality 
                and opportunities for outdoor recreation.
            ``(6) The anticipated demand for timber and 
        nontimber resources in each State.
            ``(7) The need to improve forest health to minimize 
        the damaging effects of catastrophic fire, insects, 
        disease, or weather.
            ``(8) The need and demand for agroforestry 
        practices in each State.
            ``(9) The need to maintain and enhance the forest 
        landbase.
            ``(10) The need for afforestation, reforestation, 
        and timber stand improvement.
    ``(j) Availability of Funds.--The Secretary shall use 
$100,000,000 of funds of the Commodity Credit Corporation to 
carry out the Program during the period beginning on the date 
of enactment of the Farm Security and Rural Investment Act of 
2002 and ending on September 30, 2007.
    ``(k) Definitions.--In this section:
            ``(1) Nonindustrial private forest lands.--The term 
        `nonindustrial private forest lands' means rural lands, 
        as determined by the Secretary, that--
                    ``(A) have existing tree cover or are 
                suitable for growing trees; and
                    ``(B) are owned by any nonindustrial 
                private individual, group, association, 
                corporation, Indian tribe, or other private 
                legal entity so long as the individual, group, 
                association, corporation, tribe, or entity has 
                definitive decision-making authority over the 
                lands.
            ``(2) Committee.--The terms `State Forest 
        Stewardship Coordinating Committee' and `Committee' 
        means a State Forest Stewardship Coordinating Committee 
        established under section 19(b).
            ``(3) Indian tribe.--The term `Indian tribe' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            ``(4) Owner.--The term `owner' means an owner of 
        nonindustrial private forest land.
            ``(5) Program.--The term `program' means the forest 
        land enhancement program established by this section.
            ``(6) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.
            ``(7) State forester.--The term `State forester' 
        means the director or other head of a State Forestry 
        Agency or equivalent State official.''.
    (c) Conforming Amendment.--Section 246(b)(2) of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6962(b)(2)) is amended by striking ``forestry incentive 
program'' and inserting ``forest land enhancement program''.

SEC. 8003. ENHANCED COMMUNITY FIRE PROTECTION.

    (a) Findings.--Congress finds the following:
            (1) The severity and intensity of wildland fires 
        has increased dramatically over the past few decades as 
        a result of past fire and land management policies.
            (2) The record 2000 fire season is a prime example 
        of what can be expected if action is not taken.
            (3) Wildland fires threaten not only the forested 
        resources of the United States, but also the thousands 
        of communities intermingled with the wildlands in the 
        wildland-urban interface.
            (4) The National Fire Plan, if implemented to 
        achieve appropriate priorities, is the proper, 
        coordinated, and most effective means to address the 
        issue of wildfires.
            (5) While adequate authorities exist to tackle the 
        wildfire issues at the landscape level on Federal 
        lands, there is limited authority to take action on 
        most private lands, and the largest threat to life and 
        property exists on private lands.
            (6) There is a significant Federal interest in 
        enhancing community protection from wildfire.
    (b) Enhanced Protection.--The Cooperative Forestry 
Assistance Act of 1978 is amended by inserting after section 10 
(16 U.S.C. 2106) the following:

``SEC. 10A. ENHANCED COMMUNITY FIRE PROTECTION.

    ``(a) Cooperative Management Related to Wildfire Threats.--
The Secretary may cooperate with State foresters and equivalent 
State officials in the management of lands in the United States 
for the following purposes:
            ``(1) Aid in wildfire prevention and control.
            ``(2) Protect communities from wildfire threats.
            ``(3) Enhance the growth and maintenance of trees 
        and forests that promote overall forest health.
            ``(4) Ensure the continued production of all forest 
        resources, including timber, outdoor recreation 
        opportunities, wildlife habitat, and clean water, 
        through conservation of forest cover on watersheds, 
        shelterbelts, and windbreaks.
    ``(b) Community and Private Land Fire Assistance Program.--
            ``(1) Establishment; purpose.--The Secretary shall 
        establish a Community and Private Land Fire Assistance 
        program (in this subsection referred to as the 
        `Program')--
                    ``(A) to focus the Federal role in 
                promoting optimal firefighting efficiency at 
                the Federal, State, and local levels;
                    ``(B) to augment Federal projects that 
                establish landscape level protection from 
                wildfires;
                    ``(C) to expand outreach and education 
                programs to homeowners and communities about 
                fire prevention; and
                    ``(D) to establish space around homes and 
                property of private landowners that is 
                defensible against wildfires.
            ``(2) Administration and implementation.--The 
        Program shall be administered by the Forest Service and 
        implemented through State foresters or equivalent State 
        officials.
            ``(3) Components.--In coordination with existing 
        authorities under this Act, the Secretary, in 
        consultation with the State forester or equivalent 
        State official, may undertake on non-Federal lands--
                    ``(A) fuel hazard mitigation and 
                prevention;
                    ``(B) invasive species management;
                    ``(C) multiresource wildfire planning;
                    ``(D) community protection planning;
                    ``(E) community and landowner education 
                enterprises, including the program known as 
                FIREWISE;
                    ``(F) market development and expansion;
                    ``(G) improved wood utilization; and
                    ``(H) special restoration projects.
            ``(4) Consent required.--Program activities 
        undertaken by the Secretary on non-Federal lands shall 
        be undertaken only with the consent of the owner of the 
        lands.
            ``(5) Considerations.--The Secretary shall use 
        persons in the local community wherever possible to 
        carry out projects under the Program.
    ``(c) Consultation.--In carrying out this section, the 
Secretary shall consult with the Administrator of the United 
States Fire Administration, the Director of the National 
Institute of Standards and Technology, and the heads of other 
Federal agencies, as necessary.
    ``(d) Authorization of Appropriations.--There are hereby 
authorized to be appropriated to the Secretary to carry out 
this section--
            (1) $35,000,000 for each of fiscal years 2002 
        through 2007; and
            (2) such sums as are necessary for fiscal years 
        thereafter.''.

                  Subtitle B--Amendments to Other Laws

SEC. 8101. SUSTAINABLE FORESTRY OUTREACH INITIATIVE; RENEWABLE 
                    RESOURCES EXTENSION ACTIVITIES.

    (a) Sustainable Forestry Outreach Initiative.--The 
Renewable Resources Extension Act of 1978 is amended by 
inserting after section 5A (16 U.S.C. 1674a) the following:

``SEC. 5B. SUSTAINABLE FORESTRY OUTREACH INITIATIVE.

    ``The Secretary shall establish a program, to be known as 
the `Sustainable Forestry Outreach Initiative', to educate 
landowners concerning the following:
            ``(1) The value and benefits of practicing 
        sustainable forestry.
            ``(2) The importance of professional forestry 
        advice in achieving sustainable forestry objectives.
            ``(3) The variety of public and private sector 
        resources available to assist the landowners in 
        planning for and practicing sustainable forestry.''.
    (b) Renewable Resources Extension Activities.--
            (1) Authorization of appropriations.--Section 6 of 
        the Renewable Resources Extension Act of 1978 (16 
        U.S.C. 1675) is amended by striking the first sentence 
        and inserting the following: ``There is authorized to 
        be appropriated to carry out this Act $30,000,000 for 
        each of fiscal years 2002 through 2007.''.
            (2) Termination date.--Section 8 of the Renewable 
        Resources Extension Act of 1978 (16 U.S.C. 1671 note; 
        Public Law 95-306) is amended by striking ``2000'' and 
        inserting ``2007''.

SEC. 8102. OFFICE OF INTERNATIONAL FORESTRY.

    Section 2405(d) of the Global Climate Change Prevention Act 
of 1990 (7 U.S.C. 6704(d)) is amended by striking ``2002'' and 
inserting ``2007''.

                  Subtitle C--Miscellaneous Provisions

SEC. 8201. MCINTIRE-STENNIS COOPERATIVE FORESTRY RESEARCH PROGRAM.

    It is the sense of Congress to reaffirm the importance of 
Public Law 87-788 (16 U.S.C. 582a et seq.), commonly known as 
the ``McIntire-Stennis Cooperative Forestry Act''.

                            TITLE IX--ENERGY

SEC. 9001. DEFINITIONS.

    In this title:
            (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.
            (2) Biobased product.--The term ``biobased 
        product'' means a product determined by the Secretary 
        to be a commercial or industrial product (other than 
        food or feed) that is composed, in whole or in 
        significant part, of biological products or renewable 
        domestic agricultural materials (including plant, 
        animal, and marine materials) or forestry materials.
            (3) Biomass.--
                    (A) In general.--The term ``biomass'' means 
                any organic material that is available on a 
                renewable or recurring basis.
                    (B) Inclusions.--The term ``biomass'' 
                includes--
                            (i) agricultural crops;
                            (ii) trees grown for energy 
                        production;
                            (iii) wood waste and wood residues;
                            (iv) plants (including aquatic 
                        plants and grasses);
                            (v) residues;
                            (vi) fibers;
                            (vii) animal wastes and other waste 
                        materials; and
                            (viii) fats, oils, and greases 
                        (including recycled fats, oils, and 
                        greases).
                    (C) Exclusions.--The term ``biomass'' does 
                not include--
                            (i) paper that is commonly 
                        recycled; or
                            (ii) unsegregated solid waste.
            (4) Renewable energy.--The term ``renewable 
        energy'' means energy derived from--
                    (A) a wind, solar, biomass, or geothermal 
                source; or
                    (B) hydrogen derived from biomass or water 
                using an energy source described in 
                subparagraph (A).
            (5) Rural small business.--The term ``rural small 
        business'' has the meaning that the Secretary shall 
        prescribe by regulation.
            (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.

SEC. 9002. FEDERAL PROCUREMENT OF BIOBASED PRODUCTS.

    (a) Application of Section.--Except as provided in 
subsection (c), each Federal agency shall comply with the 
requirements set forth in this section and any regulations 
issued under this section, with respect to any purchase or 
acquisition of a procurement item where the purchase price of 
the item exceeds $10,000 or where the quantity of such items or 
of functionally equivalent items purchased or acquired in the 
course of the preceding fiscal year was $10,000 or more.
    (b) Procurement Subject to Other Law.--Any procurement, by 
any Federal agency, which is subject to regulations of the 
Administrator under section 6002 of the Solid Waste Disposal 
Act (42 U.S.C. 6962), shall not be subject to the requirements 
of this section to the extent that such requirements are 
inconsistent with such regulations.
    (c) Procurement Preference.--(1) Except as provided in 
paragraph (2), after the date specified in applicable 
guidelines prepared pursuant to subsection (e) of this section, 
each Federal agency which procures any items designated in such 
guidelines shall, in making procurement decisions, give 
preference to such items composed of the highest percentage of 
biobased products practicable, consistent with maintaining a 
satisfactory level of competition, considering such guidelines.
    (2) Agency flexibility.--Notwithstanding paragraph (1), an 
agency may decide not to procure such items if the agency 
determines that the items--
            (A) are not reasonably available within a 
        reasonable period of time;
            (B) fail to meet the performance standards set 
        forth in the applicable specifications or fail to meet 
        the reasonable performance standards of the procuring 
        agencies; or
            (C) are available only at an unreasonable price.
    (3) After the date specified in any applicable guidelines 
prepared pursuant to subsection (e) of this section, 
contracting offices shall require that, with respect to 
biobased products, vendors certify that the biobased products 
to be used in the performance of the contract will comply with 
the applicable specifications or other contractual 
requirements.
    (d) Specifications.--All Federal agencies that have the 
responsibility for drafting or reviewing specifications for 
procurement items procured by Federal agencies shall, within 
one year after the date of publication of applicable guidelines 
under subsection (e), or as otherwise specified in such 
guidelines, assure that such specifications require the use of 
biobased products consistent with the requirements of this 
section.
    (e) Guidelines.--
            (1) In general.--The Secretary, after consultation 
        with the Administrator, the Administrator of General 
        Services, and the Secretary of Commerce (acting through 
        the Director of the National Institute of Standards and 
        Technology), shall prepare, and from time to time 
        revise, guidelines for the use of procuring agencies in 
        complying with the requirements of this section. Such 
        guidelines shall--
                    (A) designate those items which are or can 
                be produced with biobased products and whose 
                procurement by procuring agencies will carry 
                out the objectives of this section;
                    (B) set forth recommended practices with 
                respect to the procurement of biobased products 
                and items containing such materials and with 
                respect to certification by vendors of the 
                percentage of biobased products used; and
                    (C) provide information as to the 
                availability, relative price, performance, and 
                environmental and public health benefits, of 
                such materials and items and where appropriate 
                shall recommend the level of biobased material 
                to be contained in the procured product.
            (2) Considerations.--In making the designation 
        under paragraph (1)(A), the Secretary shall, at a 
        minimum, consider--
                    (A) the availability of such items; and
                    (B) the economic and technological 
                feasibility of using such items, including life 
                cycle costs.
            (3) Final guidelines.--The Secretary shall prepare 
        final guidelines under this section within 180 days 
        after the date of enactment of this Act.
    (f) Office of Federal Procurement Policy.--The Office of 
Federal Procurement Policy, in cooperation with the Secretary, 
shall implement the requirements of this section. It shall be 
the responsibility of the Office of Federal Procurement Policy 
to coordinate this policy with other policies for Federal 
procurement to implement the requirements of this section, and, 
every two years beginning in 2003, to report to the Congress on 
actions taken by Federal agencies and the progress made in the 
implementation of this section, including agency compliance 
with subsection (d).
    (g) Procurement Program.--(1) Within one year after the 
date of publication of applicable guidelines under subsection 
(e), each Federal agency shall develop a procurement program 
which will assure that items composed of biobased products will 
be purchased to the maximum extent practicable and which is 
consistent with applicable provisions of Federal procurement 
law.
    (2) Each procurement program required under this subsection 
shall, at a minimum, contain--
            (A) a biobased products preference program;
            (B) an agency promotion program to promote the 
        preference program adopted under subparagraph (A); and
            (C) annual review and monitoring of the 
        effectiveness of an agency's procurement program.
    (3) In developing the preference program, the following 
options shall be considered for adoption:
            (A) Case-by-case policy development.--Subject to 
        the limitations of subsection (c)(2) (A) through (C), a 
        policy of awarding contracts to the vendor offering an 
        item composed of the highest percentage of biobased 
        products practicable. Subject to such limitations, 
        agencies may make an award to a vendoroffering items 
with less than the maximum biobased products content.
            (B) Minimum content standards.--Minimum biobased 
        products content specifications which are set in such a 
        way as to assure that the biobased products content 
        required is consistent with the requirements of this 
        section, without violating the limitations of 
        subsection (c)(2) (A) through (C).

Federal agencies shall adopt one of the options set forth in 
subparagraphs (A) and (B) or a substantially equivalent 
alternative, for inclusion in the procurement program.
    (h) Labeling.--
            (1) In general.--The Secretary, in consultation 
        with the Administrator, shall establish a voluntary 
        program under which the Secretary authorizes producers 
        of biobased products to use the label ``U.S.D.A. 
        Certified Biobased Product''.
            (2) Eligibility criteria.--Within one year after 
        the date of enactment of this Act, the Secretary, in 
        consultation with the Administrator, shall issue 
        criteria for determining which products may qualify to 
        receive the label under paragraph (1). The criteria 
        shall encourage the purchase of products with the 
        maximum biobased content, and should, to the maximum 
        extent possible, be consistent with the guidelines 
        issued under subsection (e).
            (3) Use of the label.--The Secretary shall ensure 
        that the label referred to in paragraph (1) is used 
        only on products that meet the criteria issued pursuant 
        to paragraph (2).
            (4) Recognition.--The Secretary shall establish a 
        voluntary program to recognize Federal agencies and 
        private entities that use a substantial amount of 
        biobased products.
    (i) Limitation.--Nothing in this section shall apply to the 
procurement of motor vehicle fuels or electricity.
    (j) Funding.--
            (1) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as may be 
        necessary to carry out this section.
            (2) Funding for testing of biobased products.--
                    (A) In general.--Of the funds of the 
                Commodity Credit Corporation, the Secretary 
                shall use $1,000,000 for each of fiscal years 
                2002 through 2007 to support testing of 
                biobased products to carry out this section.
                    (B) Use of funds.--Amounts made available 
                under subparagraph (A) may be used to support 
                contracts or cooperative agreements with 
                entities that have experience and special 
                skills to conduct such testing.
                    (C) Priority.--At the discretion of the 
                Secretary, the Secretary may give priority to 
                the testing of products for which private 
                sector firms provide cost sharing for the 
                testing.

SEC. 9003. BIOREFINERY DEVELOPMENT GRANTS.

    (a) Purpose.--The purpose of this section is to assist in 
the development of new and emerging technologies for the use of 
biomass, including lignocellulosic biomass, so as to--
            (1) develop transportation and other fuels, 
        chemicals, and energy from renewable sources;
            (2) increase the energy independence of the United 
        States;
            (3) provide beneficial effects on conservation, 
        public health, and the environment;
            (4) diversify markets for raw agricultural and 
        forestry products; and
            (5) create jobs and enhance the economic 
        development of the rural economy.
    (b) Definitions.--In this section:
            (1) Advisory committee.--The term ``Advisory 
        Committee'' means the Biomass Research and Development 
        Technical Advisory Committee established by section 306 
        of the Biomass Research and Development Act of 2000 (7 
        U.S.C. 7624 note; Public Law 106-224).
            (2) Biorefinery.--The term ``biorefinery'' means 
        equipment and processes that--
                    (A) convert biomass into fuels and 
                chemicals; and
                    (B) may produce electricity.
            (3) Board.--The term ``Board'' means the Biomass 
        Research and Development Board established by section 
        305 of the Biomass Research and Development Act of 2000 
        (7 U.S.C. 7624 note; Public Law 106-224).
            (4) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
    (c) Grants.--The Secretary shall award grants to eligible 
entities to assist in paying the cost of development and 
construction of biorefineries to carry out projects to 
demonstrate the commercial viability of 1 or more processes for 
converting biomass to fuels or chemicals.
    (d) Eligible Entities.--An individual, corporation, farm 
cooperative, association of farmers, national laboratory, 
institution of higher education (as defined in section 101 of 
the Higher Education Act of 1965 (20 U.S.C. 1001)), State or 
local energy agency or office, Indian tribe, or consortium 
comprised of any of those entities shall be eligible to receive 
a grant under subsection (c).
    (e) Competitive Basis for Awards.--
            (1) In general.--The Secretary shall award grants 
        under subsection (c) on a competitive basis after 
        consulting the Board and Advisory Committee.
            (2) Selection criteria.--
                    (A) In general.--In selecting projects to 
                receive grants under subsection (c), the 
                Secretary--
                            (i) shall select projects based on 
                        the likelihood that the projects will 
                        demonstrate the commercial viability of 
                        a new and emerging process for 
                        converting biomass into fuels, 
                        chemicals, or energy; and
                            (ii) may consider the likelihood 
                        that the projects will produce 
                        electricity.
                    (B) Factors.--The factors to be considered 
                under subparagraph (A) may include--
                            (i) the potential market for the 
                        product or products;
                            (ii) the level of financial 
                        participation by the applicants;
                            (iii) the availability of adequate 
                        funding from other sources;
                            (iv) the beneficial impact on 
                        resource conservation, public health, 
                        and the environment;
                            (v) the participation of producer 
                        associations and cooperatives;
                            (vi) the timeframe in which the 
                        project will be operational;
                            (vii) the potential for rural 
                        economic development;
                            (viii) the participation of 
                        multiple eligible entities; and
                            (ix) the potential for developing 
                        advanced industrial biotechnology 
                        approaches.
    (f) Cost Sharing.--
            (1) In general.--The amount of a grant for a 
        project awarded under subsection (c) shall not exceed 
        30 percent of the cost of the project.
            (2) Form of grantee share.--
                    (A) In general.--The grantee share of the 
                cost of a project may be made in the form of 
                cash or the provision of services, material, or 
                other in-kind contributions.
                    (B) Limitation.--The amount of the grantee 
                share of the cost of a project that is made in 
                the form of the provision of services, 
                material, or other in-kind contributions shall 
                not exceed 25 percent of the amount of the 
                grantee share determined under paragraph (1).
    (g) Consultation.--In carrying out this section, the 
Secretary shall consult with the Secretary of Energy.
    (h) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2002 through 2007.

SEC. 9004. BIODIESEL FUEL EDUCATION PROGRAM.

    (a) Establishment.--The Secretary shall, under such terms 
and conditions as are appropriate, make competitive grants to 
eligible entities to educate governmental and private entities 
that operate vehicle fleets, other interested entities (as 
determined by the Secretary), and the public about the benefits 
of biodiesel fuel use.
    (b) Eligible Entities.--To receive a grant under subsection 
(a), an entity--
            (1) shall be a nonprofit organization or 
        institution of higher education (as defined in section 
        101 of the Higher Education Act of 1965 (20 U.S.C. 
        1001));
            (2) shall have demonstrated knowledge of biodiesel 
        fuel production, use, or distribution; and
            (3) shall have demonstrated the ability to conduct 
        educational and technical support programs.
    (c) Consultation.--In carrying out this section, the 
Secretary shall consult with the Secretary of Energy.
    (d) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out 
this section $1,000,000 for each of fiscal years 2003 through 
2007.

SEC. 9005. ENERGY AUDIT AND RENEWABLE ENERGY DEVELOPMENT PROGRAM.

    (a) In General.--The Secretary shall make competitive 
grants to eligible entities to carry out a program to assist 
farmers, ranchers, and rural small businesses in becoming more 
energy efficient and in using renewable energy technology and 
resources.
    (b) Eligible Entities.--Entities eligible to carry out a 
program under subsection (a) are--
            (1) a State energy or agricultural office;
            (2) a regional or State-based energy organization 
        or energy organization of an Indian tribe (as defined 
        in section 4 of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b));
            (3) a land-grant college or university (as defined 
        in section 1404 of the National Agricultural Research, 
        Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
        3103)) or other institution of higher education (as 
        defined in section 101 of the Higher Education Act of 
        1965 (20 U.S.C. 1001));
            (4) a rural electric cooperative or utility;
            (5) a nonprofit organization; and
            (6) any other entity, as determined by the 
        Secretary.
    (c) Merit Review.--
            (1) Merit review process.--The Secretary shall 
        establish a merit review process to review applications 
        for grants under subsection (a) that uses the expertise 
        of other Federal agencies, industry, and 
        nongovernmental organizations.
            (2) Selection criteria.--In reviewing applications 
        of eligible entities to receive grants under subsection 
        (a), the Secretary shall consider--
                    (A) the ability and expertise of the 
                eligible entity in providing professional 
                energy audits and renewable energy assessments;
                    (B) the geographic scope of the program 
                proposed by the eligible entity;
                    (C) the number of farmers, ranchers, and 
                rural small businesses to be assisted by the 
                program;
                    (D) the potential for energy savings and 
                environmental and public health benefits 
                resulting from the program; and
                    (E) the plan of the eligible entity for 
                educating farmers, ranchers, and rural small 
                businesses on the benefits of energy efficiency 
                and renewable energy development.
    (d) Use of Grant Funds.--
            (1) Required uses.--A recipient of a grant under 
        subsection (a) shall use the grant funds to conduct and 
        promote energy audits for farmers, ranchers, and rural 
        small businesses to provide farmers, ranchers, and 
        rural small businesses recommendations on how to 
        improve energy efficiency and use renewable energy 
        technology and resources.
            (2) Permitted uses.--In addition to the uses 
        described in paragraph (1), a recipient of a grant may 
        use the grant funds to make farmers, ranchers, and 
        rural small businesses aware of, and ensure that they 
        have access to--
                    (A) financial assistance under section 
                9006; and
                    (B) other Federal, State, and local 
                financial assistance programs for which 
                farmers, ranchers, and rural small businesses 
                may be eligible.
    (e) Cost Sharing.--A recipient of a grant under subsection 
(a) that conducts an energy audit for a farmer, rancher, or 
rural small business under subsection (d)(1) shall require 
that, as a condition of the energy audit, the farmer, rancher, 
or rural small business pay at least 25 percent of the cost of 
the audit.
    (f) Use of Cost-Share Funds.--Funds collected by a 
recipient of a grant under subsection (e) as a result of 
activities carried out using the grant funds shall be used to 
conduct activities authorized under this section, as approved 
by the Secretary.
    (g) Consultation.--In carrying out this section, the 
Secretary shall consult with the Secretary of Energy.
    (h) Reports.--Not later than 4 years after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report on the implementation of this section.
    (i) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2002 through 2007.

SEC. 9006. RENEWABLE ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS.

    (a) In General.--In addition to exercising authority to 
make loans and loan guarantees under other law, the Secretary 
shall make loans, loan guarantees, and grants to farmers, 
ranchers, and rural small businesses to--
            (1) purchase renewable energy systems; and
            (2) make energy efficiency improvements.
    (b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a farmer, rancher, or rural small business 
shall demonstrate financial need as determined by the 
Secretary.
    (c) Cost Sharing.--
            (1) In general.--
                    (A) Grants.--The amount of a grant shall 
                not exceed 25 percent of the cost of the 
                activity funded under subsection (a).
                    (B) Maximum amount of combined grant and 
                loan.--The combined amount of a grant and loan 
                made or guaranteed shall not exceed 50 percent 
                of the cost of the activity funded under 
                subsection (a).
            (2) Factors.--In determining the amount of a grant 
        or loan, the Secretary shall take into consideration, 
        as applicable--
                    (A) the type of renewable energy system to 
                be purchased;
                    (B) the estimated quantity of energy to be 
                generated by the renewable energy system;
                    (C) the expected environmental benefits of 
                the renewable energy system;
                    (D) the extent to which the renewable 
                energy system will be replicable;
                    (E) the amount of energy savings expected 
                to be derived from the activity, as 
                demonstrated by an energy audit comparable to 
                an energy audit under section 9005;
                    (F) the estimated length of time it would 
                take for the energy savings generated by the 
                activity to equal the cost of the activity; and
                    (G) other factors as appropriate.
    (d) Interest Rate.--
            (1) In general.--A loan made by the Secretary under 
        subsection (a) shall bear interest at the rate 
        equivalent to the rate of interest charged on Treasury 
        securities of comparable maturity on the date the loan 
        is approved.
            (2) Duration.--The interest rate for each loan will 
        remain in effect for the term of the loan.
    (e) Consultation.--In carrying out this section, the 
Secretary shall consult with the Secretary of Energy.
    (f) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out 
this section $23,000,000 for each of fiscal years 2003 through 
2007.

SEC. 9007. HYDROGEN AND FUEL CELL TECHNOLOGIES.

    (a) In General.--The Secretary and the Secretary of Energy 
shall enter into a memorandum of understanding under which the 
Secretary and the Secretary of Energy shall cooperate in the 
application of hydrogen and fuel cell technology programs for 
rural communities and agricultural producers.
    (b) Dissemination of Information.--Under the memorandum of 
understanding, the Secretary shall work with the Secretary of 
Energy to disseminate information to rural communities and 
agricultural producers on potential applications of hydrogen 
and fuel cell technologies.

SEC. 9008. BIOMASS RESEARCH AND DEVELOPMENT.

    (a) Funding.--The Biomass Research and Development Act of 
2000 (7 U.S.C. 7624 note; Public Law 106-224) is amended--
            (1) in section 307, by striking subsection (f);
            (2) by redesignating section 310 as section 311; 
        and
            (3) by inserting after section 309 the following:

``SEC. 310. FUNDING.

    ``(a) Funding.--Of funds of the Commodity Credit 
Corporation, the Secretary shall make available to carry out 
this title--
            ``(1) $5,000,000 for fiscal year 2002; and
            ``(2) $14,000,000 for each of fiscal years 2003 
        through 2007;

to remain available until expended.
    ``(b) Authorization of Appropriations.--In addition to 
amounts transferred under subsection (a), there are authorized 
to be appropriated to carry out this title $49,000,000 for each 
of fiscal years 2002 through 2007.''.
    (b) Termination of Authority.--Section 311 of the Biomass 
Research and Development Act of 2000 (7 U.S.C. 7624 note; 
Public Law 106-224) (as redesignated by subsection (a)) is 
amended by striking ``December 31, 2005'' and inserting 
``September 30, 2007''.

SEC. 9009. COOPERATIVE RESEARCH AND EXTENSION PROJECTS.

    Section 221 of the Agricultural Risk Protection Act of 2000 
(114 Stat. 407) is amended--
            (1) by redesignating subsection (d) as subsection 
        (f); and
            (2) by inserting after subsection (c) the 
        following:
    ``(d) Cooperative Research.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the Secretary, in cooperation with 
        departments and agencies participating in the U.S. 
        Global Change Research Program (which may use any of 
        their statutory authorities) and with eligible 
        entities, may carry out research to promote 
        understanding of--
                    ``(A) the flux of carbon in soils and 
                plants (including trees); and
                    ``(B) the exchange of other greenhouse 
                gases from agriculture.
            ``(2) Eligible entities.--Research under this 
        subsection may be carried out through the competitive 
        awarding of grants and cooperative agreements to 
        colleges and universities (as defined in section 1404 
        of the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 1303)).
            ``(3) Cooperative research purposes.--Research 
        conducted under this subsection shall encourage 
        collaboration among scientists with expertise in the 
        areas of soil science, agronomy, agricultural 
        economics, forestry, and other agricultural sciences to 
        focus on--
                    ``(A) developing data addressing carbon 
                losses and gains in soils and plants (including 
                trees) and the exchange of methane and nitrous 
                oxide from agriculture;
                    ``(B) understanding how agricultural and 
                forestry practices affect the sequestration of 
                carbon in soils and plants (including trees) 
                and the exchange of other greenhouse gases, 
                including the effects of new technologies such 
                as biotechnology and nanotechnology;
                    ``(C) developing cost-effective means of 
                measuring and monitoring changes in carbon 
                pools in soils and plants (including trees), 
                including computer models;
                    ``(D) evaluating the linkage between 
                federal conservation programs and carbon 
                sequestration;
                    ``(E) developing methods, including remote 
                sensing, to measure the exchange of carbon and 
                other greenhouse gases sequestered, and to 
                evaluate leakage, performance, and permanence 
                issues; and
                    ``(F) assessing the applicability of the 
                results of research conducted under this 
                subsection for developing methods to account 
                for the impact of agricultural activities 
                (including forestry) on the exchange of 
                greenhouse gases.
            ``(4) Authorization of appropriation.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this subsection for each of 
        fiscal years 2002 through 2007.
    ``(e) Extension Projects.--
            ``(1) In general.--The Secretary, in cooperation 
        with departments and agencies participating in the U.S. 
        Global Change Research Program (which may use any of 
        their statutory authorities), and local extension 
        agents, experts from institutions of higher education 
        that offer a curriculum in agricultural and biological 
        sciences, and other local agricultural or conservation 
        organizations, may implement extension projects 
        (including on-farm projects with direct involvement of 
        agricultural producers) that combine measurement tools 
        and modeling techniques into integrated packages to 
        monitor the carbon sequestering benefits of 
        conservation practices and the exchange of greenhouse 
        gas emissions from agriculture which demonstrate the 
        feasibility of methods of measuring and monitoring--
                    ``(A) changes in carbon content and other 
                carbon pools in soils and plants (including 
                trees); and
                    ``(B) the exchange of other greenhouse 
                gases.
            ``(2) Extension project results.--The Secretary may 
        disseminate to farmers, ranchers, private forest 
        landowners, and appropriate State agencies in each 
        State information concerning--
                    ``(A) the results of projects under this 
                subsection; and
                    ``(B) the manner in which the methods used 
                in the projects might be applicable to the 
                operations of the farmers, ranchers, private 
                forest landowners, and State agencies.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated such sums as are 
        necessary to carry out this subsection for each of 
        fiscal years 2002 through 2007.''.

SEC. 9010. CONTINUATION OF BIOENERGY PROGRAM.

    (a) Definitions.--In this section:
            (1) Bioenergy.--The term ``bioenergy'' means--
                    (A) biodiesel; and
                    (B) fuel grade ethanol.
            (2) Biodiesel.--The term ``biodiesel'' means a 
        monoalkyl ester that meets the requirements of an 
        appropriate American Society for Testing and Materials 
        standard.
            (3) Eligible commodity.--The term ``eligible 
        commodity'' means--
                    (A) wheat, corn, grain sorghum, barley, 
                oats, rice, soybeans, sunflower seed, rapeseed, 
                canola, safflower, flaxseed, mustard, crambe, 
                sesame seed, and cottonseed;
                    (B) a cellulosic commodity (such as hybrid 
                poplar and switch grass);
                    (C) fats, oils, and greases (including 
                recycled fats, oils, and greases) derived from 
                an agricultural product; and
                    (D) any animal byproduct (in addition to 
                oils, fats, and greases) that may be used to 
                produce bioenergy, as determined by the 
                Secretary.
            (4) Eligible producer.--The term ``eligible 
        producer'' means a producer that uses an eligible 
        commodity to produce bioenergy.
    (b) Bioenergy Program.--
            (1) Continuation.--The Secretary shall continue the 
        program under part 1424 of title 7, Code of Federal 
        Regulations (or any successor regulation), under which 
        the Secretary makes payments to eligible producers to 
        encourage increased purchases of eligible commodities 
        for the purpose of expanding production of such 
        bioenergy and supporting new production capacity for 
        such bioenergy.
            (2) Contracts.--To be eligible to receive a 
        payment, an eligible producer shall--
                    (A) enter into a contract with the 
                Secretary to increase bioenergy production for 
                1 or more fiscal years; and
                    (B) submit to the Secretary such records as 
                the Secretary may require as evidence of 
                increased purchase and use of eligible 
                commodities for the production of bioenergy.
            (3) Payment.--
                    (A) In general.--Under the program, the 
                Secretary shall make payments to eligible 
                producers, based on the quantity of bioenergy 
                produced by the eligible producer during a 
                fiscal year that exceeds the quantity of 
                bioenergy produced by the eligible producer 
                during the preceding fiscal year.
                    (B) Payment rate.--
                            (i) Producers of less than 
                        65,000,000 gallons.--An eligible 
                        producer that produces less than 
                        65,000,000 gallons of bioenergy shall 
                        be reimbursed 1 feedstock unit for 
                        every 2.5 feedstock units of eligible 
                        commodity used for increased 
                        production.
                            (ii) Producers of 65,000,000 or 
                        more gallons.--An eligible producer 
                        that produces 65,000,000 or more 
                        gallons of bioenergy shall be 
                        reimbursed 1 feedstock unit for every 
                        3.5 feedstock units of eligible 
                        commodity used for increased 
                        production.
                    (C) Quarterly payments.--The Secretary 
                shall make payments to an eligible producer for 
                each quarter of the fiscal year.
            (4) Proration.--If the amount made available for a 
        fiscal year under subsection (c) is insufficient to 
        allow the payment of the amount of the payments that 
        eligible producers (that apply for the payments) 
        otherwise would receive under this subsection, the 
        Secretary shall prorate the amount of the funds among 
        all such eligible producers.
            (5) Overpayments.--If the total amount of payments 
        that an eligible producer receives for a fiscal year 
        under this section exceeds the amount that the eligible 
        producer should have received under this subsection, 
        the eligible producer shall repay the amount of the 
        overpayment to the Secretary, with interest (as 
        determined by the Secretary).
            (6) Limitation.--No eligible producer shall receive 
        more than 5 percent of the total amount made available 
        under subsection (c) for a fiscal year.
            (7) Other requirements.--To be eligible to receive 
        a payment under this subsection, an eligible producer 
        shall meet other requirements of Federal law (including 
        regulations) applicable to the production of bioenergy.
    (c) Funding.--Of the funds of the Commodity Credit 
Corporation, the Secretary shall use to carry out this 
section--
            (1) not more than $150,000,000 for each of fiscal 
        years 2003 through 2006; and
            (2) $0 for fiscal year 2007.

                         TITLE X--MISCELLANEOUS

                       Subtitle A--Crop Insurance

SEC. 10001. EQUAL CROP INSURANCE TREATMENT OF POTATOES AND SWEET 
                    POTATOES.

    Section 508(a)(2) of the Federal Crop Insurance Act (7 
U.S.C. 1508(a)(2)) is amended in the first sentence by striking 
``and potatoes'' and inserting ``, potatoes, and sweet 
potatoes''.

SEC. 10002. CONTINUOUS COVERAGE.

    Section 508(e)(4) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)(4)) is amended--
            (1) in the paragraph heading, by striking 
        ``Temporary prohibition'' and inserting 
        ``Prohibition''; and
            (2) by striking ``through 2005'' and inserting 
        ``and subsequent''.

SEC. 10003. QUALITY LOSS ADJUSTMENT PROCEDURES.

    Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 
1508(m)) is amended--
            (1) in paragraph (3)--
                    (A) by striking ``The Corporation'' and 
                inserting the following:
                    ``(A) Review.--The Corporation''; and
                    (B) by striking ``Based on'' and inserting 
                the following:
                    ``(B) Procedures.--Effective beginning not 
                later than the 2004 reinsurance year, based 
                on''; and
            (2) by adding at the end the following:
            ``(4) Quality of agricultural commodities delivered 
        to warehouse operators.--In administering this title, 
        the Secretary shall accept, in the same manner and 
        under the same terms and conditions, evidence of the 
        quality of agricultural commodities delivered to--
                    ``(A) warehouse operators that are licensed 
                under the United States Warehouse Act (7 U.S.C. 
                241 et seq.);
                    ``(B) warehouse operators that--
                            ``(i) are licensed under State law; 
                        and
                            ``(ii) have entered into a storage 
                        agreement with the Commodity Credit 
                        Corporation; and
                    ``(C) warehouse operators that--
                            ``(i) are not licensed under State 
                        law but are in compliance with State 
                        law regarding warehouses; and
                            ``(ii) have entered into a 
                        commodity storage agreement with the 
                        Commodity Credit Corporation.''.

SEC. 10004. ADJUSTED GROSS REVENUE INSURANCE PILOT PROGRAM.

    Section 523 of the Federal Crop Insurance Act (7 U.S.C. 
1523) is amended by adding at the end the following:
    ``(e) Adjusted Gross Revenue Insurance Pilot Program.--
            ``(1) In general.--The Corporation shall carry out, 
        through at least the 2004 reinsurance year, the 
        adjusted gross revenue insurance pilot program in 
        effect for the 2002 reinsurance year.
            ``(2) Additional counties.--
                    ``(A) In general.--In addition to counties 
                otherwise included in the pilot program, the 
                Corporation shall include in the pilot program 
                for the 2003 reinsurance year at least 8 
                counties in the State of California and at 
                least 8 counties in the State of Pennsylvania.
                    ``(B) Selection criteria.--In carrying out 
                subparagraph (A), the Corporation shall work 
                with the respective State Departments of 
                Agriculture to establish criteria to determine 
                which counties to include in the pilot 
                program.''.

SEC. 10005. SENSE OF CONGRESS ON EXPANSION OF CROP INSURANCE COVERAGE.

    It is the sense of Congress that the Federal Crop Insurance 
Corporation should address needs of producers through the 
expansion of pilot programs and coverage under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.), including--
            (1) crop revenue insurance for the producers of 
        pecans in the State of Georgia; and
            (2) coverage for continuous crops of wheat produced 
        in the State of Kansas.

SEC. 10006. REPORT ON SPECIALTY CROP INSURANCE.

    Not later than 180 days after the date of enactment of this 
Act, the Secretary of Agriculture shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report that describes--
            (1) the progress made by the Federal Crop Insurance 
        Corporation in research and development of innovative 
        risk management products to include cost of production 
        insurance that provides coverage for specialty crops, 
        paying special attention to apples, asparagus, 
        blueberries (wild and domestic), cabbage, canola, 
        carrots, cherries, Christmas trees, citrus fruits, 
        cucumbers, dry beans, eggplants, floriculture, grapes, 
        greenhouse and nursery agricultural commodities, green 
        peas, green peppers, hay, lettuce, maple, mushrooms, 
        pears, potatoes, pumpkins, snap beans, spinach, squash, 
        strawberries, sugar beets, and tomatoes; and
            (2) the progress made by the Corporation in 
        increasing the use of risk management products offered 
        through the Corporation by producers of specialty 
        crops, by small- and moderate-sized farms, and in areas 
        that are underserved, as determined by the Secretary.

                    Subtitle B--Disaster Assistance

SEC. 10101. REFERENCE TO SEA GRASS AND SEA OATS AS CROPS COVERED BY 
                    NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

    Section 196(a)(2)(B) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended by 
inserting ``sea grass and sea oats,'' after ``fish),''.

SEC. 10102. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND SEASONAL 
                    FARMWORKERS.

    Section 2281(a) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (42 U.S.C. 5177a(a)) is amended by striking 
``, not to exceed $20,000,000 annually,''.

SEC. 10103. EMERGENCY LOANS FOR SEED PRODUCERS.

    Section 253(b)(5)(B) of the Agricultural Risk Protection 
Act of 2000 (Public Law 106-224; 114 Stat. 423) is amended by 
striking ``18 months'' and inserting ``36 months''.

SEC. 10104. ASSISTANCE FOR LIVESTOCK PRODUCERS.

    (a) Availability of Assistance.--In such amounts as are 
provided in advance in appropriation Acts, the Secretary of 
Agriculture may provide assistance to dairy and other livestock 
producers to cover economic losses incurred by such producers 
in connection with the production of livestock.
    (b) Types of Assistance.--The assistance provided to 
livestock producers may be in the following forms:
            (1) Indemnity payments to livestock producers who 
        incur livestock mortality losses.
            (2) Livestock feed assistance to livestock 
        producers affected by shortages of feed.
            (3) Compensation for sudden increases in production 
        costs.
            (4) Such other assistance, and for such other 
        economic losses, as the Secretary considers 
        appropriate.
    (c) Limitations.--The Secretary may not use the funds of 
the Commodity Credit Corporation to provide assistance under 
this section.
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to the Secretary such sums as may be 
necessary to carry out this section.

SEC. 10105. MARKET LOSS ASSISTANCE FOR APPLE PRODUCERS.

    (a) In General.--Of the funds of the Commodity Credit 
Corporation, the Secretary of Agriculture shall use $94,000,000 
for fiscal year 2002 to make payments, as soon as practicable 
after the date of enactment of this Act, to apple producers for 
the loss of markets during the 2000 crop year.
    (b) Payment Quantity.--The payment quantity of apples for 
which the producers on a farm are eligible for payments under 
this section shall be equal to the lesser of--
            (1) the quantity of the 2000 crop of apples 
        produced by the producers on the farm; or
            (2) 5,000,000 pounds of apples produced on the 
        farm.
    (c) Limitations.--Subject to subsection (b)(2), the 
Secretary shall not establish a payment limitation, or income 
eligibility limitation, with respect to payments made under 
this section.
    (d) Regulations.--
            (1) In general.--The Secretary shall promulgate 
        such regulations as are necessary to implement this 
        section.
            (2) Procedure.--The promulgation of the regulations 
        and administration of this section shall be made 
        without regard to--
                    (A) the notice and comment provisions of 
                section 553 of title 5, United States Code;
                    (B) the Statement of Policy of the 
                Secretary of Agriculture effective July 24, 
                1971 (36 Fed. Reg. 13804), relating to notices 
                of proposed rulemaking and public participation 
                in rulemaking; and
                    (C) chapter 35 of title 44, United States 
                Code (commonly known as the ``Paperwork 
                Reduction Act'').
            (3) Congressional review of agency rulemaking.--In 
        carrying out this subsection, the Secretary shall use 
        the authority provided under section 808 of title 5, 
        United States Code.

SEC. 10106. MARKET LOSS ASSISTANCE FOR ONION PRODUCERS.

    The Secretary of Agriculture shall use $10,000,000 of the 
funds of the Commodity Credit Corporation to make a grant to 
the State of New York to be used to support onion producers in 
Orange County, New York, that have suffered losses to onion 
crops during 1 or more of the 1996 through 2000 crop years.

SEC. 10107. COMMERCIAL FISHERIES FAILURE.

    (a) In General.--The Secretary of Agriculture, in 
consultation with the Secretary of Commerce, shall provide 
emergency disaster assistance for the commercial fishery 
failure under section 308(b)(1) of the Interjurisdictional 
Fisheries Act of 1986 (16 U.S.C. 4107(b)(1)) with respect to 
Northeast multispecies fisheries.
    (b) Program Requirements.--Amounts made available to carry 
out this section shall be used to support a voluntary fishing 
capacity reduction program in the Northeast multispecies 
fishery that--
            (1) is certified by the Secretary of Commerce to be 
        consistent with section 312(b) of the Magnuson-Stevens 
        Fishery Conservation and Management Act (16 U.S.C. 
        1861a(b)); and
            (2) permanently revokes multispecies limited access 
        fishing permits so as to obtain the maximum sustained 
        reduction in fishing capacity at the least cost and in 
        the minimum period of time and to prevent the 
        replacement of fishing capacity removed by the program.
    (c) Application of Regulations.--The program shall be 
carried out in accordance with the regulations codified at part 
648 of title 50, Code of Federal Regulations, and any 
corresponding rule issued in accordance with the regulations.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section.
    (e) Termination of Authority.--The authority provided under 
this section terminates on the date that is 1 year after the 
date of enactment of this Act.

SEC. 10108. STUDY OF FEASIBILITY OF PRODUCER INDEMNIFICATION FROM 
                    GOVERNMENT-CAUSED DISASTERS.

    (a) Findings.--Congress finds that the implementation of 
Federal disaster assistance programs fails to adequately 
address situations in which disaster conditions are caused 
primarily by Federal action.
    (b) Authority.--The Secretary of Agriculture shall conduct 
a study of the feasibility of expanding eligibility for crop 
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 
et seq.), and noninsured crop assistance under section 196 of 
the Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7333), to agricultural producers experiencing disaster 
conditions caused primarily by Federal agency action 
restricting access to irrigation water, including any lack of 
access to an adequate supply of water caused by failure by the 
Secretary of the Interior to fulfill a contract in accordance 
with the Central Valley Project Improvement Act (106 Stat. 
4706).
    (c) Report.--Not later than 150 days after the date of 
enactment of this Act, the Secretary shall submit to the 
Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture, Nutrition, and Forestry of the 
Senate a report that describes the results of the study, 
including any recommendations.

                  Subtitle C--Tree Assistance Program

SEC. 10201. DEFINITIONS.

    In this subtitle:
            (1) Eligible orchardist.--The term ``eligible 
        orchardist'' means a person that produces annual crops 
        from trees for commercial purposes.
            (2) Natural disaster.--The term ``natural 
        disaster'' means plant disease, insect infestation, 
        drought, fire, freeze, flood, earthquake, lightning, 
        and other occurrence, as determined by the Secretary.
            (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
            (4) Tree.--The term ``tree'' includes a tree, bush, 
        and vine.

SEC. 10202. ELIGIBILITY.

    (a) Loss.--Subject to subsection (b), the Secretary shall 
provide assistance under section 10203 to eligible orchardists 
that planted trees for commercial purposes but lost the trees 
as a result of a natural disaster, as determined by the 
Secretary.
    (b) Limitation.--An eligible orchardist shall qualify for 
assistance under subsection (a) only if the tree mortality of 
the eligible orchardist, as a result of damaging weather or 
related condition, exceeds 15 percent (adjusted for normal 
mortality).

SEC. 10203. ASSISTANCE.

    Subject to section 10204, the assistance provided by the 
Secretary to eligible orchardists for losses described in 
section 10202 shall consist of--
            (1) reimbursement of 75 percent of the cost of 
        replanting trees lost due to a natural disaster, as 
        determined by the Secretary, in excess of 15 percent 
        mortality (adjusted for normal mortality); or
            (2) at the option of the Secretary, sufficient 
        seedlings to reestablish a stand.

SEC. 10204. LIMITATIONS ON ASSISTANCE.

    (a) Amount.--The total amount of payments that a person 
shall be entitled to receive under this subtitle may not exceed 
$75,000, or an equivalent value in tree seedlings.
    (b) Acres.--The total quantity of acres planted to trees or 
tree seedlings for which a person shall be entitled to receive 
payments under this subtitle may not exceed 500 acres.
    (c) Regulations.--The Secretary shall promulgate 
regulations--
            (1) defining the term ``person'' for the purposes 
        of this subtitle, which shall conform, to the maximum 
        extent practicable, to the regulations defining the 
        term ``person'' promulgated under section 1001 of the 
        Food Security Act of 1985 (7 U.S.C. 1308); and
            (2) promulgating such regulations as the Secretary 
        determines necessary to ensure a fair and reasonable 
        application of the limitation established under this 
        section.

SEC. 10205. AUTHORIZATION OF APPROPRIATIONS.

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

                       Subtitle D--Animal Welfare

SEC. 10301. DEFINITION OF ANIMAL UNDER THE ANIMAL WELFARE ACT.

    Section 2(g) of the Animal Welfare Act (7 U.S.C. 2132(g)) 
is amended in the first sentence by striking ``excludes horses 
not used for research purposes and'' and inserting the 
following: ``excludes (1) birds, rats of the genus Rattus, and 
mice of the genus Mus, bred for use in research, (2) horses not 
used for research purposes, and (3)''.

SEC. 10302. PROHIBITION ON INTERSTATE MOVEMENT OF ANIMALS FOR ANIMAL 
                    FIGHTING.

    (a) In General.--Section 26 of the Animal Welfare Act (7 
U.S.C. 2156) is amended--
            (1) by striking subsection (a) and inserting the 
        following:
    ``(a) Sponsoring or Exhibiting an Animal in an Animal 
Fighting Venture.--
            ``(1) In general.--Except as provided in paragraph 
        (2), it shall be unlawful for any person to knowingly 
        sponsor or exhibit an animal in an animal fighting 
        venture, if any animal in the venture was moved in 
        interstate or foreign commerce.
            ``(2) Special rule for certain states.--With 
        respect to fighting ventures involving live birds in a 
        State where it would not be in violation of the law, it 
        shall be unlawful under this subsection for a person to 
        sponsor or exhibit a bird in the fighting venture only 
        if the person knew that any bird in the fighting 
        venture was knowingly bought, sold, delivered, 
        transported, or received in interstate or foreign 
        commerce for the purpose of participation in the 
        fighting venture.'';
            (2) in subsection (b), by striking ``or deliver to 
        another person or receive from another person'' and 
        inserting ``deliver, or receive''; and
            (3) in subsection (d), by striking ``subsections 
        (a), (b), or (c) of this section'' and inserting 
        ``subsection (c)''.
    (b) Effective Date.--The amendments made by this section 
take effect 1 year after the date of enactment of this Act.

SEC. 10303. PENALTIES AND FOREIGN COMMERCE PROVISIONS OF THE ANIMAL 
                    WELFARE ACT.

    (a) In General.--Section 26 of the Animal Welfare Act (7 
U.S.C. 2156) is amended--
            (1) in subsection (e)--
                    (A) by inserting ``Penalties.--'' after 
                ``(e)''; and
                    (B) by striking ``$5,000'' and inserting 
                ``$15,000''; and
            (2) in subsection (g)(2)(B), by inserting before 
        the semicolon at the end the following: ``or from any 
        State into any foreign country''.
    (b) Effective Date.--The amendment made by this section 
takes effect 1 year after the date of enactment of this Act.

SEC. 10304. REPORT ON RATS, MICE, AND BIRDS.

    (a) In General.--Not later than 1 year after the date of 
enactment of this Act, the National Research Council shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate, a report on the implications of 
including rats, mice, and birds within the definition of animal 
under the regulations promulgated under the Animal Welfare Act 
(7 U.S.C. 2131 et seq.)
    (b) Requirements.--The report under subsection (a) shall--
            (1) be completed with input, consultation, and 
        recommendations from--
                    (A) the Secretary of Agriculture;
                    (B) the Secretary of Health and Human 
                Services; and
                    (C) the Institute for Animal Laboratory 
                Research within the National Academy of 
                Sciences;
            (2) contain an estimate of--
                    (A) the number and types of entities that 
                use rats, mice, and birds for research 
                purposes; and
                    (B) which of the entities--
                            (i) are subject to regulations of 
                        the Department of Agriculture;
                            (ii) are subject to regulations or 
                        guidelines of the Department of Health 
                        and Human Services; or
                            (iii) voluntarily comply with the 
                        accreditation requirements of the 
                        Association for Assessment and 
                        Accreditation of Laboratory Animal 
                        Care;
            (3) contain an estimate of the numbers of rats, 
        mice, and birds used in research facilities, with an 
        indication of which of the facilities--
                    (A) are subject to regulations of the 
                Department of Agriculture;
                    (B) are subject to regulations or 
                guidelines of the Department of Health and 
                Human Services; or
                    (C) voluntarily comply with the 
                accreditation requirements of the Association 
                for Assessment and Accreditation of Laboratory 
                Animal Care;
            (4) contain an estimate of the additional costs 
        likely to be incurred by breeders and research 
        facilities resulting from the additional regulatory 
        requirements needed in order to afford the same level 
        of protection to rats, mice, and birds as is provided 
        for species regulated by the Department of Agriculture, 
        detailing the costs associated with individual 
        regulatory requirements;
            (5) contain recommendations for minimizing such 
        costs, including--
                    (A) an estimate of the cost savings that 
                would result from providing a different level 
                of protection to rats, mice, and birds than is 
                provided for species regulated by the 
                Department of Agriculture; and
                    (B) an estimate of the cost savings that 
                would result if new regulatory requirements 
                were substantially equivalent to, and 
                harmonized with, guidelines of the National 
                Institutes of Health;
            (6) contain an estimate of the additional funding 
        that the Animal and Plant Health Inspection Service 
        would require to be able to ensure that the level of 
        compliance with respect to other regulated animals is 
        not diminished by the increase in the number of 
        facilities that would require inspections if a rule 
        extending the regulatory definition of animal to rats, 
        mice, and birds were to become effective; and
            (7) contain recommendations for--
                    (A) minimizing the regulatory burden on 
                facilities subject to--
                            (i) regulations of the Department 
                        of Agriculture;
                            (ii) regulations or guidelines of 
                        the Department of Health and Human 
                        Services; or
                            (iii) accreditation requirements of 
                        the Association for Assessment and 
                        Accreditation of Laboratory Animal 
                        Care; and
                    (B) preventing any duplication of 
                regulatory requirements.

SEC. 10305. ENFORCEMENT OF HUMANE METHODS OF SLAUGHTER ACT OF 1958.

    (a) Sense of Congress.--It is the sense of Congress that 
the Secretary of Agriculture should--
            (1) continue tracking the number of violations of 
        Public Law 85-765 (7 U.S.C. 1901 et seq.; commonly 
        known as the ``Humane Methods of Slaughter Act of 
        1958'') and report the results and relevant trends 
        annually to Congress; and
            (2) fully enforce Public Law 85-765 by ensuring 
        that humane methods in the slaughter of livestock--
                    (A) prevent needless suffering;
                    (B) result in safer and better working 
                conditions for persons engaged in slaughtering 
                operations;
                    (C) bring about improvement of products and 
                economies in slaughtering operations; and
                    (D) produce other benefits for producers, 
                processors, and consumers that tend to expedite 
                an orderly flow of livestock and livestock 
                products in interstate and foreign commerce.
    (b) United States Policy.--It is the policy of the United 
States that the slaughtering of livestock and the handling of 
livestock in connection with slaughter shall be carried out 
only by humane methods, as provided by Public Law 85-765.

                  Subtitle E--Animal Health Protection

SEC. 10401. SHORT TITLE.

    This subtitle may be cited as the ``Animal Health 
Protection Act''.

SEC. 10402. FINDINGS.

    Congress finds that--
            (1) the prevention, detection, control, and 
        eradication of diseases and pests of animals are 
        essential to protect--
                    (A) animal health;
                    (B) the health and welfare of the people of 
                the United States;
                    (C) the economic interests of the livestock 
                and related industries of the United States;
                    (D) the environment of the United States; 
                and
                    (E) interstate commerce and foreign 
                commerce of the United States in animals and 
                other articles;
            (2) animal diseases and pests are primarily 
        transmitted by animals and articles regulated under 
        this subtitle;
            (3) the health of animals is affected by the 
        methods by which animals and articles are transported 
        in interstate commerce and foreign commerce;
            (4) the Secretary must continue to conduct research 
        on animal diseases and pests that constitute a threat 
        to the livestock of the United States; and
            (5)(A) all animals and articles regulated under 
        this subtitle are in or affect interstate commerce or 
        foreign commerce; and
            (B) regulation by the Secretary and cooperation by 
        the Secretary with foreign countries, States or other 
        jurisdictions, or persons are necessary--
                    (i) to prevent and eliminate burdens on 
                interstate commerce and foreign commerce;
                    (ii) to regulate effectively interstate 
                commerce and foreign commerce; and
                    (iii) to protect the agriculture, 
                environment, economy, and health and welfare of 
                the people of the United States.

SEC. 10403. DEFINITIONS.

    In this subtitle:
            (1) Animal.--The term ``animal'' means any member 
        of the animal kingdom (except a human).
            (2) Article.--The term ``article'' means any pest 
        or disease or any material or tangible object that 
        could harbor a pest or disease.
            (3) Disease.--The term ``disease'' has the meaning 
        given the term by the Secretary.
            (4) Enter.--The term ``enter'' means to move into 
        the commerce of the United States.
            (5) Export.--The term ``export'' means to move from 
        a place within the territorial limits of the United 
        States to a place outside the territorial limits of the 
        United States.
            (6) Facility.--The term ``facility'' means any 
        structure.
            (7) Import.--The term ``import'' means to move from 
        a place outside the territorial limits of the United 
        States to a place within the territorial limits of the 
        United States.
            (8) Indian tribe.--The term ``Indian tribe'' has 
        the meaning given the term in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b).
            (9) Interstate commerce.--The term ``interstate 
        commerce'' means trade, traffic, or other commerce--
                    (A) between a place in a State and a place 
                in another State, or between places within the 
                same State but through any place outside that 
                State; or
                    (B) within the District of Columbia or any 
                territory or possession of the United States.
            (10) Livestock.--The term ``livestock'' means all 
        farm-raised animals.
            (11) Means of conveyance.--The term ``means of 
        conveyance'' means any personal property used for or 
        intended for use for the movement of any other personal 
        property.
            (12) Move.--The term ``move'' means--
                    (A) to carry, enter, import, mail, ship, or 
                transport;
                    (B) to aid, abet, cause, or induce 
                carrying, entering, importing, mailing, 
                shipping, or transporting;
                    (C) to offer to carry, enter, import, mail, 
                ship, or transport;
                    (D) to receive in order to carry, enter, 
                import, mail, ship, or transport;
                    (E) to release into the environment; or
                    (F) to allow any of the activities 
                described in this paragraph.
            (13) Pest.--The term ``pest'' means any of the 
        following that can directly or indirectly injure, cause 
        damage to, or cause disease in livestock:
                    (A) A protozoan.
                    (B) A plant.
                    (C) A bacteria.
                    (D) A fungus.
                    (E) A virus or viroid.
                    (F) An infectious agent or other pathogen.
                    (G) An arthropod.
                    (H) A parasite.
                    (I) A prion.
                    (J) A vector.
                    (K) Any organism similar to or allied with 
                any of the organisms described in this 
                paragraph.
            (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, Guam, the Commonwealth of the Northern 
        Mariana Islands, the Virgin Islands of the United 
        States, or any territory or possession of the United 
        States.
            (16) This subtitle.--Except when used in this 
        section, the term ``this subtitle'' includes any 
        regulation or order issued by the Secretary under the 
        authority of this subtitle.
            (17) United states.--The term ``United States'' 
        means all of the States.

SEC. 10404. RESTRICTION ON IMPORTATION OR ENTRY.

    (a) In General.--With notice to the Secretary of the 
Treasury and public notice as soon as practicable, the 
Secretary may prohibit or restrict--
            (1) the importation or entry of any animal, 
        article, or means of conveyance, or use of any means of 
        conveyance or facility, if the Secretary determines 
        that the prohibition or restriction is necessary to 
        prevent the introduction into or dissemination within 
        the United States of any pest or disease of livestock;
            (2) the further movement of any animal that has 
        strayed into the United States if the Secretary 
        determines that the prohibition or restriction is 
        necessary to prevent the introduction into or 
        dissemination within the United States of any pest or 
        disease of livestock; and
            (3) the use of any means of conveyance in 
        connection with the importation or entry of livestock 
        if the Secretary determines that the prohibition or 
        restriction is necessary because the means of 
        conveyance has not been maintained in a clean and 
        sanitary condition or does not have accommodations for 
        the safe and proper movement of livestock.
    (b) Regulations.--
            (1) Restrictions on import and entry.--The 
        Secretary may issue such orders and promulgate such 
        regulations as are necessary to carry out subsection 
        (a).
            (2) Post importation quarantine.--The Secretary may 
        promulgate regulations requiring that any animal 
        imported or entered be raised or handled under post-
        importation quarantine conditions by or under the 
        supervision of the Secretary for the purpose of 
        determining whether the animal is or may be affected by 
        any pest or disease of livestock.
    (c) Destruction or Removal.--
            (1) In general.--The Secretary may order the 
        destruction or removal from the United States of--
                    (A) any animal, article, or means of 
                conveyance that has been imported but has not 
                entered the United States if the Secretary 
                determines that destruction or removal from the 
                United States is necessary to prevent the 
                introduction into or dissemination within the 
                United States of any pest or disease of 
                livestock;
                    (B) any animal or progeny of any animal, 
                article, or means of conveyance that has been 
                imported or entered in violation of this 
                subtitle; or
                    (C) any animal that has strayed into the 
                United States if the Secretary determines that 
                destruction or removal from the United States 
                is necessary to prevent the introduction into 
                or dissemination within the United States of 
                any pest or disease of livestock.
            (2) Requirements of owners.--
                    (A) Orders to disinfect.--The Secretary may 
                require the disinfection of--
                            (i) a means of conveyance used in 
                        connection with the importation of an 
                        animal;
                            (ii) an individual involved in the 
                        importation of an animal and personal 
                        articles of the individual; and
                            (iii) any article used in the 
                        importation of an animal.
                    (B) Failure to comply with orders.--If an 
                owner fails to comply with an order of the 
                Secretary under this section, the Secretary 
                may--
                            (i) take remedial action, destroy, 
                        or remove from the United States the 
                        animal or progeny of any animal, 
                        article, or means of conveyance as 
                        authorized under paragraph (1); and
                            (ii) recover from the owner the 
                        costs of any care, handling, disposal, 
                        or other action incurred by the 
                        Secretary in connection with the 
                        remedial action, destruction, or 
                        removal.

SEC. 10405. EXPORTATION.

    (a) In General.--The Secretary may prohibit or restrict--
            (1) the exportation of any animal, article, or 
        means of conveyance if the Secretary determines that 
        the prohibition or restriction is necessary to prevent 
        the dissemination from or within the United States of 
        any pest or disease of livestock;
            (2) the exportation of any livestock if the 
        Secretary determines that the livestock is unfit to be 
        moved;
            (3) the use of any means of conveyance or facility 
        in connection with the exportation of any animal or 
        article if the Secretary determines that the 
        prohibition or restriction is necessary to prevent the 
        dissemination from or within the United States of any 
        pest or disease of livestock; or
            (4) the use of any means of conveyance in 
        connection with the exportation of livestock if the 
        Secretary determines that the prohibition or 
        restriction is necessary because the means of 
        conveyance has not been maintained in a clean and 
        sanitary condition or does not have accommodations for 
        the safe and proper movement and humane treatment of 
        livestock.
    (b) Requirements of Owners.--
            (1) Orders to disinfect.--The Secretary may require 
        the disinfection of--
                    (A) a means of conveyance used in 
                connection with the exportation of an animal;
                    (B) an individual involved in the 
                exportation of an animal and personal articles 
                of the individual; and
                    (C) any article used in the exportation of 
                an animal.
            (2) Failure to comply with orders.--If an owner 
        fails to comply with an order of the Secretary under 
        this section, the Secretary may--
                    (A) take remedial action with respect to 
                the animal, article, or means of conveyance 
                referred to in paragraph (1); and
                    (B) recover from the owner the costs of any 
                care, handling, disposal, or other action 
                incurred by the Secretary in connection with 
                the remedial action.
    (c) Certification.--The Secretary may certify the 
classification, quality, quantity, condition, processing, 
handling, or storage of any animal or article intended for 
export.

SEC. 10406. INTERSTATE MOVEMENT.

    The Secretary may prohibit or restrict--
            (1) the movement in interstate commerce of any 
        animal, article, or means of conveyance if the 
        Secretary determines that the prohibition or 
        restriction is necessary to prevent the introduction or 
        dissemination of any pest or disease of livestock; and
            (2) the use of any means of conveyance or facility 
        in connection with the movement in interstate commerce 
        of any animal or article if the Secretary determines 
        that the prohibition or restriction is necessary to 
        prevent the introduction or dissemination of any pest 
        or disease of livestock.

SEC. 10407. SEIZURE, QUARANTINE, AND DISPOSAL.

    (a) In General.--The Secretary may hold, seize, quarantine, 
treat, destroy, dispose of, or take other remedial action with 
respect to--
            (1) any animal or progeny of any animal, article, 
        or means of conveyance that--
                    (A) is moving or has been moved in 
                interstate commerce or has been imported and 
                entered; and
                    (B) the Secretary has reason to believe may 
                carry, may have carried, or may have been 
                affected with or exposed to any pest or disease 
                of livestock at the time of movement or that is 
                otherwise in violation of this subtitle;
            (2) any animal or progeny of any animal, article, 
        or means of conveyance that is moving or is being 
        handled, or has moved or has been handled, in 
        interstate commerce in violation of this subtitle;
            (3) any animal or progeny of any animal, article, 
        or means of conveyance that has been imported, and is 
        moving or is being handled or has moved or has been 
        handled, in violation of this subtitle; or
            (4) any animal or progeny of any animal, article, 
        or means of conveyance that the Secretary finds is not 
        being maintained, or has not been maintained, in 
        accordance with any post-importation quarantine, post-
        importation condition, post-movement quarantine, or 
        post-movement condition in accordance with this 
        subtitle.
    (b) Extraordinary Emergencies.--
            (1) In general.--Subject to paragraph (2), if the 
        Secretary determines that an extraordinary emergency 
        exists because of the presence in the United States of 
        a pest or disease of livestock and that the presence of 
        the pest or disease threatens the livestock of the 
        United States, the Secretary may--
                    (A) hold, seize, treat, apply other 
                remedial actions to, destroy (including 
                preventative slaughter), or otherwise dispose 
                of, any animal, article, facility, or means of 
                conveyance if the Secretary determines the 
                action is necessary to prevent the 
                dissemination of the pest or disease; and
                    (B) prohibit or restrict the movement or 
                use within a State, or any portion of a State 
                of any animal or article, means of conveyance, 
                or facility if the Secretary determines that 
                the prohibition or restriction is necessary to 
                prevent the dissemination of the pest or 
                disease.
            (2) State action.--
                    (A) In general.--The Secretary may take 
                action in a State under this subsection only on 
                finding that measures being taken by the State 
                are inadequate to control or eradicate the pest 
                or disease, after review and consultation 
                with--
                            ``(i) the Governor or an 
                        appropriate animal health official of 
                        the State; or
                            ``(ii) in the case of any animal, 
                        article, facility, or means of 
                        conveyance under the jurisdiction of an 
                        Indian tribe, the head of the Indian 
                        tribe.
                    (B) Notice.--Subject to subparagraph (C), 
                before any action is taken in a State under 
                subparagraph (A), the Secretary shall--
                            (i) notify the Governor, an 
                        appropriate animal health official of 
                        the State, or head of the Indian tribe 
                        of the proposed action;
                            (ii) issue a public announcement of 
                        the proposed action; and
                            (iii) publish in the Federal 
                        Register--
                                    (I) the findings of the 
                                Secretary;
                                    (II) a description of the 
                                proposed action; and
                                    (III) a statement of the 
                                reasons for the proposed 
                                action.
                    (C) Notice after action.--If it is not 
                practicable to publish in the Federal Register 
                the information required under subparagraph 
                (B)(iii) before taking action under 
                subparagraph (A), the Secretary shall publish 
                the information as soon as practicable, but not 
                later than 10 business days, after commencement 
                of the action.
    (c) Quarantine, Disposal, or Other Remedial Action.--
            (1) In general.--The Secretary, in writing, may 
        order the owner of any animal, article, facility, or 
        means of conveyance referred to in subsection (a) or 
        (b) to maintain in quarantine, dispose of, or take 
        other remedial action with respect to the animal, 
        article, facility, or means of conveyance, in a manner 
        determined by the Secretary.
            (2) Failure to comply with orders.--If the owner 
        fails to comply with the order of the Secretary, the 
        Secretary may--
                    (A) seize, quarantine, dispose of, or take 
                other remedial action with respect to the 
                animal, article, facility, or means of 
                conveyance under subsection (a) or (b); and
                    (B) recover from the owner the costs of any 
                care, handling, disposal, or other remedial 
                action incurred by the Secretary in connection 
                with the seizure, quarantine, disposal, or 
                other remedial action.
    (d) Compensation.--
            (1) In general.--Except as provided in paragraph 
        (3), the Secretary shall compensate the owner of any 
        animal, article, facility, or means of conveyance that 
        the Secretary requires to be destroyed under this 
        section.
            (2) Amount.--
                    (A) In general.--Subject to subparagraphs 
                (B) and (C), the compensation shall be based on 
                the fair market value, as determined by the 
                Secretary, of the destroyed animal, article, 
                facility, or means of conveyance.
                    (B) Limitation.--Compensation paid any 
                owner under this subsection shall not exceed 
                the difference between--
                            (i) the fair market value of the 
                        destroyed animal, article, facility, or 
                        means of conveyance; and
                            (ii) any compensation received by 
                        the owner from a State or other source 
                        for the destroyed animal, article, 
                        facility, or means of conveyance.
                    (C) Reviewability.--The determination by 
                the Secretary of the amount to be paid under 
                this subsection shall be final and not subject 
                to judicial review or review of longer than 60 
                days by any officer or employee of the Federal 
                Government other than the Secretary or the 
                designee of the Secretary.
            (3) Exceptions.--No payment shall be made by the 
        Secretary under this subsection for--
                    (A) any animal, article, facility, or means 
                of conveyance that has been moved or handled by 
                the owner in violation of an agreement for the 
                control and eradication of diseases or pests or 
                in violation of this subtitle;
                    (B) any progeny of any animal or article, 
                which animal or article has been moved or 
                handled by the owner of the animal or article 
                in violation of this subtitle;
                    (C) any animal, article, or means of 
                conveyance that is refused entry under this 
                subtitle; or
                    (D) any animal, article, facility, or means 
                of conveyance that becomes or has become 
                affected with or exposed to any pest or disease 
                of livestock because of a violation of an 
                agreement for the control and eradication of 
                diseases or pests or a violation of this 
                subtitle by the owner.

SEC. 10408. INSPECTIONS, SEIZURES, AND WARRANTS.

    (a) Guidelines.--The activities authorized by this section 
shall be carried out consistent with guidelines approved by the 
Attorney General.
    (b) Warrantless Inspections.--The Secretary may stop and 
inspect, without a warrant, any person or means of conveyance 
moving--
            (1) into the United States, to determine whether 
        the person or means of conveyance is carrying any 
        animal or article regulated under this subtitle;
            (2) in interstate commerce, on probable cause to 
        believe that the person or means of conveyance is 
        carrying any animal or article regulated under this 
        subtitle; or
            (3) in intrastate commerce from any State, or any 
        portion of a State, quarantined under section 10407(b), 
        on probable cause to believe that the person or means 
        of conveyance is carrying any animal or article 
        quarantined under section 10407(b).
    (c) Inspections With Warrants.--
            (1) In general.--The Secretary may enter, with a 
        warrant, any premises in the United States for the 
        purpose of making inspections and seizures under this 
        subtitle.
            (2) Application and issuance of warrants.--
                    (A) In general.--On proper oath or 
                affirmation showing probable cause to believe 
                that there is on certain premises any animal, 
                article, facility, or means of conveyance 
                regulated under this subtitle, a United States 
                judge, a judge of a court of record in the 
                United States, or a United States magistrate 
                judge may issue a warrant for the entry on 
                premises within the jurisdiction of the judge 
                or magistrate to make any inspection or seizure 
                under this subtitle.
                    (B) Execution.--The warrant may be applied 
                for and executed by the Secretary or any United 
                States marshal.

SEC. 10409. DETECTION, CONTROL, AND ERADICATION OF DISEASES AND PESTS.

    (a) In General.--The Secretary may carry out operations and 
measures to detect, control, or eradicate any pest or disease 
of livestock (including the drawing of blood and diagnostic 
testing of animals), including animals at a slaughterhouse, 
stockyard, or other point of concentration.
    (b) Compensation.--
            (1) In general.--The Secretary may pay a claim 
        arising out of the destruction of any animal, article, 
        or means of conveyance consistent with the purposes of 
        this subtitle.
            (2) Reviewability.--The action of the Secretary in 
        carrying out paragraph (1) shall not be subject to 
        review of longer than 60 days by any officer or 
        employee of the Federal Government other than the 
        Secretary or the designee of the Secretary.

SEC. 10410. VETERINARY ACCREDITATION PROGRAM.

    (a) In General.--The Secretary may establish a veterinary 
accreditation program that is consistent with this subtitle, 
including the establishment of standards of conduct for 
accredited veterinarians.
    (b) Consultation.--The Secretary shall consult with State 
animal health officials and veterinary professionals regarding 
the establishment of the veterinary accreditation program.
    (c) Suspension or Revocation of Accreditation.--
            (1) In general.--The Secretary may, after notice 
        and opportunity for a hearing on the record, suspend or 
        revoke the accreditation of any veterinarian accredited 
        under this title who violates this subtitle.
            (2) Final order.--The order of the Secretary 
        suspending or revoking accreditation shall be treated 
        as a final order reviewable under chapter 158 of title 
        28, United States Code.
            (3) Summary suspension.--
                    (A) In general.--The Secretary may 
                summarily suspend the accreditation of a 
                veterinarian whom the Secretary has reason to 
                believe knowingly violated this subtitle.
                    (B) Hearings.--The Secretary shall provide 
                the veterinarian with a subsequent notice and 
                an opportunity for a prompt post-suspension 
                hearing on the record.
    (d) Application of Penalty Provisions.--The criminal and 
civil penalties described in section 10414 shall not apply to a 
violation of this section that is not a violation of any other 
provision of this subtitle.

SEC. 10411. COOPERATION.

    (a) In General.--To carry out this subtitle, the Secretary 
may cooperate with other Federal agencies, States or political 
subdivisions of States, national governments of foreign 
countries, local governments of foreign countries, domestic or 
international organizations, domestic or international 
associations, Indian tribes, and other persons.
    (b) Responsibility.--The person or other entity cooperating 
with the Secretary shall be responsible for the authority 
necessary to carry out operations or measures--
            (1) on all land and property within a foreign 
        country or State, or under the jurisdiction of an 
        Indian tribe, other than on land and property owned or 
        controlled by the United States; and
            (2) using other facilities and means, as determined 
        by the Secretary.
    (c) Screwworms.--
            (1) In general.--The Secretary may, independently 
        or in cooperation with national governments of foreign 
        countries or international organizations or 
        associations, produce and sell sterile screwworms to 
        any national government of a foreign country or 
        international organization or association, if the 
        Secretary determines that the livestock industry and 
        related industries of the United States will not be 
        adversely affected by the production and sale.
            (2) Proceeds.--
                    (A) Independent production and sale.--If 
                the Secretary independently produces and sells 
                sterile screwworms under paragraph (1), the 
                proceeds of the sale shall be--
                            (i) deposited into the Treasury of 
                        the United States; and
                            (ii) credited to the account from 
                        which the operating expenses of the 
                        facility producing the sterile 
                        screwworms have been paid.
                    (B) Cooperative production and sale.--
                            (i) In general.--If the Secretary 
                        cooperates to produce and sell sterile 
                        screwworms under paragraph (1), the 
                        proceeds of the sale shall be divided 
                        between the United States and the 
                        cooperating national government or 
                        international organization or 
                        association in a manner determined by 
                        the Secretary.
                            (ii) Account.--The United States 
                        portion of the proceeds shall be--
                                    (I) deposited into the 
                                Treasury of the United States; 
                                and
                                    (II) credited to the 
                                account from which the 
                                operating expenses of the 
                                facility producing the sterile 
                                screwworms have been paid.
    (d) Cooperation in Program Administration.--The Secretary 
may cooperate with State authorities, Indian tribe authorities, 
or other persons in the administration of regulations for the 
improvement of livestock and livestock products.
    (e) Consultation and Coordination With Other Federal 
Agencies.--
            (1) In general.--The Secretary shall consult and 
        coordinate with the head of a Federal agency with 
        respect to any activity that is under the jurisdiction 
        of the Federal agency.
            (2) Lead agency.--Subject to the consultation and 
        coordination requirement in paragraph (1), the 
        Department of Agriculture shall be the lead agency with 
        respect to issues related to pests and diseases of 
        livestock.

SEC. 10412. REIMBURSABLE AGREEMENTS.

    (a) Authority To Enter Into Agreements.--The Secretary may 
enter into reimbursable fee agreements with persons for 
preclearance of animals or articles at locations outside the 
United States for movement into the United States.
    (b) Funds Collected for Preclearance.--Funds collected for 
preclearance activities shall--
            (1) be credited to accounts that may be established 
        by the Secretary for carrying out this section; and
            (2) remain available until expended for the 
        preclearance activities, without fiscal year 
        limitation.
    (c) Payment of Employees.--
            (1) In general.--Notwithstanding any other law, the 
        Secretary may pay an officer or employee of the 
        Department of Agriculture performing services under 
        this subtitle relating to imports into and exports from 
        the United States for all overtime, night, or holiday 
        work performed by the officer or employee at a rate of 
        pay determined by the Secretary.
            (2) Reimbursement.--
                    (A) In general.--The Secretary may require 
                a person for whom the services are performed to 
                reimburse the Secretary for any expenses paid 
                by the Secretary for the services under this 
                subsection.
                    (B) Use of funds.--All funds collected 
                under this subsection shall--
                            (i) be credited to the account that 
                        incurs the costs; and
                            (ii) remain available until 
                        expended, without fiscal year 
                        limitation.
    (d) Late Payment Penalties.--
            (1) Collection.--On failure by a person to 
        reimburse the Secretary in accordance with this 
        section, the Secretary may assess a late payment 
        penalty against the person, including interest on 
        overdue funds, as required by section 3717 of title 31, 
        United States Code.
            (2) Use of funds.--Any late payment penalty and any 
        accrued interest shall--
                    (A) be credited to the account that incurs 
                the costs; and
                    (B) remain available until expended, 
                without fiscal year limitation.

SEC. 10413. ADMINISTRATION AND CLAIMS.

    (a) Administration.--To carry out this subtitle, the 
Secretary may--
            (1) acquire and maintain real or personal property;
            (2) employ a person;
            (3) make a grant; and
            (4) notwithstanding chapter 63 of title 31, United 
        States Code, enter into a contract, cooperative 
        agreement, memorandum of understanding, or other 
        agreement.
    (b) Tort Claims.--
            (1) In general.--Except as provided in paragraph 
        (2), the Secretary may pay a tort claim, in the manner 
        authorized by the first paragraph of section 2672 of 
        title 28, United States Code, if the claim arises 
        outside the United States in connection with an 
        activity authorized under this subtitle.
            (2) Requirements.--A claim may not be allowed under 
        this subsection unless the claim is presented in 
        writing to the Secretary not later than 2 years after 
        the date on which the claim arises.

SEC. 10414. PENALTIES.

    (a) Criminal Penalties.--
            (1) Offenses.--
                    (A) In general.--A person that knowingly 
                violates this subtitle, or knowingly forges, 
                counterfeits, or, without authority from the 
                Secretary, uses, alters, defaces, or destroys 
                any certificate, permit, or other document 
                provided for in this subtitle shall be fined 
                under title 18, United States Code, imprisoned 
                not more than 1 year, or both.
                    (B) Distribution or sale.--A person that 
                knowingly imports, enters, exports, or moves 
                any animal or article, for distribution or 
                sale, in violation of this subtitle, shall be 
                fined under title 18, United States Code, 
                imprisoned not more than 5 years, or both.
            (2) Multiple violations.--On the second and any 
        subsequent conviction of a person of a violation of 
        this subtitle under paragraph (1), the person shall be 
        fined under title 18, United States Code, imprisoned 
        not more than 10 years, or both.
    (b) Civil Penalties.--
            (1) In general.--Except as provided in section 
        10410(d), any person that violates this subtitle, or 
        that forges, counterfeits, or, without authority from 
        the Secretary, uses, alters, defaces, or destroys any 
        certificate, permit, or other document provided under 
        this subtitle may, after notice and opportunity for a 
        hearing on the record, be assessed a civil penalty by 
        the Secretary that does not exceed the greater of--
                    (A)(i) $50,000 in the case of any 
                individual, except that the civil penalty may 
                not exceed $1,000 in the case of an initial 
                violation of this subtitle by an individual 
                moving regulated articles not for monetary 
                gain;
                    (ii) $250,000 in the case of any other 
                person for each violation; and
                    (iii) $500,000 for all violations 
                adjudicated in a single proceeding; or
                    (B) twice the gross gain or gross loss for 
                any violation or forgery, counterfeiting, or 
                unauthorized use, alteration, defacing or 
                destruction of a certificate, permit, or other 
                document provided under this subtitle that 
                results in the person's deriving pecuniary gain 
                or causing pecuniary loss to another person.
            (2) Factors in determining civil penalty.--In 
        determining the amount of a civil penalty, the 
        Secretary shall take into account the nature, 
        circumstance, extent, and gravity of the violation or 
        violations and the Secretary may consider, with respect 
        to the violator--
                    (A) the ability to pay;
                    (B) the effect on ability to continue to do 
                business;
                    (C) any history of prior violations;
                    (D) the degree of culpability; and
                    (E) such other factors as the Secretary 
                considers to be appropriate.
            (3) Settlement of civil penalties.--The Secretary 
        may compromise, modify, or remit, with or without 
        conditions, any civil penalty that may be assessed 
        under this subsection.
            (4) Finality of orders.--
                    (A) Final order.--The order of the 
                Secretary assessing a civil penalty shall be 
                treated as a final order reviewable under 
                chapter 158 of title 28, United States Code.
                    (B) Review.--The validity of the order of 
                the Secretary may not be reviewed in an action 
                to collect the civil penalty.
                    (C) Interest.--Any civil penalty not paid 
                in full when due under an order assessing the 
                civil penalty shall thereafter accrue interest 
                until paid at the rate of interest applicable 
                to civil judgments of the courts of the United 
                States.
    (c) Liability for Acts of Agents.--In the construction and 
enforcement of this subtitle, the act, omission, or failure of 
any officer, agent, or person acting for or employed by any 
other person within the scope of the employment or office of 
the officer, agent, or person, shall be deemed also to be the 
act, omission, or failure of the other person.
    (d) Guidelines for Civil Penalties.--Subject to the 
approval of the Attorney General, the Secretary shall establish 
guidelines to determine under what circumstances the Secretary 
may issue a civil penalty or suitable notice of warning in lieu 
of prosecution by the Attorney General of a violation of this 
subtitle.

SEC. 10415. ENFORCEMENT.

    (a) Collection of Information.--
            (1) In general.--The Secretary may gather and 
        compile information and conduct any inspection or 
        investigation that the Secretary considers to be 
        necessary for the administration or enforcement of this 
        subtitle.
            (2) Subpoenas.--
                    (A) In general.--The Secretary shall have 
                power to issue a subpoena to compel the 
                attendance and testimony of any witness and the 
                production of any documentary evidence relating 
                to the administration or enforcement of this 
                subtitle or any matter under investigation in 
                connection with this subtitle.
                    (B) Location of production.--The attendance 
                of any witness and production of documentary 
                evidence relevant to the inquiry may be 
                required from any place in the United States.
                    (C) Enforcement.--
                            (i) In general.--In case of 
                        disobedience to a subpoena by any 
                        person, the Secretary may request the 
                        Attorney General to invoke the aid of 
                        any court of the United States within 
                        the jurisdiction in which the 
                        investigation is conducted, or where 
                        the person resides, is found, transacts 
                        business, is licensed to do business, 
                        or is incorporated, to require the 
                        attendance and testimony of any witness 
                        and the production of documentary 
                        evidence.
                            (ii) Noncompliance.--In case of a 
                        refusal to obey a subpoena issued to 
                        any person, a court may order the 
                        person to appear before the Secretary 
                        and give evidence concerning the matter 
                        in question or to produce documentary 
                        evidence.
                            (iii) Contempt.--Any failure to 
                        obey the order of the court may be 
                        punished by the court as contempt of 
                        the court.
                    (D) Compensation.--
                            (i) Witnesses.--A witness summoned 
                        by the Secretary under this subtitle 
                        shall be paid the same fees and mileage 
                        that are paid to a witness in a court 
                        of the United States.
                            (ii) Depositions.--A witness whose 
                        deposition is taken, and the person 
                        taking the deposition, shall be 
                        entitled to the same fees that are paid 
                        for similar services in a court of the 
                        United States.
                    (E) Procedures.--
                            (i) Publication.--The Secretary 
                        shall publish procedures for the 
                        issuance of subpoenas under this 
                        section.
                            (ii) Review.--The procedures shall 
                        include a requirement that subpoenas be 
                        reviewed for legal sufficiency and, to 
                        be effective, be signed by the 
                        Secretary.
                            (iii) Delegation.--If the authority 
                        to sign a subpoena is delegated to an 
                        agency other than the Office of 
                        Administrative Law Judges, the agency 
                        receiving the delegation shall seek 
                        review of the subpoena for legal 
                        sufficiency outside that agency.
    (b) Authority of Attorney General.--The Attorney General 
may--
            (1) prosecute, in the name of the United States, 
        all criminal violations of this subtitle that are 
        referred to the Attorney General by the Secretary or 
        are brought to the notice of the Attorney General by 
        any person;
            (2) bring an action to enjoin the violation of or 
        to compel compliance with this subtitle, or to enjoin 
        any interference by any person with the Secretary in 
        carrying out this subtitle, in any case in which the 
        Secretary has reason to believe that the person has 
        violated, or is about to violate this subtitle or has 
        interfered, or is about to interfere, with the actions 
        of the Secretary; or
            (3) bring an action for the recovery of any unpaid 
        civil penalty, funds under a reimbursable agreement, 
        late payment penalty, or interest assessed under this 
        subtitle.
    (c) Court Jurisdiction.--
            (1) In general.--The United States district courts, 
        the District Court of Guam, the District Court of the 
        Northern Mariana Islands, the District Court of the 
        Virgin Islands, the highest court of American Samoa, 
        and the United States courts of the other territories 
        and possessions are vested with jurisdiction in all 
        cases arising under this subtitle.
            (2) Venue.--Any action arising under this subtitle 
        may be brought, and process may be served, in the 
        judicial district where a violation or interference 
        occurred or is about to occur, or where the person 
        charged with the violation, interference, impending 
        violation, impending interference, or failure to pay 
        resides, is found, transacts business, is licensed to 
        do business, or is incorporated.
            (3) Exception.--Paragraphs (1) and (2) do not apply 
        to sections 10410(c) and 10414(b).

SEC. 10416. REGULATIONS AND ORDERS.

    The Secretary may promulgate such regulations, and issue 
such orders, as the Secretary determines necessary to carry out 
this subtitle.

SEC. 10417. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
such sums as are necessary to carry out this subtitle.
    (b) Transfer of Funds.--
            (1) In general.--In connection with an emergency 
        under which a pest or disease of livestock threatens 
        any segment of agricultural production in the United 
        States, the Secretary may transfer from other 
        appropriations or funds available to the agencies or 
        corporations of the Department of Agriculture such 
        funds as the Secretary determines are necessary for the 
        arrest, control, eradication, or prevention of the 
        spread of the pest or disease of livestock and for 
        related expenses.
            (2) Availability.--Any funds transferred under this 
        subsection shall remain available until expended, 
        without fiscal year limitation.
            (3) Reviewability.--The action of any officer, 
        employee, or agent of the Secretary in carrying out 
        this section (including determining the amount of and 
        making any payment authorized to be made under this 
        subtitle) shall not be subject to review of longer than 
        60 days by any officer or employee of the Federal 
        Government other than the Secretary or the designee of 
        the Secretary.
    (c) Use of Funds.--In carrying out this subtitle, the 
Secretary may use funds made available to carry out this 
subtitle for--
            (1) the employment of civilian nationals in foreign 
        countries; and
            (2) the construction and operation of research 
        laboratories, quarantine stations, and other buildings 
        and facilities for special purposes.

SEC. 10418. REPEALS AND CONFORMING AMENDMENTS.

    (a) Repeals.--The following provisions of law are repealed:
            (1) Public Law 97-46 (7 U.S.C. 147b).
            (2) Section 101(b) of the Act of September 21, 1944 
        (7 U.S.C. 429).
            (3) The Act of August 28, 1950 (7 U.S.C. 2260).
            (4) Section 919 of the Federal Agriculture 
        Improvement and Reform Act of 1996 (7 U.S.C. 2260a).
            (5) Section 306 of the Tariff Act of 1930 (19 
        U.S.C. 1306).
            (6) Sections 6 through 8 and 10 of the Act of 
        August 30, 1890 (21 U.S.C. 102 through 105).
            (7) The Act of February 2, 1903 (21 U.S.C. 111, 120 
        through 122).
            (8) Sections 2 through 9, 11, and 13 of the Act of 
        May 29, 1884 (21 U.S.C. 112, 113, 114, 114a, 114a-1, 
        115 through 120, 130).
            (9) The first section and sections 2, 3, and 5 of 
        the Act of February 28, 1947 (21 U.S.C. 114b, 114c, 
        114d, 114d-1).
            (10) The Act of June 16, 1948 (21 U.S.C. 114e, 
        114f).
            (11) Public Law 87-209 (21 U.S.C. 114g, 114h).
            (12) The third and fourth provisos of the fourth 
        paragraph under the heading ``bureau of animal 
        industry'' of the Act of May 31, 1920 (21 U.S.C. 116).
            (13) The first section and sections 2, 3, 4, and 6 
        of the Act of March 3, 1905 (21 U.S.C. 123 through 
        127).
            (14) The first proviso under the heading ``General 
        expenses, Bureau of Animal Industry'' under the heading 
        ``BUREAU OF ANIMAL INDUSTRY'' of the Act of June 30, 
        1914 (21 U.S.C. 128).
            (15) The fourth proviso under the heading 
        ``salaries and expenses'' under the heading ``Animal 
        and Plant Health Inspection Service'' of title I of the 
        Agriculture, Rural Development, Food and Drug 
        Administration, and Related Agencies Appropriations 
        Act, 2001 (21 U.S.C. 129).
            (16) The third paragraph under the heading 
        ``MISCELLANEOUS'' of the Act of May 26, 1910 (21 U.S.C. 
        131).
            (17) The first section and sections 2 through 6 and 
        11 through 13 of Public Law 87-518 (21 U.S.C. 134 
        through 134h).
            (18) Public Law 91-239 (21 U.S.C. 135 through 
        135b).
            (19) Sections 12 through 14 of the Federal Meat 
        Inspection Act (21 U.S.C. 612 through 614).
            (20) Chapter 39 of title 46, United States Code.
    (b) Conforming Amendments.--
            (1) Section 414(b) of the Plant Protection Act (7 
        U.S.C. 7714(b)) is amended--
                    (A) in paragraph (1), by striking ``, or 
                the owner's agent,''; and
                    (B) in paragraph (2), by striking ``or 
                agent of the owner'' each place it appears.
            (2) Section 423 of the Plant Protection Act (7 
        U.S.C. 7733) is amended--
                    (A) by striking subsection (b) and 
                inserting the following:
    ``(b) Location of Production.--The attendance of any 
witness and production of documentary evidence relevant to the 
inquiry may be required from any place in the United States.'';
                    (B) in the third sentence of subsection 
                (e), by inserting ``to an agency other than the 
                Office of Administrative Law Judges'' after 
                ``is delegated''; and
                    (C) by striking subsection (f).
            (3) Section 11(h) of the Endangered Species Act of 
        1973 (16 U.S.C. 1540(h)) is amended in the first 
        sentence by striking ``animal quarantine laws (21 
        U.S.C. 101-105, 111-135b, and 612-614)'' and inserting 
        ``animal quarantine laws (as defined in section 2509(f) 
        of the Food, Agriculture, Conservation, and Trade Act 
        of 1990 (21 U.S.C. 136a(f))''.
            (4) Section 18 of the Federal Meat Inspection Act 
        (21 U.S.C. 618) is amended by striking ``of the 
        cattle'' and all that follows through ``as herein 
        described'' and inserting ``of the carcasses and 
        products of cattle, sheep, swine, goats, horses, mules, 
        and other equines''.
            (5) Section 2509 of the Food, Agriculture, 
        Conservation, and Trade Act of 1990 (21 U.S.C. 136a) is 
        amended--
                    (A) in subsection (c), by inserting after 
                paragraph (1) the following:
            ``(2) Veterinary diagnostics.--The Secretary may 
        prescribe and collect fees to recover the costs of 
        carrying out the provisions of the Animal Health 
        Protection Act that relate to veterinary 
        diagnostics.''; and
                    (B) in subsection (f)(1), by striking 
                subparagraphs (B) through (O) and inserting the 
                following:
                    ``(B) section 9 of the Act of August 30, 
                1890 (21 U.S.C. 101);
                    ``(C) the Animal Health Protection Act; or
                    ``(D) any other Act administered by the 
                Secretary relating to plant or animal diseases 
                or pests.''.
    (c) Effect on Regulations.--A regulation issued under a 
provision of law repealed by subsection (a) shall remain in 
effect until the Secretary issues a regulation under section 
10404(b) or 10416 that supersedes the earlier regulation.

                         Subtitle F--Livestock

SEC. 10501. TRANSPORTATION OF POULTRY AND OTHER ANIMALS.

    Section 5402(d)(2) of title 39, United States Code, is 
amended--
            (1) in subparagraph (A), by inserting ``, 
        honeybees,'' after ``poultry''; and
            (2) by striking subparagraph (C).

SEC. 10502. SWINE CONTRACTORS.

    (a) Definitions.--Section 2(a) of the Packers and 
Stockyards Act, 1921 (7 U.S.C. 182(a)), is amended by adding at 
the end the following:
            ``(12) Swine contractor.--The term `swine 
        contractor' means any person engaged in the business of 
        obtaining swine under a swine production contract for 
        the purpose of slaughtering the swine or selling the 
        swine for slaughter, if--
                    ``(A) the swine is obtained by the person 
                in commerce; or
                    ``(B) the swine (including products from 
                the swine) obtained by the person is sold or 
                shipped in commerce.
            ``(13) Swine production contract.--The term `swine 
        production contract' means any growout contract or 
        other arrangement under which a swine production 
        contract grower raises and cares for the swine in 
        accordance with the instructions of another person.
            ``(14) Swine production contract grower.--The term 
        `swine production contract grower' means any person 
        engaged in the business of raising and caring for swine 
        in accordance with the instructions of another 
        person.''.
    (b) Swine Contractors.--
            (1) In general.--The Packers and Stockyards Act, 
        1921, is amended by striking ``packer'' each place it 
        appears in sections 202, 203, 204, and 205 (7 U.S.C. 
        192, 193, 194, 195) (other than section 202(c)) and 
        inserting ``packer or swine contractor''.
            (2) Conforming amendments.--
                    (A) Section 202(c) of the Packers and 
                Stockyards Act, 1921 (7 U.S.C. 192(c)), is 
                amended by inserting ``, swine contractor,'' 
                after ``other packer'' each place it appears.
                    (B) Section 308(a) of the Packers and 
                Stockyards Act, 1921 (7 U.S.C. 209(a)), is 
                amended by inserting ``or swine production 
                contract'' after ``poultry growing 
                arrangement''.
                    (C) Sections 401 and 403 of the Packers and 
                Stockyards Act, 1921 (7 U.S.C. 221, 223), are 
                amended by inserting ``any swine contractor, 
                and'' after ``packer,'' each place it appears.

SEC. 10503. RIGHT TO DISCUSS TERMS OF CONTRACT.

    (a) Definitions.--In this section:
            (1) Producer.--The term ``producer'' means any 
        person engaged in the raising and caring for livestock 
        or poultry for slaughter.
            (2) Processor.--The term ``processor'' means any 
        person engaged in the business of obtaining livestock 
        or poultry for the purpose of slaughtering the 
        livestock or poultry.
    (b) No Prohibition of Discussion.--Notwithstanding a 
provision in any contract between a producer and a processor 
for the production of livestock or poultry, or in any marketing 
agreement between a producer and a processor for the sale of 
livestock or poultry for a term of 1 year or more, that 
provides that information contained in the contract is 
confidential, a party to the contract shall not be prohibited 
from discussing any terms or details of the contract with--
            (1) a Federal or State agency;
            (2) a legal adviser to the party;
            (3) a lender to the party;
            (4) an accountant hired by the party;
            (5) an executive or manager of the party;
            (6) a landlord of the party; or
            (7) a member of the immediate family of the party.
    (c) Effect on State Laws.--Subsection (b) does not--
            (1) preempt any State law that addresses 
        confidentiality provisions in contracts for the sale or 
        production of livestock or poultry, except any 
        provision of State law that makes lawful a contract 
        provision that prohibits a party from, or limits a 
        party in, engaging in discussion that subsection (b) 
        requires to be permitted; or
            (2) deprive any State court of jurisdiction under 
        any such State law.
    (d) Applicability.--This section applies to each contract 
described in subsection (b) that is entered into, amended, 
renewed, or extended after the date of enactment of this Act.

SEC. 10504. VETERINARY TRAINING.

    The Secretary of Agriculture may develop a program to 
maintain in all regions of the United States a sufficient 
number of Federal and State veterinarians who are well trained 
in recognition and diagnosis of exotic and endemic animal 
diseases.

SEC. 10505. PSEUDORABIES ERADICATION PROGRAM.

    Section 2506(d) of the Food, Agriculture, Conservation, and 
Trade Act of 1990 (21 U.S.C. 114i(d)) is amended by striking 
``2002'' and inserting ``2007''.

                      Subtitle G--Specialty Crops

SEC. 10601. MARKETING ORDERS FOR CANEBERRIES.

    (a) In General.--Section 8c of the Agricultural Adjustment 
Act (7 U.S.C. 608c), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, is amended--
            (1) in subsection (2)(A), by inserting 
        ``caneberries (including raspberries, blackberries, and 
        loganberries),'' after ``other than pears, olives, 
        grapefruit, cherries,''; and
            (2) in subsection (6)(I), by striking 
        ``tomatoes,,'' and inserting ``tomatoes, caneberries 
        (including raspberries, blackberries, and 
        loganberries),''.
    (b) Conforming Amendment.--Section 8e(a) of the 
Agricultural Adjustment Act (7 U.S.C. 608e-l(a)), reenacted 
with amendments by the Agricultural Marketing Agreement Act of 
1937, is amended in the first sentence by striking ``or 
apples'' and inserting ``apples, or caneberries (including 
raspberries, blackberries, and loganberries)''.

SEC. 10602. AVAILABILITY OF SECTION 32 FUNDS.

    The second undesignated paragraph of section 32 of the Act 
of August 24, 1935 (7 U.S.C. 612c), is amended by striking 
``$300,000,000'' and inserting ``$500,000,000''.

SEC. 10603. PURCHASE OF SPECIALTY CROPS.

    (a) General Purchase Authority.--Of the funds made 
available under section 32 of the Act of August 24, 1935 (7 
U.S.C. 612c), for fiscal year 2002 and each subsequent fiscal 
year, the Secretary of Agriculture shall use not less than 
$200,000,000 each fiscal year to purchase fruits, vegetables, 
and other specialty food crops.
    (b) Purchase Authority.--
            (1) Purchase.--Of the amount specified in 
        subsection (a), the Secretary of Agriculture shall use 
        not less than $50,000,000 each fiscal year for the 
        purchase of fresh fruits and vegetables for 
        distribution to schools and service institutions in 
        accordance with section 6(a) of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1755(a)).
            (2) Servicing agency.--The Secretary of Agriculture 
        shall provide for the Secretary of Defense to serve as 
        the servicing agency for the procurement of the fresh 
        fruits and vegetables under this subsection on the same 
        terms and conditions as provided in the memorandum of 
        agreement entered into between the Agricultural 
        Marketing Service, the Food and Consumer Service, and 
        the Defense Personnel Support Center during August 1995 
        (or any successor memorandum of agreement).
    (c) Definitions.--In this section, the terms ``fruits'', 
``vegetables'', and ``other specialty food crops'' shall have 
the meaning given the terms by the Secretary of Agriculture.

SEC. 10604. PROTECTION FOR PURCHASERS OF FARM PRODUCTS.

    (a) Definition of Effective Financing Statement.--Section 
1324(c)(4) of the Food Security Act of 1985 (7 U.S.C. 
1631(c)(4)) is amended--
            (1) in subparagraph (B), by striking ``signed'' and 
        inserting ``signed, authorized, or otherwise 
        authenticated by the debtor,'';
            (2) by striking subparagraph (C);
            (3) in subparagraph (D)--
                    (A) in clause (iii), by adding ``and'' 
                after the semicolon at the end; and
                    (B) in clause (iv), by striking 
                ``applicable;'' and all that follows and 
                inserting ``applicable, and the name of each 
                county or parish in which the farm products are 
                produced or located;'';
            (4) in subparagraph (E), by striking ``signed'' and 
        inserting ``signed, authorized, or otherwise 
        authenticated by the debtor'';
            (5) in subparagraph (G), by striking ``notice 
        signed'' and inserting ``notice signed, authorized, or 
        otherwise authenticated''; and
            (6) by redesignating subparagraphs (D) through (I) 
        as subparagraphs (C) through (H), respectively.
    (b) Purchases Subject to Security Interests.--Section 
1324(e) of the Food Security Act of 1985 (7 U.S.C. 1631(e)) is 
amended--
            (1) in paragraph (1)(A)(ii)--
                    (A) in subclause (III), by adding ``and'' 
                after the semicolon at the end; and
                    (B) in subclause (IV), by striking ``crop 
                year,'' and all that follows and inserting 
                ``crop year, and the name of each county or 
                parish in which the farm products are produced 
                or located;'';
            (2) in paragraph (1)(A)(iii), by striking 
        ``similarly signed'' and inserting ``similarly signed, 
        authorized, or otherwise authenticated'';
            (3) in paragraph (1)(A)(iv), by striking ``notice 
        signed'' and inserting ``notice signed, authorized, or 
        otherwise authenticated'';
            (4) in paragraph (1)(A)(v), by inserting 
        ``contains'' before ``any payment''; and
            (5) in paragraph (3)--
                    (A) in subparagraph (A), by striking 
                ``subparagraph'' and inserting ``subsection''; 
                and
                    (B) in subparagraph (B), by striking ``; 
                and'' and inserting a period.
    (c) Certain Sales Subject to Security Interest.--Section 
1324(g)(2)(A) of the Food Security Act of 1985 (7 U.S.C. 
1631(g)(2)(A)) is amended--
            (1) in clause (ii)--
                    (A) in subclause (III), by adding ``and'' 
                after the semicolon at the end; and
                    (B) in subclause (IV), by striking ``crop 
                year,'' and all that follows and inserting 
                ``crop year, and the name of each county or 
                parish in which the farm products are produced 
                or located;'';
            (2) in clause (iii), by striking ``similarly 
        signed'' and inserting ``similarly signed, authorized, 
        or otherwise authenticated'';
            (3) in clause (iv), by striking ``notice signed'' 
        and inserting ``notice signed, authorized, or otherwise 
        authenticated''; and
            (4) in clause (v), by inserting ``contains'' before 
        ``any payment''.

SEC. 10605. FARMERS' MARKET PROMOTION PROGRAM.

    (a) In General.--The Farmer-to-Consumer Direct Marketing 
Act of 1976 is amended by inserting after section 5 (7 U.S.C. 
3004) the following:

``SEC. 6. FARMERS' MARKET PROMOTION PROGRAM.

    ``(a) Establishment.--The Secretary shall carry out a 
program, to be known as the `Farmers' Market Promotion Program' 
(referred to in this section as the `Program'), to make grants 
to eligible entities for projects to establish, expand, and 
promote farmers' markets.
    ``(b) Program Purposes.--
            ``(1) In general.--The purposes of the Program 
        are--
                    ``(A) to increase domestic consumption of 
                agricultural commodities by improving and 
                expanding, or assisting in the improvement and 
                expansion of, domestic farmers' markets, 
                roadside stands, community-supported 
                agriculture programs, and other direct 
                producer-to-consumer market opportunities; and
                    ``(B) to develop, or aid in the development 
                of, new farmers' markets, roadside stands, 
                community-supported agriculture programs, and 
                other direct producer-to-consumer 
                infrastructure.
            ``(2) Limitations.--An eligible entity may not use 
        a grant or other assistance provided under the Program 
        for the purchase, construction, or rehabilitation of a 
        building or structure.
    ``(c) Eligible Entities.--An entity shall be eligible to 
receive a grant under the Program if the entity is--
            ``(1) an agricultural cooperative;
            ``(2) a local government;
            ``(3) a nonprofit corporation;
            ``(4) a public benefit corporation;
            ``(5) an economic development corporation;
            ``(6) a regional farmers' market authority; or
            ``(7) such other entity as the Secretary may 
        designate.
    ``(d) Criteria and Guidelines.--The Secretary shall 
establish criteria and guidelines for the submission, 
evaluation, and funding of proposed projects under the Program.
    ``(e) Authorization of Appropriations.--There are 
authorized to be appropriated such sums as are necessary to 
carry out this section for each of fiscal years 2002 through 
2007.''.
    (b) Technical and Conforming Amendments.--
            (1) Survey.--Section 4 of the Farmer-to-Consumer 
        Direct Marketing Act of 1976 (7 U.S.C. 3003) is 
        amended--
                    (A) in the first sentence, by striking ``a 
                continuing'' and inserting ``an annual''; and
                    (B) by striking the second sentence.
            (2) Direct marketing assistance.--Section 5 of the 
        Farmer-to-Consumer Direct Marketing Act of 1976 (7 
        U.S.C. 3004) is amended--
                    (A) in subsection (a)--
                            (i) in the first sentence, by 
                        striking ``Extension Service of the 
                        United States Department of 
                        Agriculture'' and inserting 
                        ``Secretary''; and
                            (ii) in the second sentence--
                                    (I) by striking ``Extension 
                                Service'' and inserting 
                                ``Secretary''; and
                                    (II) by striking ``and on 
                                the basis of which of these two 
                                agencies, or combination 
                                thereof, can best perform these 
                                activities'' and inserting ``, 
                                as determined by the 
                                Secretary'';
                    (B) by redesignating subsection (b) as 
                subsection (c); and
                    (C) by inserting after subsection (a) the 
                following:
    ``(b) Development of Farmers' Markets.--The Secretary 
shall--
            ``(1) work with the Governor of a State, and a 
        State agency designated by the Governor, to develop 
        programs to train managers of farmers' markets;
            ``(2) develop opportunities to share information 
        among managers of farmers' markets;
            ``(3) establish a program to train cooperative 
        extension service employees in the development of 
        direct marketing techniques; and
            ``(4) work with producers to develop farmers' 
        markets.''.

SEC. 10606. NATIONAL ORGANIC CERTIFICATION COST-SHARE PROGRAM.

    (a) In General.--Of funds of the Commodity Credit 
Corporation, the Secretary of Agriculture (acting through the 
Agricultural Marketing Service) shall use $5,000,000 for fiscal 
year 2002, to remain available until expended, to establish a 
national organic certification cost-share program to assist 
producers and handlers of agricultural products in obtaining 
certification under the national organic production program 
established under the Organic Foods Production Act of 1990 (7 
U.S.C. 6501 et seq.).
    (b) Federal Share.--
            (1) In general.--Subject to paragraph (2), the 
        Secretary shall pay under this section not more than 75 
        percent of the costs incurred by a producer or handler 
        in obtaining certification under the national organic 
        production program, as certified to and approved by the 
        Secretary.
            (2) Maximum amount.--The maximum amount of a 
        payment made to a producer or handler under this 
        section shall be $500.

SEC. 10607. EXEMPTION OF CERTIFIED ORGANIC PRODUCTS FROM ASSESSMENTS.

    (a) In General.--Section 501 of the Federal Agriculture 
Improvement and Reform Act of 1996 (7 U.S.C. 7401) is amended 
by adding at the end the following:
    ``(e) Exemption of Certified Organic Products From 
Assessments.--
            ``(1) In general.--Notwithstanding any provision of 
        a commodity promotion law, a person that produces and 
        markets solely 100 percent organic products, and that 
        does not produce any conventional or nonorganic 
        products, shall be exempt from the payment of an 
        assessment under a commodity promotion law with respect 
        to any agricultural commodity that is produced on a 
        certified organic farm (as defined in section 2103 of 
        the Organic Foods Production Act of 1990 (7 U.S.C. 
        6502)).
            ``(2) Regulations.--Not later than 1 year after the 
        date of enactment of this subsection, the Secretary 
        shall promulgate regulations concerning eligibility and 
        compliance for an exemption under paragraph (1).''.
    (b) Technical Amendments.--Section 501(a) of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 
7401(a)) is amended--
            (1) in paragraph (17), by striking ``or'';
            (2) in paragraph (18), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(19) any other provision of law enacted after 
        April 4, 1996, that provides for the establishment and 
        operation of a promotion program described in the first 
        sentence.''.

SEC. 10608. CRANBERRY ACREAGE RESERVE PROGRAM.

    (a) Definitions.--In this section:
            (1) Eligible area.--The term ``eligible area'' 
        means a wetland or buffer strip adjacent to a wetland 
        that, as determined by the Secretary--
                    (A)(i) is used, and has a history of being 
                used, for the cultivation of cranberries; or
                    (ii) is an integral component of a 
                cranberry-growing operation;
                    (B) is located in an environmentally 
                sensitive area.
            (2) Secretary.--The term ``Secretary'' means the 
        Secretary of Agriculture.
    (b) Program.--The Secretary shall establish a program to 
purchase permanent easements in eligible areas from willing 
sellers.
    (c) Purchase Price.--The Secretary shall ensure, to the 
maximum extent practicable, that each easement purchased under 
this section is for an amount that appropriately reflects the 
range of values for agricultural and nonagricultural land in 
the region in which the eligible area subject to the easement 
is located (including whether that land is located in 1 or more 
environmentally sensitive areas, as determined by the 
Secretary).
    (d) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $10,000,000.

                       Subtitle H--Administration

SEC. 10701. INITIAL RATE OF BASIC PAY FOR EMPLOYEES OF COUNTY 
                    COMMITTEES.

    Section 5334 of title 5, United States Code, is amended by 
striking subsection (e) and inserting the following:
    ``(e) An employee of a county committee established 
pursuant to section 8(b) of the Soil Conservation and Domestic 
Allotment Act (16 U.S.C. 590h(b)) may, on appointment to a 
position subject to this subchapter, have the initial rate of 
basic pay of the employee fixed at--
            ``(1) the lowest rate of the higher grade that 
        exceeds the rate of basic pay of the employee with the 
        county committee by not less than 2 step-increases of 
        the grade from which the employee was promoted, if the 
        Federal Civil Service position under this subchapter is 
        at a higher grade than the last grade the employee had 
        while an employee of the county committee;
            ``(2) the same step of the grade as the employee 
        last held during service with the county committee, if 
        the Federal Civil Service position under this 
        subchapter is at the same grade as the last grade the 
        employee had while an employee of the county committee; 
        or
            ``(3) the lowest step of the Federal grade for 
        which the rate of basic pay is equal to or greater than 
        the highest previous rate of pay of the employee, if 
        the Federal Civil Service position under this 
        subchapter is at a lower grade than the last grade the 
        employee had while an employee of the county 
        committee.''.

SEC. 10702. COMMODITY FUTURES TRADING COMMISSION PAY COMPARABILITY.

    (a) Appointment and Compensation of Employees of the 
Commission.--Section 2(a) of the Commodity Exchange Act (7 
U.S.C. 2(a)) is amended--
            (1) by redesignating paragraphs (7) through (11) as 
        paragraphs (8) through (12), respectively; and
            (2) by inserting after paragraph (6) the following:
            ``(7) Appointment and compensation.--
                    ``(A) In general.--The Commission may 
                appoint and fix the compensation of such 
                officers, attorneys, economists, examiners, and 
                other employees as may be necessary for 
                carrying out the functions of the Commission 
                under this Act.
                    ``(B) Rates of pay.--Rates of basic pay for 
                all employees of the Commission may be set and 
                adjusted by the Commission without regard to 
                chapter 51 or subchapter III of chapter 53 of 
                title 5, United States Code.
                    ``(C) Comparability.--
                            ``(i) In general.--The Commission 
                        may provide additional compensation and 
                        benefits to employees of the Commission 
                        if the same type of compensation or 
                        benefits are provided by any agency 
                        referred to in section 1206(a) of the 
                        Financial Institutions Reform, 
                        Recovery, and Enforcement Act of 1989 
                        (12 U.S.C. 1833b(a)) or could be 
                        provided by such an agency under 
                        applicable provisions of law (including 
                        rules and regulations).
                            ``(ii) Consultation.--In setting 
                        and adjusting the total amount of 
                        compensation and benefits for 
                        employees, the Commission shall consult 
                        with, and seek to maintain 
                        comparability with, the agencies 
                        referred to in section 1206(a) of the 
                        Financial Institutions Reform, 
                        Recovery, and Enforcement Act of 1989 
                        (12 U.S.C. 1833b(a)).''.
    (b) Reporting of Information by the Commission.--Section 
1206 of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 1833b) is amended--
            (1) by striking ``The Federal'' and inserting the 
        following:
    ``(a) In General.--The Federal''; and
            (2) by adding at the end the following:
    ``(b) Commodity Futures Trading Commission.--In 
establishing and adjusting schedules of compensation and 
benefits for employees of the Commodity Futures Trading 
Commission under applicable provisions of law, the Commission 
shall--
            ``(1) inform the heads of the agencies referred to 
        in subsection (a) and Congress of such compensation and 
        benefits; and
            ``(2) seek to maintain comparability with those 
        agencies regarding compensation and benefits.''.
    (c) Conforming Amendments.--
            (1) Section 3132(a)(1) of title 5, United States 
        Code, is amended--
                    (A) in subparagraph (C), by striking ``or'' 
                at the end;
                    (B) in subparagraph (D), by adding ``or'' 
                at the end; and
                    (C) by adding at the end the following:
                    ``(E) the Commodity Futures Trading 
                Commission;''.
            (2) Section 5316 of title 5, United States Code, is 
        amended--
                    (A) by striking ``General Counsel, 
                Commodity Futures Trading Commission.''; and
                    (B) by striking ``Executive Director, 
                Commodity Futures Trading Commission.''.
            (3) Section 5373(a) of title 5, United States Code, 
        is amended--
                    (A) in paragraph (2), by striking ``or'' at 
                the end;
                    (B) in paragraph (3), by striking the 
                period at the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(4) section 2(a)(7) of the Commodity Exchange Act 
        (7 U.S.C. 2(a)(7)).''.

SEC. 10703. OVERTIME AND HOLIDAY PAY.

    (a) In General.--The Secretary of Agriculture may--
            (1) pay employees of the Department of Agriculture 
        employed in an establishment subject to the Federal 
        Meat Inspection Act (21 U.S.C. 601 et seq.) or the 
        Poultry Products Inspection Act (21 U.S.C. 451 et seq.) 
        for all overtime and holiday work performed at the 
        establishment at rates determined by the Secretary, 
        subject to applicable law relating to minimum wages and 
        maximum hours; and
            (2) accept from the establishment reimbursement for 
        any sums paid by the Secretary for the overtime and 
        holiday work, at rates determined under paragraph (1).
    (b) Availability.--Sums received by the Secretary under 
this section shall remain available until expended without 
further appropriation and without fiscal year limitation, to 
carry out subsection (a).
    (c) Conforming Amendments.--
            (1) Section 25 of the Poultry Products Inspection 
        Act (21 U.S.C. 468) is amended by striking ``except 
        that the cost'' and all that follows and inserting 
        ``except the cost of overtime and holiday pay paid 
        pursuant to the section 10703 of the Farm Security and 
        Rural Investment Act of 2002.''.
            (2) The Act of June 5, 1948 (21 U.S.C. 695), is 
        amended by striking ``overtime'' and all that follows 
        and inserting ``overtime and holiday pay paid pursuant 
        to section 10703 of the Farm Security and Rural 
        Investment Act of 2002.''.
            (3) The matter under the heading ``bureau of animal 
        industry'' of the Act of July 24, 1919, is amended by 
        striking the next to the last paragraph (7 U.S.C. 394).
            (4) Section 5549 of title 5, United States Code is 
        amended by striking paragraph (1) and inserting the 
        following:
            ``(1) section 10703 of the Farm Security and Rural 
        Investment Act of 2002;''.

SEC. 10704. ASSISTANT SECRETARY OF AGRICULTURE FOR CIVIL RIGHTS.

    (a) In General.--Section 218 of the Department of 
Agriculture Reorganization Act of 1994 (7 U.S.C. 6918) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'' 
                at the end;
                    (B) in paragraph (2), by striking the 
                period at the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) Assistant Secretary of Agriculture for Civil 
        Rights.''; and
            (2) by striking subsections (d) and (e) and 
        inserting the following:
    ``(d) Duties of Assistant Secretary of Agriculture for 
Civil Rights.--The Secretary may delegate to the Assistant 
Secretary for Civil Rights responsibility for--
            ``(1) ensuring compliance with all civil rights and 
        related laws by all agencies and under all programs of 
        the Department;
            ``(2) coordinating administration of civil rights 
        laws (including regulations) within the Department for 
        employees of, and participants in, programs of the 
        Department; and
            ``(3) ensuring that necessary and appropriate civil 
        rights components are properly incorporated into all 
        strategic planning initiatives of the Department and 
        agencies of the Department.''.
    (b) Compensation.--Section 5315 of title 5, United States 
Code, is amended by striking ``Assistant Secretaries of 
Agriculture (2)'' and inserting ``Assistant Secretaries of 
Agriculture (3)''.
    (c) Conforming Amendments.--Section 296(b) of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
7014(b)) is amended--
            (1) in paragraph (3), by striking ``or'' at the 
        end;
            (2) in paragraph (4), by striking the period at the 
        end and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(5) the authority of the Secretary to establish 
        within the Department the position of Assistant 
        Secretary of Agriculture for Civil Rights, and delegate 
        duties to the Assistant Secretary, under section 
        218.''.

SEC. 10705. OPERATION OF GRADUATE SCHOOL OF DEPARTMENT OF AGRICULTURE.

    (a) Audits of Records.--Section 921 of the Federal 
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 2279b) 
is amended by adding at the end the following:
    ``(k) Audits of Records.--The financial records of the 
Graduate School (including records relating to contracts or 
agreements entered into under subsection (c)) shall be made 
available to the Comptroller General for purposes of conducting 
an audit.''.
    (b) Conforming Repeal.--Section 1669 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5922) is repealed.
    (c) Effective Date.--The amendments made by this section 
take effect on October 1, 2002.

SEC. 10706. IMPLEMENTATION FUNDING AND INFORMATION MANAGEMENT.

    (a) Additional Funds for Administrative Costs.--
            (1) In general.--The Secretary of Agriculture, 
        acting through the Farm Service Agency, may use not 
        more than $55,000,000 of funds of the Commodity Credit 
        Corporation to cover administrative costs associated 
        with the implementation of title I and the amendments 
        made by that title.
            (2) Availability.--The funds referred to in 
        paragraph (1) shall remain available to the Secretary 
        until expended.
            (3) Set-aside.--Of the amount specified in 
        paragraph (1), the Secretary shall use not less than 
        $5,000,000, but not more than $8,000,000, to carry out 
        subsection (b).
    (b) Information Management.--
            (1) Development of system.--The Secretary of 
        Agriculture shall develop a comprehensive information 
        management system, using appropriate technologies, to 
        be used in implementing the programs administered by 
        the Federal Crop Insurance Corporation and the Farm 
        Service Agency.
            (2) Elements.--The information management system 
        developed under this subsection shall be designed to--
                    (A) improve access by agricultural 
                producers to programs described in paragraph 
                (1);
                    (B) improve and protect the integrity of 
                the information collected;
                    (C) meet the needs of the agencies that 
                require the data in the administration of their 
                programs;
                    (D) improve the timeliness of the 
                collection of the information;
                    (E) contribute to the elimination of 
                duplication of information collection;
                    (F) lower the overall cost to the 
                Department of Agriculture for information 
                collection; and
                    (G) achieve such other goals as the 
                Secretary considers appropriate.
            (3) Reconciliation of current information 
        management.--The Secretary shall ensure that all 
        current information of the Federal Crop Insurance 
        Corporation and the Farm Service Agency is combined, 
        reconciled, redefined, and reformatted in such a manner 
        so that the agencies can use the common information 
        management system developed under this subsection.
            (4) Assistance for development of system.--The 
        Secretary shall enter into an agreement or contract 
        with a non-Federal entity to assist the Secretary in 
        the development of the information management system. 
        The Secretary shall give preference in entering into an 
        agreement or contract to entities that have--
                    (A) prior experience with the information 
                and management systems of the Federal Crop 
                Insurance Corporation; and
                    (B) collaborated with the Corporation in 
                the development of the identification 
                procedures required by section 515(f) of the 
                Federal Crop Insurance Act (7 U.S.C. 1515(f)).
            (5) Use.--The information collected using the 
        information management system developed under this 
        subsection may be made available to--
                    (A) any Federal agency that requires the 
                information to carry out the functions of the 
                agency; and
                    (B) any approved insurance provider, as 
                defined in section 502(b) of the Federal Crop 
                Insurance Act (7 U.S.C. 1502(b)), with respect 
                to producers insured by the approved insurance 
                provider.
            (6) Relation to other activities.--This subsection 
        shall not interfere with, or delay, existing agreements 
        or requests for proposals of the Federal Crop Insurance 
        Corporation or the Farm Service Agency regarding the 
        information management activities known as data mining 
        or data warehousing.
    (c) Authorization of Appropriations.--In addition to 
amounts made available under subsection (a)(3), there are 
authorized to be appropriated such sums as are necessary to 
carry out subsection (b) for each of fiscal years 2003 through 
2008.

SEC. 10707. OUTREACH AND ASSISTANCE FOR SOCIALLY DISADVANTAGED FARMERS 
                    AND RANCHERS.

    (a) Definitions.--Section 2501(e) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(e)) is 
amended by adding at the end the following:
            ``(4) Department.--The term `Department' means the 
        Department of Agriculture.
            ``(5) Eligible entity.--The term `eligible entity' 
        means any of the following:
                    ``(A) Any community-based organization, 
                network, or coalition of community-based 
                organizations that--
                            ``(i) has demonstrated experience 
                        in providing agricultural education or 
                        other agriculturally related services 
                        to socially disadvantaged farmers and 
                        ranchers;
                            ``(ii) has provided to the 
                        Secretary documentary evidence of work 
                        with socially disadvantaged farmers and 
                        ranchers during the 2-year period 
                        preceding the submission of an 
                        application for assistance under 
                        subsection (a); and
                            ``(iii) does not engage in 
                        activities prohibited under section 
                        501(c)(3) of the Internal Revenue Code 
                        of 1986.
                    ``(B) An 1890 institution or 1994 
                institution (as defined in section 2 of the 
                Agricultural Research, Extension, and Education 
                Reform Act of 1998 (7 U.S.C. 7601)), including 
                West Virginia State College.
                    ``(C) An Indian tribal community college or 
                an Alaska Native cooperative college.
                    ``(D) An Hispanic-serving institution (as 
                defined in section 1404 of the National 
                Agricultural Research, Extension, and Teaching 
                Policy Act of 1977 (7 U.S.C. 3103)).
                    ``(E) Any other institution of higher 
                education (as defined in section 101 of the 
                Higher Education Act of 1965 (20 U.S.C. 1001)) 
                that has demonstrated experience in providing 
                agriculture education or other agriculturally 
                related services to socially disadvantaged 
                farmers and ranchers in a region.
                    ``(F) An Indian tribe (as defined in 
                section 4 of the Indian Self-Determination and 
                Education Assistance Act (25 U.S.C. 450b)) or a 
                national tribal organization that has 
                demonstrated experience in providing 
                agriculture education or other agriculturally 
                related services to socially disadvantaged 
                farmers and ranchers in a region.
                    ``(G) An organization or institution that 
                received funding under subsection (a) before 
                January 1, 1996, but only with respect to 
                projects that the Secretary considers are 
                similar to projects previously carried out by 
                the organization or institution under such 
                subsection.
            ``(6) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture.''.
    (b) Outreach and Assistance.--Section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279) is amended by striking subsection (a) and inserting the 
following:
    ``(a) Outreach and Assistance.--
            ``(1) Program.--The Secretary of Agriculture shall 
        carry out an outreach and technical assistance program 
        to encourage and assist socially disadvantaged farmers 
        and ranchers--
                    ``(A) in owning and operating farms and 
                ranches; and
                    ``(B) in participating equitably in the 
                full range of agricultural programs offered by 
                the Department.
            ``(2) Requirements.--The outreach and technical 
        assistance program under paragraph (1) shall--
                    ``(A) enhance coordination of the outreach, 
                technical assistance, and education efforts 
                authorized under various agriculture programs; 
                and
                    ``(B) include information on, and 
                assistance with--
                            ``(i) commodity, conservation, 
                        credit, rural, and business development 
                        programs;
                            ``(ii) application and bidding 
                        procedures;
                            ``(iii) farm and risk management;
                            ``(iv) marketing; and
                            ``(v) other activities essential to 
                        participation in agricultural and other 
                        programs of the Department.
            ``(3) Grants and contracts.--
                    ``(A) In general.--The Secretary may make 
                grants to, and enter into contracts and other 
                agreements with, an eligible entity to provide 
                information and technical assistance under this 
                subsection.
                    ``(B) Relationship to other law.--The 
                authority to carry out this section shall be in 
                addition to any other authority provided in 
                this or any other Act.
                    ``(C) Other projects.--Notwithstanding 
                paragraph (1), the Secretary may make grants 
                to, and enter into contracts and other 
                agreements with, an organization or institution 
                that received funding under this section before 
                January 1, 1996, to carry out a project that is 
                similar to a project for which the organization 
                or institution received such funding.
            ``(4) Funding.--
                    ``(A) Authorization of appropriations.--
                There is authorized to be appropriated to carry 
                out this subsection $25,000,000 for each of 
                fiscal years 2002 through 2007.
                    ``(B) Interagency funding.--In addition to 
                funds authorized to be appropriated under 
                subparagraph (A), any agency of the Department 
                may participate in any grant, contract, or 
                agreement entered into under this subsection by 
                contributing funds, if the agency determined 
                that the objectives of the grant, contract, or 
                agreement will further the authorized programs 
                of the contributing agency.''.
    (c) Conforming Amendments.--Section 2501 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
2279) is amended--
            (1) in subsection (d)(1), by striking ``of 
        Agriculture'' after ``Department''; and
            (2) in subsection (g)(1), by striking ``of 
        Agriculture'' after ``Department''.

SEC. 10708. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY DISADVANTAGED 
                    FARMERS AND RANCHERS; PUBLIC DISCLOSURE 
                    REQUIREMENTS FOR COUNTY COMMITTEE ELECTIONS.

    (a) Transparency and Accountability for Socially 
Disadvantaged Farmers and Ranchers.--The Food, Agriculture, 
Conservation, and Trade Act of 1990 is amended by inserting 
after section 2501 (7 U.S.C. 2279) the following:

``SEC. 2501A. TRANSPARENCY AND ACCOUNTABILITY FOR SOCIALLY 
                    DISADVANTAGED FARMERS AND RANCHERS.

    ``(a) Purpose.--The purpose of this section is to ensure 
compilation and public disclosure of data to assess and hold 
the Department of Agriculture accountable for the 
nondiscriminatory participation of socially disadvantaged 
farmers and ranchers in programs of the Department.
    ``(b) Definition of Socially Disadvantaged Farmer or 
Rancher.--In this section, the term `socially disadvantaged 
farmer or rancher' has the meaning given the term in section 
355(e) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2003(e)).
    ``(c) Compilation of Program Participation Data.--
            ``(1) Annual requirement.--For each county and 
        State in the United States, the Secretary shall compute 
        annually the participation rate of socially 
        disadvantaged farmers and ranchers as a percentage of 
        the total participation of all farmers and ranchers for 
        each program of the Department of Agriculture 
        established for farmers or ranchers.
            ``(2) Reporting participation.--In reporting the 
        rates of participation under paragraph (1), the 
        Secretary shall report the participation rate of 
        socially disadvantaged farmers and ranchers according 
        to race, ethnicity, and gender.''.
    (b) Public Disclosure Requirements for County Committee 
Elections.--Section 8(b)(5) of the Soil Conservation and 
Domestic Allotment Act (16 U.S.C. 590h(b)(5)) is amended by 
striking subparagraph (B) and inserting the following:
                    ``(B) Establishment and elections for 
                county, area, or local committees.--
                            ``(i) Establishment.--
                                    ``(I) In general.--In each 
                                county or area in which 
                                activities are carried out 
                                under this section, the 
                                Secretary shall establish a 
                                county or area committee.
                                    ``(II) Local administrative 
                                areas.--The Secretary may 
                                designate local administrative 
                                areas within a county or a 
                                larger area under the 
                                jurisdiction of a committee 
                                established under subclause 
                                (I).
                            ``(ii) Composition of county, area, 
                        or local committees.--A committee 
                        established under clause (i) shall 
                        consist of not fewer than 3 nor more 
                        than 5 members that--
                                    ``(I) are fairly 
                                representative of the 
                                agricultural producers within 
                                the area covered by the county, 
                                area, or local committee; and
                                    ``(II) are elected by the 
                                agricultural producers that 
                                participate or cooperate in 
                                programs administered within 
                                the area under the jurisdiction 
                                of the county, area, or local 
                                committee.
                            ``(iii) Elections.--
                                    ``(I) In general.--Subject 
                                to subclauses (II) through (V), 
                                the Secretary shall establish 
                                procedures for nominations and 
                                elections to county, area, or 
                                local committees.
                                    ``(II) Nondiscrimination 
                                statement.--Each solicitation 
                                of nominations for, and notice 
                                of elections of, a county, 
                                area, or local committee shall 
                                include the nondiscrimination 
                                statement used by the 
                                Secretary.
                                    ``(III) Nominations.--
                                            ``(aa) 
                                        Eligibility.--To be 
                                        eligible for nomination 
                                        and election to the 
                                        applicable county, 
                                        area, or local 
                                        committee, as 
                                        determined by the 
                                        Secretary, an 
                                        agricultural producer 
                                        shall be located within 
                                        the area under the 
                                        jurisdiction of a 
                                        county, area, or local 
                                        committee, and 
                                        participate or 
                                        cooperate in programs 
                                        administered within 
                                        that area.
                                            ``(bb) Outreach.--
                                        In addition to such 
                                        nominating procedures 
                                        as the Secretary may 
                                        prescribe, the 
                                        Secretary shall solicit 
                                        and accept nominations 
                                        from organizations 
                                        representing the 
                                        interests of socially 
                                        disadvantaged groups 
                                        (as defined in section 
                                        355(e)(1) of the 
                                        Consolidated Farm and 
                                        Rural Development Act 
                                        (7 U.S.C. 2003(e)(1)).
                                    ``(IV) Opening of 
                                ballots.--
                                            ``(aa) Public 
                                        notice.--At least 10 
                                        days before the date on 
                                        which ballots are to be 
                                        opened and counted, a 
                                        county, area, or local 
                                        committee shall 
                                        announce the date, 
                                        time, and place at 
                                        which election ballots 
                                        will be opened and 
                                        counted.
                                            ``(bb) Opening of 
                                        ballots.--Election 
                                        ballots shall not be 
                                        opened until the date 
                                        and time announced 
                                        under item (aa).
                                            ``(cc) 
                                        Observation.--Any 
                                        person may observe the 
                                        opening and counting of 
                                        the election ballots.
                                    ``(V) Report of election.--
                                Not later than 20 days after 
                                the date on which an election 
                                is held, a county, area, or 
                                local committee shall file an 
                                election report with the 
                                Secretary and the State office 
                                of the Farm Service Agency that 
                                includes--
                                            ``(aa) the number 
                                        of eligible voters in 
                                        the area covered by the 
                                        county, area, or local 
                                        committee;
                                            ``(bb) the number 
                                        of ballots cast in the 
                                        election by eligible 
                                        voters (including the 
                                        percentage of eligible 
                                        voters that cast 
                                        ballots);
                                            ``(cc) the number 
                                        of ballots disqualified 
                                        in the election;
                                            ``(dd) the 
                                        percentage that the 
                                        number of ballots 
                                        disqualified is of the 
                                        number of ballots 
                                        received;
                                            ``(ee) the number 
                                        of nominees for each 
                                        seat up for election;
                                            ``(ff) the race, 
                                        ethnicity, and gender 
                                        of each nominee, as 
                                        provided through the 
                                        voluntary self-
                                        identification of each 
                                        nominee; and
                                            ``(gg) the final 
                                        election results 
                                        (including the number 
                                        of ballots received by 
                                        each nominee).
                                    ``(VI) National report.--
                                Not later than 90 days after 
                                the date on which the first 
                                election of a county, area, or 
                                local committee that occurs 
                                after the date of enactment of 
                                the Farm Security and Rural 
                                Investment Act of 2002 is held, 
                                the Secretary shall complete a 
                                report that consolidates all 
                                the election data reported to 
                                the Secretary under subclause 
                                (V).
                                    ``(VII) Election reform.--
                                            ``(aa) Analysis.--
                                        If determined necessary 
                                        by the Secretary after 
                                        analyzing the data 
                                        contained in the report 
                                        under subclause (VI), 
                                        the Secretary shall 
                                        promulgate and publish 
                                        in the Federal Register 
                                        proposed uniform 
                                        guidelines for 
                                        conducting elections 
                                        for members and 
                                        alternate members of 
                                        county, area, and local 
                                        committees not later 
                                        than 1 year after the 
                                        date of completion of 
                                        the report.
                                            ``(bb) Inclusion.--
                                        The procedures 
                                        promulgated by the 
                                        Secretary under item 
                                        (aa) shall ensure fair 
                                        representation of 
                                        socially disadvantaged 
                                        groups described in 
                                        subclause (III)(bb) in 
                                        an area covered by the 
                                        county, area, or local 
                                        committee, in cases in 
                                        which those groups are 
                                        underrepresented on the 
                                        county, area, or local 
                                        committee for that 
                                        area.
                                            ``(cc) Methods of 
                                        inclusion.--
                                        Notwithstanding clause 
                                        (ii), the Secretary may 
                                        ensure inclusion of 
                                        socially disadvantaged 
                                        farmers and ranchers 
                                        through provisions 
                                        allowing for 
                                        appointment of 1 
                                        additional voting 
                                        member to a county, 
                                        area, or local 
                                        committee or through 
                                        other methods.
                            ``(iv) Term of office.--The term of 
                        office for a member of a county, area, 
                        or local committee shall not exceed 3 
                        years.
                            ``(v) Public availability and 
                        report to congress.--
                                    ``(I) Public disclosure.--
                                The Secretary shall maintain 
                                and make readily available to 
                                the public, via website and 
                                otherwise in electronic and 
                                paper form, all data required 
                                to be collected and computed 
                                under section 2501A(c) of the 
                                Food, Agriculture, 
                                Conservation, and Trade Act of 
                                1990 and clause (iii)(V) 
                                collected annually since the 
                                most recent Census of 
                                Agriculture.
                                    ``(II) Report to 
                                congress.--After each Census of 
                                Agriculture, the Secretary 
                                shall report to Congress the 
                                rate of loss or gain in 
                                participation by each socially 
                                disadvantaged group, by race, 
                                ethnicity, and gender, since 
                                the previous Census.''.

                     Subtitle I--General Provisions

SEC. 10801. COTTON CLASSIFICATION SERVICES.

    (a) Extension of Authority to Provide Services.--The first 
sentence of section 3a of the Act of March 3, 1927 (commonly 
known as the ``Cotton Statistics and Estimates Act''; 7 U.S.C. 
473a), is amended by striking ``2002'' and inserting ``2007''.
    (b) Repeal of Obsolete Effective Date Provisions.--
            (1) 1984 amendment.--The first section of Public 
        Law 98-403 (98 Stat. 1479) is amended by striking ``, 
        effective for the period beginning October 1, 1984, and 
        ending September 30, 1988,''.
            (2) 1987 amendments.--Section 2 of the Uniform 
        Cotton Classing Fees Act of 1987 (Public Law 100-108; 
        101 Stat. 728) is amended by striking ``Effective for 
        the period beginning on the date of enactment of this 
        Act and ending September 30, 1992, section'' and 
        inserting ``Section''.
            (3) 1991 amendments.--Section 120 of the Food, 
        Agriculture, Conservation, and Trade Act Amendments of 
        1991 (Public Law 102-237; 105 Stat. 1842) is amended by 
        striking subsection (e).

SEC. 10802. PROGRAM OF PUBLIC EDUCATION REGARDING USE OF BIOTECHNOLOGY 
                    IN PRODUCING FOOD FOR HUMAN CONSUMPTION.

    (a) Public Information Campaign.--Not later than 1 year 
after the date of enactment of this Act, the Secretary of 
Agriculture shall develop and implement a program to 
communicate with the public regarding the use of biotechnology 
in producing food for human consumption. The information 
provided under the program shall include the following:
            (1) Science-based evidence on the safety of foods 
        produced with biotechnology.
            (2) Scientific data on the human outcomes of the 
        use of biotechnology to produce food for human 
        consumption.
    (b) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out this 
section for each of fiscal years 2002 through 2007.

SEC. 10803. CHINO DAIRY PRESERVE PROJECT.

    Notwithstanding any other provision of law, the Secretary 
of Agriculture, acting through the Natural Resources 
Conservation Service, may provide financial and technical 
assistance to the Chino Dairy Preserve Project, San Bernadino 
County, California.

SEC. 10804. GRAZINGLANDS RESEARCH LABORATORY.

    Notwithstanding any other provision of law, before December 
31, 2007, the Federal land and facilities at El Reno, Oklahoma, 
currently administered by the Secretary of Agriculture as the 
Grazinglands Research Laboratory shall not, without specific 
authorization by Congress--
            (1) be declared to be excess or surplus under the 
        Federal Property and Administrative Services Act of 
        1949 (40 U.S.C. 471 et seq.); or
            (2) be conveyed or otherwise transferred in whole 
        or in part.

SEC. 10805. FOOD AND AGRICULTURAL POLICY RESEARCH INSTITUTE.

    (a) Authority.--The Secretary of Agriculture may award 
grants to the Food and Agricultural Policy Research Institute 
for the purpose of funding prospective, independent research on 
the effects of alternative domestic, foreign, and trade 
policies, on the agricultural sector, including research on the 
effects of those policies on--
            (1) commodity prices for--
                    (A) feed; and
                    (B) food grains, oilseeds, cotton, 
                livestock, and products thereof;
            (2) supply and demand conditions for similar 
        products;
            (3) costs to the Federal Government;
            (4) farm income;
            (5) food costs;
            (6) the volume and value of trade in agricultural 
        commodities; and
            (7) exporter and importer supply, demand, and 
        trade.
    (b) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $6,000,000 for 
each of fiscal years 2003 through 2007.

SEC. 10806. MARKET NAMES FOR CATFISH AND GINSENG.

    (a) Catfish Labeling.--
            (1) In general.--Notwithstanding any other 
        provision of law, for purposes of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 301 et seq.)--
                    (A) the term ``catfish'' may only be 
                considered to be a common or usual name (or 
                part thereof) for fish classified within the 
                family Ictaluridae; and
                    (B) only labeling or advertising for fish 
                classified within that family may include the 
                term ``catfish''.
            (2) Amendment.--Section 403 of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 343) is amended by 
        adding at the end the following:
    ``(t) If it purports to be or is represented as catfish, 
unless it is fish classified within the family Ictaluridae.''.
    (b) Ginseng Labeling.--
            (1) In general.--Notwithstanding any other 
        provision of law, for purposes of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 301 et seq.)--
                    (A) the term ``ginseng'' may only be 
                considered to be a common or usual name (or 
                part thereof) for any herb or herbal ingredient 
                derived from a plant classified within the 
                genus Panax; and
                    (B) only labeling or advertising for herbs 
                or herbal ingredients classified within that 
                genus may include the term ``ginseng''.
            (2) Amendment.--Section 403 of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 343) (as amended by 
        subsection (a)(2)) is amended by adding at the end the 
        following:
    ``(u) If it purports to be or is represented as ginseng, 
unless it is an herb or herbal ingredient derived from a plant 
classified within the genus Panax.''.

SEC. 10807. FOOD SAFETY COMMISSION.

    (a) Establishment.--
            (1) In general.--There is established a commission 
        to be known as the ``Food Safety Commission'' (referred 
        to in this section as the ``Commission'').
            (2) Membership.--
                    (A) Composition.--The Commission shall be 
                composed of 15 members (including a 
                Chairperson, appointed by the President.
                    (B) Eligibility.--
                            (i) In general.--Members of the 
                        Commission--
                                    (I) shall have specialized 
                                training or significant 
                                experience in matters under the 
                                jurisdiction of the Commission; 
                                and
                                    (II) shall represent, at a 
                                minimum--
                                            (aa) consumers;
                                            (bb) food 
                                        scientists;
                                            (cc) the food 
                                        industry; and
                                            (dd) health 
                                        professionals.
                            (ii) Federal employees.--Not more 
                        than 3 members of the Commission may be 
                        Federal employees.
                    (C) Date of appointments.--The appointment 
                of the members of the Commission shall be made 
                as soon as practicable after the date on which 
                funds authorized to be appropriated under 
                subsection (e)(1) are made available.
                    (D) Vacancies.--A vacancy on the 
                Commission--
                            (i) shall not affect the powers of 
                        the Commission; and
                            (ii) shall be filled--
                                    (I) not later than 60 days 
                                after the date on which the 
                                vacancy occurs; and
                                    (II) in the same manner as 
                                the original appointment was 
                                made.
            (3) Meetings.--
                    (A) Initial meeting.--The initial meeting 
                of the Commission shall be conducted not later 
                than 30 days after the date of appointment of 
                the final member of the Commission.
                    (B) Other meetings.--The Commission shall 
                meet at the call of the Chairperson.
            (4) Quorum; standing rules.--
                    (A) Quorum.--A majority of the members of 
                the Commission shall constitute a quorum to 
                conduct business.
                    (B) Standing rules.--At the first meeting 
                of the Commission, the Commission shall adopt 
                standing rules of the Commission to guide the 
                conduct of business and decisionmaking of the 
                Commission.
    (b) Duties.--
            (1) Recommendations.--The Commission shall make 
        specific recommendations to enhance the food safety 
        system of the United States, including a description of 
        how each recommendation would improve food safety.
            (2) Components.--Recommendations made by the 
        Commission under paragraph (1) shall address all food 
        available commercially in the United States.
            (3) Report.--Not later than 1 year after the date 
        on which the Commission first meets, the Commission 
        shall submit to the President and Congress--
                    (A) the findings, conclusions, and 
                recommendations of the Commission, including a 
                description of how each recommendation would 
                improve food safety;
                    (B) a summary of any other material used by 
                the Commission in the preparation of the report 
                under this paragraph; and
                    (C) if requested by 1 or more members of 
                the Commission, a statement of the minority 
                views of the Commission.
    (c) Powers of the Commission.--
            (1) Hearings.--The Commission may, for the purpose 
        of carrying out this section, hold such hearings, meet 
        and act at such times and places, take such testimony, 
        and receive such evidence as the Commission considers 
        advisable.
            (2) Information from federal agencies.--
                    (A) In general.--The Commission may secure 
                directly, from any Federal agency, such 
                information as the Commission considers 
                necessary to carry out this section.
                    (B) Provision of information.--
                            (i) In general.--Subject to 
                        subparagraph (C), on the request of the 
                        Commission, the head of a Federal 
                        agency described in subparagraph (A) 
                        may furnish information requested by 
                        the Commission to the Commission.
                            (ii) Administration.--The 
                        furnishing of information by a Federal 
                        agency to the Commission shall not be 
                        considered a waiver of any exemption 
                        available to the agency under section 
                        552 of title 5, United States Code.
                    (C) Information to be kept confidential.--
                            (i) In general.--For purposes of 
                        section 1905 of title 18, United States 
                        Code--
                                    (I) the Commission shall be 
                                considered an agency of the 
                                Federal Government; and
                                    (II) any individual 
                                employed by an individual, 
                                entity, or organization that is 
                                a party to a contract with the 
                                Commission under this section 
                                shall be considered an employee 
                                of the Commission.
                            (ii) Prohibition on disclosure.--
                        Information obtained by the Commission, 
                        other than information that is 
                        available to the public, shall not be 
                        disclosed to any person in any manner 
                        except to an employee of the Commission 
                        as described in clause (i), for the 
                        purpose of receiving, reviewing, or 
                        processing the information.
    (d) Commission Personnel Matters.--
            (1) Members.--
                    (A) Compensation.--A member of the 
                Commission shall serve without compensation for 
                the services of the member on the Commission.
                    (B) Travel expenses.--A member of the 
                Commission shall be allowed travel expenses, 
                including per diem in lieu of subsistence, at 
                rates authorized for an employee of an agency 
                under subchapter I of chapter 57 of title 5, 
                United States Code, while away from the home or 
                regular place of business of the member in the 
                performance of the duties of the Commission.
            (2) Staff.--
                    (A) In general.--The Chairperson of the 
                Commission may, without regard to the civil 
                service laws (including regulations), appoint 
                and terminate the appointment of an executive 
                director and such other additional personnel as 
                are necessary to enable the Commission to 
                perform the duties of the Commission.
                    (B) Confirmation of executive director.--
                The employment of an executive director shall 
                be subject to confirmation by the Commission.
                    (C) Compensation.--
                            (i) In general.--Except as provided 
                        in clause (ii), the Chairperson of the 
                        Commission may fix the compensation of 
                        the executive director and other 
                        personnel without regard to the 
                        provisions of chapter 51 and subchapter 
                        III of chapter 53 of title 5, United 
                        States Code, relating to classification 
                        of positions and General Schedule pay 
                        rates.
                            (ii) Maximum rate of pay.--The rate 
                        of pay for the executive director and 
                        other personnel shall not exceed the 
                        rate payable for level II of the 
                        Executive Schedule under section 5316 
                        of title 5, United States Code.
            (3) Detail of federal government employees.--
                    (A) In general.--An employee of the Federal 
                Government may be detailed to the Commission, 
                without reimbursement, for such period of time 
                as is permitted by law.
                    (B) Civil service status.--The detail of 
                the employee shall be without interruption or 
                loss of civil service status or privilege.
            (4) Procurement of temporary and intermittent 
        services.--The Chairperson of the Commission may 
        procure temporary and intermittent services in 
        accordance with section 3109(b) of title 5, United 
        States Code, at rates for individuals that do not 
        exceed the daily equivalent of the annual rate of basic 
        pay prescribed for level II of the Executive Schedule 
        under section 5316 of that title.
    (e) Authorization of Appropriations.--
            (1) In general.--There is authorized to be 
        appropriated such sums as are necessary to carry out 
        this section.
            (2) Limitation.--No payment may be made under 
        subsection (d) except to the extent provided for in 
        advance in an appropriations Act.
    (f) Termination.--The Commission shall terminate on the 
date that is 60 days after the date on which the Commission 
submits the recommendations and report under subsection (b)(3).

SEC. 10808. PASTEURIZATION.

    (a) Pasteurization of Meat and Poultry.--
            (1) In general.--Effective beginning not later than 
        30 days after the date of enactment of this Act, the 
        Secretary of Agriculture shall conduct an education 
        program regarding the availability and safety of 
        processes and treatments that eliminate or 
        substantially reduce the level of pathogens on meat, 
        meat food products, poultry, and poultry products.
            (2) Authorization of appropriations.--There is 
        authorized to be appropriated such sums as are 
        necessary to carry out this subsection.
    (b) Pasteurization of Food As Pasteurized.--Section 403(h) 
of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 343(h)) 
is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph 
        (2) and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) a food that is pasteurized unless--
                    ``(A) such food has been subjected to a 
                safe process or treatment that is prescribed as 
                pasteurization for such food in a regulation 
                promulgated under this Act; or
                    ``(B)(i) such food has been subjected to a 
                safe process or treatment that--
                            ``(I) is reasonably certain to 
                        achieve destruction or elimination in 
                        the food of the most resistant 
                        microorganisms of public health 
                        significance that are likely to occur 
                        in the food;
                            ``(II) is at least as protective of 
                        the public health as a process or 
                        treatment described in subparagraph 
                        (A);
                            ``(III) is effective for a period 
                        that is at least as long as the shelf 
                        life of the food when stored under 
                        normal and moderate abuse conditions; 
                        and
                            ``(IV) is the subject of a 
                        notification to the Secretary, 
                        including effectiveness data regarding 
                        the process or treatment; and
                    ``(ii) at least 120 days have passed after 
                the date of receipt of such notification by the 
                Secretary without the Secretary making a 
                determination that the process or treatment 
                involved has not been shown to meet the 
                requirements of subclauses (I) through (III) of 
                clause (i).

For purposes of paragraph (3), a determination by the Secretary 
that a process or treatment has not been shown to meet the 
requirements of subclauses (I) through (III) of subparagraph 
(B)(i) shall constitute final agency action under such 
subclauses.''.

SEC. 10809. RULEMAKING ON LABELING OF IRRADIATED FOOD; CERTAIN 
                    PETITIONS.

    The Secretary of Health and Human Services (referred to in 
this section as the ``Secretary'') shall publish a proposed 
rule and, with due consideration to public comment, a final 
rule to revise, as appropriate, the current regulation 
governing the labeling of foods that have been treated to 
reduce pest infestation or pathogens by treatment by 
irradiation using radioactive isotope, electronic beam, or x-
ray. Pending promulgation of the final rule required by this 
subsection, any person may petition the Secretary for approval 
of labeling, which is not false or misleading in any material 
respect, of a food which has been treated by irradiation using 
radioactive isotope, electronic beam, or x-ray. The Secretary 
shall approve or deny such a petition within 180 days of 
receipt of the petition, or the petition shall be deemed 
denied, except to the extent additional agency review is 
mutually agreed upon by the Secretary and the petitioner. Any 
denial of a petition under this subsection shall constitute 
final agency action subject to judicial review by the United 
States Court of Appeals for the District of Columbia Circuit. 
Any labeling approved through the foregoing petition process 
shall be subject to the provisions of the final rule referred 
to in the first sentence of the subparagraph on the effective 
date of such final rule.

SEC. 10810. PENALTIES FOR VIOLATIONS OF PLANT PROTECTION ACT.

    Section 424 of the Plant Protection Act (7 U.S.C. 7734) is 
amended by striking subsection (a) and inserting the following:
    ``(a) Criminal Penalties.--
            ``(1) Offenses.--
                    ``(A) In general.--A person that knowingly 
                violates this title, or knowingly forges, 
                counterfeits, or, without authority from the 
                Secretary, uses, alters, defaces, or destroys 
                any certificate, permit, or other document 
                provided for in this title shall be fined under 
                title 18, United States Code, imprisoned not 
                more than 1 year, or both.
                    ``(B) Movement.--A person that knowingly 
                imports, enters, exports, or moves any plant, 
                plant product, biological control organism, 
                plant pest, noxious weed, or article, for 
                distribution or sale, in violation of this 
                title, shall be fined under title 18, United 
                States Code, imprisoned not more than 5 years, 
                or both.
            ``(2) Multiple violations.--On the second and any 
        subsequent conviction of a person of a violation of 
        this title under paragraph (1), the person shall be 
        fined under title 18, United States Code, imprisoned 
        not more than 10 years, or both.''.

SEC. 10811. PRECLEARANCE QUARANTINE INSPECTIONS.

    (a) Preclearance Inspections Required.--The Secretary of 
Agriculture, acting through the Administrator of the Animal and 
Plant Health Inspection Service, shall conduct preclearance 
quarantine inspections of persons, baggage, cargo, and any 
other articles destined for movement from the State of Hawaii 
to any of the following--
            (1) The continental United States.
            (2) Guam.
            (3) Puerto Rico.
            (4) The United States Virgin Islands.
    (b) Inspection Locations.--The preclearance quarantine 
inspections required by subsection (a) shall be conducted at 
all direct departure and interline airports in the State of 
Hawaii.
    (c) Limitation.--The Secretary shall not implement this 
section unless appropriations for necessary expenses of the 
Animal and Plant Health Inspection Service for inspection, 
quarantine, and regulatory activities are increased by an 
amount not less than $3,000,000 in an Act making appropriations 
for fiscal year 2003.

SEC. 10812. CONNECTICUT RIVER ATLANTIC SALMON COMMISSION.

    Section 3(2) of Public Law 98-138 (Public Law 98-138; 97 
Stat. 870) is amended by striking ``twenty'' and inserting 
``40''.

SEC. 10813. PINE POINT SCHOOL.

    Section 802(b)(2) of the No Child Left Behind Act of 2001 
(Public Law 107-110) is amended by striking ``2002'' each place 
it appears and inserting ``2000''.

SEC. 10814. 7-MONTH EXTENSION OF CHAPTER 12 OF TITLE 11 OF THE UNITED 
                    STATES CODE.

    (a) Amendments.--Section 149 of title I of division C of 
Public Law 105-277 is amended--
            (1) by striking ``June 1, 2002'' each place it 
        appears and inserting ``January 1, 2003''; and
            (2) in subsection (a)--
                    (A) by striking ``September 30, 2001'' and 
                inserting ``May 31, 2002''; and
                    (B) by striking ``October 1, 2001'' and 
                inserting ``June 1, 2002''.
    (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on June 1, 2002.

SEC. 10815. PRACTICES INVOLVING NONAMBULATORY LIVESTOCK.

    (a) Report.--The Secretary of Agriculture shall investigate 
and submit to Congress a report on--
            (1) the scope of nonambulatory livestock;
            (2) the causes that render livestock nonambulatory;
            (3) the humane treatment of nonambulatory 
        livestock; and
            (4) the extent to which nonambulatory livestock may 
        present handling and disposition problems for 
        stockyards, market agencies, and dealers.
    (b) Authority.--Based on the findings of the report, if the 
Secretary determines it necessary, the Secretary shall 
promulgate regulations to provide for the humane treatment, 
handling, and disposition of nonambulatory livestock by 
stockyards, market agencies, and dealers.
    (c) Administration and Enforcement.--For the purpose of 
administering and enforcing any regulations promulgated under 
subsection (b), the authorities provided under sections 10414 
and 10415 shall apply to the regulations in a similar manner as 
those sections apply to the Animal Health Protection Act. Any 
person that violates regulations promulgated under subsection 
(b) shall be subject to penalties provided in section 10414.

SEC. 10816. COUNTRY OF ORIGIN LABELING.

    The Agricultural Marketing Act of 1946 (7 U.S.C. 1621 et 
seq.) is amended by adding at the end the following:

                ``Subtitle D--Country of Origin Labeling

``SEC. 281. DEFINITIONS.

    ``In this subtitle:
            ``(1) Beef.--The term `beef' means meat produced 
        from cattle (including veal).
            ``(2) Covered commodity.--
                    ``(A) In general.--The term `covered 
                commodity' means--
                            ``(i) muscle cuts of beef, lamb, 
                        and pork;
                            ``(ii) ground beef, ground lamb, 
                        and ground pork;
                            ``(iii) farm-raised fish;
                            ``(iv) wild fish;
                            ``(v) a perishable agricultural 
                        commodity; and
                            ``(vi) peanuts.
                    ``(B) Exclusions.--The term `covered 
                commodity' does not include an item described 
                in subparagraph (A) if the item is an 
                ingredient in a processed food item.
            ``(3) Farm-raised fish.--The term `farm-raised 
        fish' includes--
                    ``(A) farm-raised shellfish; and
                    ``(B) fillets, steaks, nuggets, and any 
                other flesh from a farm-raised fish or 
                shellfish.
            ``(4) Food service establishment.--The term `food 
        service establishment' means a restaurant, cafeteria, 
        lunch room, food stand, saloon, tavern, bar, lounge, or 
        other similar facility operated as an enterprise 
        engaged in the business of selling food to the public.
            ``(5) Lamb.--The term `lamb' means meat, other than 
        mutton, produced from sheep.
            ``(6) Perishable agricultural commodity; 
        retailer.--The terms `perishable agricultural 
        commodity' and `retailer' have the meanings given the 
        terms in section 1(b) of the Perishable Agricultural 
        Commodities Act of 1930 (7 U.S.C. 499a(b)).
            ``(7) Pork.--The term `pork' means meat produced 
        from hogs.
            ``(8) Secretary.--The term `Secretary' means the 
        Secretary of Agriculture, acting through the 
        Agricultural Marketing Service.
            ``(9) Wild fish.--
                    ``(A) In general.--The term `wild fish' 
                means naturally-born or hatchery-raised fish 
                and shellfish harvested in the wild.
                    ``(B) Inclusions.--The term `wild fish' 
                includes a fillet, steak, nugget, and any other 
                flesh from wild fish or shellfish.
                    ``(C) Exclusions.--The term `wild fish' 
                excludes net-pen aquacultural or other farm-
                raised fish.

``SEC. 282. NOTICE OF COUNTRY OF ORIGIN.

    ``(a) In General.--
            ``(1) Requirement.--Except as provided in 
        subsection (b), a retailer of a covered commodity shall 
        inform consumers, at the final point of sale of the 
        covered commodity to consumers, of the country of 
        origin of the covered commodity.
            ``(2) United states country of origin.--A retailer 
        of a covered commodity may designate the covered 
        commodity as having a United States country of origin 
        only if the covered commodity--
                    ``(A) in the case of beef, is exclusively 
                from an animal that is exclusively born, 
                raised, and slaughtered in the United States 
                (including from an animal exclusively born and 
                raised in Alaska or Hawaii and transported for 
                a period not to exceed 60 days through Canada 
                to the United States and slaughtered in the 
                United States);
                    ``(B) in the case of lamb and pork, is 
                exclusively from an animal that is exclusively 
                born, raised, and slaughtered in the United 
                States;
                    ``(C) in the case of farm-raised fish, is 
                hatched, raised, harvested, and processed in 
                the United States;
                    ``(D) in the case of wild fish, is--
                            ``(i) harvested in waters of the 
                        United States, a territory of the 
                        United States, or a State; and
                            ``(ii) processed in the United 
                        States, a territory of the United 
                        States, or a State, including the 
                        waters thereof; and
                    ``(E) in the case of a perishable 
                agricultural commodity or peanuts, is 
                exclusively produced in the United States.
            ``(3) Wild fish and farm-raised fish.--The notice 
        of country of origin for wild fish and farm-raised fish 
        shall distinguish between wild fish and farm-raised 
        fish.
    ``(b) Exemption for Food Service Establishments.--
Subsection (a) shall not apply to a covered commodity if the 
covered commodity is--
            ``(1) prepared or served in a food service 
        establishment; and
            ``(2)(A) offered for sale or sold at the food 
        service establishment in normal retail quantities; or
            ``(B) served to consumers at the food service 
        establishment.
    ``(c) Method of Notification.--
            ``(1) In general.--The information required by 
        subsection (a) may be provided to consumers by means of 
        a label, stamp, mark, placard, or other clear and 
        visible sign on the covered commodity or on the 
        package, display, holding unit, or bin containing the 
        commodity at the final point of sale to consumers.
            ``(2) Labeled commodities.--If the covered 
        commodity is already individually labeled for retail 
        sale regarding country of origin, the retailer shall 
        not be required to provide any additional information 
        to comply with this section.
    ``(d) Audit Verification System.--The Secretary may require 
that any person that prepares, stores, handles, or distributes 
a covered commodity for retail sale maintain a verifiable 
recordkeeping audit trail that will permit the Secretary to 
verify compliance with this subtitle (including the regulations 
promulgated under section 284(b)).
    ``(e) Information.--Any person engaged in the business of 
supplying a covered commodity to a retailer shall provide 
information to the retailer indicating the country of origin of 
the covered commodity.
    ``(f) Certification of Origin.--
            ``(1) Mandatory identification.--The Secretary 
        shall not use a mandatory identification system to 
        verify the country of origin of a covered commodity.
            ``(2) Existing certification programs.--To certify 
        the country of origin of a covered commodity, the 
        Secretary may use as a model certification programs in 
        existence on the date of enactment of this Act, 
        including--
                    ``(A) the carcass grading and certification 
                system carried out under this Act;
                    ``(B) the voluntary country of origin beef 
                labeling system carried out under this Act;
                    ``(C) voluntary programs established to 
                certify certain premium beef cuts;
                    ``(D) the origin verification system 
                established to carry out the child and adult 
                care food program established under section 17 
                of the Richard B. Russell National School Lunch 
                Act (42 U.S.C. 1766); or
                    ``(E) the origin verification system 
                established to carry out the market access 
                program under section 203 of the Agricultural 
                Trade Act of 1978 (7 U.S.C. 5623).

``SEC. 283. ENFORCEMENT.

    ``(a) In General.--Except as provided in subsections (b) 
and (c), section 253 shall apply to a violation of this 
subtitle.
    ``(b) Warnings.--If the Secretary determines that a 
retailer is in violation of section 282, the Secretary shall--
            ``(1) notify the retailer of the determination of 
        the Secretary; and
            ``(2) provide the retailer a 30-day period, 
        beginning on the date on which the retailer receives 
        the notice under paragraph (1) from the Secretary, 
        during which the retailer may take necessary steps to 
        comply with section 282.
    ``(c) Fines.--If, on completion of the 30-day period 
described in subsection (b)(2), the Secretary determines that 
the retailer has willfully violated section 282, after 
providing notice and an opportunity for a hearing before the 
Secretary with respect to the violation, the Secretary may fine 
the retailer in an amount of not more than $10,000 for each 
violation.

``SEC. 284. REGULATIONS.

    ``(a) Guidelines.--Not later than September 30, 2002, the 
Secretary shall issue guidelines for the voluntary country of 
origin labeling of covered commodities based on the 
requirements of section 282.
    ``(b) Regulations.--Not later than September 30, 2004, the 
Secretary shall promulgate such regulations as are necessary to 
implement this subtitle.
    ``(c) Partnerships With States.--In promulgating the 
regulations, the Secretary shall, to the maximum extent 
practicable, enter into partnerships with States with 
enforcement infrastructure to assist in the administration of 
this subtitle.

``SEC. 285. APPLICABILITY.

    ``This subtitle shall apply to the retail sale of a covered 
commodity beginning September 30, 2004.''.

             Subtitle J--Miscellaneous Studies and Reports

SEC. 10901. REPORT ON SPECIALTY CROP PURCHASES.

    Not later than 1 year after the date of enactment of this 
Act, the Secretary of Agriculture shall submit to the Committee 
on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
a report on the quantity and type of--
            (1) fruits, vegetables, and other specialty food 
        crops that are purchased under section 10603; and
            (2) other commodities that are purchased under 
        section 32 of the Act of August 24, 1935 (7 U.S.C. 
        612c).

SEC. 10902. REPORT ON POUCHED AND CANNED SALMON.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Agriculture shall 
submit to Congress a report on efforts to expand the promotion, 
marketing, and purchasing of pouched and canned salmon 
harvested and processed in the United States under food and 
nutrition programs administered by the Secretary.
    (b) Components.--The report under subsection (a) shall 
include--
            (1) an analysis of pouched and canned salmon 
        inventories in the United States that, as of the date 
        on which the report is submitted, are available for 
        purchase;
            (2) an analysis of the demand for pouched and 
        canned salmon and value-added products (such as salmon 
        ``nuggets'') by--
                    (A) partners of the Department of 
                Agriculture (including other appropriate 
                Federal agencies); and
                    (B) consumers; and
            (3) an analysis of impediments to additional 
        purchases of pouched and canned salmon, including--
                    (A) any marketing issues; and
                    (B) recommendations for methods to resolve 
                those impediments.

SEC. 10903. STUDY ON UPDATING YIELDS.

    (a) In General.--The Comptroller General shall conduct a 
study and make findings and recommendations with respect to 
determining how producer income would be affected by updating 
yield bases, including--
            (1) whether crop yields have increased over the 
        past 20 crop years for program crops and oilseeds;
            (2) whether program payments would be disbursed 
        differently under title I if yield bases were updated 
        further;
            (3) what impact the target prices under title I 
        would have on producer income if the yield bases of the 
        target prices were further updated; and
            (4) what impact lower target prices with updated 
        yield bases would have on producer income, as compared 
        with the impact of target prices under title I.
    (b) Report.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General shall submit to 
Congress a report on the study, findings, and recommendations 
required by subsection (a).

SEC. 10904. REPORT ON EFFECT OF FARM PROGRAM PAYMENTS.

    (a) In General.--The Secretary of Agriculture shall conduct 
a review of the effects that payments under production 
flexibility contracts and market loss assistance payments have 
had, and that direct payments and counter-cyclical payments are 
likely to have, on the economic viability of producers and the 
farming infrastructure, particularly in areas where climate, 
soil types, and other agronomic conditions severely limit the 
covered crops that producers can choose to successfully and 
profitably produce.
    (b) Case Study Related to Rice Production.--The review 
shall include a case study of the effects that the payments 
described in subsection (a), and the forecast effects of 
increasing these or other fixed payments, are likely to have on 
rice producers (including tenant rice producers), the rice 
milling industry, and the economies of rice farming areas in 
Texas, where harvested rice acreage has fallen from 320,000 
acres in 1995 to only 211,000 acres in 2001.
    (c) Report and Recommendations.--
            (1) Report.--Not later than 90 days after the date 
        of the enactment of this Act, the Secretary shall 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report 
        describing the information collected for the review and 
        the case study and any findings made on the basis of 
        the information.
            (2) Recommendations.--The report shall include 
        recommendations for minimizing the adverse effects on 
        producers, with a special focus on--
                    (A) producers who are tenants;
                    (B) the agricultural economies in farming 
                areas generally;
                    (C) particular areas described in 
                subsection (a); and
                    (D) on the area that is the subject of the 
                case study conducted under subsection (b).

SEC. 10905. CHILOQUIN DAM FISH PASSAGE FEASIBILITY STUDY.

    (a) In General.--The Secretary of the Interior, in 
collaboration with all interested parties (including the Modoc 
Point Irrigation District, the Klamath Tribes, and the Oregon 
Department of Fish and Wildlife), shall conduct a study of the 
feasibility of providing adequate upstream and downstream 
passage for fish at the Chiloquin Dam on the Sprague River, 
Oregon.
    (b) Subjects.--The study shall include--
            (1) a review of all alternatives for providing 
        passage described in subsection (a), including the 
        removal of the dam;
            (2) the determination of the most appropriate 
        alternative;
            (3) the development of recommendations for 
        implementing that alternative; and
            (4) examination of mitigation needed for upstream 
        and downstream water users, and for Klamath tribal 
        nonconsumptive uses, as a result of the implementation 
        of the alternative.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of the Interior shall 
submit to Congress a report that describes the findings, 
conclusions, and recommendations of the study.

SEC. 10906. REPORT ON GEOGRAPHICALLY DISADVANTAGED FARMERS AND 
                    RANCHERS.

    (a) Definition of Geographically Disadvantaged Farmer or 
Rancher.--In this section, the term ``geographically 
disadvantaged farmer or rancher' means a farmer or rancher in--
            (1) an insular area (as defined in section 1404 of 
        the National Agricultural Research, Extension, and 
        Teaching Policy Act of 1977 (7 U.S.C. 3103) (as amended 
        by section 7502(a)); or
            (2) a State other than 1 of the 48 contiguous 
        States.
    (b) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Agriculture shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that describes--
            (1) barriers to efficient and competitive 
        transportation of inputs and products by geographically 
        disadvantaged farmers and ranchers; and
            (2) means of encouraging and assisting 
        geographically disadvantaged farmers and ranchers--
                    (A) to own and operate farms and ranches; 
                and
                    (B) to participate equitably in the full 
                range of agricultural programs offered by the 
                Department of Agriculture.

SEC. 10907. STUDIES ON AGRICULTURAL RESEARCH AND TECHNOLOGY.

    (a) Scientific Studies.--
            (1) In general.--The Secretary of Agriculture may 
        conduct scientific studies on--
                    (A) the transmission of spongiform 
                encephalopathy in deer, elk, and moose; and
                    (B) chronic wasting disease (including the 
                risks that chronic wasting disease poses to 
                livestock).
            (2) Report.--The Secretary shall submit to the 
        Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate a report on the 
        results of any scientific studies conducted under 
        paragraph (1).
    (b) Vaccines.--
            (1) Vaccine storage study.--The Secretary may--
                    (A) conduct a study to determine the number 
                of doses of livestock disease vaccines that 
                should be available to protect against 
                livestock diseases that could be introduced 
                into the United States; and
                    (B) compare that number with the number of 
                doses of the livestock disease vaccines that 
                are available as of that date.
            (2) Stockpiling of vaccines.--If, after conducting 
        the study and comparison described in paragraph (1), 
        the Secretary determines that there is an insufficient 
        number of doses of a particular vaccine referred to in 
        that paragraph, the Secretary may take such actions as 
        are necessary to obtain the required additional doses 
        of the vaccine.

SEC. 10908. REPORT ON TOBACCO SETTLEMENT AGREEMENT.

    Not later than December 31, 2002, and annually thereafter 
through 2006, the Comptroller General shall submit to Congress 
a report that describes all programs and activities that States 
have carried out using funds received under all phases of the 
Master Settlement Agreement of 1997.

SEC. 10909. REPORT ON SALE AND USE OF PESTICIDES FOR AGRICULTURAL USES.

    Not later than 180 days after the date of enactment of this 
Act, the Administrator of the Environmental Protection Agency 
shall submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report on the manner in which the 
Agency is applying regulations of the Agency governing the sale 
and use of pesticides for agricultural use to electronic 
commerce transactions.

SEC. 10910. REVIEW OF OPERATION OF AGRICULTURAL AND NATURAL RESOURCE 
                    PROGRAMS ON TRIBAL TRUST LAND.

    (a) Review.--The Secretary of Agriculture (referred to in 
this section as the ``Secretary'') shall conduct a review of 
the operation of agricultural and natural resource programs 
available to farmers and ranchers operating on tribal and trust 
land, including--
            (1) agricultural commodity, price support, and farm 
        income support programs (collectively referred to in 
        this section as ``agricultural commodity programs'');
            (2) conservation programs (including financial and 
        technical assistance);
            (3) agricultural credit programs;
            (4) rural development programs; and
            (5) forestry programs.
    (b) Criteria for Review.--In carrying out the review under 
subsection (a), the Secretary shall consider--
            (1) the extent to which agricultural commodity 
        programs and conservation programs are consistent with 
        tribal goals and priorities regarding the sustainable 
        use of agricultural land;
            (2) strategies for increasing tribal participation 
        in agricultural commodity programs and conservation 
        programs;
            (3) the educational and training opportunities 
        available to Indian tribes and members of Indian tribes 
        in the practical, technical, and professional aspects 
        of agriculture and land management; and
            (4) the development and management of agricultural 
        land under the jurisdiction of Indian tribes in 
        accordance with integrated resource management plans 
        that--
                    (A) ensure proper management of the land;
                    (B) produce increased economic returns;
                    (C) promote employment opportunities; and
                    (D) improve the social and economic well-
                being of Indian tribes and members of Indian 
                tribes.
    (c) Consultation.--In carrying out this section, the 
Secretary shall consult with--
            (1) the Secretary of the Interior;
            (2) local officers and employees of the Department 
        of Agriculture; and
            (3) program recipients.
    (d) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary shall submit to Congress a 
report that contains--
            (1) a description of the results of the review 
        conducted under this section;
            (2) recommendations for program improvements; and
            (3) a description of actions that will be taken to 
        carry out the improvements.
    And the Senate agree to the same.
    That the House recede from its disagreement to the 
amendment of the Senate to the title of the bill and agree to 
the same with an amendment as follows:
    In lieu of the matter proposed to be inserted by the 
amendment of the Senate to the title of the bill, insert the 
following: ``An Act to provide for the continuation of 
agricultural programs through fiscal year 2007, and for other 
purposes.''.
    And the Senate agree to the same.

                From the Committee on Agriculture, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Larry Combest,
                                   Bob Goodlatte,
                                   Richard Pombo,
                                   Terry Everett,
                                   Frank D. Lucas,
                                   Saxby Chambliss,
                                   Jerry Moran,
                                   Charles W. Stenholm,
                                   Gary Condit,
                                   Collin C. Peterson,
                                   Eva M. Clayton,
                                   Tim Holden,
                As additional conferees from the Committee on 
                the Budget, for consideration of sec. 197 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Jim Nussle,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 453-5, 
                457-9, 460-1, and 464 of the Senate amendment, 
                and modifications committed to conference:
                                   Michael N. Castle,
                                   Tom Osborne,
                                   Dale E. Kildee,
                From the Committee on Energy and Commerce, for 
                consideration of secs. 213, 605, 627, 648, 652, 
                902, 1041, and 1079E of the Senate amendment, 
                and modifications committed to conference:
                                   Billy Tauzin,
                                   Joe Barton,
                                   John D. Dingell,
                From the Committee on Financial Services, for 
                consideration of secs. 335 and 601 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Michael G. Oxley,
                                   Spencer Bachus,
                                   John J. LaFalce
                                           (except for sec. 335),
                From the Committee on International Relations, 
                for consideration of title III of the House 
                bill and title III of the Senate amendment, and 
                modifications committed to conference:
                                   Henry Hyde,
                                   Christopher Smith,
                                   Tom Lantos,
                From the Committee on the Judiciary, for 
                consideration of secs. 940-1 of the House bill 
                and secs. 602, 1028-9, 1033-5, 1046, 1049, 
                1052-3, 1058, 1068-9, 1070-1, 1098, and 1098A 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Mark Green,
                From the Committee on Resources, for 
                consideration of secs. 201, 203, 211, 213, 215-
                7, 262, 721, 786, 806, 810, 817-8, 1069, 1070, 
                and 1076 of the Senate amendment, and 
                modifications committed to conference:
                                   James V. Hansen,
                                   Don Young,
                From the Committee on Science, for 
                consideration of secs. 808, 811, 902-3, and 
                1079 of the Senate amendment, and modifications 
                committed to conference:
                                   Sherwood Boehlert,
                                   Roscoe G. Bartlett,
                                   Ralph M. Hall,
                From the Committee on Ways and Means, for 
                consideration of secs. 127 and 146 of the House 
                bill and sections 144, 1024, 1038, and 1070 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Charles B. Rangel,
                                 Managers on the Part of the House.

                                   Tom Harkin,
                                   Patrick Leahy,
                                   Kent Conrad,
                                   Tom Daschle,
                                   Thad Cochran,
                                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. 2646) to provide 
for the continuation of agricultural programs through fiscal 
year 2011, 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.

                     Short Title; Table of Contents

(1) Short Title
      The House bill cites that this Act may be cited as the 
``Farm Security Act of 2001''. (Section 1)
      The Senate amendment cites that the Act may be cited as 
the ``Agriculture, Conservation, and Rural Enhancement Act of 
2002''. (Section 1)
      The Conference substitute cites this Act as the ``Farm 
Security and Rural Investment Act of 2002''. (Section 1000)

                      Title I--Commodity Programs

(2) Definitions
      The House bill defines terms necessary for implementation 
of this Act: Agricultural Act of 1949, base acres, counter-
cyclical payment, covered commodity, effective price, eligible 
producer, fixed decoupled payment, other oilseed, payment 
acres, payment yield, producer, Secretary, State, target price 
and United States. (Section 101)
      The Senate amendment defines terms necessary for 
implementation of this Act: Agricultural Act of 1949, 
considered planted, contract, contract acreage, contract 
commodity, contract payment, Department, ELS Cotton, loan 
commodity, oilseed, payment yield, producer, Secretary, State 
and United States. (Section 101)
      The Conference substitute defines terms necessary for 
implementation of this Act: Agricultural Act of 1949, base 
acres, counter-cyclical payment, covered commodity, direct 
payment, effective price, extra long staple cotton, loan 
commodity, other oilseed, payment acres, payment yield, updated 
payment yield, producer, Secretary, State, target price and 
United States. (Section 1001)

   subtitle a--fixed decoupled payments and counter-cyclical payments

(3) Payments to Eligible Producers
      The House bill provides that beginning with the 2002 crop 
year, the Secretary will make fixed decoupled payments and 
counter-cyclical payments to eligible producers, including 
producers that would have been eligible for an AMTA contract 
payment in 2002 and other producers of a covered commodity on a 
farm in the United States as described in section 103(a).
      Defines a producer eligible to share in a fixed, 
decoupled and counter-cyclical payment as ``an owner, operator, 
landlord, tenant, or sharecropper who shares in the risk of 
producing a crop and who is entitled to share in the crop 
available for marketing from the farm, or would have shared had 
the crop been produced. In determining whether a grower of 
hybrid seed is a producer, the Secretary shall not take into 
consideration the existence of a hybrid seed contract and shall 
ensure that program requirements do not adversely affect the 
ability of the grower to receive a payment under this title''.
      Requires the Secretary to protect the interests of 
tenants and sharecroppers in carrying out this title.
      Sharing of Contract Payments.--The Secretary shall 
provide for the sharing of fixed, decoupled payments and 
counter-cyclical payments among the eligible producers on a 
farm on a fair and equitable basis.
      The Senate amendment provides that the Secretary shall 
offer to enter into a contract with an eligible owner or 
producer on a farm containing eligible cropland under which the 
eligible owner or producer will receive direct and counter-
cyclical payments under sections 113 and 114, respectively.
      For each of the 2002 through 2006 fiscal years, the 
Secretary shall make direct payments available to eligible 
owners and producers on a farm that have entered into a 
contract to receive payments under this section.
      For each of the 2002 through 2006 crop years, the 
Secretary shall make counter-cyclical payments to eligible 
owners and producers on a farm of each contract commodity that 
have entered into a contract to receive payments under this 
section.
      An eligible owner or producer on a farm, subject to the 
provisions for share-rent tenants, cash-rent tenants and cash-
rent owners, shall be eligible to enter into a contract.
      Share-rent Tenant.--A producer on eligible cropland that 
is a tenant with a share-rent lease of the eligible cropland 
shall be eligible to enter into a contract, regardless of the 
length of the lease, if the owner enters into the same 
contract.
      Cash-Rent Tenant.--Contracts With Long-Term Lease--A 
producer on eligible cropland that cash rents the eligible 
cropland under a lease expiring on or after the termination of 
the contract shall be eligible to enter into a contract.
      Contracts With Short-Term Lease.--A producer that cash 
rents the eligible cropland under a lease expiring before the 
termination of the contract shall be eligible to enter into a 
contract in addition to the owner. Provides that the owner must 
consent if a producer elects to enroll less than 100 percent of 
the eligible cropland in the contract.
      Cash-Rent Owner.--An owner of eligible cropland that cash 
rents under a lease that expires before the end of the 2006 
crop year shall be eligible to enter into a contract if the 
tenant declines to do so, however the Secretary shall not make 
contract payments to the owner under the contract until the 
lease held by the tenant terminates.
      Requires the Secretary to protect the interest of tenants 
and sharecroppers in carrying out this subtitle.
      Requires the Secretary to provide for the sharing of 
contract payments among theeligible producers on a farm on a 
fair and equitable basis. (Section 111)
      The Conference substitute deletes both the House and the 
Senate provisions, except provides in section 1105 for the 
protection of the interest of tenants and sharecroppers and 
requires the sharing of direct and counter-cyclical payments 
among the producers on a farm on a fair and equitable basis. 
(Section 1105)
      The Managers intend that the Secretary will consider 
acreage and production data from producers' federal crop 
insurance records, as well as records provided to the Farm 
Service Agency to qualify for market assistance loan benefits 
during the relevant crop years.
(4) Establishment of Payment Yield
      The House bill requires the Secretary to establish 
payment yields for each farm for each covered commodity. The 
yield for a farm will be the payment yield in effect for the 
2002 crop of the commodity as provided under section 505 of the 
Agricultural Act of 1949. If no yield is available, the 
Secretary shall establish an appropriate payment yield taking 
into account the payment yields applicable to the commodity for 
similar farms in the area.
      Relative to soybeans and other oilseeds, the Secretary 
will establish a yield for a farm by determining the average 
yield from 1998 through 2001, excluding years where the acreage 
planted to the oilseed was zero. If a farm would have satisfied 
disaster eligibility requirements under the FY1999 Agriculture 
Appropriations Bill in any of the 1998 through 2001 crop years, 
the Secretary will assign a yield to the farm equal to 65 
percent of the county yield for that year in determining the 4-
year average.
      The payment yield for a farm for an oilseed shall be 
equal to the product of the following: (A) the average yield 
for the oilseed determined under paragraph (1). The ratio 
resulting from dividing the national average yield for the 
oilseed for the 1981 through 1985 crops by the national average 
yield for the oilseed for the 1998 through 2001 crops. (Section 
102)
      The Senate amendment provides that subject to subsection 
(h), an eligible owner or producer that has entered into a 
contract under this subtitle may make a 1-time election to have 
the payment yield for each of the contract commodities for a 
farm be equal to an amount that is the greater of: (1) the 
average yield per harvested acre for the crop of the contract 
commodity for the farm for the 1998-2001 crop years, excluding 
any crop year for which the producers on the farm did not plant 
the contract crop and, at the option of the producers, 1 
additional crop year or the farm program payment yield adjusted 
for any additional yields. If no yield records are available 
for a contract commodity, including land devoted to oilseed 
under a conservation reserve contract, the Secretary shall 
establish an appropriate payment yield taking into account the 
payment yields applicable to the commodity for similar farms in 
the area. (Section 111)
      The Conference substitute requires the Secretary to 
establish payment yields for each farm for each covered 
commodity. The yield for a farm will be the payment yield in 
effect for the 2002 crop of the commodity as provided under 
section 505 of the Agricultural Act of 1949, as adjusted by the 
Secretary to account for any additional yield payments. If no 
yield is available, the Secretary shall establish an 
appropriate payment yield taking into account the payment 
yields applicable to the commodity for similar farms in the 
area, but before the yields for the similar farms are updated 
to reflect the actual yield per planted acre for the period 
1998 through 2001.
      Relative to soybeans and other oilseeds, the Secretary 
will establish a yield for a farm by determining the average 
yield from 1998 through 2001, excluding years where the acreage 
planted to the oilseed was zero.
      The payment yield for a farm for an oilseed shall be 
equal to the product of the following: (A) The average yield 
for the oilseed for the 1998 through 2001 crops. (B) The ratio 
resulting from dividing the national average yield for the 
oilseed for the 1981 through 1985 crops by the national average 
yield for the oilseed for the 1998 through 2001 crops.
      If the yield per planted acre for a crop of an oilseed 
for a farm for any of the 1998 through 2001 crop years was less 
than 75 percent of the county yield for that oilseed, the 
Secretary shall assign a yield for that crop year equal to 75 
percent of the county yield for purposes of determining the 
average yield for the 1998 through 2001 crop years.
      If the owner of a farm elects to update the crop acreage 
base for all covered commodities using the average of the 
planted and prevented from planting acreage for 1998 through 
2001, the owner shall also have a 1-time opportunity to elect 
to partially update the payment yields that would be used in 
calculating any counter-cyclical payments for covered 
commodities on the farm. If yields are updated for counter-
cyclical payments for one covered commodity, they must be 
updated for all covered commodities on the farm.
      If the owner of a farm elects to update yields for 
payments, the counter-cyclical payment yield for a covered 
commodity on the farm shall be equal to the yield determined 
using either of the following: (A) The sum of the payment yield 
applicable for direct payments for the covered commodity on the 
farm and 70 percent of the difference between the average of 
the yield per planted acre for the crop of the covered 
commodity on the farm for the 1998 through 2001 crop years and 
the payment yield applicable for direct payments for the 
covered commodity on the farm, or (B) 93.5 percent of the 
average yield per planted acre for the crop of the covered 
commodity for the farm for the 1998 through 2001 crop years.
      If the yield per planted acre for a crop of the covered 
commodity for a farm for any of the 1998 through 2001 crop 
years was less than 75 percent of the county yield for that 
commodity, the Secretary shall assign a yield for that crop 
year equal to 75 percent of the county for the purpose of 
determining the average yield.
      Owners electing to partially update yields are required 
to have the partially updated yield determined on the average 
yield per planted acre, excluding any year in which the crop 
was not planted. The Managers intend that the Secretary 
recognize that those producers planting crops for grazing that 
will be included as base acreage are unable to furnish 
production evidence similar to that furnished by producers that 
harvest crops for grain. For those owners intending to 
partially update a crop's counter-cyclical yield that have this 
situation, the Managers intend for the Secretary to equitably 
determine the yield on the grazed acreage to be used for 
purposes of proven yields by either assigning a yield based on 
the actual production for that year on similar farms that 
harvested for grain or other method determined appropriate by 
the Secretary. (Section 1102)
(5) Establishment of Base Acres and Payment Acres for a Farm
      The House bill provides that the Secretary will give 
producers a choice indetermining their base acres. Producers 
may choose base acres reflecting the four-year average of acreage 
planted or prevented from being planted to the commodity for harvest, 
grazing, haying, silage, and other similar purposes during the 1998 
through 2001 crop years. Alternatively, producers may choose base acres 
reflecting contract acreage that would otherwise be used to calculate 
the fiscal year 2002 production flexibility contract payments.
      Producers may make an election of base acres only once 
and provide notice of the election to the Secretary no later 
than 180 days after the date of enactment of this Act. If a 
producer fails to make an election of base acreage, or fails to 
timely notify the Secretary of the selected base acreage, the 
producers shall be deemed to have chosen base acres reflecting 
the production flexibility contract acreage.
      The election made by the producer shall apply to all 
covered commodities on the farm.
      In the case of producers on a farm that elect as their 
base acreage the contract acreage used by the Secretary to 
calculate the fiscal year 2002 payment, the Secretary will 
restore base acres when land under a conservation reserve 
contract expires, is voluntary terminated, or is released by 
the Secretary. (Conservation Reserve Program Sign-up 1-14)
      For the fiscal year and crop year in which a base acre 
adjustment is first made, the producers on the farm shall elect 
to receive either fixed decoupled payments and counter-cyclical 
payments with respect to the acreage added to the farm or a 
prorated payment under the conservation reserve contract, but 
not both.
      In the case of producers on a farm that elect as their 
base acreage the contract acreage used by the Secretary to 
calculate the fiscal year 2002 payment, the Secretary will 
restore base acres when land under a conservation reserve 
contract expires, is voluntary terminated, or is released by 
the Secretary. (Conservation Reserve Program Sign-up 15 and 
greater)
      Payment acres for both the fixed decoupled and the 
counter-cyclical payment shall be equal to 85% of the base 
acres.
      The sum of base acres, peanut acres and acreage enrolled 
in CRP, WRP, or other programs in which a producer agrees not 
to produce a commodity on acreage in exchange for a payment, 
cannot exceed the actual cropland acreage on the farm. The 
Secretary shall give producers on the farm the opportunity to 
select base acres or peanuts acres against which the reduction 
will be made. The Secretary shall make an exception in the case 
of double cropping. (Section 103)
      The Senate amendment provides that land shall be 
considered to be cropland eligible for coverage under a 
contract only if the land has with respect to a contract 
commodity, contract acreage attributable to the land and a 
payment yield or was subject to a conservation reserve contract 
with a term that expired, or was voluntarily terminated on or 
after the date of enactment.
      Provides that an eligible owner or producer may enroll as 
contract acreage under this subtitle all or a portion of the 
eligible cropland on the farm.
      Provides that an owner or producer that enters into a 
contract may subsequently reduce the quantity of contract 
acreage covered by the contract.
      Subject to subsection (h) the Secretary shall provide 
eligible owners and producers on the farm with an opportunity 
to elect 1 of the following methods as the method by which the 
contract acreage for the 2002 through 2006 crops of all 
contract commodities for a farm are determined: (1) the 4-year 
average of acreage planted or considered planted to a contract 
commodity for harvest, grazing, haying, silage, or other 
similar purposes during the 1998 through 2001 crop years or (2) 
contract acreage that would be used to calculate the fiscal 
year 2002 production flexibility contract payments and the 4-
year average for each oilseed produced on the farm.
      In making the contract acreage and yield elections, 
eligible owners and producers on a farm shall elect to update 
the contract acreage using the 4-year 1998 through 2001 average 
acreage and the 1998 through 2001 average yield per harvested 
acre (adjusted for years with no planted acreage and at the 
option of the producer, 1 additional crop year) or the 2002 
production flexibility contract crop acreage plus the 4-year 
average of oilseeds and the farm program payment yield for 
current contract crops and for oilseeds, the 1998 through 2001 
average yield per harvested acre (adjusted for years with no 
planted acreage and at the option of the producer, 1 additional 
crop year).
      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 that terminated after 180 days 
after the enactment of this Act to enter into or expand a 
contract to cover the eligible cropland of the farm that was 
subject to the former conservation reserve contract.
      For the fiscal year and crop year for which a contract 
acreage adjustment is made as a result of the termination of a 
conservation reserve program contract the eligible owners and 
producers on the farm shall elect to receive direct payments 
and counter-cyclical payments with respect to the acreage added 
to the farm or a prorated payment under the conservation 
reserve contract.
      The sum of the contract acreage, peanut acres and acreage 
enrolled in CRP, WRP, or other acreage on a farm enrolled in a 
voluntary Federal conservation program under which production 
of any agricultural commodity is prohibited, cannot exceed the 
actual cropland acreage on a farm. The Secretary shall give 
owners and producers on the farm the opportunity to select 
contract acreage or peanut acres against which the reduction 
will be made. The Secretary shall take into account additional 
acreage as a result of an established double-cropping history 
on a farm. (Section 111)
      The Conference substitute provides that for the purpose 
of making direct and counter-cyclical payments to a farm, the 
Secretary shall give an owner of the farm an opportunity to 
elect the method by which the base acres of all covered 
commodities on the farm are to be determined. Subject to the 
provision requiring the base acreage to be determined based on 
a 4-year average, including the years in which the crop was not 
planted, and the treatment of multiple plantings or prevented 
planting on the same acreage, owners may choose the farms crop 
acreage base by either: (1) using the acreage planted on the 
farm to covered commodities for harvest, grazing, haying, 
silage, or other similar purposes for the 1998 through 2001 
crop years including any acreage on the farm that the producers 
were prevented from planting to covered commodities because of 
drought, flood, or other natural disaster, or other condition 
beyond the control of the producers, as determined by the 
Secretary or (2) contract acreage that would be used to 
calculate the fiscal year 2002 production flexibility contract 
payments and the 4-year average for each oilseed produced on 
the farm for the 1998 through 2001 crop years. The eligible 
acreage for each oilseed on a farm shall be the average of each 
oilseed for the 1998 through 2001 crop years, except that the 
total acreage for all oilseeds on the farm for a crop year may 
not exceed the difference between the total acreage determined 
for all covered commodities for that crop year and the total 
contract acreage used by theSecretary to calculate the fiscal 
year 2002 production flexibility contract payment.
      The owner of a farm may increase the eligible acreage for 
an oilseed on the farm by reducing the production flexibility 
contract acreage for one or more covered commodities on an 
acre-for-acre-basis, except that the total base acreage for 
each oilseed on the farm may not exceed the 4-year average of 
each oilseed.
      The Secretary shall not exclude any crop year in which a 
covered commodity was not planted for purposes of determining a 
4-year acreage average.
      For the purposes of determining the 4-year average of 
acreage planted or prevented from being planted during the 1998 
through 2001 crop years to covered commodities, acreage that 
was planted or prevented from being planted that was devoted to 
another covered commodity in the same crop year may only be 
used in the base calculation after the owner determines whether 
the initial commodity or the subsequent commodity, but not 
both, will be used.
      As soon as practicable after the date of enactment of 
this Act, the Secretary shall provide notice to owners of farms 
regarding their opportunity to make the applicable base 
election. The notice shall include: (1) notice that the 
opportunity of an owner to make the election is being provided 
only once and (2) information regarding the manner in which the 
election must be made and the time periods and manner in which 
notice of the election must be submitted to the Secretary.
      The owner may make an election of base acres only once 
and must provide notice of the election to the Secretary within 
the time period and in the manner prescribed by the Secretary. 
If an owner fails to make an election of base acreage, or fails 
to timely notify the Secretary of the election made, the owner 
shall be deemed to have chosen base acres reflecting the 
production flexibility contract acreage, plus oilseeds if 
applicable.
      The election made by the producer shall apply to all 
covered commodities on the farm.
      The Secretary shall provide for an appropriate adjustment 
in the base acres for covered commodities for a farm whenever 
land under a conservation reserve contract expires, is 
voluntary terminated, or is released by the Secretary.
      For the crop year in which a base acre adjustment is 
first made, the owner on the farm shall elect to receive either 
direct payments and counter-cyclical payments with respect to 
the acreage added to the farm or a prorated payment under the 
conservation reserve contract, but not both.
      Payment acres for both the direct and the counter-
cyclical payment shall be equal to 85% of the base acres.
      The sum of base acres, base acres for peanuts and acreage 
enrolled in CRP, WRP, or other conservation programs which 
restrict or prohibit the production of an agricultural 
commodity cannot exceed the actual cropland acreage on the 
farm. The Secretary shall give producers on the farm the 
opportunity to select base acres or base acres for peanuts 
against which the reduction will be made. The Secretary shall 
make an exception in the case of double cropping.
      The owner of a farm may reduce, at any time, base acreage 
for any covered commodity for the farm provided the reduction 
of base acreage is permanent.
      In implementing Section 1101, the Secretary shall also 
allow owners of a farm who did not hold a production 
flexibility contract under the Federal Agriculture Improvement 
and Reform Act of 1996 to elect to calculate base acreage for 
planting history on the farm for crop years 1998-2001. The 
intent of this section is to provide the opportunity to owners 
to update base acreage to reflect a more recent planting 
history, to allow owners not holding a production flexibility 
contract to receive farm program benefits under this Act, and 
to allow owners holding production flexibility contracts the 
opportunity to retain their base acreage and add oilseeds in a 
limited manner.
      The Managers expect the Secretary to recognize that 
although the owner of the farm will be allowed the opportunity 
to make the applicable base election under Section 1101, it is 
important that other producers on the farm are notified of the 
acreage options available to the owner. In addition to 
providing notice to the owner of the farm, the Managers expect 
the Secretary to provide notice to operators or producers on a 
farm of the owner's opportunity to elect the method in which to 
calculate base acres at the time the Secretary provides notice 
to the owner.
      The Managers are aware that production flexibility 
contract acreage was not protected on acreage enrolled into the 
Conservation Reserve Program during CRP signup number 15 and 
later. The Managers intend that the Secretary develop a method 
that provides for the restoration of base acreage on farms that 
permanently reduced contract acreage because of enrollment in 
CRP. Since soybeans and other oilseeds did not have contract 
acreage prior to this Act, the Managers expect the Secretary to 
treat soybeans and other oilseeds in a manner that is similar 
and consistent with other covered commodities. (Section 1101)
(6) Elements of Contracts
      The Senate amendment provides the 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) Except as provided in paragraph the Secretary may not 
enter into a contract after the date that is 180 days after the 
date of enactment.
      (3) At the beginning of each fiscal year, the Secretary 
shall allow an eligible owner or producer on a farm with a 
conservation reserve contract that terminated after the final 
date to enroll eligible cropland in a direct and counter-
cyclical payment contract to enter into or expand a contract to 
cover the eligible cropland that was subject to the former 
conservation reserve contract.
      Duration of Contract.--The term of a contract shall begin 
with the 2002 crop or in the case of acreage that was subject 
to a conservation reserve contract that is subsequently 
terminated, the date the contract was entered into or expanded 
to cover the terminated acreage. Unless earlier terminated by 
eligible owners or producer, the contract shall extend through 
the 2006 crop. (Section 111)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(7) Availability of Fixed, Decoupled Payments
      The House bill provides that the Secretary shall make 
fixed decoupled payments to eligible producers for each of the 
2002 through 2011 crop years at a payment rate of $0.53 per 
bushel for wheat, $0.30 per bushel for corn, $0.36 per bushel 
for grain sorghum, $0.25 per bushel for barley, $0.025 per 
bushel for oats, $0.0667 per pound for upland cotton, $2.35 per 
hundredweight for rice, $0.42 per bushel for soybeans, and 
$0.0074 per pound for other oilseeds.
      The amount of the fixed, decoupled payment will be equal 
to the product of thepayment rate of the applicable base crop, 
the payment acres, and the payment yield.
      Fixed decoupled payments shall be paid no later than 
September 30 of fiscal years 2002 through 2011, except that in 
fiscal year 2002 payments may be made on or after December 1, 
2001.
      A producer may elect to receive 50 percent of the fixed 
decoupled payment in advance anytime on or after December 1 of 
a fiscal year. The producer may change the selected date for a 
subsequent fiscal year by providing advance notice to the 
Secretary.
      If a producer who receives an advance fixed decoupled 
payment ceases to be an eligible producer by the time final 
fixed decoupled payments are to be made, the producer must 
repay the advance amount.
      The Senate amendment provides that the Secretary shall 
make direct payments available to eligible owners and producers 
that have entered into a contract at a payment rate as follows:

----------------------------------------------------------------------------------------------------------------
                                                                      2002-03         2004-05          2006
----------------------------------------------------------------------------------------------------------------
Wheat (bu)......................................................           $0.45          $0.225         $0.113
Corn (bu).......................................................            0.27           0.135          0.068
Barley (bu).....................................................            0.20           0.100          0.050
Oats (bu).......................................................            0.05           0.025          0.013
Cotton (lb).....................................................            0.13           0.065          0.0325
Rice (cwt)......................................................            2.45           2.400          2.400
Soybeans (bu)...................................................            0.55           0.275          0.138
Other oilseeds (lb).............................................            0.01           0.005          0.0025
Grain sorghum (bu)..............................................      2002--0.31           0.135          0.068
                                                                      2003--0.27
----------------------------------------------------------------------------------------------------------------

      The amount of direct payment will be equal to the product 
of the payment rate for the contract crop for the applicable 
year, contract acreage and the payment yield.
      A final direct payment (less the amount of any initial 
payment made to the producers on the farm of the contract 
commodity) shall be made not later than September 30 of the 
fiscal year.
      A producer may elect to receive 50% of the direct payment 
in advance anytime on or after December 1 of the fiscal year. 
(Section 111)
      The Conference substitute provides that the Secretary 
shall make direct payments to eligible producers for each of 
the 2002 through 2007 crop years at a payment rate of $0.52 per 
bushel for wheat, $0.28 per bushel for corn, $0.35 per bushel 
for grain sorghum, $0.24 per bushel for barley, $0.024 per 
bushel for oats, $0.0667 per pound for upland cotton, $2.35 per 
hundredweight for rice, $0.44 per bushel for soybeans, and 
$0.008 per pound for other oilseeds.
      The amount of the direct payment will be equal to the 
product of the payment rate of the applicable base crop, the 
payment acres, and the payment yield.
      For 2002, the Secretary is directed to make payments as 
soon as practicable after the date of enactment of this Act and 
for 2002 through 2007, but not before October 1 of the calendar 
year in which the crop of the covered commodity is harvested.
      A producer may elect to receive up to 50 percent of the 
direct payment in advance in any month after December 1 of the 
calendar year before the calendar year in which the crop of the 
covered commodity is harvested. The producer may change the 
selected month for a subsequent crop year by providing advance 
notice to the Secretary.
      If a producer who receives an advance fixed decoupled 
payment ceases to be a producer or changes share before the 
date the remainder of the direct payments are to be made, the 
producer must repay the applicable amount of the advance 
payment.
      The Managers are aware that producers that elect to 
receive up to 50 percent of an advance direct payment might 
cease to be a producer on the farm before the date the 
remainder of the direct payment is made. The Managers assume 
the Secretary recognizes that different reasons exist for a 
producer ceasing to be a producer on a farm. These reasons 
would include bankruptcy, foreclosure and other similar 
situations that would preclude the producer from repaying the 
advance direct payment. Specifically, the Managers would not 
intend for this provision to apply in situations where a 
producer with winter wheat harvested a crop or failed to 
harvest the crop for weather related reasons beyond their 
control and the acreage was subsequently under the control of 
another producer that intended to plant a subsequent crop, or 
other similar situations. Conversely, the Managers expect there 
are a number of situations where the producer receiving the 
advance direct payment ceases to be a producer on the farm and 
should refund the advance direct payment. (Section 1103)
(8) Availability of Counter-Cyclical Payments
      The House bill provides that the Secretary shall make 
counter-cyclical payments relative to a covered commodity 
whenever the effective price is less than the target price.
      The target price is $4.04 per bushel for wheat, $2.78 per 
bushel for corn, $2.64 per bushel for grain sorghum, $2.39 per 
bushel for barley, $1.47 per bushel for oats, $0.736 per pound 
for upland cotton, $10.82 per hundredweight for rice, $5.86 per 
bushel for soybeans, and $0.1036 per pound for other oilseeds.
      The effective price is equal to the sum of (1) the higher 
of the national average market price during the 12-month 
marketing year for the commodity or the national average loan 
rate for the commodity, and (2) the payment rate for fixed 
decoupled payments for the commodity.
      The payment rate for counter-cyclical payments is equal 
to the difference between the target price and the effective 
price for the commodity.
      The payment amount for counter-cyclical payments is the 
product of the payment rate, the payment acres, and the payment 
yield.
      The Secretary shall make counter-cyclical payments for a 
covered commodity as soon as possible after determining that 
such payments are required.
      The Secretary may provide a partial payment up to 40 
percent of the projected counter-cyclical payment to producers 
upon completion of the first 6 months of the marketing year for 
that crop.
      The producer must repay the amount, if any, by which the 
partial payment exceeds the counter-cyclical payment to be made 
in that crop year.
      If the Secretary uses the authority to designate another 
oilseed for counter-cyclical payments the Secretary may modify 
the target price in subsection (c)(9) that would otherwise 
apply to that oilseed.
      For purposes of calculating the effective price for 
barley the Secretary shall use the loan rate in effect for 
barley under section 122(b)(3) except in the case of producers 
who received the higher loan rate provided under such section 
for barley used only forfeed purposes, the Secretary shall use 
the that higher loan rate. (Section 105)
      The Senate amendment provides that the Secretary shall 
make counter-cyclical payments relative to a contract commodity 
to owners and producers on a farm that have entered into a 
contract to receive such payments.
      The income protection price is $3.4460 per bushel for 
wheat, $2.3472 per bushel for corn, $2.3472 per bushel for 
grain sorghum, $2.1973 per bushel for barley, $1.5480 per 
bushel for oats, $0.6793 per pound for upland cotton, $9.2914 
per hundredweight for rice, $5.7431 per bushel for soybeans, 
and $0.1049 per pound for other oilseeds.
      The payment rate for counter-cyclical payments shall 
equal the difference between the income protection price and 
the total of the higher of (1) the average price of the 
contract commodity during the first 5 months of the marketing 
year of the contract commodity or the loan rate for the 
commodity, and (2) the direct payment for the contract crop for 
the fiscal year that precedes the date of payment under this 
section.
      The payment amount for counter-cyclical payments is the 
product of the payment rate for the contract crop, the contract 
acreage, and the payment yield.
      The Secretary shall make counter-cyclical payments not 
later than 190 days after the beginning of the marketing year 
for the applicable contract crop. (Section 114)
      The Conference substitute provides that the Secretary 
shall make counter-cyclical payments to producers on farms for 
which payment yields and bases acres are established with 
respect to a covered commodity whenever the effective price is 
less than the target price.
      The effective price is equal to the sum of (1) the higher 
of the national average market price during the 12-month 
marketing year for the commodity or the national average loan 
rate for the commodity, and (2) the payment rate for direct 
payments for the commodity.
      For the 2002 and 2003 crop years, the target price is 
$3.86 per bushel for wheat, $2.60 per bushel for corn, $2.54 
per bushel for grain sorghum, $2.21 per bushel for barley, 
$1.40 per bushel for oats, $0.724 per pound for upland cotton, 
$10.50 per hundredweight for rice, $5.80 per bushel for 
soybeans, and $0.098 per pound for other oilseeds.
      For the 2004 and 2007 crop years, the target price is 
$3.92 per bushel for wheat, $2.63 per bushel for corn, $2.57 
per bushel for grain sorghum, $2.24 per bushel for barley, 
$1.44 per bushel for oats, $0.724 per pound for upland cotton, 
$10.50 per hundredweight for rice, $5.80 per bushel for 
soybeans, and $0.1010 per pound for other oilseeds.
      The payment rate for counter-cyclical payments is equal 
to the difference between the target price and the effective 
price for the commodity.
      The payment amount for counter-cyclical payments is the 
product of the payment rate, the payment acres, and the payment 
yield or updated payment yield, depending on the election of 
the owner of the farm.
      If the Secretary determines that a counter-cyclical 
payment is required to be made for a covered commodity, the 
Secretary shall make the counter-cyclical payments for the crop 
as soon as practicable after the end of the 12-month marketing 
year for the covered commodity.
      If the Secretary estimates counter-cyclical payments will 
be required, the Secretary shall give producers the option to 
receive partial payments.
      When the Secretary makes partial payments for any of the 
2002 through 2006 crop years, the first partial payment for the 
crop shall be made not earlier than October 1 and to the 
maximum extent practicable, not later than October 31, of the 
calendar year in which the crop is harvested. The second 
partial payment shall be made not earlier than February 1 of 
the next calendar year and the third and final partial payment 
shall be made as soon as practicable after the end of the 12-
month marketing year for the covered commodity.
      For the 2002 through 2006 crop years, the first partial 
payment may not exceed 35 percent of the projected counter-
cyclical payment for the covered commodity for the crop year. 
The second partial payment may not exceed the difference 
between 70 percent of the revised projection of the counter-
cyclical payment for the crop of the covered commodity and the 
amount of the payment made under clause (i). The final payment 
shall be equal to the difference between the actual counter-
cyclical payment to be made to the producer and the amount of 
the first and second partial payment.
      For the 2007 crop year, the first partial payment shall 
be made after completion of the first 6 months of the marketing 
year and the second and final partial payment shall be made as 
soon as practicable after the end of the 12-month marketing 
year for the covered commodity.
      For the 2007 crop year, the first partial payment may not 
exceed 40 percent of the projected counter-cyclical payment. 
The final payment shall be equal to the difference between the 
actual counter-cyclical payment to be made to the producer and 
the amount of the partial payment.
      The producer must repay the amount, if any, by which the 
partial payment exceeds the counter-cyclical payment to be made 
in that crop year. (Section 1104)
(9) Producer Agreement Required as Condition on Provision of Fixed, 
        Decoupled Payments and Counter-Cyclical Payments
      The House bill provides that before producers on a farm 
may receive fixed, decoupled payments or counter-cyclical 
payments with respect to the farm, the producers shall agree, 
in exchange for the payments to comply with applicable 
conservation requirements, applicable wetland protection 
requirements, planting flexibility requirements and to use the 
land on the farm, in an amount equal to the base acres, for an 
agricultural or conserving use, and not for a nonagricultural 
commercial or industrial use, as determined by the Secretary.
      The Secretary may issue such rules to ensure compliance 
with these requirements.
      A producer may not be required to make repayments to the 
Secretary of fixed, decoupled payments and counter-cyclical 
payments if the farm has been foreclosed on and the Secretary 
determines that forgiving the repayments is appropriate to 
provide fair and equitable treatment. This subsection shall not 
void the responsibilities of the producer to comply with 
conservation, wetlands protection, planting flexibility and 
agriculture land use requirements if the producer continues or 
resumes operation, or control of the farm. On the resumption of 
operation or control over the farm by the producer, the above 
noted requirements in effect on the date of the foreclosure 
shall apply.
      A transfer of (or change in) the interest of a producer 
in base acres for which fixed decoupled or counter-cyclical 
payments are made shall result in the termination of the 
payments with respect to bases acres, unless the transferee or 
owner of the acreage agreesto assume all obligations under 
conservation, wetland, planting flexibility or agriculture land use 
provisions. The termination shall be effective on the date of the 
transfer or change.
      There is no restriction on the transfer of base acres or 
payment yield as part of a change in the producers on the farm.
      At the request of the transferee or owner, the Secretary 
may modify the conservation, wetlands protection, planting 
flexibility and agriculture land use requirements if the 
modifications are consistent with the objectives of such 
subsection, as determined by the Secretary.
      If a producer entitled to a fixed, decoupled payment or 
counter-cyclical payment dies, becomes incompetent, or is 
otherwise unable to receive the payment, the Secretary shall 
make the payment, in accordance with regulations prescribed by 
the Secretary.
      Requires a producer who receives fixed decoupled 
payments, counter-cyclical payments, or marketing loan 
assistance to submit acreage reports to the Secretary.
      A determination of the Secretary under this section shall 
be considered an adverse decision for purposes of availability 
of administrative review. (Section 106)
      The Senate amendment provides that under the terms of a 
contract, the owner or producer shall agree, in exchange for 
annual payments to comply with applicable highly erodible land 
conservation requirements, applicable wetland conservation 
requirements, planting flexibility requirements and to use a 
quantity of land on the farm equal to the contract acreage, for 
an agricultural or conserving use, and not for a 
nonagricultural commercial or industrial use, as determined by 
the Secretary. (Section 111)
      The Conference substitute provides that before producers 
on a farm may receive direct payments or counter-cyclical 
payments with respect to the farm, the producers shall agree, 
in exchange for the payments to comply with applicable 
conservation requirements, applicable wetland protection 
requirements, planting flexibility requirements, to use the 
land on the farm in a quantity attributable to the base acres 
for an agricultural or conserving use and not for a 
nonagricultural commercial or industrial use, as determined by 
the Secretary and on noncultivated land attributable to the 
base acres, control noxious weeds and otherwise maintain the 
land in accordance with sound agricultural practices.
      The Secretary may issue rules to ensure compliance with 
these requirements.
      At the request of the transferee or owner, the Secretary 
may modify the requirements of this subsection if the 
modifications are consistent with the objectives of such 
subsection, as determined by the Secretary.
      A transfer of (or change in) the interest of a producer 
in base acres for which direct or counter-cyclical payments are 
made shall result in the termination of the payments with 
respect to base acres, unless the transferee or owner of the 
acreage agrees to assume all obligations under conservation, 
wetland, planting flexibility, agriculture land use provisions 
and controlling noxious weeds provisions. The termination shall 
take effect on the date determined by the Secretary.
      If a producer entitled to a direct payment or counter-
cyclical payment dies, becomes incompetent, or is otherwise 
unable to receive the payment, the Secretary shall make the 
payment, in accordance with regulations prescribed by the 
Secretary.
      A producer who receives direct payments, counter-cyclical 
payments, or marketing loan benefits is required to submit 
annual acreage reports with respect to all cropland on the farm 
to the Secretary.
      The Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
      The Secretary shall provide for the sharing of direct 
payments and counter-cyclical payments among the producers on a 
farm on a fair and equitable basis.
      When there is a transfer (or change in) the interest of a 
producer in base acres for which direct or counter-cyclical 
payments are made, the Managers intend for the Secretary to 
provide a time frame for the succession to occur that is 
farmer-friendly.
      Acreage reports provide important information such as 
assisting in determining the eligibility of land to be accepted 
into the Conservation Reserve Program. The Managers are aware 
that in prior years, the Secretary has imposed penalties on 
producers that submit acreage reports that the Secretary later 
determines to be inaccurate. The Managers understand that under 
prior acreage limiting and acreage reduction programs there was 
a need for very accurate reporting. However, under this Act, 
with the exception of determining the amount of fruits, 
vegetables, and wild rice planted on base acreage, there is no 
such need or requirement for the level of accuracy. Therefore, 
under this provision the Managers do not intend for any penalty 
to be applicable to inaccurate acreage reports on covered 
commodities or peanuts, provided the producer has made a good 
faith effort to accurately report acreage. (Section 1105)
(10) Violations of Contracts
      The Senate amendment is the same as current law except 
for amending language in existing law to add a provision for a 
planting flexibility violation. Makes corrections to add:
      Planting Flexibility.--In the case of a first violation 
of the planting flexibility provisions by an eligible owner or 
producer that has entered into a contract and that acted in 
good faith, in lieu of terminating the contract under 
subsection (a), the Secretary shall require a refund or reduce 
a future contract payment under subsection (b) in an amount 
that does not exceed twice the amount otherwise payable under 
the contract on the number of acres involved in the violation. 
(Section 112)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(11) Planting Flexibility
      The House bill provides that all rules concerning 
planting flexibility are unchanged with the exception of adding 
wild rice as a prohibited crop.
      Subject to the limitations in subsection (b), any 
commodity may be planted on base acres on a farm.
      The planting of fruits, vegetables (excluding lentils, 
mung beans, and dry peas) and wild rice are prohibited on base 
acres.
      The 3 exceptions to this rule in current law are also 
unchanged.
      (1) Fruits, vegetables or wild rice may be planted on 
base acres in a region where the Secretary determines there is 
a history of double cropping of covered commodities with 
fruits, vegetables or wild rice.
      (2) Fruits, vegetables or wild rice may be planted on 
base acres on a farm that the Secretary determines has a 
history of planting fruits, vegetables or wild rice on base 
acres, except that fixed decoupled payments and counter-
cyclical payments will be reduced for each acre planted.Fruits 
and vegetables also may be planted by a producer who the Secretary 
determines has an established planting history of a specific fruit, 
vegetable or wild rice, except that the quantity planted may not exceed 
the producer's annual planting history of such agricultural commodity 
from the 1991 through 1995 crop years, as determined by the Secretary, 
and fixed, decoupled payments and counter-cyclical payments will be 
reduced for each acre planted. (Section 107)
      The Senate amendment provides that all rules concerning 
planting flexibility are unchanged with the exception of adding 
chickpeas as a permitted exception, wild rice as a prohibited 
crop for 2003 and beyond, and by changing the base period from 
1991 through 1995 to 1996 through 2001 to establish a planting 
history for a producer.
      Limitations.--The planting of the following agricultural 
commodities shall be prohibited on contract acreage: (A) 
Fruits. (B) Vegetables (other than lentils, mung beans, dry 
peas, and chickpeas). (C) In the case of the 2003 and 
subsequent crops of an agricultural commodity, wild rice;
      Same as current law except for the change in base period 
(for a producer) as noted directly below.
      Sec. 118(b)(2)(C) by striking ``1991 through 1995'' and 
inserting ``1996 through 2001''. (Section 113)
      The Conference substitute adopts the House provision with 
an amendment that provides that the planting of fruits, 
vegetables (other than lentils, mung beans and dry peas) and 
wild rice shall be prohibited on base acreage unless the 
commodity, if planted, is destroyed before harvest.
      The planting of fruits and vegetables produced on trees 
and other perennials shall be prohibited on base acres.
      The Secretary shall establish a producer planting history 
for fruits, vegetables and wild rice planted by the producers 
on the farm in the 1991 through 1995 or 1998 through 2001 crop 
years.
      For the 2002 crop year, if the calculation of base acres 
results in total base acres for a farm in excess of the 
contract acreage for the farm that was used to calculate the 
fiscal year 2002 payment, the planting of fruits, vegetables 
and wild rice on new base acres is allowed, provided the direct 
and counter-cyclical payments for the 2002 crop year are 
reduced on an acre-for-acre basis. (Section 1106)
(12) Relation to Remaining Payment Authority Under Production 
        Flexibility Contracts
      The House bill provides authority to make production 
flexibility contract payments for the 2002 fiscal year is 
terminated upon enactment. If a producer receives a PFC 
contract payment for the 2002 fiscal year before enactment of 
this legislation, the amount of the producer's fixed decoupled 
payment for fiscal year 2002 will be reduced by the amount of 
the PFC contract payment. (Section 108)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment that terminates the authority of the Secretary to 
make production flexibility contract payments on the date of 
the enactment of this Act, unless requested by the producer. 
Any direct payments due a producer under this Act would be 
reduced by any fiscal year 2002 payments made under a 
production flexibility contract. (Section 1107)
(13) Payment Limitations
      The House bill provides fixed decoupled payments and 
counter-cyclical payments are subject to the payment 
limitations contained in sections 1001 through 1001C of the 
Food Security Act of 1985 as amended. Limitations are based on 
a crop year and the fixed, decoupled limitation is $50,000 and 
the counter-cyclical limitation is $75,000. (Section 109)
      The Senate amendment amends Section 1001 of the Food 
Security Act of 1985. The total of direct and counter-cyclical 
payments that an individual or entity may receive during any 
fiscal year for program commodities shall not exceed $75,000. 
The total of marketing loan gains, forfeiture gains, gains from 
marketing certificates and loan deficiency payments that a 
person is entitled to receive for program crops, peanuts, honey 
and wool is $150,000 per crop year.
      During a fiscal and corresponding crop year, the total 
amount of payments and benefits that a married couple may 
receive from direct, counter-cyclical and marketing loan is 
$75,000 and $150,000 respectively, plus a combined total of an 
additional $50,000.
      Provides that an individual or entity shall not be 
eligible for a direct, income-protection and marketing loan 
program benefits if the average adjusted gross income of the 
individual or entity exceeds $2.5 million. (Section 169)
      The Conference substitute provides the total direct and 
counter-cyclical payments to a person for corn, grain sorghum, 
barley, oats, wheat, soybeans, minor oilseeds, cotton and rice 
may not exceed $40,000 and $65,000, respectively. The total 
marketing loan gains and loan deficiency payments for corn, 
grain sorghum, barley, oats, wheat, soybeans, minor oilseeds, 
cotton, rice, lentils, dry peas and small chickpeas that a 
person is entitled to receive is $75,000.
      Provides for a separate direct and counter-cyclical 
payment limitation for peanuts of $40,000 and $65,000, 
respectively. Provides for a separate marketing loan gain and 
loan deficiency payments limitation for peanuts, wool, mohair 
and honey of $75,000.
      Retains current rules on husband and wife, 3-entities, 
actively engaged, generic certificates and adopts the $2.5 
million adjusted gross income means test.
      The Conference substitute refers to levels of adjusted 
gross income or comparable measures of income. The Managers 
intend that the comparable measure provision be utilized when 
necessary and in cases of applicants for whom, because of their 
status under the Internal Revenue Code, adjusted gross income 
is not measured or reported. For example, participants who are 
organized as C Corporations, S Corporations, or as nonprofit 
organizations, the Managers intend for the Secretary to use 
this direction to adopt alternative income measurements that 
compare most closely to adjusted gross income. The Managers 
expect the Secretary to implement this provision in a manner 
that provides equitable treatment, to the maximum extent 
practicable to all producers regardless of the legal structure 
of their farming operation.
      For purposes of subsection (b), the Managers expect the 
Secretary to determine the individual or entity to be 
ineligible only if the adjusted gross income or similar 
equivalent exceeds $2.5 million and less than 75 percent of the 
adjusted gross income is derived from farming, ranching or 
forestry operations as determined by the Secretary. (Section 
1603)
(14) Period of Effectiveness
      The House bill provides that the subtitle is effective 
from the 2002 crop yearthrough the 2011 crop year. (Section 
110)
      The Senate amendment provides that the term of a contract 
shall extend through the 2006 crop, unless earlier terminated 
by the eligible owners or producers on a farm. (Section 111)
      The Conference substitute adopts the House provision with 
an amendment that the subtitle is effective through the 2007 
crop year. (Section 1109)
(15) Pilot Program for Farm Counter-Cyclical Savings Accounts
      The Senate amendment amends Subtitle B of title I of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C 
7211 et seq.) to authorize and fund a pilot program for farm 
counter-cyclical savings accounts. Eligible producers may 
establish such accounts in the name of the producer in a bank 
or financial institution selected by the producer and approved 
by the Secretary of Agriculture. A savings account shall 
consist of B contributions of the producer; matching 
contributions of the Secretary; and interest earned on account 
balances.
      To be eligible, a producer must share in the risk of 
producing an agricultural commodity for the applicable year; 
have filed a farm business-related federal income tax return 
during each of the previous 5 years, or be a beginning farmer 
or rancher, and have at least $50,000 in average adjusted gross 
farm revenue, except for limited resource farmers as determined 
by the Secretary.
      An eligible producer may deposit such amounts in the 
account of the producer as the producer considers appropriate. 
The Secretary shall provide a matching contribution on the 
amount deposited by the producer into the account, except that 
matching contributions may not exceed 2 percent of the 
producer's average adjusted gross farm revenue, or $5,000 for 
any applicable fiscal year. The Secretary shall provide the 
required matching contributions for a producer as of the date 
that a majority of the commodities grown by the producer are 
harvested.
      In any year, a producer may withdraw funds from the 
account in an amount up to the difference between 90 percent of 
the producer's average adjusted gross revenue and the producers 
adjusted gross revenue in that year. A producer that ceases to 
be actively engaged in farming, as determined by the Secretary, 
may withdraw the full balance from, and close, the account; and 
may not establish another account.
      The Secretary shall administer this program through the 
Farm Service Agency and local, county, and area offices of the 
Agriculture Department. For each of fiscal years 2003 through 
2005, the Secretary shall establish a farm counter-cyclical 
savings account pilot program in 3 States, as determined by the 
Secretary. The total amount of matching contributions in a 
State may not exceed $4 million per State for each of fiscal 
years 2003 through 2005. (Section 114)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

  subtitle b--marketing assistance loans and loan deficiency payments

(16) Availability of Nonrecourse Marketing Assistance Loans for Covered 
        Commodities
      The House bill provides that the Secretary shall make 
available to producers on a farm nonrecourse marketing 
assistance loans for covered commodities produced on the farm, 
including extra long staple cotton, for each of the 2002 
through 2011 crop years.
      Any production of a covered commodity on a farm is 
eligible for a marketing assistance loan.
      Producers that would otherwise be eligible for the 
assistance, but for the fact the covered commodity is 
commingled with covered commodities of other producers in 
facilities unlicensed for the storage of commodities, if the 
producer obtaining the loan agrees to immediately redeem the 
loan collateral.
      Producers are required to comply with applicable 
conservation requirements and applicable wetland protection 
requirements as a condition to receiving marketing loan 
assistance.
      Extra long staple cotton is defined.
      Marketing assistance loans for the 2002 crop of covered 
commodities shall not be made under subtitle C of title I of 
such Act. (Section 121)
      The Senate amendment provides that the Secretary shall 
make available to producers on a farm nonrecourse marketing 
assistance loans for loan commodities produced on the farm 
through the 2006 crop.
      The FAIR Act is amended by striking the definition of 
eligible production and redefining as: Eligible Production.--
The producers on a farm shall be eligible for a marketing loan 
under subsection (a) for any quantity of a loan commodity 
produced on the farm.
      Sec. 169 may restrict quantity. (Section 121)
      The Conference substitute provides that the Secretary 
shall make available to producers on a farm nonrecourse 
marketing assistance loans for loan commodities produced on the 
farm, including extra long staple cotton, wool, mohair, honey, 
dry peas, lentils and small chickpeas for each of the 2002 
through 2007 crop years.
      Any production of a loan commodity on a farm is eligible 
for a marketing assistance loan, however loan commodities 
harvested for hay and silage, and unshorn pelts are eligible 
only for a loan deficiency payment.
      The Secretary shall make loans to producers that would 
otherwise be eligible for the assistance, but for the fact the 
loan commodity is commingled with loan commodities of other 
producers in facilities unlicensed for the storage of 
commodities, if the producer obtaining the loan agrees to 
immediately redeem the loan collateral.
      Producers are required to comply with applicable 
conservation requirements and applicable wetland protection 
requirements as a condition to receiving marketing loan 
assistance.
      Marketing assistance loans for the 2002 crop of loan 
commodities shall not be made under subtitle C of title I of 
the Federal Agriculture Improvement and Reform Act of 1996.
      Beginning with the 2002 crop, the Managers intend for 
marketing loan and loan deficiency program benefits to be made 
available for all farms producing loan commodities, regardless 
of whether the farm does or does not have base acreage. 
(Section 1201)
(17) Loan Rates for Nonrecourse Marketing Assistance Loans
      The House bill provides loan rates (per bushel or pound, 
as applicable) are maintained at not more than $2.58 for wheat, 
$1.89 for corn and grain sorghum, $1.65 for barley except not 
more than $1.70 for barley used only for feed purposes, $1.21 
for oats, $0.5192 for upland cotton (and not less than $0.50), 
$0.7965 for extra long staple cotton,$4.92 for soybeans, and 
$0.087 for other oilseeds, and equal to $6.50 per cwt. for rice.
      Amends section 162(b) of the FAIR Act by striking ``this 
title'' and inserting ``this title and title I of the Farm 
Security Act of 2001''. (Section 122)
      The Senate amendment provides loan rates are $2.9960 per 
bushel for wheat, $2.0772 per bushel for corn and grain 
sorghum, $1.9973 per bushel for barley, $1.4980 per bushel for 
oats, $0.5493 per pound for upland cotton, $0.7965 per pound 
for extra long staple cotton, $6.4914 per hundredweight for 
rice, $5.1931 per bushel for soybeans, $0.0949 per pound for 
other oilseeds, $6.78 per hundredweight for dry peas, $12.79 
per hundredweight for lentils, $17.44 per hundredweight for 
large chickpeas and $8.10 per hundredweight for small 
chickpeas.
      Sec. 132(b)(1) of the FAIR Act. No change from existing 
law except instead of referencing ``commodity'', ``loan 
commodity'' is referenced.
      Sec. 132(b)(2) of the FAIR Act is consistent with Sec 
162(b) of existing law. Sec. 123(b) Repeals Sec. 162(c) of 
current law, but Sec. 171(b)(2) repeals Sec. 123(b). (Section 
123)
      The Conference substitute provides for loan rates for the 
2002 and 2003 crop years that are different than loan rates for 
the 2004 through 2007 crop years for most crops.
      Loan rates for the 2002 and 2003 crop years are $2.80 per 
bushel for wheat, $1.98 per bushel for corn, $1.98 per bushel 
for grain sorghum, $1.88 per bushel for barley, $1.35 per 
bushel for oats, $0.52 per pound for upland cotton, $0.7977 per 
pound for extra long staple cotton, $5.00 per bushel for 
soybeans, $0.096 per pound for other oilseeds, and $6.50 per 
hundredweight for rice, $6.33 per hundredweight for dry peas, 
$11.94 per hundredweight for lentils and $7.56 per 
hundredweight for small chickpeas.
      Loan rates for the 2004 through 2007 crop years are $2.75 
per bushel for wheat, $1.95 per bushel for corn, $1.95 per 
bushel for grain sorghum, $1.85 per bushel for barley, $1.33 
per bushel for oats, $0.52 per pound for upland cotton, $0.7977 
per pound for extra long staple cotton, $5.00 per bushel for 
soybeans, $0.093 per pound for other oilseeds, and $6.50 per 
hundredweight for rice, $6.22 per hundredweight for dry peas, 
$11.72 per hundredweight for lentils and $7.43 per 
hundredweight for small chickpeas.
      Loan rates for the 2002 through 2007 crop years are $1.00 
per pound for graded wool, $0.40 per pound for ungraded wool 
and unshorn pelts and $4.20 per pound for mohair.
      Loan rate for the 2002 through 2007 crop years for honey 
is $0.60 per pound.
      The Managers anticipate the Secretary will take advantage 
of the change in national average loan rates to review and 
adjust as appropriate the county loan rates.
      To the extent practicable, for purposes of making loans 
and loan deficiency payments, the Secretary should designate 
loan rates in those units that are consistent with the units in 
common usage in the industry.
      It is the intention of the Committee that the provision 
for non-graded wool be made available for wool that has not 
been objectively measured for fiber diameter (micron) and 
yield. Documentation of objective measurement is commonly known 
as a core test, which is available through laboratory analysis. 
It is the intent of the Mangers that the Secretary provide the 
graded wool loan rate to wool that meets the terminology used 
by the wool industry to define graded wool, such as core 
tested. (Section 1202)
(18) Term of Loans
      The House bill provides that the term for marketing 
assistance loans is unchanged. For all covered commodities 
except upland cotton and extra long staple cotton, the term of 
the loan is nine months beginning on the first day of the first 
month after the month in which the loan is made.
      For upland cotton and extra long staple cotton, the term 
of the loan is 10 months beginning on the first day of the 
month in which the loan is made.
      Prohibits extension of a marketing assistance loan for a 
covered commodity. (Section 123)
      The Senate amendment provides that the term for marketing 
assistance loans for all commodities shall be 9 months 
beginning on the first day of the first month after the month 
in which the loan is made. (Section 124)
      The Conference substitute adopts the Senate provision 
with respect to the term of loans and adopts the House 
provision with respect to the prohibition on extension of 
loans. (Section 1203)
(19) Repayment of Loans
      The House bill provides repayment of marketing assistance 
loans is unchanged. The Secretary will permit producers of 
wheat, corn, grain sorghum, barley, oats, soybeans, and other 
oilseeds to repay a marketing assistance loan at a rate that is 
the lesser of the loan rate for the commodity plus interest or 
a rate that the Secretary determines will minimize forfeitures, 
accumulation of stocks, storage costs, and allow the commodity 
to be marketed freely and competitively.
      The Secretary will permit producers of upland cotton and 
rice to repay a marketing assistance loan at a rate that is the 
lesser of the loan rate for the commodity plus interest or the 
prevailing world market price (adjusted to U.S. quality and 
location), as determined by the Secretary.
      The Secretary will permit producers of extra long staple 
cotton to repay a marketing assistance loan at the loan rate 
plus interest.
      The Secretary will prescribe by regulation the formula to 
determine the prevailing world market price and a mechanism to 
periodically announce this price.
      The adjustment of the prevailing world market price for 
upland cotton is unchanged.
      In the case of a producer that marketed or lost 
beneficial interest before repaying the loan, the Secretary 
shall permit the producer to repay the loan at the lowest 
repayment rate that was in effect for the covered commodity 
under this section as of the date that the producer lost 
beneficial interest. (Section 124)
      The Senate amendment amends Section 134(a) of the FAIR 
Act by striking the reference to wheat, corn, grain sorghum, 
barley, oats and oilseeds and inserting ``a loan commodity 
(other than upland cotton, rice, and extra long staple 
cotton)'' (in effect, adding wool, honey, dry peas, lentils and 
chickpeas to the list of commodities) and adding ``minimize 
discrepancies in marketing loan benefits across State 
boundaries and across county boundaries'' to the other 4 
factors the Secretary is required to use in determining a loan 
repayment rate.
      Amends Sec. 1001 of the Food Security Act of 1985. Sec. 
1001(c) Limitations on marketing loan gains, loan deficiency 
payments, and commodity certificate transactions and Sec. 
1001(d) Settlement of certain loans may restrict the 
eligibility of some producersto repay loans at a lower 
repayment rate.
      Amends Sec. 134(e)(1) of the FAIR Act by authorizing the 
program through July 31, 2007. (Section 125, 121, and 169)
      The Conference substitute permits producers of wheat, 
corn, grain sorghum, barley, oats, soybeans, other oilseeds, 
dry peas, lentils, small chickpeas, wool, mohair, and honey to 
repay a marketing assistance loan at a rate that is the lesser 
of the loan rate for the commodity plus interest or a rate that 
the Secretary determines will minimize forfeitures, 
accumulation of stocks, storage costs, allow the commodity to 
be marketed freely and competitively, and minimizes 
discrepancies in marketing loan benefits across State 
boundaries and county boundaries.
      The Secretary will permit producers of upland cotton and 
rice to repay a marketing assistance loan at a rate that is the 
lesser of the loan rate for the commodity plus interest or the 
prevailing world market price (adjusted to U.S. quality and 
location), as determined in accordance with section 163 of the 
FAIR Act.
      The Secretary will permit producers of extra long staple 
cotton to repay a marketing assistance loan at the loan rate 
plus interest as determined in accordance with section 163 of 
the FAIR Act.
      The Secretary will prescribe by regulation the formula to 
determine the prevailing world market price for upland cotton 
and rice and a mechanism to periodically announce this price.
      The adjustment of the prevailing world market price for 
upland cotton is unchanged.
      For the 2001 crop, in the case of a producer that 
marketed or lost beneficial interest before repaying the loan, 
the Secretary shall permit the producer to repay the loan at 
the appropriate repayment rate that was in effect for the loan 
commodity under as of the date that the producer lost 
beneficial interest, if the Secretary determines the producers 
acted in good faith.
      The Managers intend that in determining loan repayment 
rates for loan commodities other than upland cotton and rice, 
the Secretary will consider alternative methodologies, 
including establishing the Posted County Prices for grains and 
oilseeds at levels that reflect market prices at both terminal 
markets for counties with two terminal markets. The Managers 
expect the Secretary to determine whether assigning equal 
weight to two terminal markets will better reflect local market 
prices than the current system of using the higher of the two 
terminal markets to establish the Posted County Price.
      In implementing the marketing assistance loan program for 
minor oilseeds, the Managers expect the Secretary to establish 
a single sunflower loan rate in each county for oil-type, 
confection and other-type sunflowers combined. Managers also 
expect the Secretary to continue to announce weekly loan 
repayment rates for sunflowers reflecting local market prices 
that minimize potential loan forfeitures. Accordingly, 
sunflower seed loan repayment rates should reflect oil-type 
sunflower seed local market prices.
      The Conference substitute established a marketing 
assistance loan program for pulse crops--dry peas, lentils and 
small chickpeas. The loan rate for dry peas is based on U.S. 
feed pea prices; the loan rate for lentils is based on the 
price of U.S. No. 3 lentils; and the loan rate for small 
chickpeas is based on the price of chickpeas that drop below a 
20/64 screen. Accordingly, the Managers expect the Secretary to 
calculate regional pulse loan rates and repayment rates based 
on the prices of feed peas, No. 3 lentils, and chickpeas that 
drop below a 20/64 screen. (Section 1204)
(20) Loan Deficiency Payments
      The House bill provides loan deficiency payments are 
maintained. The Secretary will make loan deficiency payments 
available to producers who, although eligible for a marketing 
assistance loan, agree to forgo a loan in favor of receiving a 
payment.
      The loan deficiency payment is determined by multiplying 
the loan payment rate by the quantity of the covered commodity 
produced, excluding any commodity for which the producer 
obtained a loan.
      The loan payment rate is the amount by which the loan 
rate exceeds the rate at which the loan may be repaid.
      Loan deficiency payments do not apply to extra long 
staple cotton.
      The Secretary shall make a loan deficiency payment on the 
earlier of the date the producer marketed or lost beneficial 
interest in the commodity, or the date the producer requests 
the payment.
      Provides for loan deficiency payments on crop year 2001 
covered commodities on farms that do not have an AMTA contract. 
(Section 125)
      The Senate amendment amends Sec. 135 of the FAIR Act. 
Makes loan deficiency payments available to producers on a farm 
that, although eligible to obtain a marketing assistance loan 
with respect to a loan commodity, agree to forgo obtaining the 
loan in return for payments under this section.
      Strikes subsections (e) and (f) of section 135 of the 
FAIR Act and inserts language comparable to the House provision 
except the provision is applicable for the 2001-2006 crops. The 
Secretary shall make a loan deficiency payment only if the 
producer has beneficial interest in the loan commodity as of 
the earlier of the date on which the producers on the farm 
marketed or otherwise lost beneficial interest in the loan 
commodity or the date the producers on the farm request the 
payment.
      Amends section 135(a)(2) to provide for loan deficiency 
payments on crop year 2001 contract commodities on farms that 
do not have a production flexibility contract. (Section 126)
      The Conference substitute provides for the continuation 
of loan deficiency payments. The Secretary will make loan 
deficiency payments available to producers who, although 
eligible for a marketing assistance loan, agree to forgo a loan 
in favor of receiving a payment.
      Unshorn pelts, hay and silage derived from a loan 
commodity are not eligible for a marketing assistance loan, 
however the commodities are eligible for loan deficiency 
payments when unshorn pelts, hay or silage are derived from a 
loan commodity.
      The loan deficiency payment is determined by multiplying 
the payment rate by the quantity of the loan commodity 
produced, excluding any commodity for which the producer 
obtained a loan.
      The payment rate is the amount by which the loan rate 
exceeds the rate at which the loan may be repaid.
      Provides that the loan deficiency payment for unshorn 
pelts is based on the rate in effect for ungraded wool and the 
loan deficiency payment for hay and silage is based on the loan 
commodity from which the hay and silage is derived.
      Loan deficiency payments do not apply to extra long 
staple cotton.
      The Secretary shall make a loan deficiency payment on the 
date the producerrequests the payment.
      Provides for loan deficiency payments on crop year 2001 
loan commodities on farms that do not have an AMTA contract.
      For the 2001 crop, the Secretary shall make a loan 
deficiency payment on the earlier of the date the producer 
marketed or lost beneficial interest in the loan commodity, or 
the date the producer requested the payment. (Section 1205)
(21) Payments in Lieu of Loan Deficiency Payments for Grazed Acreage
      The House bill provide that the Secretary will make 
payments in lieu of loan deficiency payments for grazed acreage 
to producers that would be eligible for such a loan deficiency 
payment for wheat, barley, or oats but elects to use the 
acreage planted to the crops for livestock grazing.
      To receive a payment, the producer must agree to forgo 
any other harvesting of the commodity on that acreage.
      The payment amount is determined by multiplying the loan 
deficiency payment rate by the payment quantity, which is 
determined by multiplying the quantity of grazed acreage in 
which the producer elects to forgo harvesting by the payment 
yield.
      The time, manner, and availability of these payments are 
to be consistent with the general loan deficiency payment and 
marketing assistance loan provisions for wheat, barley, and 
oats.
      Producers who receive a loan deficiency payment under 
this section are ineligible for crop insurance or noninsured 
crop assistance as to that acreage. (Section 126)
      The Senate amendment adds Sec. 138 to Subtitle C of the 
FAIR Act. The Secretary will make payments in lieu of loan 
deficiency payments for grazed acreage to producers that would 
be eligible for such a loan deficiency payment for wheat, grain 
sorghum, barley, or oats but who elect to use the acreage 
planted to the crops for livestock grazing.
      To receive a payment, the producer must agree to forgo 
any other harvesting of the commodity on that acreage.
      The payment amount is determined by multiplying the loan 
deficiency payment rate by the payment quantity, which is 
determined by multiplying the quantity of grazed acreage in 
which the producer elects to forgo harvesting by the payment 
yield.
      The time, manner, and availability of these payments are 
to be consistent with the general loan deficiency payment and 
marketing assistance loan provisions for wheat, grain sorghum, 
barley, and oats.
      Producers who receive a loan deficiency payment under 
this section are ineligible for crop insurance or noninsured 
crop assistance as to that acreage. (Section 127)
      The Conference substitute adopts the House provision with 
an amendment that provides payments to producers with triticale 
for grazing when the producer agrees to forgo any other 
harvesting of the acreage.
      For purposes of determining the loan deficiency payment 
to be used in calculating the payment for the grazing of 
triticale acreage only, the Managers intend for the Secretary 
to take into account the predominate class of wheat grown in 
the county in which the farm is located. (Section 1206)
(22) Special Marketing Loan Provisions for Upland Cotton
      The House bill provides that the special marketing loan 
provisions for upland cotton remain unchanged, including 
provisions relating to cotton user marketing certificates, the 
special import quota, and the limited global import quota for 
upland cotton.
      Authorizes through July 31, 2012. (Section 127)
      The Senate amendment amends section 136(a) of the FAIR 
Act by adding language that removes the 1.25-cent threshold for 
Step-2 cotton payments beginning on the date of enactment of 
this paragraph and ending on July 31, 2003.
      Amends Sec. 136 of the FAIR Act by authorizing program 
through July 31, 2007. (Section 121 and 128)
      The Conference substitute adopts the House provision with 
an amendment that accepts the Senate provision removing the 
1.25-cent threshold for cotton Step-2 payments through July 31, 
2006. (Section 1207)
(23) Special Competitive Provisions for Extra Long Staple Cotton
      The House bill provides that the special competitive 
provisions for extra long staple cotton remain unchanged, 
including provisions relating to the competitiveness program, 
payments under the program, eligibility, and the amount and 
form of payment. (Section 128)
      The Senate amendment amends Sec. 136(A)(a) of the FAIR 
Act by authorizing the program through July 31, 2007. (Section 
121)
      The Conference substitute adopts the House provisions 
through July 31, 2008. (Section 1208)
(24) Availability of Recourse Loans for High Moisture Feed Grains and 
        Seed Cotton and other Fibers
      The House bill provides that the availability of recourse 
loans for high moisture feed grains and seed cotton remains 
unchanged. Authority under the FAIR Act to provide this 
assistance for the 2002 crop year is terminated. (Section 129)
      The Senate amendment amends Sec. 137 of the FAIR Act by 
authorizing the loans through the 2006 crops. Otherwise retains 
current law. (Section 121)
      The Conference substitute adopts the House provision with 
an amendment that provides that a loan under this subsection 
shall be made on a quantity of acquired grain determined by 
multiplying the acreage in a high moisture state on the farm by 
the lower of the farm program payment yield used for counter-
cyclical payments under subtitle A or the actual yield on a 
field, as determined by the Secretary. (Section 1209)
(25) Availability of Nonrecourse Marketing Assistance Loans for Wool 
        and Mohair
      The House bill provides that the Secretary will make 
nonrecourse marketing assistance loans available to producers 
of wool and mohair for the 2002 through 2011 marketing years.
      The graded wool loan rate is not more than $1.00 per 
pound. The non-graded wool loan rate is not more than $0.40 per 
pound. The mohair loan rate is not more than $4.20 per pound.
      The term of the loan is one year beginning on the first 
day of the first month after the month in which the loan is 
made.
      Producers may repay the loan at a rate that is the lesser 
of the loan rate established for the commodity plus interest or 
at a rate that the Secretary determines will 
minimizeforfeitures, accumulation of stocks, storage costs, and that 
allows the commodity to be marketed freely and competitively.
      Loan deficiency payments are also authorized to those 
producers who agree to forgo obtaining a loan.
      The loan payment rate shall be the amount by which the 
loan rate in effect for the commodity exceeds the rate at which 
a loan may be repaid.
      The Secretary shall make a loan deficiency payment on the 
earlier of the date the producer marketed or lost beneficial 
interest in the commodity or the date the producer requests the 
payment.
      The marketing loan gains and loan deficiency payment a 
producer may receive under the wool and mohair program is 
subject to a separate but equal payment limitation than other 
covered commodities receiving marketing loan benefits. (Section 
130)
      The Senate amendment amends Sec. 132 of the FAIR Act. 
Loan rates are $1.00 per pound for graded wool, $0.40 per pound 
for nongraded wool and unshorn pelts. The Senate amendment 
contains no provisions for mohair.
      Amends Sec. 133 of the FAIR Act to establish a 9-month 
loan term for all loan commodities.
      Amends Sec. 134(a) of the FAIR Act to provide loan 
repayment rate criteria for wool and other loan commodities. 
(Section 123, 124 and 125)
      The Conference substitute accepts the House provisions 
with an amendment that adds unshorn pelts as a commodity 
eligible for a loan deficiency payment. In addition, all 
marketing loan and loan deficiency provisions for wool and 
mohair are integrated into the same sections in subtitle B as 
for other loan commodities.
(26) Availability of Nonrecourse Marketing Assistance Loans for Honey
      The House bill provides that the Secretary will make 
nonrecourse marketing assistance loans available to producers 
of honey for the 2002 through 2011 marketing years.
      The honey loan rate shall be equal to $0.60 per pound.
      The term of the loan is one year beginning on the first 
day of the first month after the month in which the loan is 
made.
      Producers may repay the loan at a rate that is the lesser 
of the loan rate established for the commodity plus interest or 
at the prevailing domestic market price for honey.
      Loan deficiency payments are also authorized to those 
producers who agree to forgo obtaining a loan.
      The loan payment rate shall be the amount by which the 
loan rate in effect for the commodity exceeds the rate at which 
a loan may be repaid.
      The Secretary shall make a loan deficiency payment on the 
earlier of the date the producer marketed or lost beneficial 
interest in the commodity or the date the producer requests the 
payment.
      The marketing loan gains and loan deficiency payment a 
producer may receive under the honey program is subject to a 
separate but equal payment limitation than other covered 
commodities receiving marketing loan benefits.
      This section shall be carried out in a manner as to 
minimize forfeitures of honey. (Section 131)
      The Senate amendment amends Sec. 132 of the FAIR Act. 
Loan rate is $0.60 per pound.
      Amends Sec. 133 of the FAIR Act to establish a 9-month 
loan term for all loan commodities.
      Amends Sec. 134(a) of the FAIR Act to provide loan 
repayment rate criteria for honey and other loan commodities. 
(Section 123, 124, and 125)
      The Conference substitute accepts the House provisions 
with an amendment that includes honey in the same marketing 
loan and loan deficiency sections as for other loan commodities 
in subtitle B.
(26) Availability of Nonrecourse Marketing Assistance Loans for Dry 
        Peas, Lentils and Chickpeas
      The Senate amendment amends Sec. 132 of the FAIR Act. 
Loan rate for dry peas is $6.78 per hundredweight, loan rate 
for lentils is $12.79 per hundredweight, loan rate for large 
chickpeas is $17.44 per hundredweight, and loan rate for small 
chickpeas is $8.10 per hundredweight.
      Amends Sec. 133 of the FAIR Act to establish a 9-month 
loan term for all loan commodities.
      Amends Sec. 134(a) of the FAIR Act to provide loan 
repayment rate criteria for dry peas, lentils, chickpeas and 
other loan commodities. (Section 123, 124, and 125)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that provides a loan rate for the 2002 and 
2003 crop years at $7.56 per hundredweight for small chickpeas, 
$11.94 per hundredweight for lentils and $6.33 per 
hundredweight for dry peas.
      Provides a loan rate for the 2004 through 2007 crop years 
at $7.43 per hundredweight for small chickpeas, $11.72 per 
hundredweight for lentils and $6.22 per hundredweight for dry 
peas. (Section 1202)
(28) Producer Retention of Erroneously Paid Loan Deficiency Payments 
        and Marketing Loan Gains
      The House bill provides that neither the Secretary nor 
CCC shall require producers in Erie County, Pennsylvania, to 
repay 1998 and 1999 loan deficiency payments and marketing loan 
gains erroneously paid or determined to have been earned. In 
the case of a producer who has already made repayment, CCC 
shall reimburse the producer the full amount of the repayment. 
(Section 132)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 1618)

                     Subtitle C--Other Commodities

                            Chapter 1--Dairy

(29) Milk Price Support Program
      The House bill provides that the Milk Price Support 
Program is authorized through December 31, 2011 at a rate of 
$9.90/cwt on a 3.67% milk fat basis. The Secretary is 
authorized to purchase butter, nonfat dry milk powder or cheese 
at established prices in order to maintain the $9.90/cwt 
support price. The purchase prices for butter and nonfat dry 
milk powder may be allocated so as to minimize expenditures 
from the Commodity Credit Corporation. The Secretary may modify 
purchase prices for butter and nonfat dry milk not more than 2 
times per year. (Section 141)
      The Senate amendment amends the Federal Agriculture 
Improvement and Reform Act of 1996 extending the price support 
program through December 31, 2006. It also retains provisions 
of the 1996 Act to provide that at the program's termination, 
it shall be considered to have expired notwithstanding section 
257 (relating to the baseline) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 907). (Section 
131)
      The Conference substitute adopts the House provision 
(including an enduring budgetary baseline) with an amendment 
providing for the program's operation through December 31, 
2007.
(30) Repeal of Recourse Loan Program For Processors
      The House bill provides that the Recourse Loan Program 
for Processors (7 U.S.C. 7252) is repealed (Section 142)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision. 
P.L. 107-76 repealed the Recourse Loan Program.
(31) Extension of Dairy Export Incentive and Dairy Indemnity Programs
      The House bill provides that the Dairy Export Incentive 
Program (15 U.S.C. 713a-14(a)) is extended through 2011. The 
Dairy Indemnity Program (7 U.S.C. 4501) is extended through 
2011. (Section 143)
      The Senate amendment extends the Dairy Export Incentive 
Program and the Dairy Indemnity Program through 2006. (Section 
133)
      The Conference substitute adopts the House provision with 
an amendment to extend both programs through 2007.
(32) Fluid Milk Promotion
      The House bill provides that the Fluid Milk Processor 
Promotion Program (7 U.S.C. 6402) is amended to repeal the 
termination of authority, and to make technical changes to the 
definitions of ``Fluid Milk Product'' and ``Fluid Milk 
Processor.'' (Section 144)
      The Senate amendment is similar with technical amendments 
within the definition of fluid milk processor regarding 
exclusion for products delivered directly to the place of 
residence of a consumer. (Section 134)
      The Conference substitute adopts the Senate provision.
(33) Dairy Product Mandatory Reporting
      The House bill provides that the Dairy Product Mandatory 
Reporting (7 U.S.C. 1637a(1)) is amended to make technical 
corrections regarding products to be reported. (Section 145)
      The Senate amendment is similar with technical amendments 
regarding the definition of manufactured dairy products. 
(Section 135)
      The Conference substitute adopts the Senate provision.
      The managers want to ensure the enforcement of federal 
standards of identity that apply for fluid milk products 
purchased by the federal government for distribution in all 
federally supported feeding and nutrition programs. If the 
Secretary of Health and Human Services determines that the 
federal standards are not being enforced, the Secretary is 
urged to develop and implement procedures for the enforcement 
of federal standards of identity for fluid milk products 
purchased by the federal government within 1 year of enactment 
of this legislation.
(34) Funding of Dairy Promotion and Research Program
      The House bill provides that the Dairy Promotion Program 
(7 U.S.C. 4502) is amended to require dairy importers to pay an 
assessment equivalent to domestic dairy producers. Importers 
would be eligible to vote in referenda and would have 
representation on the National Dairy Promotion and Research 
Board. (Section 146)
      The Senate amendment is the same (Section 136)
      The Conference substitute adopts the House provision with 
amendments to authorize the Secretary of Agriculture to 
reapportion the representation levels of domestic producers and 
importers to reflect a proportion of domestic production and 
imports supplying the United States market; to make clear that 
assessments from importers will not be used for foreign export 
promotion purposes; to clarify when the importer must pay the 
assessment; to make clear that the domestic milk rate shall be 
applied to imports on a milk-equivalent basis; to make clear 
that national dairy promotion program and order must promote 
milk and dairy products without regard to origin; and to 
require that in implementing an order under this section, the 
Secretary consults with the United States Trade Representative 
in order to ensure consistency with the international trade 
obligations of the United States.
      The Conferees note that since 1990, the provisions of 7 
U.S.C. 2278 have been in effect and apply generally to research 
and promotion programs administered by the Department of 
Agriculture. Those provisions require that the Secretary 
consult with the U.S. Trade Representative when research and 
promotion orders are modified or implemented to apply to 
imported products, and take steps to ensure that international 
trade obligations are met. The Conferees intend that the 
similar provision included specifically in the conference 
substitute with respect to assessments on imports for the dairy 
promotion program not be regarded as being in conflict with 
current law.
(35) Study of National Dairy Policy and Studies of Effects of Changes 
        in Approach to National Dairy Policy and Fluid Milk Identity 
        Standards
      The House bill requires the Secretary of Agriculture to 
conduct an economic analysis of various options for a National 
Dairy Program and report to Congress not later than April 30, 
2002. (Section 147)
      The Senate amendment requires studies of the effects of 
terminating all Federal dairy programs and establishing 
regional compacts, and a study of the effects of establishing 
minimum protein standards to be reported to Congress not later 
than September 30, 2002. (Section 137)
      The Conference substitute adopts the both the House and 
Senate provisions with an amendment to require that each report 
be issued one year after the date of enactment of this Act.
(36) National Dairy Program
      The Senate amendment creates a national dairy support 
program with two components. The National Dairy Market Loss 
Assistance Program is authorized from December 1, 2001, through 
September 30, 2005. The program covers producers in statesnot 
included in the Northeast Dairy Market Loss Payment program. Payment is 
calculated by taking 40% of the difference between the all-milk price 
and the historical five-year average multiplied by eligible production. 
Eligible production is based on taking the lesser of (A) the average 
quantity of milk marketed for commercial use in which the producer has 
had a direct or indirect interest during each of the 1999 through 2001 
fiscal years, (B) 8,000,000 pounds, or (C) actual production for the 
time period. The program is capped at $1.5 billion.
      The Northeast Dairy Market Loss Payment program is 
authorized from December 1, 2001 through September 30, 2005. 
The program covers the states of Connecticut, Delaware, Maine, 
Maryland, Massachusetts, New Hampshire, New Jersey, New York, 
Pennsylvania, Rhode Island, Vermont, and West Virginia. Payment 
is based on a target price of $16.94. Eligible production is 
based on the lesser of (A) the average quantity of milk 
marketed for commercial use in which the producer had a direct 
or indirect interest during each of the 1999 through 2001 
fiscal years, (B) 8,000,000 pounds, or (C) actual production 
for the time period. The program is capped at $500 million. 
(Section 132)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision to 
create a single national program using the payment formula 
established under the proposed Northeast Dairy Market Loss 
Assistance Program. Under this program, participating dairy 
producers will receive monthly payments equal to 45 percent of 
the difference between $16.94 and the price per hundredweight 
of Class I fluid milk in Boston under the applicable federal 
milk marketing order. No payments will be made for months 
during which the fluid milk price in Boston is $16.94 or 
higher. Payments will be made not later than 60 days after the 
end of the month for which a payment is made. Producers, on an 
operation-by-operation basis, may receive payments on no more 
than 2.4 million pounds of milk marketed per year. Retroactive 
payments will be made covering market losses due to low prices 
since December 1, 2001. The program is authorized through 
September 30, 2005.
      The Managers understand that previous Dairy Market Loss 
Assistance Programs provided discretion to the Secretary to 
limit payments to individual dairy operations. It is the intent 
of the Managers that this program shall be administered in the 
same manner, thereby limiting payments on an operation-by-
operation basis. Accordingly, a producer might qualify for 
separate limits on separate operations.
      The managers intend that in carrying out this section, 
the Secretary utilize information available through the 
Agricultural Marketing Service monthly milk marketing's by 
producers.

                            Chapter 2--Sugar

(37) Sugar Program
      The House bill subsection (a) reauthorizes the sugar 
program through the 2011 crop year.
      Subsection (b) terminates the marketing assessment on 
sugar effective October 1, 2001.
      Subsection (c) provides the Secretary of Agriculture the 
discretion to reduce loan rates for U.S. sugar producers in the 
event that support for foreign competitors is reduced beyond 
that required under the Agreement on Agriculture.
      Subsection (d) ensures that notification requirements do 
not frustrate the purposes of the nonrecourse loan program.
      Subsection (e) authorizes nonrecourse loans on in-process 
sugars.
      Subsection (f) requires the Secretary of Agriculture to 
administer the sugar program at no net cost to the federal 
government to the maximum extent practicable. The subsection 
also authorizes the CCC to accept bids from processors for the 
purchase of sugar inventory in exchange for reduced production.
      Subsection (g) establishes reporting guidelines for 
producers and importers relative to yields and acreage planted 
and amounts imported. Requires reporting by sugar cane 
producers in proportionate share states.
      Subsection (h) makes section 163 of the FAIR Act 
inapplicable to sugar. (Section 151)
      The Senate amendment subsection (i) reauthorizes the 
sugar program through the 2006 crop year.
      Subsection (c) terminates the marketing assessment on 
sugar effective October 1, 2001.
      Subsection (a) provides the Secretary of Agriculture the 
discretion to reduce loan rates for U.S. sugar producers in the 
event that support for foreign competitors is reduced beyond 
that required under the Agreement on Agriculture.
      Paragraph (2) of subsection (b) ensures that notification 
requirements do not frustrate the purposes of the nonrecourse 
loan program.
      Subsection (e) authorizes nonrecourse loans on in-process 
sugars.
      Subsection (f) requires the Secretary of Agriculture to 
administer the sugar program at no net cost to the federal 
government to the maximum extent practicable and subject to 
subsection (e)(3) (which bars the Secretary from imposing pre 
notification requirements as a condition to forfeiture). The 
subsection also authorizes the CCC to accept bids from 
processors for the purchase of sugar inventory in exchange for 
reduced production.
      Subsection (g) establishes reporting guidelines for 
producers and importers relative to yields and acreage planted 
and amounts imported. Loan assistance is conditioned on 
reporting by sugar cane producers located in proportionate 
share states.
      Subsection (j) makes section 163 of the FAIR Act 
inapplicable to sugar.
      Subsection (b)(1) modifies provisions to assure that loan 
benefits are passed through to producers by allowing beet 
producers to contract minimum payments and by providing for the 
use of CCC funds to compensate producers in the event of 
bankruptcy or insolvency of the processor.
      Subsection (h) allows substitutability of all refined 
sugar for re-export. (Section 141)
      The Conference substitute adopts the Senate sugar 
provisions, with technical and clarifying amendments, except 
that the provision providing for the use of CCC funds to 
compensate producers in the event of processor bankruptcy or 
insolvency is excluded.
(38) Reauthorize Provisions of Agricultural Adjustment Act of 1938 
        Regarding Sugar
      The House bill subsection (a) repeals repetitive 
reporting provisions.
      Subsection (b) requires the Secretary to establish 
marketing allotments for domestically grown sugar to eliminate 
forfeitures through 2011.
      Subsection (c) updates the allotment formula to take into 
account current U.S. import obligations. The subsection also 
assigns allotments between sugarcane and sugarbeets. Finally 
the subsection authorizes the Secretary to suspend allotments whenever 
imports exceed a certain level.
      Subsection (d) updates the base periods and other factors 
applicable to the allocation of sugarcane and sugar beet 
allotments among sugarcane and sugar beet processors, 
respectively.
      Subsection (e) establishes procedures for the Secretary 
to reassign allotments if a processor cannot meet the 
allocation.
      Subsection (f) prescribes the manner in which allotment 
disputes are settled and provides for certain adjustments in 
the event a processor closes.
      Subsection (g) allows the Secretary to preserve certain 
acreage base history for a longer period and also defines the 
term ``offshore states''.
      Subsection (h) lifts the suspension on allotments for the 
2002 crop. (Section 152)
      The Senate amendment subsection (a) repeals repetitive 
reporting provisions.
      Subsection (b) requires the Secretary to establish 
marketing allotments for domestically grown sugar to eliminate 
forfeitures through 2006.
      Subsection (c) updates the allotment formula to take into 
account current U.S. import obligations. The subsection also 
assigns allotments between sugarcane and sugar beets. Finally 
the subsection authorizes the Secretary to suspend allotments 
whenever imports exceed a certain level.
      Subsection (d) updates the base periods and other factors 
applicable to the allocation of sugarcane and sugar beet 
allotments among sugarcane and sugar beet processors, 
respectively. Adds provisions for new entrant states. Provides 
formula for beet sugar allocation.
      Subsection (e) establishes procedures for the Secretary 
to reassign allotments if a processor cannot meet the 
allocation.
      Subsection (f) prescribes the manner in which allotment 
disputes are settled and provides for certain adjustments in 
the event a processor closes.
      Subsection (g) allows the Secretary to preserve certain 
acreage base history for a longer period and also defines the 
term ``offshore states''.
      Sec. 165(2)(A) strikes the suspension of price support 
authority for sugar. (Section 143)
      The Conference substitute adopts the Senate sugar 
provisions, with technical and clarifying amendments.
      Subsections (b)(1)(D) and (b)(2)(C) of section 359(e) of 
the Agricultural Adjustment Act of 1938, as amended by section 
1403 of the conference agreement, provide for the reassignment 
of unused marketing allotments for cane sugar and beet sugar, 
respectively to imports of sugar under certain specified 
conditions. It is the intent of the conferees that in the event 
that any allotments are reassigned to imports, the appropriate 
agency shall accommodate the allotted imports by increasing the 
tariff-rate quota for sugar in an amount equal to the total 
amount of the allotments reassigned to imports. By doing so, 
the market balance sought by the allotment system should be 
maintained and will not result in a reduction in the overall 
allotment quantity, a suspension of the allotments, or any 
increase in the prospect of the forfeiture of domestically 
produced sugar to the Commodity Credit Corporation.
(39) Storage Facility Loans
      The House bill subsection (a) requires the CCC to amend 
the Code of Federal Regulations to establish a sugar storage 
facility loan program. Subsection (b) requires the CCC to make 
such loans to processors of domestically produced sugar that 
have satisfactory credit history, that need increased storage, 
and that demonstrate an ability to repay the loan. Subsection 
(c) provides for a 7-year term for the loan. Subsection (d) 
requires the program be administered using the services, 
facilities, and funds of the CCC. (Section 153)
      The Senate amendment subsection (a) requires the CCC to 
amend the Code of Federal Regulations to establish a sugar 
storage facility loan program. Subsection (b) requires the CCC 
to make such loans to processors of domestically produced sugar 
that have satisfactory credit history, that need increased 
storage, and that demonstrate an ability to repay the loan. 
Subsection (c) provides for a 7-year term for the loan. 
(Section 142)
      The Conference substitute adopts the Senate provision.
(40) Reallocation of Sugar Quota
      The Senate amendment requires the U.S. Trade 
Representative in consultation with the Secretary, by June 1 of 
each year, to determine the amount of the quota of cane sugar 
used by each qualified supplying country for that country for 
that fiscal year. The Trade Representative may reallocate the 
unused quota. (Section 144)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment 
with technical amendments.

                           Chapter 3--Peanuts

(41) Definitions
      The House bill defines terms necessary for implementation 
of this act, including counter-cyclical payment, effective 
price, historic peanut producer, fixed, decoupled payment, 
payment acres, peanut acres, payment yield, peanut producer, 
Secretary, State, target price, and United States. (Section 
161)
      The Senate amendment defines terms necessary for 
implementation of this act, including counter-cyclical payment, 
direct payment, effective price, historical peanut producers on 
a farm, income protection price, payment acres, peanut acres, 
payment yield, and peanut producer. (Section 151)
      The Conference substitute adopts the House provision with 
an amendment that clarifies the definition of ``producer'', 
changes the term ``peanut acres'' to ``base acres for 
peanuts'', changes the term ``fixed, decoupled payment'' to 
``direct payment'', and provides 2002 transitional payment 
language under the term ``payment acres''. (Section 1301)
(42) Establishment of Payment Yield, Peanut Acres, and Payment Acres 
        for a Farm
      The House bill provides that the Secretary shall 
determine, for each historic peanut producer, the average yield 
for peanuts on each farm on which the historic peanut producer 
produced peanuts for the 1998 through 2001 crops years, 
excluding any crop year in which the producer did not produce 
peanuts.
      If, for any of these four crop years in which peanuts 
were planted on a farm by the producer, the farm would have 
satisfied the eligibility criteria established to carry out 
section 1102 of the Agriculture, Rural Development, Food and 
Drug Administration, andRelated Agencies Appropriations Act 
1999, the Secretary shall assign a yield for the producer for that year 
equal to 65 percent of the county yield, as determined by the 
Secretary. (Section 162)
      The Secretary shall determine, for each historic peanut 
producer, the four-year average of acreage actually planted in 
peanuts by the historic peanut producer for harvest on one or 
more farms during crop years 1998, 1999, 2000, and 2001 and any 
acreage that the producer was prevented from planting to 
peanuts during such crops years because of drought, flood or 
other natural disaster, or other condition beyond the control 
of the producer, as determined by the Secretary.
      If more than one historic peanut producer shared in the 
risk of producing the crop on the farm, the historic peanut 
producers shall receive their proportional share of the number 
of acres planted (or prevented from being planted) to peanuts 
for harvest on the farm based on the sharing arrangement that 
was in effect among the producers for the crop.
      The Secretary shall make the determinations required by 
this subsection not later than 90 days after the date of the 
enactment of this Act. In making such determinations, the 
Secretary shall take into account changes in the number and 
identity of persons sharing in the risk of producing a peanut 
crop since the 1998 crop year, including providing a method for 
the assignment of average acres and average yield to a farm 
when the historic peanut producer is no longer living or an 
entity composed of historic peanut producers has been 
dissolved.
      The Secretary shall give each historic peanut producer an 
opportunity to assign the average peanut yield and average 
acreage determined under subsection (a) for the producer to 
cropland on a farm.
      The average of all of the yields assigned by historic 
peanut producers to a farm shall be deemed to be the payment 
yield for that farm for the purpose of making fixed, decoupled 
payments and counter-cyclical payments under this chapter.
      Subject to subsection (e), the total number of acres 
assigned by historic peanut producers to a farm shall be deemed 
to be the peanut acres for a farm for the purpose of making 
fixed, decoupled payments and counter-cyclical payments under 
this chapter.
      The opportunity to make the assignments described in 
subsection (b) shall be available to historic peanut producers 
only once. The historic peanut producers shall notify the 
Secretary of the assignments made by such producers under such 
subsections not later than 180 days after the date of the 
enactment of this Act.
      The payment acres for peanuts on a farm shall be equal to 
85 percent of the peanut acres assigned to the farm.
      If the sum of the peanut acres for a farm, together with 
the base acres for the farm under subtitle A, any acreage on 
the farm enrolled in the conservation reserve program or 
wetlands reserve program, and any other acreage on the farm 
enrolled in a conservation program for which payments are made 
in exchange for not producing an agricultural commodity on the 
acreage, exceeds the actual cropland acreage of the farm, the 
Secretary shall reduce the quantity of peanut acres for the 
farm or base acres for one of more covered commodities for the 
farm as necessary so that sum of peanut acres and other covered 
acreage does not exceed the actual cropland acreage of the 
farm. The Secretary shall give the peanut producers on the farm 
the opportunity to select the peanut acres or base acres 
against which the reduction will be made.
      In applying paragraph (1), the Secretary shall make an 
exception in the case of double cropping as determined by the 
Secretary (Section 162)
      The Senate amendment provides that the Secretary shall 
determine, for each historical peanut producer, the average 
yield for peanuts on all farms of the historical peanut 
producer for the 1998 through 2001 crop years, excluding any 
crop year during which the producers did not produce peanuts.
      If, for any of the crop years in which peanuts were 
planted on a farm by the historical peanut producer, the 
historical peanut producer has satisfied the eligibility 
criteria established to carry out section 1102 of the 
Agriculture, Rural Development, Food and Drug Administration, 
and Related Agencies Appropriations Act, 1999, the Secretary 
shall assign to the historical peanut producer a yield for the 
farm for the crop year equal to 65 percent of the average yield 
for peanuts for the previous 5 crop years.
      Except as provided in paragraph (3), the Secretary shall 
determine, for the historical peanut producer, the 4-year 
average of acreage planted to peanuts on all farms for harvest 
during the 1998 through 2001 crop years, and any acreage that 
was prevented from being planted to peanuts during the crop 
years because of drought, flood or other natural disaster, or 
other condition beyond the control of the historical peanut 
producer, as determined by the Secretary.
      If a county in which a historical peanut producer is 
located is declared a disaster area during 1 or more of the 
four crop years, for purposes of determining the 4-year average 
acreage for the historical peanut producer, the historical 
peanut producer may elect to substitute, for not more than 1 
year of the crop years during which a disaster is declared (A) 
the State average of acreage actually planted to peanuts; or 
(B) the average of acreage for the historical peanut producer 
determined by the Secretary under paragraph (2)
      The Secretary shall make the determinations required by 
this subsection not later than 90 days after the date of 
enactment of this section. In making the determinations, the 
Secretary shall take into account changes in the number and 
identity of historical peanut producers sharing in the risk of 
producing a peanut crop since the 1998 crop year, including 
providing a method for the assignment of average acres and 
average yield to a farm when a historical peanut producer is no 
longer living or an entity composed of historical peanut 
producers has been dissolved.
      The Secretary shall provide each historical peanut 
producer with an opportunity to assign the average peanut yield 
and average acreage determined under subsection (a) for the 
historical peanut producer to cropland on a farm
      The average of all of the yields assigned by historical 
peanut producers to a farm shall be considered to be the 
payment yield for the farm for the purpose of making direct 
payments and counter-cyclical payments under this chapter.
      Subject to subsection (e), the total number of acres 
assigned by historical peanut producers to a farm shall be 
considered to be the peanut acres for the farm for the purpose 
of making direct payments and counter-cyclical payments under 
this chapter
      Not later than 180 days after the date of enactment of 
this section, a historical peanut producer shall notify the 
Secretary of the assignments described in subsection (b).
      The payment acres for peanuts on a farm shall be equal to 
85 percent of the peanut acres assigned to the farm.
      If the total of the peanut acres for a farm, together 
with the contract acreage for the farm under subtitle B, any 
acreage on the farm enrolled in the conservation reserveprogram 
or wetlands reserve program, and any other acreage on the farm enrolled 
in a conservation program for which payments are made in exchange for 
not producing an agriculture commodity on the acreage, exceeds the 
actual cropland acreage of the farm, the Secretary shall reduce the 
quantity of peanut acres for the farm or contract acreage for one or 
more covered commodities for the farm as necessary so that the total of 
the peanut acres and other covered acreage does not exceed the actual 
cropland acreage of the farm. The Secretary shall give the peanut 
producers on the farm the opportunity to select the peanut acres or 
contact acreage against which the reduction will be made.
      In applying paragraph (1), the Secretary shall take into 
account additional acreage as a result of an established 
double-cropping history on a farm, as determined by the 
Secretary. (Section 151)
      The Conference substitute adopts the House provision with 
an amendment. The amendment allows the historic peanut producer 
to elect to substitute for a farm, for not more than 3 of the 
1998 through 2001 crop years in which the producer planted 
peanuts on the farm, the average yield for peanuts produced in 
the county in which the farm is located for the 1990 through 
1997 crop years.
      The amendment requires the historic peanut producer to 
assign average base acreage and average yield to a farm by 
March 31, 2003. In addition, the amendment sets a series of 
criteria that a historic peanut producer must meet for them to 
assign average base acreage and average yield across state 
lines. The Secretary shall provide notice to historic peanut 
producers regarding their opportunity to assign average peanut 
yields and average acreages to farms. The amendment states that 
the notice shall include: notice that the opportunity to make 
the assignments is being provided once, a description of the 
limitation of assigning average acres and average yields across 
state lines, and information regarding the manner in which the 
assignments must be made and the time periods and manner in 
which the notice of the assignments must be submitted to the 
Secretary.
      The amendment further states the Secretary shall provide 
for an adjustment in the base acres for peanuts for a farm 
whenever a conservation reserve contract with respect to the 
farm expires or is voluntarily terminated, or the Secretary 
releases cropland from coverage under a conservation reserve 
contract. Also included is a provision to allow the owner of a 
farm to reduce at any time the base acres for peanuts assigned 
to the farm. (Section 1302)
      The Managers are aware that AMTA contract acreage was not 
protected on acreage enrolled into CRP during CRP signups 15 
and later. The Managers intend that the Secretary develop a 
method that provides for the restoration of base acreage on 
farms that permanently reduced contract acreage because of 
enrollment in CRP. Since soybeans and other oilseeds did not 
have contract acreage prior to this Act, the Managers expect 
the Secretary to treat soybeans and other oilseeds in a manner 
that is similar and consistent with other covered commodities. 
(Section 1302)
(43) Availability of Fixed, Decoupled Payments for Peanuts
      The House bill provides that for each of the 2002 through 
2011 crop years, the Secretary shall make fixed, decoupled 
payments to peanut producers on a farm. The payment rate used 
to make fixed, decoupled payments with respect to peanuts for a 
crop year shall be equal to $36 per ton.
      The amount of the fixed, decoupled payment to be paid to 
the peanut producers on a farm for a covered commodity for a 
crop year shall be equal to the product of the payment rate, 
the payment acres and the payment yield.
      Fixed, decoupled payments shall be paid not later than 
September 30 of each of the fiscal years 2002 through 2011. In 
the case of the 2002 crop, payments may begin to be made on or 
after December 1, 2001.
      At the option of a peanut producer, 50 percent of the 
fixed, decoupled payment for a fiscal year shall be paid on a 
date selected by the peanut producer. The selected date shall 
be on or after December 1 of that fiscal year, and the peanut 
producer may change the selected date for a subsequent fiscal 
year by providing advance notice to the Secretary.
      If a peanut producer that receives an advance fixed, 
decoupled payment for a fiscal year ceases to be a peanut 
producer before the date the fixed, decoupled payment would 
otherwise have been made by the Secretary, the peanut producer 
shall be responsible for repaying the Secretary the full amount 
of the advance payment. (Section 163)
      The Senate amendment provides that for each of the 2002 
through 2006 fiscal years, the Secretary shall make direct 
payments to peanut producers on a farm with peanut acres under 
section 158B and a payment yield for peanuts under section 
158B. The payment rate used to make direct payments with 
respect to peanuts for a fiscal year shall be equal to $0.018 
per pound.
      The amount of the direct payment to be paid to the peanut 
producers on a farm for peanuts for a fiscal year shall be 
equal to the product obtained by multiplying the payment rate, 
the payment acres, and the payment yield.
      The Secretary shall make direct payments in the case of 
the 2002 fiscal year, during the period beginning December 1, 
2001, and ending September 30, 2002; and in the case of each of 
the 2003 through 2006 fiscal years, not later than September 30 
of the fiscal year.
      At the option of the peanut producers on a farm, the 
Secretary shall pay 50 percent of the direct payment for a 
fiscal year for the producers on the farm on a date selected by 
the peanut producers on the farm. The selected date for a 
fiscal year shall be on or after December 1 of the fiscal year. 
The peanut producers on a farm may change the selected date for 
a subsequent fiscal year by providing advance notice to the 
Secretary.
      If any peanut producer on a farm that receives an advance 
direct payment for a fiscal year ceases to be eligible for a 
direct payment before the date the direct payment would have 
been made by the Secretary, the peanut producer shall be 
responsible for repaying the Secretary the full amount of the 
advance payment. (Section 151)
      The Conference substitute adopts the House provision with 
an amendment to clarify payment rules for the 2002 crop year by 
directing the Secretary to make direct payments to historic 
peanut producers for the 2002 crop year. For each of the 2003 
through 2007 crop years for peanuts, the Secretary shall make 
direct payments to the producers on a farm to which a payment 
yield and base acres for peanuts are assigned under section 
1302.
      The payment rate used to make direct payments with 
respect to peanuts for a crop year shall be equal to $36 per 
ton. (Section 1303)
(43) Availability of Counter-Cyclical Payment for Peanuts
      The House bill provides that during the 2002 through 2011 
crop years for peanuts, the Secretary shall make counter-
cyclical payments with respect to peanuts whenever the 
Secretary determines that the effective price for peanuts is 
less than the target price.
      The effective price for peanuts is equal to the sum of 
higher of either (A) the national average market price received 
by peanut producers during the 12-month marketing year for 
peanuts, as determined by the Secretary; or (B) the national 
average loan rate for a marketing assistance loan for peanuts 
in effect for the same period under this chapter; and the 
payment rate in effect under section 163 for the purpose of 
making fixed, decoupled payments.
      The target price for peanuts is $480 per ton.
      The payment rate for counter-cyclical payments is equal 
to the difference between the target price for peanuts and the 
effective price for the peanuts.
      The amount of the counter-cyclical payment to be paid to 
the peanut producers on a farm for a crop year shall be equal 
to the product of the payment rate, the payment acres, by the 
payment yield.
      The Secretary shall make counter-cyclical payments for a 
peanut crop as soon as possible after determining that such 
payments are required for that crop year.
      The Secretary may permit, and, if so permitted, a peanut 
producer may elect to receive, up to 40 percent of the 
projected counter-cyclical payment, as determined by the 
Secretary, to be made under this section for a peanut crop upon 
completion of the first six months of the marketing year for 
that crop. The peanut producer shall repay the Secretary the 
amount, if any, by which the partial payment exceeds the actual 
counter-cyclical payment to be made for that crop. (Section 
164)
      The Senate amendment provides for each of the 2002 
through 2006 crops of peanuts, the Secretary shall make 
counter-cyclical payments with respect to peanuts if the 
Secretary determines that the effective price for peanuts is 
less than the income protection price for peanuts.
      The effective price for peanuts is equal to the total of 
the greater of either (A) the national average market price 
received by peanut producers during the 12-month marketing year 
for peanuts or (B) the national average loan rate for a 
marketing assistance loan for peanuts under section 158G in 
effect for the 12-month marketing year for peanuts under this 
chapter; and the payment rate in effect for peanuts under 
section 158C for the purpose of making direct payments with 
respect to peanuts.
      The income protection price for peanuts is $520 per ton.
      The amount of the counter-cyclical payment to be paid to 
the peanut producers on a farm for a crop year shall be equal 
to the product obtained by multiplying the payment rate, the 
payment acres, by the payment yield.
      The payment rate used to make counter-cyclical payments 
with respect to peanuts for a crop year shall be equal to the 
difference between the income protection price for peanuts and 
the effective price for peanuts.
      The Secretary shall make counter-cyclical payments to 
peanut producers on a farm under this section for a crop of 
peanuts as soon as practicable after determining under 
subsection (a) that the payments are required for the crop 
year.
      At the option of the Secretary, the peanut producers on a 
farm may elect to receive up to 40 percent of the projected 
counter-cyclical payment to be made under this section for a 
crop of peanuts on completion of the first six months of the 
marketing year for the crop. The peanut producers on a farm 
shall repay to the Secretary the amount, if any, by which the 
payment received by producers on the farm (including partial 
payments) exceeds the counter-cyclical payment the producers on 
the farm are eligible for under this section. (Section 151)
      The Conference substitute adopts the Senate provision 
with an amendment to clarify payment rules for the 2002 crop 
year by directing the Secretary to make counter-cyclical 
payments to historic peanut producers for the 2002 crop year. 
For each of the 2003 through 2007 crop years for peanuts, the 
Secretary shall make counter-cyclical payments to the producers 
on a farm to which a payment yield and base acres for peanuts 
are assigned under section 1302.
      The amendment changes the effective price definition to 
state the effective price for peanuts is equal to the sum of 
the higher of (a) the national average market price for peanuts 
received by producers during the 12-month marketing year for 
peanuts or (b) the national average loan rate for a marketing 
assistance loan for peanuts in effect for the applicable period 
under this subtitle; plus the payment rate in effect under 
section 1303 for the purpose of making direct payments.
      If before the end of the 12-month marketing year, the 
Secretary estimates that counter-cyclical payments will be 
required under this section for a crop year, the Secretary 
shall give producers on a farm (or, in the case of the 2002 
crop year, historic peanut producers) the option to receive 
partial payments of the counter-cyclical payment projected to 
be made for that crop.
      When the Secretary makes partial payments for any of the 
2002 through 2006 crop years the first partial payment for the 
crop year shall be made not earlier than October 1, and, to the 
maximum extent practicable, not later than October 31, of the 
calendar year in which the crop is harvested; the second 
partial payment shall be made not earlier than February 1 of 
the next calendar year; and the final payment shall be made as 
soon as practicable after the end of the 12-month marketing 
year for that crop.
      When the Secretary makes partial payments available for 
the 2007 crop year the first partial payment shall be made 
after completion of the first 6 months of the marketing year 
for that crop; and the final partial payment shall be made as 
soon as practicable after the end of the 12-month marketing 
year for that crop.
      In the case of the 2002 crop year, the first partial 
payment to an historic peanut producer may not exceed 35 
percent of the projected counter-cyclical payment for the crop 
year, as determined by the Secretary. The second partial 
payment may not exceed the difference between 70 percent of the 
revised projection of the counter-cyclical payment for the 2002 
crop year and the amount of the first partial payment. The 
final payment shall be equal to the difference between the 
actual counter-cyclical payment to be made to the historic 
peanut producer and the amount of the partial payment already 
made to the historic peanut producers under clauses (i) and 
(ii).
      For each of the 2003 through 2006 crop years, the first 
partial payment to the producers on a farm may not exceed 35 
percent of the projected counter-cyclical payment for the crop 
year, as determined by the Secretary. The second partial 
payment may not exceed the difference between 70 percent of the 
revised projection of the counter-cyclical payment for the 2002 
crop year and the amount of the first partial payment. The 
final payment shall be equal to the difference between the 
actual counter-cyclical payment to be made to the producers for 
that crop year and the amount of the partial payment already 
made to the producers under clauses (i) and (ii) for that crop 
year.
      For the 2007 crop year, the first partial payment to the 
producers on a farm may not exceed 40 percent of the projected 
counter-cyclical payment for that crop year, as determined by 
the Secretary. The final payment for the 2007 crop year shall 
be equal to the difference between the actual counter-cyclical 
payment to be made to the producers for that crop year and the 
amount of the partial payment made to the producers under 
clause (i).
      The producers on a farm (or, in the case of the 2002 crop 
year, historic peanut producers) must repay the amount, if any, 
by which the partial payment exceeds the counter-cyclical 
payment to be made in that crop year. (Section 1304)
      The target price for peanuts shall be equal to $495 per 
ton. (Section 1304)
(45) Producer Agreement Required As Condition on Provision of Fixed, 
        Decoupled Payments and Counter-Cyclical Payments
      The House bill provides that before the peanut producers 
on a farm may receive fixed, decoupled payments or counter-
cyclical payments with respect to the farm, the peanut 
producers shall agree, in exchange for the payments to comply 
with applicable conservation and wetland protection 
requirements, to comply with the planting flexibility 
requirements, and to use the land on the farm, in an amount 
equal to the peanut acres for an agriculture or conserving use.
      The Secretary may issue such rules as the Secretary 
considers necessary to ensure peanut producer compliance with 
the requirements of paragraph (1).
      A peanut producer may not be required to make repayments 
to the Secretary of fixed, decoupled payments and counter-
cyclical payments if the farm has been foreclosed on and the 
Secretary determines that the forgiving the repayments is 
appropriate to provide fair and equitable treatment.
      This subsection shall not void the responsibilities of 
the peanut producer under subsection (a) if the peanut producer 
continues or resumes operation or control of the farm.
      On the resumption of operation or control over the farm 
by the producer, the requirements of subsection (a) in effect 
on the date of foreclosure shall apply.
      Except as provided in paragraph (4), a transfer or change 
in the interest of a peanut producer in peanut acres for which 
fixed, decoupled payments or counter-cyclical payments are made 
shall result in the termination of the payments with respect to 
the peanut acres, unless the transferee or owner of the acreage 
agrees to assume all obligations under subsection (a). The 
termination shall be effective on the date of the transfer or 
change.
      There is no restriction on the transfer of a farm's 
peanut acres or payment yield as part of a change in the peanut 
producers on the farm.
      At the request of the transferee or owner, the Secretary 
may modify the requirements of subsection (a) if the 
modifications are consistent with the objectives of such 
subsection, as determined by the Secretary.
      If a peanut producer entitled to a fixed, decoupled 
payment or counter-cyclical payment dies, becomes incompetent, 
or is otherwise unable to receive payment, the Secretary shall 
make the payment, in accordance with regulations prescribed by 
the Secretary.
      As a condition on the receipt of any benefits under this 
chapter, the Secretary shall require peanut producers to submit 
to the Secretary acreage reports.
      In carrying out this chapter, the Secretary shall provide 
adequate safeguards to protect the interests of tenants and 
sharecroppers.
      The Secretary shall provide for the sharing of fixed, 
decoupled payments and counter-cyclical payments among the 
peanut producers on a farm on a fair and equitable basis. 
(Section 165)
      The Senate amendment provide that before the peanut 
producers on a farm may receive direct payments or counter 
cyclical payments with respect to the farm, the peanut 
producers on the farm shall agree during the fiscal year or 
crop year, respectively, for which the payments are received, 
in exchange for payments to comply with applicable highly 
erodible land conservation requirements, to comply with 
applicable wetland conservation requirements, to comply with 
planting flexibility requirements, and to agree to use a 
quantity of the land on the farm equal to peanut acres for an 
agriculture or conserving use.
      The Secretary may promulgate such regulations as the 
Secretary considers necessary to ensure peanut producer 
compliance with paragraph (1).
      The Secretary shall not require the peanut producers on a 
farm to repay a direct payment or counter-cyclical payment if a 
foreclosure has occurred with respect to the farm and the 
Secretary determines that forgiving the repayment is 
appropriate to provide fair and equitable treatment.
      This subsection shall not void the responsibilities of 
the peanut producers on a farm under subsection (a), if the 
peanut producers on the farm continue or resume operation, or 
control, of the farm.
      On the resumption of operation or control over the farm 
by the peanut producers on the farm, the requirements of 
subsection (a) in effect on the date of the foreclosure shall 
apply.
      Except as provided in paragraph (5), a transfer of or 
change in the interest of the peanut producers on a farm in 
peanut acres for which direct payments or counter-cyclical 
payments are made shall result in the termination of the 
payments with respect to the peanut acres, unless the 
transferee or owner of the acreage agrees to assume all 
obligations under subsection (a). The termination takes effect 
on the date of the transfer or change.
      The Secretary shall not impose any restrictions on the 
transfer of the peanut acres or payment yield of a farm as part 
of a transfer or change described in paragraph (1).
      At the request of the transferee or owner, the Secretary 
may modify the requirements of subsection (a) if the 
modifications are consistent with the purposes of subsection 
(a), as determined by the Secretary.
      If a peanut producer entitled to a direct payment or 
counter-cyclical payment dies, becomes incompetent, or is 
otherwise unable to receive the payment, the Secretary shall 
make the payment, in accordance with regulations promulgated by 
the Secretary.
      As a condition on the receipt of any benefits under this 
chapter, the Secretary shall require the peanut producers on a 
farm to submit to the Secretary acreage reports for the farm.
      In carrying out this chapter, the Secretary shall provide 
adequate safeguards to protect the interests of tenants and 
sharecroppers.
      The Secretary shall provide for the sharing of direct 
payments and counter-cyclical payments among the peanut 
producers on a farm on a fair and equitable basis. (Section 
151)
      The Conference substitute provides that before producers 
on a farm may receive direct payments or counter-cyclical 
payments with respect to the farm, the producers shall agree, 
in exchange for the payments to comply with applicable 
conservation requirements, applicable wetland protection 
requirements, planting flexibility requirements, to use the 
land on the farm in a quantity attributable to the base acres 
for an agricultural or conserving use and not for a 
nonagricultural commercial or industrial use, as determined by 
the Secretary and on noncultivated land attributable to the 
base acres, control noxious weeds and otherwise maintain the 
land in accordance with sound agricultural practices.
      The Secretary may issue rules to ensure compliance with 
these requirements.
      At the request of the transferee or owner, the Secretary 
may modify the requirements of this subsection if the 
modifications are consistent with the objectives of such 
subsection, as determined by the Secretary.
      A transfer of (or change in) the interest of a producer 
in base acres for which direct or counter-cyclical payments are 
made shall result in the termination of the payments with 
respect to bases acres, unless the transferee or owner of the 
acreage agrees to assume all obligations under conservation, 
wetland, planting flexibility, agriculture land use provisions 
and controlling noxious weeds provisions. The termination shall 
take effect on the date determined by the Secretary.
      If a producer entitled to a direct payment or counter-
cyclical payment dies, becomes incompetent, or is otherwise 
unable to receive the payment, the Secretary shall make the 
payment, in accordance with regulations prescribed by the 
Secretary.
      A producer who receives direct payments, counter-cyclical 
payments, or marketing loan benefits is required to submit 
annual acreage reports with respect to all cropland on the farm 
to the Secretary.
      The Secretary shall provide adequate safeguards to 
protect the interests of tenants and sharecroppers.
      The Secretary shall provide for the sharing of direct 
payments and counter-cyclical payments among the producers on a 
farm on a fair and equitable basis.
      When there is a transfer (or change in) the interest of a 
producer in base acres for which direct or counter-cyclical 
payments are made, the Managers intend for the Secretary to 
provide a time frame for the succession to occur that is 
farmer-friendly.
      Acreage reports provide important information such as 
assisting in determining the eligibility of land to be accepted 
into the Conservation Reserve Program. The Managers are aware 
that in prior years, the Secretary has imposed penalties on 
producers that submit acreage reports that the Secretary later 
determines to be inaccurate. The Managers understand that under 
prior acreage limiting and acreage reduction programs there was 
a need for very accurate reporting. However, under this Act, 
with the exception of determining the amount of fruits, 
vegetables, and wild rice planted on base acreage, there is no 
such need or requirement for the level of accuracy. Therefore, 
under this provision the Managers do not intend for any penalty 
to be applicable to inaccurate acreage reports on covered 
commodities or peanuts, provided the producer has made a good 
faith effort to accurately report acreage. (Section 1305)
(46) Planting Flexibility
      The House bill provides that generally, producers may 
plant any commodity on the peanut acres of a farm, except 
fruits and vegetables (other than lentils, mung beans, and dry 
peas), and wild rice.
      Paragraph (1) shall not limit the planting of an 
agriculture commodity in (A) any region in which there is a 
history of double-cropping of peanuts with agriculture 
commodities specified in paragraph (1), as determined by the 
Secretary, in which case the double-cropping shall be 
permitted; (B) on a farm that the Secretary determines has a 
history of planting agriculture commodities specified in 
paragraph (1) on peanut acres, except that fixed, decoupled 
payments and counter-cyclical payments shall be reduced by an 
acre for each acre planted to such an agriculture commodity; or 
(C) by a peanut producer who the Secretary determines has an 
established planting history of a specific agriculture 
commodity specified in paragraph (1), except that the quantity 
planted may not exceed the peanut producer's average annual 
planting history of such agriculture commodity in the 1991 
through 1995 crop years (excluding any crop year in which no 
plantings were made); and fixed decoupled payments and counter-
cyclical payments shall be reduced by an acre for each acre 
planted to such agriculture commodity. (Section 166)
      The Senate amendment provides that generally, producers 
may plant any commodity on the peanut acres of a farm, except 
fruits and vegetables (other than lentils, mung beans, and dry 
peas), and in the case of the 2003 and subsequent crops of an 
agriculture commodity, wild rice.
      Paragraph (1) shall not limit the planting of an 
agriculture commodity in (A) any region in which there is a 
history of double-cropping of peanuts with agriculture 
commodities specified in paragraph (1), as determined by the 
Secretary, in which case the double-cropping shall be 
permitted; (B) on a farm that the Secretary determines has a 
history of planting agriculture commodities specified in 
paragraph (1) on peanut acres, except that direct payments and 
counter-cyclical payments shall be reduced by an acre for each 
acre planted to the agriculture commodity; or (C) by the peanut 
producers on a farm that the Secretary determines has an 
established planting history of a specific agriculture 
commodity specified in paragraph (1), except that the quantity 
planted may not exceed the average annual planting history of 
the agricultural commodity by the peanut producers on the farm 
during the 1996 through 2001 crop years (excluding any crop 
year in which no plantings were made), as determined by the 
Secretary and direct payments and counter-cyclical payments 
shall be reduced by an acre for each acre planted to the 
agriculture commodity. (Section 151)
      The Conference substitute adopts the House provision with 
an amendment that provides that the planting of fruits, 
vegetables (other than lentils, mung beans and dry peas) and 
wild rice shall be prohibited on base acreage unless the 
commodity, if planted, is destroyed before harvest.
      The planting of fruits and vegetables produced on trees 
and other perennials shall be prohibited on base acres.
      The Secretary shall establish a producer planting history 
for fruits, vegetables and wild rice planted by the producers 
on the farm in the 1991 through 1995 or 1998 through 2001 crop 
years. (Section 1306)
(47) Marketing Assistance Loans and Loan Deficiency Payments for 
        Peanuts
      The House bill provides that for each of the 2002 through 
2011 crop of peanuts, the Secretary shall make available to 
peanut producers on a farm non-recourse marketingassistance 
loans for peanuts produced on the farm. Any production of peanuts on a 
farm shall be eligible for a marketing assistance loan.
      In carrying out this subsection, the Secretary shall make 
loans to a peanut producer that is otherwise eligible to obtain 
a marketing assistance loan, but for the fact the peanuts owned 
by the peanut producer are commingled with other peanuts in 
facilities unlicensed for the storage of agricultural 
commodities by the Secretary or a State licensing authority, if 
the peanut producer obtaining the loan agrees to immediately 
redeem the loan collateral in accordance with section 166 of 
the Federal Improvement and Reform Act of 1996.
      A marketing assistance loan and loan deficiency payments 
may be obtained at the option of the peanut producer through a 
designated marketing association of peanut producers that is 
approved by the Secretary; or the Farm Service Agency.
      The loan rate for a marketing assistance loan for peanuts 
shall be equal to $350 per ton.
      A marketing assistance loan for peanuts under subsection 
(a) shall have a term of nine months beginning on the first day 
of the first month after the month in which the loan is made. 
The Secretary may not extend the term of a marketing assistance 
loan under subsection (a).
      The Secretary shall permit producers to repay a marketing 
assistance loan for peanuts at a rate that is the lesser of the 
loan rate for the commodity plus interest; or a rate that the 
Secretary determines will minimize loan forfeitures, 
accumulation of stocks, storage costs, and allow peanuts 
produced in the United States to be marketed freely and 
competitively.
      The Secretary may make loan deficiency payments available 
to peanut producers who, although eligible to obtain a 
marketing assistance loan for peanuts, agree to forgo obtaining 
the loan for the peanuts in return for payments.
      A loan deficiency payment shall be computed by 
multiplying the loan payment rate and the quantity of the 
peanuts produced by the peanut producers, excluding any 
quantity for which the producers obtain a loan under subsection 
(a).
      The loan payment rate shall be the amount by which the 
loan rate exceeds the rate at which a loan may be repaid.
      The Secretary shall make a payment under this subsection 
to a peanut producer with respect to a quantity of peanuts as 
of the earlier of (A) the date on which the peanut producer 
marketed or otherwise lost beneficial interest in the peanuts 
or (B) the date the peanut producer requests the payment.
      As a condition of the receipt of a marketing assistance 
loan, the peanut producer shall comply with applicable 
conservation and wetland protection requirements, during the 
term of the loan.
      To the extent practicable, the Secretary shall implement 
any reimbursable agreements or provide for the payment of 
expenses under this chapter in a manner that is consistent with 
such activities in regard to other commodities.
      This section terminates section 155 of the Federal 
Agriculture Improvement and Reform Act of 1996, which provided 
superseded price support authority. (Section 166)
      The Senate amendment provides that for each of the 2002 
through 2006 crops of peanuts, the Secretary shall make 
available to peanut producers on a farm non-recourse marketing 
assistance loans for peanuts produced on the farm. The 
producers on a farm shall be eligible for a marketing 
assistance loan under this section for any quantity of peanuts 
produced on the farm.
      In carrying out this section, the Secretary shall make 
loans to peanut producers on a farm that would be eligible to 
obtain a marketing assistance loan, but for the fact the 
peanuts owned by the peanut producers on the farm are 
commingled with other peanuts of other producers in facilities 
unlicensed for the storage of agricultural commodities by the 
Secretary or a State licensing authority, if the peanut 
producers on a farm obtaining the loan agree to immediately 
redeem the loan collateral in accordance with section 158E.
      A marketing assistance loan and loan deficiency payments 
may be obtained at the option of the peanut producers on a farm 
through (A) a designated marketing association of peanut 
producers that is approved by the Secretary, (B) the Farm 
Service Agency, or (C) a loan servicing agent approved by the 
Secretary.
      The loan rate for a marketing assistance loan for peanuts 
shall be equal to $400 per ton.
      A marketing assistance loan for peanuts under subsection 
(a) shall have a term of nine months beginning on the first day 
of the first month after the month in which the loan is made. 
The Secretary may not extend the term of a marketing assistance 
loan for peanuts under subsection (a).
      The Secretary shall permit peanut producers on a farm to 
repay a marketing assistance loan for peanuts at a rate that is 
the lesser of the loan rate for peanuts plus interest or a rate 
that the Secretary determines will minimize forfeitures, 
accumulation of stocks, storage costs; and allow peanuts 
produced in the United States to be marketed freely and 
competitively.
      The Secretary may make loan deficiency payments available 
to the peanut producers on a farm that, although eligible to 
obtain a marketing assistance loan for peanuts under subsection 
(a), agree to forgo obtaining the loan for the peanuts in 
return for payments under this subsection.
      A loan deficiency payment shall be obtained by 
multiplying the loan payment rate by the quantity of the 
peanuts produced by the peanut producers on the farm, excluding 
any quantity for which the producers on a farm obtain a loan 
under subsection (a).
      The loan payment rate shall be the amount by which the 
loan rate exceeds the rate at which a loan may be repaid.
      The Secretary shall make a payment under this subsection 
to the peanut producers on a farm with respect to a quantity of 
peanuts as of the earlier of (A) the date on which the peanut 
producers on the farm marketed or otherwise lost beneficial 
interest in the peanuts, as determined by the Secretary or (B) 
the date the peanut producers on the farm request the payment.
      As a condition of the receipt of a marketing assistance 
loan under subsection (a), the peanut producers on a farm shall 
comply during the term of the loan with applicable conservation 
and wetland protection requirements.
      To the maximum extent practicable, the Secretary shall 
implement any reimbursable agreements or provide for the 
payment of expenses under this chapter in a manner that is 
consistent with the implementation of the agreements or payment 
of the expenses for other commodities.
      This section terminates Section 155 of the Federal 
Agriculture Improvement and Reform Act of 1996 is repealed. 
(Section 151)
      The Conference substitute adopts the House provision with 
an amendment modifying the options the producer has for 
obtaining a marketing assistance loan and loan deficiency 
payments to not only include a designated marketing association 
and the Farm Service Agency, but also a marketing cooperative 
of producers.
      Effective for the 2002 through 2006 crop of peanuts, to 
ensure proper storage of peanuts for which a loan is made under 
this section, the Secretary shall use the funds of the 
Commodity Credit Corporation to pay storage, handling, and 
other associated costs. This authority terminates beginning 
with the 2007 crop of peanuts. Also included is 
nondiscriminatory language for individuals or entities seeking 
approval to store peanuts for which a marketing loan is made.
      The amendment added language that a marketing association 
or cooperative may market peanuts for which a loan is made 
under this section in any manner that conforms to consumer 
needs, including the separation of peanuts by type and quality.
      The amendment added language on good faith exemptions to 
the beneficial interest requirement for the 2002 crop of 
peanuts. In the case of the producers on a farm that marketed 
or otherwise lost beneficial interest in the peanuts for which 
a marketing assistance loan was made under this section before 
repaying the loan, the Secretary shall permit the producers to 
repay the loan at the appropriate repayment rate that was in 
effect for peanuts under this subsection as of the date that 
the producers lost beneficial interest, as determined by the 
Secretary, if the Secretary determines the producers acted in 
good faith.
      The amendment establishes a special rule for the 2002 
crop year loan deficiency payments. For the 2002 crop year 
only, the Secretary shall determine the amount of the loan 
deficiency payment to be made to the producers on a farm with 
respect to a quantity of peanuts using the payment rate for 
peanuts as of the earlier of the following: the date on which 
the producers marketed or otherwise lost beneficial interest in 
the crop, as determined by the Secretary, or the date the 
producers request the payment.
      The loan rate for a marketing assistance loan for peanuts 
shall be equal to $355 per ton. (Section 1307)
      The Managers encourage the Department to continue its 
traditional practice of accounting for all commingled peanuts 
such that all peanuts stored commingled with peanuts covered by 
a marketing assistance loan are graded and exchanged on a 
dollar value basis unless it is the determination of the 
Secretary that the beneficial interest in peanuts covered by 
the marketing assistance loan have been transferred to other 
parties prior to demand for delivery.
(48) Quality Improvement
      The House bill peanuts placed under a marketing 
assistance loan under section 167 shall be officially inspected 
and graded by Federal or State inspectors. Peanuts not placed 
under a marketing assistance loan may be graded at the option 
of the producer.
      This section terminates the Peanut Administrative 
Committee and the Secretary is directed to establish a Peanut 
Standards Board for the purpose of assisting in the 
establishment of quality standards for peanuts. The authority 
of the Board is limited to assisting in the establishment of 
quality standards for peanuts. The members of the Board should 
fairly reflect all regions and segments of the peanut industry.
      This section shall take effect with the 2002 crop of 
peanuts. (Section 168)
      The Senate amendment provides that all peanuts placed 
under a marketing assistance loan under section 158G shall be 
officially inspected and graded by a Federal or State 
inspector. Peanuts not placed under a marketing assistance loan 
may be graded at the option of the peanut producers on a farm.
      The Senate amendment provides that this section 
terminates the Peanut Administrative Committee. The Secretary 
shall establish a Peanut Standards Board for the purpose of 
assisting in the establishment of quality standards with 
respect to peanuts. The Secretary shall appoint members to the 
Board that, to the maximum extent practicable, reflect all 
regions and segments of the peanut industry. The Board shall 
assist the Secretary in establishing quality standards for 
peanuts.
      This section shall apply beginning with the 2002 crop of 
peanuts. (Section 151)
      The Conference substitute adopts the Senate provision 
with an amendment requiring all peanuts marketed in the United 
States to be officially inspected and graded by Federal or 
Federal-State inspectors.
      The amendment clarifies the composition of the Peanut 
Standards Board, the terms for members, and provides language 
to transition from the Peanut Administrative Committee to the 
Peanut Standards Board. (Section 1308)
      It is the Managers' intention that the definition of 
``peanut industry representatives'' includes, but is not 
limited to, representatives of the manufacturers, shellers, 
buying points, marketing associations and marketing 
cooperatives.
      The Managers expect the Secretary, when developing 
inspection and grading standards, to encourage the use of the 
latest technology and evaluation systems to eliminate costs and 
increase efficiency in the inspection and grading process. The 
Secretary should also encourage the use of the latest research 
and technology to assist in the elimination and prevention of 
aflatoxin.
(49) Payment Limitations
      The House bill provides that separate payment limitations 
shall apply to peanuts with respect to fixed, decoupled 
payments, counter-cyclical payments, and limitations on 
marketing loan gains and loan deficiency payments.
      The Senate amendment contains no comparable provision in 
Chapter 3.
      The Conference substitute provides the total direct and 
counter-cyclical payments to a person for corn, grain sorghum, 
barley, oats, wheat, soybeans, minor oilseeds, cotton and rice 
may not exceed $40,000 and $65,000, respectively. The total 
marketing loan gains and loan deficiency payments for corn, 
grain sorghum, barley, oats, wheat, soybeans, minor oilseeds, 
cotton, rice, lentils, dry peas and small chickpeas that a 
person is entitled to receive is $75,000.
      Provides for a separate direct and counter-cyclical 
payment limitation for peanuts of $40,000 and $65,000, 
respectively. Provides for a separate marketing loan gain and 
loan deficiency payments limitation for peanuts, wool, mohair 
and honey of $75,000.
      Retains current rules on husband and wife, 3-entities, 
actively engaged and generic certificates.
      Adopts the $2.5 million adjusted gross income means test.
      The Conference substitute refers to levels of adjusted 
gross income or comparable measures of income. The Managers 
intend that the comparable measure provision be utilized when 
necessary and in cases of applicants for whom, because of their 
status under the Internal Revenue Code, adjusted gross income 
is not measured or reported. Forexample, participants who are 
organized as C Corporations, S Corporations, or as nonprofit 
organizations, the Managers intend for the Secretary to use this 
direction to adopt alternative income measurements that compare most 
closely to adjusted gross income. (Section 1309)
      The Managers expect the Secretary to implement this 
provision in a manner that provides equitable treatment, to the 
maximum extent practicable to all producers regardless of the 
legal structure of their farming operation.
      For purposes of subsection (b), the Managers expect the 
Secretary to determine the individual or entity to be 
ineligible only if the adjusted gross income or similar 
equivalent exceeds $2.5 million and less than 75 percent of the 
adjusted gross income is derived from farming, ranching or 
forestry operations as determined by the Secretary.
(50) Termination of Marketing Quota Programs for Peanuts and 
        Compensation to Peanut Quota Holders for Loss of Quota Asset 
        Value
      The House bill repeals the marketing quota for peanuts, 
part VI of subtitle B of title III of the Agricultural 
Adjustment Act of 1938.
      The marketing quota as in effect the day before the date 
of enactment of this Act, shall continue to apply with respect 
to the 2001 crop of peanuts.
      The Secretary shall offer to enter into a contract with 
eligible peanut quota holders for the purpose of providing 
compensation for the lost value of the quota on account of the 
repeal of the marketing quota program for peanuts. Under the 
contracts, the Secretary shall make payments to eligible peanut 
quota holders during fiscal years 2002 through 2006. The 
payments required under the contracts shall be provided in five 
equal installments not later than September 30 of each of the 
fiscal years 2002 through 2006.
      The amount of the payment for a fiscal year to a peanut 
quota holder under a contract shall be equal to the product 
obtained by multiplying $0.10 per pound by the actual farm 
poundage quota (excluding seed and experimental peanuts) 
established for the peanut quota holder's farm for the 2001 
marketing year.
      The provisions of section 8(g) of the Soil Conservation 
and Domestic Allotment Act, relating to the assignment of 
payments, shall apply to the payments made to peanut quota 
holders under the contracts. The peanut quota holder making the 
assignment or the assignee, shall provide the Secretary with 
notice, in such a manner as the Secretary may require, of any 
assignment made under this subsection.
      This section defines peanut quota holder as a person or 
enterprise that owns a farm that was eligible, immediately 
before the date of the enactment of this Act, to have a peanut 
quota established upon it; if there are not quotas currently 
established, would be eligible to have a quota established upon 
it for the succeeding crop year; or is otherwise a farm that 
was eligible for such a quota at the time the general quota 
establishment authority was repealed.
      The Secretary shall apply this definition without regard 
to temporary leases or transfers or quotas for seed or 
experimental purposes. (Section 170)
      The Senate amendment provides the effective beginning 
with the 2002 crop of peanuts, part VI of subtitle B of title 
III of the Agriculture Adjustment Act of 1938 is repealed.
      This section and the amendments made by this section 
apply beginning with the 2002 crop of peanuts.
      The Secretary shall offer to enter into a contract with 
peanut quota holders for the purpose of providing compensation 
for the lost value of quota as a result of the repeal of the 
marketing quota program for peanuts. Under a contract, the 
Secretary shall make payments to an eligible peanut quota 
holder for each of fiscal years 2002 through 2006. The payments 
required under the contracts shall be provided in 5 equal 
installments not later than September 30 of each of the fiscal 
years 2002 through 2006.
      The amount of the payment for a fiscal year to a peanut 
quota holder under contract shall be equal to the product 
obtained by multiplying $0.11 by the actual farm poundage quota 
(excluding any quantity for seed and experimental peanuts) 
established for the farm of a peanut quota holder for the 2001 
marketing year.
      The provisions of section 8(g) of the Soil Conservation 
and Domestic Allotment Act, relating to assignment of payments, 
shall apply to the payments made to peanut quota holders under 
the contracts. The peanut quota holder making the assignment, 
or the assignee, shall provide the Secretary with notice, in 
such a manner as the Secretary may require, of any assignment 
made under this subsection.
      This section defines peanut quota holder as a person or 
entity that owns a farm that (I) held a peanut quota 
established for the farm for the 2001 crop of peanuts; (II) if 
there was not such a quota established for the farm for the 
2001 crop of peanuts, would be eligible to have such a quota 
established for the farm for the 2002 crop of peanuts; (III) is 
otherwise a farm that was eligible for such a quota as of the 
effective date of the amendments made by this section.
      The Secretary shall apply the definition of peanut quota 
holder without regard to temporary leases, transfers, or quotas 
for seed or experimental purposes. (Section 152)
      The Conference substitute adopts the House provision with 
clarifying language to the quota holder definition. The quota 
compensation payment shall be $0.11 per year for a total of 
five years. The amendment gives an option to eligible peanut 
quota holders entitled to payments under a contract to receive 
the entire payment in a single lump sum.
      The amendment adds disposal language to allow the 
Secretary to ensure that the disposal of peanuts for which a 
loan for the 2001 crop was made is carried out in a manner that 
prevents price disruptions in the domestic and international 
markets for peanuts.
      The amendment adds language on the effect of termination 
on crop insurance policies. The subsection shall apply for the 
2002 crop year only notwithstanding any other provision of law 
or crop insurance policy. The nonquota price election for 
segregation I, II, and III shall be 17.75 cents per pound and 
shall be used for all aspects of the policy relating to the 
calculations of premium, liability, and indemnities. For the 
purposes of quality adjustment only, the average support price 
per pound of peanuts shall be a price equal to 17.75 cents per 
pound. Quality under the crop insurance policy for peanuts 
shall be adjusted under procedures issued by the Federal Crop 
Insurance Corporation. (Section 1310)

                       Subtitle D--Administration

(51) Administration Generally
      The House bill provides that:
      (a) Use of Commodity Credit Corporation.--The Secretary 
shall carry out this title through the Commodity Credit 
Corporation.
      (b) Determinations by Secretary.--A determination made by 
the Secretary under this title shall be final and conclusive.
      (c) Regulations.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary and the Commodity 
Credit Corporation, as appropriate, shall issue such 
regulations as are necessary to implement this title. The 
issuance of the regulations shall be made without regard to--
            (1) the notice and comment provisions of section 
        553 of title 5, United States Code;
            (2) the Statement of Policy of the Secretary of 
        Agriculture effective July 24, 1971 (36 Fed. Reg. 
        13804) relating to notices of proposed rulemaking and 
        public participation in rulemaking, and
            (3) chapter 35 of title 44, United States Code 
        (commonly known as the ``Paperwork Reduction Act'').
      (d) Protection of Producers.--The protection afforded 
producers that elect the option to accelerate the receipt of 
any payment under a production flexibility contract payable 
under the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7212 note) shall also apply to the advance 
payment of fixed, decoupled payments and counter-cyclical 
payments.
      (e) Adjustment Authority Related to Uruguay Round 
Compliance.--If the Secretary determines that expenditures 
under subtitles A, B, and C that are subject to the total 
allowable domestic support levels under the Uruguay Round 
Agreements (as defined in section 2(7) of the Uruguay Round 
Agreements Act (19 U.S.C. 3501(7))), as in effect on the date 
of the enactment of this Act, will exceed such allowable levels 
for any applicable reporting period, the Secretary may make 
adjustments in the amount of such expenditures during that 
period to ensure that such expenditures do not exceed, but in 
no case are less than, such allowable levels. (Section 181)
      The Senate amendment provides that:
      (a) In General.--The Secretary of Agriculture may 
promulgate such regulations as are necessary to implement this 
Act and the amendments made by this Act.
      (b) Procedure.--The promulgation of the regulations and 
administration of title I and sections 456 and 508 and the 
amendments made by title I and sections 456 and 508 shall be 
made without regard to--
            (1) the notice and comment provisions of section 
        553 of title 5, United States Code;
            (2) the Statement of Policy of the Secretary of 
        Agriculture effective July 24, 1971 (36 Fed. Reg. 
        13804), relating to notices of proposed rulemaking and 
        public participation in rulemaking; and (3) chapter 35 
        of title 44, United States Code (commonly known as the 
        ''Paperwork Reduction Act'').
      (c) Congressional Review of Agency Rule-Making.--In 
carrying out subsection (b), the Secretary shall use the 
authority provided under section 808 of title 5, United States 
Code.
      Amends Section 161 of the FAIR Act to allow the Secretary 
to adjust the amount of domestic support to assure compliance 
with Uruguay Round obligations.
      Requires the Secretary to report to Congress of intent to 
make adjustment and allows adjustment unless a joint resolution 
disapproving the adjustments is enacted by both Houses of 
Congress within 60 days.
      Requires annual reports on domestic support by April 30 
of each year. (Section 164 and 1099)
      The Conference substitute adopts the House provision with 
an amendment that provides for the Secretary, to the maximum 
extent practicable, make adjustments in the amount of such 
expenditures during that period to ensure that such 
expenditures do not exceed such allowable levels.
      Before making any adjustment, the Secretary shall submit 
to the Committee on Agriculture, Nutrition, and Forestry of the 
Senate and the Committee on Agriculture of the House of 
Representatives a report describing the determination made and 
the extent of the adjustment made.
      The Conference has made it a priority to craft a program 
that provides assistance to producers in a way that is 
consistent with our obligations under the Uruguay Round 
Agreement on Agriculture. (Section 1601)
(52) Extension of Suspension of Permanent Price Support Authority
      The House bill amends Section 171 of the FAIR Act.
      (a) Agricultural Adjustment Act of 1938.--Section 
171(a)(1) of the Federal Agriculture Improvement and Reform Act 
of 1996 (7 U.S.C. 7301(a)(1)) is amended by striking ``2002'' 
both places it appears and inserting ``2011''.
      (b) Agricultural Act of 1949.--Section 171(b)(1) of the 
Federal Agriculture Improvement and Reform Act of 1996 (7 
U.S.C. 7301(b)(1)) is amended by striking ``2002'' both places 
it appears and inserting ``2011''.
      (c) Suspension of Certain Quota Provisions.--Section 
171(c) of the Federal Agriculture Improvement and Reform Act of 
1996 (7 U.S.C. 7301(c)) is amended by striking ``2002'' and 
inserting ``2011''. (Section 182)
      The Senate amendment amends Section 171 of the Fair Act. 
Section 171 of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7301) is amended--
            (1) by striking ``2002'' each place it appears and 
        inserting ``2006''; and
            (2) in subsection (a)(1)--
                    (A) by striking subparagraph (E); and
      (B) by redesignating subparagraphs (F) through (I) as 
subparagraphs (E) through (H), respectively. (Section 165)
                    The Conference substitute adopts the House 
                provision with an amendment. (Section 1602)
(53) Commodity Purchases
      The Senate Amendment provides new mandatory spending for 
commodity purchases with a specific amount for specialty crops, 
for the Department of Defense nutrition program and for the 
Emergency Food Assistance Program. (Section 166)
      The House Bill contains no similar provision.
      The Conference Substitute adopts the Senate provision 
with an amendment to provide a minimum of $200 million per year 
from Section 32 funds for the purchase of fruits, vegetables 
and other specialty food crops. A minimum of $50 million per 
year of these funds is to be spent on the Department of Defense 
Fresh Program. And the Secretary shall submit a report not 
later than 1 year after the date of the enactment of thisAct, 
to the Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate that 
analyzes by type the commodities purchased under this section as well 
as by type the commodities purchased using all other Section 32 funds. 
(Section 10603)
      The Managers intend that the funds made available under 
this section are to be used for additional purchases of fruits 
and vegetables, over and above the purchases made under current 
law or that might otherwise be made without this authority. The 
Managers expect the $200 million to be a minimum amount for 
fruit and vegetable purchases under Section 32 funds; it is not 
intended to interfere with or decrease from Agricultural 
Marketing Service's historical purchases of fruits and 
vegetables [e.g. $243 million in 2001; $232 million in 2000] or 
to decrease or displace other commodity purchases. It is the 
Managers' further intention that tree nuts may be included in 
the Secretary's definition of ``other specialty food crops'' 
purchases for this section. The Managers intend that none of 
the amounts made available under this section for the purchases 
of fruits, vegetables, and other specialty food crops may be 
used to purchase apples for 2002 and 2003. The Secretary may 
continue to purchase apples under other existing authority.
      The amendment requires that a minimum of $50 million from 
the $200 million made available under section 10603 be used 
exclusively for additional purchases of fresh fruits and 
vegetables for the schools through the ``DoD Fresh'' program. 
The Department of Agriculture currently provides $25 million in 
funding each year for the purchase of fresh fruits and 
vegetables for the schools, pursuant to existing authority 
under the School Lunch Act. Through a 1995 memorandum of 
agreement between the Agricultural Marketing Service, the Food 
& Consumer Service, and the Defense Personnel Support Center, 
the Department of Defense serves as the servicing agency for 
the procurement of these fresh fruits and vegetables through 
the ``DoD Fresh'' program. The Managers strongly support 
efforts to fully utilize this program to assist small 
businesses, specialty crop producers, and schools in providing 
greater quantities of fresh fruits and vegetables in USDA 
feeding programs, and expects the Secretary to review the 
effectiveness of the program in meeting these goals on an on-
going basis.
(54) Hard White Wheat Incentive Payments
      The Senate amendment amends Sec. 193 of the FAIR Act. For 
crop years 2003 through 2005, this section requires the 
Secretary to use $40 million of funds of the Commodity Credit 
Corporation to provide incentive payments to producers of hard 
white wheat. The program offers wheat producers an alternative 
crop to meet a growing international market opportunity. 
(Section 167)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that provides for the 2003 through 2005 crop 
years, a total of $20 million in hard white wheat incentive 
payments to growers that demonstrate that buyers and end-users 
are available for the wheat to be covered by the incentive 
payment. (Section 1616)
(55) Limitations
      The House bill amends section 1001 of the Food Security 
Act of 1985 to delete the references to production flexibility 
contract and AMTA and include fixed, decoupled and counter-
cyclical payment limitations. The total fixed, decoupled 
payments and counter-cyclical payments to a person may not 
exceed $50,000 and $75,000, respectively. The total of 
marketing loan gains and loan deficiency payments that a person 
is entitled to receive is $150,000.
      Peanuts, honey and wool and mohair have limitations for 
the applicable programs separate from other commodities. 
(Section 183)
      The Senate amendment amends Section 1001 of the Food 
Security Act of 1985. The total of direct and counter-cyclical 
payments that an individual or entity may receive during any 
fiscal year for program commodities shall not exceed $75,000. 
The total of marketing loan gains, forfeiture gains, gains from 
marketing certificates and loan deficiency payments that a 
person is entitled to receive for program crops, peanuts, honey 
and wool is $150,000 per crop year.
      During a fiscal and corresponding crop year, the total 
amount of payments and benefits that a married couple may 
receive from direct, counter-cyclical and marketing loan is 
$75,000 and $150,000 respectively, plus a combined total of an 
additional $50,000. (Section 169)
      The Conference substitute provides the total direct and 
counter-cyclical payments to a person for corn, grain sorghum, 
barley, oats, wheat, soybeans, minor oilseeds, cotton and rice 
may not exceed $40,000 and $65,000, respectively. The total 
marketing loan gains and loan deficiency payments for corn, 
grain sorghum, barley, oats, wheat, soybeans, minor oilseeds, 
cotton, rice, lentils, dry peas and small chickpeas that a 
person is entitled to receive is $75,000.
      Provides for a separate direct and counter-cyclical 
payment limitation for peanuts of $40,000 and $65,000, 
respectively. Provides for a separate marketing loan gain and 
loan deficiency payments limitation for peanuts, wool, mohair 
and honey of $75,000.
      Retains current rules on husband and wife, 3-entities, 
actively engaged, generic certificates and adopts the $2.5 
million adjusted gross income means test.
      The Conference substitute refers to levels of adjusted 
gross income or comparable measures of income. The Managers 
intend that the comparable measure provision be utilized when 
necessary and in cases of applicants for whom, because of their 
status under the Internal Revenue Code, adjusted gross income 
is not measured or reported. For example, participants who are 
organized as C Corporations, S Corporations, or as nonprofit 
organizations, the Managers intend for the Secretary to use 
this direction to adopt the use of income measure terms that 
compare most closely to adjusted gross income. The Managers 
expect the Secretary to implement this provision in a manner 
that provides equal treatment, to the maximum extent 
practicable across all producers regardless of the legal 
structure of their farming operation.
      For purposes of subsection (b), the Managers expect the 
Secretary to determine the individual or entity to be 
ineligible only if the adjusted gross income or similar 
equivalent exceeds $2.5 million and less than 75 percent of the 
adjusted gross income is derived from farming, ranching or 
forestry operations as determined by the Secretary. (Section 
1603)
(56) Adjustments of Loans
      The House bill extends current authority to adjust loans 
so, to the maximum extent practicable, the average loan level 
for a commodity will be equal to the level of support 
determined appropriate under this Act. (Section 184)
      The Senate amendment retains current law as section 162 
of the FAIR Act with ``loan commodity'' reference. (Section 
171)
      The Conference substitute adopts the House provision. 
(Section 1606)
(57) Personal Liability of Producers for Deficiencies
      The House bill amends Section 164 of the FAIR Act by 
striking ``this title'' and inserting ``this title and title I 
of the Farm Security Act of 2001''. The liability of a producer 
is limited if the collateral securing any nonrecourse loan is 
sold as long as the sale was not fraudulent. (Section 185)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 1607)
(58) Extension of Existing Administrative Authority Regarding Loans
      The House bill amends Section 166 of the FAIR Act. The 
full protection of marketing loan assistance to producers is 
extended under this Act. (Section 186)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment that includes a reference to this Act. (Section 
1608)
(59) Assignment of Payments
      The House bill provides that producers may assign any 
payments received under this Act by providing notice in a 
manner prescribed by the Secretary. (Section 187)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 1612)
(60) Report on Effect of Certain Farm Payments
      The House bill requires the Secretary to review the 
effects that payments under production flexibility contracts 
and market loss assistance payments have had, and that fixed, 
decoupled and counter-cyclical payments are likely to have, on 
the economic viability of producers and the farming 
infrastructure. The review shall include a case study on the 
effects these payments are likely to have on rice producers, 
millers and the economies of rice farming areas in Texas. 
(Section 187)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section ???)
(62) Reserve Stock Level
      The Senate amendment reduces the reserve stock level for 
Flue-cured tobacco from 100 million pounds (farm sales weight) 
to 75 million pounds or 10 percent of the national marketing 
quota. (Section 162)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that reduces the reserve stock level for 
Flue-cured tobacco from 100 million pounds (farm sales weight) 
to 60 million pounds. (Section 1610)
(63) Farm Reconstitutions
      The Senate amendment provides for the 2002 crop only, the 
Secretary shall allow special farm reconstitutions, in lieu of 
lease of tobacco quota. Requires a study on the effects of 
limitation on producers who move quota. (Section 163)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1611)
(64) Livestock Assistance Program
      The Senate amendment authorizes appropriations of $500 
million for each of fiscal years 2003 through 2008 for the 
livestock assistance program. (Section 168)
      The House bill contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 10104)
(65) Restriction of Commodity and Crop Insurance Payments, Loans and 
        Benefits to Previously Cropped Land
      The Senate amendment restricts commodity and crop 
insurance payments to previously cropped land. To be eligible 
for benefits, land must have been planted, considered planted 
or devoted to an agricultural commodity (excluding forage, 
livestock, timber, forest products, or hay) at least 1 of the 5 
crop years preceding the 2002 crop year, or at least 3 of the 
10 crop years preceding the 2002 crop year, or at least 1 of 
the 20 crop years preceding 2002 crop year if the land has been 
maintained, using long-term crop rotation practices.
      There are exceptions for land enrolled in the 
conservation reserve program and land under the jurisdiction of 
an Indian tribe. (Section 170)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(66) Reports of Equitable Relief and Misaction-Misinformation Requests
      The Senate amendment requires the Secretary to submit to 
the Committee on Agriculture of the House of Representatives 
and the Committee on Agriculture, Nutrition and Forestry of the 
Senate a report that describes the requests for equitable 
relief. (Section 172)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that provides State Executive Directors of 
the Farm Service Agency and State Conservationists with the 
Natural Resource Conservation Service authority to grant relief 
in special circumstances. In addition, a report is required to 
be provided annually that describes for the previous calendar 
year, the number of requests for equitable relief and the 
disposition of the requests. (Section 1613)
(67) Estimates of Net Farm Income
      The Senate amendment requires the Secretary to include--
            ``(1) an estimate of the net farm income earned by 
        commercial producers in the United States; and
            ``(2) an estimate of the net farm income 
        attributable to commercial producers of each of--
            ``(A) livestock;
            ``(B) loan commodities; and
            ``(C) agricultural commodities other than loan 
        commodities.'' (Section 173)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1615)
(68) Commodity Credit Corporation Inventory
      The Senate amendment authorizes the Commodity Credit 
Corporation to use private sector entities when purchasing and 
selling commodities. (Section 174)
      The House bill contains no comparable provision.
      The Conference substitute accepts the Senate provision. 
(Section 1609)
(69) Agricultural Producers Supplemental Payments and Assistance
      The Senate amendment authorizes the Secretary to make 
payments to persons who are eligible to receive assistance 
under Public Law 107-25 but who did not receive the payments or 
assistance prior to October 1, 2001.
      The amount of payments or assistance shall not exceed the 
amount of payments or assistance the person would have been 
eligible to receive under Public Law 107-25.
      The House bill contains no comparable provision.
      The Conference substitute accepts the Senate provision 
with an amendment to also include producers participating in 
1998, 1999, 2000 or 2001 economic or disaster assistance 
programs that have not been paid. (Section 1617)

               Subtitle E--Payment Limitation Commission

(70) Establishment of Commission
      The Senate amendment establishes commission, specifies 
membership, establishes terms, meetings, quorum, and provides 
that the Secretary appoint one commissioner to serve as Chair. 
(Section 181)
      The House bill contains no comparable provision.
      The Conference substitute provides for the establishment 
of a Commission on the Application of Payment Limitations for 
Agriculture.
      The Commission shall be composed of 10 members of which 3 
members are appointed by the Secretary of Agriculture, 3 
members by the Committee on Agriculture, Nutrition and Forestry 
of the Senate, 3 members by the Committee on Agriculture of the 
House of Representatives and the Chief Economist of the 
Department of Agriculture.
      The Managers encourage the appointing authorities to 
ensure that the membership of the commission has a diversity of 
experiences and expertise on the issues to be studied by the 
Commission. (Section 1605)
(71) Duties
      The Senate amendment requires the commission to conduct a 
comprehensive review of payment limitations. (Section 182)
      The House bill contains no comparable provision.
      The Conference substitute requires that the Commission 
conduct a study on the potential impacts of further payment 
limitations on the receipt of direct payments, counter-cyclical 
payments, and marketing loan gains and loan deficiency payments 
on farm income, land values, rural communities, agribusiness 
infrastructure, planting decisions, supply and prices of 
covered commodities and other agriculture commodities, 
including fruits and vegetables.
      Not later than 1 year after the date of enactment of this 
Act, the Commission shall submit a report containing the 
results of the study, including such recommendations as the 
Commission considers appropriate.
      The Managers intend for the Commission to examine the 
feasibility of improving the application and effectiveness of 
payment limitation requirements, including the use of commodity 
certificates and unlimited forfeiture of loan collateral. 
(Section 1605)
(72) Powers
      The Senate amendment authorizes the commission to hold 
hearings and obtain information from Federal agencies. (Section 
183)
      The House bill contains no comparable provision.
      The Conference substitute provides that the Commission 
may hold such hearings, meet and act, take testimony and 
receive evidence the Commission considers advisable to carry 
out their duties. (Section 1605)
(73) Commission Personnel Matters
      The Senate amendment provides for compensation of 
members. (Section 184)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1605)
(74) Federal Advisory Committee Act
      The Senate amendment exempts the commission from the 
Federal Advisory Committee Act. (Section 185)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 1605)
(75) Funding
      The Senate amendment authorizes the Secretary to use not 
more than $100,000 of the funds of the CCC to carry out this 
subtitle. (Section 186)
      The House bill contains no comparable provision.
      The Conference substitute provides that the Commission 
may use the mail in the same manner and under the same 
conditions as other agencies of the Federal Government, allows 
the Secretary to provide appropriate office space and allows 
for the reimbursement of travel expenses. (Section 1605)
(76) Termination of Commission
      The Senate amendment provides that the Commission 
terminates on the day after the Commission submits its report. 
(Section 187)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

              Subtitle F--Emergency Agriculture Assistance

(77) Income Loss Assistance
      The Senate amendment provides $500 million in emergency 
livestock assistance for 2001 losses. (Section 192)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(78) Market Loss Assistance for Apple Producers
      The Senate amendment provides $100 million for apple 
producers for the loss of markets during the 2000 crop year and 
further specifies payment quantity and payment/eligibility 
limitations parameters. (Section 193)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to provide $94 million to apple producers for 
the loss of markets during the 2000 crop year, payment quantity 
parameters are retained, the Secretary shall not establish a 
payment limitation or an income eligibility limitation with 
respect to payments made on the payment quantity of 5 million 
pounds of apples produced on the farm; and promulgation of 
regulations and administration of this section will be exempt 
from the rulemaking requirements and Paperwork Reduction Act. 
Also provides $10 million as a grant to the State of New York 
to be used to support current onion producers in Orange County, 
New York, who have suffered losses to onion crops during one or 
more of the 1996 through 2000 crop years. (Section 10105)
(79) Commodity Credit Corporation
      The Senate amendment authorizes the Secretary to use the 
funds, facilities, and authorities of the Commodity Credit 
Corporation to carry out this subtitle. (Section 194)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(80) Administrative Expenses
      The Senate amendment authorizes the transfer of $50 
million from the Treasury to the Department of Agriculture to 
pay salaries and expenses in carrying out this subtitle. 
(Section 195)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(81) Regulations
      The Senate amendment authorizes the Secretary to 
promulgate rules and regulations to implement this subtitle. 
(Section 196)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(82) Emergency Requirement
      The Senate amendment designates the entire amount 
necessary to carry out this subtitle as emergency spending. 
(Section 197)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

                         Title II--Conservation

               Subtitle A--Conservation Security Program

(1) Conservation Security Act
      The Senate amendment establishes the Conservation 
Security Program (CSP) and provides the applicable definitions. 
(Section 201 (Section 1238))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modification. The Managers expect the Secretary to 
implement the CSP to encourage the widest participation 
possible at a level that ensures resources are protected at a 
non-degradation level. (Sec. 2001)
(2) Conservation Security Program
      The Senate amendment establishes the CSP for fiscal years 
2003 through 2006 to assist producers in implementing various 
conservation practices as applicable for each individual 
operation. Eligible lands include private cropland, grassland, 
prairie land, pasture land and rangeland and private forest 
land in agro-forestry practices.
      The Senate amendment establishes three tiers of 
conservation contracts that provide flexibility to farmers. 
Eligible practices may include the continuation of some 
practices combined with the adoption of new practices. 
Producers must adopt or maintain practices to address a 
resource concern of the operation, such as soil or water 
quality.
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modification. The CSP, which is open to all producers for 
maintaining or adopting practices on private agricultural land, 
will be established from fiscal years 2003 through 2007. Only 
private agricultural lands and forested land that is incidental 
to an agricultural operation is eligible for enrollment. Lands 
enrolled in the Conservation Reserve Program (CRP), the 
Wetlands Reserve Program (WRP), or the Grasslands Reserve 
Program (GRP) are not eligible for enrollment, nor are lands 
that have not been cropped for more than four out of the past 
six years. This change is to help discourage producers from 
using the program as an inducement to cultivate land. Because 
this is a working lands program, producers will be allowed 
economic use of the land, in a manner consistent with the 
program. (Section 2001)
      Agricultural producers are longtime stewards of America's 
lands. In establishing the CSP, the Managers recognize the need 
to support ongoing stewardship by providing incentive payments 
for producers to maintain and enhance conservation practices at 
a non-degradation level.
      The Managers intend to assist agriculture producers to 
concentrate on resource problems, including soil, air, water, 
plant and animal (including wildlife) and energy conservation, 
on their particular operation using a broad array of 
conservation practices. Participation does not require a 
producer to address a locally-identified priority. Instead, a 
producer may receive an enhanced payment for addressing 
locally-identified priorities which will be determined by the 
state technical committees working with local working groups 
and agricultural producers. Overall, the Managers intend that 
the enhanced payments be used to ensure and optimize 
environmental benefits. The enhanced payments should reward 
producers who go beyond the minimum requirements of the program 
to address additional resource concerns.
      The Managers intend that the Secretary shall provide base 
payments based on the average national rental rate for the 
specific land use type. The Managers encourage the Secretary to 
look at alternative approaches for a base payment that is not 
based on rentalrates. In applying another appropriate rate to 
ensure regional equity, the Secretary shall not provide a rate lower 
than the national average rental rate.
      The Managers intend the Secretary will not employ an 
environmental bidding or ranking system in implementing CSP and 
approve should approve a producer's contract that meets the 
standards of the program. The Managers are aware that many 
agricultural producers who want to adopt conservation practices 
have not had access to conservation program funding. Together, 
with the overall increase in funds for all conservation 
programs, agriculture producers who chose to employ 
conservation practices should have access to funding.
      The Secretary should provide cost-share payments at a 
rate not exceeding 75 per cent. The Secretary should provide 
cost-share assistance at a comparable rate as that provided 
under the Environmental Quality Incentives Program for the same 
practices. In limiting cost-share for land-based structures, 
payments should be limited to those structures that are 
integral to the land-based conservation system.
      The Managers expect the Secretary to implement the CSP in 
a manner that will allow all agricultural producers, including 
fruit and vegetable producers and livestock producers, to 
participate equitably in the program. The Managers also direct 
the Secretary to begin CSP at the full national level as soon 
as practicable.
      While CSP is directed toward practices on working 
agricultural lands, the Managers recognize that some land use 
practices may involve alternative uses of the land, such as 
providing for wildlife habitat or the corners on center-pivot 
irrigation systems, and expect the Secretary to include these 
parcels, when incidental to the operation, as part of the CSP 
contract.
      The Managers are aware of the unique conservation and 
production practices utilized by specialty crop growers 
throughout the United States. The Managers expect the 
Department to ensure that adequate resources are made available 
for specialty crop conservation practices under CSP. They also 
expect that, in carrying out the financial assistance 
provisions of various conservation programs the unique 
production practices involved in fruit and vegetable 
production, are taken into account when drafting and 
implementing regulations to carry out those programs.
(3) Partnerships and Cooperation
      The Senate amendment allows the Secretary to designate 
special projects and enter into agreements with nonfederal 
entities to provide enhanced technical and financial assistance 
to be used by owners to meet the purposes of the Clean Water 
Act, Safe Drinking Water Act and Clean Air Act, and other 
Federal, state or local laws, and to address environmental 
issues associated with watersheds of special significance or 
other geographic areas of environmental sensitivity such as 
wetlands.
      It also allows the Secretary to provide incentive 
payments to producers participating in special projects to 
encourage partnerships and sharing of technical and financial 
resources among owners, producers, government and non-
governmental organizations and to adjust the application of 
eligibility criteria, approved practices, innovative 
conservation practices and other elements of the conservation 
programs to better reflect unique local circumstances, if 
consistent with environmental enhancement and purposes and 
requirements of the title. Participating parties must submit a 
plan to the Secretary. The purposes of the special projects 
include the installation of systems affecting multiple 
agricultural operations and innovative techniques. This 
provision directs the Secretary to use 5 percent of the funds 
made available for the EQIP to carry out special projects 
consistent with the purposes of EQIP. (Section 203) The House 
bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modification. The Secretary may enter into agreements to 
enhance technical and financial assistance provided to owners, 
operators, and producers to address natural resource issues 
related to agricultural production. The Secretary may provide 
incentives for special projects to encourage partnerships and 
enrollments of optimal conservation value. (Section 2003)
      The Managers intend for the Secretary to use this 
authority to help producers avoid the need for further federal 
and state regulation to protect clean water and air. The 
Secretary is strongly encouraged to be proactive in 
establishing partnerships in critical areas such as the 
Chesapeake Bay.
(4) Administrative Requirements for Conservation Programs
            (a) Good-faith reliance
      The Senate amendment requires the Secretary to provide 
relief to owners, operators or producers injured by good faith 
reliance based on an action or on the advice of an employee of 
the Secretary.
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision 
due to the adoption of a general good faith reliance provision 
covering both the commodity and conservation titles. (Section 
2004)
            (b) Education, assessment and evaluation
      The Senate amendment requires the Secretary to provide 
education, outreach, training, monitoring, evaluation, and 
technical assistance to agricultural producers. Allows 
Secretary to enter contracts with nonfederal entities to 
provide these services.
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
The Secretary has been providing education and outreach to 
agricultural producers, beginning farmers and ranchers and 
Indian tribes. The Managers intend that education, monitoring, 
and assessment of the programs under Subtitle D of the 1985 
Food Security Act be conducted as a part of the technical 
assistance for these programs. In carrying out these 
activities, the Managers would also expect the Secretary to 
utilize the experience and expertise of outside entities such 
as, states (including state agencies and local units of 
government), educational institutions, and non-profit groups 
with a demonstrated history of working with agricultural 
producers. The Managers expect $10 million per year from 
technical assistance funds for the conservation programs to be 
used for these purposes.
            (c) Beginning and limited-resource farmers
      The Senate amendment allows the Secretary to provide 
beginning farmers and ranchers and Indian tribes and limited-
resource producer incentives to participate in conservation 
programs.
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision for 
beginning farmers and ranchers. (Section 2004)
            (d) Maintenance of conservation data
      The Senate amendment requires the Secretary to maintain 
data concerning conservation plans and programs.
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2004)
            (e) Mediation
      The Senate amendment requires the Secretary to provide 
aggrieved producers mediation services or an informal hearing 
on the matter.
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2004)
            (f) Privacy
      The Senate amendment directs the Secretary to ensure the 
privacy of individual information provided to USDA to secure 
technical or financial assistance for conservation programs. 
Information may be released to the Attorney General to enforce 
programs. (Section 204)
      The House bill amended the Freedom of Information Act to 
provide similar protections for producer-provided information.
      The Conference substitute adopts the Senate provision 
with modification.
            (g) Cooperation with tribal governments
      The Senate amendment directs the Secretary to cooperate 
with the tribal government of Indian tribes when administering 
lands under the jurisdiction of an Indian tribe.
      The House bill contains no comparable provision.
      The Conference substitute deletes this provision due to 
the adoption of similar provisions in the Miscellaneous Title. 
(Section 2004)
(5) Reform and Assessment of Conservation Programs
      The Senate amendment directs the Secretary to develop a 
plan for coordinating conservation plans and programs to 
facilitate implementation and delivery of conservation programs 
and provide a report to Congress within 180 days after 
enactment of this Act. (Section 205)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modification. (Section 2005)
(6) Conservation Security Program Regulations
      The Senate amendment states that the Secretary may 
promulgate regulations for implementation of the CSP upon 
enactment of this Act. (Section 206)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 2702)
(7) Conforming Amendments
      The House bill reauthorizes the Environmental 
Conservation Acreage Reserve Program (ECARP) through 2011 and 
removes provisions establishing conservation priority areas. 
(Section 201)
      The Senate amendment renames the ECARP the Comprehensive 
Conservation Enhancement Program (CCEP), reauthorizes the CCEP 
programs through 2006, and directs the Secretary to give 
priority to areas in which designated land would facilitate the 
most rapid completion of projects that are ongoing as of the 
date of the application. (Sections 207 and 211)
      The Conference substitute adopts the Senate provision, 
with a modification that removes priority areas from CCEP as 
well as the reference to priority being given to the most rapid 
completion of projects. Also, the substitute extends the 
program to 2007. (Section 2006)
      The Managers find that bobwhite quail are a valued 
traditional symbol of farmed landscapes, but their populations 
have declined by two-thirds since 1980. The Managers further 
find that the success of the Southeast Quail Study Group's new 
``Northern Bobwhite Conservation Initiative'' is largely 
dependent upon land management actions by agricultural 
producers and non-industrial private forestland owners. The 
Managers further find that many conservation programs of this 
farm bill have large potential to contribute to bobwhite quail 
habitat objectives and encourage the Secretary to support the 
goal of restoring habitat for this species.
      The Managers intend that the CRP, the CREP, the Wildlife 
Habitat Incentives Program (WHIP), the EQIP, the WRP, the GRP, 
the CSP and other USDA programs could be helpful in 
supplementing the Comprehensive Everglades Restoration Program. 
The Secretary is encouraged to work with appropriate state and 
federal officials to develop and implement a coordinated plan 
toward this end.

                Subtitle B--Conservation Reserve Program

(1) Reauthorization
      The House bill reauthorizes the CRP through 2011 and adds 
conservation and improvement of wildlife resources to the scope 
of the program's purpose. (Section 211)
      The Senate amendment reauthorizes the CRP through 2006. 
(Section 212(a))
      The Conference substitute adopts the House provision with 
a modification that extends the program to 2007. (Section 2101)
(2) Enrollment
      The House bill modifies language on land eligibility to 
add: (1) marginal pasturelands devoted to natural vegetation in 
or near riparian areas or for similar water quality purposes, 
(2) land that the Secretary determines will contribute to the 
degradation of soil, water or air quality or poses an 
environmental threat if permitted to remain in production, (3) 
land where soil, water and air quality objectives cannot be 
achieved under the Environmental Quality Incentives Program 
(EQIP), and (4) land where enrollment would contribute to the 
conservation of ground or surface water. (Section 212(a))
      The Senate amendment modifies language on vegetative 
cover, providing that in the case of marginal pastureland, an 
owner or operator shall not be required to plant trees if the 
land is to be restored as a wetland or with appropriate native 
riparian vegetation. (Sec. 212 (g))
      The Conference substitute adopts the House provision with 
a technical change. Marginal pastureland should be devoted to 
appropriate vegetation, including trees, in or near riparian 
areas or for similar water quality purposes, including marginal 
pastureland converted to wetlands or established as wildlife 
habitat. (Section 2101)
      The Conference substitute adopts the House provision on 
land which would contribute to degradation of soil, water or 
air quality if permitted to remain in production. The 
substitute also adopts the provision on land where enrollment 
would contribute to the conservation of ground or surface 
water, with modification that land may only beenrolled where 
the measure would provide a net savings in ground or surface water 
resources on the agricultural operation of the producer. This is a new 
factor, under CRP, that should not be given a significant increase in 
points under the Environmental Benefits Index. (Section 2101)
(3) Eligibility and Cropping History
      The House amendment modifies the language on eligibility 
to limit enrollment of land that has not been in production for 
at least four years.
      The Senate amendment modifies language on eligibility of 
highly-erodible cropland that cannot be farmed in accordance 
with a conservation plan, and requires that the land have a 
cropping history or be considered to have been planted for 
three of the six years preceding the enactment of this 
legislation, and modifies language on land eligibility to add: 
(1) the portion of land in a field in cases where more than 50 
percent of the land in the field is enrolled as a buffer, and 
(2) land (including land with no cropping history) enrolled 
through the continuous sign-up program or Conservation Reserve 
Enhancement Program (CREP). (Section 212(b))
      The Conference substitute adopts the Senate provision, 
with modification requiring that land have a cropping history 
or be considered to have been planted for four of the six years 
preceding the enactment of this legislation to be eligible. The 
Managers are concerned about reports that producers are 
planting crops on non-cropped lands as a means of being 
eligible to participate in CRP. This language is intended to 
prevent the enrollment of these lands under CRP. (Section 2101)
      The Conference substitute deletes the Senate provision on 
land, other than cropland, being enrolled in the continuous 
sign-up program. However, the Managers understand the Secretary 
is currently reviewing the land eligibility criteria, including 
the eligibility of non-cropland that could be restored to serve 
as buffers. The Managers expect the Secretary to do this 
examination expeditiously. (Section 212(b)) (Section 2101)
      The Conference substitute adopts the Senate provision 
with modification on the eligibility of partial fields. The 
provision allows producers to enroll entire fields through the 
continuous CRP as buffers in cases in which more than 50 
percent of the field is eligible for enrollment and the 
remainder of the field is infeasible to farm. The modification 
restricts payments on the remaining acreage to general sign-up 
rates. (Section 212(b)(1)(B)) (Section 2101)
      The Managers intend the USDA to allow prescribed burning 
and other measures that are intended to enhance forage for the 
benefit of pheasants and other wildlife species on land 
enrolled in the CRP.
      In carrying out the CRP, the Managers direct the 
Secretary to evaluate qualifications and criteria relating to 
spring wind erosion of sandy soils not currently recognized by 
the Wind Erosion Equation.
      The Managers expect the Secretary to develop ways to make 
land prone to frequent seasonal flooding, such as 3 out of the 
last 5 years, eligible for enrollment in the CRP, including, 
but not limited to, designating the area as a conservation 
priority area.
(4) Acreage Limitations
      The House bill increases the acreage cap to 39.2 million 
acres. (Section 212(b))
      The Senate amendment increases the acreage cap to 41.1 
million acres. (Section 212 (c))
      The Conference substitute adopts the House provision on 
raising the acreage cap to 39.2 million acres. (Section 2101)
(5) Priority Areas
      The House bill deletes priority areas and requires that 
on the expiration of a CRP contract the land shall be eligible 
to be considered for re-enrollment in the program. (Section 
212)
      The Senate amendment modifies language regarding priority 
areas to direct the Secretary to give priority to areas in 
which designated land would facilitate the most rapid 
completion of projects that are ongoing and that meet the 
purposes of the program.
      The Conference substitute adopts the Senate provision 
that retains priority areas. The Managers recognize that 
conservation benefits may increase from cumulative enrollment 
and encourages the Secretary to consider these cumulative 
benefits by enrolling lands in areas where land is currently 
enrolled. (Section 2101)
      The Managers expect the Secretary to revisit the issue of 
how the CRP national priority area for the Prairie Pothole 
Region was determined and direct the Secretary to utilize the 
Prairie Pothole Joint Venture Implementation Plan map as the 
area to be considered the national CRP priority area for the 
Prairie Pothole Region.
      The Conference substitute adopts the House provision on 
requiring land to be considered for re-enrollment in CRP. It is 
the intent of the Managers not to provide an automatic re-
enrollment of these lands, but instead require that these lands 
go through the normal application process. (Section 2101)
(6) Balance of Natural Resources
      The House bill requires the Secretary to do a rule making 
that balances CRP contracts between soil erosion, water quality 
and wildlife habitat. (Section 212)
      The Senate amendment has no comparable provision
      The Conference substitute adopts the House provision to 
conduct a rulemaking to achieve a balance between natural 
resource purposes. (Section 2101)
      The Managers are concerned that a general sign-up has not 
taken place for several years. The Managers expect the 
Secretary to hold a general sign-up as soon as practicable.
(7) Hardwood Trees
      The Senate amendment permits the Secretary to extend the 
duration of CRP contracts for an additional 15 years in the 
case of land devoted to hardwood trees. The Secretary may 
provide rental payments in an amount not exceeding 50 percent 
of the applicable rental payment before the contract was 
extended. For new CRP contracts with hardwood trees, the 
Secretary may allow 30-year contracts at reduced rates. The 
bill provides a one-year extension on 15-year contracts 
required to be terminated by statute. (Section 212 (d))
      The House bill contains no comparable provision.
      The Conference substitute strikes the Senate provision 
regarding longer-term contracts for hardwood trees, but the 
substitute adopts the Senate provision regarding one-year 
extensions. (Section 2101)
      It has come to the attention of the Managers that CRP 
offers that include the planting of longleaf pines may not be 
receiving a weight equal to those assigned to other softwoods 
planted on CRP contract acres. The Managers encourage the 
Secretary to take such measures as may be necessary to ensure 
that a portion of land accepted for CRP contracts devoted to 
pine trees include longleaf pines.
(8) Irrigated Land Rates
      The Senate amendment makes irrigated land eligible for 
enrollment at irrigated land rates unless the Secretary 
determines that other compensation is appropriate. (Section 
212(f))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2101)
(9) Signing and Practice Incentive Payments
      The Senate amendment directs the Secretary to provide 
signing and practice incentive payments for landowners who 
implement a practice under the conservation buffer or CREP 
programs at the highest rate currently provided. (Section 
212(i))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2101)
      The Managers are concerned that the payments for 
practices may not reflect the conservation benefits of the 
practices. Grass wind strips, shelterbelts, living snow fences 
and wellhead protection are particular activities that should 
receive serious consideration for signing and practice 
incentive payments. The Managers strongly encourage the 
Secretary to re-examine the procedures used to determine the 
incentive payment. The Managers intend that the Secretary 
should continue current signing and practice incentive payments 
throughout the duration of this legislation.
(10) Payment Limits for Conservation Buffers and CREP
      The Senate amendment creates an exception to the CRP 
payment limit for payments received for conservation buffers 
and the CREP. (Section 212(j))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2101)
(11) County Acreage Limitation
      The Senate amendment exempts land enrolled under 
continuous sign-up from the limitation on the percentage of 
land in a county eligible for enrollment. (Section 212(k))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2101)
(12) Report on Economic and Social Impacts
      The Senate amendment requires the Secretary to submit a 
report to the House and Senate Agriculture Committees about the 
economic and social impacts on rural communities resulting from 
the CRP within 270 days from the date of enactment of this 
legislation. (Section 212(l)).
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modifications that require the Secretary to submit the 
report within 18 months and require the Secretary to consider 
the economic value from recreational opportunities (including 
hunting and fishing). (Section 2101)
(13) Duties of Owners and Operators
      The House bill permits landowners to maintain existing 
cover where practicable. In addition, it authorizes the 
Secretary to permit managed haying and grazing, wind turbines 
and biomass recovery as long as these activities are consistent 
with the conservation of soil, water quality and wildlife 
habitat. Finally, the House bill deletes the environmental use 
and alley-cropping provisions. (Section 213)
      The Senate amendment permits owners of marginal pasture 
land not to plant trees if native prairie grass may be retained 
or restored or if land is restored as a wetland; directs the 
Secretary to permit harvesting or grazing for maintenance 
purposes, without a reduction in rental payment, on acres that 
are enrolled to establish conservation buffers and acres 
enrolled into the CREP in a manner that is consistent with the 
purposes of the CRP; allows the Secretary to permit an owner of 
CRP land, other than that enrolled under continuous sign-up, to 
install wind turbines on the land at a reduced rate; and 
modifies language regarding duties of participating landowners 
to say that an owner also agrees not to produce a crop for the 
duration of the CRP contract on any other highly erodible land 
without a cropping history that the owner owns or operates with 
exemptions of land used as a homestead or building site. 
(Section 212 (g), (h))
      The Conference substitute adopts the House provision to 
permit landowners to continue with existing cover where 
practicable and consistent with wildlife reserve benefits of 
CRP. (Section 2101)
      The Conference substitute adopts the House provision on 
managed haying (including for biomass) and grazing and wind 
turbines, with modification. USDA will permit, consistent with 
the conservation of soil, water quality and wildlife habitat, 
managed harvesting and grazing on the land at a reduced rate. 
Harvesting and grazing or other commercial use of the forage is 
permitted in response to a drought or other emergency. In 
addition, the Secretary shall ensure that all precautions are 
taken to protect against overgrazing or haying or use of land 
during a period that may adversely impact wildlife habitat or 
wildlife directly, especially ensuring that activities take 
place after nesting season is completed. USDA, with the State 
technical committees, will develop appropriate vegetation 
management requirements including appropriate harvesting and 
grazing periods. In determining the appropriate use of CRP 
lands for haying and grazing (including the frequency and time 
period), the Secretary shall require the State Technical 
Committees to consider the type of grass (shrubs, forbs or 
bushes) on the land as well as the local ecosystem. (Section 
2101)
      The Secretary shall permit wind turbines on CRP land, 
whether commercial in nature or not, in a manner that does not 
interfere with wildlife. In so doing, the Secretary may 
restrict the number and location of wind turbines that may be 
installed on a tract of land. The Secretary shall take special 
care when allowing wind turbines on small parcels of land, 
especially buffers, so that turbines are spaced in a manner 
that does not interfere with wildlife habitat, flyways or 
movement. (House Section 213(1)(C)) (Section 212 (h)(f))
      The Conference substitute deletes the Senate provision 
requiring an owner to agree not to produce a crop for the 
duration of the CRP contract on any other highly erodible land 
without a cropping history that the owner owns or operates. 
(Section 2101)
      The Conference substitute adopts the House provision to 
delete the environmental use and alley-cropping provisions.
(14) Reference to Conservation Reserve Payments
      The House bill replaces the term rental payment with 
conservation reserve payment. (Section 214)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision. 
(Section 2101)
(15) Expansion of Pilot Program to All States
      The House bill reauthorizes the project through 2011, 
directs the Secretary to carry out a project in each state and 
limits enrollment to not more than 150,000 acres in any state.
      The Senate amendment reauthorizes the pilot program 
through 2006 in Minnesota, Montana, Nebraska, Iowa, North 
Dakota and South Dakota. Expands the maximum size of any 
wetland enrolled to 10 contiguous acres with not more than 5 
acres being eligible for payment. (Section 212(e))
      The Conference substitute adopts the House provision with 
modification. The Secretary shall carry out a nationwide 
program, limiting enrollment to 100,000 acres in any state and 
a million acres nationwide. After three years the Secretary may 
reallocate another 50,000 acres to interested states, based on 
their original allocation. The provision also expands the 
maximum size of any wetland enrolled to 10 contiguous acres 
with not more than 5 acres being eligible for payment. This 
change was made to facilitate enrollment of lands that meet the 
eligibility of the program and will achieve the goals of this 
program. The Secretary shall ensure that changes to regulations 
to the program do not have a significant impact on the original 
6 states involved in the pilot program. (Section 2101)
      In expanding the CRP Wetland Pilot nationwide, the 
Managers recognize that the playa lakes found throughout the 
Southern Great Plains states of Kansas, Oklahoma, Colorado, New 
Mexico and Texas, are also worthy of protection as they 
function as recharge points for the Ogalalla Aquifer, help in 
containing flood waters and provide habitat for hundreds of 
bird species. Playa lakes are the most significant 
topographical and hydrological attribute in the Southern Great 
Plains. Playa lakes are often dry enough to be farmed due to 
the annual precipitation rates and high evaporation rates that 
occur in the high plains.
(16) Water Conservation
      The Senate amendment requires the Secretary to provide up 
to 500,000 acres for CREP for water conservation measures in 
California, Maine, Nevada, New Hampshire, New Mexico, Oregon, 
and Washington. (Section 215)
      The House bill contains no comparable provision.
      The Conference substitute strikes the Senate provision. 
(Section 2101)
      The Managers encourage the Secretary to allow states to 
have flexibility in creating CREP programs.

                  subtitle c--wetlands reserve program

(1) Enrollment
      The House bill allows the Secretary to enroll an 
additional 150,000 acres per year. Any acres not enrolled may 
be carried over to subsequent years. (Section 221)
      The Senate amendment clarifies that technical assistance 
is provided under the WRP and allows the Secretary to raise the 
acreage cap to 2.225 million acres. Of this acreage, the 
Secretary may enroll not more than 25,000 acres per year in the 
Wetlands Reserve Enhancement Program (WREP). (Section 214 (a) 
and (b))
      The Conference substitute adopts the Senate provision 
with modification to increase the acreage cap up to 2.275 
million acres. Also, the substitute requires the Secretary to 
enroll 250,000 acres per year to the maximum extent 
practicable. (Section 2202)
(2) Easements and Cost-Share Allocations
      The House bill strikes language requiring the Secretary 
to enroll acres with numeric allocations to particular methods. 
Directs the Secretary to enroll acres through easements, 
restoration cost share agreements or both. (Section 221)
      The Senate amendment has no comparable provision.
      The Conference substitute strikes the House provision. It 
modifies current law to clarify that land can be enrolled with 
30-year or permanent easements, restoration cost share 
agreements or both. The Conference substitute also continues to 
require the Secretary to enroll lands in proportion to 
landowner interest. (Section 1237(b)(2)(B)). (Section 2203)
(3) Reauthorization
      The House bill extends the WRP through 2011. (Section 
221)
      The Senate amendment extends the WRP through 2006. 
(Section 214(c))
      The Conference substitute extends the WRP through 2007. 
(Section 2201)
(4) Wetlands Reserve Enhancement Program
      The Senate amendment creates a WREP under which the 
Secretary may enter into cooperative with state or local 
governments, and with private organizations, to conduct wetland 
restoration activities that address critical environmental 
issues. (Section 214(d))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2202)
(5) Technical Assistance, Monitoring and Maintenance
      The Senate amendment clarifies that technical assistance 
includes monitoring and maintenance of the terms and conditions 
of the easement and the plan. (Section 214(e))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
(Section 2203)
(6) Easements and Agreements
      The House bill consolidates the language defining 
prohibited activities to prohibit the alteration of wildlife 
habitat and other natural features of such land, 
unlessspecifically permitted by the plan. Consolidates the language 
describing the length of a WRP easement to say that easements shall be 
consistent with applicable state law, and strikes redundant language 
stating that the Secretary can enroll land into the WRP using 
restoration cost-share agreements. (Section 222)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provisions on 
prohibited activities and length of easements. In addition, it 
strikes the redundant provision in current law regarding 
restoration cost-share agreements. (Section 2203)
(7) Duties of the Secretary
      The House bill deletes a provision that requires the 
Secretary to give priority to obtaining permanent conservation 
easements and easements designed to protect and enhance habitat 
for migratory birds and other wildlife. (Section 223)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision. 
(Section 2203)
(8) Changes in Ownership: Agreement Modification; Termination
      The House bill amends the language regarding changes in 
ownership to provide that no easement can be created on land 
that has changed ownership in the past 12 months unless: (1) 
the new ownership was acquired by will or succession as a 
result of the death of the previous owner, (2) the ownership 
change occurred due to foreclosure on the land and the owner of 
the land exercises a right of redemption from the mortgage 
holder in accordance with state law, or (3) the Secretary 
determines that the land was acquired under circumstances which 
give adequate assurances that such land was not acquired for 
the purposes of placing it in the WRP. (Section 223)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
a modification to replace the section on changes in ownership 
due to a foreclosure with new language. (Section 1237E(a)(2)) 
(Section 2204)

          subtitle d--environmental quality incentives program

(1) Purposes
      The House bill strikes language describing the purpose of 
the EQIP as combining four previous conservation programs into 
a single program; strikes language regarding carrying out a 
program to maximize the environmental benefits per dollar 
expended; and rewords language about assisting farmers and 
ranchers who face the most serious environmental threats to 
providing assistance to farmers and ranchers to address 
environmental needs; adds air to the list of resources to be 
addressed; and replaces the terms farmers and ranchers with 
producers. (Section 231)
      The Senate amendment rewrites the purposes of the EQIP to 
promote agricultural production and environmental quality as 
compatible national goals and to: (1) assist producers in 
complying with federal, state and local environmental laws, (2) 
avoid the need for regulatory programs, (3) provide assistance 
to producers for installing and maintaining conservation 
systems, (4) assist producers in making certain conservation 
changes, (5) facilitate partnerships between producers, 
government and nongovernmental organizations, and (6) 
consolidating and streamlining conservation planning; retains 
language regarding a program goal to maximize the environmental 
benefits per dollar expended; and includes air in the purposes 
of the EQIP. (Section 213(a))
      The Conference substitute adopts the Senate provision on 
the purposes of the program with a modification to subsection 
(1) stating that the purposes of EQIP are to promote 
agricultural production and environmental quality as compatible 
goals and to optimize environmental benefits by assisting 
producers in complying with local, state and national 
regulatory requirements concerning soil, water, and air 
quality, wildlife habitat, and surface and ground water 
conservation. (Section 1240) (Section 2301)
      The Conference substitute adopts the Senate provision 
with a modification changing the phrase conservation systems to 
conservation practices. (Section 1240(3)) (Section 2301)
      The Managers expect the Secretary to continue carrying 
out EQIP with the goal of optimizing environmental benefits. 
(Section 213(a))
(2) Definitions
      The House bill adds the term non-industrial private 
forestland to the definition of eligible land. Further, the 
House bill changes the definition of eligible land by striking 
reference to land that poses a serious threat and inserting 
that provides increased environmental benefits to air, soil, 
water or related resources, and adds the term non-industrial 
private forestland to the definition of producer. (Section 
2302)
      The Senate amendment defines the term eligible land to 
include private non-industrial private forestland, defines 
producer with the same meaning given to the term in the 
Agricultural Market Transition Act.
      The definition section includes definitions for: 
beginning farmer and rancher, comprehensive nutrient 
management, eligible land, innovative technology, land 
management practice, livestock, maximize environmental benefits 
per dollar expended, practice, producer and structural 
practice. (Section 213(a))
      The Conference substitute adopts the Senate definition of 
beginning farmer, land management practice, livestock, 
structural practice, and practice. (Section 2301)
      The Conference substitute adopts the Senate definition of 
eligible land with an amendment that adds air to the list of 
protected resources but excludes specific threatening 
conditions. (Section 2301)
      The Conference substitute deletes the Senate provisions 
defining innovative technology and comprehensive nutrient 
management plan. (Section 2301)
      The Conference substitute deletes the Senate provisions 
defining managed grazing, innovative technology, producer, and 
program. The substitute also deletes the Senate provision 
defining the term ``maximize environmental benefits per dollar 
expended,'' thus striking the provision throughout the program. 
(Section 1240(A)(8)) (Section 2301)
(3) Establishment and Administration
      The House bill re-authorizes the EQIP through 2011; 
amends the permissible term of EQIP contracts to allow for 
agreements ranging from one to ten years; amends language 
governing the selection process for structural practice 
applications. Strikes references to priorities established in 
the EQIP and factors to maximize the environmental benefits per 
dollar expended replaces with language directing theSecretary 
to base the selection process on achieving the purposes established 
under this subtitle; removes prohibition on large confined livestock 
operations getting cost-share assistance to build waste management 
facilities; and replaces the language regarding incentive payments with 
new language directing the Secretary to make incentive payments to 
encourage producers to perform multiple land management practices and 
to promote the enhancement of soil, water, wildlife habitat, air and 
related resources. Permits the Secretary to give great weight to 
practices that include residue, nutrient, pest, invasive species and 
air quality management. (Section 233)
      The Senate amendment reauthorizes the EQIP through 2006; 
directs the Secretary to provide conservation education; amends 
the permissible term of EQIP contracts to allow for agreements 
ranging from three to ten years; prohibits a producer from 
entering into more than one contract for structural practices 
relating to livestock nutrient management from fiscal years 
2002 through 2006; directs the Secretary to develop an 
application and evaluation process for awarding assistance that 
maximizes the environmental benefits per dollar expended; 
prohibits the Secretary from assigning a higher priority to an 
application based solely on the reason that it presents the 
least cost to the program; cost-share payments shall not exceed 
75 percent of the cost of the practice; cost-share payments to 
limited resource and beginning farmers shall not exceed 90%; 
removes prohibition on large confined livestock operations 
getting cost-share assistance to build waste management 
facilities; directs the Secretary to make incentive payments in 
an amount and rate determined to be necessary to encourage a 
producer to perform 1 or more practices; directs the Secretary 
to give incentive payments to producers to be used to obtain 
technical assistance associated with the development of any 
component of a comprehensive nutrient management plan from 
certified providers. (Section 213(a)) (Section 2301)
      The Conference substitute adopts the Senate provision 
with modification providing incentive payments for producers 
who develop a comprehensive nutrient management plan. (Section 
1240B(a)(2)) (Section 2301)
      The Conference substitute deletes the Senate provision on 
education. (Section 1240B(a)(3)) (Section 2301)
      The Conference substitute adopts the Senate provision 
with modification on the application and term of contracts. At 
a minimum, the contract should have a term of one year beyond 
the date of completion of the project. (Section 1240B(b)) 
(Section 2301)
      The Conference substitute adopts the Senate provision on 
incentive payments with modification, by including a special 
rule for priority under incentive payments. (House Section 
233(e)) (Section 2301)
      The Conference substitute adopts the House provision by 
striking the provision on the application and evaluation 
process for awarding assistance that maximizes the 
environmental benefits per dollar expended. (House Section 
233(c), Senate 213(a) (1240B(c))) (Section 2301)
      The Conference substitute adopts the Senate provision to 
remove the bidding down procedure that assigns a higher 
priority to an application because it costs less. (Section 
1240B(c)(4)) (Section 2301)
      The Conference substitute adopts the Senate provision on 
increased cost-share payments for beginning and limited 
resource farmers. (Section 1240B(d)) (Section 2301)
      The Conference substitute adopts the House provision on 
technical assistance in EQIP. All technical assistance will be 
addressed in Subtitle E in the Administration and Technical 
Assistance section. (Section 1240B(f)) (Section 2301)
(4) Evaluation of Offers and Payments
      The House bill strikes existing language. Replaces with 
language directing the Secretary to give a higher priority to 
EQIP offers that: (1) aid producers in complying with federal 
and state environmental laws, (2) promote the use of animal 
manure or other similar soil amendments, and (3) encourage the 
utilization of sustainable grazing systems. (Section 234)
      The Senate amendment directs the Secretary to give 
priority to applications that: (1) maximize the environmental 
benefits per dollar expended, (2) national conservation 
priority areas, (3) are provided in conservation priority 
areas, (4) are provided in special projects, or (5) include an 
innovative technology in connection with a structural practice 
or land management practice. (Section 213(a)) (Section 2301)
      The Conference substitute adopts the Senate provision 
with modification on giving higher priority to applications 
that use cost-effective conservation practices and address 
national conservation priorities. (Section 1240C(a)(2)) 
(Section 2301)
      The Conference substitute deletes the Senate provision on 
special projects and innovative technology. (Section 2301)
      Inhibitor Technology.--To make efficient use of urea and 
ammonium fertilizers, reduce nitrate run-off and leaching, and 
the emission of ammonia and greenhouse gases, the incorporation 
of urease inhibitors and nitrification inhibitors into urea and 
ammonium containing fertilizers should be recommended as a best 
management practice.
      Nutrient Management.--Since enactment of the Food, 
Agriculture, Conservation and Trade Act of 1990, Congress has 
been concerned about the impact federal, state and local 
environmental laws eventually would have on U.S. agricultural 
producers and their ability to maintain viable farming and 
ranching operations.
      In the past few years, those laws, regulations and court 
orders have been focused on agriculture. Those provisions 
reflect a disconnect between regulators and agricultural 
producers as well as rural communities. In this posture, U.S. 
farmers and ranchers feel as though they are pressed against an 
inflexible wall of legal and environmental requirements. These 
requirements are issued from Washington in a top-down 
management style that attempts to fit all areas of the country 
into a national program. Congress has responded with financial 
and technical assistance implemented through the USDA.
      In 1996, Congress created the EQIP to help farmers and 
ranchers meet environmental laws. The Managers believe EQIP is 
a valuable tool to help producers avoid the need for future 
regulation, and the Secretary shall manage the program to 
maximize this purpose. As legislation was developed to improve 
EQIP and provide additional resources to it, Congress was 
specifically concerned about how the U.S. livestock industry 
would meet new Clean Water Act requirements on animal feeding 
operations. In that regard, the Managers agree that nutrient 
management, especially animal waste management, is both a 
problem to address and a resource to be used. To that extent, 
the Managers encourage the Secretary to evaluate EQIP contract 
offers ontheir use of animal manures and other similar soil 
amendments that improve soil health, tilth, and water-holding capacity.
      Managed Grazing.--The Managers further encourage the use 
of grazing systems, such as year-round, rotational or managed 
grazing systems, that enhance productive livestock operations.
(5) Duties of Producers
      The Senate amendment requires producers to implement a 
conservation plan; not conduct any practices that defeat the 
purposes of the program; take actions upon termination of a 
contract and supply information to determine compliance, and 
submit a list of all confined livestock feeding operations 
wholly or partially-owned or operated by the applicant. 
(Section 213(a))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a modification removing the requirement to submit a list 
of all confined livestock feeding operations wholly or 
partially-owned or operated by the applicant. (Section 2301)
(6) Environmental Quality Incentives Program Plan
      The House bill strikes language regarding practices and 
principles that the Secretary deems necessary. Replaces with 
language requiring the producer to submit a plan that provides 
or will continue to provide increased environmental benefits to 
air, soil, water or related resources. (Section 235)
      The Senate amendment requires a producer to submit an 
EQIP plan that describes conservation and environmental 
purposes to be achieved through 1 or more practices that are 
approved by the Secretary. Confined livestock feeding 
operations with an animal waste system must develop and 
implement comprehensive nutrient management plans if 
applicable. (Section 1240E(a))
      The Senate amendment requires the Secretary to eliminate 
duplication, to the maximum extent practicable, of planning 
activities under EQIP and other conservation programs. (Section 
1240E(b))
      The Conference substitute adopts the Senate provision 
with modification. All livestock producers that receive funding 
for animal waste manure systems must have a comprehensive 
nutrient management plan. The Managers believe that there will 
be few cases in which a comprehensive nutrient management plan 
will not be required. The Managers recognize the importance of 
comprehensive nutrient management plans for the proper use and 
storage of animal waste and for that reason require these 
plans. (Section 2301)
      The Conference substitute also adopts the Senate 
provision on eliminating duplication. (Section 1240E(a), (b)) 
(Section 2301)
(7) Duties of the Secretary
      The House bill requires the Secretary to provide 
technical assistance and cost-share payments for developing 
structural practices or land management practices. (Section 
236)
      The Senate amendment requires the Secretary to provide 
cost-share assistance and incentive payments for developing and 
implementing one or more practices. (Section 213(a) (1240F)
      The Conference substitute adopts the Senate provision. 
(Section 2301)
      The Managers are aware of the unique conservation and 
production practices utilized by specialty crop growers 
throughout the United States. The Managers expect the USDA to 
ensure that adequate resources are made available for specialty 
crop conservation practices under the EQIP. The Managers also 
expect that, in carrying out the financial assistance 
provisions of the various conservation programs, the unique 
production practices involved in fruit and vegetable production 
are taken into account when drafting and implementing 
regulations to carry out those programs. In particular, the 
Managers would direct the Secretary when enrolling a producer 
who is already undertaking activities related to integrated 
pest management, make those ongoing activities eligible for 
financial assistance after the date of enrollment.
(8) Limitation on Payments
      The House bill raises the payment limits to $50,000 in 
any fiscal year and $200,000 for any multi-fiscal year 
contract, strikes reference to the phrase ``maximization of 
environmental benefits per dollar expended'' in discussion of 
exceptions to the annual limit, and strikes prohibition on 
payment in the same fiscal year in which the contract is 
entered into. (Section 237)
      The Senate amendment raises the payment limitations to 
$30,000 in any fiscal year and $150,000 for any multi-year 
contract of four or more years and permits payment during the 
first year of the contract. The Secretary may waive the annual 
limit. (Section 213(a))
      The Conference substitute adopts the House provision with 
modification. A producer may receive, directly or indirectly, 
up to $450,000 in any combination of contracts over the life of 
the farm bill. The Managers recognize that the Secretary may 
need to adjust cost-share percentages provided under a contract 
to maximize participation and optimize environmental benefits. 
(Section 2301)
(9) Ground and Surface Water Conservation
      The House bill replaces the entire section with a new 
program within the EQIP providing cost-share, low-interest 
loans and incentive payments to encourage ground and surface 
water conservation, and funds at $30 million in fiscal year 
2002, $45 million in fiscal year 2003 and $60 million for 
fiscal years 2004 through 2011. (Section 238)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
modification. Water conservation activities that are eligible 
for incentive payments and cost-share include the lining of 
ditches and installation of piping, tail water return systems, 
low-energy precision irrigation systems, low-flow irrigation 
systems, off-stream and groundwater storage, and conversion 
from gravity or flood irrigation to higher efficiency systems. 
In addition, the Secretary may provide cost-share and incentive 
payments under this section only if the assistance will 
facilitate a conservation measure that results in a net savings 
in ground or surface water resources on the agricultural 
operations of the producers. (Section 2301)
      Of the $600 million in funding made available for this 
program, the Secretary should make available $50 million per 
year to assist producers in the Klamath Basin.
      In providing funding for water conservation incentives, 
the Managers recognize that the High Plains Aquifer underlying 
the states of Texas, New Mexico, Oklahoma, Kansas, Colorado, 
South Dakota, Wyoming, and Nebraska is a critical source of 
groundwater for agricultural and municipal uses. The Managers 
encourage the Secretary to give producers in the High Plains 
Aquifer the highest priority for funding under this program. 
The communities on the High Plains depend on the Aquifer as 
their major water supply. Due to the scope and significance of 
this geological feature, there is a need for regional efforts 
to address groundwater management in the High Plains Aquifer. 
The Managers urge the Secretary to work with state water or 
conservation agencies and agricultural producers in the High 
Plains region to coordinate federal assistance with state 
programs and to encourage cooperation between states in 
implementing conservation incentives and water reduction 
practices.
(10) Desert Terminal Lakes
      The Conference substitute directs the Secretary to 
transfer $200 million to the Bureau of Reclamation to be used 
to provide water to at-risk natural desert terminal lakes. 
These funds cannot be used for the purchase or lease of water 
rights. (Section 2507)
(11) Conservation Grants
      The Senate amendment allows the Secretary to use up to 
$100 million in each of fiscal years 2003 through 2006 for 
competitive grants that are intended to stimulate innovative 
approaches to leveraging federal investment in environmental 
enhancement and protection through the use of the EQIP. Funds 
not obligated by April 1st of the fiscal year shall be used to 
carry out other activities under EQIP. (Section 213(a)) 
(Section 1240H)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision by 
authorizing the Secretary to provide innovation grants. The 
Managers encourage the Secretary to allow funding for these 
grants, including for practices that foster markets for 
nutrient trading and for the continued implementation and 
acceleration of programs for demonstrating innovative nutrient 
management technology systems for animal feeding operations. 
(Section 2301)
      This section has been included as a discretionary use of 
EQIP funds to foster the adoption of innovative, cost effective 
approaches to addressing a broad base of conservation needs.
      This Managers intend that these grants be used to provide 
for the use of incentives to farmers--as opposed to 
regulations--to address some of the nation's most difficult 
conservation needs. By establishing market-based incentives, an 
efficient mechanism is created to improve water quality and 
create environmentally beneficial income alternatives for 
farmers.
      By leveraging Federal funds through competitive grants, 
the Managers expect other sectors of the economy, such as 
States, and the conservation and philanthropic communities will 
be engaged in helping find and deliver the best solutions to 
environmental needs.
(12) Southern High Plains Aquifer Groundwater Conservation
      The Senate amendment creates a southern High Plains 
Aquifer groundwater conservation program. Directs the Secretary 
to provide cost-share payments, incentive payments and 
groundwater education assistance to producers that draw water 
from the southern High Plains Aquifer. Funds at $15 million for 
fiscal year 2003, $25 million for fiscal years 2004 and 2005, 
$35 million for fiscal year 2006 and $0 for fiscal year 2007. 
Funds not expended by April 1st of each fiscal year shall be 
made available for other states under EQIP. (Section 213(a)) 
(Section 1240I)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision, 
but recognizes the importance of providing producers access to 
funds to aid their efforts in water conservation. (Section 
2301)
(13) Pilot Programs
      The Senate amendment creates a drinking water suppliers 
pilot program in selected watersheds to allow the Secretary to 
work cooperatively with local water utilities to improve water 
quality. The Secretary shall also carry out a nutrient 
reduction pilot program in the Chesapeake Bay watershed for 
fiscal years 2003 through 2006 to reduce nutrient loads in the 
Chesapeake Bay. Funds at $10 million for fiscal year 2003, $15 
million for fiscal year 2004, $20 million for fiscal year 2005, 
$25 million for fiscal year 2006 and $0 for fiscal year 2007. 
Funds not obligated by April 1st shall be made available under 
EQIP. (Section 213(a)) (Section 1240J(a), (b))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision on 
the drinking water suppliers pilot program. In so doing, the 
Managers believe that coordination with third parties, 
including drinking water suppliers should be encouraged. Any 
projects which involve drinking water suppliers and EQIP 
participants should be encouraged. (Section 1240J(a)) (Section 
2301)
      The Conference substitute deletes the Senate provision on 
the nutrient reduction pilot program.
(14) Section 11
      The Senate amendment amends Section 11 of the Commodity 
Credit Corporation (CCC) Charter Act to exclude transfers and 
allotments for conservation technical assistance from the 
current limitation. (Section 213(c))
      The House bill contains no comparable provision.
      The Conference deletes the Senate provision. The Managers 
understand the critical nature of providing adequate funding 
for technical assistance. For that reason, technical assistance 
should come from each individual program. (Section 2301)
(15) Water Benefits Program
      The Senate amendment states that the Secretary shall 
establish a Water Benefits Program, run through the Natural 
Resources Conservation Service (NRCS), in Nevada, California, 
New Mexico, Oregon, Washington, Maine and New Hampshire for 
cost-share payments for practices, including irrigation 
efficiency infrastructures and conversions from a water-
intensive crop to a crop that requires less water, aimed at 
conservation ofwater to benefit fish and wildlife, with special 
emphasis on threatened and endangered species. (Section 1240R)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

                 Subtitle E--Funding And Administration

(1) Reauthorization
      The House bill reauthorizes these programs through 2011. 
(Section 241)
      The Senate amendment has no comparable provision.
      The Conference substitute reauthorizes the CCEP programs 
through 2007. (Section 2701)
(2) Funding
      The House bill funds EQIP at $1.025 billion in fiscal 
years 2002 and 2003, $1.2 billion in fiscal years 2004, 2005 
and 2006, $1.4 billion in fiscal years 2007, 2008 and 2009, and 
$1.5 billion fiscal years 2010 and 2011. (Section 242)
      The Senate amendment funds EQIP at $500 million in fiscal 
year 2002, $1.3 billion in fiscal year 2003, $1.45 billion in 
fiscal years 2004 and 2005, and $1.5 billion in fiscal year 
2006 and $850 million in fiscal year 2007. (Section 213(b))
      The Conference substitute funds EQIP at $400 million in 
fiscal year 2002, $700 million in fiscal year 2003, $1 billion 
in fiscal year 2004, $1.2 in fiscal years 2005 and 2006, and 
$1.3 billion in fiscal year 2007. (Section 2701)
(3) Allocation for Livestock Production
      The House bill extends the allocation of 50 percent of 
the EQIP funding to livestock through 2011. (Section 243)
      The Senate amendment removes the allocation formula.
      The Conference substitute adopts the House provision with 
modification to allow 60 percent for practices related 
livestock and 40 percent for practices related to crops through 
fiscal year 2007. (Section 2701)
(4) Administration and Technical Assistance
      The House bill broadens the exception to the acreage 
limitation by striking the requirement that operators in the 
county be having difficulties complying with a conservation 
plan, and requires the Secretary to reevaluate the provision of 
and amount of technical assistance made available under CRP, 
WRP and EQIP. (Section 244)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision with 
modification. The Managers provide that funds for technical 
assistance shall come directly from the mandatory money 
provided for conservation programs under Subtitle D. (Section 
2701)
      In order to ensure implementation, the Managers believe 
that technical assistance must be an integral part of all 
conservation programs authorized for mandatory funding. 
Accordingly, the Managers have provided for the payment of 
technical assistance from program accounts. The Managers expect 
technical assistance for all conservation programs to follow 
the model currently used for the EQIP whereby the Secretary 
determines, on an annual basis, the amount of funding for 
technical assistance. Furthermore, the Managers intend that the 
funding will cover costs associated with technical assistance, 
such as administrative and overhead costs.
(5) Third-Party Providers
      The House bill requires the Secretary to develop a system 
for approving third-party providers to give technical 
assistance within six months of the enactment of this 
subsection. (Section 244)
      The Senate amendment requires the Secretary to establish 
provisions for increased technical assistance by nonfederal 
providers, including certification of providers (without 
undermining private certification organizations). The Secretary 
may also enter cooperative agreements with state, local and 
nongovernmental groups to provide technical assistance. The 
Secretary shall require certification (including payment of a 
fee) for providers of technical assistance and offer waivers 
for both certification and fee payment. The Secretary shall 
establish an advisory committee with federal, state, local and 
private representatives charged with advising the Secretary on 
third-party technical assistance. (Section 204(f))
      The Conference substitute adopts the House provision with 
modification. The Managers strongly encourage the Secretary to 
design a certification program for approving individuals and 
entities to provide technical assistance that includes 
individuals currently providing technical assistance through 
agreements or contracts, including cooperative agreements and 
memorandums of understanding. Persons that have provided 
technical assistance through a previous agreement such as a 
memorandum of understanding contract or cooperative agreement 
with the Secretary may continue to provide technical 
assistance. Their certification should be evaluated according 
to the criteria established by the regulations. In addition, 
the Secretary may request the services of, and enter into a 
cooperative agreement or a contract with, non-federal entities, 
a state water quality agency, a state fish and wildlife agency, 
a state forestry agency, a state conservation agency or 
conservation district, a land grant institution or other 
institutions of higher learning, or any other governmental or 
non-governmental organization. (Section 2701)
      Today there is considerable interest in both the private 
and public sectors to provide technical assistance for USDA 
conservation programs. In the past, USDA has been the primary 
provider of technical assistance to conservation program 
participants. However, it will be difficult to meet the 
increased demand for technical services as financial assistance 
increases over the life of the farm bill. The potential volume 
of many new, as well as returning, USDA conservation program 
participants may overwhelm the assistance available through 
existing resources. To meet this demand, assistance from third-
party providers will be needed.
      It is the intent of the Managers that the third-party 
technical assistance certification program will result in a 
pool of individuals and organizations and agencies that are 
qualified to provide technical assistance to producers related 
to the development and implementation of conservation 
practices. The Managers intend for the Secretary to seek to 
optimize the delivery of technical assistance through public 
and private sources, and in conjunction with USDA staff, to 
effectively, efficiently, and expeditiously deliver 
conservation programs.
      The Managers intend that third-party vendors accepting 
federal technical assistance payments will follow all the 
applicable Federal laws. Furthermore, theManagers intend for 
third parties to accept the appropriate liability for the adequacy of 
their plans, practice designs, and implementation procedures, and to 
comply with all appropriate privacy and confidentiality requirements.
      It is the Managers intent in this section that third-
party private providers may certify that the technical 
assistance meets USDA standards, but it is not intended as a 
certification for approval of program payment.

                       Subtitle F--Other Programs

(1) Private Grazing Land and Conservation Assistance
      The House bill adds sustainable grazing systems to the 
list of activities eligible for assistance. (Section 251)
      The Senate amendment reauthorizes program to 2006. 
(Section 217 (Section 1240P))
      The Conference substitute adopts the Senate provision, 
with a modification to remove the findings section. The 
substitute reauthorizes the program through 2007. (Section 
2501)
(2) Wildlife Habitat Incentives Program
      The Senate amendment allows the Secretary to provide 
cost-share payments and technical assistance to landowners to 
develop and enhance wildlife habitat. Funds the Wildlife 
Habitat Incentive Program (WHIP) at $50 million in fiscal year 
2002, $225 million for fiscal year 2003, $275 million for 
fiscal year 2004, $325 million for fiscal year 2005, $355 
million for fiscal year 2006, and $50 million for fiscal year 
2007. The amendment reserves at least 15 percent of funds for 
projects to benefit endangered, threatened and sensitive 
species, allows the Secretary to establish a pilot program 
using up to 15 percent of the funds to enroll lands for at 
least 15 years for essential habitat, and allows the Secretary 
to provide grants to individuals or nonprofit groups that lease 
public lands for enhancing wildlife habitat, if the work on the 
public land if it directly benefits private land. (Section 217)
      The House bill funds WHIP at $25 million in fiscal year 
2002, $30 million in fiscal years 2003 and 2004, $35 million in 
fiscal years 2005 and 2006, $40 million in fiscal year 2007, 
$45 million in fiscal years 2008 and 2009, and $50 million in 
fiscal years 2010 and 2011. (Section 252)
      The Conference substitute adopts the House amendment with 
modification. Cost-share payments will be made to landowners to 
develop upland wildlife, wetland wildlife, threatened and 
endangered species, fish and other types of wildlife habitat. 
Up to 15 percent of annual funds under this section may be for 
increased cost-share payments to producers to protect and 
restore essential plant and animal habitat using agreements 
with a duration of at least 15 years. The Managers strongly 
encourage the Secretary to continue using at least 15 percent 
of funds for threatened and endangered species. (Section 2502)
      The Conference substitute funds the program as follows: 
$15 million for fiscal year 2002; $30 million for fiscal year 
2003; $60 million for fiscal year 2004; $85 million for each of 
fiscal years 2005 through 2007. (Section 2502)
      Where private lands adjoin public lands that are leased 
by the same producer, the Secretary may provide WHIP assistance 
if the conservation purpose directly benefits the adjacent 
private lands.
(3) Farmland Protection Program
            (a) Acreage and eligibility
      The House bill strikes the acreage limitation, and makes 
agricultural land that contains historic or archaeological 
resources eligible for enrollment. (Section 253)
      The Senate amendment strikes the Farmland Protection 
Program (FPP) from the 1996 FAIR Act and moves to the 1985 Farm 
Bill, strikes the acreage limitation, expands the definition of 
eligible land, and makes agricultural land that contains 
historic or archaeological resources eligible for enrollment. 
(Section 218)
      The Conference substitute adopts the Senate provision. 
(Section 1238H(1)) (Section 2503)
      The Conference substitute adopts the Senate provision 
with clarification that forested land can only be enrolled if 
it is an incidental part of the agricultural operation. 
(Section 1238H(2)) (Section 2503)
      FPP has been a successful program and the Managers' 
intent is that it continue to protect the nation's best working 
agricultural lands. Although the name of the FPP shall remain 
the same for the purpose of continuity, the purpose of the 
program has been expanded to also include grazing, pasture, 
range, and forestland that is a part of an agricultural 
operation.
      In order to ensure that all states can participate in the 
program, the Managers have added non-profit organizations as 
eligible entities. In addition, the Managers recognize the need 
to protect important historic and archaeological resources 
located on farms and ranches.
            (b) Funding
      The House bill increases funding to $50 million per year 
in FY 2002 through 2011. (Section 253)
      The Senate amendment increases FPP funding to $150 
million in fiscal year 2002, $250 million in fiscal year 2003; 
$400 million in fiscal year 2004, $450 million for fiscal year 
2005, $500 million in fiscal year 2006, and $100 million for 
fiscal year 2007. (Section 218)
      The Conference substitute funds the program as follows: 
$50 million for fiscal year 2002, $100 million for fiscal year 
2003, $125 million for fiscal years 2004 and 2005, $100 million 
for fiscal year 2006, and $97 million for fiscal year 2007. 
(Section 2503)
            (c) Purchase of conservation easements
      The House bill clarifies entities that are eligible to 
receive funding for the purchase of conservation easements. 
(Section 253)
      The Senate amendment clarifies entities that are eligible 
to receive funding for the purchase of conservation easements. 
(Section 218)
      The Conference substitute adopts the Senate provision. 
(Section 2503)
      The Managers expect the Secretary to utilize funds out of 
the FPP to protect from development the farm operated by 
American Airlines Captain John Ogonowski, the pilot of AA 
Flight 11 that was hijacked on September 11, 2001. The Managers 
direct the Secretary to work with the Dracut Land Trust, 
Incorporated, in Dracut, Massachusetts, to preserve this prime 
farmland as a working memorial to Captain Ogonowski. 
TheManagers understand that the Dracut Land Trust would intend to keep 
a portion of the farm available for the New Entry Sustainable Farming 
Project that assists immigrant farmers from Cambodia, a project that 
Captain Ogonowski was deeply involved with from its inception.
            (d) Market viability grants
      The Senate amendment allows the Secretary to use up to 
$10 million annually to provide matching market viability 
grants. The grantee must provide matching funds, limits federal 
cost-share to 50 percent of the appraised fair market value of 
the easement. (Section 218)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modification allowing for authorization of funding for 
market viability grants. (Section 218(b)) (Section 2503)
(4) Resource Conservation and Development Program
      The House bill provides permanent authorization for the 
Resource Conservation and Development (RC&D) program and makes 
technical and conforming changes necessary to the program. 
(Section 254)
      The Senate amendment provides permanent authorization for 
the RC&D program and makes technical and conforming changes 
necessary to the program. (Section 216)
      The Conference substitute adopts the Senate provision 
with the modification that Senate amendment section 1532(e) 
will be struck, thereby disallowing an RC&D Council from using 
another person or entity to assist in developing and 
implementing an area plan. (Section 2504)
(5) Grassland Reserve Program
            (a) Establishment
      The House amendment establishes a Grasslands Reserve 
Program (GRP) under which the Secretary may enroll up to 2 
million acres (1 million acres of restored grassland, 1 million 
acres of virgin (never cultivated) grassland) using ten, 
fifteen and twenty-year contracts as well as thirty-year and 
permanent easements.
      The Senate amendment establishes a GRP under which the 
Secretary may enroll up to 2 million acres of natural grassland 
or land that was historically natural grassland using thirty-
year rental agreements, easements or permanent easements.
      The Conference substitute adopts the House provision with 
modification that the total number of acres shall not exceed 2 
million acres of restored, improved, or natural grassland, 
rangeland and pastureland, including prairie. The Secretary 
shall enroll not less than 40 contiguous acres of land using 
ten-year, fifteen-year, twenty-year and thirty-year contracts 
as well as thirty-year and permanent easements. The Secretary 
may provide a waiver for smaller tracts of land in the case of 
exceptional acreage that meets the purposes of the program. 
(Section 2401)
      The Managers expect the Secretary to use 40 percent of 
the funds to conduct the sign-up and enrollment for the ten, 
fifteen, and twenty-year GRP contracts in a manner similar to 
the method currently used by the Secretary for the CRP. This 
should allow for enrollment competition that will limit the 
cost per acre but encourage the producer to maintain or 
initiate sound grazing practices commonly used in the local 
area. For long-term agreements and easements, the Managers 
intend that the sign-up be conducted in a manner similar to the 
WRP. The standards for grazing should be no more stringent than 
those used in the CRP, the CSP or the FPP. All grasslands 
should receive equitable treatment in the sign-up and 
enrollment process.
            (b) Funding
      The House amendment provides $254 million in funding. Not 
more than one-third of this money may be used to acquire 
permanent easements.
      The Senate amendment directs that funding shall be 
provided through the CCC.
      The Conference substitute adopts the House provision with 
modification that 60 percent of this money may be used to enter 
into thirty-year agreements and acquire thirty-year and 
permanent easements. (Section 2401)
            (c) Eligible practices
      The House bill permits common grazing practices where 
consistent with maintaining the viability of natural grass and 
shrub species indigenous to that locality, allows for haying, 
mowing or haying for seed production except during the nesting 
season for birds in the local area which are in significant 
decline or are conserved pursuant to state or federal law as 
determined by NRCS. The bill also permits the construction of 
firebreaks and fences. The House bill prohibits the production 
of any agricultural commodity (other than hay) and any other 
activity that would disturb the surface of the land covered by 
the agreement.
      The Senate amendment permits common grazing practices 
where consistent with maintaining the viability of natural 
grass, shrub, forb and wildlife species indigenous to that 
locality and allows for haying, mowing or haying for seed 
production except during the nesting or brood-rearing season 
for birds in the local area which are in significant decline as 
determined by NRCS. It permits the construction of firebreaks 
and fences and gives emphasis to support for native grassland 
and land containing shrubs or forb, grazing operations, and 
plant and animal bio-diversity under the threat of conversion. 
The Senate amendment prohibits the production of any 
agricultural commodity (other than hay) and any other activity 
that would disturb the surface of the land covered by the 
agreement. The Secretary together with the State technical 
committee shall establish criteria for ranking applications, 
but shall emphasize support for grazing operations, 
biodiversity and lands under greatest threat of conversion.
      The Conference substitute adopts the House provision with 
modification. (Section 2401)
      The Managers intend that the Secretary shall permit 
common grazing practices. In permitting such activities, the 
Managers intend that the Secretary will allow for maintenance 
and necessary cultural practices common to grazing systems 
utilized throughout the various regions of the country. These 
management practices may include such things as: controlled 
burning, aeration, over-seeding, reseeding, planting of new 
native species or any other practice as determined by the 
Secretary to be necessary for grazing management. Beyond 
maintenance, the Managers intend that the Secretary will permit 
haying, mowing, or harvesting for seed production, subject to 
appropriate restrictions for completion of the nesting season 
for birds in the local area which are in significant decline or 
are conserved pursuant to state or federal law, as determined 
by the NRCS state conservationist.
            (d) Payments
      The House amendment directs that contract payments shall 
be made annually in an amount that is not more than 75 percent 
of the grazing value of the land. Easement payments may be made 
as a single payment or a series of annual payments. In the 
caseof a permanent easement, the payment shall be equal to the fair 
market value of the land less the grazing value of the land encumbered 
by the easement. With respect to a thirty-year easement, the payment 
shall be equal to 30 percent of the fair market value of the land less 
the grazing value of the land for the period that the land is 
encumbered by the easement. In addition to incentive payments, the 
Secretary is authorized to provide cost-share assistance for 
restoration projects. In the case of virgin grassland, these payments 
may not exceed 90 percent of the restoration costs. With respect to 
restored grasslands, these payments may not exceed 75 percent of such 
costs. (Section 255)
      The Senate amendment establishes payments for permanent 
easements that shall equal the fair market value of the land 
less the grazing value and for 30-year easements, 30% of the 
fair market value of the land less the grazing value. 30-year 
rental agreements shall be equal, to the maximum extent 
possible, to the payment for 30-year easements. The Secretary 
shall provide up to 75% of cost-share for restoration of 
grassland. The Secretary may permit an eligible private 
organization or state agency to hold and enforce an easement. 
(Section 219)
      The Conference substitute adopts the House provision with 
modification to use the Senate formula for thirty-year 
agreements as well as thirty-year and permanent easements. 
(Section 2401)
(6) Farmland Stewardship Program
      The House bill establishes a new program to use federal 
conservation programs in conjunction and cooperation with state 
and local conservation efforts, and enables the Secretary to 
implement or combine together the features of the WRP, WHIP, 
FPP, the new Forest Land Enhancement Program (FLEP) or other 
conservation programs where feasible. (Section 256)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision. 
(Section 2502)
(7) Small Watershed Rehabilitation Program
      The House bill authorizes appropriations to fund the 
program at $15 million annually for fiscal year 2002 and each 
succeeding fiscal year. (Section 257)
      The Senate amendment has no comparable provision.
      The Conference substitute adopts the House provision, 
providing $275 million over the length of this legislation and 
reauthorizes the program. (Section 2505)
(8) Provision of Assistance For Repaupo Creek Tide Gate and Dike 
        Restoration Project, New Jersey
      The House bill directs the Secretary, acting through 
NRCS, to provide assistance for planning and implementation of 
the Repaupo Creek Tide Gate and Dike Restoration Project. 
(Section 258)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision. 
(Section 2501)
(9) Conservation Corridor Demonstration Program
      The Conference substitute adopts a new provision not 
contained in either bill that requires the Secretary of 
Agriculture to establish a conservation corridor demonstration 
program on the Delmarva Peninsula in the states of Delaware, 
Maryland and Virginia located on the east side of the 
Chesapeake Bay. A state, local government or combination of 
states must submit a plan and commit resources in order to 
participate in the program that is designed to demonstrate 
local conservation and economic cooperation using existing 
agriculture and forestry conservation programs of the 
Department of Agriculture.
      The Managers intend that this new program may use only 
conservation program funds for which they are authorized and 
annually appropriated by the Congress.

                       Subtitle G--Miscellaneous

(1) Grassroots Source Water Protection Program
      The Senate amendment authorizes $5 million annually from 
fiscal years 2002 to 2006 for a national grassroots water 
protection program to more effectively use technical 
capabilities of each state rural water association that 
operates a well-head or groundwater protection program. 
(Section 217 (Section 1240Q))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision.
(2) Underserved States
      The Conference substitute adopts a provision adding $10 
million per year for USDA's Agriculture Management Assistance 
Program for fiscal years 2003 through 2007. The program assists 
states found by USDA to be under-served in the Agricultural 
Risk Protection Act of 2000.
(3) Organic Agriculture Research Trust Fund
      The Senate amendment establishes an Organic Agriculture 
Research Trust Fund.
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with funding of $3 million a year through the life of the bill. 
(Section 231)
(4) Establishment of National Organic Research Endowment Institute
      The Senate amendment states that the Secretary shall 
establish a National Organic Research Endowment Institute.
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(5) Allocation of Conservation Funds by State
      The Senate amendment states that the Secretary shall, to 
the maximum extent possible, provide each state with a minimum 
of $12 million annually from conservation programs. Each state 
shall be provided $5 million from EQIP and a minimum of $7 
million from other conservation programs administered by the 
Secretary. Any funds not obligated under this provision by 
April 1 of the fiscal year shall be available to carry out 
activities under Subtitle D. (Section 241)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with modification. Before April 1 of each fiscal year, priority 
for funding for conservation programs, excluding CRP, CSP and 
WRP, shall be given to approved applications in any state that 
has notreceived cumulative conservation funding for the fiscal 
year of at least $12 million. The Managers understand that only 
participants who qualify under the individual program from which funds 
will be provided shall be eligible to receive this priority under this 
program.
(6) Watershed Risk Reduction
      The Senate amendment states that the Secretary, acting 
through NRCS, shall cooperate with landowners and land users to 
conduct projects (including the purchase of flood plain 
easements) to safeguard lives and property from floods, 
drought, and the products of erosion on any watershed. Priority 
shall be given to any project or activity that is carried out 
on a flood plain adjacent to a major river and there is 
authorized to be appropriate $15 million for each of fiscal 
years 2002 through 2006. (Section 217 (Section 1240N))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(7) Great Lakes Basin Program For Soil Erosion and Sediment Control
      The Senate amendment authorizes the Secretary of 
Agriculture, in consultation with the Great Lakes Commission, 
and in cooperation with the Administrator of the Environmental 
Protection Agency and the Secretary of the Army to carry out a 
program in the Great Lakes basin for soil erosion and sediment 
control. There is an authorization of appropriations of $5 
million for each of the fiscal years 2002 through 2006. (Sec. 
12400)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate amendment.
(8) Cranberry Acreage Reserve Program
      The Senate amendment states that the Secretary shall 
establish a program to purchase permanent easements on wetlands 
or buffer strips adjacent to a wetland that is environmentally 
sensitive and has or is used for cultivation of cranberries. 
The purchase price should reflect the range of values for 
agricultural and non-agricultural lands. The section authorizes 
appropriations of $10 million. (Section 261)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision and 
moves the item to the Miscellaneous Title of this legislation.
(9) Klamath Basin
      The Senate amendment provides that the Secretary shall, 
in coordination with the Secretary of the Interior, establish 
the Klamath Basin Interagency Task Force composed of relevant 
federal agencies to use conservation programs to address the 
environmental and agricultural needs of the Klamath Basin. 
(Section 262)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision, 
however, funding is provided to assist producers in the Klamath 
Basin under the new section 1240I, Ground and Surface Water 
Conservation.
      The Managers encourage the U.S. Department of Agriculture 
to make full use of specific funding of $50,000,000 for the 
Klamath Basin contained in the new water conservation program 
to help farmers and ranchers with cost-share assistance, 
incentive payments and technical assistance.
(10) State Technical Committees
      The Senate amendment expands and updates membership of 
State Technical Committee to include NRCS (instead of the Soil 
Conservation Service) as chair, Farm Service Agency, land grant 
colleges and universities, and forestry experts. (Section 1261)
      The House bill contains no comparable provision
      The Conference substitute deletes the Senate provision.
      The Managers strongly encourage updating the involvement 
of interested experts, including those with expertise in 
forestry and land grant colleges. Also, the Managers are 
concerned about reports that in some states, members of state 
technical committees are not fully included. The Managers 
strongly encourage the Secretary to ensure that chairpersons of 
the committee strive to increase involvement.

                          Subtitle H--Repeals

(1) Provisions of the Food Security Act of 1985
      The House bill repeals various authorities including the 
wetlands mitigation-banking program (1222(k)), environmental 
easement program (chapter 3 of subtitle D), conservation farm 
option (chapter 5 of subtitle D) and tree planting initiative 
(1256). Repeals various provisions of the CRP and WRP. (Section 
261)
      The Senate amendment has no comparable provision.
      The Conference substitute deletes the House provision.
(2) National Natural Resources Conservation Foundation Act
      The House bill repeals subtitle F of Title III of the 
1996 FAIR Act. (Section 262)
      The Senate amendment permits the Secretary to authorize 
the Foundation to use, license or transfer symbols, slogans and 
logos of the Department. Requires that all revenues be 
transferred to NRCS account to carry out conservation 
operations. (Section 221)
      The Conference substitute adopts the Senate provision 
with a modification to authorize the Foundation to license 
logos of the Foundation and explicitly prohibits the licensing 
of any symbol or logo of a government entity. (Section 2506)

                            Title III--Trade

(1) Market Access Program
      The House bill reauthorizes the Market Access Program 
through 2011 and increases funding to $200 million. (Section 
301)
      The Senate amendment reauthorizes MAP through 2006, and 
increases MAP funding to: $100 million in 2002, $120 million in 
2003, $140 million in 2004, $180 million in 2005, and $200 
million in 2006. It also establishes priority for new program 
participants and programs in emerging markets for amounts above 
$90 million and authorizes the new Quality Export Initiative to 
identify high quality U.S. agricultural products. This 
initiative will be subject to appropriations. (Section 322)
      The Conference substitute adopts the Senate provision on 
reauthorization through 2007, at the following annual funding 
levels: $100 million in 2002, $110 million in 2003, $125 
million in 2004, $140 million in 2005, and $200 million in 2006 
and subsequent years. It establishes that proposals submitted 
by new program participants and programs in emerging markets 
shall receive consideration equal to that given to current 
program participants for new funds made available. It includes 
no provision dealing with the Quality Export Initiative 
program. (Section 3103)
(2) Food for Progress
      The House bill includes the following: reauthorizes Food 
for Progress through 2011; increases the limits on Commodity 
Credit Corporation funding for administrative costs to $15 
million; increases the limits on Commodity Credit Corporation 
funding for transportation costs related to distribution of 
commodities to $40 million; excludes from the limitations on 
tonnage in Section 1110(g) of Food for Progress those 
commodities furnished on a grant basis or on credit terms under 
title I of the Agricultural Trade Development Act of 1954; 
increases limits on amounts of commodities to 1,000,000 metric 
tons; encourages the President to approve agreements that 
provide commodities to be made available for distribution or 
sale on a multi-year basis; allows for the use of U.S. dollars 
and other currencies for the monetization of commodities by 
authorizing the President to use ``proceeds''; adds a new 
provision that encourages the Secretary to finalize program 
agreements and requests before the beginning of the relevant 
fiscal year; and requires the Secretary to provide the House 
Committee on Agriculture, House Committee on International 
Relations and the Senate Committee on Agriculture, Nutrition 
and Forestry a list of approved programs, countries and 
commodities, and the total amounts of funds approved for 
transportation and administrative costs related to Food for 
Progress by November 1 of the relevant fiscal year. (Section 
302)
      The Senate amendment includes the following: rewrites 
Food for Progress as a new Title VIII of the 1978 Agricultural 
Trade Act called ``Food for Progress and Education Programs,'' 
authorized through 2006; permits USDA to provide agricultural 
commodities to support introduction or expansion of free trade 
enterprises in recipient country economies; defines eligible 
commodities as ``agricultural commodities (including vitamins 
and minerals) acquired by the Secretary or the Corporation for 
disposition in a program authorized under this title''; 
provides that not more than $55 million of the funds made 
available may be used to cover non-commodity costs, of which 
not more than $12 million may be used to cover administrative 
costs; establishes a 400,000 MT minimum tonnage per year for 
the program; allows multi-year PVO agreements and certified 
institutional partners status for PVO's; allows monetization in 
U.S. dollars; encourages timely and streamlined approval 
programs; directs the Secretary to make program announcements 
before the beginning of the fiscal year; requires eligible 
organizations with agreements under this title to submit 
reports to the Secretary containing such information as is 
required relating to the use of commodities and funds provided 
for said agreements; requires that assistance under this title 
shall be coordinated with other forms of foreign assistance 
under the mechanism designated by the President; requires the 
Secretary to ensure that each eligible organization is 
optimizing the use of donated commodities, as follows: (1) 
taking into account the needs of target populations in 
recipient countries; (2) working with recipient countries and 
institutions or groups within those countries to design 
mutually acceptable programs; (3) monitor and report on 
distribution and sale of eligible commodities using accurate 
and timely reporting methods; (4) periodically evaluate the 
eligible organization's program effectiveness; and (5) consider 
means of improving program operation.
      Agricultural commodities shall be made available under 
this title without regard to political, geographic, ethnic, or 
religious identity of the recipient. The Secretary is barred 
from providing commodities under any agreement that requires or 
permits the distribution or handling of those commodities by 
any military forces, except when non-military channels are not 
available and the Secretary deems that conditions require such 
distributions occur.
      The Senate amendment also authorizes the appropriation of 
such sums as may be necessary to carry out the title, plus 
permits the use of P.L. 480 Title I funds; Provides that all 
commodities related expenses must be in addition to any other 
P.L. 480 assistance. (Section 325)
      The Conference substitute adopts the House bill 
provisions in the following areas: (1) the program is 
reauthorized through 2007; (2) an exclusion from the limitation 
on tonnage for those commodities furnished on a grant basis or 
on credit terms under title I; (3) encouragement of the 
President to finalize agreements before the beginning of the 
relevant fiscal year, and provision by the President to the 
relevant Committees a list of approved programs, countries, and 
commodities by December 1 of the relevant fiscal year; (4) 
definition of eligible commodities, and (5) funding levels for 
the program, both for non-commodity costs and administrative 
expenses.
      The Conference substitute adopts the following House 
provisions with modifications. The President was encouraged to 
approve agreements on a multi-year basis; the provision was 
expanded to include all eligible organizations rather than just 
PVO's and to encourage multi-country agreements as well, 
subject to the availability of commodities.
      The Conference substitute adopts the Senate provisions on 
monetization of commodities in U.S. dollars, on minimum 
tonnage. In recognition of the Senate provision on certified 
institutional partners, the Conference substitute adopts 
language to streamline, improve and clarify the application, 
approval, and implementation processes pertaining to agreements 
under the Food for Progress program. It also requires the 
Department to undertake consultation with the relevant 
Congressional Committees within one year of enactment of the 
Act on the Department's progress in achieving streamlining. 
Unlike the certified institutional partners provisions, the 
streamlining provisions will apply equally to all eligible 
organizations, whether or not they have previously participated 
in the program.
      The Conference substitute amends the existing Food for 
Progress Act of 1985, rather than establishes a new Title VIII 
of the Agricultural Trade Act of 1978. Out of the Senate 
amendment, it incorporates a definition section in the statute, 
establishes quality assurance requirements, and requires the 
President to ensure that each eligible organization is 
optimizing the use of donated commodities, as follows: (1) 
taking into account the needs of target populations in 
recipient countries; (2) working with recipient countries and 
institutions or groups within those countries to design 
mutually acceptable programs; (3) monitor and report on 
distribution and sale of eligible commodities using accurate 
and timely reporting methods; and (4) periodically evaluate the 
eligible organization's program effectiveness. It also 
establishes the purposes of the program. (Section 3106)
      The Managers are aware of the Food Aid Review conducted 
by the Administration, which is a continuing process of review 
of all foreign food aid programs. The Administration plans to 
make several changes beginning in FY 2003, which include USDA 
administering all government-to-government programs as a result 
of funding Food for Progress programs through Title I and USAID 
administering most private voluntary programs through Title II.
      Under the current Food for Progress statute, eligible 
organizations include private voluntary organizations, 
cooperatives, other non-governmental and intergovernmental 
organizations, as well as foreign governments. In providing 
additional resources and establishing a minimum tonnage 
requirement for the Food for Progress program under this 
section, the Managers wish to see the program accessible to all 
eligible organizations submitting proposals. The 
Administration's ongoing food aid review should take this into 
consideration. In many circumstances, the institutional 
experience of private voluntary organizations and other 
organizations may be crucial in determining the success or 
failure of projects in emerging markets under the Food for 
Progress program.
(3) Surplus Commodities for Developing or Friendly Countries
      The House bill authorizes the use of U.S. dollars and 
other currencies for the monetization of commodities and 
requires the Secretary to publish in the Federal Register by 
October 31 of each fiscal year an estimate of the total 
commodities available under this section for that fiscal year 
and encourages the Secretary to finalize agreements by Dec. 31. 
(Section 303)
      The Senate amendment authorizes the use of U.S. dollars 
and other currencies for the monetization of commodities, 
strikes subparagraph 416(b)(8)(A), allows direct delivery of 
commodities to milling or processing facilities in recipient 
countries, with proceeds of transactions going to eligible 
organizations to carry out the approved project, permits PVO's 
to apply to become certified institutional partners, and 
provides that PVO's may submit multi-country proposals. 
(Section 334)
      The Conference substitute adopts the House provision with 
respect to monetization and requiring the Secretary to report 
by October 31 the commodities available under this section for 
that fiscal year. The Conference substitute adopts the Senate 
provision with respect to encouraging submission of multi-
country proposals, expanded to include all eligible 
organizations rather than just PVO's, and to encourage multi-
year agreements as well, subject to the availability of 
commodities. The conference substitute omits the Senate 
provision on direct delivery of commodities.
      The Conference substitute also adopts the Senate 
provision on certified institutional partners, with the 
following changes: within 270 days, the Secretary shall review 
and, as necessary, make changes in regulations and internal 
procedures designed to streamline, improve, and clarify the 
application, approval, and implementation processes pertaining 
to agreements under Section 416(b). It also requires the 
Secretary to undertake consultation with the relevant 
Congressional Committees within one year of enactment of the 
Act on the Secretary's progress in achieving streamlining. 
These new procedures will apply equally to all eligible 
organizations, whether or not they have previously participated 
in the program. (Section 3201)
      The Managers believe that the use of donated American 
agricultural commodities to support rural electrification 
overseas is a highly appropriate use of surplus commodity 
monetization, particularly where the USDA's own rural 
electrification expertise can be added to the on-going efforts 
of American electric cooperatives to ``export'' the successful 
rural electrification model that was established with the Rural 
Electrification Administration. The Conferees encourage the 
Secretary of Agriculture to direct a more aggressive rural 
electrification development effort as part of USDA's 
monetization programs under section 416(b) of the Agricultural 
Act of 1949, including collaboration with other international 
development agencies in leveraging funds to build on the 
successful experience of American electric co-op projects in 
less developed countries.
(4) Export Enhancement Program
      The House bill extends the Export Enhancement Act through 
2011 at the current funding level. (Section 304)
      The Senate amendment extends the Export Enhancement Act 
through 2006 at the current funding level and expands 
definition of unfair trade practices to include (1) pricing 
practices by an exporting state trading enterprise that ``are 
not consistent with sound commercial practices conducted in the 
ordinary course of trade,'' or (2) changing U.S. ``export terms 
of trade through a deliberate change in the dollar exchange 
rate of a competing exporter.'' (Section 323)
      The Conference substitute adopts the House provision with 
respect to reauthorization of the program through 2007. The 
Conference substitute adopts the Senate provision on unfair 
trade practices, with the following changes: amends paragraph 
(2) to clarify the type of state trading enterprise covered by 
this definition, drops the exchange rate reference, and inserts 
the following list of activities: subsidies that decrease 
market opportunities for United States exports or unfairly 
distort agricultural markets to the detriment of the United 
States; unjustified trade restrictions or commercial 
requirements, such as labeling, that affect new technologies, 
including biotechnology; unjustified sanitary or phytosanitary 
restrictions, including those not based on scientific 
principles in contravention of the Uruguay Round Agreements; 
other unjustified technical barriers to trade; rules that 
unfairly restrict imports of United States agricultural 
products in the administration of tariff rate quotas; and the 
failure of a country to adhere to the provision of already 
existing trade agreements with the United States or by the 
circumvention by that country of its obligations under those 
agreements. (Section 3104)
(5) Foreign Market Development Cooperator Program
      The House bill includes the following: reauthorizes the 
Foreign Market Development Cooperator Program through 2011; 
authorizes such sums as may be necessary to carry out this 
title, and in addition to any sums appropriated, authorizes $37 
million from the Commodity Credit Corporation for each of 
fiscal years 2002 through 2011 to carry out the program; 
directs the Secretary to carry out the Foreign Market 
Development Cooperator Program with a significant emphasis on 
the importance of exporting value-added agricultural products 
to emerging markets; specifies that the Secretary shall report 
to the House Committees on Agriculture and International 
Relations, and the Committees on Agriculture, Nutrition and 
Forestry and Foreign Relations of the Senate, on the funding 
and success of the Foreign Market Development Cooperator 
Program. (Section 305)
      The Senate amendment contains the following: reauthorizes 
Foreign Market Development Cooperator Program through 2006; 
authorizes, from the Commodity Credit Corporation: $37.5 
million for 2002, $40 million for 2003, and $42.5 million for 
2004,2005 and 2006; establishes priority for new program 
participants and programs in emerging markets for amounts above $35 
million. (Section 324)
      The Conference substitute adopts the Senate provision on 
reauthorizing the program through 2007, and establishes that 
proposals submitted by new program participants and programs in 
emerging markets shall receive consideration equal to that 
given to current program participants for additional funds made 
available. The substitute authorizes, from the Commodity Credit 
Corporation, $34.5 million for each fiscal year between 2002 
and fiscal year 2007.
      The Conference substitute adopts the House provision with 
respect to a significant emphasis on value-added products, with 
clarification that the emphasis required is a ``continued 
significant emphasis'', to recognize that USDA already places a 
significant emphasis on value-added, accounting for about one-
third of the program. It also requires a report on funding and 
success of the Foreign Market Development Cooperator Program to 
the relevant Congressional Committees. (Section 3105)
(6) Export Credit Guarantee Program
      The House bill reauthorizes the Export Credit Guarantee 
Program through 2011, and continues for fiscal years 2002 
through 2011 the current requirement that not less than 35 
percent of the export credit guarantees issued be used to 
promote the export of processed or high-value agricultural 
products. (Section 306)
      The Senate amendment reauthorizes Export Credit Guarantee 
Program through 2006, continues for fiscal years 2002 through 
2006 the current requirement that not less than 35 percent of 
the export credit guarantees issued be used to promote the 
export of processed or high-value agricultural products; 
extends terms of repayment for the supplier credit guarantee 
program from 180 days to 12 months, and requires Secretary to 
provide a report, one year after enactment of the law, on the 
status of multilateral export credit negotiations at the WTO 
and OECD. (Section 321)
      The Conference substitute adopts the Senate provision and 
reauthorizes the program through 2007. It changes the 
subsection that requires the Secretary to provide a report on 
multilateral export credit negotiations to requiring the 
Secretary and the United States Trade Representative to 
regularly consult with the relevant House and Senate Committees 
on that issue. The substitute also changes the new terms of 
repayment for the supplier credit guarantee program from 12 
months to 360 days, if an authorization of appropriations to 
fund loan terms greater than current length of 180 days is 
provided. (Section 3102)
(7) Food for Peace Program and the International Food Relief 
        Partnership Act
      The House bill reauthorizes the Food for Peace Program 
and the International Food Relief Partnership Act through 2011, 
and adds conflict prevention as a program objective. (Section 
307)
      The Senate amendment reauthorizes the Food for Peace 
Program and the International Food Relief Partnership Act 
through 2006, and adds conflict prevention as a program 
objective. (Section 311)
      The Conference substitute adopts the House provision, 
reauthorizing the program through 2007. Program approvals 
should be based on the potential benefits of the program on 
food security and the choice of the appropriate commodity for 
the intended use. (Section 3011)
(8) Non-emergency Assistance
      The Senate amendment adds a new provision under ``(b) 
Nonemergency Assistance'' requiring the Administrator to foster 
program diversity by encouraging eligible organizations to 
propose and implement plans that address 1 or more aspects of 
Food for Peace and incorporate a variety of program objectives 
to assist development in foreign countries. (Section 302)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
with an amendment clarifying that plans shall address program 
objectives specified in Section 201 of the Agricultural Trade, 
Development and Assistance Act of 1954. (Section 3002)
(9) Funding
      The House bill provides that the funding for 
transportation, storage and handling of P.L. 480 commodities 
shall be not less than 5 percent and not more than 10 percent 
of the funds made available under title II in each fiscal year. 
(Section 307)
      The Senate amendment provides that the funding for 
transportation, storage and handling of P.L. 480 commodities 
shall be not less than 5 percent and not more than 10 percent 
of the funds made available under title II in each fiscal year. 
(Section 302)
      The Conference substitute adopts the Senate provision. 
(Section 3002)
(10) Private Voluntary Organization Authority (PVO)
      The House bill grants PVO's authority to submit multi-
country proposals. (Section 307)
      The Senate amendment grants PVO's authority to submit 
multi-country proposals. Also requires US-AID or USDA, as 
applicable, to establish a process enabling PVO's and 
cooperatives that can demonstrate their capacity to carry out 
the programs, to qualify as ``certified institutional 
partners,'' which would entitle them to use streamlined 
application procedures, including expedited review, to receive 
commodities. (Section 302)
      The Conference substitute adopts the House provision with 
the following changes: the inclusion of all eligible 
organizations rather than just PVO's and to encourage multi-
year agreements as well.
      The Conference substitute also adopts the Senate 
provision with the following changes: within one year after 
enactment of this Act, requires the Administrator to establish 
streamlined guidelines and application procedures for programs 
under Title II, to be effective for fiscal year 2004, to the 
maximum extent practicable, for resource allocation for 
existing projects and for new project proposals. It also 
requires US-AID to undertake stakeholder consultation using 
statutory procedures, as well as consultation with the relevant 
Congressional Committees, within six months of enactment, on 
the Agency's progress in achieving streamlining. A report is to 
be submitted within 270 days on progress achieved in 
modernizing US-AID's information management, procurement, and 
financial management systems to accommodate Title II needs. 
(Section 3002)
(11) Use of U.S. Dollars
      The House bill allows PVO's to use U.S. dollars when 
monetizing commodities in foreign countries. (Section 307)
      The Senate amendment allows the use of U.S. dollars when 
monetization is done in foreign countries. (Section 303)
      The Conference substitute adopts the Senate provision on 
permitting eligible organizations to monetize commodities in 
U.S. dollars in foreign countries. (Section 3003)
(12) Minimum Level of Commodities
      The House bill increases the minimum level of commodities 
available to 2,250,000 metric tons. (Section 307)
      The Senate amendment increases the minimum level of 
commodities available from 2,025,000 MT to: 2,100,000 metric 
tons for 2002; 2,200,000 metric tons for 2003; 2,300,000 metric 
tons for 2004; 2,400,000 metric tons for 2005; and 2,500,000 
metric tons for 2006. It also adds crude degummed soybean oil 
to list of value-added commodities under Title II. (Section 
304)
      The Conference substitute adopts the House provision, 
with a change to 2,500,000 metric tons per year as the minimum 
level of commodities beginning in fiscal year 2002.
      The Conference substitute adopts a new provision, 
changing the sub-minimum requirement for non-emergency programs 
to 1,875,000 tons annually (Section 3004)
      The Managers ask the Administrator to examine the 
commodities currently shipped under Title II non-emergency 
programs, and determine which ones qualify as value-added 
products to satisfy the sub-minimum requirement under Section 
204(b) of the Agricultural Trade Development and Assistance Act 
of 1954 (7 U.S.C. 1724).
(13) Food Aid Consultative Group
      The House bill reauthorizes the food aid consultative 
group through 2011. (Section 307)
      The Senate amendment reauthorizes the food aid 
consultative group through 2006. (Section 305)
      The Conference substitute adopts the House provision, 
reauthorizing the consultative group through 2007. (Section 
3005)
(14) Title II Spending
      The House bill eliminates the $1 billion cap on spending 
for Title II. (Section 307)
      The Senate amendment raises the cap on Title II spending 
from $1 billion to $2 billion annually. (Section 306)
      The Conference substitute adopts the House provision. 
(Section 3006)
(15) Duties of the Administrator of US-AID
      The House bill requires that the Administrator of US-AID 
make decisions on program proposals, received from PVO's, not 
later than 120 days after receipt. (Section 307)
      The Senate amendment requires that the Administrator of 
US-AID make decisions on program proposals, received from 
PVO's, not later than 120 days after receipt, requires the 
Administrator to treat proposed policy determinations the same 
as guidelines, and allows direct delivery of commodities to 
milling or processing facilities in recipient countries, with 
proceeds of transactions going to eligible organizations to 
carry out the approved project. (Section 307)
      The Conference substitute adopts the Senate provision, 
with the technical change that the 120 day period begins after 
submission of the proposal to the Administrator rather than 
receipt of the proposal by the Administrator, and that to the 
maximum extent practicable, the Administrator is encouraged to 
make decisions on program proposals within that period. The 
annual policy guidance letter issued by the Administrator shall 
be subject to notice and comment requirements. The conference 
substitute omits the Senate provision on direct delivery of 
commodities. (Section 3007)
      The Managers note that at present, milling or processing 
facilities located in or near countries receiving food aid are 
occasionally unable to process commodities or arrange for the 
monetization of commodities because the non-governmental 
organizations coordinating or arranging the food aid delivery 
do not interact on a timely basis with the milling or 
processing facilities. This often leads to delay and 
inefficiencies in the food aid program.
      The streamlining of procedures and regulatory 
requirements, and acceleration of the approval and review of 
projects involving food aid programs administered by USDA and 
US-AID are a priority in this legislation. It is equally 
important that participating non-governmental organizations 
also expedite the delivery of their projects by consulting with 
milling or processing facilities prior to filing project 
applications with USDA or US-AID. It is necessary for USDA, US-
AID, and participating non-governmental organizations to act in 
concert to streamline and expedite procedures and activities to 
achieve a more effective and timely food aid delivery process.
(16) Funding for Stockpiling and Rapid Transportation, Delivery, and 
        Distribution of Shelf-Stable Prepackaged Foods
      The House bill reauthorizes at current funding level 
through 2011. (Section 307)
      The Senate amendment reauthorizes at current funding 
level through 2006. (Section 308)
      The Conference substitute adopts the House provision, 
reauthorizing the funding through 2007. (Section 3008)
(17) Sale Procedure
      The House bill adds a new subsection, (l), to section 403 
that provides that (b) and (h) shall apply to titles II and III 
of Food for Peace, section 416(b) of the Agricultural Act of 
1949, and section 1110 of the Food and Security Act of 1985. It 
also allows for monetization in the sales to generate proceeds 
under these designated sections and titles. (Section 307)
      The Senate amendment adds a new subsection, (l), to 
section 403 that provides that (b) shall apply to section 
416(b) of the Agricultural Act of 1949, and title VIII of the 
Agricultural Trade Act of 1978. It also allows for monetization 
in the sales to generate proceeds under these programs, and 
defines reasonable market price for purposes of monetization of 
commodities. (Section 310)
      The Conference substitute adopts the House provision with 
respect to sale procedure and adopts the Senate provision with 
respect to reasonable market price. (Section 3009)
      The reasonable market price provision requires that 
commodities be sold at a reasonable market price in the economy 
where the commodity is to be sold. This would generally bethe 
locally prevailing price for the same or a similar commodity.
      The Managers understand that, as with commercial sales, 
the actual sales price will be affected by product quality and 
delivery and payment terms. There are two primary purposes for 
this provision. The first is to ensure that commodities are 
sold at the prevailing local market price, rather than imposing 
an arbitrary formula approach.
      The Managers believe that a relatively inflexible formula 
approach is undesirable because in situations in which local 
prices are above the formula value, the formula does not 
maximize proceeds from sales of commodities. Conversely, in 
cases in which the formula produces a price significantly above 
locally prevailing prices, no sales are likely to result, to 
the possible detriment of program operations in recipient 
countries.
      The second reason for this provision is to bring 
consistency to the approaches currently used by US-AID and 
USDA. The Managers understand that although the two agencies 
generally operate in different countries at different times, 
some monetization programs may overlap. The Managers expect 
that, should this occur, the two agencies will consult to 
ensure that, to the extent possible, a uniform sales price is 
established. More generally, the Managers expect the two 
agencies to adopt methodologies for determining a reasonable 
market price that will tend to produce similar results in 
determining sales prices.
      Finally, the Managers note that this provision is 
intended to be consistent with the goal of maximizing proceeds 
from commodity sales. In deciding whether to approve a proposed 
sale of commodities at the local market price, the Managers 
expect that both agencies will take into account the prevailing 
U.S. and world market prices of a commodity, including U.S. 
acquisition costs, transportation costs, and any localized 
factors that might result in significant differences between 
prevailing local market prices and those prices that would be 
expected to prevail in a pure free market. In cases in which 
high-quality U.S. agricultural products are purchased for the 
program, it should be noted that the market in the recipient 
country may not be sufficiently sensitive to fully reflect 
quality premiums.
(18) Lamb Program
      The Senate amendment permits the Secretary to establish a 
program to provide live lamb on an emergency food relief basis 
to Afghanistan. (Section 309)
      The House bill contains no comparable provision.
      The Conference substitute incorporates the Senate 
provision into another section of this title dealing with a 
report on use of perishable commodities in food aid programs. 
(Sec. 3207)
(19) Reauthorize Limits on Funding for Prepositioning
      The House bill reauthorizes limits on funding for 
prepositioning through 2011. (Section 307)
      The Senate amendment reauthorizes limits on funding for 
prepositioning through 2006. (Section 311)
      The Conference substitute adopts the Senate provision, 
reauthorizing the funding through 2007. (Section 3010)
(20) Authority for Paying Transportation Costs Under Title II Non-
        Emergency Program
      The House bill adds a provision providing the authority 
for the US-AID Administrator to pay for transportation costs 
for nonemergency assistance under Title II, and only to least 
developed countries. (Section 307)
      The Senate bill contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 3012)
(21) Expiration Date
      The House bill extends the expiration date to December 
31, 2011. (Section 307)
      The Senate amendment extends the expiration date to 
December 31, 2006. (Section 312)
      The Conference substitute adopts the House provision, 
reauthorizing the program through fiscal year 2007. (Section 
3011)
(22) Reauthorize Farmer-to-Farmer Program
      The House bill reauthorizes the Farmer-to-Farmer Program 
through 2011 at the current funding level of 0.4 percent of the 
funds made available under titles I and II of P.L. 480 (Section 
307)
      The Senate amendment reauthorizes the Farmer-to-Farmer 
Program through 2006 and increases the share of P.L.-480 title 
I and title II funding which can be diverted for support of the 
program from 0.4 to 0.5 percent. (Section 314)
      The Conference substitute adopts the House provision, 
reauthorizing the program through 2007 and the Senate provision 
that increases funding for the program. (Section 3014)
(23) Micronutrient Fortification Pilot Program
      The Senate amendment re-authorizes the micronutrient 
fortification pilot program. (Section 313)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with technical corrections, also adding folic acid as a 
fortifying element that can be used under the program. The US-
AID sponsored ``Micronutrient Assessment Project'' study 
(report issued in 1999), found significant quality problems in 
fortified food aid commodities, including low micronutrient 
levels and the loss of highly labile vitamins. A US-AID-
sponsored ``Micronutrient Compliance Review of Fortified P.L. 
480 Commodities'' (report issued in 2001) found that while 
progress has been made, additional follow-up is needed to 
assure adequate micronutrient levels in the fortified 
commodities and to standardize procedures used to test and 
monitor for compliance. Additional concerns, such as lack of 
shelf-life information, bioavailibility and package durability 
have also been reported. The organization that conducted the 
1999 and 2001 assessments uses an effective approach of 
engaging technical experts from food industries to improve the 
quality and nutritional content of food products for developing 
countries. This provision calls on the Administrator, in 
consultation with the Secretary, to use the same mechanism to 
follow-up on the 2001 compliance review recommendations to 
improve and assure the quality of fortified food aid 
commodities. (Section 3013)
(24) Emerging Markets
      The House bill reauthorizes the Emerging Markets program 
through 2011, and increases the amount of assistance the 
Secretary shall provide for the AgriculturalFellowship Program 
from $10 million to $13 million. (Section 308)
      The Senate amendment reauthorizes the Emerging Markets 
program at current levels through 2006, but does not increase 
the amount of assistance. (Section 332)
      The Conference substitute adopts the Senate provision 
reauthorizing the program through 2007. (Section 3203)
(25) Bill Emerson Humanitarian Trust
      The House bill extends the Bill Emerson Humanitarian 
Trust Act through 2011. (Section 309)
      The Senate amendment extends the Bill Emerson 
Humanitarian Trust Act through 2006. (Section 331)
      The Conference substitute adopts the Senate provision, 
reauthorizing the program through 2007. (Section 3202)
(26) Technical Assistance for Specialty Crops
      The House bill establishes an export assistance program 
to address barriers to the export of United States specialty 
crops; provides direct assistance through public and private 
sector projects; and technical assistance to remove, resolve, 
and/or mitigate sanitary or phytosanitary and related barriers 
to trade. It also gives priority to time sensitive and market 
access projects based on the trade effect and trade impact and 
authorizes $3 million annually from the Commodity Credit 
Corporation. (Section 310)
      The Senate amendment directs USDA to assist U.S. 
exporters harmed by ``unwarranted and arbitrary'' barriers to 
trade due to marketing of biotechnology products, food safety, 
disease, or other SPS concerns and authorizes appropriations of 
$1 million annually through 2006. (Section 333)
      The Conference substitute adopts the House provision, 
with funding provided at $2 million per year from the Commodity 
Credit Corporation. (Section 3205)
(27) Farmers From Africa and Caribbean Basin Program
      The House bill authorizes $10 million for the President 
to establish and administer bilateral exchange programs whereby 
U.S. farmers and farming specialists provide technical advice 
and assistance to eligible farmers in Africa and the Caribbean 
Basin countries. (Section 311)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision, to 
be incorporated into the existing Farmer-to-Farmer program, 
authorizing appropriations, while allowing the Administrator to 
use up to five percent of those appropriated funds to cover 
administrative expenses in operating the program. (Section 
3014)
(28) George McGovern-Robert Dole International Food for Education and 
        Child Nutrition Program
      The House bill authorizes the President to direct the 
provision of U.S. agricultural commodities and financial and 
technical assistance for foreign preschool and school feeding 
programs to reduce hunger and improve literacy (particularly 
among girls) and nutrition programs for pregnant and nursing 
women and young children. It also authorizes the appropriation 
of such sums as may be necessary each year through FY2011. The 
President has the authority to designate the administering 
federal agency. For this program, eligible recipients are 
PVO's, cooperatives, governments and their agencies, and other 
organizations. Funds may be used to pay commodity 
transportation and storage costs, in-country activities that 
enhance the programs, and certain providers' administrative 
expenses. The House bill specifies a list of priorities for 
program funding and provides guidelines for application 
process, encourages multilateral involvement and private sector 
involvement, and requires assurances that local production and 
marketing in recipient countries are not disrupted. Annual 
reports to Congress are required. (Section 312)
      The Senate amendment requires the establishment of an 
International Food for Education and Nutrition Program, as a 
separately funded program within the new Food for Progress 
title, whereby USDA may provide commodities and technical and 
nutrition assistance for programs that improve food security 
and enhance educational opportunities for preschool and primary 
school children in the recipient countries. USDA is authorized 
to use not more than $150 million per year for four years to 
carry out this program. Eligible organizations are PVO's, 
cooperatives, nongovernmental organizations, or foreign 
countries, as determined by USDA. Permitted uses of funds, and 
various other requirements not specified here are the same as 
those that apply to Food for Progress activities generally. The 
Senate amendment includes a ``graduation requirement'' to 
provide for continuation of the program when funding 
terminates. It also encourages other donor and private sector 
involvement and requires an annual report to Congress. (Section 
325(c))
      The Conference substitute adopts the House bill 
provisions, with the following modifications: (1) accepts 
Senate provisions on graduation; (2) accept Senate language on 
availability of funds for internal shipping, transportation, 
and handling costs, and (3) provides $100 million in mandatory 
funding for fiscal year 2003 to continue existing pilot 
projects. The program is to be named the McGovern-Dole 
International Food for Education and Child Nutrition program. 
(Section 3107)
      The Managers expect that mandatory funds provided for 
fiscal year 2003 will be utilized to continue the operation of 
projects approved under the pilot program.
(29) Study on Fee for Services
      The House bill instructs the Secretary to report to 
Congress on the feasibility of instituting a program charging 
fees to cover the costs of services performed abroad on matters 
within the authority of the Department of Agriculture 
administered by the Foreign Agriculture Service. (Section 313)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
the clarification that the report would address the feasibility 
of a program that charged fees would be assessed only for 
services performed beyond those already provided by the Foreign 
Agricultural Service as part of an overall market development 
strategy for a particular country or region. (Section 3208)
(30) National Export Strategy Report
      The House bill directs the Secretary to prepare a long-
range comprehensive agricultural trade strategy and to report 
to the House Committees on Agriculture and International 
Relations, and the Senate Committee on Agriculture, Nutrition 
and Forestry,on the activities the Department of Agriculture 
has undertaken to implement the National Export Strategy Report. 
(Section 314)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision, 
changing the report to consultations with relevant 
Congressional Committees which will occur within six months of 
enactment, and every two years subsequently. (Section 3206)
(31) Exporter Assistance Initiative
      The Senate amendment authorizes development of a federal 
website to assist aspiring exporters to learn all they need to 
know about getting started. An authorization of appropriations 
is provided at the following levels: $1 million for each of 
2003 and 2004 and $500,000 for 2005 and 2006. (Section 326)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
amended to instruct the Secretary to maintain a website to 
assist exporters or potential exporters of U.S. agricultural 
products. No appropriations are authorized. (Section 3101)
      The Managers observe that knowledge about legal and 
regulatory requirements that apply to the export of an 
agricultural product is basic to any transaction. This applies 
to the country in which the exporter is located and the 
importing foreign country. Many countries already provide at 
least this much assistance to private exporters. In the United 
States, a small exporter that cannot afford to hire a trade 
consultant has been forced to navigate among numerous Federal 
laws and regulations that impact an export transaction. Today, 
the Internet provides a propitious vehicle for making such 
information accessible. The Foreign Agricultural Service at 
USDA has developed a website that provides information about 
USDA programs that may affect the exporter, recommendations on 
how to develop a marketing plan, and tariff and sanitary/phyto-
sanitary requirements of several countries. However the website 
does not alert the small exporter to U.S. laws such as, for 
example, the Corrupt Practices Act that may impact the export. 
Linkage to the website of the Treasury Department for detailed 
information about the Corrupt Practices Act is also necessary. 
A new Government website, `FirstGov', provides access to the 
Department of the Treasury's website, but the FAS website does 
not provide a link to FirstGov.
      Other U.S. agencies such as the Treasury Department's 
Office of Foreign Assets Control and the Commerce Department's 
Bureau of Export Administration enforce laws and regulations 
which bear on international business transactions involving 
agricultural products. Access to the websites of these agencies 
is also necessary to ensure that a potential or current 
exporter has access to a maximum amount of information relevant 
to the international commercial transaction. A small exporter 
needs more than just information about U.S. laws and 
regulations. Information about tariff and non-tariff 
regulations of importing countries is needed. Information about 
private companies in this country and abroad that may impact a 
marketing plan and decision to proceed with the export 
transaction is also necessary. A new website established by 
USDA, the Export Directory of U.S. Food Distribution Companies, 
provides a good start. The Secretary of Agriculture is directed 
to improve and maintain the FAS website consistent with the 
requirements of this provision and to coordinate the content of 
this website with the agency responsible for the FirstGov 
website. The Secretary is further directed to improve the FAS 
website so that an exporter may connect to links with oversees 
governmental, private sector, and non-profit sector websites 
that provide information on market opportunities, marketing 
requirements and restrictions, product preferences, foreign 
legal considerations, and other information that may assist the 
exporter with marketing an agricultural product in a foreign 
market.
(32) Biotechnology and Agriculture Trade Program
      The Senate amendment requires USDA to establish a program 
to assist exporters facing problems with biotech-based 
agricultural products. The Senate amendment requires $15 
million of CCC funding per year through 2006. (Section 333)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
establishing a stand-alone program, providing an authorization 
of appropriations. The provision is also revised to reflect a 
narrower purpose than the original Senate provision, focusing 
on technical assistance in addressing barriers to trade. 
(Section 3204)
(33) Agricultural Trade with Cuba
      The Senate amendment strikes restrictions on private 
financing of sales of food and medicine to Cuba that were 
established in the FY 2001 Agricultural Appropriations bill. 
(Section 335)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(34) Sense of Congress Regarding Agricultural Trade
      The Senate amendment establishes Congressional priorities 
and concerns for bilateral and multilateral agricultural trade 
negations. (Section 336)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
changing it to reflect the Sense of the Senate rather than the 
Congress. Similar priorities are also reflected in the Trade 
Promotion Authority bill (H.R. 3005) passed by the House in 
2001. (Section 3210)
(35) Report on Use of Perishable Commodities in Food Aid
      The Senate amendment requires the Secretary to report on 
transportation, storage, and funding deficiencies that limit 
the use of perishable and semi-perishable commodities in USDA 
international food aid programs. (Section 337)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
with technical changes and adds a requirement to examine the 
cost of shipping live lambs and other animals for use in U.S. 
food aid programs. (Section 3207)
(36) Sense of Senate Regarding Foreign Assistance Programs
      The Senate amendment notes past success of U.S. foreign 
assistance in helping democratize developing nations and create 
U.S. commercial customers, and urges increased role of such 
programs in countries with impoverished and disadvantaged 
populations that are the breeding grounds for terrorism. 
(Section 338)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision, 
changing it to reflect the Sense of the Congress rather than 
the Senate. (Section 3209)

                          Title IV--Nutrition

(1) Short Title
      The Senate Amendment names Title IV the Food Stamp 
Reauthorization Act of 2001. (Section 401)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4001)

                     subtitle a--food stamp program

(2) Simplified Definition of Income
      The House bill adds new types of income exclusions: at 
state option, education assistance that is required to be 
excluded under its Medicaid rules; ``state complementary 
assistance program payments'' that are excluded under Medicaid 
rules; and at state option, any income the state does not 
consider when determining eligibility for cash assistance under 
its Temporary Assistance for Needy Families (TANF) program or 
eligibility for medical assistance under its Medicaid program. 
Under the third exclusion authority, states are specifically 
not permitted to exclude earned income, various Social Security 
Act payments (e.g., Supplemental Security Income (SSI), Social 
Security disability and retirement benefits, and foster care 
and adoption assistance payments), or other types of income the 
Secretary judges essential to equitable eligibility 
determinations. (Section 401)
      The Senate amendment adds new income exclusions: 
education assistance, ``state complementary assistance program 
payments,'' same as the House bill with technical differences 
and at state option; any types of income the state does not 
consider when determining eligibility for or the amount of cash 
assistance under its TANF program or eligibility for medical 
assistance under its Medicaid program. Under the third 
exclusion authority, states are specifically not permitted to 
exclude wages or salaries, various Social Security Act 
payments, regular payments from a government source (such as 
unemployment benefits and general assistance), workers' 
compensation, child support payments (for the recipient), or 
other types of income the Secretary judges essential to 
equitable eligibility determinations. It is the intent of this 
provision to align, to the extent possible, with Medicaid and 
TANF rules and that the Secretary will only add additional 
types of income that are judged to be absolutely essential to 
make equitable determinations of eligibility in the food stamp 
program. (Section 412)
      The Conference substitute adopts the Senate provision. 
(Section 4102)
      The Managers intend that this provision will allow states 
to eliminate consideration of any types of income they do not 
consider when judging eligibility for temporary assistance to 
needy families (TANF) cash assistance or those required to be 
covered by Medicaid. It does not include items that are 
included in the definition of income but part of which are 
disregarded for the purposes of TANF and Medicaid by state 
agencies.
(3) Standard Deduction
      The House bill establishes multiple standard deductions 
equal to 9.7 percent of the federal poverty income guideline 
amounts used for food stamp income eligibility determinations 
in FY2002. The new standard deductions would remain fixed over 
time. It also requires that the new standard deductions not be 
less than the current amount for each jurisdiction or greater 
than 9.7 percent of the FY2002 poverty guideline amounts for a 
6-person household. In the case of the Virgin Islands, the new 
standard deductions would be similar to those for the 48 states 
and the District of Columbia. In the case of Guam, a special 
rule would maintain standard deduction levels at about twice 
the levels for the 48 states and the District of Columbia. 
(Section 402)
      The Senate amendment establishes multiple standard 
deductions equal to an increasing percentage of the inflation-
indexed federal poverty income guideline amounts used for food 
stamp income eligibility determinations: for FY2002-FY2004, the 
new standard deductions would equal 8 percent of each year's 
poverty guideline amounts; for FY2005-FY2007, the new standard 
deductions would equal 8.5 percent of each year's poverty 
guideline amounts; for FY2008-FY2010, the new standard 
deductions would equal 9 percent of each year's poverty 
guideline amounts; and for FY2011 and each following year, the 
new standard deductions would equal 10 percent of each year's 
poverty guideline amounts. The Senate amendment also requires 
that the new standard deductions not be less than the current 
amount for each jurisdiction or greater than the applicable 
percentage (noted above) of the poverty guideline amounts for a 
6-person household. In the case of the Virgin Islands, the new 
standard deductions would be similar to those for the 48 states 
and the District of Columbia. In the case of Guam, a special 
rule would maintain standard deduction levels at about twice 
the levels for the 48 states and the District of Columbia. 
(Section 171(c)(2), replacing Section 413)
      The Conference substitute adopts the House provision with 
an amendment that sets the standard deduction equal to 8.31 
percent of the inflation-indexed federal poverty income 
guideline used for food stamp income eligibility determinations 
and includes comparable provisions for the Virgin Islands and 
Guam. (Section 4103)
(4) Transitional Food Stamps for Families Moving From Welfare
      The House bill provides, at state option, for 6 months of 
transitional food stamp benefits for families no longer 
eligible to receive Temporary Assistance for Needy Families 
(TANF). Households could receive transitional benefits for up 
to 6 months after termination of cash assistance, regardless of 
whether their certification period expires during the 
transitional period. The transitional benefit amount would be 
equal to the monthly allotment households received in the month 
immediately prior to termination. Households receiving 
transitional benefits could apply for food stamps under regular 
rules at any time during the transitional period. In the final 
month of the transitional period, states could require a 
household to cooperate in a re-determination of eligibility in 
order to receive continued benefits.
      Transitional benefits would not be allowed for (1) 
households sanctioned under food stamp rules for intentional 
program violations, failure to cooperate, failure to meet work 
requirements, transferring assets to gain eligibility, failure 
to perform an action required under a federal, state, or local 
means-tested public assistance program, multiple receipt of 
food stamp benefits, or failure to fulfill child-support-
related requirements and (2) households sanctioned for failure 
to perform an action required by federal, state, or local law 
relating to TANF cash assistance. (Section 403)
      The Senate amendment permits states to provide 
transitional food stamp benefits to households who cease to 
receive TANF cash assistance. Under this option, 
householdscould receive transitional benefits for up to 6 months after 
termination of cash assistance, without regard to normal eligibility 
reviews or termination of an eligibility review period. During the 
transitional period, food stamp benefits generally would be frozen, 
without required reports of changed circumstances. Transitional 
benefits would be equal to the monthly allotment received in the month 
immediately prior to termination adjusted for (1) the change in 
household income because of termination of cash assistance and (2) any 
changes in circumstances that could increase household benefits (if the 
household elects to report them). In the final month of the 
transitional period, states could require a household to cooperate in a 
re-determination of eligibility in order to receive continued benefits.
      Transitional benefits would not be allowed for households 
(1) losing eligibility under food stamp rules for intentional 
program violations, failure to cooperate or meet work-
requirements, post-secondary students, transferring assets to 
gain eligibility, failure to perform an action required by a 
means-tested assistance program, receipt of multiple benefits, 
fleeing felons, or failure to fulfill child-support-related 
requirements, (2) sanctioned for failure to perform an action 
required by a federal, state, or local TANF law, or (3) in any 
state-designated category. (Section 429)
      The Conference substitute adopts the Senate provision 
with an amendment that allows households to receive 
transitional benefits for up to 5, instead of up to 6, months 
after termination of cash assistance, without regard to normal 
eligibility reviews or termination of an eligibility review 
period. In addition, transitional benefits are equal to the 
monthly allotment received in the month immediately prior to 
termination, adjusted for the change in household income 
because of termination of cash assistance but not adjusted for 
any other changes in circumstances that could increase 
household benefits and which the household may report. The 
Conference substitute retains the House bill language that 
enables households receiving transitional benefits to apply for 
food stamps under regular rules at any time during the 
transitional period. (Section 4115)
(5) Quality Control Systems
      The House bill reforms the food stamp quality control 
program to require the Secretary to use a 95 percent 
statistical probability (lower bound) in calculating state 
error rates. States with a total payment error rate (lower 
bound) between 6 percent and the national performance measure 
(plus 1 percentage point) receive no special treatment, but 
have to develop and implement corrective action plans to reduce 
errors. The bill provides that, in determining sanctions 
against states for high error rates, sanctions are delayed 
until the third consecutive year in which a state's error rate 
(lower bound) exceeds the national average error rate by more 
than 1 percentage point.
      Sanctions are figured as follows: First, the state's 
potential total liability amount is calculated. This is the 
difference between its total payment error rate (point 
estimate) and the national performance measure plus one 
percentage point, multiplied by the dollar value of benefits 
issued in the state for the year. Then, the state's actual 
penalty/sanction is calculated. This assessment is ``scaled'' 
according to how far above 10 percent the state's total payment 
error rate (point estimate) is.
      The House bill also requires the Secretary to measure 
states' performance with respect to (1) compliance with 
deadlines for prompt determinations of eligibility and issuance 
of benefits and (2) the percentage of negative eligibility 
decisions that are made correctly for each of fiscal years 2002 
through 2007. It provides for ``excellence bonus payments'' of 
$1 million each to (1) the 5 states with the highest combined 
performance in the 2 measures noted above and (2) the 5 states 
whose combined performance in the 2 measures noted above is 
most improved for each of fiscal years 2002-2007. (Section 404)
      The Senate amendment reforms the system that measures the 
degree to which states make erroneous eligibility and benefit 
decisions so that only states with serious, persistent problems 
would be sanctioned. For states with error rates below 6 
percent, enhanced federal matching is reduced for 2001 and then 
discontinued in subsequent years. States with a total payment 
error rate between 6 percent and the national average plus 1 
percentage point would receive no special treatment. All states 
are required to develop and implement corrective action plans 
to reduce payment errors. Each year, the Secretary is required 
to investigate the administration of the food stamp program in 
states with a total payment error rate above the national 
average plus one percentage point, unless sufficient 
information is already available to review the state's 
administration. A ``good cause'' exception is provided. If the 
investigation/review results in a determination that the state 
has been ``seriously negligent'' (under standards promulgated 
by the Secretary), the state has to pay a fine (``initial 
sanction'') that reflects the extent of negligence (again, 
under standards promulgated by the Secretary) not to exceed 5 
percent of the federal match for state administrative costs. 
States with a total payment error rate above the national 
average plus 1 percentage point are assessed fiscal penalties 
if they have been the subject of an investigation/review or 
sanctioned for high error rates in each of the 2 preceding 
years. This effectively sanctions states with a payment error 
rate above the national average plus 1 percentage point for 3 
consecutive years, in the third year as in the House bill. 
Sanctions are figured in the same way as is done in the House 
bill.
      Beginning with error rates calculated for FY2002, the 
Senate amendment establishes in law a requirement that the 
Secretary adjust states' total payment error rates to take into 
account any increases in errors because a state serves high 
percentages of households with earnings or households 
containing non-citizens. The adjustments are similar to those 
carried out under current policy for states subject to 
penalties/sanctions; however, they are somewhat more liberal in 
the measurement standard they use to identify states with 
``high'' proportions of error-prone households, likely 
qualifying more states for an adjustment. For error rates 
figured for FY2003 and later years, additional adjustments to 
states' total payment error rates are permitted, as the 
Secretary determines consistent with achieving the purposes of 
the Food Stamp Act. (Section 431)
      The Senate amendment beginning with FY2002, requires the 
Secretary to measure states' performance with respect to the 
proportion of households with children having (a) income below 
130 percent of the federal poverty income guidelines and (b) 
annual earnings of at least half the full-time minimum wage 
equivalent who receive food stamps. Beginning with FY2002, it 
also requires the Secretary to measure states' performance with 
respect to four additional measures established by the 
Secretary in consultation with the National Governors 
Association, the American Public Human Services Association, 
and the National Conference of State Legislatures. The 
additional four measures must be established not later than 180 
days after enactment, and at least 1 measure must relate to the 
provision of timely and appropriate services to food stamp 
applicants and recipients.
      In FY2003 and each following year, it requires the 
Secretary to make ``high performance bonus payments'' totaling 
$6 million for each of the 5 measures noted above. For each 
measure, payments (allocated by caseload size) are to be made 
to the 6 states with (1) the greatest improvement in 
performance, (2) the highest level of performance, or (3) a 
combination of greatest improvement and highest performance. 
Among the 6 states chosen for payments under each measure, 
payments are allocated according to caseload size.
      The Senate amendment prohibits bonus payments to states 
subject to a quality control system sanction for that fiscal 
year and it provides that the Secretary's determinations 
relating to whether and in what amount bonus payments are made 
are not subject to judicial review. (Section 433)
      The Conference substitute adopts the Senate provisions 
with amendments. In general, the new system eliminates features 
of current law under which approximately half the states must 
be assessed sanctions each year, reconfigures the formula for 
determining sanction amounts, delays any sanctions until a 
state has shown a persistently high error rate, explicitly 
recognizes a policy for new investment in improved 
administration by states with high error rates, places some 
limits on the Secretary's ability to excuse payment of 
sanctions, and replaces the current system for rewarding states 
with very low error rates with a requirement to pay bonuses to 
states that exhibit exemplary administrative performance. The 
major features of the Conference substitute are as follows.
      Threshold for potential sanctions: The threshold for 
sanctions is set at 105 percent of the national average, rather 
than the national average as under current law.
      Calculation of state error rates: A state is not 
considered to be above the threshold unless there is a 95 
percent statistical certainty that the state's error rate is 
truly above the threshold.
      Sanction notification and method of payment: When the 
Secretary determines that a state must pay a sanction, the 
state agency, the Governor, and the state legislature must be 
notified. The Chief Executive Officer of the state subject to a 
sanction must remit the amount of the sanction or the state's 
letter of credit will be reduced.
      Corrective action plans: States with combined error rates 
of 6 percent or more are required to provide a corrective 
action plan to the Secretary.
      Time period for sanctions: States will not have a 
sanction amount calculated until the second consecutive year in 
which their error rates exceed the threshold. If, in the 
following year, they still exceed the threshold, they will be 
required to pay an amount the Secretary has determined to be at 
risk.
      State liability: States' potential liability amounts will 
equal dollar issuance multiplied by ten percent of the amount 
by which a state's error rate exceeds a six percent threshold. 
Under the Conference substitute, the Secretary has the 
authority to resolve the liability (calculated for the second 
consecutive year in which the state exceeds the threshold) in 
one of three ways: require the state to reinvest up to 50 
percent of the liability; hold up to 50 percent of the 
liability ``at risk,'' to be paid as a sanction by the state 
the following year only if the state's error rate continues to 
exceed the threshold; or to waive any amount that is not 
reinvested or held at risk. If a state fails to reduce its 
error rate to below the threshold for a third consecutive year, 
it must pay its ``at-risk'' amount to the federal government. 
The Secretary may settle amounts required to be reinvested.
      Waivers, adjustments and appeals: The Secretary retains 
the authority to waive any amount of a state's potential 
liability and to make adjustments to claims against states. 
States continue to have the full right to appeal liability 
amounts.
      Enhanced funding and bonus payments: Enhanced funding is 
eliminated for Fiscal Year 2003 and beyond and replaced by 
bonuses to states. The Secretary must issue regulations 
regarding the criteria for bonus awards for FY2005 and 
succeeding years. Performance criteria specified in legislation 
include those related to actions taken to correct errors; 
reduce rates of error; and improve eligibility determinations, 
including in the area of service delivery (such as timeliness 
and a low rate of improper denials). The Secretary is directed 
to solicit concrete ideas within these general areas from state 
agencies and organizations that represent state interests prior 
to issuing proposed regulations. For FY2003 and FY2004, the 
Secretary is provided the authority to issue guidance to the 
state regarding criteria for bonus awards.
      Effective dates: The new policy is effective for error 
rates measured in FY 2003 and sanctions and enhanced funding 
laws and regulations are unchanged for FY2002 and prior years. 
(Sections 4118 and 4120)
(6) Simplified Application and Eligibility Determination Systems
      The House bill requires the Secretary to spend up to $9.5 
million to provide grants to states to develop and implement 
programs that improve the food stamp application and 
eligibility determination process. (Section 405)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to establish a program of grants to states and 
other eligible entities to simplify food stamp application and 
eligibility determination systems and to improve access to the 
food stamp program. The Secretary would be required to fund 
grants totaling up to $5 million per year for projects: to 
coordinate application and eligibility procedures; establish 
methods for applying and determining eligibility that use 
electronic alternatives; otherwise improve program 
administration; or improve access to the Program. Grants could 
not be made for on-going costs and preference would be given to 
government/non-government partnerships.
      In addition to the types of projects described in the 
amendment, the Managers believe that other types of projects 
may be permissible under this section. These projects include 
but are not limited to:
      (a) establishing a single site at which individuals may 
apply for food stamp benefits, supplemental security income, 
Medicaid, states' children's healthinsurance program benefits, 
WIC benefits and benefits under other programs as determined by the 
Secretary;
      (b) developing systems to enable increased participation 
in the provision of benefits under the food stamp program 
through farmers' markets, roadside stands, and other community-
supported agriculture programs, including wireless electronic 
benefit transfer systems and other systems appropriate to open-
air settings where farmers and other vendors sell directly to 
consumers;
      (c) encouraging consumption of fruit and vegetables by 
developing a cost-effective system for providing discounts for 
purchases of fruit and vegetables made through use of 
electronic benefit transfer cards; or,
      (d) reducing barriers to participation by individuals, 
with emphasis on working families, eligible immigrants, elderly 
individuals, and individuals with disabilities.
      The Conference substitute repeals existing grant 
authority (Section 17(i)), dependent on appropriations, in the 
expectation that similar grants may be made under this new 
authority. (Section 4116)
(7) Authorization of Appropriations: Employment and Training Programs
      The House bill reauthorizes the existing food stamp 
employment and training program through FY2011. It sets the 
annual amount of unmatched federal funds at the current FY2002 
level of $165 million. It also preserves the current 
requirement to use at least 80 percent of unmatched federal 
funding for able-bodied adults without dependents (ABAWDs). 
(Section 406(a))
      The Senate amendment extends the requirement for 
unmatched federal funding for employment and training programs 
through FY2006; and sets the basic amount of unmatched federal 
funding at $90 million a year for FY2002-FY2006.
      In addition to the basic $90 million a year, the Senate 
amendment requires the Secretary to allocate up to $25 million 
a year for FY2002-FY2006 to reimburse states for services to 
able-bodied adults without dependents (ABAWDs). In order to be 
eligible for a share of this unmatched funding, a state must 
(1) exhaust its basic funding allocation and (2) make and 
comply with a commitment to offer an employment/training 
placement (``position'') to all applicant/recipient ABAWDs who 
are in the last month of their 6-month eligibility period under 
ABAWD work rules and not eligible for an exemption.
      The Senate amendment rescinds any unmatched federal 
funding provided through FY2001 unless obligated by a state 
before enactment. However, the new $90 million basic grant 
money would remain available until expended, while the new $25 
million ABAWD grant money would not. It also provides that the 
basic $90 million a year in unmatched federal funding be 
allocated among states according to a formula established and 
adjusted by the Secretary that takes into account their ABAWD 
populations; and eliminates the requirement to use at least 80 
percent of unmatched federal funding for ABAWDs.
      The Senate amendment eliminates the ``maintenance of 
effort'' requirement, whereby states must maintain expenditures 
on employment and training programs at a level not less than FY 
1996 spending in order to receive a portion of their allocation 
of unmatched federal funding; and eliminates the authority for 
the Secretary to set reimbursement levels for each qualifying 
employment and training slot that a state offers or fills. 
(Section 434)
      The Senate amendment eliminates the $25 per-month limit 
on the amount that states provide to participants in employment 
and training programs for transportation and other costs (other 
than dependent care costs) that are reasonably necessarily and 
directly related to their participation. (Section 169(c)(3)) It 
also eliminates the limit on federal matching payments for 
these costs. (Section 169(c)(4))
      The Conference substitute adopts the Senate provision 
with technical changes, and amendments to: provide unmatched 
funding through FY2007, reduce the allocation from ``up to $25 
million a year'' to ``up to $20 million a year'' to reimburse 
states for services provided only to ABAWDs, and eliminate the 
requirement that states must exhaust their basic funding 
allocation before being eligible for a share of this unmatched 
funding. (Section 4121)
(8) Authorization of Appropriations: Cost Allocation
      The House bill extends the required reduction in federal 
matching payments to states for administrative costs through 
FY2011. (Section 406(b))
      The Senate amendment extends the required reduction in 
federal matching payments to states for administrative costs 
through FY2006. (Section 435(a))
      The Conference substitute adopts the House provision with 
an amendment to reauthorize the required reduction in federal 
matching payments to states for administrative costs through 
FY2007. (Section 4122)
(9) Authorization of Appropriations: Cash Payment Pilot Projects
      The House bill extends the authority for cash payment 
projects through FY2011, if the state requests. (Section 
406(c))
      The Senate amendment extends authority for cash payment 
projects through FY2006, if the state requests. (Section 
435(b))
      The Conference substitute adopts the House provision with 
an amendment to extend the authority for cash payment projects 
through FY2007, if the state requests. (Section 4122)
(10) Authorization of Appropriations: Outreach Demonstration Projects
      The House bill extends the authority for outreach 
demonstration projects through FY2011. (Section 406(d))
      The Senate amendment extends the authority for outreach 
demonstration projects through FY2006. (Section 435(c))
      The Conference substitute repeals the authority for 
outreach demonstration projects and replaces it with new grant 
authority found in Section 4116. (Section 4122)
(11) Authorization of Appropriations
      The House bill extends the authorization of 
appropriations for the Food Stamp Act through FY2011. This 
includes the food stamp program as well as the Food 
Distribution Program on Indian Reservations. (Section 406(e))
      The Senate amendment extends the authorization of 
appropriations for the Food Stamp Act through FY2006. This 
includes the food stamp program as well as the Food 
Distribution Program on Indian Reservations. (Section 435(d))
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization of appropriations for 
the Food Stamp Act through FY2007. Thisincludes the food stamp 
program as well as the Food Distribution Program on Indian 
Reservations. (Section 4122)
(12) Puerto Rico and Territory of American Samoa
      The House bill extends Puerto Rico's nutrition assistance 
block grant through FY2011, retaining annual indexing for food-
price inflation using changes in the cost of the Thrifty Food 
Plan. It also authorizes the use of up to $6 million to pay for 
upgrading and modernizing electronic data processing systems 
and implementing systems to simplify eligibility determinations 
without regard to the regular 50 percent administrative cost 
matching requirement. (Section 406(f))
      The House bill extends American Samoa's nutrition 
assistance grant through FY2011 and increases the size of the 
annual grant to $5.75 million in FY2002 and $5.8 million a year 
for FYs 2003-2011. (Section 406(g))
      The Senate amendment consolidates funding for Puerto 
Rico's nutrition assistance block grant and American Samoa's 
nutrition assistance grant and establishes the consolidated 
``mandatory'' grant through FY2006. The base consolidated grant 
amount would be $1.356 billion (FY2002), which would then be 
adjusted for food-price inflation using changes in the cost of 
the Thrifty Food Plan starting with FY2003. Under the terms of 
the consolidated grant, Puerto Rico would receive 99.6 percent 
of the annual total. Of the amount paid to Puerto Rico in 
FY2002, up to $6 million could be used to pay for upgrading and 
modernizing electronic data processing systems, implementing 
systems to simplify eligibility determinations, and operating 
electronic benefit transfer systems without regard to the 
regular 50 percent administrative cost matching requirement. 
Not later than 270 days after enactment, the Senate amendment 
requires the GAO to develop and submit a report to Congress 
that: describes the similarities and differences (in program 
administration, rules, benefits, and requirements) between the 
regular Food Stamp program and Puerto Rico's nutrition 
assistance program; specifies the costs and savings associated 
with each similarity and difference; and states the 
recommendation of the GAO as to whether additional funding 
should be provided to carry out Puerto Rico's nutrition 
assistance program. Effective on the date of submission of the 
report, it authorizes additional appropriations for the new 
consolidated nutrition assistance block grant at a level of $50 
million a year.
      Under the terms of the consolidated grant, American Samoa 
would receive .4 percent of the annual total. (Section 439)
      The Conference substitute adopts the Senate provision 
with a number of amendments: authorizing the consolidated grant 
through FY2007; deleting reference to the report and 
authorization for appropriations; increasing the base 
consolidated grant amount by (approximately $10 million per 
year for Puerto Rico) to $1.401 billion in FY2003; allowing 
carryover of up to two-percent of funds; allowing the one-time 
authority to use $6 million for upgrading and modernizing 
electronic data processing systems, implementing systems to 
simplify eligibility determinations, and operating electronic 
benefit transfer systems without regard to the regular 50 
percent administrative cost matching requirement, in either 
FY2002, FY2003 or in both years. (Section 4124)
(13) Authorization of Appropriations: Assistance for Community Food 
        Projects
      The House bill extends the authority for community food 
project grants through FY2011 and increases the amount reserved 
to $7.5 million a year, beginning in FY2002. (Section 406)
      The Senate amendment extends the authority for community 
food project grants through FY2006; and maintains the amount 
reserved at $2.5 million a year. It also increases the federal 
share of projects' costs to 75 percent.
      The Senate amendment broadens the list of projects that 
must be given preference by: modifying the 4th preference 
category to projects that encourage long-term planning 
activities and multi-system, interagency approaches with multi-
stakeholder collaborations, that build the long-term capacity 
of communities to address their food and agriculture problems 
(such as food policy councils and food planning associations); 
and adding a 5th preference category of projects that meet 
(through grants not exceeding $25,000 each) specific 
neighborhood, local, or state food and agriculture needs 
including: needs for infrastructure improvement and development 
(purchase of equipment for production, handling, or marketing 
of locally produced food), needs for planning for long-term 
solutions, or needs for the creation of innovative marketing 
activities that mutually benefit farmers and low-income 
consumers. (Section 440)
      The Conference substitute adopts the House provision with 
amendments to increase funding for the projects to $5 million 
per year, extend the authority for community food project 
grants through FY2007, and add additional language describing 
other purposes for community food projects which must meet 
specific state, local, or neighborhood food and agriculture 
needs, including needs for infrastructure improvement and 
development; planning for long-term solutions; or, the creation 
of innovative marketing activities that mutually benefit 
agricultural producers and low-income consumers.
      The Conference substitute includes language from former 
Senate section 443 (``Innovative Programs for Addressing Common 
Community Problems'') as a new subsection (h) and provides 
funding for additional years such that not later than 90 days 
after enactment, and on October 1 of each of fiscal years 2003 
through 2007, the Secretary must allocate $200,000 out of the 
funds made available under this section, to implement 
subsection (h), and to remain available until expended. The 
Conference language permits the Secretary in selecting a non-
governmental organization (NGO) to carry out this provision to 
either contract with that NGO or provide a grant to that NGO 
indicating the responsibilities to be completed for the 
$200,000. (Section 4125)
      As was the case with the Senate amendment, the Managers 
intend that the NGO selected by the Secretary to carry out this 
subsection shall: be experienced in gathering relevant 
information about successful innovative programs; be 
experienced in working with other targeted entities (NGOs, 
federal agencies, states, and political subdivisions) and be 
experienced in providing information about such innovative 
programs; and be experienced in operating a national 
information clearinghouse. In addition, the Managers intend 
that the NGO selected under subsection (h) shall contribute in-
kind resources toward implementation of any contract or grant 
and should be prepared to coordinate with targeted entities and 
with the Community Food Security Coalition.
(14) Authorization of Appropriations: Availability of Commodities for 
        Emergency Food Assistance Programs
      The House bill extends the requirement to purchase 
commodities for The Emergency Food Assistance Program (TEFAP) 
through FY2011 and increases to $140 million a year through 
FY2011 the amount of commodities the Secretary must purchase 
for TEFAP. Beginning in FY2002, the House bill requires the 
Secretary to use $10 million a year of the TEFAP funds to pay 
for direct and indirect costs related to processing, storing, 
transporting, and distributing commodities, including gleaned 
commodities. (Section 406(i))
      The Senate amendment extends the requirement to purchase 
commodities for TEFAP through FY2006 and increases the amount 
reserved for TEFAP to $110 million a year for FY2002-2006. The 
provision setting aside $10 million a year is the same as the 
House bill, but through FY2006. (Section 441)
      The Conference substitute adopts the House funding level 
of $140 million a year with an amendment extending the 
purchasing requirement through FY2007, eliminating the $10 
million a year set-aside, and increasing the authorization of 
appropriations from $50 million to $60 million a year for 
direct and indirect costs related to processing, storing, 
transporting, and distributing commodities, including gleaned 
commodities. (Section 4126)

                   Subtitle B--Commodity Distribution

(15) Distribution of Surplus Commodities to Special Nutrition Projects
      The House bill extends this requirement through FY2011. 
(Section 441)
      The Senate amendment reauthorizes the commodity 
distribution program through FY2006. (Section 451(c))
      The Conference substitute adopts the Senate provision 
with an amendment to reauthorize the program through FY2007. 
(Section 4203)
(16) Commodity Supplemental Food Program
      The House bill reauthorizes the commodity supplemental 
food program through FY2011. (Section 442)
      The Senate amendment reauthorizes the commodity 
supplemental food program through FY2006. (Section 451(a))
      The Senate amendment also replaces the current rule 
limiting administrative payments to 20 percent of the Commodity 
Supplemental Food Program (CSFP) appropriation with a 
requirement for ``grants per caseload slot.'' The amendment 
requires the Secretary to provide each state CSFP agency (from 
discretionary funds for the current year or carried over) an 
administrative grant per assigned caseload slot, as follows: 
for FY2003, the grant would be $50 per assigned caseload slot 
adjusted for the percentage change in the state and local 
government price index of the Bureau of Economic Analysis 
between the 12-month period ending June 30, 2001, and the 12-
month period ending June 30, 2002. For later years, the per-
slot grant would be adjusted in the same manner. (Section 
451(b))
      The Conference substitute adopts the Senate provision 
with amendments reauthorizing the program through FY2007; 
requiring the Secretary to use the FY2001 fiscal year grant-
per-assigned slot as the baseline from which the administrative 
cost grant per assigned caseload slot is calculated, rather 
than using $50 as the base; requiring the Secretary to spend 
the amount necessary to permit all states that began to 
participate in the Commodity Supplemental Food Program in the 
FY2000 caseload cycle to participate at a caseload level not 
less than their originally assigned caseload through the FY2002 
caseload cycle, as determined by the Secretary. Funding from 
the Commodity Credit Corporation (CCC) is provided to permit 
the Secretary to alleviate an unusual situation that has arisen 
in two states that have recently implemented the CSFP. This is 
a one-time emergency use of CCC funds and is not intended as a 
precedent for drawing on the CCC to supplement appropriations 
for the CSFP. (Section 4201)
(17) Emergency Food Assistance
      The House bill reauthorizes TEFAP administrative cost 
appropriations through FY2011 and revises the definition of 
costs to be covered to include the costs to the states related 
to the processing, storage, transporting, and distributing 
commodities. (Section 443)
      The Senate amendment reauthorizes TEFAP administrative 
cost appropriations through FY2006 and revises the definition 
of costs to be covered to include the costs to the states 
related to the processing, storage, transporting, and 
distributing commodities. (Section 451(d))
      The Conference substitute adopts the House provision with 
an amendment to reauthorize TEFAP administrative costs through 
FY2007. (Section 4204)

                  Subtitle C--Miscellaneous Provisions

(18) Hunger Fellowship Program
      The House bill establishes an independent agency of the 
Legislative Branch of the U.S. government, the Congressional 
Hunger Fellows Program. (Section 461)
      The Senate amendment establishes a Congressional Hunger 
Fellowship. This formalizes an internship program already being 
carried out by the Congressional Hunger Center and funded under 
annual appropriations bills. (Section 462)
      The Conference substitute adopts the House provision but 
deletes a reference to ``a commitment to social change'' as a 
required attribute for fellows. In addition, it directs the 
program to make available to the General Accounting Office the 
salaries of the Executive Director and personnel, in addition 
to the other materials already included, to carry out audits. 
(Section 4404)
(19) General Effective Date
      The House bill designates that the amendments made by 
this title shall take effect on October 1, 2002, unless 
otherwise specified. (Section 462)
      The Senate amendment designates that the amendments made 
by this title shall take effect on September 1, 2002, except 
that a state agency may elect to implement any or all of the 
amendments on October 1, 2002. (Section 464)
      The Conference substitute adopts the House provision. 
(Section 4405)
(20) Payment Limitations; Nutrition and Commodity Programs
      The Senate amendment increases the cap on the amount that 
may be claimed as an excess shelter expense deduction. For 
FY2003, the cap would be $390 a month for the48 states and the 
District of Columbia, $624 for Alaska, $526 for Hawaii, $458 for Guam, 
and $307 for the Virgin Islands. For FY2004-FY2009, amounts would be 
annually adjusted for changes in the Consumer Price Index for All Urban 
Consumers (CPI-U). Effective, FY2010, the cap is eliminated. (Section 
169(c)(2))
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(21) Encouragement of Payment of Child Support
      The Senate amendment permits states to (1) exclude 
completely from a household's counted income any legally 
obligated child support payments made by a household member 
(before calculating any deductions) or (2) continue to deduct 
them in the calculation of net income (as under current law). 
Regardless of a state's exclusion or deduction choice, the 
Senate amendment requires the Secretary to establish simplified 
procedures that allow a state option to determine the amount of 
child support paid. These must include procedures that permit 
states to rely on information from state child support 
enforcement agencies about payments made in prior months in 
lieu of obtaining current information from the household. The 
amendment also allows states to freeze the amount of any child 
support payment exclusion or deduction until the eligibility of 
the household is re-determined. (Section 411)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment and an amendment that deletes the 
state option to freeze the amount of child support payment 
exclusion or deduction. In addition, states are allowed to rely 
on information from child support enforcement agencies about 
payments made in prior months. (Section 4101)
(22) Simplified Determination of Housing Costs
      The Senate amendment mandates that states treat any 
required payment to a landlord as a housing or shelter cost 
when determining a household's shelter expenses for application 
of the excess shelter expense deduction. The payments are 
included without regard to the specific charges they cover. It 
also permits states to allow homeless households not receiving 
free shelter throughout the month to choose a standard shelter 
deduction from income (set by law at $143 a month) in lieu of 
any excess shelter expense deduction. States could deny this 
deduction to households with extremely low shelter costs. 
Homeless households would continue to be permitted to choose 
the regular excess shelter expense deduction that is based on 
actual shelter costs. (Section 414)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that strikes the section mandating that 
states treat any required payment to a landlord as a housing or 
shelter cost when determining a household's shelter expenses 
for application of the excess shelter expense deduction. It 
does, however, permit states to allow homeless households not 
receiving free shelter throughout the month to receive a 
standard deduction from income in lieu of any excess shelter 
expense deduction.
      The Conference substitute deletes the Senate provision 
that allows all required payments to landlords to count as 
eligible shelter costs for the purpose of calculating a food 
stamp excess shelter expense deduction. The Secretary should 
review current rules governing allowable shelter costs and 
their implementation and identify any means, within existing 
authority, to modify or communicate these rules in a manner 
that makes the determination of eligible shelter costs less 
complicated and error prone for food stamp participants and 
eligibility workers. (Section 4105)
(23) Simplified Utility Allowances
      The Senate amendment allows states choosing to make 
standard utility allowances (SUAs) mandatory to do so without 
regard to the current metered public housing and prorating 
rules. SUAs could be used in lieu of actual costs for all 
households incurring a heating or cooling expense and covered 
by a mandatory SUA without having to determine their utility 
metering status or prorated expenses. (Section 415)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4104)
(24) Simplified Procedure for Determination of Earned Income
      The Senate amendment allows states to elect to determine 
monthly-earned income by multiplying weekly income by 4 and 
biweekly income by 2. The amendment requires states making this 
election to adjust the earned income deduction (normally 20 
percent of earnings) downward for all households with earnings 
to the extent necessary to prevent the election from resulting 
in increased benefit costs consistent with standards 
promulgated by the Secretary. (Section 416)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(25) Simplified Determination of Deductions
      The Senate amendment establishes a state option to 
disregard most types of changes in household circumstances that 
affect the amount of those deductions until the next 
determination of eligibility. The amendment makes clear that 
states are not permitted to disregard (1) any reported change 
in residence or (2) under standards prescribed by the 
Secretary, any change in earned income. (Section 417)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
States will be able to disregard changes in: household size; 
the costs for dependent care; the amount of child support 
payments; medical expenses for elderly or disabled individuals; 
and shelter costs, unless they were the result of a move. 
(Section 4106)
(26) Simplified Definition of Resources
      The Senate amendment requires the Secretary to promulgate 
regulations under which a state may exclude any types of 
financial resources that it does not consider when determining 
eligibility for cash assistance under its TANF program, or 
medical assistance under its Medicaid program. This authority 
would not allow the exclusion of cash, vehicles (except to the 
extent states already are allowed to use their TANF standard to 
exclude vehicles), and readily available amounts in any account 
in a financial institution, or any similar type of resource the 
Secretary judges essential to equitable determinations of 
eligibility. The intent of this provision is to align with, to 
the extent possible,Medicaid and TANF rules. The Secretary will 
only count types of resources that are required by law or judged to be 
absolutely essential to equitable determinations of eligibility in the 
food stamp program. (Section 418)
      The Senate amendment also adds households with disabled 
members to those covered by the current $3,000 liquid asset 
limit applied to the elderly. (Section 171(c)(1))
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provisions. 
(Section 4107)
(27) Alternative Issuance Systems in Disasters
      The Senate amendment allows the Secretary to adjust 
issuance systems in disaster situations to take into account 
any conditions that make reliance on EBT systems impracticable, 
effectively permitting the issuance of cash or other forms of 
benefits. (Section 419)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4108)
      The Managers expect the authority provided in this 
section for alternative issuances in disaster programs will 
only be used in the most extreme circumstances, after the 
Secretary, working with the state, has exhausted all other 
means of benefit delivery and determined that electronic 
systems cannot be restored in a timely fashion and that the use 
of food coupons is impractical.
(28) State Option to Reduce Reporting Requirements
      The Senate amendment allows states to establish semi-
annual reporting requirements for any household, independent of 
the presence of earners or other characteristics. However, 
households required to report less often than once each 3 
months are required to report, in a manner prescribed by the 
Secretary, if their income exceeds the food stamp gross income 
eligibility limit (130 percent of the federal poverty income 
guidelines). (Section 420)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4109)
(29) Benefits for Adults Without Dependents
      The Senate amendment changes the ``3-months-out-of-36 
months'' rule to make able-bodied adults without dependents 
(ABAWDs) ineligible if, during the preceding 24 months they 
received benefits for 6 months while not meeting work-related 
requirements. ABAWDS ineligible under this new ``6-months-out-
of-24-months'' rule may become eligible during any period in 
which they work 20+ hours a week, participate in a work program 
20+ hours a week, or participate in a workfare program. In 
implementing the new ``6-months-out-of-24-months'' rule, states 
are required to disregard any period before enactment during 
which an individual received food stamps.
      The Senate amendment changes the definition of a 
qualifying work program to include job search or job search 
training programs if (1) they meet standards set by the 
Secretary to ensure that participants are continuously and 
actively seeking private-sector employment and (2) no position 
is available for the participant in another employment or 
training program. (Section 421)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(30) Preservation of Access to Electronic Benefits
      The Senate amendment requires that no benefits provided 
through EBT systems be taken ``off-line'' (or otherwise made 
inaccessible) because of inactivity until at least 180 days 
have elapsed since the recipient household last accessed the 
account. Where benefits are taken off-line or made 
inaccessible, it requires that the household be sent a notice 
that explains how to reactivate benefits and offers assistance 
if the household is having difficulty doing so. These 
requirements apply to states as they enter into EBT contracts. 
(Section 422)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(31) Cost Neutrality for Electronic Benefit Transfer Systems
      The Senate amendment eliminates the current requirement 
that EBT systems not cost the federal government more than the 
prior paper issuance systems. (Section 423)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4110)
      The Managers encourage the Department to continue its 
cost containment and competition efforts and its efforts to 
work with the states on this issue. Information about these 
efforts will be provided in the report detailed in Section 
4110.
(32) Alternative Procedures for Residents of Certain Groups' Facilities
      The Senate amendment provides a state option that allows 
the provision of an inflation-adjusted standardized monthly 
benefit to residents of group homes, rather than going through 
the individualized benefit calculation for each resident. The 
group homes that are eligible include those for the disabled; 
shelters for battered women/children or the homeless, and 
substance abuse treatment centers. Recipients' benefits are 
calculated according to standardized procedures established by 
the Secretary and take into account benefits typically received 
by recipients in these group living facilities.
      States shall issue benefits to the facility (as an 
authorized representative), and the Secretary shall establish 
procedures to ensure that the facility does not receive a 
greater proportion of a recipient's monthly benefits than the 
proportion of the month during which the recipient lived there.
      Group living facilities are required to (1) notify the 
state when a recipient departs and (2) notify the recipient 
that the recipient is eligible for continued benefits and 
should contact the state about continuation of benefits.
      On receiving notification that a recipient has departed a 
group living facility, the state is required to issue the 
recipient a benefit allotment covering the remainder of the 
month (calculated in a manner prescribed by the Secretary) 
unless the recipient re-applies for food stamps or the state 
cannot locate the recipient. The state also is permitted to 
issue a benefit allotment for the month following departure 
calculated under the standardized procedures used to set the 
amount received while the departed recipient lived in the group 
living facility. Recipients who have left group facilities and 
re-apply for food stamps will have their benefits determined 
under regular food stamp rules. (Section 424)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to convert this provision to a pilot program 
that tests, at the request of a state agency or state agencies, 
the feasibility of the alternative procedures for determining 
allotments for residents of groups living in certain group 
facilities. If an insufficient number of pilot projects are 
proposed by state agencies or the Secretary concludes that this 
is not in the best interest of the food stamp program, the 
Secretary must inform the Senate Committee on Agriculture, 
Nutrition, and Forestry and the House Committee on Agriculture, 
and will not implement this provision nationwide. (Section 
4112)
(33) Redemption of Benefits Through Group Living Arrangements
      The Senate amendment allows the Secretary to authorize 
group living facilities to redeem food stamp benefits through 
direct use of EBT cards, if they are equipped with ``point-of-
sale'' devices. This provision allows authorized group living 
facilities to continue a practice they have been carrying out 
using waiver authority. (Section 425)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4113)
(34) Availability of Food Stamp Program Applications on the Internet
      The Senate amendment requires states to make food stamp 
applications available on their agencies' Internet websites in 
each language in which printed applications are available. 
(Section 426)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change the effective date for this 
provision to 18 months after enactment of this Act. Section 504 
of the Rehabilitation Act requires state agencies to make their 
web sites accessible to people with disabilities. The 
requirement includes ensuring that documents are in a format in 
which browsers for the visually impaired can read them, and 
that they can be converted to Braille documents; that graphic 
elements that convey meaning have text explanations available; 
and that English language text is also available in other 
languages, as appropriate. Many states have already adopted 
standards that comply with this requirement. States should, 
therefore, not incur additional costs to put their food stamp 
application forms on their web sites. (Section 4114)
(35) Simplified Determinations of Continuing Eligibility
      The Senate amendment provides for procedures for re-
determining recipient households' continuing eligibility that 
are consistent with re-determination procedures in other 
programs serving low-income families. It replaces assigned 
certification periods and the rules governing recertification 
with new ``eligibility review periods'' under which states 
periodically review the eligibility status of recipient 
households. Eligibility review periods are up to 12 months (or 
24 months if all adult household members are elderly or 
disabled), and states are required to have at least 1 contact 
with each household every 12 months. Eligibility review periods 
are not necessarily assigned to each household when their 
eligibility is established. Instead, states are mandated to 
periodically require each household to cooperate in a re-
determination of eligibility. Each re-determination is based on 
information supplied by the household and has to conform to 
standards established by the Secretary, and the interval 
between redeterminations cannot exceed 12 or 24 months. Where 
households are found ineligible (or eligible for a reduced 
amount) in their re-determination, they can continue to receive 
benefits until the conclusion of any fair hearing process. 
(Section 427)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(36) Clearinghouse for Successful Nutrition Education Efforts
      The Senate amendment requires the Secretary to (1) ask 
states for descriptions of successful nutrition education 
programs for the food stamp and other nutrition assistance 
programs, (2) make them available on the Agriculture 
Department's website, and (3) inform states of their 
availability on the website. (Section 428)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
In March 2002, the U.S. Department of Agriculture unveiled a 
Website that features a clearinghouse for nutrition education 
efforts described in the Senate amendment.
(37) Delivery to Retailers of Notices of Adverse Action
      The Senate amendment permits notices of adverse action 
against retailers to be delivered by any form of delivery that 
the Secretary determines will provide evidence of delivery. 
(Section 430)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4117)
(38) Improvement of Calculation of State Performance Measures
      The Senate amendment changes the deadline for completion 
of error-rate determinations and arbitration of state-federal 
differences to May 31st; it also changes the deadline for the 
determination of final error rates and claims against states to 
June 30th. (Section 432)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4119)
(39) Coordination of Program Information Efforts
      The Senate amendment permits states to use Temporary 
Assistance for Needy Families (TANF) funds to conduct food 
stamp information informational activities. (Section 436)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers understand that, to further the purposes of 
TANF, it is current policy to allow states to use TANF (and 
``maintenance of effort'') funds for food stamp informational 
activities directed to families, as long as they do not also 
charge these same costs to the food stamp program. The Managers 
expect the Secretary and the Secretary of Health and Human 
Services to issue guidance that clearly informs states of this 
policy.
(40) Expanded Grant Authority
      The Senate amendment extends the Secretary's waiver 
authority to cover any and all contracts and grants authorized 
under this section. (Section 437)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4123)
(41) Access and Outreach Pilot Programs
      The Senate amendment requires the Secretary to make 
grants to states and other entities to pay the federal share 
(75 percent) of the cost of projects to improve access to food 
stamp benefits or outreach to eligible individuals. It 
authorizes appropriations totaling $3 million for FY2003-FY2005 
for pilot programs and requires the Secretary to evaluate 
funded projects, but limits spending on evaluations to no more 
than 10 percent of funds made available. Criteria for selecting 
grantees are to be developed by the Secretary and include a 
record of serving low-income individuals, ability to reach 
hard-to-serve populations, innovative proposals in the 
application, and the development of public-private partnerships 
and community linkages. Preference is required for project 
partnerships between states and private/public entities (e.g., 
food banks, community-based organizations, public schools and 
health clinics, nonprofit health or welfare agencies). At least 
1 grantee has to be selected from each Food and Nutrition 
Service (FNS) region and additional rural or urban areas chosen 
by the Secretary. The Secretary is not required to select 
grantees where an insufficient number of applications have been 
received. (Section 438)
      The House bill contains no comparable provision.
      The Conference substitute combines Section 405 of the 
House Bill with Section 438 of the Senate amendment, as 
described in Section 4116: ``Grants for simple application and 
eligibility determination systems and improved access to 
benefits.''
(42) Use of Approved Food Safety Technology
      The Senate amendment bars the Secretary from prohibiting 
the use of ``any technology that has been approved by the 
Secretary or the Secretary of Health and Human Services'' in 
acquiring commodities for distribution through TEFAP, the Food 
Distribution Program on Indian Reservations (FDPIR), the 
Commodity Supplemental Food Program (CSFP), and programs under 
the Richard B. Russell National School Lunch Act and the Child 
Nutrition Act. This bar is effective on enactment. (Section 
442)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment that clarifies that the Secretary 
cannot prohibit the use of any technology to improve food 
safety that has been approved or is otherwise allowed by the 
Secretary or the Secretary of Health and Human Services. In 
implementing this provision, the Secretary is not expected to 
set aside established, well-founded procurement practices. 
(Section 4201)
      The Managers expect the Secretary to continue to make 
commodity purchases, taking into consideration the 
acceptability by recipients of products purchased and 
considering the relative costs of products available for 
purchase.
(43) Innovative Programs Addressing Common Community Problems
      The Senate amendment requires the Secretary to offer a 
contract to a non-governmental organization to coordinate with 
federal agencies, states, political subdivisions, and 
nongovernmental organizations (``targeted entities'') to 
develop, and recommend to the targeted entities, innovative 
programs for addressing ``common community problems'' including 
loss of farms, rural poverty, welfare dependency, hunger, the 
need for job training, juvenile crime prevention, and 
individuals' and communities' need for self-sufficiency. The 
organization must be selected competitively and must (1) be 
experienced in working with targeted entities and organizing 
workshops that demonstrate programs to targeted entities, (2) 
be experienced in identifying programs that effectively address 
``common community problems,'' (3) agree to contribute in-kind 
resources and provide targeted entities information free of 
charge, (4) be experienced in and capable of receiving 
information from (and communicating with) targeted entities 
throughout the U.S., and (5) be experienced in operating a 
national information clearinghouse that addresses ``common 
community problems.'' It also makes available to the Secretary 
mandatory funding totaling $400,000 to carry out the contract 
in two installments effective on enactment.
      This Senate provision was based in part on a project 
(called ``Reinvesting in America'') in which a non-profit group 
headquartered in New York, called World Hunger Year, gathered 
information about successful innovative local programs and then 
advised other NGOs, communities, or city, state or federal 
agencies (targeted entities) about these successful projects 
and about how to replicate them. This turned out to be a very 
efficient approach because other communities or agencies would 
be aware of the lessons learned by the community that 
originated the idea. World Hunger Year held ``replication 
workshops'' in which they advised these targeted entities about 
how to replicate those successful programs in other areas. 
World Hunger Year officials also provided information about 
some of these programs to the Community Food Security Coalition 
and to federal Departments. (Section 443)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
The Conference substitute includes a variation of this 
provision in House Section 440, as described in Section 4125.
(44) Report on Use of Electronic Benefit Transfer Systems
      The Senate amendment requires the Secretary to submit a 
report to Congress on (1) difficulties relating to use of EBT 
systems, (2) the extent of fraud and the types of fraud that 
exist, and (3) the efforts being made by the Secretary, 
retailers, EBT contractors, and states to address difficulties 
and fraud in EBT systems. The report is due no later than one 
year after enactment. (Section 444)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that changes the elements to be included in 
the report. The report will include: a description of the 
status of statewide EBT implementation in the food stamp 
program; an indication of the number of vendors that currently 
hold an EBT-related contract with the states; information on 
the number of states that are working with multiple vendors and 
a description of how responsibilities are divided among the 
various vendors and other organizations within a given state; 
an explanation of the reasons any state is not operational 
statewide by October 1, 2002, how these issues are being 
addressed, and the expected date for statewide EBT operations; 
a description of the issues faced by any states that have 
awarded a second EBT contract in the last two years and the 
steps taken to resolve them; a description of the issues faced 
by any states that will award a second EBT contract within the 
next two years and strategies they are considering to 
addressthese issues; initiatives being considered or taken by USDA, 
food retailers, EBT vendors, and client advocates to address any 
outstanding issues with respect to EBT systems; and an examination of 
areas of potential advances in electronic benefit delivery in the next 
5-10 years including but not limited to access to electronic benefits 
in farmers' markets, increased use of EBT transaction data to identify 
and prosecute fraud, and the fostering of increased EBT vendor 
competition to ensure cost-containment and optimal service. (Section 
4111)
(45) Vitamin and Mineral Supplements
      The Senate amendment adds dietary supplements that 
``provide exclusively 1 or more vitamins or minerals'' to the 
food items that may be purchased with food stamp benefits.
      Not later than April 1, 2003, the amendment requires the 
Secretary to contract with a scientific research organization 
to study and develop a report on technical issues, economic 
impacts, and health effects associated with allowing 
individuals to use food stamp benefits to purchase dietary 
vitamin-mineral supplements. The report is to be submitted to 
the Secretary no later than 2 years after the contract is 
entered into. The Senate amendment authorizes $3 million for 
the report. At a minimum, the report is to examine: the extent 
to which problems arise in the purchase of vitamin-mineral 
supplements with EBT cards; the extent of any difficulties in 
distinguishing vitamin-mineral supplements from herbal and 
botanical supplements (for which food stamp benefits may not be 
used); whether recipients spend more on vitamin-mineral 
supplements than non-recipients; the extent to which vitamin-
mineral supplements are substituted for other foods purchased 
with food stamp benefits; the proportion of the average food 
stamp allotment that is being used to purchase vitamin-mineral 
supplements; and the extent to which the quality of recipients' 
diets has changed as the result of allowing them to use food 
stamp benefits to purchase vitamin-mineral supplements. 
(Section 445)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(46) Partial Restoration of Benefits to Legal Immigrants
      The Senate amendment makes legal permanent residents 
under age 18 eligible for food stamps without regard to date of 
entry. It also exempts them from requirements that their 
sponsors' financial resources be deemed to them in determining 
food stamp eligibility. The Senate amendment also reduces the 
work history requirement for legal permanent residents' 
eligibility for food stamps to 16 quarters (4 years); removes 
the 7-year limit on eligibility for refuges and people seeking 
asylum, Cuban/Haitian entrants, certain aliens whose 
deportation is being withheld for humanitarian reasons, and 
Vietnam-born Americans fathered by U.S. citizens; and makes 
eligible legal permanent residents receiving government 
disability benefits regardless of date of entry so long as they 
meet any non citizen test applied by the program under which 
they receive benefits. (Section 452)
      Effective April 1, 2003, the Senate amendment makes 
eligible individuals who have continuously resided in the U.S. 
as ``qualified aliens'' for a period of 5 years or more 
beginning on the date on which the qualified alien entered the 
U.S. However, eligibility based on this new 5-year residence 
rule would not apply in the case of an alien who enters the 
country illegally and remains illegally for a period of one 
year or more (or has been an ``illegal alien'' for one year or 
more) unless the alien has continuously resided in the U.S. for 
a period of 5 years or more as of the ``date of enactment.'' 
(Section 170(b) and (c))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that eliminates the provision that restricts 
application of the new 5-year residence rule by denying it to 
aliens who enter the country illegally and remain illegally for 
a period of one year or more. The substitute also eliminates 
the provision that changes the work history requirement 
provision for legal permanent residents' from 40 quarters (in 
current law) to 16 quarters and the removal of the 7-year limit 
on the length of time that refugees and people seeking asylum 
may participate in the program. The Managers note that 
application of the new 5-year residence rule to refugees and 
asylees has the same effect as lifting the 7-year limit. 
(Section 4401)
(47) Commodities for School Lunch Programs
      The Senate amendment extends, until FY2004, provisions of 
current law that remove a mandate that any ``bonus'' 
commodities acquired for agricultural support purposes and 
donated to schools be counted toward a minimum requirement that 
12 percent of all school lunch assistance be in the form of 
commodities. The provision, therefore, mandates that only 
entitlement commodities count toward the 12 percent requirement 
through FY2003. (Section 453)
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provision. 
(Section 4301)
(48) Eligibility for Free and Reduced-Price School Meals: Military 
        Housing
      Effective on enactment and through FY2003, the Senate 
amendment requires that, in cases where military personnel live 
in ``privatized'' housing, their housing allowance not be 
counted as income in determining eligibility for free and 
reduced-price school meals. (Section 454)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4302)
(49) Eligibility for Assistance Under the Special Supplemental 
        Nutrition Program From Women, Infants, and Children
      Effective on enactment, the Senate amendment adds an 
option for states to exclude any housing allowance in cases in 
which military personnel live in ``privatized'' housing whether 
on base or off base. (Section 455)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4306)
(50) Report on Conversion of the WIC Program Into an Individual 
        Entitlement Program
      The Senate amendment requires, no later than December 31, 
2002, a report from the Secretary to the House Committee on 
Education and the Workforce and the Senate Committee on 
Agriculture, Nutrition, and Forestry that analyzes the 
conversion of the WIC program from a discretionary program into 
an individual entitlement program. Italso requires the 
Secretary to use funds made available to carry out the WIC program to 
fund the cost of the report. (Section 456)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate amendment.
      The Managers expect that, in preparation for child 
nutrition programs' reauthorization in FY2003, the Department 
will work with the Congressional Budget Office, the Office of 
Management and Budget and others to review the current WIC 
funding approach and alternative approaches to ensure an 
appropriate level of funding is available throughout the fiscal 
year. Also in preparation for this legislation, the Managers 
encourage the continued development, refinement, and testing of 
a national standard for WIC electronic benefit transfer (EBT) 
transactions. The Managers encourage the completion of work on 
a national standard for WIC EBT transactions prior to WIC 
reauthorization.
      In addition, the Managers understand that several states 
differentiate between 100 percent fruit juice and blended 100 
percent fruit juices in formulating an approved WIC list. The 
Managers are aware that a number of factors are considered by a 
state when selecting products for its approved WIC list. The 
Managers encourage states not to limit the availability of 
eligible food choices of WIC participants, and strongly urge 
states to evaluate objectively the merits of WIC-eligible food 
products. The Managers encourage the Department to provide 
guidance to the states, making them aware that blended 100 
percent fruit juices are permissible WIC products.
(51) Use of Commodities for Domestic Feeding Programs
      The Senate amendment provides that, notwithstanding any 
provision of law concerning commodity donations, any 
commodities acquired in the conduct of CCC operations and any 
``Section 32'' commodities may be used for any domestic feeding 
program involving acquisition and use of commodities. This 
authority applies to the extent that the commodities involved 
are in excess of quantities needed to carry out other 
obligations (including quantities otherwise reserved for a 
specific purpose). The domestic feeding programs covered by 
this authority include TEFAP, and programs authorized under the 
Richard B. Russell National School Lunch Act, the Child 
Nutrition Act, the Older Americans Act, or other laws the 
Secretary determines appropriate. (Section 457)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 4202)
      The Managers recognize that, under current law, the 
source of funding for the purchase of a particular commodity 
can limit the eligible recipient programs. As a result, 
distribution of commodities to the Department's School 
Nutrition Programs and other domestic programs has sometimes 
been difficult or prevented entirely. The limitation in the 
current law has stymied the two-fold purposes of commodity 
purchases--to support American agriculture and to provide 
nutritious foods through our domestic feeding programs. For 
purposes of this distribution authority, the Managers consider 
eligible excess commodities to be those that are purchased by 
the Commodity Credit Corporation or by the Secretary and remain 
available after all other authorized distributions, including 
distribution of specific quantities reserved for specific 
purposes, have been satisfied. This section allows more 
efficient, expeditious and direct distribution of excess 
commodities by expanding the Secretary's existing distribution 
authorities.
(52) Purchase of Locally Produced Foods
      The Senate amendment requires the Secretary to: encourage 
institutions participating in the School Lunch and Breakfast 
programs to purchase locally produced foods, to the maximum 
extent practicable and appropriate and in addition to other 
food purchases; advise these institutions of the locally 
produced food policy; and provide start-up grants to up to 200 
institutions to defray initial costs of equipment, materials, 
storage facilities, and similar costs incurred in carrying out 
the locally produced food policy. Also it authorizes 
appropriations of $400,000 a year for FY2002-FY2006. (Section 
458)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision.
      The intent of the Managers is to authorize the Secretary 
to award modest start-up grants for equipment, materials and 
similar costs associated with purchasing locally produced 
foods. It is not the intent to create a geographical preference 
for purchases of locally produced foods or purchases made with 
grant funds. All purchases are to be made competitively, 
consistent with federal procurement laws and regulations.
      The Conference substitute also includes an amendment that 
treats Puerto Rico in the same way as Hawaii is treated under 
the Buy America provision in the National School Lunch Act. It 
extends, to the extent practicable, an advantage of domestic 
grown or produced products over foreign products, to Puerto 
Rico for purposes of the School Lunch Program. The Buy America 
provision originally applied only to the 48 contiguous states 
with the later addition of Hawaii.
      The Managers want to make clear that school food 
authorities are still required to follow federal procurement 
rules calling for free and open competition and limit local 
product purchases to those that are practicable. Furthermore, 
while products from Puerto Rico will have an advantage over 
foreign products, this provision will not give an advantage to 
products produced or grown in one of the 48 contiguous states 
or Hawaii. (Section 4303)
(53) WIC Farmers' Market Nutrition Program
      The Senate amendment makes available an additional $15 
million in mandatory funding for the WIC farmers' market 
nutrition program no later than 30 days after enactment. 
(Section 460)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment providing that funding for the program is 
made available out of the Commodity Credit Corporation. This 
emergency allocation of CCC funding to the WIC farmers' market 
nutrition program is made to meet a one-time shortfall and is 
not intended to set a precedent for the use of CCC resources to 
support the WIC farmers' market nutrition program. (Section 
4307)
(54) Fruit and Vegetable Pilot Program
      The Senate amendment requires the Secretary to use 
``Section 32'' funds to conduct a pilot program to make free 
fruits and vegetables available to students in 25 schools in 
each of four states and students in schools on one Indian 
reservation, in the 2002-2003 school year. It also requires an 
evaluation of the pilot to determine whether students take 
advantage, whether interest increased or lessened over time, 
and what effect the pilot hason vending machine sales and sales 
of school meals. The Secretary is required to use $200,000 in ``Section 
32'' funds to carry out the evaluation. The evaluation is to be 
conducted through the Economic Research Service and submitted to the 
House Committee on Education and the Workforce and the Senate Committee 
on Agriculture, Nutrition, and Forestry not later than one year after 
implementation of the pilot program. (Section 461)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments: The pilot will begin in July 2002 and last one 
year; free fresh and dried fruits and fresh vegetables will be 
made available throughout the school day in one or more areas 
designated by the school; not later than one year after the 
implementation of the pilot program, the Secretary (acting 
through the Economic Research Service) shall report to the 
Committee on Education and the Workforce of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate, the results of the pilot program; 
$6 million of Section 32 funds shall be made available to carry 
out this pilot program. (Section 4305)
      The Managers agree that the intent of the pilot program 
is to determine the feasibility of carrying out such a program 
and its success as determined by the students' interest in 
participating in the program. The Managers encourage USDA to 
work with the schools to collect information on the types of 
schools that ultimately participate in the program, how schools 
choose to implement the program (including information on 
whether or not they incorporate nutrition education), and 
reasons for different implementation approaches. The Department 
is encouraged to find out from the schools about lessons 
learned and whether or not (and why) they are interested in 
continuing to participate in a similar program. To the extent 
practical, the Department is also asked to find out from 
teachers and/or students about students' attitudes and actual 
behavior over the course of time. The Managers recommend the 
selection of the following four states to participate in the 
pilot: Indiana, Iowa, Michigan, and Ohio. The Secretary will 
select the Indian reservation and the schools within each of 
the states that will participate in the pilot project.
(55) Nutrition Information and Awareness Pilot Program
      The Senate amendment authorizes the Secretary to 
establish--in not more than 15 states--a pilot program to 
increase domestic consumption of fresh fruits and vegetables 
and convey related health messages. It authorizes 
appropriations of $25 million a year for FY2002-FY2006. The 
federal share of project costs is 50 percent and funds are not 
available to any foreign for-profit corporation. Where 
practicable, the amendment requires the Secretary to: establish 
the program in states where production of fresh fruits and 
vegetables is a significant industry; and base the program on 
``strategic initiatives,'' including health promotion and 
education interventions, public service and paid marketing 
activities, and health promotion and social marketing 
campaigns. In selecting states, the Senate amendment requires 
the Secretary to take into account the state's experience in: 
carrying out similar activities and its ability to be 
innovative, conduct marketing campaigns to promote produce 
consumption, track increases in levels of produce consumption, 
and to optimize the availability of produce. (Section 463)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments: establishing in not more than 5 states, and 
for a period not to exceed 4 years for each participating 
state, a pilot program for the purpose of increasing the 
domestic consumption of fresh fruits and vegetables and 
conveying related health promotion messages; funds may not be 
used to disparage any other agricultural commodities and funds 
made available to states under this program may not be provided 
by a state to any foreign for-profit corporation; regarding the 
Secretary selecting states to participate in the program, the 
funds may be used to enhance existing state programs that are 
consistent with the purposes of this section, and the Secretary 
shall take into consideration states' experience in carrying 
out similar projects or activities, innovative approaches, and 
the ability of the state to promote and track increases in 
levels of produce consumption; participating states shall 
establish eligibility criteria under which the states may 
select public and private sector entities to carry out 
demonstration projects under this program; authorizing to be 
appropriated $10 million per fiscal year 2002 through 2007 to 
carry out this section. (Section 4403)

                            Title V--Credit

(1) Eligibility of Limited Liability Companies for Farm Ownership 
        Loans, Farm Operating Loans, and Emergency Loans
      The House bill includes limited liability companies as 
entities eligible for USDA farmer loan programs. (Sec. 501)
      The Senate amendment is identical to the House provision. 
(Sec. 521)
      The Conference substitute adopts the House provision and 
also includes trusts as eligible entities. (Sec. 532)
(2) Suspension of Effectiveness of Certain Provision
      The House bill provides that Sec. 319(b) of the 
Consolidated Farm and Rural Development Act (ConAct) limiting 
loan eligibility of borrowers with Farm Service Agency loan 
guarantees will have no effect through December 31, 2006. 
(Section 501)
      The Senate amendment amends Sec. 311(c) of the ConAct by 
adding new provisions--(1) to require the Secretary to waive 
the direct OL loan eligibility limitations to a farmer or 
rancher who is a member of an Indian tribe and whose operation 
is within an Indian reservation; and (2) to authorize the 
Secretary, on a case-by-case basis, to grant a waiver for a 
direct OL loan to a borrower one time for a period of two years 
if the borrower demonstrates, (a) he has a viable farm or ranch 
operation; (b) he has applied for commercial credit from two 
commercial lenders; (c) he was unable to obtain a commercial 
loan, including a loan guarantee; and (d) he has completed 
successfully or will complete within one year a borrower's 
training course required under Sec. 359 of the ConAct. (Section 
502(b))
      The Conference substitute adopts the House provision with 
regard to loan eligibility under Section 319(b) of the ConAct. 
(Sec. 512)
      The Conference substitute adopts the Senate provision 
with regard to the case by case determination on the one time 
waiver of two years. The substitute also permits the Secretary 
to waive limitations with respect to direct loans for farmers 
and ranchers who farm land subject to the jurisdiction of an 
Indian Tribe, or when applicable security interests are subject 
to such jurisdiction, if commercial credit is not generally 
available.(Sec. 511)
(3) Administration of Certified Lenders and Preferred Certified Lenders 
        Programs
      The House bill amends Sec. 331(b) of the ConAct to add a 
new provision authorizing the Secretary to administer the 
certified and preferred lender guaranteed loan programs through 
central offices in states or multi-state areas. (Sec. 503)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to make the authority discretionary. (Sec. 539)
(4) Simplified Loan Guarantee Application Available for Loans of 
        Greater Amounts
      The House bill amends Sec. 333A(g)(1) of the ConAct to 
increase the loan amount of the guaranteed program using a 
simplified short form to a maximum of $150,000. (Sec. 504)
      The Senate amendment amends Sec. 333A(g)(1) to increase 
the loan amount of the guaranteed program using a simplified 
short form to $100,000. (Sec. 526)
      The Conference substitute sets the loan amount at 
$125,000. (Sec. 537)
(5) Elimination of Requirement That Secretary Require County Committees 
        To Certify in Writing That Certain Loan Reviews Have Been 
        Conducted
      The House bill strikes Sec. 333(2) of the ConAct to 
remove the requirement that county committees must certify in 
writing annually that farmer program borrowers' business 
operations and credit histories have been reviewed for the 
borrowers to continue to be eligible for the loan program. 
(Sec. 505)
      The Senate amendment amends Sec. 333(2) by removing the 
requirement that local or area FSA committees must certify in 
writing that they have reviewed the credit histories, business 
operations and continued eligibility of all borrowers. The 
amendment retains language requiring that these annual reviews 
be conducted. (Sec 525)
      The Conference substitute adopts the Senate provision. 
(Sec. 536)
(6) Authority To Reduce Percentage of Loan Guaranteed if Borrower 
        Income Is Insufficient to Service Debt
      The House bill amends Sec. 339(c)(4)(A) and (d)(4)(A) of 
the ConAct dealing with the certified and preferred guaranteed 
lending program to authorize the Secretary to guarantee less 
than 80 percent of farm program loans even though the borrower 
does not show adequate income as described in current law. 
(Sec. 506)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(7) Timing of Loan Assessments
      The House bill strikes language in Sec. 360(a) of the 
ConAct to conform to a provision of the 1994 USDA 
Reauthorization Act that eliminated a requirement for the local 
county committee to approve a borrower's eligibility for farmer 
program loans. (Sec. 507)
      The Senate amendment amends Sec. 360(a) of the ConAct by 
striking the words, ``established pursuant to section 332''. 
(Sec 552(d))
      The Conference substitute adopts the House provision. 
(Sec. 546)
(8) Making and Servicing of Loans by Personnel of State, County or Area 
        Committees
      The House bill amends Subtitle D of the ConAct to add a 
new section 376 to require the Secretary to use Farm Service 
Agency state, area or county office employees to make and 
service farmer program loans if the personnel are trained to do 
so. This authority overrides the 90-day finality rule of FSA 
state, area or county office employees in Sec. 281(a)(1) of the 
USDA reorganization act. (Sec. 508)
      The Senate amendment amends Sec. 281(a)(1) of the 
Department of Agriculture Reorganization Act so that the 
finality rule does not apply to an agricultural credit decision 
made by a state, area or county FSA employee. (Sec. 551)
      The Conference substitute adopts the House provision. 
(Sec. 549)
      This section would enable the Secretary to employ 
personnel of a State, county or area committee to make and 
service USDA farm loans to the extent the personnel are trained 
to do so. The Managers believe that the Secretary should 
provide that these individuals have been adequately trained in 
these areas in a comparable manner as USDA Farm Service Agency 
employees with the same job responsibilities. Furthermore, the 
Secretary should ensure that the credit decisions of these 
individuals are subject to the same USDA loan review as any 
USDA employee making credit decisions, including internal 
control review, and disciplinary action to protect against the 
misuse of government funds.
(9) Eligibility of Employees of State, County, or Area Committees for 
        Loans and Loan Guarantees
      The House bill amends Subtitle D of the ConAct to add a 
new section 377 to make eligible Farm Service Agency local 
county office employees and USDA employees for farmer program 
loans so long as a local county office other than the 
applicant's home office approves the loan application. (Sec. 
509)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment providing that when applying for loans, local/
county employees apply to the State level and State employees 
apply to the federal level. (Sec. 550)
      This section would allow employees of a State, county or 
area committee to be eligible for USDA farm loans as long as 
these loans are approved at a higher level within the Farm 
Service Agency, either at the state office or national level. 
The Managers believe it is important for these employees, many 
of whom are farmers in their communities, to have access to the 
same farm loan programs as other producers. Nevertheless, the 
Managers believe that a higher level of review is appropriate 
to alleviate concerns regarding the eligibility of these 
individuals for the farm loan programs.
(10) Emergency Loans in Response to an Economic Emergency Resulting 
        From Sharply Increasing Energy Costs
      The House bill amends: (1) Sec. 321(a) of the ConAct to 
include among natural disasters economic disasters caused by 
high energy costs and crop and livestock quarantines for which 
farmers, ranchers or persons engaged in aquaculture may be 
eligible for disaster loans; (2) Sec. 323 of the ConAct to 
conform disasters or emergencies referred to in this section 
caused by plant or animal quarantines or sharply rising 
energycosts; (3) Sec. 329 of the ConAct by adding a new subsection (b) 
requiring the Secretary to make financial assistance available when 
energy costs for any three-month period is at least 50 percent greater 
than the average of the preceding five years and the applicant's income 
loss was incurred to prevent livestock mortality, degradation of 
perishable commodities or damage to field crops; and (4) Sec. 324(a) of 
the ConAct by adding two provisions to limit the amount of any loan 
made in response to a quarantine to $500,000 and any loan made in 
response to an energy emergency to $200,000. (Sec. 510)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision only 
on providing new authority to make emergency loans for plant or 
animal quarantines. (Sec. 521)
(11) Extension of Authority To Contract for Servicing of Farmer Program 
        Loans
      The House bill reauthorizes the program in Sec. 331(d) of 
the ConAct through 2011 to allow the Secretary to contract with 
regulated financial institutions to service farmer program 
loans under the ConAct and removes the ``temporary'' 
designation of this program. (Sec. 511)
      The Senate amendment amends Sec. 331 by striking 
subsections (d) [loan servicing pilot program for farm loans] 
and (e) [authority for the Secretary to use private debt 
collection agencies] and provides that any existing contracts 
are unaffected by this provision. (Sec. 523)
      The Conference substitute adopts the Senate provision. 
(Sec. 534)
(12) Authorization for Loans
      The House bill amends Sec. 346(b)(1) by reauthorizing the 
farmer loan programs at such sums as may be necessary. (Sec. 
512)
      The Senate amendment amends Sec. 346(b)(1) of the ConAct 
by providing not more than $3,796,000,000 for each of the 
fiscal years 2002 through 2006.
      Of the above amount in each fiscal year, $770,000,000 
shall be for direct loans of which--
      (1) $205,000,000 shall be for farm ownership loans; and
      (2) $565,000,000 shall be for operating loans.
      Of the remainder of the above amount in each fiscal year, 
$3,026,000,000 shall be for guaranteed loans of which--
      (1) $1,000,000,000 shall be for guaranteed farm ownership 
loans; and
      (2) $2,000,026,000 shall be for guaranteed operating 
loans. (Sec. 529(1)(A))
      The Conference substitute adopts the Senate provision 
with an amendment to provide the authorization from fiscal 
years 2002 to 2007. (Sec. 541)
(13) Reservation of Funds for Direct Operating Loans for Beginning 
        Farmers and Ranchers
      The House bill amends Sec. 346(b)(2)(A)(ii)(III) of the 
ConAct to reauthorize the reservation of beginning farmer and 
ranchers loan amounts at 35 percent of the funds through 2011. 
(Sec. 513)
      The Senate amendment amends Sec. 346(b)(2)(A)(ii) of the 
ConAct to provide that the Secretary shall reserve during 
fiscal years 2002 through 2006 35 percent of the funds made 
available for direct operating loans authorized to be 
appropriated under the ConAct. Further, in addition to funds 
made available under Agricultural Appropriations, the Secretary 
shall use $5,000,000 of funds of the CCC for fiscal year 2002 
to make loans described in section 346(b)(2)(A)(i). (Sec. 
529(1)(B))
      The Conference substitute adopts the House provision with 
an amendment to provide the authorization from fiscal years 
2002 to 2007. (Sec. 542)
(14) Extension of Interest Rate Reduction Program
      The House bill amends Sec. 351(a)(2) to reauthorize the 
interest rate buy-down program for farmer program loan 
guarantees through 2011. (Sec. 514)
      The Senate amendment amends Sec. 351 of the ConAct and 
replaces subsection (c) by providing an interest rate reduction 
of three percent for farmers and ranchers and four percent for 
beginning farmers and ranchers; authorizes $750,000,000 to 
carry out this program; and requires the Secretary to reserve 
until April of each fiscal year not less than 25 percent of the 
funds for the interest rate reduction program for beginning 
farmers and ranchers. (Sec. 530)
      The Conference substitute adopts the Senate provision 
with an amendment that retains current law on the interest 
rate, but reserves 15% of funds in a fiscal year for beginning 
farmers and ranchers until March 1st and provides for a 
permanent authorization of $750 million annually. (Sec. 543)
(15) Increase in Duration of Loans Under Down Payment Loan Program
      The House bill amends Sec. 310E (b)(3) of the beginning 
farmer and rancher down payment loan program by increasing the 
loan repayment period to 15 years and makes a conforming 
amendment to Sec. 310E (c)(3)(B). (Sec. 515)
      The Senate amendment amends Sec. 310E (b)(3) of the 
beginning farmer and rancher down payment loan program by 
increasing the repayment period to 20 years (Sec. 507(1)(B)). 
The Senate amendment also makes a conforming amendment to Sec. 
310E (c)(3)(B). (Sec. 507(2))
      The Conference substitute adopts the House provision. 
(Sec. 505)
(16) Horse Breeder Loans
      The House bill (1) defines a horse breeder as a person 
that derives more than 70 percent of the income of the person 
from the business of breeding, boarding, raising, training or 
selling horses during the shorter of (a) the five-year period 
ending on Jan. 1, 2001; or (b) the period the person has been 
engaged in the business; (2) directs the Secretary to make a 
loan to an eligible horse breeder for losses suffered from mare 
reproductive loss syndrome; (3) defines eligible breeders are 
those (a) who suffered at least a 30 percent loss of mare 
offspring as a result of mare reproductive loss syndrome during 
the periods of Jan. 1, 2000-Oct. 1, 2000, or Jan. 1, 2001-Oct. 
1, 2001. Losses could be from mares having failed to conceive, 
or miscarried, aborted or otherwise failed to produce a live 
healthy foal. Mares could be owned by a breeder or boarded on a 
farm owned, operated or leased by a breeder; (b) who, during 
the period Jan. 1, 2000, and ending on Sept. 30, 2002, were 
unable to meet financial obligations in connection with 
breeding, boarding, raising, training, or selling horses; (c) 
who were unable to obtain sufficient credit elsewhere (within 
the meaning of Sec. 321(a) of the ConAct; (4) directs the 
Secretary shall determine the amount of the loan based on the 
amount losses suffered by a breeder but a loan may not exceed 
$500,000; (5) directs the Secretary shall determine the 
duration of the loan but any loan may not exceed 15 years; (6) 
establishes the interest rate shall be at a rate prescribed by 
Sec. 324(b)(1) of the ConAct; (7) directs the Secretaryshall 
take a security interest in the loan; (8) establishes that a breeder 
must submit a loan application by Sept. 30, 2002; (9) directs the 
Secretary shall carry out this section using funds made available for 
the emergency loan program under subtitle C of the ConAct; and (10) 
establishes the authority for this loan program that expires on Sept. 
30, 2003. (Sec. 516)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(17) Evaluations of Direct and Guaranteed Loan Programs
      The House bill (1) requires the Secretary to conduct two 
studies of the direct and guaranteed farm ownership and 
operating loan programs. Each will include an examination of 
the number, average principal amount, and delinquency and 
default rates of loans during the period covered by the study. 
(2) The first study shall cover the one-year period that begins 
one year after enactment. The second study shall cover the one-
year period that begins three years after enactment. (3) At the 
end of the period covered by each study, the Secretary shall 
submit reports to Congress that contains an evaluation of the 
results of the study, including an analysis of the 
effectiveness of the loan programs in meeting the credit needs 
of agricultural producers. (Sec. 517)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 531)
(18) Loan Eligibility for Borrowers With Prior Debt Forgiveness
      The House bill amends Sec. 373(b)(1) of the ConAct to 
authorize the Secretary to make loans to borrowers who have not 
received debt forgiveness on loans or loan guarantees more than 
two times and to guarantee loans to borrowers who have not 
received debt forgiveness on loans or loan guarantees more than 
three times. (Sec. 519)
      The Senate amendment contains no comparable provisions.
      The Conference substitute deletes the House provision and 
provides for the Secretary to make an operating loan to a 
borrower who has received debt forgiveness on not more than one 
occasion that was directly and primarily resulting from a 
natural disaster as designated by the President. (Sec. 548)
(19) Allocation of Certain Funds for Socially Disadvantaged Farmers and 
        Ranchers
      The House bill amends Sec. 355(c)(2) of the ConAct to 
authorize the Secretary to provide unused funds allocated for 
socially disadvantaged farmers and ranchers within a state to 
other states where there are pending loan applications for 
(SDA) farmers and ranchers. Any remaining unused SDA funds 
within a state may be reallocated to other applicants in that 
state. (Sec. 520)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 544)
(20) Horses Considered To Be Livestock Under the Consolidated Farm and 
        Rural Development Act
      The House bill amends Sec. 343 of the ConAct to include 
horses within the meaning of livestock (Sec. 521)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(21) Temporary Suspension of Foreclosure on Certain Real Property Owned 
        by, and Recovery of Certain Payments From, Borrowers With 
        Shared Appreciation Arrangements
      The House bill directs the Secretary upon enactment of 
the bill and through Dec. 31, 2002, to suspend foreclosure on 
real property secured by a shared appreciation arrangement and 
not attempt to recover payments on the terms of any shared 
appreciation arrangement entered into between the Secretary and 
a borrower. (Sec. 522)
      The Senate amendment amends Sec. 353(e)(7) to provide 
alternatives to repaying the recapture amount of a shared 
appreciation arrangement by--(1) financing the recapture 
agreement; or (2) granting the Secretary an agricultural use 
protection and conservation easement on the secured property 
which is subject to the shared appreciation arrangement.
      An agricultural use protection and conservation easement 
shall--(1) be for all of the real security property subject to 
the shared appreciation arrangement in lieu of payment of the 
recapture amount; (2) be for a term of 25 years; (3) require 
that the property subject to the easement be used or conserved 
for agricultural or conservation purposes in accordance with 
sound farming and conservation practices; and (4) provide that 
the borrower who is financing the recapture amount may replace 
the financing with an agricultural use protection and 
conservation easement.
      The amendments shall apply to a shared appreciation 
arrangement that--(1) matures on or after the date of 
enactment; or (2) matured before the date of enactment if--(a) 
the recapture was reamortized under Sec. 353(e)(7) or (b)(1) 
the recapture amount had not been paid before the date of 
enactment because of circumstances beyond the control of the 
borrower; and (b)(2) the borrower acted in good faith in 
attempting to repay the recapture amount. (Sec. 531)
      The Conference substitute provides that the Secretary may 
modify a recapture loan on which a payment has become 
delinquent by using loan servicing tools if the default was 
beyond the control of the borrower and the borrower acted in 
good faith in attempting to repay the recapture loan. A 
reamortized loan may not exceed 25 years from the date of the 
original amortization agreement or provide for reducing the 
outstanding principal or unpaid interest due on the loan.
      The Managers expect the Secretary to review USDA appeal 
policies regarding appraisals used for shared appreciation 
agreements. The Managers expect the Secretary to establish 
policies that will result in the use of the most accurate 
appraisal of assets, including the use of independent 
appraisals provided on appeal by the borrower that are 
consistent with Federal appraisal standards.
(22) Authority To Make Business and Industry Guaranteed Loans for 
        Farmer-Owned Projects That Add Value to or Process Agricultural 
        Products
      The House bill amends Sec. 310B(a)(1) by expanding the 
Secretary's loan making authority in the business and industry 
loan program to larger than rural communities if a majority of 
the project involved is owned by individuals who reside and 
have farming operations in rural communities and the project 
adds value to or processes agricultural commodities. (Sec. 523)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(23) Direct Loans
      The Senate amendment amends Sec. 302(b)(1) to authorize 
the Secretary to make direct farm ownership loans to farmers 
and ranchers who have ``participated in the business operations 
of'' a farm or ranch for not less than three years. (Sec. 501)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 501)
      The Managers are aware of the limiting impact of the 
requirement for 3 years of operating experience on the 
eligibility of qualified beginning farmers and ranchers for 
farm ownership loans. The Managers intend for the Department to 
examine potential borrowers comprehensively in terms of their 
participation in the business operations of a farm or ranch, 
whether or not the potential borrower was the primary or senior 
operator. In making these determinations, the Department should 
ensure the borrower fully meets the training and experience 
requirement of section 302(a). The Department should also place 
considerable weight on whether the borrower has enrolled and 
will successfully complete the borrower training program.
(24) Financing of Bridge Loans
      The Senate amendment amends Sec. 303(a)(1) to add a new 
purpose authorizing the refinancing of short-term temporary 
bridge loans made by a commercial or cooperative lender to a 
beginning farmer or rancher for the acquisition of a farm or 
ranch if--the Secretary approved an application for a direct 
farm ownership loan for acquisition of the land and the funds 
for direct farm ownership loans were not available at the time 
the application was approved. (Sec. 502)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to refinance bridge loans made by commercial 
or cooperative lenders to borrowers who have a direct ownership 
loan approved and for which funds are available. (Sec. 502)
(25) Limitation on Amount of Farm Ownership Loans
      The Senate amendment amends Sec. 305(a) to limit the 
unpaid indebtedness of any borrower to the lesser of--(1) the 
value of the farm or other security; or (2) in the case of a 
direct loan to a beginning farmer or rancher $250,000 (adjusted 
for inflation) or $200,000 to other farmers or ranchers; or in 
the case of a guaranteed loan, $700,000 (adjusted for inflation 
and reduced by the amount of any unpaid indebtedness on 
guaranteed operating loans of the borrower). (Sec. 503)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(26) Joint Financing Arrangements
      The Senate amendment amends Sec. 307(a)(3)(D) to require 
the Secretary to charge a rate of interest to beginning farmers 
or ranchers that is 50 basis points less than the rate charged 
to other farmers and ranchers on a direct loan that is part of 
a joint financing arrangement. (Sec. 504)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(27) Guarantee Percentage for Beginning Farmers and Ranchers
      The Senate amendment amends Sec. 305(h)(6) to require the 
Secretary to guarantee 95 percent of a farm ownership loan to a 
beginning farmer or rancher participating in the down payment 
loan program or an operating loan to a beginning farmer or 
rancher who is participating in the down payment loan program 
during the period the borrower has an outstanding direct farm 
ownership loan. (Sec. 505)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(28) Guarantee of Loans Made Under State Beginning Farmer or Rancher 
        Programs
      The Senate amendment amends Sec. 309 by adding a new 
subsection to authorize the Secretary to guarantee loans made 
under a state beginning farmer or rancher program, including a 
loan financed by the net proceeds of a qualified small issue 
agricultural bond pursuant to the federal tax code. (Sec. 506)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 504)
(29) Down Payment Loan Program
      The Senate amendment amends Sec. 310E(b)(1) to increase 
the principal amount of the down payment loan to be equal to 40 
percent of the purchase price of the land acquisition. (Sec. 
507(1)(A))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 505)
      The Managers are aware that on an average per dollar 
basis, funds used for down payment loans serve over 3 times as 
many borrowers as regular farm ownership loans, and thus help 
to stretch limited loan funds and increase new farming and 
ranching opportunities. The Managers encourage the Secretary to 
widely publicize the availability of loans under this section 
as amended among potentially eligible recipients of the loans, 
retiring farmers and ranchers, and applicants for farm 
ownership loans under this subtitle and to coordinate the loan 
program established by this section with State programs that 
provide farm ownership or operating loans for beginning farmers 
and ranchers. The Managers strongly encourage the Secretary to 
establish performance goals for each state with a significant 
volume of real estate loans under this subtitle, with a goal of 
attaining down payment loan volumes consistent with the loan 
reservation percentage for down payment loans.
(30) Beginning Farmer and Rancher Contract Land Sales Program
      The Senate amendment adds a new Sec. 310F to the ConAct 
to require the Secretary to carry out a pilot program by Oct. 
1, 2002, in at least 10 geographically dispersed states. The 
Secretary is required to guarantee at least five loans per 
state in each of the fiscal years 2003 through 2006 made by a 
private seller of a farm or ranch to a qualified beginning 
farmer or rancher on a contract land sale basis, if the loan 
meets the applicable underwriting standards and a commercial 
lending institution agrees to serve as escrow agent. The 
Secretary shall start the program on making a determination 
that guarantees of contract land sales present a risk 
comparable to the risk presented in the case of guarantees to 
commercial lenders. (Sec. 508)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendmentrequiring a pilot program in not fewer than 5 
states to guarantee loans made by a private seller to a beginning 
farmer or rancher on a contract land sale basis commencing once the 
Secretary makes a determination and authorizing the program through 
2007 if it is carried out. (Sec. 506)
      The Managers are aware that contract land sales are 
prevalent in many states and encourage the Secretary to create 
a pilot program for guaranteeing the financing of such contract 
land sales. The Managers intend for the Secretary to approve 
any loan guarantee under this pilot program using its normal 
underwriting criteria. The Managers envision that land 
contracts between the seller and buyer will contain a side 
escrow agreement that outlines the duties and responsibilities 
of the escrow agent.
(31) Direct Loans
      The Senate amendment amends Sec. 311(c)(1)(A) to delete 
the requirement that a direct loan may not be made to a farmer 
or rancher who has operated a farm or ranch for five years or 
more. (Sec. 511)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 511)
(32) Amount of Guarantee of Loans for Tribal Farm Operations; Waiver of 
        Limitations for Tribal Operations and Other Operations
      The Senate amendment adds a new paragraph (7) to Sec. 
309(h) requiring the Secretary to guarantee 95 percent of 
operating loans made to a farmer or rancher who is a member of 
an Indian tribe whose farm or ranch is within an Indian 
reservation. (Sec. 512(a))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment requiring the Secretary to guarantee 95% of 
operating loans made to any farmer or rancher whose operation 
is subject to the jurisdiction of an Indian tribe. (Sec. 503)
(33) Debt Settlement
      The Senate amendment amends Sec. 331(b)(4) by deleting 
the provision that the Secretary may not release a borrower 
from a debt obligation on more favorable terms than that 
recommended by the county committee under Sec. 332. Note: Sec. 
332 was repealed by the 1994 USDA reorganization act. (Sec. 
522)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change the role of local or area Farm 
Service Agency committees in debt settlement to consultation 
only regarding a potential debt settlement agreement. (Sec. 
533)
(34) Interest Rate Options for Loans in Servicing
      The Senate amendment amends Sec. 331B to require the 
Secretary, when restructuring a farmer program loan, to charge 
the lowest of (1) the rate of the original loan; (2) the rate 
being charged when the borrower applies for restructuring the 
loan; or (3) the rate being charged when the borrower 
restructures the loan. (Sec. 524)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 535)
(35) Inventory Property
      The Senate amendment amends Sec. 335(c) dealing with the 
sale of inventory property by--(1) providing a greater number 
of days that the property must be held by the Secretary and 
offered for sale to beginning farmers and ranchers; (2) 
authorizing the Secretary to bundle or parcel real estate in 
such ways as to maximize the sale of such real estate to 
beginning farmers and ranchers; (3) authorizing the Secretary 
to sell farm real estate that has been acquired and leased 
before April 4, 1996, to beginning farmers and ranchers within 
60 days of the expiration of the lease arrangements; and (4) 
authorizing the Secretary, for purposes of farmland 
preservation and in consultation with the State 
Conservationist, to sell or grant easements, restrictions or 
development rights to states, political subdivisions within 
states or private nonprofit organizations of real estate held 
in inventory. (Sec. 527)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the period of time inventory 
property must be offered to beginning farmers and ranchers and 
to maximize the purchase of inventory property by combining or 
dividing parcels of property as appropriate. (Sec. 538)
(36) Definitions
      The Senate amendment amends Sec. 343(a)(11)(F) to replace 
the 25 percent limitation on ownership of the median ownership 
acreage within a county for purposes of determining a beginning 
farmer or rancher with a 30 percent acreage limitation. (Sec. 
528(a))
      The House bill contains no comparable provisions.
      The Conference substitute adopts the Senate provision. 
(Sec. 540)
(37) Waiver of Borrower Training Certification Requirement
      The Senate amendment amends Sec. 359(f) by authorizing 
the Secretary to waive the educational training requirements of 
Sec. 359 if the Secretary determines that the borrower 
demonstrates adequate knowledge in financial and farm 
management. The Secretary shall establish standards for this 
waiver that is implemented consistently in all counties. (Sec. 
532)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 545)
      The Managers are aware that waivers have not always been 
applied consistently and are concerned that in many areas 
waivers are exceptionally high, exceeding the 50% level. The 
Managers intend for the Secretary to issue clear and 
transparent criteria for waivers as quickly after enactment as 
possible and to re-assert the importance of borrower training 
to the success of borrowers and the effectiveness of the direct 
lending programs.
(38) Repeal of Burdensome Approval Requirements
      The Senate amendment amends Sec. 3.1(11)(B) to delete a 
provision that restricts without prior approval the loan 
participation activities of a bank for cooperatives in the 
lending territory of a Farm Credit Bank or association. The 
Senate amendment also amends Sec. 4.18A to make conforming 
changes to loan participation activities of banks for 
cooperatives and FCS institutions that operate under separate 
titles of the Farm CreditAct. (Sec. 541)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 551)
      The Managers understand that although this provision 
eliminates certain territorial concurrence requirements on Farm 
Credit System lenders so that lenders may participate in loan 
syndications or other multiple-lender arrangements for 
``similar entity'' loans originated in other Farm Credit System 
geographic territories without seeking the permission of the 
Farm Credit System lender in that territory. Current law 
requires System institutions to obtain permission from one 
another when participating in similar entity transactions in 
which a commercial bank originates the loan and then sells the 
loan to a group of lenders (including the System institution). 
The change eliminates these requirements only as they pertain 
to similar entity loans that the System does not originate. 
Territorial concurrence for loans other than similar entity 
loans are not affected by this change. The Managers are 
expressing no opinion with this provision on pending litigation 
regarding participation regulations issued by the Farm Credit 
Administration on April 25, 2000.
(39) Banks for Cooperatives
      The Senate amendment amends Sec. 3.7(b) of the Farm 
Credit Act to replace the words ``farm supplies'' with 
``agricultural supplies'' and to add a definition of an 
agricultural supply to include farm supply, agriculture-related 
processing equipment, agriculture-related machinery and other 
capital goods related to the storage or handling of 
agricultural commodities or products. (Sec. 542)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 552)
(40) Insurance Corporation Premiums
      The Senate amendment amends Sec. 5.55 of the Farm Credit 
Act to include government sponsored enterprise-guaranteed loans 
or credits and establishes the rate at which these loans or 
credits in accrual or non-accrual status are used to fund the 
Insurance Fund. (Sec. 543)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision and 
makes it applicable to calendar year 2002. (Sec. 553)
(41) Board of Directors of the Federal Agricultural Mortgage 
        Corporation
      The Senate amendment amends Sec. 8.2(b) to increase the 
board to 17 members. The two new members of the board shall be 
elected by Class A (commercial banks and other financial 
institutions) and Class B (Farm Credit System institutions) 
stockholders, and the two new members shall be the chief 
executive officer and another executive officer of Farmer Mac. 
The Senate amendment also amends Sec. 8.2(b)(9) to provide for 
the election of the chairperson from among the board members 
instead of by appointment by the President. (Sec. 544)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(42) Technical Amendments
      See Sec. 505 of the House bill
      The Senate amendment strikes references to Sec. 332 and 
corrects the reference to the ``Robert T. Stafford Disaster 
Relief and Emergency Assistance Act''. (Sec. 552)
      The Conference substitute adopts the Senate provisions. 
(Sec. 561)
(43) Effective Date
      The Senate amendment makes for the amendments made by 
this title, except for subsection (b) of this section and 
section 543(b), take effect on Oct. 1, 2002. (Sec. 553)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.

                      Title VI--Rural Development

(1) Funding for Rural Local Television Broadcast Signal Loan Guarantees
      The House bill amends the Launching Our Communities' 
Access to Local Television Act of 2000 to provide $200 million 
for loan guarantees for fiscal years 2002-2006 without fiscal 
year limitation. (Section 601)
      The Senate amendment contain no comparable provision
      The Conference substitute adopts the House provision with 
an amendment to provide $80 million for loan guarantees from 
the date of enactment through December 31, 2006, without fiscal 
year limitation. (Section 6404)
      It is the view of the Managers that funding dedicated to 
providing access to signals of local television stations should 
be made available by the Secretary for rural broadband 
deployment either upon expiration of the LOCAL TV Act on 
December 31, 2006, or when the RUS Administrator certifies that 
the goals of the program have already been met.
(2) Expanded Eligibility for Value-Added Agricultural Product Market 
        Development Grants
      The House bill amends the Agricultural Risk Protection 
Act of 2000 to allow $60 million ($50 million plus $10 million 
from Sec. 943) to be used for value-added grants for each of 
the fiscal years 2002-2011. This section is designed to 
increase the participation in the Value-Added Agricultural 
Products Market Development Grants by allowing broader 
standards of eligibility for this specific grant category only 
so that public bodies and trade association can compete along 
with non-profit institutions and universities for grants 
designed to develop value-added products for foreign markets. 
Extends the current program with increased mandatory spending. 
(Section 602)
      The Senate amendment amends ARPA, Section 231, to spend 
$75 million each year 2002-2006. Eligible independent producers 
and nonprofit entities may receive grants with a priority given 
to proposals requesting less than $200,000. Defines value added 
as undergoing a change in the physical state or produced in a 
manner that enhances its value to consumers. No less than 5% of 
the funding shall be used to assist producers of certified 
organic agricultural products. The Senate amendment provides 
7.5% of the $75 million per year be allocated to the 
established Agricultural Marketing Resource Center authorized 
in ARPA. (Section 606)
      The Conference substitute adopts the Senate provision 
with an amendment tomake technical corrections, expand 
eligibility, strike the priority designations and reserve, and modify 
funding for the established innovation center. This provision provides 
$40 million each fiscal year 2002 through 2007. Of this amount, five 
percent of the funds will be used for the Agricultural Marketing 
Resource Center. (Section 6401)
      The Managers intend that the Department, in administering 
the program, will seek to fund a broad diversity of projects 
that help increase agricultural producers' share of the food 
and agricultural system profit, including projects likely to 
increase the profitability and viability of small and medium-
sized farms and ranches. The Managers intend for the Department 
to consider a project's potential for creating self-employment 
opportunities in farming and ranching and the likelihood that 
the project will contribute to conserving and enhancing the 
quality of land, water and other natural resources.
      When making these grants, the Managers expect the 
Secretary to consider applications from a variety of 
agricultural sectors, such as renewable energy, wineries, high 
value products from major crops, agri-marketing ventures, and 
community supported agricultural projects. The inclusion of 
renewable energy includes farm or ranch based wind, solar, 
hydrogen, and other renewable energy.
      An exception from the normal rural area requirement is 
made for majority controlled producer based business ventures. 
It is the Managers intent that the Department award grants, to 
the maximum extent practicable, to projects located in rural 
areas. However, state rules and regulations and other 
circumstances may hinder some worthy value-added agricultural 
projects from meeting the Department's specific definition of 
``rural''. One such example is wineries in certain areas. In 
this instance, the Managers expect the Department to consider 
the importance and value of the project to area agriculture 
producers who will be the ultimate beneficiaries of the 
project, including the consistency of the project with the 
intent of the program.
(3) Agriculture Innovation Center Demonstration Program
      The House bill provides that the Secretary shall make 
grants to establish centers to provide producers with technical 
assistance, marketing, and development assistance for value-
added agricultural businesses. The Secretary shall use not less 
than $5 million for fiscal year 2002 and not less than $10 
million for fiscal years 2003 and 2004. This money is part of 
the $50 million being used for Section 602 activities. The 
Secretary shall use $300,000 of the funds made available each 
year to support research at a university on the effects of 
value-added projects on producers and commodity markets. The 
Secretary shall submit a report to the House and Senate 
Agriculture Committees on the effectiveness of this 
demonstration program. (Section 603)
      The Senate amendment provides 7.5% of the $75 million per 
year that is allocated to the established Agricultural 
Marketing Resource Center authorized in ARPA. (Section 606)
      The Conference substitute adopts the House provision with 
an amendment that the Secretary shall use not less than $3 
million for fiscal year 2002 and not less than $6 million for 
fiscal years 2003 and 2004. (Section 6402)
(4) Funding of Community Water Assistance Grant Program
      The House bill directs the Secretary to use $30 million 
for each of the fiscal years 2002-2011 to fund drinking water 
assistance grants. Extends current program and makes it 
mandatory spending. Strikes the word ``emergency'' in the 
subtitle.
      Increases funding by another $45 million per year, for a 
total of $75 million per year. (Section 604 and 943)
      The Senate amendment extends authority of the program 
through 2006 with no changes.
      See also section 603 of the Senate amendment, which fully 
funds existing backlog of applications for this grant program 
and other rural development loan and grant programs. (Section 
629)
      The Conference substitute adopts the House provision with 
an amendment to make rural areas and small communities eligible 
for grants in cases where a significant decline in quantity and 
quality of water is imminent, in addition to where there is an 
emergency. No less than 3 percent but no more than 5 percent of 
appropriated funds shall be used for these grants. (Section 
6009)
      The Managers are acutely aware of the ongoing needs of 
rural communities in maintaining water systems to provide 
adequate and safe drinking water for its residents. The 
Managers are particularly concerned about current drought 
conditions in many areas of the United States and its dire 
impact on a rural area's drinking water needs. Many areas are 
faced not only with the lack of potable water but with the lack 
of any water at all. For this reason, the provision allowing 
for potable water includes the delivery of bottled water where 
necessary.
      The Managers expect this provision to provide USDA, Rural 
Development with a flexible program with a certainty of funds 
to meet the emergency and imminent drinking water needs of 
rural areas. The Secretary should ensure that communities 
eligible for assistance under this program receive immediate 
attention.
(5) Loan Guarantees for the Financing of the Purchase of Renewable 
        Energy Systems
      The House bill provides that the Secretary may provide to 
persons or individuals a loan guarantee under Section 4 of the 
Rural Electrification Act to finance the purchase of a 
renewable energy system, including a wind energy system and 
anaerobic digesters for the purpose of energy generation. 
(Section 605)
      The Senate amendment provides that the Secretary, in 
addition to making loans and loan guarantees under other laws, 
shall make low interest rate loans (4%), loan guarantees, and 
grants to be used by producers for the purchase of renewable 
energy systems and energy efficiency improvements. Provides $33 
million per year for such purposes. (Only those producing 
agricultural products with a market value of less than 
$1,000,000 in the preceding year are eligible.) (Section 902)
      The Conference substitute deletes the House provision.
(6) Loans and Loan Guarantees for Renewable Energy Systems
      The House bill amends Section 310B of the ConAct by 
inserting ``and other renewable energy systems including wind 
energy systems and anaerobic digesters for the purpose of 
energy generation''. (Section 606)
      The Senate amendment provides that the Secretary, acting 
through the Rural Business Cooperative Service shall establish 
a program to make loans, loan guarantees (in addition to loans 
and loan guarantees under other laws) and competitively award 
grants to cooperatives or other rural business ventures to 
enable producers to own and market sources of renewable energy 
and increase the quantity of electricity available from 
renewable energy sources. Loans would be used to provide 
capital for start-up costsassociated with rural business 
ventures or the promotion of the aggregation of renewable electric 
energy sources. Grants would be used to develop business plans or 
perform feasibility studies. (much like existing Value-Added Grants). 
(Section 902)
      The Conference substitute adopts the House provision. 
(Section 6013)
(7) Reauthorization of Programs Through 2011
      The House amendment reauthorizes current programs through 
2011. Those programs are Rural Business Opportunity Grants 
(Sec. 607), Grants for Water Systems for Rural and Native 
Villages in Alaska (Sec. 608), Rural Cooperative Development 
Grants (Sec. 609), National Reserve Account for Rural 
Development Trust Fund (Sec. 610), and the Rural Venture 
Capital Demonstration Program (Sec. 611). (Sections 607, 608, 
609, 610, and 611)
      The Senate amendment reauthorizes Rural Business 
Opportunity Grants (same as House Sec. 607) except that 
authorization is increased from $7.5 million to $15 million a 
year, and authority runs through 2006.
      Reauthorizes Grants for Water Systems for Rural and 
Native Villages in Alaska (same as House Sec. 608) except that 
authority runs through 2006.
      Reauthorizes Rural Cooperative Development Grants (same 
as House Sec. 609) except that it prohibits the Secretary from 
requiring a non-federal share of more than 5% for 1994 
institutions, and authority runs through 2006.
      The Senate amendment contains no comparable provisions on 
the National Reserve Account for Rural Development Trust Fund 
or the Rural Venture Capital Demonstration Program. (Section 
622, 631, and 633)
      The Conference substitute adopts the Senate provision on 
Rural Business Opportunity Grants. (Section 6003)
      The Conference substitute adopts the House provision on 
Grants for Water Systems for Rural and Native Villages in 
Alaska. (Section 6011)
      The Conference substitute adopts the Senate provision on 
Rural Cooperative Development Grants. (Section 6015)
      The Conference substitute adopts the House provisions 
with an amendment to repeal the National Reserve Account for 
Rural Development Trust Fund and the Rural Venture Capital 
Demonstration Program. (Section 6026)
(8) Increase in Limit on Certain Loans for Rural Development
      The House bill increases the loan limit of the Business 
and Industry lending program authorized by Sec. 310B of the 
ConAct from $25 million to $100 million. (Section 612)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment that the Secretary may guarantee a loan that may 
not exceed $40 million for a project that is located in a rural 
area and provides for the value-added processing of 
agricultural commodities. The Secretary may not delegate the 
approval authority. (Section 6017)
(9) Pilot Program for Rural Development Strategic Plans and 
        Implementation
      The House bill provides that the Secretary shall select 
states to implement rural development strategic plans. This is 
a new program that provides mandatory spending of $2 million in 
grants for each fiscal year 2002-2011 (plus another \2/13\ or 
approximately $6.9 million from Sec. 943.).
      Provides mandatory spending of $13 million for grants to 
implement the plans for each fiscal year 2002-2011 (plus \11/
13\ or approximately $38 million from Sec. 943.). The Strategic 
Planning Initiative and Implementation provision authorizes a 
matching grant pilot program of $2 million (plus $6.9 million) 
per year to entities for regional, collaborative rural 
development strategic plans in those states that are chosen by 
the Secretary. Community-based and grassroots organizations' 
support and participation are critically important to 
successful planning. The matching grant requirement will help 
ensure that there is a commitment at the local level for the 
planning process. The provision allows the Secretary to require 
up to a 50% matching grant. This requirement is not intended to 
serve as a barrier to limited resource communities in fully 
participating in the program. The Secretary should require 
matching grants commensurate with a community's ability to pay, 
even to the point of only requiring a nominal amount in order 
to ensure the broadest participation.
      In developing a regional development plan it is 
imperative that local specialists representing many varied 
areas of expertise be included. The Secretary should give 
priority to grant applicants whose proposals include the 
broadest coalitions of regional and local organizations--both 
public and private. Entities eligible for matching grants 
include but are not limited to Councils of Government, Area 
Development Districts, Economic Development Districts, Local 
Development Districts, Planning and Development Districts, 
Regional Planning Commissions and Regional Councils of 
Government. (Section 613)
      The Senate amendment spends $5 million in 2002 for 
planning grants to conditionally approved program entities 
under Sec. 385C(d). Spends $2 million in 2002 for private 
technical assistance under Sec. 358C(h).
      Amends the ConAct to create a Program that will provide 
rural communities with technical and financial assistance to 
develop and implement community development strategies. The 
Secretary shall approve a program entity to receive grants if 
the entity meets certain criteria, and once approved, the 
entity shall establish an endowment fund. The Secretary may 
award supplemental grants, not to exceed $100,000, to approved 
entities to assist in developing a strategy (Sec. 385C(d) see 
above). To be eligible for an endowment grant, approved 
entities shall develop and obtain the approval of the Secretary 
for a comprehensive strategy. An approved entity shall receive 
final approval if the strategy meets certain requirements, and 
the Secretary may make grants, not to exceed $6 million, to 
these entities to implement the strategy (Sec. 385C(f) see 
above). Approved entities must provide a 50% match of the 
amount received in grant funds, except in certain cases where 
it is determined that a lower non-federal share is allowable to 
invest and then use the funds for infrastructure improvements 
and/or investments in enterprises that will improve the area. 
Grants may be made, not to exceed $100,000, to qualified 
intermediaries to provide technical assistance and capacity 
building to approved entities (Sec. 358C(h) see above). 
Authorizes such sums as are necessary for fiscal years 2004-
2006. (Section 604)
      The Conference substitute adopts the House provision with 
an amendment to establish a National Board on Rural America 
that will make planning grants and innovation grants to 
certified Regional Investment Boards. A National Conference 
onRural America will be held to address challenges in rural areas. A 
total of $100 million is available to carry out this section. (Section 
6030)
      For over 40 years rural policy scholars and analysts have 
recognized the absolute necessity of a more integrated, 
comprehensive rural policy framework. In establishing this 
framework, Section 6030, will require the active participation 
of all Federal agencies, rural units of local government, 
development organizations, community-based organizations, rural 
nongovernmental organization, and the private and philanthropic 
sectors. While a collaborative effort and comprehensive 
planning is essential for success of any endeavor, no plan can 
succeed without resources for its implementation and 
completion.
      This program is designed to use Federal funds as a 
catalyst to bring together the various sectors from rural areas 
in order to make maximum use of Federal, state and local 
resources.
      The Managers intend that the appropriate population of an 
eligible area is between 50,000 and 150,000; however, the 
Managers expect the regional and national boards to make 
exceptions as needed. The target population does not include a 
metropolitan area which may be participating in a regional 
plan.
      The Managers understand the diversity of governance, 
governmental entities and governmental structure in the 50 
states. In composing the regional boards, the Managers expect 
that it will include the broadest possible collection of public 
and private entities representative of the area or region of 
the eligible area.
      In appointing the National Board on Rural America, the 
Managers expect the Secretary to carefully consider individuals 
recommended by the Chairman and Ranking Members of the House 
Committee on Agriculture and the Senate Committee on 
Agriculture, Nutrition and Forestry, the Speaker of the House 
of Representatives, and the Majority Leader of the Senate. The 
Secretary is encouraged to consider seven recommendations from 
the House of Representatives and seven recommendations from the 
Senate.
(10) Grants to Nonprofit Organizations To Finance the Construction, 
        Refurbishing, and Servicing of Individually-Owned Household 
        Water Well Systems in Rural Areas for Individuals With Low or 
        Moderate Incomes
      The House bill amends the water and wastewater 
authorities under the ConAct to authorize the Secretary to make 
grants and loans to provide individual residential water wells. 
(Section 614)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment limiting loans to $8,000 per water well system and 
authorizing the program at $10 million per fiscal year. 
(Section 6012)
(11) National Rural Development Partnership
      The House bill adds a new section to Subtitle E of the 
ConAct to establish a National Rural Development Partnership 
composed of the Coordinating Committee and the state rural 
development councils. (Section 615)
      The Senate amendment amends Subtitle D of the ConAct to 
add the NRDP composed of the Coordinating Committee and the 
state rural development councils. (Section 611)
      The Conference substitute adopts the Senate provision 
with an amendment clarifying the Senate language and 
authorizing up to $10 million per fiscal year. (Section 6021)
      The Conference substitute includes provisions which are 
intended to ensure the accountability of State Rural 
Development Councils (SRDCs) to the rural residents they are 
expected to serve and to agencies which provide financial 
support for their operations. The Managers specifically intend 
that all SRDCs will continue to abide by or come into 
compliance with the structural and process guiding principles 
of this section. The Managers also intend that USDA/Rural 
Development State Directors and other employees of USDA and 
other Federal agencies with rural responsibilities will fully 
participate as voting members in the governance and operations 
of SRDCs on an equal basis with other SRDC members.
      The Managers expect the National Rural Development 
Coordinating Committee to make significant progress toward the 
goal of better coordinating the rural policies and programs of 
Federal agencies and developing greater collaboration between 
the Federal government, the States, and others with resources 
to invest in rural areas.
      The Partnership has depended on voluntary contributions 
of discretionary funds from multiple Federal agencies to 
support its activities. This system has not met all of the 
needs of the SRDC. Accordingly, the Conference substitute 
contains an authorization for annual appropriations of $10 
million. The Managers encourage Federal agencies, whether or 
not they have contributed to the Partnership in the past, to 
financially support collaborative initiatives managed by SRDCs. 
The Managers specifically intend that all Federal funds that 
are provided to the SRDCs will be used solely for SRDC 
operations and projects and that the use of these funds will be 
controlled exclusively by the SRDCs' governing boards. The 
Managers also strongly urge SRDCs to identify additional 
sources of non-Federal funds to support their activities.
      SRDCs currently operate in 40 States. The Managers 
encourage the Secretary to work with the remaining 10 States to 
establish SRDCs.
(12) Eligibility of Rural Empowerment Zones, Rural Enterprise 
        Communities, and Champion Communities for Direct and Guaranteed 
        Loans for Essential Community Facilities
      The House bill amends Sec. 306(a) of the ConAct to 
authorize the Secretary to make or insure loans to communities 
designated as rural empowerment zones, rural enterprise 
communities or as champion communities to install or improve 
essential community facilities. (Section 616)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to strike ``champion communities''. (Section 6001)
      The Managers intend that this provision affect only two 
communities--Lewiston, Maine, and Eagle Pass, Texas. These 
communities were designated rural Enterprise Communities in 
1999, and this amendment would make them eligible for 
participation in essential community facility programs only.
(13) Grants To Train Farm Workers in New Technologies and To Train Farm 
        Workers in Specialized Skills Necessary for Higher Value Crops
      The House bill provides that the Secretary may make 
grants to an entity to train farm workers to use new 
technologies and develop specialized skills for agricultural 
development. Authorizes no more than $10 million be 
appropriated to the Secretary for fiscal years 2002-2011 to 
make such grants. (Section 617)
      The Senate amendment is the same except it authorizes 
grants through 2006. (Section 646)
      The Conference substitute adopts the House provision with 
an amendment making technical changes and adding ``farmer 
cooperatives'' as an eligible entity. (Section 6025)
(14) Loan Guarantees for the Purchase of Stock in a Farmer Cooperative 
        Seeking To Modernize or Expand
      The House bill amends Sec. 310B of the ConAct to provide 
loan guarantees for individual farmers to purchase capital 
stock of a farmer cooperative established for an agricultural 
purpose. (Section 618)
      See also Sec. 523 (Credit Title) of the House bill, which 
contains additional modifications to the B&I Loan Program to 
provide for guaranteed loans to projects in areas other than 
rural communities, in the case of insured loans, if a majority 
of the project involved is owned by individuals who reside and 
have farming operations in rural communities, and the project 
adds value to or processes agricultural commodities.
      The Senate amendment amends Sec. 310B of the ConAct to 
provide loan guarantees to farmers, ranchers or cooperatives to 
purchase start-up capital stock for expanding or creating an 
agriculture coop. The Secretary may guarantee a loan to a 
producer to join a coop in order to sell products he produces. 
Farmer coops eligible for B&I loans shall be eligible to 
refinance existing loans. The Secretary may establish appraisal 
standards for the Business and Industry Loan Program. The 
Secretary may assess a one-time fee for a loan guarantee, not 
to exceed 2% of the guaranteed principal portion of the loan. 
(Section 635)
      The Conference substitute adopts the Senate provision 
with an amendment to provide loan guarantees to purchase 
capital stock. The Secretary may make or guarantee a loan to a 
cooperative organization headquartered in a metropolitan area 
if the loan is used for a project in a rural area or meets the 
criteria of a cooperative generally. A cooperative organization 
shall be eligible to refinance an existing loan if certain 
requirements are met. The Secretary may guarantee a loan to a 
cooperative for a facility that is not located in a rural area 
if the facility provides value-added processing to producers 
located within 80 miles of the facility; if the primary benefit 
of the guarantee provides employment to rural areas; and the 
total amount of loans guaranteed does not exceed 10 percent of 
total loan guarantees in a fiscal year. The Secretary may 
consider the value of a properly appraised brand name, patent, 
or trademark of the cooperative in determining whether the 
cooperative organization is eligible for a loan guarantee. The 
Secretary may guarantee a loan that may not exceed $40 million 
for a project that is located in a rural area and provides for 
the value-added processing of agricultural commodities and the 
Secretary may not delegate the approval authority for such a 
guarantee. (Section 6017)
      There is a 2% limit on an initial fee. That limit does 
not prevent annual fees which may be needed to preserve an 
appropriate program level.
      The Managers expect the Secretary, to consider on a 
priority basis, Business and Industry loan and loan guarantee 
program applications from eligible marketing cooperatives of 
agriculture producers for the purpose of constructing peanut 
storage facilities and for value-added agriculture and 
renewable energy. In regard to paragraphs (6) and (8), the 10 
percent limit in each of those paragraphs is not a goal to be 
worked toward, but a limit. The Managers recognize that the 
loans or loan guarantees provided may be less than that level.
(15) Intangible Assets and Subordinated Unsecured Debt Required To Be 
        Considered in Determining Eligibility of Farmer-Owned 
        Cooperative for Business and Industry Guaranteed Loan
      The House bill amends Sec. 310B of the ConAct for this 
purpose. In considering applications for a loan guarantee from 
an agricultural cooperative, the Rural Business-Cooperative 
Service may consider the value of intangible assets such as 
trademarks, patents, licenses, and brands subject to appraisal, 
when evaluating the eligibility of an agricultural cooperative 
for loan guarantees. The same consideration may be given to 
unsecured subordinated debt, which may be viewed as the 
equivalent of equity in the cooperative. Both intangible assets 
and unsecured subordinated debt may be considered in 
determining the viability of a cooperative's balance sheet. 
(Section 619)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment that the Secretary may consider the value of a 
properly appraised brand name, patent, or trademark of a 
cooperative. (Section 6017)
(16) Ban on Limiting Eligibility of Farmer Cooperative for Business and 
        Industry Loan Guarantee Based on Population of Area in Which 
        Cooperative Is Located
      The House bill amends the ConAct so that in determining 
whether a cooperative organization owned by farmers is eligible 
for a guaranteed loan, the Secretary shall not apply any 
lending restrictions based on population to the area in which 
the cooperative is located. (Section 620)
      The Senate amendment provides for that loans can be made 
to coops headquartered in a metropolitan area if the project is 
in a rural area. (Section 635)
      The Conference substitute adopts the House provision with 
an amendment that the Secretary may guarantee a loan to a 
cooperative for a facility that is not located in a rural area 
if the facility provides value-added processing to producers 
located within 80 miles of the facility; if the primary benefit 
of the guarantee provides employment to rural areas; and the 
total amount of loans guaranteed does not exceed 10 percent of 
total loan guarantees in a fiscal year. (Section 6017)
(17) Rural Water and Waste Facility Grants
      The House bill removes the appropriation authorization 
from the rural water and waste water program under the ConAct, 
in effect providing such sums as may be necessary. (Section 
621)
      The Senate amendment increases current law from $590 
million in total spending per year to a new authorization of 
$1.5 billion per year. The Secretary may make grants to 
entities to capitalize revolving funds to provide loans to 
eligible borrowers to finance up to $100,000 of the costs of 
predevelopment, equipment, replacement, small systemsextensions 
and other small water and wastewater projects. Authorizes 
appropriations of $30 million each fiscal year 2002-2006 for this 
subparagraph. (Section 621)
      The Conference substitute adopts the Senate provision 
with an amendment to authorize such sums as necessary for the 
rural water and waste water program. (Section 6002)
(18) Rural Water Circuit Rider Program
      The House bill establishes permanently under the ConAct a 
national rural water circuit rider program to provide technical 
expertise to existing and start-up rural water systems 
throughout the country. Provides an authorization of 
appropriations of $15 million per year (Section 622)
      The Senate amendment is nearly identical to House bill 
except for (B) that contains language that says the new program 
``shall not affect the authority of the Secretary to carry out 
the circuit rider program for which funds are made available 
under the heading RCAP for 2002.'' Also, the authorization for 
$15 million is only through 2006. (Section 623)
      The Conference substitute adopts the Senate provision 
with an amendment making the program permanent. (Section 6005)
(19) Rural Water Grassroots Source Water Protection Program
      The House bill establishes a national source water 
protection program within the U.S. Department of Agriculture 
that will enable rural water associations to provide better 
services in the implementation of wellhead and ground water 
protection programs. The program is authorized at an annual 
appropriation of $5 million. (Section 623)
      The Senate amendment contains no comparable provision in 
rural development title, but see conservation title.
      The Conference substitute adopts the Senate provision. 
(Section 217 (1240Q))
(20) National Rural Cooperative and Business Equity Fund
      The Senate amendment amends the ConAct to establish the 
Fund, governed by a board of directors, to revitalize rural 
communities and sustain rural business development by providing 
federal funds and credit enhancements to a private equity fund 
in order to encourage investments by authorized private 
investors. The Secretary shall make $150 million available 
(subject to appropriations) for the fund which is to be matched 
by the investors; guarantee 50% of each investment up to $300 
million made by a Fund investor; guarantee 100% of the 
repayment of principal and accrued interest on approved 
debentures issued by the Fund, not to exceed $500 million. No 
single investment shall exceed the greater of $2 million or 7% 
of the Fund. The total investment made in a company may not 
exceed 20% of the total investment in the project. Authorizes 
such sums as are necessary. (Senate 601)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(21) Rural Business Investment Program
      The Senate amendment spends $70 million in 2002 for 
subsidies and $50 million in 2002 for grants.
      Adds a new subtitle H to the ConAct that establishes a 
Rural Business Investment Program (RBIP) administered by the 
Secretary that, among other things, promotes economic 
development and the creation of wealth and job opportunities in 
rural areas.
      New Sec. 384A. defines various terms used by the 
Secretary to implement the RBIP, including the term Rural 
Business Investment Company (RBIC).
      New Sec. 384B. sets out the purposes of the RBIP to 
promote economic development and to establish a developmental 
venture capital program that addresses the unmet investment 
needs of small enterprises. The Secretary is authorized to 
enter into participation agreements with RBICs, guarantee RBIC 
debentures and make grants to RBICs.
      New Sec. 384C. establishes the RBIP.
      New Sec. 384D provides for the eligibility of companies 
to apply to participate in the RBIP if (1) the company is newly 
formed for-profit or a subsidiary of such company; (2) the 
company has a management team experienced in financing 
community development; and (3) the company will invest in 
enterprises that will create wealth and job opportunities.
      Applications to participate must contain a business plan, 
information about management's experience in financing rural 
development, a description of how the company intends to work 
with community organizations to meet unmet capital needs, a 
proposal on how the company will use grant funds, an estimate 
of cash to in-kind contributions the company will have in 
binding commitments, a description of the evaluation standards 
the company will use to determine whether or not it is meeting 
the RBIP's purposes, information regarding the financial 
strength of the parent company or its subsidiary, and any other 
information the Secretary requires.
      The Secretary must issue within 90 days a status report 
about an application to participate and must approve or 
disapprove the application within a reasonable time and, on 
approval, issue a license for the operation of the applicant. 
If disapproved, the Secretary must notify the applicant in 
writing.
      The Secretary is required to make determinations about 
the applicant when reviewing and processing the application, 
including finding that the management personnel of the 
applicant are qualified to carry out the RBIP and generally 
have a good business reputation.
      The Secretary shall approve and designate the applicant 
as a RBIC if it is determined that the applicant qualifies, the 
area in which the RBIC will operate is acceptable and the 
applicant enters into a participation agreement. The applicant 
has a capital requirement of at least $2.5 million.
      New Sec. 384E provides that the Secretary is authorized 
to guarantee, using the full faith and credit of the United 
States, the timely payment of principal and interest on 
debentures issued by the RBIC. Debenture guarantees may not 
exceed 15 years. Such guarantees may not exceed the lesser of 
300 percent of the private capital of the RBIC or $105 million, 
and may provide for use of discounted debentures.
      New Sec. 384F authorizes the Secretary to issue trust 
certificates that represent partial or full ownership of RBIC 
debentures. The Secretary may pool RBIC debentures on which the 
certificates are based and may guarantee the timely payment of 
principal and interest on the certificates. The Secretary may 
administer the guaranteed trust or pool to provide for 
prepayment of or defaults on debentures. Trust certificates are 
backed by the full faith and credit of the U.S.
      The Secretary is required to provide for a central 
registration of all trust certificates and will subrogate and 
retain ownership rights over a debenture on which a claim is 
satisfied. The Secretary may maintain bank accounts and 
investments to facilitate the creation of trusts or pools of 
debentures. The Secretary may regulate brokers and dealers in 
RBIP trust certificates and require any person functioning as 
the Secretary's agent to provide a bond or evidence of 
insurance.
      New Sec. 384G authorizes the Secretary to charge fees for 
the guarantee of debentures or grants, and the Secretary's 
agents may collect a fee for operating a trust pool. The 
Secretary may charge a fee to license a RBIC. The Secretary 
shall use the fees to cover salaries and expenses of the 
Secretary and are authorized for covering the costs of 
licensing exams.
      New Sec. 384H authorizes the Secretary to make grants to 
RBICs over a multi-year period to be used only to provide 
operational assistance. RBICs must show how they will use grant 
funds. The amount of the grant can be up to the lesser of 10% 
of the private capital raise or $1 million. NOTE: INTENT was to 
also limit such funds to the lesser of twice the match provided 
by the RBIC. The Secretary may make grants to entities other 
than a RBIC under the same terms as it would to an RBIC.
      New Sec. 384I sets out the legal organization of RBICs, 
including their articles of incorporation if incorporated, and 
minimum levels of private capital acceptable to operate as a 
RBIC. The Secretary may accommodate lesser capital standards 
upon the showing of special circumstances and good cause. The 
Secretary shall ensure that the private capital is adequate for 
success and that at least 75 percent of the capital is invested 
in rural business and not more than 10% may be invested in a 
city of over 100,000 or its surrounding urbanized area. That 
the minimum amount of capital required for RBICs authorized to 
be issued guarantees on debentures shall be $10,000,000 or 
$5,000,000 with a determination by the Secretary regarding 
risk. Secretary also is required to ensure that the RBIC 
management is diversified and unaffiliated with the ownership 
of the RBIC.
      New Sec. 384J provides that national banks, Federal 
Reserve member banks, federal savings associations, Farm Credit 
System (FCS) institutions and other insured banks may invest in 
RBICs but in no event may a lending institution make a greater 
than five percent investment of its capital and surplus in 
RBICs. In the case of a FCS institution or a combination of FCS 
institutions holding more than 15 percent of the voting stock 
in a RBIC, the RBIC may not provide financial or equity 
investment assistance to any entity not otherwise eligible to 
receive financing from the FCS.
      The total invested by any of the described financial 
institutions shall not exceed 5% of their capital.
      New Sec. 384K sets out the reporting requirements.
      New Sec. 384L provides for the Secretary to direct a 
private sector entity to exam the books, records and operations 
of participating RBICs, and the Secretary may charge RBICs for 
the costs of such examinations.
      New Sec. 384M authorizes the Secretary to use the federal 
district courts to enforce compliance of all provisions of the 
RBIP set out in rules, regulations, orders or participation 
agreements should the Secretary have reason to believe a RBIC 
is engaging in or about to engage in any act or practice that 
violates the RBIP. In the event of violations, a court of 
competent jurisdiction may issue temporary or permanent 
injunctions, restraining orders or other orders to prohibit 
further activities and may appoint a trustee or receiver to 
manage the assets of a RBIC. The Secretary may act as a trustee 
or receiver.
      New Sec. 384N authorizes the Secretary to void RBICs' 
participation agreements and to stop the exercise of all rights 
and privileges as a RBIC. A RBIC must be found to be in 
violation of the RBIP before the loss of such privileges.
      New Sec. 384O provides that RBICs and other, associated 
persons involved in any activity that violates the act to be 
held together to the extent the associated persons authorize or 
otherwise bring about the violation. Any mismanagement or 
misconduct shall be a breach of fiduciary responsibility and 
unlawful. Any person associated with the RBIC that commits any 
unlawful act or practice, or fails in any act or practice, that 
would result in the RBIC suffering financial losses has 
breached his fiduciary responsibility. This section further 
provides suitability rules for officers or agents of the RBIC 
and makes any breach of those rules to be unlawful acts.
      Sec. 384P provides procedures for removing officers or 
agents of a RBIC.
      Sec. 384Q requires the Secretary to enter into an 
interagency agreement with the Small Business Administration to 
carry out the day-to-day management and operation of the RBIP.
      Sec. 384R authorizes the Secretary to write regulations 
to carry out the RBIP.
      Sec. 384S provides $350 million for the guarantee of 
debentures and $50 million for grants from Treasury funds not 
otherwise appropriated to carry out the RBIP. Such funds shall 
remain available until spent.
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment making clarifying changes and that the 
Secretary shall enter into an interagency agreement with 
another federal agency that has expertise in operating a 
program of this nature. The Conference substitute provides $100 
million to carry out this program. (Section 6029)
      This program addresses the crucial problem of limited 
equity capital in rural America. The program allows investment 
companies to considerably leverage their equity resources, 
increasing the equity funds available in rural America by 
attracting capital for the program and through the leverage 
that the program provides. Only for profit Rural Business 
Investment Companies (RBIC) may apply because the profit motive 
and danger of loss will help minimize losses to the government. 
The Managers believe that a high quality management team of the 
applicants is crucial for success and expects that this factor 
will be given solid consideration.
      Financial institutions may participate in the program as 
set forth in the program. The Managers intend that financial 
institution regulators including the Farm Credit 
Administration, the Office of the Comptroller, the Federal 
Reserve, state bank regulators, and other financial institution 
regulators continue to have the authority to impose on any 
financial institution that they regulate any safeguard, 
limitation, or condition that the regulator considers to be 
appropriate (including, without limitation, any investment 
limit that is lower than the investment limit that this section 
imposes on insured depository institutions). The strong 
expectation of the Managers is that RBICs will not normally 
engage in lending of a type performed by regulated financial 
institutions except in circumstances where such assistance is 
not likely to be available and where the equity investment 
makes such arrangements prudent given the overall risks 
involved.
      The program is modeled after the Small Business 
Investment Company program,where considerable expertise in 
operating the program that provides capital for equity investments has 
been developed. That program shares many of the same provisions with 
the RBIC program that is being enacted allowing day-to-day management 
to follow almost identical practices with a few exceptions such as 
those dealing with the grants program and rural targeting of 
investments. It is the expectation of the Managers that the Secretary 
enter into an agreement under the Economy Act within 60 days of 
enactment with that appropriate agency.
      It is the expectation of the Managers that a considerable 
share of the rules and operating procedures for this program 
will be the same as the rules and operating procedures for the 
Small Business Investment Company program. Given that reality, 
it is the Manager's expectation that rules implementing this 
program can be proposed in a very short time period. The grant 
provisions are similar to the New Markets Venture Capital 
Program.
(22) Full Funding of Pending Rural Development Loan and Grant 
        Applications
      The Senate amendment spends a CBO estimated $454 million 
in 2002 (no future spending) to close out the backlog in the 
following rural development programs: community facility direct 
loans and grants; water and waste disposal direct loans and 
grants; rural water or wastewater technical assistance and 
training grants; emergency community water assistance grants; 
B&I guaranteed loans; solid waste management grants. 
Applications in the preapplication phase are not eligible for 
funding under this provision. (Section 603)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide $360 million to fund pending 
applications for water and waste disposal system grants and 
loans, with priority to water systems. (Section 6031)
(23) Enhancement of Access to Broadband in Rural Areas
      The Senate amendment spends $100 million each year 2002-
2006. Amends the Rural Electrification Act. The Secretary shall 
make grants, loans, and loan guarantees at 4% or market rate 
interest to construct, improve, acquire facilities and 
equipment to provide broadband service to rural communities 
with no more than 20,000 residents. Funding will be allocated 
to states, and funds not obligated by April 1 will go in a 
national pool to be used by the Secretary to make grants, 
loans, and loan guarantees in any state. (Section 605)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide loans and loan guarantees for 
broadband service and to clarify what entities are eligible to 
receive a loan or loan guarantee. (Section 6103)
      The Managers expect that the state government or local 
government or any agency, subdivision or instrumentality 
thereof (including consortia thereof) will be permitted to file 
applications during the three-month waiting period after the 
RUS has promulgated rules on the broadband program in order to 
keep their place in line for the next available round of 
funding.
      The Managers expect the RUS to evaluate the priority 
status of all pending broadband applications as soon as 
practicable after the date of enactment. Any completed 
application which meets the priority criteria should be 
evaluated for expedited approval. The Managers expect the 
Agency to determine the priority status of applications on hand 
at least once every quarter. In general, all other applications 
should be evaluated and awarded on a first come first serve 
basis.
      The Managers are aware that in the current broadband 
pilot program RUS has generally used the FCC's definition of 
broadband services. It is the Manager's intent that this 
practice should continue and that is why the Manager's used the 
definition of broadband services that is currently being used 
by the FCC and the RUS. The Managers want to make clear that 
the purpose behind using this definition was to maintain the 
current high standard used by RUS in determining what a 
broadband service is.
      However, the Managers expect the Administrator will apply 
a definition of broadband services to encourage new broader 
bandwidth technologies in rural areas and that the program will 
foster the development of a variety of technological 
applications including terrestrial and satellite wireless 
services. This is a critical function since this is a rapidly 
changing technology.
      The Managers have taken no position on particular 
technologies and believe that it is very important for the 
Department not to choose among adequate technologies. The 
Managers expect the Secretary to participate in any FCC 
proceedings or Department of Commerce study of the future of 
broadband services and the markets for such services.
      The Managers are aware that the RUS has administered a 
telecommunications program for over 50 years. To date there has 
not been a loan loss in that program. The Managers expect, that 
given that record, program levels will fully take that reality 
into account. The Managers intend for direct loans to be made 
at the treasury rate of interest in most circumstances.
(24) National Rural Development Information Clearinghouse
      The House bill extends the National Rural Information 
Center Clearing-House--(7 U.S.C. 3125b(c)) through 2011. 
(Section 701)
      The Senate amendment amends Section 2381 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 to establish a 
Clearinghouse at USDA to collect and disseminate information 
about programs and services available to a person or entity in 
a rural area regarding financial, technical or other 
assistance. The Clearinghouse will maintain an Internet 
website, and the Secretary shall use not more than $600,000 of 
the funds available to RHS, RUS, RBS each fiscal year to 
operate and maintain the Clearinghouse. (Section 607)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7101)
      The Managers expect the Rural Development mission area of 
the Department to highlight the existence and resources of the 
Rural Information Center of the National Agricultural Library 
on its websites and in its informational materials.
(25) Multijurisdictional Regional Planning Organizations
      The Senate amendment amends the ConAct to allow the 
Secretary to provide grants up to $100,000 to 
multijurisdictional regional planning organizations to pay for 
costs of assisting local governments to improve infrastructure, 
services and business development capabilities. Authorizes 
appropriations for $30 million in each year 2003-2006. A local 
match is required. (Section 624)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6006)
(26) Certified Nonprofit Organizations Sharing Expertise
      The Senate amendment amends Sec. 306(a) of the ConAct. 
The Secretary shall certify nonprofit organizations (which may 
include an institution of higher education) that demonstrate 
experience in providing technical assistance to improve 
infrastructure, services and business development capabilities 
of local governments, and make this list available to the 
public. Authorizes appropriations of $20 million each fiscal 
year 2003-2006 to make grants to certified organizations. 
(Section 625)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(27) Loan Guarantees for Certain Rural Development Loans
      The Senate amendment amends Sec. 306(a) to authorize the 
Secretary to guarantee loans made for community facilities or 
water and sewer systems, including loans financed by bond 
issuances described by Section 144(a)(12)(B)(ii) of the IR 
code. (NOTE: currently, projects with bonds receiving 
assistance under that section may not receive other government 
support. This section does not impact the IRS provision). Any 
individual or entity offering to buy these loans may receive 
the guarantee if the individual or entity demonstrates that 
person can continue the performance of the loan and can 
generate capital to assist borrowers of loans with additional 
credit needs to ensure servicing of loans.
      Amends Sec. 310B. to authorize the Secretary to guarantee 
loans made to finance bond issues for the provision of 
community facilities or water and sewer systems. (Section 626)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change the reference to section 142(a) of 
the Internal Revenue Code of 1986. (Section 6007)
      The Managers intent is that this section will allow the 
Department to provide support for noted projects in the event 
the IRS code is modified to allow such support without 
adversely affecting tax benefits.
(28) Rural Firefighters and Emergency Personnel Grant Program
      The Senate amendment spends $10 million in 2002 and then 
$30 million each year 2003-2006. Amends the ConAct to establish 
a grant program to provide scholarships to local government 
units to train firefighters and emergency medical personnel in 
firefighting, emergency medical practices, and responding to 
hazardous material and bioagents. Not less than 60% of the 
funds shall be used for this purpose. Grants may be used for 
facility improvements, equipment, operating, or establishing 
regional training centers. Not more than 40% may be used for 
the facility grants. The federal share of the facility grants 
shall not exceed 50%. (Section 627)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment to clarify that the Secretary shall 
give priority to grant applicants that provide for training 
within the region or locality in which the grant applicant is 
located. The Conference substitute provides for a funding level 
of $10 million for each of fiscal years 2003 through 2007, and 
as a result of this lower level of overall funding for the 
program, reduces the $2 million limitation for any single 
training center in any single year to $750,000. (Section 6405)
      The Managers expect that efforts will be made to minimize 
travel costs in order to maximize actual training provided. In 
order to minimize costs, appropriate training facilities within 
the area or region should be utilized whenever possible. Many 
firefighter and first responder training facilities, some with 
specialized functions such as farm safety have received USDA or 
FEMA assistance in the past, have excellent reputations but 
have significant facility needs. It is expected that the 
Department give a high priority to such facility needs.
(29) Tribal College and University Essential Community Facilities
      The Senate amendment amends Section 306(a) of the ConAct 
to add a provision allowing the Secretary to make grants to 
tribal colleges and universities to help them develop essential 
community facilities in rural areas. The federal share is not 
to exceed 75% of the total cost of these facilities. Authorizes 
$10 million a year for each of fiscal years 2003 through 2006. 
(Section 628)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6008)
(30) Water and Waste Facility Grants for Native American Tribes
      The Senate amendment amends Section 306C of the ConAct to 
authorize appropriations for $30 million in grants, $30 million 
in loans, and $20 million in grants to benefit Indian tribes 
each year 2002-2006. (Section 630)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6010)
(31) Rural Business Enterprise Grants
      The Senate amendment amends Section 310B(c)(1) of the 
ConAct by creating a priority in awarding grants under this 
program to non-profit entities operating on tribal land in an 
area with a population of no more than 5,000. (Section 632)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6014)
      In many rural tribal communities, tribes and tribal 
governments play a dominant role in the economic development of 
the area. As a result, unique patterns of economic development 
exist whereby the local economy is often composed of a single 
dominant employer. Because of these circumstances, many 
organizations located in isolated tribal communities are often 
unable to receive assistance from the Rural Business Enterprise 
Grant program. The Managers recognize the different patterns of 
economic development that exist in many rural tribal 
communities.
      It is the Managers expectation that funds made available 
under this provision will be used to assist in the financing or 
development of small and emerging businesses located in 
communities of less than 5,000 people on tribal lands or former 
tribal lands without respect to revenue or employee 
limitations. Funds made available under this provision may only 
be used to create, expand or operate value-added agricultural 
processing facilities.
(32) Grants to Broadcasting Systems
      The Senate amendment amends section 310B(f) of the ConAct 
by adding: $5 million is authorized per year from 2002-2006 for 
this subsection. (Section 634)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6016)
(33) Value-Added Intermediary Relending Program
      The Senate amendment amends sec. 310B of the ConAct. The 
Secretary shall make loans to eligible intermediaries, 
including State agencies, to make loans to recipients for 
projects to establish, enlarge, or operate enterprises adding 
value to agriculture products and commodities. Intermediaries 
shall give preference to bioenergy projects. Limits loans to $2 
million except in cases where the intermediary is a state 
agency. Authorizes $15 million to be appropriated for fiscal 
years 2003-2006. (Section 636)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(34) Use of Rural Development Loans and Grants for Other Purposes
      The Senate amendment amends subtitle A of the ConAct. If, 
after making a loan or grant, the Secretary determines the 
circumstances under which the loan or grant was made have 
sufficiently changed, the Secretary may allow the recipient to 
use the loan or grant for other purposes, meeting certain 
requirements. (Section 637)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6018)
(35) Simplified Application Forms for Loan Guarantees
      The Senate amendment amends Sec. 333A of the ConAct. The 
Secretary shall provide lenders a simplified application for 
guarantees of farmer program loans under $100,000 and B&I 
guaranteed loans under $400,000. It also provides that after 
2003, USDA may increase to $600,000 the limit on the size B&I 
loans eligible to use the simplified application process. The 
Secretary shall develop a process that accelerates processing 
applications for water and waste disposal grants and loans. 
(Section 638)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to allow the simplified application process 
to be used for guarantees of farmer program loans under 
$125,000. (Section 6019)
(36) Definition of Rural and Rural Area
      The Senate amendment amends Sec. 343(a) of the ConAct so 
that a ``rural area'' means a city, town or unincorporated area 
with a population of 50,000 or less (applied to Community 
Facility loans and grants, B&I direct and guaranteed loans, 
Sections 601 and 638); 10,000 or less for water and waste 
disposal grants and loans. Other definitions of rural are 
provided for multijurisdictional regional planning 
organizations and the microenterprise program (Section 639)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment to clarify the definition of 
``rural'' and ``rural areas'', and reduce the population 
requirement for the Community Facilities Program from 50,000 to 
20,000. (Section 6020)
(37) Rural Enterprises and Microenterprise Assistance Program
      The Senate amendment spends $10 million each year from 
2002-2006. Amends Subtitle D of the ConAct to establish a 
Program to provide low- and moderate-income individuals with 
skills to start new small businesses in rural areas, and to 
provide continuing technical assistance through local 
organizations as these new businesses begin operating. Grants 
may be made to qualified organizations to provide training and 
technical assistance. (Section 642)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(38) Rural Seniors
      The Senate amendment amends Subtitle D of the ConAct. The 
Secretary shall establish an interagency committee to examine 
special problems of rural seniors and report recommendations to 
the Senate and House Ag Committees.
      Authorizes $25 million to be appropriated each fiscal 
year 2003-2006 for grants to nonprofit organizations of up to 
20% of the cost of programs that provide facilities, equipment 
and technology for seniors.
      Reserves no less than 12.5% of the Community Facilities 
program funds for Senior Facilities up to April 1 of each 
fiscal year.
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(39) Children's Day Care Facilities
      The Senate amendment provides that Sec. 306(a)(19) of the 
ConAct is amended to reserve no less than 10% of the Community 
Facilities funds for grants to pay the cost share of developing 
and constructing day care facilities for children in rural 
areas up to April 1 of each fiscal year. (Section 642)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6004)
(40) Rural Telework
      The Senate amendment amends Subtitle D of the ConAct. The 
Secretary shall make a grant to an eligible organization to pay 
the cost of establishing a national rural telework institute. 
Nonprofit organizations and educational institutions may 
receive a grant of up to $500,000 for obtaining equipment and 
facilities to establish, expand or operate telework locations 
in rural areas. A 50% match is required. Authorizes $30 million 
for each fiscal year 2002-2006, of which $5 million each year 
will establish the institute. (Section 643)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that the matching requirement for a grant be 
30 percent the first three years of a project and 50 percent 
during the fourth and fifth years. The Conference substitute 
also prescribes non-federal contribution requirements and grant 
amounts. (Section 6022)
(41) Historic Barn Preservation
      The Senate amendment provides that Subtitle D of the 
ConAct is amended so the Secretary may make grants or enter 
into agreements with states to rehabilitate, preserve, or 
identify historic barns. Authorizes $25 million total for 
fiscal years 2002-2006. (Section 644)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize such sums as necessary. (Section 
6023)
(42) Grants for Emergency Weather Radio Transmitters
      The Senate amendment amends Subtitle D of the ConAct. 
Authorizes $2 million each fiscal year 2002-2006 so the 
Secretary may make grants to public and nonprofit entities for 
acquiring radio transmitters to increase coverage of rural 
areas by the emergency weather broadcast system. (Section 645)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment. (Section 6024)
      The Managers are concerned that many rural and remote 
areas in the United States do not have access to timely and 
accurate alerts and warnings regarding severe weather in the 
vicinity. In many cases, timely weather warnings may be the 
difference between life and death for individuals in the path 
of severe weather. It is the Managers intent that this grant 
program increase the coverage area of the all hazards weather 
radio broadcast system of the National Oceanic and Atmospheric 
Administration to as many rural and remote areas as possible.
(43) Delta Regional Authority
      The Senate amendment provides that Sec. 382D of the 
ConAct is amended to clarify (as a drafting matter) the 
provision relating to supplements to federal grant programs. 
Subtitle D of the ConAct is amended to add 4 Alabama counties 
to the definition of Lower Mississippi, and to allow grants for 
research at a particular university. Sec. 382M(a) of the ConAct 
is amended by extending authorization of appropriations and 
authority to 2006. (Section 647)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment clarifying the voting structure. (Section 
6027)
(44) SEARCH Grants for Small Communities
      The Senate amendment amends the ConAct. States may 
establish a Council that may apply for a grant of no more than 
$1 million. The Council will use this funding to award SEARCH 
(special environmental assistance for the regulation of 
communities and habitat) grants to communities with a 
population with 2,500 or less for an environmental project or 
to comply with an environmental law. Authorizes $51 million in 
appropriations and such sums as are necessary to carry out this 
section. (Section 648)
      The House bill contains no comparable provision.
      The Conference substitute does not amend the ConAct. It 
adopts the Senate provision with an amendment to administer 
this program through the State Rural Development Directors, in 
coordination with the environmental protection director of the 
State. (Sections 6301, 6302, 6303, 6304)
      The consultation and coordination provided by the 
Environmental Protection Agency is for technical and 
informational purposes; the Managers intend that the State 
rural development directors award SEARCH grants in each state. 
Annual appropriations are authorized at $1,000,000 per state 
per year.
      The State rural development directors are expected to 
appoint the members of the independent citizens' councils, 
which will help receive and review SEARCH grant applications 
from communities in the state. After a review of the 
applications by the council, in coordination with the State 
rural development director and the state environmental 
protection director, the State rural development directors will 
award SEARCH grants to communities for environmental projects 
that are necessary to carry out initial feasibility studies or 
to assist communities that demonstrate an inability to obtain 
sufficient funding from traditional sources as determined by 
the State rural development directors, in coordination with 
state environmental directors and the Council. Some State and 
Federal environmental laws and regulations require initial 
feasibility or environmental studies prior to undertaking an 
environmental project. It is the Managers' intent that SEARCH 
grants provided to communities for the purposes of carrying out 
an initial feasibility or environmental study be consistent 
with applicable State and Federal laws. It is not the Managers' 
intent to prohibit SEARCH grants to communities for initial 
feasibility or environmental studies where such requirements do 
not exist.
      The Managers are aware that many communities do not have 
experts with the technical ability to complete the paperwork 
and other documents accompanying traditional funding programs. 
Therefore, it is the Managers' intent that the application 
process be simplified and streamlined as is practicable. State 
rural development directors should work with rural communities 
to identify the requirements of such a simplified application 
process.
      Many communities coping with environmental laws and 
regulations are economically distressed and lack the resources 
to comply with mandates without grant assistance. It is the 
Managers' intent that State rural development directors not 
seek a local match from communities for grants awarded if it 
will result in economic hardship to the community in question. 
State rural development directors should reserve match 
requirements for specific situations and circumstances, and 
allow communities reasonable amounts of flexibility to provide, 
in lieu of cash payment, in-kind contributions when calculating 
the cost-share amount.
(45) Northern Great Plains Regional Authority
      The Senate amendment amends the ConAct to establish the 
Authority to be composed of one member appointed by the 
President and confirmed by the Senate, and the Governors of the 
states participating in the Authority (Iowa, Minnesota, 
Nebraska, North Dakota and South Dakota). The Authority may 
approve grants to state and local governments, public and 
nonprofit entities for projects including transportation and 
telecommunication infrastructure, business development, and job 
training. Establishes distressed areas in which to target 
funding as well as a minimum requirement for the distribution 
of funds among the states. State and regional development plans 
and grant applications must be approved by the Authority. 
Authorizes $30 million each fiscal year2002-2006 for the 
Authority, which expires in 2006. (Section 649)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
(Section 6028)
      The Northern Great Plains Regional Authority is 
authorized in the states of Iowa, Minnesota, Nebraska, North 
Dakota, and South Dakota. The Authority is expected to develop 
a series of comprehensive coordinated plans for the economic 
development of the region. The Conference substitute authorizes 
appropriations of $30,000,000 in each of fiscal years 2002 
through 2007.
      Grants will be made by the Authority particularly to 
those counties which are distressed, with a special emphasis on 
transportation, telecommunications, and basic infrastructure 
such as sewer and water facilities as funds become available. 
The Managers recognize the ongoing rural development efforts 
that have evolved from the recommendations of the Northern 
Great Plains Rural Development Commission. The Commission was 
established in 1994 through the passage of P.L. 103-318 to 
prepare a 10-year rural development strategy for the Northern 
Great Plains Region. The Managers support the efforts of the 
Northern Great Plains, Inc. to implement the Commission's 
recommendations and urge the Department, along with this 
organization, to continue to advance the findings of the 
Commission.
      It is the expectation of the Managers that staff 
resources of that organization are allocated in a balanced 
manner to the benefit of all parts of the region. Grants to the 
Authority must be allocated geographically so each state 
receives at least one third of its proportional population 
share without regard to the level of distress of counties in 
that state.
(46) Alternative Agricultural Research and Commercialization 
        Corporation
      The House bill extends Sec. 722. Alternative Agricultural 
research and commercialization revolving fund. (7 U.S.C. 
5908(g)(1) and capitalization (7 U.S.C. 5908(g)(2) through 
2011. (Section 651)
      The Senate amendment repeals Subtitle G of Title XVI of 
the 1990 FACTA. The assets of the Corporation are transferred 
to the Secretary, and funds and any income shall be deposited 
into an account in the Treasury to pay outstanding claims or 
obligations of the Corporation and the cost of carrying out 
this section. There are other conforming amendments. (Section 
651)
      The Conference substitute adopts the Senate provision 
with a technical amendment. (Section 6201)
(47) Telemedicine and Distance Learning Services in Rural Areas
      The Senate amendment amends Section 2335A of the 1990 
FACTA to extend this provision through 2006. (Section 652)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 6203)
      The Managers direct that public television entities are 
eligible to receive assistance under this section for high 
speed telecommunication services in rural areas to provide 
educational programming for schools and communities in rural 
areas.
(48) Guarantees for Bonds and Notes Issued for Electrification or 
        Telephone Purposes
      The Senate amendment amends the REA. The Secretary shall 
guarantee bonds and notes issued by an eligible private lender 
if the proceeds are used for electrification or telephone 
projects eligible for assistance under this Act. The Secretary 
may not guarantee the bonds if they are not of reasonable and 
sufficient quality and for several other reasons. Bonds funding 
electric generation projects are specifically excluded from 
this program. Authorizes such sums as are necessary. Provides 
for fees for the issuance of the guarantees.
      Proceeds from the fees minus certain costs are placed in 
an economic development subaccount. Grants as provided by 
current law are made from the subaccount for economic 
development. (Section 661)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment. (Section 6101)
      This section provides for a new source of private funding 
for the Rural Economic Development Loan and Grant (REDLG) 
program. Since enactment in 1987, the REDLG program has 
provided approximately $185 million in economic development 
assistance to rural communities in the form of grants and zero-
interest loans for rural development projects such as water and 
waste, business incubator, schools, hospitals, emergency 
services, and general economic and community development.
      Private funding is provided through the payment of an 
annual 30 basis point fee by lenders that issue bonds or notes 
guaranteed by the Administrator of RUS under this section. 
These fees are placed in a sub-account for the purpose of 
providing the budget authority for eligible economic 
development projects through intermediaries participating in 
the REDLG program.
      The provision provides for safety and soundness and 
permits the Administrator to deny the request of a lender for a 
guarantee if the lender does not have expertise and experience 
in rural utility lending, or issues bonds that, without the 
guarantee, would not be of investment grade quality. In 
addition, a lender should provide documentation that the 
proceeds of a guaranteed bond or note are used for eligible 
REAct purposes.
      This provision further requires that a private lender 
make payments on the bonds or notes even if a loan made using 
the proceeds of such bond or note is not repaid to the lender. 
This effectively places the lender between the RUS and the 
borrower minimizing the risk to the government
(49) Expansion of 911 Access
      The Senate amendment amends Title III of the REA. The 
Secretary may make telephone loans to state or local 
governments, Indian tribes, or other public entities for 
facilities and equipment to expand 911 access in rural areas. 
Authorizes such sums as are necessary. (Section 662)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with a technical amendment. (Section 6102)

                Title VII--Research and Related Matters

                         subtitle a--extensions

(1) Market Expansion Research
      The House bill extends section 1436(b)(3)(C) of the Food 
Security Act of 1985 (7 U.S.C. 1632(b)(3)(c)) through 2011. 
(Section 700)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to repeal Section 1436(b)(3)(C) of the Food 
Security Act of 1985. (Section 7303)
(2) National Rural Information Center Clearing-House
      The House bill extends section 2381(e) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
3125b(e)) through 2011. (Section 701)
      The Senate amendment amends and generally revises section 
2381(e) of the Food, Agriculture, Conservation, and Trade Act 
of 1990 and transfers authority from the research mission area 
to the rural development mission area. (Section 607)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. The 
Managers expect the Rural Development mission area of the 
Department to highlight the existence and resources of the 
Rural Information Center of the National Agricultural Library 
on its websites and in its informational materials. (Section 
7101)
(3) Grants and Fellowships for Food and Agricultural Sciences Education
      The House bill extends section 1417(1) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3152(1)) through 2011. (Section 702)
      The Senate amendment amends section 1417 of NARETPA in 
several places to expressly include teaching and educational 
programs in ``rural economic, community, and business 
development'' as eligible purposes or recipients under this 
grant program and extends the authorization through 2006. 
(Section 703)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7102)
(4) Policy Research Centers
      The House bill extends section 1419A(d) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3155(d)) through 2011. (Section 703)
      The Senate amendment extends NARETPA (7 U.S.C. 3155(d)) 
through 2006. (Section 706(2))
      The Conference Substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7103)
(5) Human Nutrition Intervention and Health Promotion Research Program
      The House bill extends section 1424(d) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3174(d)) through 2011. (Section 704)
      The Senate amendment amends section 1424 of NARETPA to 
extend authorization through 2006. (Section 707)
      The Conference Substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7104)
(6) Pilot Research Program To Combine Medical and Agricultural Research
      The House bill extends section 1424A(d) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3174a(d)) through 2011. (Section 705)
      The Senate amendment extends section 1424A of the NARETPA 
through 2006. (Section 708)
      The Conference Substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7105)
(7) Nutrition Education Program
      The House bill extends section 1425(c)(3) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3175(c)(3)) through 2011. (Section 706)
      The Senate amendment extends section 1425 of NARETPA 
through 2006. (Section 709)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7106)
(8) Continuing Animal Health and Disease Research Programs
      The House bill extends section 1433(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3195(a)) through 2011. (Section 707)
      The Senate amendment extends section 1433 of NARETPA 
through 2006. (Section 710)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7107)
(9) Appropriations for Research on National or Regional Problems
      The House bill extends section 1434(a) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3196(a)) through 2011. (Section 708)
      The Senate amendment extends section 1434 of NARETPA 
through 2006. (Section 711)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7108)
(10) Grants to Upgrade Agricultural and Food Sciences Facilities at 
        1890 Land-Grant Colleges, Including Tuskegee University
      The House bill extends section 1447(b) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3222b(b)) through 2011. (Section 709)
      The Senate amendment amends section 1447 of NARETPA to 
increase the authorization from $15 million to $25 million and 
extends the authorization through 2006. (Section 760)
      The Conference substitute adopts the Senate provision 
with an amendment authorizing such sums as necessary and 
extending the authorization through 2007.(Section 7109)
(11) National Research and Training Centennial Centers at 1890 Land-
        Grant Institutions
      The House bill extends section 1448(a)(1) and (f) of the 
National Agricultural Research, Extension, and Teaching Policy 
Act of 1977 (7 U.S.C. 3222c(a) (1) and (f)) through 2011. 
(Section 710)
      The Senate amendment extends section 1448 of NARETPA 
through 2006 and strikes ``centennial'' and replaces it with 
``virtual'' each place it appears. (Section 761)
      The Conference Substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7110)
(12) Hispanic Serving Institutions
      The House bill extends section 1455(c) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3241(c)) through 2011. (Section 711)
      The Senate amendment extends section 1455 of NARETPA 
through 2006. (Section 712)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7111)
(13) Competitive Grants for International Agricultural Science and 
        Education Programs
      The House bill extends section 1459A(c) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3292b (c)) through 2011. (Section 712)
      The Senate amendment extends section 1459A of NARETPA 
through 2006. (Section 713)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7112)
(14) University Research
      The House bill extends subsections (a) and (b) of section 
1463 of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3311(a) and (b)) through 
2011. (Section 713)
      The Senate amendment extends section 1463(a) of NARETPA 
to increase the authorization from $850 million per year to 
$1.5 billion per year, and extends the authorizations in 
subsections (a) and (b) to 2006. (Section 716)
      The Conference substitute adopts the House provision with 
an amendment authorizing such sums as necessary and extending 
the authorization through 2007. (Section 7113)
      The Managers encourage the Secretary to review USDA 
competitive grants programs administered by the Cooperative 
States Research, Education and Extension Service and provide to 
Congress a report that includes an accounting of the success of 
minority-serving institutions in accessing competitive research 
funding during the applicable fiscal year, and recommendations 
for steps that Congress, the Administration and the minority-
serving institutions might take to achieve greater success by 
minority-serving institutions in securing competitively awarded 
grant funds.
(15) Extension Service
      The House bill extends section 1464 the National 
Agricultural, Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3312) through 2011. (Section 714)
      The Senate amendment extends section 1464 of NARETPA to 
increase the authorization from $420 million to $500 million 
and extend it through 2006. (Section 717)
      The Conference substitute adopts the House provision with 
an amendment authorizing such sums as necessary and extending 
the authorization through 2007. (Section 7113)
      The Managers recognize the importance of ensuring that 
America's farmers and ranchers have the tools necessary to 
remain the most productive, efficient and competitive producers 
in the global marketplace. Due to the complexity of marketing 
and management issues, intensive educational efforts have 
proven effective in helping producers increase their returns. 
The Agricultural Risk Protection Act acknowledged the need to 
establish a risk management education program to inform 
agricultural producers about the full range of risk management 
activities available to them.
      One program that has proven to be successful is the 
Master Marketer Educational System (MMES) conducted by Texas 
Cooperative Extension. This intensive training course takes 
producers from an intermediate to an advanced level in 
marketing/risk management. Program graduates serve as volunteer 
leaders in establishing and /or revitalizing marketing clubs in 
their home county to share what they have learned. Two-year 
post-training surveys have indicated that graduates have 
increased their returns by $25,000 to $30,000 per year. While 
the Master Marketer training and marketing clubs are the 
cornerstones of the system, MMES also includes an advanced 
topic series for producers and an in-depth risk management 
training for lenders. The Managers encourage the Secretary of 
Agriculture to expand such programs to provide quality risk 
management training for farmers across the country.
(16) Supplemental and Alternative Crops
      The House bill extends section 1473D(a) the National 
Agricultural, Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3319d(a)) through 2011. (Section 715)
      The Senate amendment extends section 1473D of NARETPA 
through 2006. (Section 720)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7115)
(17) Aquaculture Research Facilities
      The House bill extends section 1477 of the National 
Agricultural, Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3324) through 2011. (Section 716)
      The Senate amendment extends section 1477 of NARETPA 
through 2006. (Section 721)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7116)
(18) Rangeland Research
      The House bill extends section 1483(a) of the National 
Agricultural, Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3336(a)) through 2011. (Section 717)
      The Senate amendment extends section 1483 of NARETPA 
through 2006. (Section 722)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7117)
(19) National Genetics Resources Program
      The House bill extends section 1635(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5844(b)) is extended through 2011. (Section 718)
      The Senate amendment extends section 1635 of the FACT Act 
through 2006. (Section 731)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7118)
(20) High-Priority Research and Extension Initiatives
      The House bill extends section 1672(h) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5925(h)) is extended through 2011. (Section 719)
      The Senate amendment extends section 1672 of the FACT Act 
through 2006. Section 734)
      The Conference substitute combines the House and Senate 
provision, conforming to the format of the House provision and 
extending the authorization through 2007. (Section 7119)
      The Managers note that the US Department of Agriculture 
has relocated the Western Human Nutrition Research Center 
(WHNRC) to the University of California, Davis campus. In order 
to ensure that the full potential of a research and education 
partnership between the WHNRC and the University is realized, 
the Managers fully expect the Secretary of Agriculture to 
establish a Cooperative Agreement, to replace the current 
Memorandum of Understanding, with the University of California 
for the management of the WHNRC by August 1, 2002.
      The Managers expect that the Secretary shall, in making 
grants under paragraph 41, give priority to proposals to: (i) 
establish and coordinate priorities for genetic evaluation of 
domestic beef cattle; (ii) consolidate research efforts to 
reduce duplication of effort and maximize the return to beef 
industry; (iii) streamline the process between the development 
and adoption of new genetic evaluation methodologies by the 
industry; (iv) identify new traits and technologies for 
inclusion in genetic programs in order to reduce the costs of 
beef production and provide consumers with a high nutritional 
value, healthy, and affordable protein source or create 
decision making tools that incorporate the increasing number of 
traits being evaluated and the increasing amount of information 
from DNA technology into genetic improvement programs, with the 
goal of optimizing the overall efficiency, product quality and 
safety, and health of the domestic beef cattle herd resource.
      The Managers recognize the importance of proper 
management and stewardship of the Ogallala Aquifer and other 
natural resources to the long-term viability of agricultural 
enterprises and communities in the Central and Southern Great 
Plains. The Managers recognize the ongoing efforts of 
educational institutions and agricultural entities in this 
region that have expertise in developing enhanced management 
strategies for conserving water, natural resources and 
associated agricultural infrastructure in order to protect the 
region's economic integrity over the long term. The Managers 
commend multi-disciplinary research efforts to develop new 
technologies and strategies to manage and utilize water and 
natural resources to produce sustainable economic returns.
      To maintain the economic vitality and rural population 
base of the Central and Southern Great Plains, the Secretary is 
encouraged to give priority to and fund collaborative research 
efforts that seek to protect the water and natural resources of 
this region.
(21) Nutrient Management Research and Extension Initiative
      The House bill extends section 1672A(g) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5925a(g)) through 2011. (Section 720)
      The Senate amendment extends section 1672A of the FACT 
Act through 2006. (Section 735)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7120)
      The Managers acknowledge the many benefits of the worm 
farming industry. Worm farms, while not recognized in any 
specific program within the USDA, provide considerable 
environmental benefits. By recycling organic waste, worms 
fertilize our agriculturally productive lands and improve 
nutrient-deficient soil. The Managers encourage the USDA to 
study and promote worm farming industry techniques that are 
beneficial to the environment.
(22) Agriculture Telecommunications Program
      The House bill extends section 1673(h) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5926(h)) through 2011. (Section 721)
      The Senate amendment extends section 1673 of the FACT Act 
through 2006. (Section 737)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7121)
(23) Alternative Agricultural Research and Commercialization Revolving 
        Fund
      The House bill extends section 1664(g)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5908(g)(1) and the capitalization section 1664(g)(2)of the FACT 
Act (7 U.S.C. 5908(g)(2)) is extended through 2011. (Section 
722)
      The Senate amendment repeals the provision and provides 
authority to the Secretary for the orderly disposal of AARCC 
assets. (Section 651)
      The Conference substitute adopts the Senate provision. 
(Sec. 6201)
(24) Assistive Technology Program for Farmers With Disabilities
      The House bill extends section 1680(c)(1) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5933(c)(1)) through 2011.
      The Senate amendment extends section 1680 of the FACT Act 
through 2006.
      The Conference substitute adopts the House provision with 
an amendment toextend the authorization through 2007. (Section 
7122)
(25) Partnerships for High-Value Agricultural Product Quality Research
      The House bill extends section 402(g) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7622(g)) through 2011. (Section 724)
      The Senate amendment extends section 402 of AREERA 
through 2006. (Section 742)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7123)
(26) Biobased Products
      The House bill extends section 404(e)(2) of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7624(e)(2)) and section 404(h) the authorization 
of appropriations of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 7624(h)) through 2011. 
(Section 725)
      The Senate amendment extends section 404 of AREERA for 
the basic authorization for the program and the authority to 
conduct the pilot project through 2006. (Section 744)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7124)
(27) Integrated Research, Education, and Extension Competitive Grants 
        Program
      The House bill extends section 406(e) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7626(e)) through 2011. (Section 726)
      The Senate amendment amends section 406 of AREERA to 
provide that the term for a grant under that section shall not 
exceed 5 years and to extend the authorization through 2006. 
(Section 746)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7125)
(28) Institutional Capacity Building Grants
      The House bill extends section 535(b)(1) of the Equity in 
Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 note) 
through 2011. (Section 727)
      The Senate amendment amends section 535 of the Act to 
extend the authorization for institutional capacity building 
grants through 2006 and change the authorized amount from $1.7 
million per year to such sums as necessary. (Section 755(f))
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7126)
(29) 1994 Institution Research Grants
      The House bill extends section 536(c) of the Equity in 
Educational Land-grant States Act of 1994 (7 U.S.C. 301 note) 
through 2011. (Section 728)
      The Senate amendment amends section 536 of the Act to 
extend the authorization for the research grants program 
through 2006. (Section 755(g))
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7127)
(30) Endowment for 1994 Institutions
      The House bill extends section 533(b) of the Equity in 
Educational Land-grant States Act of 1994 (7 U.S.C. 301 note) 
through 2011. Current authorization limit of $4,600,000 is 
amended to ``such sums as are necessary''. (Section 729)
      The Senate amendment extends the authorization of the 
1994 Institutions endowment under section 533 of the Act 
through 2006 and changes the amount from $4.6 million per 
fiscal year to such sums as are necessary. (Section 755(c))
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7128)
(31) Precision Agriculture
      The House bill extends section 403(i) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7623(i) through 2011. (Section 730)
      The Senate amendment extends section 403 of AREERA 
through 2006. (Section 743)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7129)
(32) Thomas Jefferson Initiative for Crop Diversity
      The House bill extends section 405(h) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7625(h) through 2011. (Section 731)
      The Senate amendment extends section 405 of AREERA 
through 2006. (Section 745)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7130)
(33) Support for Research Regarding Diseases of Wheat, Triticale, and 
        Barley Caused by Fusarium graminearum or by Tilletitia indica
      The House bill extends section 408(e) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7628(e) through 2011.
      The Senate amendment extends section 408 of AREERA 
through 2006. (Section 747)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007 and 
strike the dollar figure and authorize such sums as are 
necessary. (Section 7131)
(34) Office of Pest Management Policy
      The House bill extends section 614(f) of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 
7653(f)) through 2011. (Section 733)
      The Senate amendment extends section 614 of AREERA 
through 2006. (Section 750A)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7132)
(35) National Agricultural Research, Extension, Education and Economics 
        Advisory Board
      The House bill extends section 1408(h) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3123(h) through 2011. (Section 734)
      The Senate amendment amends section 1408 of NARETPA to 
extend the term of the Board through 2006. (Section 702)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7133)
(36) Grants for Research on Production and Marketing of Alcohols and 
        Industrial Hydrocarbons From Agricultural Commodities and 
        Forest Products
      The House bill extends section 1419(d) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3154(d)) through 2011. (Section 735)
      The Senate amendment extends section 1419 of NARETPA 
through 2006. (Section 705)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7134)
(37) Biomass Research and Development
      The House bill extends title III of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 7624 note) through 2011. 
(Section 736)
      The Senate amendment extends title III of ARPA through 
2006. (Section 903)
      The Conference Substitute adopts the Senate provision 
with amendments. The conference substitute provides $12,500,000 
annually for each fiscal year 2002-2007. (Section 9008)
(38) Agricultural Experiment Stations Research Facilities
      The House bill extends section 6(a) of the Research 
Facilities Act (7 U.S.C. 390d(a)) through 2011. (Section 737)
      The Senate amendment extends section 6 of the Research 
Facilities Act through 2006. (Section 782)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7135)
(39) Competitive, Special, and Facilities Research Grants, National 
        Research Initiative
      The House bill extends subsection 2(b)(10) of the 
Competitive, Special, and Facilities Research Grant Act (7 
U.S.C. 450(i)(b)(10)) through 2011. (Section 738)
      The Senate amendment extends subsection (b)(10) through 
2006. (Section 784)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7136)
(40) Federal Agricultural Research Facilities Authorization of 
        Appropriations
      The House bill extends section 1431 of the National 
Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1985 (P.L. 99-198; 99 Stat. 1556) through 2011. 
(Section 739)
      The Senate amendment extends section 1431 of the NARETPA 
through 2006. (Section 783)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7137)
(41) Cotton Classification Services
      The House bill extends 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) through 2011. 
(Section 740)
      The Senate amendment extends the first sentence of 
section 3a of the Act of March 3, 1927 through 2006. (Section 
1047)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Sec. 10501)
(42) Critical Agricultural Materials Research
      The House bill extends section 16(a) of the Critical 
Agricultural Materials Act (7 U.S.C. 178n(a)) through 2011. 
(Section 740A)
      The Senate amendment extends section 16 of the Act 
through 2006. (Section 781)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7138)

                       Subtitle B--Modifications

(43) Equity in Educational Land-Grant Status Act of 1994
      The House bill amends section 534(a)(1)(A) of the Equity 
in Educational Land-Grant Status Act of 1994 (7 U.S.C. 301 
note) by increasing the authorization of appropriations from 
$50,000 to $100,000; by modifying the definition by which full-
time equivalent Indian Student Count is calculated; by making 
accreditation requirements; and by updating the names of the 
1994 institutions. (Section 741)
      The Senate amendment has the same language but also adds 
White Earth Tribal and Community College to the list of 1994 
Institutions. (Section 755)
      The Conference substitute adopts the House provision for 
741(a), the Senate provision for 741(b), the Senate provision 
for 741(c), and the Senate provision for 741(d) with an 
amendment that adds White Earth Tribal and Community College to 
list of 1994 Institutions and requires USDA to report to 
Congress with guidance on standards for future additions. 
(Section 7201)
(44) The National Agricultural Research, Extension, and Teaching Policy 
        Act of 1977
      The House bill amends Section 1404(4) of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3103(4)) by adding 1994 institutions to the 
definition of colleges and universities. Intent is to make 1994 
land grant institution eligible for competitive grants. 
(Section 742)
      The Senate amendment has the same intent, but adds the 
1994 Institutions to the list of institutions eligible for the 
Integrated Grants Program in section 406 of AREERA. (Section 
756)
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7209)
(45) Agricultural Research, Extension, and Education Reform Act of 1998
      The House bill amends section 401(c)(2) of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7621(c)(2)) by adding:
      (1) alternative fuels and renewable energy sources to 
Priority Mission Areas;
      (2) by including energy efficiency in priority research 
areas in Precision Agriculture (7 U.S.C. 7623; by including 
energy efficiency in priority research areas of the Thomas 
Jefferson Initiative for Crop Diversity (7 U.S.C. 7625(a));
      (3) by including energy efficiency and renewable 
resources in priority research areas of the Coordinated Program 
of Research, Extension, and Education to Improve Viability of 
Small and Medium Size Dairy, Livestock, and Poultry Operations 
(7 U.S.C. 7627);
      (4) by amending section 408 of AREERA, Support for 
Research Regarding Diseases of Wheat, Triticale, and Barley 
caused by Fusarium graminearum or by Tilletitia Indica (7 
U.S.C. 7628(a)) to include research related to Karnal bunt 
identification and control; and
      (5) by adding a new section to the Agricultural Research, 
Extension, and Education Reform Act of 1998 (7 U.S.C. 7621 et 
seq) to authorize a Program to Control Johne's Disease. 
(Section 743)
      The Senate amendment provides for the definition of 
precision agriculture, adds ``horticultural'' into subsection 
(a)(3)(A), adds a new subsection (a)(3)(E) to read ``using such 
information to enable intelligent mechanized harvesting and 
sorting systems for horitcultural crops''; and adds a new 
subsection (a)(4)(E) to read ``robotic and other intelligent 
machines for use in horticultural cropping systems'' and in 
subsection (c)(2) by adding ``horticultural'' after 
``agronomic'' and adding ``product variability''. (Section 743)
      The Conference substitute adopts the Senate provision 
from 743(a) and the House provision from 743(b), (c), (d), (e), 
and (f). (Section 7207)
      The Managers do not intend that any future funds made 
available for Tilletia indica (commonly referred to as Karnal 
Bunt) research would be taken from the amount presently made 
available for research related to Fusarium graminearum 
(commonly referred to as Wheat Scab).
(46) Food, Agriculture, Conservation, and Trade Act of 1990
      The House bill amends section 1671(b) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5924(b)) to include plant pathogens as an eligible research 
priority. The House bill also amends the High-Priority Research 
and Education Initiative section 1672(e) of the FACT Act (7 
U.S.C. 5925(e)) to include several new high-priority research 
and extension projects:
            research to protect the United States food supply 
        and agriculture from bioterrorism
            wind erosion research
            crop loss research and extension
            land use management research and extension
            water and air quality research and extension
            revenue and insurance tools research and extension
            agrotourism research and extension
            harvesting productivity for fruits and vegetables
            nitrogen-fixation by plants
            agricultural marketing
            environment and private lands research and 
        extension
            livestock disease research and extension
            plant gene expression (Section 744)
      The Senate amendment amends section 1672 of the FACT Act 
to extend the authorization through 2006 and add the following 
new high-priority research and extension areas:
            animal infectious diseases research and extension
            program to combat childhood obesity
            integrated pest management
            beef cattle genetics
            dairy pipeline cleaner (with a set-aside of not 
        less than $100,000 of authorized funds for this 
        purpose)
            plant and animal varieties (Section 743)
      The Conference substitute adopts the House provision for 
Section 744(a) and the Senate provision for Section 744(b) with 
an amendment conforming Senate provisions to the format of the 
House provision and combining both the House and Senate lists 
of high priority research and extension projects. Additional 
priorities to be named are Genetically Modified Agriculture 
Products Research, Publicly Held Plant and Animal Varieties, 
and Sugarcane Genetics. New language is added to the assistive 
technology program for farmers with disabilities to ensure full 
consideration is given to entities applying for grants but have 
not previously received grants. (Section 7208)
      The Managers recognize the success of state AgrAbility 
programs that have benefited from assistive technology 
competitive grants. The Managers understand the difficulty 
faced by new applicants in competing with established programs 
for limited funds. To continue the success of this program and 
broaden its scope to additional states, the Managers encourage 
full funding of the program and urge the Secretary to give full 
consideration to the potential merits of eligible programs that 
have not previously received a grant award.
(47) The National Agricultural Research, Extension, Education and 
        Teaching Policy Act of 1977
      The House bill amends section 1408 of the National 
Agricultural Research Extension, Education and Teaching Policy 
Act of 1977--National Agricultural Research, Extension, 
Education, and Economics Advisory Board. (7 U.S.C. 3123) to add 
a non Land-grant college or university representative to the 
board, and provide authority for the board to consult with 
Congress and non-research agencies of the U.S. Department of 
Agriculture. Total Membership of the Advisory Board is 
increased from 30 to 31 members; and section 1419 of that Act--
Grants for Research on Production and Marketing of Alcohols and 
Industrial Hydrocarbons from Agricultural Commodities and 
Forest Products (7 U.S.C. 3154) to include industrial oilseed 
crops.
      The National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3291(a)) is also amended 
to authorize an internship program in Foreign Agriculture 
Service overseas offices. (Section 745)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment to move the provision concerning the total number 
of Advisory Board Members fromsubsection (c) to subsection (a) 
of House Section 745. New language amends current law to allow for 
funding of the Joe Skeen Institute for Rangeland Restoration. (Sec. 
7209)
(48) Biomass Research and Development
      The House bill amends title III of the Agricultural Risk 
Protection Act of 2000 (7 U.S.C. 7624 note) to include 
biodiesel in the Congressional Statement of Findings, to 
include animal by-products in the definition of ``Biomass'', 
and to add a livestock trade association representative to the 
Biomass Research and Development Technical Advisory Committee. 
(Section 746)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision.
(49) Biotechnology Risk Assessment Research
      The House bill amends section 1668 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5921) to ensure that risk assessment projects carried out under 
this program compare the risks associated with products of 
agricultural biotechnology to those associated with 
traditionally bred plants and animals. Assessment is increased 
from 1% to 3%. (Section 747)
      The Senate amendment amends section 1668 of the FACT Act 
by inserting a new subsection providing priorities for grant 
award and raising from 1 percent to 3 percent the amount to be 
withheld from USDA biotech research outlays for the purpose of 
making grants under this section for research on biotechnology 
risk assessment, with new language specifying that the research 
be ``on all categories identified by the Secretary of 
Agriculture as biotechnology''.
      Under the new language, ``the Secretary shall give 
priority to public and private research or educational 
institutions and organizations the goals of which include--
      (1) formation of interdisciplinary teams to review or 
conduct research on the environmental effects of the release of 
new genetically modified agricultural products;
      (2) conduct of studies relating to biosafety of 
genetically modified agricultural products;
      (3) evaluation of the cost and benefit for development of 
an identity preservation system for genetically modified 
agricultural products;
      (4) establishment of international partnerships for 
research and education on biosafety issues; or
      (5) formation of interdisciplinary teams to renew and 
conduct research on the nutritional enhancement and 
environmental benefits of genetically modified agricultural 
products. (Section 732)
      The Conference substitute adopts the House provision with 
an amendment adding genetically engineered microorganisms as a 
priority topic for risk assessment research, including 
international partnerships on bio-safety as a research 
priority, and reducing the amount withheld from biotechnology 
research funding from 3% to 2%. (Section 7210)
(50) Competitive, Special, and Facilities Research Grants
      The House bill amends section 2(a) of the Competitive, 
Special, and Facilities Research Grant Act (7 U.S.C. 450i(a)) 
to provide for consultation on development of program 
priorities with the National Agriculture Research, Extension, 
Education, and Economics Advisory Board. (Section 748)
      The Senate amendment amends subsection (b)(2) of the Act 
to strike the stated substantive areas of national and 
multistate needs under high priority research and instead 
provide for the Secretary to determine those needs in 
consultation with the REE Board not later than July 1 of each 
fiscal year for the following fiscal year. (Section 784)
      The Conference substitute adopts the Senate provision 
with an amendment to retain the high priority research focuses 
prescribed in current law. (Section 7211)
(51) Matching Funds Requirement for Research and Extension Activities 
        of 1890 Institutions
      The House bill amends section 1449 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3222d) to phase in an increased matching 
requirement for non-Federal funds for 1890 land-grant colleges 
and universities to 100% by 2007. The Secretary is granted 
authority to waive the matching requirement if it is unlikely 
that a Territorial college will be able to satisfy the matching 
requirement in an individual fiscal year. (Section 749)
      The Senate amendment amends the matching requirements for 
1890 Institution research and extension formula funds in 
section 1449 of NARETPA to require that a State must match 60 
percent of Federal funds provided an 1890 Institution in FY 
2003 and provide a match of 110 percent of the amount required 
to be matched in the prior fiscal year for FY 2004 through 
2006. For fiscal years 2003 through 2006, the Secretary may 
waive any amount of the match above 50 percent for an 
institution if the Secretary determines that the State will be 
unlikely to meet the matching requirement. (Section 762)
      The Conference substitute adopts the House provision with 
an amendment to require a unified approach to a phase-in of 
100% matching requirement over 5 years; extended through 2007. 
(Section 7212)
(52) Matching Fund Requirement for Research and Extension Activities 
        for the United States Territories
      The House bill amends Section 3(d)4 of the Hatch Act of 
1877 (7 U.S.C. 361c(d)(4)) and section 3(e)4 of the Smith-Lever 
(7 U.S.C. 343(e)(4)) making a technical correction to establish 
matching requirements. (Section 749A)
      The Senate amendment has the same intent, but legislative 
language is drafted significantly differently. (Section 776)
      The Conference substitute adopts the Senate provision. 
(Section 7213)
(53) The Initiative for Future Agriculture and Food Systems
      The House bill amends section 401(b)(1) of the 
Agricultural Research, Extension, and Education Reform Act of 
1998 (7 U.S.C. 7621(b)(1)) to provide a total of $1,160,000,000 
to be transferred from the Treasury in equal increments for 
each fiscal year beginning on October 1, 2003 through September 
30, 2011. Funds transferred beginning on October 1, 2003 would 
be available until expended. Funds will be deposited directly 
into the Commodity Credit Corporation accounts as opposed to a 
separate account in the Treasury. (Section 750)
      The Senate amendment amends section 401 of AREERA to 
retain $130 million in mandatory money for 2002 and extend the 
program for fiscal years 2003 through 2006 at $225 million per 
fiscal year in mandatory money. Encourages Secretary to set 
aside 10% of available funds for minority serving institutions. 
(Section 741)
      The Conference substitute adopts the House provision with 
an amendment adding ``minority-serving institutions'' to the 
list of those institutions that have not previously been 
successful in obtaining competitive grants under current law, 
adding rural economic policy analysis as a critical issue for 
research, and extending the authorization for the program 
through 2007. New language creates a budgetary baseline and 
provides $1.3 billion in new mandatory funding. (Section 7205)
      In making grants to address rural economic and business 
and community development policy issues, the Managers encourage 
the agency to solicit and fund research, education, and 
extension projects on rural policy, rural economic and 
community development, agriculturally-based development, new 
and alternative markets, locally-owned value-adding 
enterprises, and self employment and entrepreneurial 
opportunities. The Managers also encourage the agency to 
solicit project proposals addressing critical issues related to 
improving the effectiveness of Federal rural and agricultural 
development programs, including projects directly involving 
rural organizations and rural entrepreneurs that participate in 
Federal rural development programs.
      The Managers note the importance of funding for the farm 
efficiency and profitability priority mission area. The Mangers 
encourage the agency to solicit and fund projects which promote 
the development of management and marketing systems that 
improved profitability, including development of 
diversification and input cost reduction strategies; effective 
local, regional, and international marketing programs; farm-
based value-added processing and new high return production and 
marketing niches; improved methods of managing risk; and means 
to improve management and marketing of natural and 
environmental resources. Also, as part of this priority mission 
area, the Managers encourage the agency to solicit and fund 
research and development of farm tenure, transfer, succession, 
finance, management, production, and marketing models and 
strategies that foster new farming and ranching opportunities 
for beginning farmers and ranchers.
(54) Carbon Cycle Research
      The House bill amends section 221 of the Agricultural 
Risk Protection Act of 2000 (P.L. 106-224; 114 Stat. 407) to 
provide an authorization of appropriations so that a 
discretionary program could be continued. (Section 751)
      The Senate amendment is similar but authorization is 
extended only through 2006. (Section 787)
      The Conference substitute adopts the House provision with 
an amendment to extend the authorization through 2007. (Section 
7223)
      The Managers recognize the success of the carbon cycle 
research consortium (created by Sec. 221 of the Agriculture 
Risk Protection Act of 2000) and encourage these institutions 
to continue their cooperative work. The Managers understand 
that the consortium network may be expanded, as deemed 
appropriate by the consortium, to include additional 
institutions with interest or expertise in carbon cycle 
research.
(55) Definition of Food and Agricultural Sciences.
      The House bill amends section 2(3) of the Research 
Facilities Act (7 U.S.C. 390(2)(3)) to strike the definition of 
Food and Agricultural Sciences and instead refer to the 
definition of Food and Agricultural Sciences in section 1408(8) 
of the National Agricultural Research, Extension, and Teaching 
Policy Act of 1977 (7 U.S.C. 3103(8)). (Section 752)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7214)
(56) Federal Extension Service
      The House bill amends section 3(b)(3) of the Smith-Lever 
Act (7 U.S.C. 343(b)(3)) to provide that ``such sums as are 
necessary'' may be appropriated to carry out this section. 
(Section 753)
      The Senate amendment rewrites section 3(b)(3) of the 
Smith-Lever Act, which authorizes extension funds for the 1994 
Institutions, to change the authorization from $5 million to 
such sums as necessary beginning in FY 2002, to change the 
manner of distribution of such funds from a competitive 
application basis to a formula to be developed and implemented 
by the Secretary in consultation with the 1994 Institutions, 
and allows payments for extension activities that may be 
carried out in more than one fiscal year. (Section 754)
      The Conference substitute adopts the House provision with 
an amendment to allow the carry-over of funding until expended. 
(Section 7215)
(57) Policy Research Centers
      The House bill amends section 1419A(c)(3) of the National 
Agricultural Research, Extension, and Teaching Policy Act (7 
U.S.C. 3155(c)(3)) to provide that grant funding may be used to 
disseminate policy research information. (Section 754)
      The Senate amendment is the same language.
      The Conference substitute adopts the Senate provision. 
(Section 7216)

                      subtitle c--related matters

(58) Resident Instruction at Land-Grant Colleges in U.S. Territories
      The House bill provides new authority for resident 
instruction at land-grant colleges in United States 
Territories, subject to the availability of appropriations. 
(Section 761)
      The Senate amendment amends section 1404 of the NARETPA 
of 1977 to add a definition for ``insular area'' to include the 
Commonwealth of Puerto Rico and U.S. Territories. (Section 701)
      Also amends NARETPA to add a new subtitle O--Land Grant 
Institutions in Insular Areas. The ``insular areas'' are 
defined in section 1404 of NARETPA as amended by section 701 of 
the bill. New section 1489 under that subtitle provides an 
authorization of $4 million per fiscal year through 2006 for 
the Secretary to make competitive or noncompetitive grants to 
State cooperative institutions (i.e., land-grants) in insular 
areas to strengthen the capacity of such institutions to carry 
out distance food and agricultural education programs using 
digital network technologies. Grants may be used: (1) to 
acquire equipment, instrumentation, networking capability, 
hardware and software, digital network technology, and 
infrastructure necessary to teach students and teachers about 
technology in the classroom; (2) to develop and provide 
educational services (including faculty development) to prepare 
students or faculty seeking a degreeor certificate approved by 
the State or a DOE recognized regional accrediting body; (3) to provide 
teacher education, library and media specialist training, and preschool 
and teacher aid certification to those who seek to acquire or enhance 
technology skills for use of technology in the instructional process; 
(4) to implement a joint project to provide technology education in the 
classroom with a local educational agency, community-based 
organization, national nonprofit, or a business; (5) to provide 
leadership development to administrators, board members, and faculty of 
eligible institutions with responsibility for technology education. 
Funds may not be used for the planning, acquisition, construction, 
rehab, or repair of buildings. The Secretary may carry out the program 
in a manner that recognizes the different needs and opportunities 
between institutions in the Pacific and those in the Atlantic. The 
Secretary may establish a matching requirement of up to 50 percent, 
which is subject to waiver. (Section 775)
      The Conference substitute adopts the House provision with 
an amendment to combine House section 761 with Senate sections 
701 and 775. The amendment also makes technical changes in 
Senate section 775, strikes the reference to businesses located 
within a HUB Zone under the Small Business Act, authorizes 
funding at such sums as are necessary, and extends the 
authorization through 2007. (Section 7503)
(59) Declaration of Extraordinary Emergency and Resulting Authorities
      The House bill amends section 415(e) of the Plant 
Protection Act (7 U.S.C. 7715(e)), section 442 of the Plant 
Protection Act (7 U.S.C. 7772), section 11 of the Act of May, 
1884, commonly known as the ``Animal Industry Act'' (21 U.S.C. 
114a) and the first section of the Act of September 25, 1981 (7 
U.S.C. 147b) to provide for more efficient management of 
declarations of extraordinary emergencies and transfer of funds 
from the Commodity Credit Corporation.
      A new section (419(a)) is added to the Plant Protection 
Act that requires the Secretary to determine if uses of methyl 
bromide required by state, local and tribal authorities to 
control the spread of plant pests and noxious weeds shall be 
authorized. In addition, the Secretary would maintain a 
registry of authorized uses. (Section 762)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision for 
762(a) and deletes the House provision for 762(b). For Section 
762(c), the Conference substitute adopts the House provision 
with an amendment to require the Secretary of Agriculture to 
consider the availability of methyl bromide alternatives prior 
to making a determination under this section, and to establish 
a program, in consultation with State, local and tribal 
authorities to identify methyl bromide alternatives. Exemptions 
from regulatory procedures under the Administrative Procedures 
Act and Paperwork Reduction Act are eliminated. A rule of 
construction is included to provide that nothing in this 
section would alter or modify the authority of the 
Administrator of the Environmental Protection Agency or to 
provide authority to the Secretary of Agriculture under the 
Clean Air Act or regulations promulgated under the Clean Air 
Act. (Section 7504)
(60) Agricultural Biotechnology Research and Development for the 
        Developing World
      The House bill authorizes the Secretary to use $5 million 
for each of the fiscal years 2004 through 2008 from funds 
allocated to the Initiative for Future Food and Agriculture 
Systems to establish a competitive grants program for the 
development of agricultural biotechnology in the developing 
world. (Section 763)
      The Senate amendment provides an authorization of $5 
million per year from 2002 through 2006 for the Secretary, 
acting through FAS, to carry out a competitive grant program to 
develop agricultural biotechnology for developing countries. 
Eligible recipients would include historically black colleges 
and universities, Hispanic-serving institutions, tribal 
colleges or universities that offer a curriculum in agriculture 
or the biosciences, a nonprofit organization, or a consortium 
of for-profit institutions and agricultural research 
institutions. Grants would be available for biotechnology 
projects that:
      (1) enhance nutritional content of agricultural products 
that can be grown in developing countries;
      (2) increase the yield and safety of agricultural 
products that can be grown in the developing countries;
      (3) increase the yield of agricultural products that are 
drought and stress-resistant and that can be grown in 
developing countries
      (4) extend the growing range of crops that can be grown 
in developing countries;
      (5) enhance the shelf-life of fruits and vegetables grown 
in countries;
      (6) develop environmentally sustainable agricultural 
products that can be grown in developing countries; and
      (7) develop vaccines to immunize against life-threatening 
illnesses and other medications that can be administered by 
consuming genetically engineered agricultural products. 
(Section 750)
      The Conference substitute adopts the Senate provision 
with an amendment to modify the definition of ``eligible 
entity'' to include all colleges and universities with an 
agricultural or bioscience curriculum and to authorize such 
sums as necessary through 2007. (Section 7505)

        subtitle d--repeal of certain activities and authorities

(61) Food Safety Research Information Office and National Conference
      The House bill repeals subsections (b) and (c) of section 
615 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7654(b) National Conference and 
(c)) Food Safety Report. (Section 771)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7301)
(62) Reimbursement of Expenses Under Sheep Promotion, Research, and 
        Information Act of 1994
      The House bill repeals section 617 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (P.L. 
105-185; 112 Stat. 607).
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7302)
(63) National Genetic Resources Program
      The House bill repeals section 1634 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5843). (Section 773)
      The Senate amendment extends section 1634 of the FACT Act 
through 2006. (Section 731)
      The Conference substitute adopts the Senate provision 
with an amendment to authorize through 2007. (Section 7118)
(64) National Advisory Board on Agricultural Weather
      The House bill repeals section 1639 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 
5853). (Section 774)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7304)
(65) Agricultural Information Exchange With Ireland
      The House bill repeals section 1420 of the National 
Agricultural Research, Extension and Teaching Policy Act 
Amendments of 1985 (P.L. 99-198; 99 Stat. 1551)
      No comparable provision. (Section 775)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7305)
(66) Pesticide Resistance Study
      The House bill repeals section 1437 of the National 
Agricultural Research, Extension and Teaching Policy Act 
Amendments of 1985 (P.L. 99-198; 99 Stat. 1558). (Section 775)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7306)
(67) Expansion of Education Study
      The House bill repeals section 1438 of the National 
Agricultural Research, Extension, and Teaching Policy Act 
Amendments of 1985 (P.L. 99-198; 99 Stat. 1559). (Section 777)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7307)
(68) Support for Advisory Board
      The House bill repeals section 1412 of the National 
Agricultural Research, Extension, and Teaching Policy Act of 
1977 (7 U.S.C. 3127). (Section 778)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(69) Task Force on 10-year Strategic Plan for Agricultural Research 
        Facilities
      The House bill repeals section 4 of the Research 
Facilities Act (7 U.S. C. 390b). (Section 779)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Section 7308)

              Subtitle E--Agriculture Facility Protection

(70) Additional Protections for Animal or Agricultural Enterprises, 
        Research Facilities, and Other Entities
      The House bill amends the Research Facilities Act (7 
U.S.C. 390 et seq.) by adding a new section to provide the 
Secretary with authority to investigate and assess civil 
penalties in cases of reckless or intentional destruction of 
animal or agricultural enterprises. A civil penalty assessed by 
the Secretary against a person for a violation shall be not 
less than the total cost incurred by the Secretary and the 
total cost of the economic damage suffered by the agricultural 
enterprise. A fund to assist victims of disruption would be 
established in the Treasury consisting of that portion of each 
civil penalty that represents the recovery of economic damages. 
The Secretary of Agriculture shall use the fund to compensate 
an animal or agricultural enterprise for economic losses. 
(Section 790)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(71) Competitive Research Facilities Grant Program
      The Senate amendment amends NARETPA to add a new section 
1417A providing an authorization for a new competitive food and 
agricultural research facilities grant program 1862 
Institutions, 1890 Institutions, 1994 Institutions, Hatch 
experiment stations, McIntire-Stennis schools, veterinary 
schools under the animal and health disease formula program 
authorized in NARETPA, and Hispanic-serving institutions. 
Grants awarded have to support the national research purposes 
specified in section 1402, States with more than one 
institution must coordinate proposals, and the Secretary may 
require a match and may afford an evaluation preference for 
matches made with cash. (Section 704)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(72) Indirect Costs
      The Senate amendment amends section 1462 of NARETPA by 
striking the 19 percent cap on indirect costs for competitive 
agricultural research, education, and extension grants under 
the authority of the Under Secretary for REE and providing 
instead that the cap shall be the ``negotiated indirect cost 
rate established for an institution by the cognizant Federal 
audit agency for that institution'' and also adds a new 
subsection specifying that the cap does not apply to SBIR 
grants. (Section 714)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to exempt grants awarded competitively under 
the Small Business Act. (Section 7222)
(73) Research Equipment Grants
      The Senate amendment adds a new section 1462A to NARETPA 
providing an authorization for $50,000,000 per year for a 
competitive research equipment grants program for the 
acquisition of special purpose scientific research equipment 
for use in the food and agricultural sciences programs of 
colleges and universities and 1862 Institutions, 1890 
Institutions, 1994 Institutions, Hatch experiment stations, 
McIntire-Stennis schools, veterinary schools under the animal 
and health disease formula program authorized in NARETPA, and 
Hispanic-serving institutions. The maximum amount of a grant is 
$500,000 and the costs of acquisition or depreciation of 
equipment purchased with a grant may not be charged as an 
indirect cost. (Section 715)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize such sums as necessary and 
extend the authorization through 2007. (Section 7402)
(74) Availability of Competitive Grant Funds
      The Senate amendment adds a new section 1469A to NARETPA 
to provide that funds made available to the Secretary to carry 
out any competitive agricultural research, education, or 
extension grant programs under NARETPA or any other Act shall 
be available for obligation for two fiscal years. (Section 718)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7217)
(75) Joint Requests for Proposals
      The Senate amendment adds a new section 1473B to NARETPA 
to authorize the Secretary, in carrying out competitive 
agricultural research, education, or extension grant programs, 
to cooperate with other Federal agencies in issuing joint 
requests for proposals, awarding grants, and administering 
grants, for similar or related research, education, or 
extension projects or activities. Under the provision, with 
respect to issuing joint requests for proposals, making awards, 
and administering grants, the Secretary and a cooperating 
agency each are given authority to: (1) transfer funds to the 
other; (2) delegate authority to the other; (3) and choose 
which agencies post-award grant administration regulations and 
indirect rates shall apply to grant awards made by the 
Secretary and the cooperating agency. Funds transferred may 
only be used in accordance with the laws authorizing the 
appropriation and to make grants only to recipients eligible to 
receive grants under such laws. The Secretary and cooperating 
agencies may establish joint peer review panels exempt from 
FACA to evaluate grant proposals.
      Subsection (b) allows the Secretary to transfer funds to 
cooperating agencies subject to applicable laws.
      Subsection (c) allows the Secretary to delegate her 
authority to an appropriate coordinating agency.
      Subsection (d) provides the Secretary with authority to 
coordinate regulations and indirect rates with a cooperating 
agency.
      Subsection (e) allows joint peer review panels to be 
established. (Section 719)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to strike the authority to transfer 
appropriated funds between Federal Departments and Agencies and 
to prohibit authority to adopt ``negotiated'' indirect cost 
recovery rates. (Section 7403)
(76) Biosecurity Planning and Response Programs
      The Senate amendment subsection (a) adds a new subtitle 
N--Biosecurity to NARETPA. Chapter 1 of the new subtitle 
(sections 1484 through 1486) deals with agriculture 
infrastructure security. Authorizations are provided of such 
sums as necessary through 2006 to establish an Agriculture 
Infrastructure Security Fund Account (the Fund) in the Treasury 
and an Agriculture Infrastructure Security Commission. New 
section 1484 sets forth definitions of ``agricultural research 
facility,'' ``Commission,'' and ``Fund''.
      New section 1485 authorizes the establishment of the 
Fund. The Fund would be financed from any appropriations, 
proceeds from the sale of assets as provided for in this 
chapter, and gifts accepted as provided for in this chapter, 
and such amounts would remain available until expended. 
Subsection (b) sets forth the purposes of the Fund as to 
provide funding to protect and strengthen the Federal food 
safety and agricultural infrastructure that--(1) safeguards 
against animal and plant diseases and pests; (2) ensures the 
safety of the food supply; and (3) ensures sound science in 
support of food and agricultural policy. Amounts in the Fund 
may be used by the Secretary for: (1) the costs of planning, 
design, development, construction, acquisition, modernization, 
leasing, and disposal of facilities, equipment, and technology 
used by USDA in carrying out programs related to the purposes 
specified in subsection (b), notwithstanding the Federal 
Property and Administrative Services Act of 1949, or any other 
law that prescribes procedures for the procurement, use, or 
disposal of property or services by a Federal agency; (2) the 
costs of specialized services relating to the purposes 
specified in subsection (b); (3) the costs of cooperative 
arrangements (notwithstanding the Federal Grant and Cooperative 
Agreement Act) with State, tribal, and local governments, and 
other public and private entities to carry out programs related 
to the purposes specified in subsection (b); and (4) 
administrative costs at a rate of not more than 1 percent per 
fiscal year of amounts in the fund on October 1 of that fiscal 
year beginning in 2003. Amounts in the Fund may not be used to 
create any new full or part-time Federal employee positions. 
Notwithstanding the Federal Property and Administrative 
Services Act, the Secretary by sale may dispose of all or any 
part of any right or title in land, facilities, or equipment in 
the full control of the Department used for the purposes 
specified in subsection (b), with the exception of National 
Forest System land and land and facilities at the Beltsville 
Agricultural Research Center. The Secretary is authorized to 
accept gifts and bequests of funds property (real, personal, 
and intangible), equipment, services, and other in-kind 
contributions from any public or private source to carry out 
the purposes specified in subsection (b). For the purposes of 
gifts, the Secretary shall not consider a State, local, or 
tribal government, other public entity, or college or 
university as a prohibited source under USDA gift acceptance 
policies, and the Secretary may accept gifts from private 
entities or individuals that would be considered prohibited 
sources only if the Secretary determined it was in the public 
interest to accept such gifts.
      New section 1486 authorizes the Secretary to establish 
the Agriculture Infrastructure Security Commission to: (1) 
advise the Secretary on the uses of the Fund; (2) to review all 
agricultural research facilities for research importance and 
importance to agriculture infrastructure security, (3) to 
identify any agricultural research facility that should be 
closed, realigned, consolidated, or modernized to carry out the 
research agenda of the Secretary and to protect agriculture 
infrastructure security; (4) to develop recommendations 
concerning agricultural research facilities; and (5) to 
evaluate the agricultural research facilities acquisition and 
modernization system used by USDA and make recommendations for 
improvement to that system based on that evaluation. An 
``agricultural research facility'' as defined in new section 
1484 means a facility--``(A) at which agricultural research is 
regularly carried out or proposed to be carried out; and (B) 
that is--(i)(I) an Agricultural Research Service facility; (II) 
a Forest Service facility; or (III) an Animal and Plant Health 
Inspection Service facility; (ii) a Federal agricultural 
facility in the process of being planned or being constructed; 
or (iii) any other facility under the full control of the 
Secretary.'' The Commission is to use the 10-year strategicplan 
prepared by the Strategic Planning Task Force established under section 
4 of the Research Facilities Act to assist it in carrying out its 
duties. The Commission shall be composed of 15 voting members appointed 
by the Secretary that represent a balance of the public and private 
sectors and that have combined expertise in facilities development, 
modernization, construction, security, consolidation, and closure; 
plant diseases and pests; animal diseases and pests; food safety; 
biosecurity; the needs of farmers and ranchers; public health; State, 
local, and tribal government; and any other area related to agriculture 
infrastructure security, as determined by the Secretary. Nonvoting 
members of the Commission shall include the Secretary, four 
representatives appointed by the Secretary of HHS, 1 each from PHS, 
CDC, FDA, and NIH; one representative appointed by the Attorney 
General; one representative appointed by the Director of Homeland 
Security; and not more than four USDA representatives appointed by the 
Secretary. The term of office for Commission members is 4 years. The 
Commission is exempted from FACA, but open meetings and records are 
required with exceptions provided for purposes of national security. 
Not later than 240 days after enactment of this Act, and each June 1 
thereafter, the Commission shall submit a report of its findings and 
recommendations to the Committees on Agriculture and Appropriations of 
the House and Senate, and the Secretary shall provide a written 
response to that report within 90 days as to the manner and extent to 
which she will implement the recommendations made. The report, and the 
Secretary's response, shall be publicly available unless the Secretary 
or the Commission determine that the report or response, or any portion 
thereof, shall not be released in the interest of national security, 
and any portion so classified shall not be releasable under FOIA. 
Provision is made for compensation of non-Federal voting members at a 
rate equivalent to GS-15 and travel to be paid at the rate for a 
Federal employee. The Secretary shall provide the Commission with any 
personnel or other resources as the Secretary determines appropriate. 
New chapter 2 of the new subtitle N includes two new sections for other 
biosecurity programs.
      New section 1487 provides a special supplemental 
authorization of such sums as are necessary for biosecurity 
planning and response through 2006. Funds provided under 
section 1487 may be used in accordance with any authority 
available to the Secretary to carry out agricultural research, 
education, and extension activities (including competitive 
grants) necessary: (1) to reduce the vulnerability of the 
United States food and agricultural system to chemical or 
biological attack; (2) to continue joint research initiatives 
between the Agricultural Research Service, universities, and 
industry on counterbioterrorism efforts; (3) to make 
competitive grants to universities and qualified research 
institutions for research on counterbioterrorism; and (4) to 
counter or otherwise respond to chemical or biological attack.
      New section 1488 provides an authorization of $100 
million per year through 2006 for a competitive research 
facilities construction grants program for land-grant colleges 
and universities to enhance the security of agriculture in the 
United States against threats posed by bioterrorism. To be 
eligible to receive a grant, a land-grant institution must have 
(1) demonstrated expertise in the area of animal and plant 
diseases; (2) substantial animal and plant diagnostic 
laboratories; and (3) well-established working relationships 
with the agricultural industry and farm and commodity 
organizations. In making grants, the Secretary shall give 
priority to institutions with demonstrated expertise in (1) 
animal and plant disease prevention; (2) pathogen and toxin 
mitigation; (3) cereal disease resistance; (4) grain milling 
and processing; (5) livestock production practices; (6) vaccine 
development; (7) meat processing; (8) pathogen detection and 
control; or (9) food safety. An institution may not receive 
more than $10,000,00 of grants under this section per fiscal 
year, and the Federal share of any construction project shall 
not exceed 50 percent. Finally, subsection (b) of section 723 
of the bill includes a sense of Congress that funding for ARS, 
APHIS, and other USDA agencies with biosecurity 
responsibilities should be increased as necessary to improve 
the capacity of the agencies to conduct research and analysis 
of, and respond to, bioterrorism and animal and plant diseases. 
(Section 723)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment deleting the Agriculture Infrastructure 
Security Fund and the Agriculture Infrastructure Security 
Commission. The Conference adopts the Senate program for 
agriculture bioterrorism research facilities with an amendment 
authorizing grants for expansion and security upgrades of 
agriculture research facilities. (Section 7221)
      The Managers encourage the Secretary to give priority in 
awarding grants for the expansion of biosecurity research 
facilities to those universities or institutions which have 
demonstrated expertise in the area of animal and plant 
diseases; substantial animal and plant diagnostic laboratories; 
and well-established working relationships with the agriculture 
industry and farm and commodity organizations.
(77) Rural Electronic Commerce Extension Program
      The Senate amendment adds a new section 1670 to the FACT 
Act providing an authorization for a Rural Electronic Commerce 
Extension Program. The Secretary would be required to establish 
within CSREES an Office of Rural Electronic Commerce to carry 
out this program. The purposes of the program are: (1) to 
expand and enhance electronic commerce practices and technology 
to be used by small businesses and microenterprises in rural 
areas; (2) disseminate information and expertise through a 
cooperative extension service clearinghouse in rural areas; (3) 
disseminate management, scientific, engineering, and technical 
information to small businesses in rural areas through the 
extension program; and (4) use, when appropriate, the 
expertise, technology, and capabilities of other organizations, 
including State and local governments, Federal agencies, 
institutions of higher education, nonprofit organizations, 
small businesses and microenterprises that have experience in 
electronic commerce practice and technology, and the 
development centers established under this section. In carrying 
out this program, the Secretary shall: (1) provide leadership, 
support, and coordination for the program; (2) establish 
policies, practices, and procedures to assist rural communities 
in the adoption and use of electronic commerce techniques; (3) 
identify and strengthen existing mechanisms designed to assist 
rural areas in the adoption and use of electronic commerce 
techniques; (4) provide grants to fund projects and activities 
under the program; and (5) establish a clearinghouse system for 
States, communities, and businesses to obtain information on 
best practices, technology transfer, training, education, 
adoption, and use of electronic commerce in rural areas.
      The Secretary shall make grants to the North Central 
Regional Center for Rural Development, the Northeast Regional 
Center for Development, the Southern Rural Development Center, 
and a development center in the Western Region, as determined 
by the State Extension Program Directors in the Western Region, 
to (1) assemble regionalexpertise, and develop innovative 
education programs, that may be adapted and refined by State extension 
programs; (2) train State-based cooperative extension agents to deliver 
rural electronic commerce education programs; and establish networks 
among universities, local governments, and private industries to focus 
on regional economic issues.
      The Secretary also is authorized to make competitive 
grants to cooperative extension programs at land-grant 
institutions, or consortia of such institutions), to develop 
and facilitate nationally innovative rural electronic commerce 
business strategies, and to assist small businesses and 
microenterprises in identifying, adapting, implementing, and 
using electronic commerce business practices and technologies. 
The provision also includes selection criteria for grant 
awards. As a condition of funding, during the years of funding 
under a grant the recipient must provide from non-Federal 
sources 50 percent (25 percent if the grant recipient serves 
low-income or minority-owned businesses or microenterprises of 
the estimated capital and annual operating and maintenance 
costs of the extension program, and after expiration of the 
grant funding period the recipient must provide 100 percent of 
such costs from non-Federal sources. Awards are limited to 
$900,000 for an individual land-grant institution, either 
individually or as a member of a consortium, and funds awarded 
to a consortium must be shared equally among its members. The 
provision also establishes an evaluation panel and process to 
evaluate projects and activities funded under the program 
beginning one year after grant award. The Secretary is required 
to report to the Agriculture Committees on activities under 
this section 2 years after the date of enactment.
      The program is authorized at $60,000,000 each fiscal year 
through 2006, with $20,000,000 of that set aside for funding 
the regional development centers. The Secretary is authorized 
to use up to 2 percent of funds made available for 
administrative costs to carry out this section. (Section 733)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment clarifying the Senate provision and expanding 
the eligibility for grants to include colleges and universities 
with agricultural or rural development programs. (Section 6202)
      The Committee authorizes $60 million to establish a Rural 
Electronic Commerce Extension Program within the Cooperative 
State Research, Education, and Extension Service. Electronic 
commerce represents an opportunity for small businesses and 
micro enterprises in the domestic and international market, but 
there is currently no mechanism available in rural areas to 
enable individuals or organizations to both learn and take 
advantage of innovative technologies and business practices. 
The United States has a strong interest in ensuring that small 
businesses and micro enterprises in rural areas participate in 
electronic commerce as it will promote productivity and 
economic growth throughout the United States. The specific 
objectives of the program are: (1) expand and enhance 
electronic commerce practices and technology to be used by 
small businesses and micro enterprises in rural areas; (2) 
disseminate information and expertise through a cooperative 
extension service clearinghouse; (3) disseminate management, 
scientific, and technical information to small businesses and 
micro enterprises in rural areas through the extension program, 
and (4) use, when appropriate, the expertise, technology, and 
capabilities of other institutions and organizations--examples 
being state and local governments, Federal departments and 
agencies, institutions of higher education, non-profit 
organizations, small businesses and micro enterprises with 
previous experience in this area, and regional development 
centers--to achieve the stated objectives. The program will be 
competitive and merit-based, with grants being provided to 
cooperative extension service programs at land-grant colleges 
and universities (or consortia of land-grant colleges and 
universities) and to colleges and universities with agriculture 
or rural development programs. Using language in the 
legislation as guidelines, the Cooperative State Research, 
Education, and Extension Service shall establish appropriate 
criteria for the submission, evaluation, and funding of 
applications for grants to implement projects and activities 
for the program and shall be responsible for evaluating, 
ranking, and selecting grant applications.
(78) Organic Agricultural Research and Extension Initiative
      The Senate amendment amends section 1672B of the FACT Act 
to require the Secretary to consult with the National Organics 
Standards Board as well as the REE Board in making grants, and 
to add the following purposes for which grants may be awarded:
            ``(4) determining desirable traits for organic 
        commodities using advanced genomics, field trials, and 
        other methods;
            ``(5) pursuing classical and marker-assisted 
        breeding for publicly held varieties of crops and 
        animals optimized for organic systems;
            ``(6) identifying marketing and policy constraints 
        on the expansion of organic agriculture; and
            ``(7) conducting advanced on-farm research and 
        development that emphasizes observation of, 
        experimentation with, and innovation for working 
        organic farms, including research relating to 
        production and to socioeconomic conditions.'' (Section 
        736, 231, 232)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to include breeding, marketing, and policy 
research as priority areas and include $3 million in new 
mandatory funding from 2003 through 2007. (Section 7218)
      It is the intent of the Managers that these funds shall 
be allocated for high priority aspects of organic agricultural 
systems research, education, and extension. Priority concerns 
encompass biological, physical, and social sciences (including 
economics). The authorization of these funds shall not preclude 
or preempt the allocation of funds for other organic farming 
research, education, and extension programs under any other 
competitive or special grants programs, integrated activity, or 
formula funding. Rather, it is the intent of the Managers that 
organic agriculture be recognized as a legitimate priority of 
all Research, Education, and Economics programs, and should be 
recognized accordingly in appropriate USDA Research, Education 
and Extension program plans and requests for proposals.
(79) Grants for Youth Organizations
      The Senate amendment amends AREERA by adding a new 
section 410 providing $8 million in mandatory money from CCC 
(to remain available until expended), and such sums as 
necessary for 2002 through 2006, for the Secretary, acting 
through CSREES, to make grants to the Girl Scouts, the Boy 
Scouts, the National 4-H Council, and the National FFA 
organization to establish pilot projects to expand the programs 
carried out by the organizations in rural areas and small 
towns, and for purposes of the 4-H Centennial under Pub. Law 
107-19. (Section 749)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007.
(80) Senior Scientific Research Service
      The Senate amendment adds a new section to subtitle B of 
AREERA establishing within USDA a Senior Scientist Research 
Service of not more than 100 members. To be eligible to be 
appointed to the Service by the Secretary, an individual must 
(1) have conducted outstanding research in the field of 
agriculture or forestry, (2) have a PhD, and meet OPM 
qualification standards for a GS-15 position. The Secretary may 
appoint and employ a member of the Service with regard to 
Federal civil service laws regarding competitive service 
appointments, retention preferences, performance appraisal and 
performance actions, pay rates and classification, and adverse 
actions, except that a member of the Service will have the same 
rights as a GS-15 appointee to appeal to the Merits Systems 
Protection Board or the Office of Special Counsel. The 
Secretary must develop a performance appraisal system for the 
Service that provides for systematic appraisals and encourages 
excellence. The Secretary shall set compensation in a range 
between a GS-15 and an ES-I appointment, with an exception to 
ES-I maximum for a rate approved by the President by law. A 
member appointed to the Service from a prior position at an 
institution of higher education who retains the right to make 
contributions to that institution's retirement system may 
request that the Secretary contribute an amount not to exceed 
10 percent of his pay to that system, but such a member shall 
not earn service credit under Federal law for time served in 
the Service except for purposes crediting annual leave. Any 
person involuntarily separated from the Service without cause 
may be appointed by the Secretary to a career appointment at 
the GS-15 level in the competitive service, unless that person 
was not a career appointee in the civil service of excepted 
service prior to his appointment to the Service, in which case 
that person's appointment following separation shall be to the 
excepted service for a term not to exceed 2 years. (Section 
750B)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7219)
(81) Carryover
      The Senate amendment amends the Hatch Act to allow a 
State agricultural institution to carryover the balance of any 
fiscal year's allocation of funding remaining at the end of the 
fiscal year to the next fiscal year, and if that balance is not 
spent in the succeeding fiscal year, an amount equivalent to 
that remaining shall be deducted from the following fiscal year 
allocation to that State. (Section 751)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7202)
(82) Reporting of Technology Transfer Activities
      The Senate amendment amends the Hatch Act to require a 
State to include in its plan of work a description of the 
technology transfer activities conducted with respect to 
federally-funded agricultural research. (Section 752)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers expect the Secretary to require land-grant 
universities to include descriptions of technology transfer 
activities in any annual or other regular reports made to the 
Secretary regarding research activities funded by the 
Department.
(83) Compliance With Multistate and Integration Requirements
      The Senate amendment amends the Hatch and Smith-Lever Act 
requirements for multistate extension and integrated research 
and extension activities to require:
      (1) that in order to receive Smith-Lever Act funding a 
State must expend an amount equal to not less than 25 percent 
of Smith-Lever Act funds received by the State in a prior year 
on multistate activities, and in determining compliance with 
that requirement the Secretary shall include all cooperative 
extension funds expended by the State in the prior year, 
including Federal, State, and local funds; and
      (2) that in order to receive Hatch and Smith-Lever Act 
funding, a State must expend an amount equal to not less than 
25 percent of Smith-Lever Act and Hatch Act of 1887 funds 
received by the State in a prior year on integrated research 
and extension activities, and in determining compliance with 
that requirement the Secretary shall include all cooperative 
research and extension funds expended by the State in the prior 
year, including Federal, State, and local funds. This amendment 
would be effective October 1, 2002. (Section 753)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(84) Authorization Percentages for Research and Extension Formula Funds
      The Senate amendment subsection (a) amends section 1444 
of NARETPA to increase the authorization level for 1890 
Institutions extension appropriations from not less than 6 
percent of the amount appropriated annually for extension at 
the 1862 Institutions under the Smith-Lever Act to not less 
than 15 percent of the amount appropriated annually under the 
Smith-Lever Act, and strikes obsolete language. Subsection (b) 
amends section 1445 of NARETPA to increase the authorization 
level for 1890 Institutions research appropriations from not 
less than 15 percent of the amount appropriated annually for 
research at the 1862 Institutions under the Hatch Act of 1887 
to not less than 25 percent of the amount appropriated annually 
under the Hatch Act of 1887, and strikes obsolete language. 
(Section 757)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7203)
    It is the intent of the Managers that increased formula 
funding for 1890 institutions be the mechanism for reaching 
this increased ratio, rather than a redistribution of the 
current limited formula funds.
(85) Carryover
      The Senate amendment provides that in the same manner as 
the amendment made by section 751 for 1862 Institutions, this 
provision amends section 1445 of NARETPA to allow an 1890 
Institution to carryover the balance of any fiscal year's 
allocation of funding remaining at the end of the fiscal year 
to the next fiscal year, and if that balance is not spent in 
the succeeding fiscal year, an amount equivalent to that 
remaining shall be deducted from the following fiscal year 
allocation to that 1890 Institution. (Section 758)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7204)
(86) Reporting of Technology Transfer Activities
      The Senate amendment provides that in the same manner as 
the amendment made by section 752 for 1862 Institutions, this 
section amends section 1445 of NARETPA to require an 1890 
Institution to include in its plan of work a description of the 
technology transfer activities conducted with respect to 
federally-funded agricultural research. (Section 759)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers expect the Secretary to require land-grant 
universities to include descriptions of technology transfer 
activities in any annual or other regular reports made to the 
Secretary regarding research activities funded by the 
Department.
(87) Priority-Setting Process
      The Senate amendment amends requirement in section 
102(c)(1) of AREERA for land-grant colleges to obtain 
stakeholder input to require that the process for obtaining 
that input ``reflects transparency and opportunity for input 
from producers of diverse agricultural crops and diverse 
geographic and cultural communities.'' (Section 771)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(88) Termination of Certain Schedule A Appointments
      The Senate amendment provision provides for the 
termination 60 days after enactment of Schedule A, dual 
Federal-State appointments, of employees working in 
agricultural extension programs at 1862 Institutions, 1890 
Institutions, and the University of the District of Columbia. 
An individual whose appointment is terminated but who remains 
employed in the agricultural extension program will continue to 
be eligible, to the same extent as before enactment of this 
provision, to participate in the Federal Employee Health 
Benefits Program, the Federal Employee Group Life Insurance 
Program, the Civil Service Retirement System, the Federal 
Employee Retirement System, and the Thrift Savings Plan, and 
will continue to receive Federal civil service employment 
credit to the same extent the individual was receiving that 
credit prior to enactment of this provision, as long as the 
employing college or university continues to fulfill the 
administrative and financial responsibilities (including making 
agency contributions) associated with providing those benefits. 
If an individual changes employment from an agricultural 
extension program at one institution to that in another, the 
individual will continue to receive such benefits as long as 
the second institution fulfills its administrative and 
financial responsibilities and the second institution had 
employed another person in the same position within 120 days 
before the date of employment of the individual. (Section 772)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment changing the effective date to January 31, 
2003, and adding ``federal long-term care benefits'' to the 
list of covered benefits. (Section 7220)
(89) Risk Management Education for Beginning Farmers and Ranchers
      The Senate amendment amends the risk management education 
grant program in section 524(a)(3) of the Federal Crop 
Insurance Act to give the Secretary authority to target grants 
to programs specifically for beginning farmers and ranchers, 
and makes a technical amendment to section 524(b) of that Act. 
(Section 785)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(90) Joint Subcommittee on Aquaculture
      The Senate amendment extends authorization for National 
Aquaculture Act of 1980 through 2006. (Section 786)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the authorization through 2007. 
(Section 7139)

            Subtitle F--New Authorities (Sections 791-798D)

(91) Definitions
      The Senate amendment defines ``Department'' and 
``Secretary'' for purposes of the subtitle. (Section 791)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7401)
(92) Regulatory and Inspection Research
      The Senate amendment authorizes the Secretary to use a 
public or private source, and requires the Secretary to use the 
most practicable source to provide timely cost-effective means 
of providing the research, to meet the urgent applied research 
needs of an inspection or regulatory agency of the Department 
(defined as APHIS, FSIS, GIPSA, and AMS) in carrying out 
agricultural marketing programs; programs to protect the animal 
and plant resources of the United States; and education 
programs or special studies to improve the safety of the food 
supply of the United States. Provision also requires the 
Secretary to establish guidelines to prevent any conflict of 
interest that may arise if an inspection or regulatory agency 
obtains research from a Federal agency the work or technology 
transfer efforts of which are funded in part by an industry 
subject to the jurisdiction of the inspection or regulatory 
agency. (Section 792)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(93) Emergency Research Transfer Authority
      The Senate amendment, in addition to any transfer 
authority she may have, authorizes the Secretary to transfer up 
to 2 percent of any appropriation account of the Department for 
agricultural research, extension, marketing, animal and plant 
health, nutrition, food safety, nutrition education, or 
forestry programs to any other appropriation account of the 
Department for emergency research, extension, or education 
activities needed to address imminent threats to animal and 
plant health, food safety, or human nutrition, including 
bioterrorism. Such transfers are limited by three conditions: 
(1) the Secretary must determine the need is so imminent that 
the need will not be timely met by annual, supplemental, or 
emergency appropriations; (2) the aggregate total of such 
transfers cannot exceed $5 million per fiscal year; and (3) 
transfers must be approved byOMB. (Section 793)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(94) Review of Agricultural Research Service
      The Senate amendment requires the Secretary to conduct a 
review of the purpose, efficiency, effectiveness, and impact on 
agricultural research of ARS, using persons outside the 
Department, with a report to be submitted to the Agriculture 
Committees by September 30, 2004; and provides that Secretary 
shall use no more than 0.1 percent of appropriations made 
available to ARS in fiscal years 2002 through 2004 to carry out 
the study. (Section 794)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment creating a task force appointed by the 
Secretary to conduct a review of ARS and examining the merits 
of establishing National Institutes focused on disciplines 
important to the progress of food and agriculture sciences. The 
report is to be submitted one year after enactment of this 
legislation. (Section 7404)
      The sciences related to plant biology and agriculture 
have contributed greatly to human welfare. The gains in the 
next decades have the potential to be astonishing. The 
challenge is to establish appropriate mechanisms, with adequate 
funding, to ensure that the United States is home to highest 
quality research and is able to maximize its benefits to its 
economy. In 1999, food and agriculture accounted for 16.4% of 
the GDP (or $1.5 trillion) yet attracted less than two percent 
of the federal research budget. In real terms, the U.S. now 
spends less on food and agricultural research than was spent in 
1978.
      The Managers believe a new model for plant and 
agricultural research might be patterned after the highly 
successful biomedical research conducted by the National 
Institutes of Health (NIH). The mechanisms employed by NIH and 
the National Science Foundation (NSF) have advanced science of 
the highest quality, attracted the best young scientists to 
careers in research and teaching, and provided a stream of 
discoveries that has been rapid and highly beneficial to 
society. The Managers intend that any new research institute 
would supplement, not supplant, the successful programs of USDA 
and other existing federal research programs. As such, the 
conferees urge the Secretary to place high priority in 
establishing a task force of members, the majority of which 
should be from the private sector, including institutions of 
higher education, that have extensive background and 
preeminence in the field of plant and agricultural sciences 
research. In addition, the Secretary is urged to designate a 
Chairperson that has significant leadership experience in 
educational and research institutions and in depth knowledge of 
the research enterprises of the United States in leading the 
evaluation of the merits of establishing a National Institutes 
for Plant and Agricultural Sciences and provide recommendations 
to the Committees. In addition, the task force is charged with 
conducting a separate review of the purpose, efficiency, 
effectiveness, and impact of agricultural research conducted by 
the Agricultural Research Service. Together, these two separate 
reports should provide a roadmap for the future of the federal 
government concerning plant and agriculture research and the 
potential benefits that could be realized.
(95) Technology Transfer for Rural Development
      The Senate amendment directs the Secretary, through RBS 
and ARS, to establish a program to promote USDA tech transfer 
opportunities to rural businesses and residents through a 
website featuring information on such technologies, an annual 
joint program for State economic development directors and 
Department rural development directors regarding such 
opportunities, and programs at each ARS lab at least 
biennially, with participation of other Federal labs as 
appropriate. Funding for the program is to come from amounts 
available to ARS and amounts available to RBS for salaries and 
expenses. (Section 795)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers expect the Rural Business-Cooperative 
Service to promote to rural businesses and residents the 
availability of technology transfer opportunities with the 
Agricultural Research Service (ARS), research facilities of the 
Forest Service, and other research activities of the 
Department. The Managers also expect ARS to continue its 
efforts to promote and publicize technology transfer 
opportunities available to the private sector, and especially 
those opportunities that would provide employment in rural 
areas.
(96) Beginning Farmer and Rancher Development Program
      The Senate amendment provides $15 million in mandatory 
money in each of fiscal years 2002 through 2006 for the 
Secretary to carry out a beginning farmer and rancher 
development program to provide training, education, outreach, 
and technical assistance initiatives for beginning farmers or 
ranchers. A ``beginning farmer or rancher'' is defined as a 
person that has not operated a farm or ranch, or operated one 
for less than 10 years, and meeting such other criteria as the 
Secretary prescribes.
      The program has three parts:
      (1) The Secretary may make competitive grants to new and 
established local and regional training, education, outreach, 
and technical assistance initiatives for beginning farmers or 
ranchers, including programs and services (as appropriate) 
relating to: (A) mentoring, apprenticeships, and internships; 
(B) resources and referral; (C) assisting beginning farmers or 
ranchers in acquiring land from retiring farmers and ranchers; 
(D) innovative farm and ranch transfer strategies; (E) 
entrepreneurship and business training; (F) model land leasing 
contracts; (G) financial management training; (H) whole farm 
planning; (I) conservation assistance; (J) risk management 
education; (K) diversification and marketing strategies; (L) 
curriculum development; (M) understanding the impact of 
concentration and globalization; (N) basic livestock and crop 
farming practices; (O) the acquisition and management of 
agricultural credit; (P) environmental compliance; (Q) 
information processing; and (R) other similar subject areas. 
Entities eligible to receive grants include collaborative 
State, local, tribal or regionally-based networks or 
partnerships of private or public entities including State 
cooperative extension services, Federal, State, and tribal 
agencies, community-based and nongovernmental organizations, 
colleges and universities (including community colleges) and 
others as determined by the Secretary. Grants are for 3 years, 
are subject to a 25% matching requirement, and not less than 25 
percent of funds used to carry out the grant program must be 
set aside to support programs that address needs of limited 
resource beginning farmers and ranchers, socially disadvantaged 
beginning farmers and ranchers, and farmworkers desiring to 
become farmers or ranchers.
      (2) The Secretary is authorized to establish teams to 
develop curricula and conduct educational programs and 
workshops for beginning farmers and ranchers tailored to 
diverse crop and regional areas. In establishing such teams, 
the Secretary can use the services of specialists in beginning 
farmer and rancher training and USDA employees who can offer 
program expertise. The Secretary is authorized to enter into 
cooperative agreements with the same entities that are eligible 
for the grants to carry out team programs.
      (3) The Secretary is required to establish an online 
clearinghouse to make curricula, training materials, and online 
courses available for beginning farmers and ranchers.
      The Secretary is required to obtain stakeholder input 
from beginning farmers and ranchers; national, state, tribal, 
and local organizations or other persons with expertise in 
operating beginning farmer and rancher programs; and the 
Advisory Committee on Beginning Farmers and Ranchers.
      The provision allows for participation of non-beginning 
farmers and ranchers in these programs to the extent that the 
Secretary determines it will not detract from the primary 
purpose of beginning farmer and rancher education.
      In addition to the mandatory funding provided, the 
Secretary is authorized to collect and use fees for the 
delivery of programs or workshops by beginning farmer and 
rancher education teams or by the online clearinghouse, and the 
Secretary is authorized to receive contributions under 
cooperative agreements for program delivery by education teams. 
Four percent of funds used for grants may be used by the 
Secretary for administrative costs. Funds provided remain 
available for obligation for two fiscal years. (Section 796)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment making the 4% set-aside for administrative 
costs apply only to competitive grants appropriations and 
making the mandatory funding subject to appropriations. 
(Section 7405)
(97) Sense of Congress Regarding Doubling of Funding for Agricultural 
        Research
      The Senate amendment expresses sense of Congress that 
food and agricultural research funding should be doubled over 
next five years. (Section 797)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7406)
(98) Rural Policy Research
      The Senate amendment provides $15 million in mandatory 
money in each of fiscal years 2002 through 2006 for the 
Secretary to make competitive research grants for applied and 
outcome oriented research and policy research and analysis of 
rural issues relating to: (1) rural sociology; (2) effects of 
demographic change, including aging population, outmigration, 
and labor resources; (3) needs of groups of rural citizens, 
including senior citizens, families, youth, children, and 
socially disadvantaged individuals; (4) rural community 
development; (5) rural infrastructure, including water and 
waste, community facilities, telecommunications, electricity, 
and high-speed broadband services; (6) rural business 
development, including credit, venture capital, cooperatives, 
value-added enterprises, new and alternative markets, farm and 
rural enterprise formation, and entrepreneurship; (7) farm 
management, including strategic planning, business and 
marketing opportunities, risk management, natural resources and 
environmental management, organic and sustainable farming 
systems, and intergenerational transfer strategies; (8) rural 
education and extension programs, including methods of 
delivery, availability of resources, and use of distance 
learning; and (9) rural health, including mental health, on-
farm safety, and food safety.
      The Secretary must seek stakeholder input in making 
grants, and ensure that grants will provide high-quality 
research of use to public policymakers and private entities in 
making decisions that affect development in rural areas.
      Eligible grantees include individuals, colleges and 
universities, a State cooperative institution, a community 
college, a nonprofit organization, institution, or association, 
a business association, or a regional partnership of public and 
private entities. Grant terms may be up to 5 years. The 
Secretary may establish a matching requirement, but a grant to 
a business association is subject to a 100 percent match. Up to 
four percent of funds may be used by the Secretary for 
administrative costs. Funds provided remain available for two 
fiscal years. (Section 798)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(99) Priority for Farmers and Ranchers Participating in Conservation 
        Programs
      The Senate amendment requires the Secretary, in carrying 
out new on-farm research or extension programs or projects 
authorized by this bill, amendments made by this bill, and any 
later enacted law, to give priority to carrying out such 
programs or projects using farms and ranchers of farmers and 
ranchers that participate in Federal agricultural conservation 
programs. (Section 798A)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(100) Organic Production and Market Data Initiatives
      The Senate amendment requires the Secretary to ensure 
that segregated data on the production and marketing of organic 
agricultural products is included in the ongoing baseline of 
data collection regarding agricultural production and 
marketing. (Section 798B)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7407)
(101) Organically Produced Product Research and Education
      The Senate amendment requires the Secretary, in 
consultation with the Advisory Committee on Small Farms, to 
submit a report to the Agriculture Committees by December 1, 
2004 on:
      (1) the impact on small farms of the implementation of 
the national organic program; and (2) the production and 
marketing costs to producers and handlers associated with 
transitioning to organic production. (Section 798C)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(102) International Organic Research Collaboration
      The Senate amendment requires the Agricultural Research 
Service and the National Agricultural Library to facilitate 
access by research and extension professionals to organic 
research conducted outside the United States. (Section 798D)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7408)
(103) Report on Producers and Handlers of Organic Agricultural Products
      The Senate amendment provides for a report to be 
submitted not later than 1 year after funds are made available 
to carry out this section. (Section 798E)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Section 7409)

                    Title VIII--Forestry Initiatives

(1) Repeal of Forestry Incentives Program (FIP) and Stewardship 
        Incentive Program (SIP)
      The House bill repeals the Forestry Incentives Program 
and the Stewardship Incentives Program. (Sec. 801)
      The Senate amendment reauthorizes the Forestry Incentives 
Program through 2006. The Senate amendment contains no 
comparable provision regarding the Stewardship Incentives 
Program. (Sec. 804)
      The Conference substitute adopts the House provision. 
(Sec. 801)
(2) Establishment of New Cost Share Assistance Program
      The House bill amends the Cooperative Forestry Assistance 
Act of 1978 by inserting a new section 4. (Sec. 802)
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by inserting a new program after section 
6. (Sec. 806)
      The Conference substitute adopts the House provision. 
(Sec. 802)
(3) Findings
      The House bill sets forth Congressional findings with 
respect to dependence on private non-industrial forest lands, 
demand for assistance from owners of non-industrial private 
forest land, environmental benefits of good stewardship of 
forest land, economic benefits resulting from non-industrial 
private forest lands, wildfire threats, and development 
pressure faced by owners of non-industrial private forest land. 
(Sec. 802(a))
      The Senate amendment sets forth Congressional findings 
with respect to dependence on private non-industrial forest 
lands, demand for assistance from owners of non-industrial 
private forest land, environmental benefits of good stewardship 
of forest land, economic benefits resulting from non-industrial 
private forest lands, wildfire threats, development pressure 
faced by owners of non-industrial private forest land, federal 
and state cooperation in forest fire prevention, difficulty for 
owners of non-industrial private forest land to invest in the 
management of long-rotation forest stands, and the benefits of 
comprehensive, multi-resource planning assistance to 
landowners. (Sec. 806(a)(1))
      The Conference substitute deletes both provisions.
(4) Purpose
      The House bill describes the purpose of the new section 
as: (1) strengthening the commitment of the Secretary to 
sustainable forest management, and (2) establishing a 
coordinated and cooperative federal, state and local 
sustainable forestry program for non-industrial private forest 
land. (Sec. 802(b))
      The Senate amendment describes the purpose of the new 
section as: (1) strengthening the commitment of the Secretary 
to sustainable forest management, and (2) establishing a 
coordinated and cooperative federal, state and local 
sustainable forestry program for non-industrial private forest 
land. (Sec. 806(a)(2))
      The Conference substitute adopts the Senate provision. 
(Sec. 806(a)(2))
(5) Forest Land Enhancement Program
      The House bill establishes a Forest Land Enhancement 
Program by inserting a new section 4 in the Cooperative 
Forestry Assistance Act of 1978. (Sec. 802(c))
      The Senate amendment establishes a Sustainable Forest 
Management Program by inserting a new section 6A in the 
Cooperative Forestry Assistance Act of 1978. (Sec. 806(b))
      The Conference substitute adopts the House provision. 
(Sec. 802 (c))
(6) Definitions
      The House bill defines: (1) non-industrial private forest 
land, (2) owner, (3) Secretary, and (4) state forester. (Sec. 
802)
      The Senate amendment defines: (1) committee, (2) Indian 
tribe, (3) program, (4) non-industrial private forest land, (5) 
owner, and (6) state forester. (Sec. 806)
      The Conference substitute adopts the House provision with 
amendment to include definitions for the terms Committee and 
Indian Tribe.
(7) Establishment
      The House bill (1) directs the Secretary to establish a 
Forest Land Enhancement Program (FLEP) for the purposes of 
providing financial, technical, educational, and related 
assistance to State Foresters to assist private landowners in 
actively managing their land through the utilization of 
management expertise, financial assistance and educational 
programs; (2) directs the Secretary to administer the program 
through NRCS; (3) directs the Secretary to implement the 
program in coordination with the State Foresters. (Sec. 802)
      The Senate amendment (1) directs the Secretary to 
establish a Sustainable Forestry Management Program for the 
purposes of providing financial assistance to State foresters, 
and encouraging the long-term sustainability of non-industrial 
private forest land in U.S. by assisting owners in actively 
managing land and related resources through the use of State, 
Federal, and private sector resource management expertise, 
financial assistance, and educational programs; (2) directs the 
Secretary to administer the program through the State 
Foresters, in coordination with the Committees, and in 
consultation with Federal, State, and local natural resource 
management agencies, institutions of higher education and a 
broad range of private sector interests. (Sec. 806)
      The Conference substitute adopts the Senate provision. 
(Sec. 806)
(8) Program Objectives
      The House bill directs the Secretary to target resources 
to achieve a list of objectives including: (1) making 
investments in practices to establish, restore, protect, 
manage, maintain and enhance the health and productivity of 
non-industrial private forest land, (2) ensuring that 
afforestation, reforestation, improvement of poorly stocked 
stands, timber stand improvement, practices necessary to 
improve seedling growth and survival, and growth enhancement 
practices occur where needed, (3) reducing the risks and 
helping to restore, recover and mitigate damage caused by fire, 
insects, invasive species, disease, and weather, (4) increasing 
and enhancing carbon sequestration, (5) enhancing 
implementation of agro forestry practices, and (6) maintaining 
and enhancing the forest land base and leveraging State and 
local financial and technical assistance. (Sec. 802)
      The Senate amendment directs the Secretary to allocate 
the resources among the states (in accordance with the 
distribution formula described below) to encourage: (1) the 
investment in practices to establish, restore, protect, manage, 
maintain, and enhance the health and productivity of non-
industrial private forest land, and (2) the occurrence of 
afforestation, reforestation, improvement of poorly stocked 
stands, practices necessary to improve seedling growth and 
survival, and growth enhancement practices as needed to enhance 
and sustain the long-term productivity of timber and non-timber 
forest resources to meet public demand for forest resources, 
provide environmental benefits, protect riparian buffers and 
wetlands, maintain and enhance fish and wildlife habitat, 
enhance soil, air and water quality, reduce soil erosion and 
maintain soil quality, maintain and enhance the forest land 
base, reduce the threat of catastrophic wildfires, and preserve 
aesthetic quality and opportunities for outdoor recreation. 
(Sec. 806)
      The Conference substitute adopts the House provision with 
minor amendments.
(9) Eligibility
      The House bill makes an owner of non-industrial private 
forest land eligible for cost-share assistance if the owner: 
(1) agrees to develop and implement a forest plan developed in 
coordination with and/or approved by the State forester, state 
official, or private sector program in consultation with the 
State Forester, (2) agrees to implement the plan for a period 
of 10 years unless the State Forester approves a modification 
to such plan, and (3) meets acreage restrictions determined by 
the State Forester in conjunction with the State Forest 
Stewardship Coordinating Committee. (Sec. 802)
      The Senate amendment (a) makes an owner of non-industrial 
private forest land eligible for cost-share assistance if the 
owner: (1) develops a management plan that addresses site-
specific activities and practices and is approved by the State 
Forester, (2) agrees to implement the plan for at least 10 
years unless the State Forester approves a modification to the 
management plan, and (3) owns not more than 1,000 acres; and 
(b) creates an exception to the above acreage restriction 
requirement for owners with more than 1,000 acres but less than 
5,000 acres where the Secretary, in consultation with the State 
forester, determines that significant public benefits will 
accrue as a result of the owner's participation. (Sec. 806)
      The Conference substitute adopts the House provision with 
minor changes.
(10) State Priorities
      The House bill allows the Secretary to develop State 
priorities for cost-share assistance in consultation with the 
State Forester and the State Forest Stewardship Coordinating 
Committee. (Sec. 802)
      The Senate amendment (1) directs the State Forester and 
the Committee of the State to develop and submit to the 
Secretary a 5-year plan that describes the funding priorities 
of the state and makes this requirement a condition of receipt 
of funding under the Sustainable Forest Management program; (2) 
requires the state priority plan to include documentation of 
public participation in the development of the plan; (3) 
requires the Secretary to ensure, to the maximum extent 
practicable, that the need for expanded technical assistance 
programs for owners is met in the annual funding priorities of 
each state. (Sec. 806)
      The Conference substitute adopts the Senate provision 
with minor changes.
(11) Development of Plan
      The House bill makes a landowner eligible for cost-share 
assistance for the development of a forest management plan 
required to participate in the FLEP. (Sec. 802)
      The Senate amendment requires a landowner to submit a 
plan to the State Forester that is prepared by a professional 
resource manager, identifies and describes projects and 
activities to protect certain environmental qualities in a 
manner that is compatible with the objectives of the owner, 
addresses criteria established by the State and Committee, and 
applies to the portion of the land on which any project or 
activity funded under the program will be carried out. In 
addition, the landowner must also agree that all projects and 
activities conducted on the land will be consistent with the 
management plan.(Sec. 806)
      The Conference substitute adopts the Senate provision 
with minor changes. (Sec. 806)
(12) Approved Activities
      The House bill directs the Secretary, in consultation 
with the State Forester and State Forest Stewardship 
Coordinating Committee, to develop a list of approved forest 
activities and practices that will be eligible for cost-share 
assistance under the FLEP within each state. In developing this 
list, the Secretary is required to attempt to achieve the 
establishment, restoration, management, maintenance and 
enhancement of forests and trees for the following: sustainable 
growth and management for timber production, water quality, 
energy conservation, habitat, invasive species control, 
hazardous fuels reduction, development of forest or stand 
management plans and other activities approved by the 
Secretary. (Sec. 802)
      The Senate amendment requires the Secretary, in 
consultation with the State forester and appropriate committee, 
to develop a list of approved forest activities and practices 
eligible for cost-share assistance. Approved activities may 
include: (1) the establishment, management, maintenance and 
restoration of forests for shelterbelts, windbreaks, aesthetic 
quality and other conservation purposes, (2) sustainable growth 
and management for timber production, (3) the protection of 
water quality, (4) the preservation, restoration or development 
of habitat, (5) invasive species control, (6) the conduct of 
other management activities such as hazardous fuels reduction 
that reduce the risks to forests posed by fire, (7) the 
development of management plans, (8) the acquisition of 
permanent conservation easements, and (9) the conduct of other 
activities approved by the Secretary. (Sec. 806)
      The Conference substitute adopts the Senate provision 
with minor changes including an amendment to strike the 
acquisition of permanent easements as an eligibleactivity.
(13) Reimbursement of Eligible Activities
      The House bill (1) directs the Secretary to share the 
cost of implementing the approved activities that the Secretary 
determines are appropriate to carry out the Forest Land 
Enhancement Program; (2) directs the Secretary to determine the 
appropriate reimbursement rate for cost-share payments and the 
schedule for making such payments; (3) prohibits the Secretary 
from making cost-share payments in an amount that exceeds 75% 
of the total cost, or a lower percentage as determined by the 
State forester; (4) directs the Secretary to determine the 
maximum payment made to any one owner. (Sec. 802)
      The Senate amendment allows the Secretary to provide 
cost-share assistance to an owner to develop a sustainable 
forest management plan.
      The Senate amendment prevents an owner from receiving any 
cost-share assistance for management of non-industrial private 
forest land if the owner receives assistance for that land 
under the FIP, SIP or any conservation program administered by 
the Secretary.
      The Senate amendment directs the Secretary, in 
consultation with the State forester, to determine the rate and 
timing of cost-share payments.
      The Senate amendment limits the amount of a cost-share 
payment to the lesser of: 75% of the total cost of implementing 
the project or activity or such lesser percentage of the total 
cost of implementing the project or activity as is determined 
by the appropriate State forester; and requires the Secretary 
to determine the maximum aggregate amount of cost-share 
payments that each owner may receive. (Sec. 806)
      The Conference substitute adopts the House provision. 
(Sec. 802)
(14) Recapture
      The House bill directs the Secretary to establish and 
implement a mechanism to recapture payments made to an owner in 
the event that the owner fails to implement any approved 
activity for which the owner received cost-share payments under 
the Forest Land Enhancement Program. (Sec. 802)
      The Senate amendment directs the Secretary to establish a 
procedure to recapture cost-share payments in any case in which 
the recipient fails to implement a project or activity in 
accordance with the management plan or comply with any 
requirement of Sustainable Forest Management Program. (Sec. 
806)
      The Conference substitute adopts the House provision. 
(Sec. 802)
(15) Distribution
      The House bill directs the Secretary to consider the 
following in distributing funds to the states under the Forest 
Land Enhancement program: the number of owners eligible in each 
state; demand for timber; demand for agro forestry; need to 
improve forest health, etc. (Sec 802)
      The Senate amendment directs the Secretary, acting 
through the State Foresters and considering the program 
objectives (described above), to develop a nationwide funding 
formula for the Sustainable Forest Management program. In 
developing the formula, the Secretary is required to assess the 
public benefits that would result from the distribution as well 
as the following factors: the total acreage of non-industrial 
private forest land in each state, the potential productivity 
of that land, the number of owners eligible for cost-sharing in 
each state, the opportunities to enhance non-timber resources 
on that land, the anticipated demand for timber and non-timber 
resources, the need to improve forest health, the need and 
demand for agro forestry practices in each state, the need to 
maintain and enhance the forest land base, and the need for 
afforestation, reforestation and timber stand improvement. 
(Sec. 806)
      The Conference substitute adopts the Senate provision 
with minor changes.
(16) Availability of Funds
      The House bill makes $200 million available from the CCC 
for carrying out the Forest Land Enhancement program from 
October 1, 2001 to September 30, 2011. (Sec. 802)
      The Senate amendment makes $48 million available from the 
Treasury during fiscal years 2002 through 2005 to fund the 
Sustainable Forest Management Program. (Sec. 806)
      The Conference substitute provides for $100 million from 
the CCC to carry out the program.
(17) Conforming Amendment
      The House bill amends section 246(b)(2) of Department of 
Agriculture Reorganization Act of 1994 by striking ``forestry 
incentive program'' and inserting ``Forest Land Enhancement 
Program''. (Sec. 802(d))
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 802(d))
(18) Reports
      The Senate amendment (1) directs the states to submit an 
interim report to the Secretary not later than 2\1/2\ years 
after the date on which funds are made available to implement a 
state Sustainable Forest Management priority plan. The report 
must describe the status of projects and activities being 
funded under the plan; and (2) requires states to submit a 
final report no later than 5 years after the date on which 
funds are made available to implement a state priority plan. 
The report must describe the status of all projects and 
activities funded under the plan as of that date. (Sec. 806)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with changes to require one report one year prior to 
reauthorization of the program.
(19) Renewable Resources Extension Activities (Sustainable Forestry 
        Outreach Initiative)
      The House bill (1) reauthorizes the RREA through 2011 and 
amends the amount of authorization from $ 15 million to $ 30 
million; and (2) amends the RREA by inserting a new Sustainable 
Forestry Outreach Initiative designed to educate landowners on 
the value and benefits of practicing sustainable forestry, and 
to educate landowners about the variety of programs available 
to them. (Sec. 803)
      The Senate amendment (1) reauthorizes the RREA through 
2006 and amends the amount of the authorization from $ 15 
million to $30 million per year; (2) amends the RREA by 
inserting a new Sustainable Forestry Outreach Initiative 
designed to educatelandowners on the value and benefits of 
practicing sustainable forestry, and to educate landowners about the 
variety of programs available to them. (Sec. 803)
      The Conference substitute adopts the Senate provision. 
(Sec. 803)
(20) Enhanced Community Fire Protection
      The House bill amends the Cooperative Forestry Assistance 
Act of 1978 by adding a new Enhanced Community Fire Protection 
program. (Sec. 804)
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by adding an Enhanced Community Fire 
Protection section. (Sec. 811)
      The Conference substitute adopts the House provision. 
(Sec. 804)
(21) Findings
      The House bill contains findings of Congress with respect 
to severity and intensity of wildland fires, 2000 fire season, 
threat of wildfires to communities in the wildland-urban 
interface, National Fire Plan, authority for addressing the 
wildfire issue on private lands and federal interest in 
enhanced community protection from wildfire. (Sec. 804(a))
      The Senate amendment contains findings of Congress with 
respect to severity and intensity of wildland fires, 2000 fire 
season, threat of wildfires to communities in the wildland-
urban interface, National Fire Plan, authority for addressing 
the wildfire issue on private lands and federal interest in 
enhanced community protection from wildfire; and adds 
additional finding with respect to forest wetlands. (Sec. 
811(a))
      The Conference substitute adopts the House provision with 
minor changes. (Sec. 804(a))
(22) Enhanced Protection
      The House bill adds a new section 10A to the Cooperative 
Forestry Assistance Act of 1978. (Sec. 804(b))
      The Senate amendment adds a new section 10A to the 
Cooperative Forestry Assistance Act of 1978. (Sec. 811(b))
      The Conference substitute adopts the House provision. 
(Sec. 804(b))
(23) Cooperative Management Relating to Wildfire Threats
      The House bill allows the Secretary to cooperate with 
State foresters and equivalent state officials to: (1) prevent 
and control wildfire, (2) protect communities from wildfire 
threats, (3) enhance the growth and maintenance of trees and 
forests, and (4) ensure the continued production of all forest 
resources. (Sec. 804)
      The Senate amendment allows the Secretary to cooperate 
with State foresters and equivalent state officials to: (1) 
prevent, control, suppress and assist in the prescribed use of 
fires, (2) protect communities from wildfire threats, (3) 
enhance the growth and maintenance of trees and forests, and 
(4) ensure the continued production of all forest resources. 
(Sec. 811)
      The Conference substitute adopts the House provision. 
(Sec. 804)
(24) Community and Private Land Fire Assistance Program
      The House bill (1) directs the Secretary to establish a 
Community and Private Land Fire Assistance Program to be 
administered by the Forest Service and implemented through the 
State forester or an equivalent state official; and (2) allows 
the Secretary to undertake the following activities on both 
federal and non-federal lands: fuel hazard mitigation and 
prevention, invasive species management, multi-resource 
wildfire planning, community protection planning, community and 
landowner education, market development and expansion, improved 
wood utilization, and special restoration projects. (Sec. 804)
      The Senate amendment (1) directs the Secretary to 
establish a Community and Private Land Fire Assistance Program 
to be administered by the Secretary and, with respect to non-
federal lands, carried out through the State forester or 
equivalent state official; allows the Secretary to undertake 
the following activities on both federal and non-federal lands: 
fuel hazard mitigation and prevention, invasive species 
management, multi-resource wildfire planning, community 
protection planning, community and landowner education, market 
development and expansion, improved wood utilization, and 
special restoration projects; and (2) directs the Secretary to 
give priority to contracts with local persons or entities in 
carrying out the program. (Sec. 811)
      The Conference substitute adopts the House provision with 
minor changes. (Sec. 804)
(25) Authorization of Appropriations
      The House bill authorizes $35 million in appropriations 
for each fiscal year during 2002 through 2011 for the Enhanced 
Community Fire Protection program. (Sec. 804)
      The Senate amendment authorizes $35 million in 
appropriations for each fiscal year during 2002 through 2006 
for the Enhanced Community Fire Protection program. (Sec. 811)
      The Conference substitute adopts House provision. (Sec. 
804)
(26) International Forestry Program/Office
      The House bill reauthorizes the International Forestry 
Program through 2011. (Sec. 805)
      The Senate amendment reauthorizes the International 
Forestry Office through 2006. (Sec. 801)
      The Conference substitute adopts the Senate provision. 
(Sec. 801)
(27) Long-Term Forest Stewardship Contracts
      The Senate amendment (1) lists the findings of Congress 
with respect to wildfire damage, risk to communities from 
wildfire, accumulation of heavy forest fuel loads, modification 
of forest fuel load conditions, hazardous fuels as a renewable 
resource, and the need for the United States to invest in 
technologies that promote economic and entrepreneurial 
opportunities in processing forest products removed through 
hazardous fuel reduction activities (Sec. 809(a)); and (2) 
defines: (a) biomass-to-energy facility, (b) eligible 
community, (c) forest biomass, (d) hazardous fuel, (e) Indian 
tribe, (f) National Fire Plan, (g) person, and (h) Secretary. 
(Sec. 809(b))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(28) Annual Assessment of Treatment Acreage
      The House bill directs the Secretary to submit to 
Congress an assessment of thenumber of acres of forested 
National Forest System lands recommended to be treated using 
stewardship contracts during the next fiscal year no later than March 1 
of each of fiscal years 2002 through 2006. This assessment is to be 
based on the treatment schedules contained in the report entitled 
``Protecting People and Sustaining Resources in Fire-Adapted 
Ecosystems'' and dated October 13, 2000; and requires the assessment to 
identify the acreage by condition class, type of treatment and 
treatment year to achieve the restoration goals outlined in the report. 
(Sec. 806(a))
      The Senate amendment (1) directs the Secretary to submit 
to Congress an assessment of the number of forested National 
Forest System acres recommended for treatment during the next 
fiscal year using stewardship contracts no later than March 1 
of each of fiscal years 2002 through 2006. This assessment is 
to be based on the treatment schedules contained in the report 
``Protecting People and Sustaining Resources in Fire-Adapted 
Ecosystems'' and dated October 13, 2000; (2) requires the 
assessment to identify the acreage by condition class, type of 
treatment, and treatment year; (3) in addition, the assessment 
is to give priority to condition class 3 acreage, provide 
information relating to the type of material and estimated 
quantity and range of sizes of material, and describe land 
allocation categories in which the contract authorities will be 
used. (Sec. 809(d)(1))
      The Conference substitute did not adopt this provision.
(29) Funding Recommendation
      The House bill directs the Secretary to include in the 
annual assessment a request for funds sufficient to implement 
the recommendations contained in the assessment. (Sec. 806(b))
      The Senate amendment directs the Secretary to include in 
the annual assessment a request for funds sufficient to 
implement the recommendations contained in the assessment. 
(Sec. 809(d)(2))
      The Conference substitute did not adopt this provision.
(30) Stewardship End Result Contracting
      The House bill (1) permits the Secretary to enter into 
stewardship contracts to implement the National Fire Plan on 
National Forest Service lands under the direction of the 
assessment and with the authorities described in section 347 of 
the Department of the Interior Appropriations Act of 1999. But, 
the period of the contracts will be for 10 years. The House 
bill also provides that the authority of the Secretary to enter 
into contracts under this section expires on September 30, 
2007. (Sec. 806(c))
      The Senate amendment permits the Secretary to enter into 
no more than 28 stewardship end result contracts to implement 
the National Fire Plan. The contracting goals and authorities 
outlined in the original stewardship contracting authorization 
in the 1999 Department of the Interior Appropriations Act (16 
U.S.C. 2104 note; Public Law 105-277, Section 347, subsections 
(b) through (g) apply to these contracts. Fourteen of the 28 
contracts shall be subject to additional conditions. (Sec. 
809(d)(3))
      The Conference substitute did not adopt this provision.
(31) Status Report
      The House bill beginning in fiscal year 2003, requires 
the Secretary to include a status report of stewardship 
contracts underway in the annual assessment submitted to 
Congress. (Sec. 806(d))
      The Senate amendment, beginning in fiscal year 2003, 
requires the Secretary to include in the annual assessment a 
status report on the contracts entered into under the Long-term 
Forest Stewardship Contracts for Hazardous Fuels Removal 
section. (Sec. 809(d)(3)(C))
      The Conference substitute did not adopt this provision.
(32) Authorization of Appropriations
      The Senate amendment authorizes to be appropriated such 
sums as are necessary to carry out the Long-term Forest 
Stewardship Contracts for Hazardous Fuels Removal in subsection 
(d) for fiscal years 2002 through 2006. (Sec. 809(d)(4))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(33) Excluded Areas
      The Senate amendment allows the Secretary to carry out 
the Wildfire Prevention and Hazardous Fuel Purchase Program 
only in the wildland/urban interface. (Sec. 809(e))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(34) Duration
      The House bill provides that the authority of the 
Secretary to enter into contracts under the Long-term Forest 
Stewardship contracts for Hazardous Fuels Removal and 
Implementation of National Fire Plan section expires on 
September 30, 2007. (Sec. 806 (c)(2))
      The Senate amendment terminates the Secretary's authority 
under the Wildfire Prevention and Hazardous Fuel Purchase 
Program on September 30, 2006. (Sec. 809(f))
      The Conference substitute did not adopt this provision.
(35) Hazardous Fuels to Energy Grant Program
      The House bill lists findings of Congress with respect to 
damages caused by wildfire disasters, risk of communities to 
wildfire, effect that modification of forest fuel load 
conditions will have on minimizing damage from wildfires, and 
hazardous fuels as an abundant renewable resource. (Sec. 
921(a))
      The Senate amendment lists Congress findings with respect 
to wildfire damage, risk to communities from wildfire, 
accumulation of heavy forest fuel loads, modification of forest 
fuel load conditions, hazardous fuels as a renewable resource, 
and the need for the United States to invest in technologies 
that promote economic and entrepreneurial opportunities in 
processing forest products removed through hazardous fuel 
reduction activities. (Sec. 809 (a))
      The Conference substitute did not adopt this provision.
(36) Definitions
      The House bill defines: (1) biomass-to-energy-facility, 
(2) forest biomass, (3) hazardous fuels, and (4) Secretary 
concerned. (Sec. 921(e))
      The Senate amendment defines: (1) biomass-to-energy 
facility, (2) eligible community, (3) forest biomass, (4) 
hazardous fuel, (5) Indian tribe, (6) National Fire Plan, (7) 
person, and (8) Secretary. (Sec. 809(b)
      The Conference substitute did not adopt this provision.
(37) Hazardous Fuels to Energy Grant Program
      The House bill authorizes the Secretary to make grants to 
the operators of a biomass-to-energy facility to offset the 
costs incurred to purchase hazardous fuels from forest lands 
for the use in the production of electric energy, useful heat, 
or transportation fuels; and requires that grant recipients be 
selected on the basis of their planned purchases of hazardous 
fuels and the level of anticipated benefits to reduced wildfire 
risk. (Sec. 921(b))
      The Senate amendment (1) authorizes the Secretary to make 
grants to persons that operate biomass-to-energy facilities to 
offset the costs incurred by those persons in purchasing 
hazardous fuels AND persons in rural communities that are 
seeking ways to improve the use of, or add value to, hazardous 
fuels; and (2) directs the Secretary to select recipients for 
grants based on planned purchases of hazardous fuels, the level 
of anticipated benefits of purchases in reducing risk of 
wildfires, the extent to which the project avoids adverse 
environmental impacts, and the level of anticipated benefits 
for eligible communities. (Sec. 809(c)(1))
      The Conference substitute did not adopt this provision.
(38) Grant Amounts
      The House bill requires grants to be equal to at least $5 
per ton of hazardous fuels delivered, but not to exceed $10 per 
ton, based on the distance of hazardous fuels from the biomass-
to-energy facility. (Sec. 921(c))
      The Senate amendment (1) requires that grant amounts be 
based on the distance required to transport hazardous fuels to 
a biomass-to-energy facility and the cost of removal of 
hazardous fuels; (2) requires that grants be in an amount that 
is at least equal to $5 per ton but not more than $10 per ton 
of hazardous fuels; and (3) limits grants to $1,500,000 per 
year, per facility. But, a facility with an annual production 
of 5 megawatts or less is not subject to this limitation. (Sec. 
809)
      The Conference substitute did not adopt this provision.
(39) Monitoring of Grant Recipient Activities
      The House bill requires grant recipients to keep such 
records as the Secretary may require, and on notice by the 
Secretary, grant reasonable access to facility and an 
opportunity to review records. (Sec. 921(d))
      The Senate amendment requires grant recipients to keep 
such records as the Secretary may require, and on notice by the 
Secretary, grant reasonable access to facility and an 
opportunity to review records. (Sec. 809(c)(3))
      The Conference substitute did not adopt this provision.
(40) Monitoring of Effects of Treatment
      The House bill requires the Secretary to monitor federal 
lands from which hazardous fuels are removed and sold to 
biomass-to-energy facilities to determine and document the 
reduction in fire hazard. (Sec. 921(e))
      The Senate amendment requires the Secretary to monitor 
federal lands from which hazardous fuels are removed and sold 
to a biomass-to-energy facility to determine the environmental 
impact of fuels removal; requires the Comptroller General to 
monitor the number of jobs created, the opportunities created 
for small and micro-businesses and the types and amounts of 
energy supplies created and energy prices for eligible 
communities; and requires the Comptroller General to submit an 
annual report to Congress beginning in fiscal year 2003 that 
describes the information obtained through monitoring. (Sec. 
809(c)(4))
      The Conference substitute did not adopt this provision.
(41) Authorization of Appropriations
      The House bill authorizes $50 million in appropriations 
for each fiscal year. (Sec. 921(g))
      The Senate amendment authorizes $50 million in 
appropriations for each fiscal year from 2002 to 2006. (Sec. 
809(c)(7))
      The Conference substitute did not adopt this provision.
(42) Review and Report
      The Senate amendment directs the Comptroller General to 
submit a report to Congress that describes the results and 
effectiveness of the Wildfire Prevention and Hazardous Fuel 
Purchase Program not later than September 30, 2004; requires 
the Secretary to submit to Congress an annual report describing 
the results of the pilot program that includes an 
identification of the size of each facility that receives a 
grant and the haul radius associated with each grant; and 
requires the Secretary to submit a report to Congress by 
December 1, 2003 which describes the technical feasibility of 
the use of small diameter trees and biomass for energy 
production, the environmental impacts of using small diameter 
trees and forest residues and any social or economic benefits 
of small-scale biomass energy units for rural communities. 
(Sec. 809 (c)(5))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(43) Grants to Other Persons
      The House bill contains no comparable provision.
      The Senate amendment allows the Secretary to make grants 
to persons in rural communities that are seeking ways to 
improve the use of, or add value to, hazardous fuels. (Sec. 
809(c)(6))
      The Conference substitute did not adopt this provision.
(44) Excluded Areas
      The Senate amendment allows the Secretary to carry out 
the Wildfire Prevention and Hazardous Fuel Purchase Program 
only in the wildland/urban interface. (Sec. 809(e))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(45) Termination of Authority
      The Senate amendment terminates the Secretary's authority 
under the Wildfire Prevention and Hazardous Fuel Purchase 
Program on September 30, 2006. (Sec. 809(f))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(46) McIntire-Stennis Cooperative Forestry Research Program
      The House bill reaffirms the importance of the McIntire-
Stennis Cooperative Forestry Act. (Sec. 807)
      The Senate amendment reaffirms the importance of the 
McIntire-Stennis Cooperative Forestry Act. (Sec. 802)
      The Conference substitute adopts the House provision with 
minor technical change to public law number. (Sec. 807)
      The Managers recognize the importance of university-based 
programs in forest and natural resources to the success of many 
of the technical assistance and cost-share programs in the 
Conservation and Forestry Titles of this Act including the 
Conservation Reserve Program, EQIP, Sustainable Forestry 
Outreach Initiative, Forest Land Enhancement Program. As these 
programs are expanded and enhanced, there will be an increased 
need for science-based information in the development of these 
initiatives. The nation's forestry schools and colleges are 
uniquely equipped to expand the base of knowledge and to assist 
in the delivery of educational outreach to our nation's 
nonfederal forest landowners. The Managers expect the 
Department to seek greater cooperation and collaboration with 
universities as it implements these various technical 
assistance and cost-share programs.
(47) Sustainable Forestry Cooperative Program
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by inserting a new section 5A:
      The Senate amendment defines: (a) farmer or rancher, (b) 
forestry cooperative, and (c) non-industrial private 
forestland.
      The Senate amendment directs the Secretary to establish a 
program to provide grants to nonprofit organizations on a 
competitive basis to establish and support forestry 
cooperatives.
      The Senate amendment requires funds to be used for the 
support of forestry cooperatives or the support of a 
sustainable forestry practice of a member of a cooperative.
      The Senate amendment requires the Secretary to provide 
funds only to a nonprofit organization with demonstrated 
expertise in cooperative development as determined by the 
Secretary. Requires funds being used to support a land 
management practice to comply with an approved forest plan.
      The Senate amendment makes $2 million available from the 
Treasury to remain available until expended. (Sec. 805)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(48) Forest Fire Research Centers
      The Senate amendment lists Congressional findings with 
respect to: (1) increasing threat of fire to forest land and 
rangeland, (2) concentration of fire threat in the western part 
of the United States, (3) degraded condition of forest land and 
rangeland, (4) results of current land management practices in 
the United States, (5) population movement into wildland-urban 
interface, (6) budgets of governments, (7) diminishing Federal 
resources for fire research, (h) funding for Federal fire 
research program, and (8) critical need for cost-effective 
investments in improved fire management technologies. (Sec. 
808(a))
      The Senate amendment directs the Secretary to establish 
at least 2 forest fire research centers at institutions of 
higher education to: (1) conduct integrative, interdisciplinary 
research into the ecological, socioeconomic and environmental 
impact of fire control and the use of managing ecosystems and 
landscapes to facilitate fire control, and (2) to develop 
mechanisms to transfer new fire technologies. (Sec. 808(b))
      The Senate amendment directs the Secretary, in 
consultation with the Secretary of Interior, to establish an 
advisory committee to establish priorities for research 
projects conducted at the forest fire research centers 
established above. (Sec. 808(c))
      The Senate amendment authorizes the appropriation of such 
sums as are necessary to carry out this section. (Sec. 808(d))
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(49) Watershed Forestry Assistance Program
      The Senate amendment lists Congressional findings with 
respect to: (1) public attitudes about forest management, (2) 
benefits of proper stewardship, (3) importance of forests to 
protecting the drinking water supply, (4) forest loss and 
fragmentation in urbanizing areas, (5) scientific evidence and 
public awareness about forest management and water quality, (6) 
application of forestry best management practices, (7) efforts 
to improve forestry best management practices, (8) role of 
forests in maintenance of clean water, (9) burden of management 
on private forest land owners, (10) need to integrate 
management, conservation, restoration and stewardship, (11) 
responsibility of federal government, (12) availability of 
federal assistance, and (13) the need for increased research, 
education, technical and financial assistance to private forest 
land owners.
      The Senate amendment describes the purposes of this 
section as: (1) improving the understanding of landowners and 
public with respect to the relationship between water quality 
and forest management, (2) encouraging landowners to utilize 
trees to promote water quality, (3) enhancing and complementing 
source water protection in watersheds that provide drinking 
water, (4) establishing new partnerships, and (5) providing 
technical and financial assistance to States.
      The Senate amendment directs the Secretary to establish a 
new program to provide states, through the State foresters, 
technical, financial, and related assistance to expand forest 
stewardship and prevent water quality degradation and address 
watershed issues on non-Federal forestland (Sec. 812(c)); 
requires the Secretary to cooperate with the State Foresters to 
develop a plan to provide technical assistance to States in 
addressing water quality; requires the plan to include 
provisions to accomplish the following tasks: (1) build and 
strengthen watershed partnerships, (2) provide State BMPs and 
water quality technical assistance to landowners, (3) provide 
technical guidance to land managers and policymakers, (4) 
complement State non-point source assessment and management 
plans, (5) provide opportunities for coordination and 
cooperation among Federal and State agencies for water and 
watershed management, and (6) provide forest resource data for 
improved implementation of state BMPs; directs the Secretary to 
develop a cost-share program to provide grants and other 
assistance for eligible programs and projects; sets forth 
criteria which the Secretary must consider in allocating 
fundsamong the states; requires the State foresters, in coordination 
with the State Coordinating Committee, to provide annual grants and 
cost-share payments to communities, non-profit groups, and landowners 
to carry out eligible programs and projects; directs the Secretary to 
prioritize cost-share assistance to eligible programs and projects that 
are identified by the State foresters and the State Stewardship 
Committees as having a greater need for assistance; limits the amount 
of federal cost-share to not exceed 75% and permits the non-federal 
share to be made in the form of cash, services, or in-kind 
contributions; allows states to use a portion of the funds made 
available to the state to establish and fill a position of watershed 
forester to lead state-wide programs; authorizes $20 million to be 
appropriated for each fiscal year through 2006; and requires funding to 
be allocated in such a manner that 75% is going to the cost-share 
portion of the program and the remainder for other provisions within 
the section. (Sec. 812)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(50) General Provisions
      The Senate amendment amends section 13 of the Cooperative 
Forestry Assistance Act to enable the Secretary to make grants 
and enter into contracts, agreements or other arrangements to 
carry out the Cooperative Forestry Assistance Act. (Sec. 814)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(51) State Forest Stewardship Coordinating Committees
      The Senate amendment amends section 19(b) of the 
Cooperative Forestry Assistance Act by adding the U.S. Fish and 
Wildlife Service as a member of the State Forest Stewardship 
Coordinating Committees.
      The Senate amendment also directs the Committees to 
submit to the Secretary, and House and Senate Agriculture 
Committees an annual report of the list of members on the 
Committee, and an explanation of why certain groups may not be 
represented. (Sec. 815)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(52) Forest Legacy Program
      The Senate amendment amends section 7(l) of the 
Cooperative Forestry Management Act to allow a state to 
authorize any local government or qualified organization to 
acquire land or conservation easements to carry out the Forest 
Legacy Program in that state. (Sec. 807)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(53) Chesapeake Bay Watershed Forestry Program
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by adding a new section 9A:
      The Senate amendment lists definitions for: (1) 
agreement, (2) Bay-Area state, (3) Chesapeake Bay Executive 
Council, (4) director, (5) eligible entity, (6) eligible 
project, (7) program, and (8) Secretary.
      The Senate amendment directs the Secretary to establish a 
Chesapeake Bay Watershed Forestry Program to provide technical 
and financial assistance to carry out eligible projects; and 
directs the Secretary to designate a Forest Service employee to 
serve as a director for the Chesapeake Bay watershed forestry 
efforts.
      The Senate amendment allows the Secretary, in 
coordination with the director, to provide grants to assist 
eligible entities in carrying out eligible projects; and limits 
the federal share of the cost-share assistance to 75%.
      The Senate amendment requires the director, in 
cooperation with the Council, to conduct a study to: (1) assess 
the extent and location of forest loss and fragmentation, (2) 
identify critical forest land, (3) prioritize afforestation 
needs, (4) recommend management strategies to expand 
conservation and stewardship of the forest ecosystem and ways 
in which the Federal government can work with State, county, 
local, and private entities to conserve critical forests 
including establishing new units of the National Forest System, 
and (5) identify further inventory assessment and research 
which is needed and requires the director to report to Congress 
not later than 2 years after the date of enactment of this 
legislation.
      The Senate amendment allows the Secretary, in cooperation 
with the director, to establish a cooperative program to 
provide technical and financial assistance to eligible entities 
to meet the needs of the urban population of the watershed in 
managing forest land.
      The Senate amendment authorizes $3 million in 
appropriations for fiscal year 2002 and $3.5 million for each 
fiscal year in 2003 through 2006. (Sec. 810)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(54) Suburban and Community Forestry and Open Space Initiative
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by adding a new section 7A:
      The Senate amendment lists definitions for: (1) eligible 
entity, (2) Indian tribe, (3) private forestland, (4) program, 
and (5) Secretary.
      The Senate amendment establishes a Suburban and Community 
Forestry and Open Space Initiative within the Forest Service to 
provide assistance to eligible entities to carry out projects 
and activities to conserve private forest land and maintain 
working forests in suburban environments.
      The Senate Amendment requires the Secretary, in 
consultation with the State foresters, to establish criteria 
for identifying private forest land in each state that may be 
conserved, and identifying eligible entities; requires the 
Secretary to then award grants to eligible entities to carry 
out certain projects or activities; and requires the Secretary 
to give priority to projects that promote the following 
objectives: (1) sustainable forest management, (2) education 
programs and curricula relating to sustainable forestry, and 
(3) community involvement in determining the objectives for 
projects or activities that are funded under this program, and 
limits grants to 50% of the cost of a project or activity.
      The Senate amendment allows funds to be used to purchase 
land or easements only from willing sellers at fair market 
value; requires sales at less than fair market value only on 
certification by the landowner that the sale is being entered 
into willingly and without coercion; and allows title to be 
held, as determined by the Secretary, by a State ornon-profit 
organization.
      The Senate amendment authorizes $50 million to be 
appropriated for fiscal year 2003 and such sums as are 
necessary for each fiscal year thereafter. (Sec. 813)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(55) USDA National Agro Forestry Center
      The Senate amendment amends section 1243 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 (16 U.S.C. 
1642 note; Public Law 101-624) by striking the section heading 
and inserting:
      ``USDA National Agro Forestry Center''. (Sec. 816)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision. 
(Sec. 819)
(56) Office of Tribal Relations
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by inserting a new section 19A:
      The Senate amendment defines the following: (1) Indian 
tribe, (2) office, and (3) Secretary.
      The Senate amendment directs the Secretary to establish 
an Office of Tribal Relations within the Forest Service and 
requires the Secretary to appoint a director of such office and 
to consult with interested tribes in making this determination; 
and requires the director to report directly to the Secretary.
      The Senate amendment requires the director to provide 
assistance to the Secretary on all issues, policies, actions, 
and programs of the Forest Service that affect Indian tribes 
and requires the director to submit an annual report on the 
status of relations between the Forest Service and Indian 
Tribes to the Secretary. (Sec. 817)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(57) Assistance to Tribal Governments
      The Senate amendment amends the Cooperative Forestry 
Assistance Act of 1978 by adding a new section 21:
      The Senate amendment defines an Indian tribe.
      The Senate amendment allows the Secretary to provide 
financial, technical, educational and related assistance to 
Indian tribes.
      The Senate amendment directs the Secretary to promulgate 
regulations in consultation with Indian tribes and 
representatives of tribes, to implement the program.
      The Senate amendment directs the Secretary to coordinate 
with the Secretary of the Interior to establish, implement and 
administer the program.
      The Senate amendment authorizes the appropriation of such 
sums, as are necessary for fiscal year 2002 and each fiscal 
year thereafter. (Sec. 818)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(58) Sudden Oak Death Syndrome
      The Senate amendment directs the Secretary to research, 
monitor and carry out a treatment program to develop, control, 
manage, or eradicate Sudden Oak Death Syndrome on public and 
private land.
      The Senate amendment requires the Secretary to conduct 
management, regulation, and fire prevention activities to 
reduce the threat of fire and fallen trees killed by Sudden Oak 
Death Syndrome.
      The Senate amendment requires the Secretary to conduct 
education and outreach activities to make information available 
to the public on Sudden Oak Death Syndrome.
      The Senate amendment requires the Secretary to establish 
a Sudden Oak Death Syndrome advisory committee to assist the 
Secretary in carrying out this section.
      The Senate amendment authorizes $14.25 million in 
appropriations for each of the fiscal years in 2002 through 
2006. (Sec. 819)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(59) Independent Investigation of Fire-Fighter Fatalities
      The Senate amendment requires the Inspector General of 
the Department of Agriculture to conduct an independent 
investigation whenever there is a fatality of an officer or 
employee of the Forest Service that occurs due to wildfire 
entrapment or burn over and requires the IG to submit a report 
to Congress and the Secretary of Agriculture. (Sec. 820)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.
(60) Adaptive Ecosystem Restoration of Arizona and New Mexico Forests 
        and Woodlands
      The Senate amendment lists Congressional findings with 
respect to: (1) degradation of ecological conditions of forests 
and woodlands in Arizona and New Mexico, (2) unnaturally high 
quantities of biomass, (3) effects of degraded forests and 
woodlands, (4) benefits of healthy forests and woodland 
ecosystems, (5) importance of best available scientific 
knowledge in developing forest and woodland treatments, (6) 
failure of treatments not based on sound science, (7) 
integration of scientific research and land management 
activities, and (8) translation of scientific knowledge;
      The Senate amendment describes the purposes of this 
section as: (1) improving the ecological health, resource 
values, and sustainability of forest and woodland ecosystems in 
Arizona and New Mexico, (2) reducing the threat of unnatural 
wildfire, disease, and insect infestations in those states, (3) 
restoring ecosystem structure and function so that ecosystems 
will support biodiversity; enhance watershed values; increase 
water flow; and increase tree, grass, forb, and shrub vigor and 
growth to provide sustainable economic activities, (4) 
developing the scientific knowledge to inform adaptive 
ecosystem management restoration treatments that will restore 
long-term ecological health to forests and woodlands in the 
States, and (5) encouraging collaboration among land management 
agencies, communities, and interest groups in developing, 
implementing, and monitoring adaptive ecosystem management 
restoration treatments that are ecologically sound, 
economically viable, and socially responsible;
      The Senate amendment lists definitions for: (1) adaptive 
ecosystem management, (2) ecological integrity, (3) ecological 
restoration, (4) institute, (5) land management agency, (6) 
practitioner, (7) Secretaries, and (8) state.
      The Senate amendment requires the Secretary of 
Agriculture, in consultation with the Secretary of the 
Interior, to establish: (1) an Ecological Restoration Institute 
in Flagstaff, Arizona, and (2) an institute at a college or 
university in the State of New Mexico.
      The Senate amendment requires each institute to plan, 
conduct, or otherwise arrange for applied ecosystem management 
research that: (1) assists in answering questions identified by 
land managers, practitioners, and others concerned with land 
management, (2) will be useful in the development and 
implementation of practical, science-based, ecological 
restoration treatments, (3) translate scientific knowledge into 
communication tools that are easily understood by land 
managers, natural resource professionals, and concerned 
citizens, and (4) provide similar information to land managers 
and other interested persons.
      The Senate amendment requires each institute to cooperate 
with various entities, including colleges and universities.
      The Senate amendment requires the Secretary, in 
consultation with the Secretary of Interior, to complete a 
detailed evaluation of each institute not later than 5 years 
after the date of enactment of this Act, and every 5 years 
thereafter.
      The Senate amendment authorizes $10 million in 
appropriations for each fiscal year. (Sec. 821)
      The House bill contains no comparable provision.
      The Conference substitute did not adopt this provision.

                            Title IX--Energy

(1) Findings
      The Senate amendment provides Congressional findings with 
respect to the development of agriculturally based renewable 
energy, the promotion of energy efficiency and biobased 
products. (Section 901)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(2) Consolidated Farm and Rural Development Act
      The Senate amendment amends the Consolidated Farm and 
Rural Development Act by adding a new subtitle on ``Clean 
Energy'' and includes definitions for biomass, renewable 
energy, and rural small business. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute does not amend the Consolidated 
Farm and Rural Development Act, but rather maintains the 
section as individual stand-alone provisions. The substitute 
adopts the Senate definitions with amendments. (Section 9001)
(3) Federal Procurement of Biobased Products
      The Senate amendment establishes a federal purchasing 
program for biobased products if they are on a United States 
Department of Agriculture biobased products list and the 
biobased products are reasonably comparable in price, 
performance and availability to non-biobased products. The 
section also instructs the Secretary to develop a labeling 
program for biobased products similar to the Energy Star 
program of the Environmental Protection Agency and Department 
of Energy. The amendment provides $2,000,000 annually in each 
of fiscal years 2002-2006. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments. The substitute establishes a new program for 
the purchase of biobased products by Federal agencies, which is 
modeled on the existing program for purchase of recycled 
materials under section 6002 of the Solid Waste Disposal Act 
(42 U.S.C. 6962). The intent of the section is to stimulate the 
production of new biobased products and to energize emerging 
markets for those products. The section also includes a 
voluntary biobased-labeling program. The Conference substitute 
provides $1,000,000 annually for each of fiscal year 2002-2007 
for testing biobased products to carry out this section. 
(Section 9002) The Managers encourage the Secretary to make the 
results of such testing available to the public.
      The United States Department of Agriculture, in 
consultation with the Environmental Protection Agency, General 
Services Administration, and the Department of Commerce, will 
serve as the final arbiter of what is or is not considered a 
biobased product to be listed and afforded Federal procurement 
preference. The Office of Federal Procurement Policy will 
ensure compliance by all Federal agencies, including executive 
departments, military departments, Government corporations, 
Government controlled corporations, and other establishments of 
Federal government.
      The Managers intend that any procurement regulations 
implementing this section will be promulgated within the 
existing procurement system through revisions to the Federal 
Acquisition Regulation by the Civilian Agency Acquisition 
Council and the Defense Acquisition Council and through 
revisions as necessary to individual agency acquisition 
regulations by such agencies.
      The Managers encourage the Secretary to carry out the 
biobased product analysis in this section through the Office of 
Energy Policy and New Uses, which have undertaken economic and 
technical feasibility analysis and have identified numerous 
examples of biobased products that can be easily substituted 
for nonbiobased products.
(4) Biorefinery Development Grants
      The Senate amendment establishes a competitive grant 
program to support the development of biorefineries for the 
conversion of biomass into multiple products such as fuels, 
chemicals and electricity. The amendment provides $15,000,000 
annually in each of fiscal years 2002-2006. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments. The section is subject to appropriated funds. 
(Section 9003)
      In making selections for competitive awards, the 
Secretary is encouraged to give particular weight to projects 
that produce multiple products--fuels, chemicals, and in some 
cases power--and do so in a cost effective and environmentally 
sound manner.
(5) Biodiesel Fuel Education Program
      The Senate amendment establishes a competitive grant 
program to educate governmental and private entities with 
vehicle fleets and the public about the benefits of biodiesel 
fuel use. The amendment provides $5,000,000 annually in each of 
fiscal year 2003-2006. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments. The Substitute provides $1,000,000 annually in 
each of fiscal year 2003-2007. (Section 9004)
      The Managers encourage the Secretary to utilize the 
expertise of the Office of Energy Policy and New Uses in 
carrying out the purposes of this section.
(6) Renewable Energy Development Loan and Grant Program
      The House bill amends Section 310B of the Consolidated 
Farm and Rural Development Act by adding other renewable energy 
systems including wind energy and anaerobic digesters to the 
list of purposes for which loans and loan guarantees are 
available. (Section 606) The House bill also contains a 
provision that provides value-added grants to entities to 
develop new marketing and income opportunities for farmers. 
(Section 602)
      The Senate amendment establishes a competitive grant and 
loan program to assist new cooperatives and business ventures, 
which are at least 51 percent owned by farmers or ranchers, in 
the development of renewable energy projects to produce 
electricity. The amendment provides $16,000,000 annually in 
each of fiscal years 2002-2006. (Section 902)
      The Conference substitute adopts the House provisions 
with amendment. The value-added grant program in the Rural 
Development title has been expanded to better achieve the 
purposes of this section. This expansion, along with the 
adoption of House language that allows loans for these 
purposes, should accomplish the goals of the Senate's provision 
and encourage more farmers and ranchers to become involved in 
the ownership of renewable energy systems. (Sections 6401 and 
6013)
(7) Energy Audit and Renewable Energy Development Program
      The Senate amendment establishes a competitive grant 
program for entities to administer energy audits and renewable 
energy development assessments for farmers, ranchers and rural 
small businesses. The amendment provides $15,000,000 annually 
in each of fiscal years 2002-2006. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments. The section is subject to appropriated funds. 
(Section 9005)
(8) Renewable Energy Systems and Energy Efficiency Improvements
      The House bill authorizes the Secretary to provide to 
individuals a loan guarantee under Section 4 of the Rural 
Electrification Act to finance the purchase of renewable energy 
systems, including wind energy systems and anaerobic digesters 
for the purpose of energy generation. (Section 605)
      The Senate amendment establishes a loan, loan guarantee 
and grant program to assist eligible farmers, ranchers and 
rural small businesses in purchasing renewable energy systems 
and making energy efficiency improvements. The amendment 
provides $33,000,000 annually in each of fiscal years 2002-
2006. (Section 902)
      The Conference substitute adopts the Senate provision 
with amendments. The Conference substitute provides $23,000,000 
annually in each of fiscal year 2003-2007. (Section 9006)
      The Managers intend for the Secretary to consider funding 
energy audits an eligible energy efficiency improvement measure 
under this section.
(9) Hydrogen and Fuel Cell Technologies
      The Senate amendment establishes a competitive grant 
program to eligible entities to demonstrate the use of hydrogen 
and fuel cell technologies in farm and rural applications. The 
amendment provides $5,000,000 in each of fiscal years 2002-
2006. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision 
and replaces it with language directing the Secretaries of 
Agriculture and Energy to enter into a memorandum of 
understanding regarding hydrogen and fuel cell technology 
applications for agricultural producers and rural communities. 
The memorandum of understanding also requires the Secretary of 
Agriculture to disseminate information relating to hydrogen and 
fuel cell technologies to rural communities and agricultural 
producers. (Section 9007)
      The Managers encourage the Secretary to utilize the 
expertise of the Office of Energy Policy and New Uses in 
carrying out this section.
(10) Technical Assistance for Farmers and Ranchers to Develop Renewable 
        Energy Resources
      The House bill expands the purpose of the Environmental 
Quality Incentives Program to include assistance to farmers and 
ranchers for the assessment and development of their on-farm 
renewable resources, including biomass for production of power 
and fuel, wind and solar. (Section 942a)
      The House bill also provides that the Secretary of 
Agriculture, through the Cooperative State Research, Education, 
and Extension Service and, to the extent practicable, in 
collaboration with the Natural Resources Conservation Service, 
regional biomass programs under the Department of Energy, and 
other appropriate entities, may provide education and technical 
assistance to farmers and ranchers for the development and 
marketing of renewable energy resources, including biomass for 
the production of power and fuels, wind, solar, and geothermal. 
(Section 942b)
      The Senate amendment provides that the Secretary, acting 
through the Cooperative State Research, Education, and 
Extension Service in consultation with the Natural Resources 
Conservation Service, regional biomass programs under the 
Department of Energy, and other entities as appropriate, may 
provide for education and technical assistance to farmers and 
ranchers for the development and marketing of renewable energy 
resources. The Secretary may retain up to 4 percent to pay 
administrative expenses incurred in carrying out this section. 
(Section 902)
      The Conference substitute deletes both the House and 
Senate provisions.
      The Managers encourage the Cooperative State Research, 
Education, and Extension Service to provide education and 
technical assistance to agricultural producers for the 
development of renewable energy resources. Such assistance 
should enable producers to become more energy efficient and 
provide for the development and marketing of renewable energy 
resources. In assisting producers, the Cooperative Extension 
Service may consult with other entities as appropriate.
(11) Biomass Research and Development
      The House bill extends the Biomass Research and 
Development Initiative through 2011. (Section 736)
      The Senate amendment extends the Act's termination date 
to September 30, 2006. The amendment provides $15,000,000 in 
each of fiscal years 2002-2006. (Section 903)
      The Conference substitute adopts the Senate provision 
with amendments. The substitute provides $5,000,000 for fiscal 
year 2002, and $14,000,000 annually for each of fiscal year 
2003-2007. (Section 9008)
(12) Cooperative Research and Extension Projects
      The Senate amendment establishes a carbon sequestration 
research and development program to promote understanding of 
the net sequestration of carbon in soil and net emissions of 
other greenhouse gases from agriculture. The amendment requires 
that, within three years, the Secretary convene a conference of 
key scientific experts on carbon sequestration from various 
sectors to establish benchmark standards for measuring soil 
carbon content and net emissions of other greenhouse gases, 
designate measurement techniques and modeling approaches to 
achieve such standards, and evaluate results of analyses on 
baseline, permanence and leakage issues. The section authorizes 
appropriations of $25,000,000 annually. (Section 902)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments that incorporate this section into Section 221 
of the Agricultural Risk Protection Act of 2000 (114 Stat. 
407)--Carbon Cycle Research. (Section 9009) The substitute also 
reauthorizes Section 221 of the Agriculture Risk Protection Act 
of 2002 (114 Stat. 407)--Carbon Cycle Research through fiscal 
year 2007. (Section 7223)
      The Managers encourage the Secretary to convene a 
conference of key scientific experts on carbon to evaluate 
tools and procedures for measuring the carbon content of soils 
and plants (including trees) and net emissions of other 
greenhouse gases from agriculture, and identify techniques and 
modeling approaches for measuring carbon content associated 
with several different levels of precision. Conference 
participants should include grant or cooperative agreement 
recipients under federal carbon cycle research programs, other 
experts on carbon sequestration from academia and the private 
sector, and government scientists in the area of carbon 
sequestration, from the Department of Agriculture and other 
federal agencies with programs in carbon cycle research. The 
Secretary is encouraged to provide information to the public 
regarding any such conference proceedings.
      The Managers encourage the Secretary to establish 
demonstration projects that assist agricultural producers and 
farmer-owned cooperatives in paying the costs associated with 
the testing of methods developed under this section (including 
costs incurred in employing certified independent third persons 
to carry out those activities). In the view of the Managers, 
such demonstration projects may provide valuable data in 
testing the methods by which farmers measure their storage of 
carbon and reduce net emissions of greenhouse gases.
(13) Demonstration Projects and Outreach
      The Senate amendment establishes carbon sequestration 
monitoring programs; demonstration projects of methods for 
measuring, verifying and monitoring changes in carbon content 
and greenhouse gas emissions; and periodic outreach to farmers 
and ranchers regarding the connection between global climate 
change mitigation strategies and agriculture. The section 
authorizes appropriations of $10,000,000 annually. (Section 
902)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
Some of the goals of this section have been incorporated into 
Section 9009.
(14) Rural Electrification Act of 1936
      The House bill amends Section 310B of the Consolidated 
Farm and Rural Development Act to specifically include wind 
energy systems and anaerobic digesters in the list of purposes 
for which loans and loan guarantees are available. (Section 
606)
      The Senate amendment amends the Rural Electrification Act 
of 1936 by adding Section 21 at the end which establishes a 
grant and loan program to assist rural electric cooperatives 
and other rural electric utilities in developing renewable 
energy to serve the needs of rural communities or for rural 
economic development. Grants may be used to help pay for 
renewable energy project feasibility studies and technical 
assistance. Loans are available for other costs associated with 
a project. The amendment provides $9,000,000 in each of fiscal 
years 2002-2006. (Section 904)
      The Conference substitute adopts the House provision. 
(Section 6013)
      The Managers encourage the Secretary to use existing 
authorities to provide loans, loan guarantees and grants to 
rural electric cooperatives and other electric utilities to 
promote the development of economically and environmentally 
sustainable renewable energy projects to serve the needs of 
rural communities or to promote rural economic development.
(15) Carbon Sequestration Demonstration Program
      The Senate amendment establishes a competitive research 
and development program to test the methodologies by which 
private parties may pay farmers and foresters a market-based 
fee to store carbon and to otherwise reduce net emissions of 
greenhouse gases. Under this program, the Department of 
Agriculture would share in the costs of monitoring, verifying 
and auditing such trades on a demonstration basis and would 
also make grants to researchers to establish the best 
methodologies for measuring additional carbon sequestration in 
soils and plants. The section authorizes appropriations of 
$20,000,000 annually. (Section 905)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision. 
Some of the goals of this section are incorporated into Section 
9009.
(16) Sense of Congress Concerning National Renewable Fuels Standard
      The Senate amendment expresses the sense of Congress that 
a national renewable fuels program should be adopted and that 
the Department of Agriculture should ensure that its policies 
and programs promote the production of fuels from renewable 
fuel sources. (Section 906)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(17) Continuation of the Bioenergy Program
      The House bill requires the Secretary to include animal 
fats, agricultural by-products, and oils as eligible 
commodities under the existing Bioenergy Program (7 CFR 1424). 
(Section 922)
      The Senate amendment expresses the sense of Congress that 
biofuel production capacity will be needed to phase out methyl 
tertiary butyl ether in gasoline, and because of the dependence 
of the United States on foreign oil, the bioenergy program of 
the Department of Agriculture should be continued and expanded. 
(Section 907)
      The Conference substitute deletes both provisions, and 
instead authorizes the continuation of the Commodity Credit 
Corporation Bioenergy Program and includes animal byproducts 
and fat, oils and greases (including recycled fats, oils and 
greases) as eligible commodities. The conference substitute 
provides a total of $204 million to fund this program during 
fiscal years 2003-2006. (Section 9010)
      The Managers encourage the Secretary to investigate the 
feasibility of utilizing wheat that has been infested with 
karnal bunt spores, and for which a market is not readily 
available, in the operation of the Commodity Credit Corporation 
Bioenergy Program.
      General Intent--Title IX. The Managers intend for all 
reports to Congress required under Title IX to be transmitted 
to the Senate Committee on Agriculture, Nutrition and Forestry; 
the House Committee on Agriculture; the House Committee on 
Energy and Commerce and the House Committee on Science.
      The Managers intend for the Secretary to identify and 
incorporate the mission of Title IX and the strategy for 
implementation as part of the reporting required by the 
Government Performance and Results Act.

                   Title X--Miscellaneous Provisions

                  Subtitle A--Tree Assistance Program

(1) Eligibility
      The House bill requires the Secretary of Agriculture to 
provide assistance to eligible orchardists that planted trees 
for commercial purposes but lost such trees as a result of a 
natural disaster. Orchardists qualify for assistance only if 
tree mortality exceeds 15%. (Section 901)
      The Senate amendment amends Sec. 194 of the Federal 
Agriculture Improvement Act of 1996 as follows: Sec. 194(b) 
requires the Secretary of Agriculture to provide assistance to 
eligible orchardists that planted trees for commercial purposes 
but lost such trees as a result of a natural disaster. 
Orchardists qualify for assistance only if tree mortality 
exceeds 15%. (Sec. 1062)
      The Conference substitute adopts the House provision. 
(Sec. 10202)
(2) Assistance
      The House bill amends the Tree Assistance Program 
authorized by the Disaster Assistance Act of 1988 to establish 
a reimbursement of either 75% of the cost of replanting 
eligible trees lost or, at the discretion of the Secretary, 
sufficient seedlings to reestablish the stand. (Sec. 902)
      The Senate amendment amends Sec. 194(c)(1) consists of 
either reimbursement of 75% of the cost of replanting eligible 
trees lost or, at the discretion of the Secretary, sufficient 
seedlings to reestablish the stand. (Sec. 1062)
      The Conference substitute adopts the House provision. 
(Sec. 10203)
(3) Limitation on Assistance
      The House bill establishes that a limit on payments per 
person may not exceed $50,000 or an equivalent value in tree 
seedlings; requires the Secretary to issue regulations defining 
a person; and requires the Secretary to issue regulations 
prescribing rules to ensure a fair and reasonable application 
of the limitation established under this section. (Sec. 903)
      The Senate amendment amends Sec. 194(c)(2) by setting 
payment limitations per person to not exceed $100,000 or an 
equivalent value in tree seedlings; requires the Secretary to 
issue regulations defining a person; and requires the Secretary 
to issue regulations prescribing rules to ensure a fair and 
reasonable application of the limitation established under this 
section. (Sec. 1062)
      The Conference substitute adopts the House provision with 
an amendment that a payment limitation per person may not 
exceed $75,000 or an equivalent in tree seedlings. (Sec. 10204)
(4) Definitions
      The House bill defines eligible orchardist, natural 
disaster and tree. (Sec. 904)
      The Senate amendment defines Sec. 194 (a) eligible 
orchardist, natural disaster, tree and Secretary. These 
definitions are very similar to the House bill, with one 
exception as follow: there is no requirement that an eligible 
orchardist owns 500 acres or less of such trees. (Sec. 1062)
      The Conference substitute adopts the House provision with 
amendments that the total quantity of acres for which a person 
shall be entitled to receive payments under this chapter may 
not exceed 500 acres and adds ``lightning'' to the definition 
of natural disaster. (Sec. 10201)
      The Senate amendment makes the Tree Assistance Program an 
authorization subject to appropriations.
      The Conference substitute adopts the Senate amendment's 
authorization of Appropriations. (Sec. 10205)
      The Managers acknowledge that assistance was provided to 
producers to compensate for losses of trees from which a crop 
is harvested under the Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies Appropriations Act of 
2000, for losses suffered in 1999, but not since that time. 
Establishment of legislative authority for the Tree Assistance 
Program does not preclude seeking assistance under any other 
authority on behalf of tree crop producers who suffered similar 
losses between January 2000 and the date of enactment of this 
Act.

                       Subtitle B--Other Matters

(5) Hazardous Fuels Reduction Grants to Prevent Wildfire Disasters and 
        Transform Hazardous Fuels to Electric Energy, Useful Heat or 
        Transportation Fuels
      The House bill (1) provides the findings of the Congress 
on hazardous fuel reduction grants; (2) authorizes the 
Secretary concerned to make a grant to a person that operates a 
biomass-to-energy facility to offset the costs incurred to 
purchase hazardous fuels from forestlands. (3) establishes the 
grants shall be equal to $5 per ton but not to exceed $10 per 
ton of hazardous fuels based on distance from source to 
facility; (4) establishes as a condition of receiving a grant 
under this section, the owner of the facility is required to 
keep records as required by the Secretary, and to award the 
Secretary or their designee access to the facility to examine 
inventory and records of the facility; (5) authorizes the 
Secretary concerned to monitor Federal lands from which 
hazardous fuels are removed and sold to a biomass-to-energy 
facility to determine and document the reduction in fire 
hazards on such lands; defines biomass-to-energy facility, 
forest biomass, hazardous fuels, and Secretary concerned; 
authorizes $50 million for each FY for the duration of the 
bill. (Sec. 921)
      The Senate amendment (1) provides findings similar to 
House version findings under Hazardous Fuels Reduction Grants; 
(2) defines ``eligible community'' as any town, township, 
municipality, or other similar unit of local government or any 
area represented by a nonprofit to promote broad-based economic 
development, and has a population of not more than 10,000, and 
is located within a county with 15% of total labor and income 
is derived from forestry and is located near forest land the 
Secretary determines poses a potential hazard, the ``hazardous 
fuels'' definition is different from the House version, only in 
that it specifies the land must be in an wildland-urban 
interface area or in an area located near an eligible 
community, Indian tribe, Secretary, and others; (3) authorizes 
the Secretary concerned to make a grant to a person that 
operates a biomass-to-energy facility to offset the costs 
incurred to purchase hazardous fuels from forestlands. The 
Secretary shall select recipients based on planned purchases of 
hazardous fuels and the anticipated associated wildfire risk 
reduction; (4) establishes the grant amounts shall be equal to 
$5 per ton but not to exceed $10 per ton of hazardous fuels 
based on distance from source to facility; OR based on the 
distance from source to facility and the cost of removal of 
fuels; (5) establishes a grant shall not exceed $1.5 million 
for any facility for any year with the exception of a small 
facility with an annual production of 5 megawatts or less; 
provides the monitoring of grants is very similar to House 
version, but with a little more detail; (6) authorizes the 
Secretary concerned shall monitor Federal lands from which 
hazardous fuels are removed and sold to a biomass-to-energy 
facility to determine and document the reduction in fire 
hazards on such lands; (7) authorizes $50 million for each FY 
for the duration of the bill. (Sec. 809)
      The Conference substitute deletes both the House and 
Senate provisions.
(6) Bioenergy Program
      The House bill requires the Secretary to include animal 
fats, agricultural by-products, and oils as eligible 
commodities under the existing Bioenergy Program (7 CFR 1424). 
(Sec. 922)
      The Senate amendment establishes the Sense of Congress 
that Ethanol and Biodiesel production capacity will be needed 
to phase out MTBE and U.S. dependence on foreign oil and that 
the Bioenergy Program (7 CFR 1424) should be continued and 
expanded. (Sec. 907)
      The Conference substitute deletes both provisions, and 
instead authorizes the continuation of the Commodity Credit 
Corporation Bioenergy Program and includes animal byproducts 
and fat, oils and greases (including recycled fats, oils and 
greases) as eligible commodities. The conference substitute 
provides a total of $204 million to fund this program during 
fiscal years 2003-2006. (Section 9010)
(7) Availability of Section 32 Funds
      The House bill amends the second undesignated paragraph 
of section 32 of 7 U.S.C. 612c by striking $300,000,000 and 
inserting $500,000,000. (Sec. 923)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 10602)
(8) Seniors Farmers Market Nutrition Program
      The House bill allows the Secretary to use $15,000,000 of 
CCC funds for each of fiscal years 2002 through 2011 to carry 
out and expand a seniors farmers' market nutrition program. 
Further explains purposes of program. (Sec. 924)
      The Senate amendment requires the Secretary of the 
Treasury to transfer $15,000,000 30 days after enactment and 
each fiscal year 2003 through 2006 to the Secretary of 
Agriculture to carry out and expand a seniors farmers' market 
nutrition program. Further explains purposes of program. (Sec. 
459)
      The Conference substitute adopts the House provision with 
an amendment to provide $5 million in 2002, $15 million per 
year thereafter 2003 through 2007 (The program already received 
$10 million for FY2002 in the Agriculture, Rural Development, 
Food and Drug Administration, and Related Agencies 
Appropriations Act, 2002.). (Sec. 4402)
(9) Federal Marketing Order for Cane Berries
      The House bill requires the Secretary to issue a Federal 
marketing order for producers and processors of cane berries 
grown in the United States. (Section 925)
      The Senate amendment provides marketing orders for 
producers of cane berries. (Sec. 161)
      The Conference substitute adopts the Senate provision. 
(Sec. 10601)
      A Federal Marketing Order for cane berries will allow 
producers to promote orderly marketing through collectively 
influencing the supply, demand or price and to pool resources 
to finance research and promotion. Producers need this tool to 
address low prices due, in part, to overproduction.
(10) National Appeals Division
      The House bill provides that if an appellant prevails at 
the regional level in an administrative appeal of a decision by 
the National Appeals Division, the Agency may not pursue an 
administrative appeal of that decision to the national level. 
(Sec. 926)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(11) Outreach and Assistance for Socially Disadvantaged Farmers and 
        Ranchers
      The House bill amends the outreach program for socially 
disadvantaged farmers and ranchers contained in Sec. 2501 of 
the Food, Agriculture, Conservation and Trade Act of 1990 by 
increasing the authorization of appropriations from $10 million 
in each fiscal year to $25 million and further explains 
assistance and eligibility. (Sec. 927)
      The Senate amendment is similar except that subsection 
(a)(5)(B) allows for interagency funding and subsection (b) 
adds ``gender'' to the definition of ``Socially Disadvantaged 
Group''. (Sec. 1054)
      The Conference substitute adopts the Senate language with 
an amendment to strike the reference to ``gender,'' and 
maintain eligibility for certain institutions. (Sec. 10707)
(12) Reference to Sea Grass and Sea Oats as Crops Covered by Noninsured 
        Crop Disaster Assistance Program
      The House Bill amends Section 196(a)(2)(B) of the Federal 
Agriculture Improvement and Reform Act of 1996 to include sea 
oats and sea grass as crops covered by Noninsured Crop Disaster 
Assistance Program. (Section 929)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 10101)
(13) Operation of Graduate School of Department of Agriculture
      The House bill requires that contracts entered into 
between the USDA Graduate School and Federal agencies for 
educational, training, and professional development activities 
must be open to competitive bidding with the private sector. 
(Sec. 930)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
an amendment striking section 1669 of the Food, Agriculture, 
Conservation, and Trade Act of 1990, adding an audit authority 
to section 921 of the Federal Agriculture Improvement Reform 
Act of 1996, and delaying the effective date of the amendment 
to October 1, 2002. (Sec. 10705)
(14) Assistance for Livestock Producers
      The House bill authorizes, subject to appropriations, 
assistance for livestock and dairy producers who have suffered 
economic losses. (Sec. 931)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 10104)
(15) Compliance With Buy American Act
      The House bill prevents the use of funds, under the Act, 
from being used by any producer, person, or entity that does 
not agree to comply with the Buy American Act in the 
expenditure of such funds; expressed the Sense of Congress that 
producers and other recipients of funds should, in expending 
the funds, purchase only American-made equipment, products, and 
services; and the directs Secretary to provide to each 
recipient of funds a notice describing these requirements. 
(Sec. 932)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(16) Report Regarding Genetically Engineered Foods
      The House bill instructs the Secretary, through the 
National Academy of Sciences to complete and transmit a report 
to Congress including the data and test needed to assess human 
health risk from consumption of genetically engineered foods; 
the types of monitoring systems that should be created for 
future assessment; and a federal regulatory structure to 
approve such foods as safe for human consumption. (Sec. 933)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(17) Market Name for Pangasius Fish Species
      The House bill clarifies that the term catfish may not be 
considered a common or usual name for the fish Pangasius 
bocourti, or any other fish not classified within the family 
Ictalariidae, including the importation of such fish pursuant 
to section 801 of the Federal Food, Drug and Cosmetic Act. 
(Section 934)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision with 
amendment to clarify labeling restrictions of catfish pursuant 
to the Federal Food, Drug and Cosmetic Act. (Sec. 10806)
(18) Program of Public Education Regarding Use of Biotechnology in 
        Producing Food for Human Consumption
      The House bill instructs the Secretary to develop and 
implement a program to communicate with the public regarding 
the use of biotechnology in producing food for human 
consumption, including science-based evidence of the safety of 
such foods and the human outcomes of biotechnology used to 
produce food for human consumption. (Sec. 935)
      The Senate amendment contains no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 10802)
(19) GAO Study
      The House bill instructs the Comptroller General to 
conduct a study and make findings and recommendations with 
respect to determining how producer income would be affected by 
updating yield bases. The comptroller shall submit a report to 
Congress not later than 6 months after the date of enactment. 
(Sec. 936)
      The Senate amendment contained no comparable provision.
      The Conference substitute adopts the House provision. 
(Sec. 10903)
(20) Interagency Task Force on Agricultural Competition
      The House Bill instructs the Secretary to, within 90 days 
of enactment, establish an Interagency Task Force on 
Agricultural Competition, consisting of 9 employees of the 
Department of Agriculture and the Department of Justice. The 
task force shall conduct hearings to review the lessening of 
competition among purchases of livestock, poultry, and 
unprocessed agricultural commodities. The task force shall 
submit a report to the committee of Agriculture in both the 
House and the Senate within 1 year after the last member of the 
task force is appointed. (Sec. 937)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(21) Authorization for Additional Staff and Funding for the Grain 
        Inspection, Packers, and Stockyards Administration
      The House bill authorizes to be appropriated such sums as 
are necessary to enhance the capability of GIPSA to monitor, 
investigate, and pursue the competitive implications of 
structural changes in the meat packing industry. Sums are 
specifically earmarked to hire litigating attorneys to allow 
GIPSA to more comprehensively and effectively pursue its 
enforcement activities. (Sec. 938)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(22) Enforcement of the Humane Methods of Slaughter Act of 1958
      The House bill (1) added the following findings:
            Public demand for passage of P.L. 85-765;
            The Humane Method of Slaughter Act of 1958 requires 
        that animals be rendered insensible to pain when they 
        are slaughtered;
            Scientific evidence indicates that treating animals 
        humanely result in tangible economic benefits;
            The United States Animal Health Association passed 
        a resolution to encourage strong enforcement of the 
        Act;
            The Secretary of Agriculture is responsible for 
        enforcing the Act, including monitoring and compliance;
      (2) expressed the Sense of Congress that the Secretary 
should fully enforce P.L. 85-765 by ensuring humane methods in 
the slaughter of livestock; and (3) determined it is the policy 
of the U.S. that the slaughter of livestock and handling of 
livestock in connection with slaughter shall be carried out 
only by humane methods, as proved by P.L. 85-765. (Sec. 939)
      The Senate amendment provided for the same general intent 
as the House provision, but with drafting differences. (Sec. 
1067)
      The Conference substitute adopts the House provision with 
an amendment eliminating Congressional findings. In Sec. 
1067(1)(A) ``resume'' is changed to ``continue'' with regard to 
the reporting requirement. The Managers expect the Department 
to include a report on violations of this Act in its annual 
report to Congress. (Sec. 10305)
(23) Penalties and Foreign Commerce Provisions of the Animal Welfare 
        Act
      The House bill increased the penalties provided by 
current law, by raising the maximum penalty for violation from 
$5,000 to $15,000 and raising the maximum imprisonment for 
violation from 1 year to 2 years and also closes the ``foreign 
commerce loophole'' by prohibiting transportation of animals 
for fighting purposes from any state into any foreign country 
effective 30 days after enactment. (Sec. 940)
      The Senate amendment is identical to the House provision. 
(Sec. 1052)
      The Conference substitute also provides an amendment to 
eliminate the increase in maximum prison terms found in the 
House and Senate provision. (Sec. 10303)
(24) Prohibition on Interstate Movement of Animals for Animal Fighting
      The House bill amends Sec. 26(d) of the Animal Welfare 
Act to prohibit the interstate shipment of birds for fighting 
purposes. (Sec. 941)
      The Senate amendment is identical to the House provision. 
(Sec. 1053)
      The Conference substitute made technical changes to make 
it illegal ship a bird in interstate commerce for the purpose 
of engaging in a animal fight and further, makes it illegal to 
fight a bird in a fight in which any bird in the fight was 
transported illegally. (Sec. 10302)
(25) Renewable Energy Resources
      The House bill expands the purpose of the Environmental 
Quality Incentives Program to include assistance to farmer and 
ranchers for the assessment and development of their on-farm 
renewable resources, including biomass for production of power 
and fuel, wind and solar. (Section 942a)
      The House bill also provides that the Secretary of 
Agriculture, through the Cooperative State Research, Education, 
and Extension Service and, to the extent practicable, in 
collaboration with the Natural Resources Conservation Service, 
regional biomass programs under the Department of Energy, and 
other appropriate entities, may provide education and technical 
assistance to farmers and ranchers for the development and 
marketing of renewable energy resources, including biomass for 
the production of power and fuels, wind, solar, and geothermal. 
(Section 942b)
      The Senate amendment provides that the Secretary, acting 
through the Cooperative State Research, Education, and 
Extension Service in consultation with the Natural Resources 
Conservation Service, regional biomass programs under the 
Department of Energy, and other entities as appropriate, may 
provide for education and technical assistance to farmers and 
ranchers for the development and marketing of renewable energy 
resources. The Secretary may retain up to 4 percent to pay 
administrative expenses incurred in carrying out this section. 
(Section 902)
      The Conference substitute deletes both the House and 
Senate provisions.
      The Managers encourage the Cooperative State Research, 
Education, and Extension Service to provide education and 
technical assistance to agricultural producers for the 
development of renewable energy resources. Such assistance 
should enable producers to become more energy efficient and 
provide for the development and marketing of renewable energy 
resources. In assisting producers, the Cooperative Extension 
Service may consult with other entities as appropriate.
(26) Use of Amounts Provided for Fixed, Decoupled Payments to Provide 
        Necessary Funds for Rural Development Programs
      The House bill reduces the total amount payable under 
Sec. 104 (Fixed Decoupled Payments) of the Act on a pro rata 
basis, so that the total amount of such reductions equals 
$100,000,000, fiscal years 2002-2001.
      The House bill expends such sums as follows:
      (A) $45,000,000 for grants under 306A of the Consolidated 
Farm and Rural Development Act (relating to the community water 
assistance grant program);
      (B) $45,000,000 for grants under 613 of this Act 
(relating to the pilot program for development and 
implementation of strategic regional development plans); and 
(C) $10,000,000 for grants under section 231(a)(1) of the 
Agricultural Risk Protection Act of 2000 (relating to value-
added agricultural product market development grants). (Section 
943)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(27) Country of Origin Labeling of Perishable Agricultural Commodities
      The House bill amends the Perishable Agricultural 
Commodities Act, 7 U.S.C. 499a, to mandate country of origin 
labeling on all perishable agriculture commodities, including 
both imported and domestically produced commodities by adding 
the following sections:
      Sec. 18(a) A retailer of a perishable agricultural 
commodity shall inform consumers, at the final point of sale of 
the perishable agricultural commodity to consumers, of the 
country of origin of the perishable agricultural commodity. 
This applies to both imported and domestically produced 
commodities.
      Sec. 18(b) Provides an exemption for the labeling 
requirements for perishable agricultural commodities that are 
prepared in a food establishment, sold or offered for sale at 
the food service establishment in normal retail quantities and 
served to consumers at the food service establishment.
      Sec 18(c) The information regarding the country of origin 
may be provided to consumers via a label, stamp, mark, placard, 
or other clear and visible sign on the perishable agricultural 
commodity or on the package, display, holding unit, or bin 
containing the commodity at the final point of sale to 
consumers. A retailer is not required to provide any additional 
information on a commodity that has already been individually 
labeled with the country of origin by the packer, importer, or 
other individual.
      USDA may assess Sec. 18(d) Civil penalties ($1,000 for 
the first day the violation occurs; $250 for each day the 
violation continues) against any retailer who fails to indicate 
the country of origin.
      Sec. 18(e) Amounts collected under subsection (d) shall 
be deposited in the Treasury.
      The House bill states the provision would take effect six 
months following enactment. (Section 944)
      The Senate amendment amends the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1621 et seq.). Sec. 281 & Sec. 282(a)(1) 
requires labeling for muscle cuts and ground beef, lamb and 
pork as well as farm-raised fish and shellfish (including 
steaks, nuggets and any other flesh from farm raised fish and 
shellfish) and produce as defined in the Perishable 
Agricultural Commodities Act.
      Sec. 282(a)(2) Only those products that are exclusively 
born, raised and slaughtered, hatched, raised, harvested, and 
processed and produced in the U.S. may be designated as U.S. 
country of origin.
      Sec 282(b) Subsection (a) shall not apply if the covered 
commodity is prepared or served in a food service establishment 
and offered for sale or sold at the food service establishment 
in normal retail quantities or served to consumers at the food 
service establishment.
      Sec. 282(c) The information regarding the country of 
origin may be provided to consumers via a label, stamp, mark, 
placard, or other clear and visible sign on the perishable 
agricultural commodity or on the package, display, holding 
unit, or bin containing the commodity at the final point of 
sale to consumers.
      Sec. 282(d) Those who prepare, store, handle or 
distribute a covered commodity shall maintain a verifiable 
record keeping an audit trail.
      Sec. 282(e) Any person engaged in the business of 
supplying a covered commodity to a retailer shall provide 
information to the retailer indicating the country of origin of 
the covered commodity.
      Sec. 282(f) The Secretary shall not establish a mandatory 
identification system to verify the country of origin of a 
covered commodity. Model certification programs the Secretary 
can use for verification purposes include the carcass grading 
system, voluntary country of origin beef labeling system, and 
those systems used to carry out market access program under the 
Agricultural Trade Act and the National School Lunch Act.
      Sec. 283 The Secretary of USDA will notify a retailer if 
a violation is found, give the retailer 30 days to cure, 
provide notice and an opportunity for a hearing and may fine 
the retailer in an amount determined by the Secretary.
      Sec. 284 The Secretary may promulgate regulations and may 
enter into partnerships with individual states for enforcement 
purposes.
      Sec. 285 Takes effect 180 days following enactment. (Sec. 
1001)
      The Conference substitute adopts the Senate language with 
an amendment to provide for the implementation of two-years of 
voluntary guidelines to precede mandatory labeling. The 
exclusion from a covered commodity has been further defined to 
include items that are an ingredient in a processed food item. 
The Conference substitute provides that animals trans-shipped 
from Alaska or Hawaii through Canada shall be eligible to be 
designated as ``U.S. Country of Origin'' as long as the period 
of trans-shipment does not exceed 60 days. (Sec. 10506)
(28) Unlawful Stockyard Practices Involving Nonambulatory Livestock
      The House bill amends Title III of the Packers and 
Stockyards Act, 1921 by adding following on Sec. 318:
      Sec. 318(a) defines the terms: humanely euthanize and 
nonambulatory livestock.
      Sec. 318(b)(1) It shall be unlawful for any stockyard 
owner, market agency, or dealer to buy, sell, give, receive, 
transfer, market, hold, or drag any nonambulatory livestock 
unless the nonambulatory livestock has been humanely 
euthanized.
      Sec. 318(b)(2) provides exceptions.
      Sec. 318 (c) stipulates that the application of this 
prohibition is to commence one year after enactment of the Farm 
Security Act of 2001. The Secretary shall promulgate 
regulations to carry out this section. (Sec. 945)
      The Senate amendment is a substantively identical 
provision with the following difference: Sec. 318(c) stipulates 
that the application of this prohibition is to commence one 
year after enactment of the Agriculture, Conservation, and 
Rural Enhancement Act of 2002. (Sec. 1045)
      The Conference substitute adopts the House provision with 
an amendment torequire the Secretary to investigate the problem 
of nonambulatory livestock and report the findings to Congress. Based 
on the findings of the report the Secretary shall promulgate 
regulations if the Secretary deems them necessary to regulate the 
humane treatment, handling and disposition of nonambulatory livestock. 
The Conference substitute provides for investigative and penalty 
authority consistent with the Animal Health Protection Act. (Sec. 
10502)
(29) Annual Report on Imports of Beef and Pork
      The House bill requires the Secretary of Agriculture to 
submit to Congress an annual report on the amount of beef and 
pork that is imported into the U.S. each calendar year. (Sec. 
946)
      The Senate amendment contains no comparable provision.
      The Conference substitute deletes the House provision.
(30) Quality Grade Labeling of Imported Meat and Meat Food Products
      The Senate amendment amends the Agricultural Marketing 
Act of 1946 (7 U.S.C. 1621 et seq.):
      Sec. 291 defines the Secretary;
      Sec. 292 prevents an imported carcass, part thereof, 
meat, or meat food product (as defined by the Secretary) from 
bearing a quality grade label issued by the Secretary;
      Sec. 293 Secretary to promulgate regulations. (Sec. 1002)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(31) Continuous Coverage
      The Senate amendment amends Section 508(e)(4) of the 
Federal Crop Insurance Act to impose a permanent prohibition on 
the availability of continuous coverage. (Sec. 1012)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 10002)
(32) Quality Loss Adjustment Procedures
      The Senate amendment amends Sec. 508(m) of the Federal 
Crop Insurance Act to require the Federal Crop Insurance 
Corporation to implement quality loss adjustment procedure 
review recommendations effective for the 2003 reinsurance year. 
(Sec. 1013)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to implement recommendations effective for 
the 2004 reinsurance year and provides additional language to 
require the Secretary, for purposes of quality loss adjustment 
under the Federal crop insurance program, to allow certain 
classifications of warehouse operators to make adjustments for 
quality. Should the Secretary find that this provision causes 
fraud and abuse of the Federal crop insurance program by 
warehouse operators, the Managers intend for the Secretary to 
take appropriate measures against those operators to alleviate 
the problem. (Sec. 10003)
      It is the intent of the Managers that quality loss 
adjustments reflect market discounts in the year of adjustment. 
The term ``local'' outlined in Section 508(m) of the Federal 
Crop Insurance Act may include discounts determined based on 
regional surveys.
(33) Conservation Requirements
      The Senate Amendment amends Section 1211(1) and Section 
1221(b) of the Food Security Act of 1985 and Section 519(b) of 
the Controlled Substances Act to prohibit the issuance of an 
indemnity payment under the Federal Crop Insurance Act to a 
producer who has planted on highly erodible land, converted 
wetland, or has produced a controlled substance (Sec. 1014).
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(34) Animal Health Protection
      The Senate amendment provides for the consolidation and 
updating of existing animal health authorities at USDA. (Sec. 
1021 to Sec. 1038)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments (1) regarding the definition of disease 
(S1023.CR10403) (2) requires notification to the Secretary of 
Treasury as well as public notification regarding development 
of rules on restrictions of imports (S1024. CR10404) (3) 
directs the Secretary of Agriculture to consult with State 
animal health officials and veterinary health professionals 
regarding the establishment of the veterinary accreditation 
program, gives guidelines for suspension or revocation of 
accreditation of any veterinarian accredited under this 
subtitle that violates this subtitle, and clarifies that the 
criminal and civil penalties in section 1034 shall not apply to 
violations of this section that are not violations of any other 
provision of this subtitle (S1030. CR10410) (4) establishes 
increased criminal penalties in cases of violations of the 
Animal Health Protection Act involving persons knowingly 
destroying records or moving pests in commerce for 
distribution. Criminal penalties are likewise increased in 
cases of persons who have committed multiple violations of the 
Animal Health Protection Act. Strike the provision of Section 
1034 regarding criminal and civil penalties relating to 
suspension or revocation of accreditation. (S1034. CR10414) (5) 
authorization of appropriations and to provide for more 
efficient management of declarations of extraordinary 
emergencies and transfer of funds from the Commodity Credit 
Corporation (S1037. CR10417) (6) strikes the repeal of the 
Pseudorabies Eradication Program which is reauthorized in the 
Conference substitute in Section 10507. (S1038. CR10418)
      The managers recognize that the principal purpose of the 
Animal Health Protection Act is to protect against animal 
disease. With this in mind, the managers have considered 
numerous options with regard to a statutory definition of 
disease. In considering these options, the managers were 
concerned that an overly broad definition could result in 
litigation forcing the Agency to divert scarce resources to 
protecting against conditions which have little if anything to 
do with the scientific understanding of disease. Likewise, the 
managers were equally concerned that an arbitrarily narrow 
definition would limit the ability of the Agency to respond to 
as of yet unknown threats to animal health. The managers have 
therefore concluded that in order for the Agency tohave maximum 
flexibility to focus it's resources and respond to new or emerging 
disease threats that a regulatory definition of disease should be left 
to the discretion of the Secretary. In so doing, the managers strongly 
encourage the Secretary to continually reexamine the principal 
definitions developed during implementation of this statute and make 
such changes as deemed necessary to achieve the goal of protecting 
animal health.
      It is also the Managers intent that nothing in the Act 
should be construed in a manner that will unduly restrict or 
delay the importation, export, or transportation of biomedical 
research materials, including tissues, specimens, samples, 
animal embryos, or animals designated for use in research. The 
Managers do not expect the Secretary to issue any rule or 
regulation that would unduly restrict or delay the importation, 
export, or transportation of biomedical research materials, 
including tissues, specimens, samples, animal embryos, or 
animals designated for use in research.
      It is the Managers understanding that Veterinary 
Services, within the United States Department of Agriculture's 
Animal and Plant Health Inspection Service (APHIS), has a long 
history of cooperation with the veterinary community in 
performing important regulatory work nationwide. Private 
practitioners were first used to perform regulatory work in 
1907. However, the current voluntary accreditation program 
(National Veterinary Accreditation Program) officially began in 
1921, when USDA, Bureau of Animal Industry, administered the 
first accreditation examination to certify practitioners as 
representatives of the Federal government. Accredited 
veterinarians are the backbone of U.S. regulatory programs for 
livestock and poultry diseases. The overriding goal of the 
National Veterinary Accreditation Program is for Veterinary 
Services, veterinarians, State Animal Health Officials and 
veterinary colleges to work cooperatively toward the goal of 
protecting and improving the health, quality, and marketability 
of U.S. animals. Increased collaboration will be crucial to the 
success of new enhancements to this program. It is the intent 
of the Managers that APHIS' existing Veterinary Accreditation 
Program and implementing regulations continue unimpeded 
pursuant to section 1038(c). With regard to future revisions by 
APHIS to its Veterinary Accreditation Program, the Managers 
strongly encourage APHIS' Veterinary Services to consult with 
State animal health officials and veterinary professionals, 
including State Veterinary Medical Associations and private 
veterinary practitioners.
      The Managers note that USDA currently is evaluating three 
rapid screening tests to determine which is the most sensitive 
and effective at detecting scrapie. Ensuring proper screening 
and testing, and, where necessary, the eradication of animal 
diseases, is of paramount importance to American Agriculture, 
USDA, the Congress, and the American people. With the stakes to 
animal health and the farm economy so high, the U.S. government 
should use the very best methods available to detect animal 
diseases. Accordingly, the Managers request that USDA use 
science-based criteria to evaluate the tests under review and 
invite third-party animal health diagnostic test experts to 
review preliminary findings and evaluation methodology.
      The purpose of the Animal Health Protection Act is to 
address pest and disease threats to animal health and 
production. The managers do not intend for the Animal Health 
Protection Act to be used to manage or control predation. The 
Managers expect the Secretary of Agriculture to continue to use 
the authorities under the Act of March 2, 1931 (7 U.S.C. 426-
426b) as amended.
      In a case of extraordinary emergency, the section 
regarding seizure, quarantine, and disposal provides express 
authority in the Secretary to hold, seize, treat, and apply 
other remedial actions to destroy or otherwise dispose of any 
animal. However, nothing in this section or in this title 
should be construed as impliedly vesting in the Secretary 
authority to manage fish or wildlife populations. If fish or 
wildlife is affected by control or eradication measures 
proposed by the Secretary in an extraordinary emergency, the 
Managers expect that the Secretary will consult with officials 
of the State agency having authority for protection and 
management of such wildlife, as is the current practice in such 
instances.
(35) Pesticide Fees
      The Senate amendment (1) amends the FIFRA, with respect 
to the pesticide registration maintenance fee system, to: (a) 
make uniform the amount of the annual fee for each 
registration; (b) set maximum amounts payable by a registrant 
and an increased aggregate amount of collected fees; (c) expand 
the definition of a small business; and (d) extend the 
authority to collect such fees and the prohibition on levy of 
fees other than those specified in the Act's fee provisions; 
(2) extends the requirement that the Administrator use 
maintenance fees to ensure expedited processing of similar 
applications and adds a requirement that the fees be used to 
review inert ingredients; (3) the Administrator the authority 
to change current fee amounts by the same percentage as the 
annual adjustment to the Federal General Schedule pay scale. If 
fully implemented the total cost of the provision will be $214 
million over 4 years. (Sec. 1041)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      On June 9, 1999, EPA proposed a rule, ``Pesticides; 
Tolerance Processing Fees Proposed Rule,'' 64 FR 31039, Docket 
Number OPP-30115. EPA proposed to increase tolerance fees 
dramatically and to collect fees retroactively back to 1996. 
The Managers question the legal basis and are concerned about 
imposing fees retroactively and with the proposed level of 
fees. Retroactive imposition of increased tolerance fees, if 
imposed, could result in unnecessary loss of valuable pesticide 
products for American farmers. The Managers strongly encourage 
the EPA to withdraw its proposed tolerance fee rule, and 
instead, work with the appropriate oversight committees in the 
House of Representatives and the U.S. Senate to develop 
comprehensive pesticide user fee legislation.
      The Managers continue to be concerned that the 
Administrator has yet to issue protocols for the issuance of 
registrations for antimicrobials under the Food Quality 
Protection Act. The Managers expect the Administrator to 
expeditiously develop and implement these protocols. The 
Managers further expect the Administrator to give full 
consideration to an exemption under Sec. 25(b) of the Federal 
Insecticide, Fungicide and Rodenticide Act (7 U.S.C. 136) for 
antimicrobial products approved for use in food packaging 
immediately before aseptic fill.
(36) Pest Management in Schools
      The Senate amendment amends FIFRA to create a new section 
33, ``School Environment Protection Act of 2002'' that requires 
Pest Management in Schools. Requires states to develop pest 
management plans as part of state cooperative enforcement 
agreements with the EPA. Sets requirements for what should be 
included in plans and requires the EPA to distribute guidelines 
to states no later than one year after enactment, after which 
State educational agencies would be required to develop plans 
andsubmit them to the Administrator for approval. Local 
education agencies would be required to implement their state plan 
within one year of receiving it. (Sec. 1042).
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(37) Packer Ownership
      The Senate amendment amends Section 202 of the Packers 
and Stockyards Act of 1921 (7 U.S.C. 192(f)) (as amended by 
section 1043(a)) by banning ownership or control of livestock 
by a packer prior to 14 days before slaughter. An exemption 
from the ban is provided for any packer that is a cooperative 
entity with a majority ownership interest held by livestock 
producers who own, feed or control their own livestock which 
are provided to the cooperative for slaughter, or for any 
packer who kills less than 2 percent of the total U.S. annual 
slaughter for that type of livestock. In general, the ban 
becomes effective upon enactment of the Act, but packers of 
swine would not be required to complete livestock divestitures 
until 18 months following the enactment of the Act. For packers 
of any other type of livestock, the ban would become effective 
no later than 180 days following enactment of the Act. (Section 
1043, amended by Sec. 1072 of the Senate amendment below).
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers recognize the importance of Congress holding 
hearings to address issues affecting livestock producers, such 
as agribusiness consolidation, and livestock marketing issues.
(38) Packers and Stockyards
      The Senate amendment (1) amends Section 2(a) of the 
Packers and Stockyards Act by adding definitions of `livestock 
contractor', `livestock production contract', and `livestock 
production contract grower'; (2) Amends sections 202, 203, 205, 
204, 308, 401, and 403 of the P&S Act to include ``livestock 
contractor'' as a covered entity under the P&S Act; (3) adds 
new section 417 to the P&S Act that allows, notwithstanding a 
provision of a livestock or poultry contract, a party to the 
contract to discuss terms of the contract with a legal advisor, 
a lender, an accountant, an executive or manager, a landlord, a 
family member, or a Federal or State agency with responsibility 
for enforcing a statute designed to protect a party to the 
contract. (Sec. 1044)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that includes only swine production 
contractors as a covered entity under the P&S Act. (Sec. 10503) 
The amendment was rewritten so that the disclosure and 
preemption provisions appear in Sec. 10504. This section 
clarifies that people can discuss contracts with state & 
federal agencies and certain other individuals. The language 
does not preempt any state law that addresses confidentiality 
provisions in contracts for the sale or production of livestock 
or poultry except any provision of state law that makes lawful 
a contract provision that prohibits a party from or limits a 
party in engaging in a discussion that this section otherwise 
requires to be permitted.
(39) Arbitration Clauses
      The Senate amendment adds No Comparable Provision 413A to 
the Packers and Stockyards Act that states that a person that 
seeks to resolve a dispute in the contract may, notwithstanding 
the terms of the contract, elect to arbitrate the dispute in 
accordance with the contract; or resolve the dispute in 
accordance any other lawful method of dispute resolution, 
including mediation and civil action. (Sec. 1046)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(40) Cotton Classification Services
      The Senate amendment amends the first sentence of section 
3a of the Act of March 3, 1927 (commonly known as the `Cotton 
Statistics and Estimates Act') by striking `2002' and inserting 
`2006'. (Sec. 1047)
      The House bill had an identical provision contained in 
the Research Title. (Sec. 740)
      The Conference substitute adopts the Senate provision 
with technical and clarifying amendments and extends the 
program through 2007. (Sec. 10801)
(41) Protection for Purchasers of Farm Products
      The Senate amendment (1) amends Section 1324 subsection 
(c)(4)(B) of the Food Security Act of 1985 by striking signed, 
and inserting signed, authorized, or otherwise authenticated by 
the debtor and (2) amends subsection (c)(4) by striking 
subsection (C); (2) amends subsection (c)(4)(D)(iv) by striking 
applicable and all that follows and inserting applicable, and 
the name of each county or parish in which the farm products 
are growing or located; (3) redesignates subparagraph 
numbering; (4) amends subsection (e)(1)(A)(ii)(IV) by striking 
crop year, and all that follows and inserting crop year, and 
the name of each county or parish in which the farm products 
are growing or located; (5) amends subsection (c)(4)(D)(iv) by 
inserting contains before any payment; (6) the same changes are 
made in subsection (g)(2)(A). (Sec. 1048)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 10604)
(42) Improved Standards for the Care and Treatment of Certain Animals
      The Senate amendment provides for the socialization of 
puppies intended for sale as pets, and prohibits female dogs 
from being bred before they are one year old, or from having 
more than three litters every two years. The Act also 
establishes a ``three strikes'' system for AWA licensees that 
commit 3 or more serious violations of the Act over an eight-
year period. (Sec. 1049)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(43) Farmers Market Promotion Program
      The Senate amendment (1) makes minor technical changes to 
the Sec. 4 and Sec. 5 of the Farmer-to-Consumer Direct 
Marketing Act of 1976; (2) amends Sec. 5 to include a 
Development of Farmers Markets whereby the Secretary of 
Agriculture will work to train managers of farmers markets, 
develop opportunities to share information amongmanagers of 
farmers markets, develop a program to train extension service employees 
in the development of direct marketing techniques, and work with 
producers to develop farmers markets; (3) amends the Farmer-to-Consumer 
Direct Marketing Act of 1976 by adding Sec. 6 to establish the Farmers' 
Market Promotion Program to make grants to eligible entities to 
establish, expand and promote farmers' markets. (Sec. 1050)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to make minor technical changes to Section 4 
and Section 5, only authorizes the new Section 6 of the Farmer-
to-Consumer Direct Marketing Act of 1976, and further prohibits 
the use of funds appropriated under this new section for 
construction of buildings or structures. (Sec. 10605)
(44) Definition of Animal Under the Animal Welfare Act
      The Senate amendment amended the definition of animal to 
add birds, rats, and mice bred for use in research to the list 
of those animals excluded from coverage under the Animal 
Welfare Act. (Sec. 1051)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 10301)
(45) Wild Fish and Wild Shellfish
      The Senate amendment amends section 2104 of the Organic 
Foods Production Act of 1990 by inserting a new subsection (c) 
to provide, notwithstanding section 2107(a) (i.e., 
notwithstanding the requirement that an organic product be 
farm-raised), the Secretary may allow for certification and 
labeling of wild fish and wild shellfish harvested from salt 
water as organic, following a rulemaking. In doing this, The 
Secretary is required to consult with the Secretary of 
Commerce; the National Organics Standards Board; producers, 
processors, and sellers; and interested members of the public; 
and to the maximum extent practicable, the Secretary is to 
accommodate the unique characteristics of the industries in the 
United States that harvest and process wild fish and wild 
shellfish. (Sec. 1055)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(46) Assistant Secretary of Agriculture for Civil Rights
      The Senate amendment directs the Secretary to establish 
within USDA a position of Assistant Secretary of Agriculture 
for Civil Rights. President shall appoint the Assistant 
Secretary with the advice and consent of the Senate. Duties 
include enforcing and coordinating compliance with all civil 
rights laws; ensuring that USDA has measurable goals for fair 
and nondiscriminatory treatment; compiling and disclosing data 
used in assessing civil rights compliance in the socially 
disadvantaged farmer program; holding USDA agency heads and 
senior executives accountable for civil rights compliance and 
assessing their performance; ensuring that there is sufficient 
level of participation by socially disadvantaged farmers and 
ranchers in deliberations of county and area committees 
established under section 8(b) of the Soil Conservation and 
Domestic Allotment Act and that participation and election data 
are made publicly available. (Sec. 1056)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that ensures the new Assistant Secretary of 
Agriculture for Civil Rights is under the authority of the 
Secretary of Agriculture. (Sec. 10704)
(47) Transparency and Accountability for Socially Disadvantaged Farmers 
        and Ranchers; Public Disclosure Requirements for County 
        Committee Elections
      The Senate amendment:
      (1) Amends the Food, Agriculture, Conservation and Trade 
Act of 1990 by inserting Sec. 2501A to ensure compilation and 
disclosure of data to assess and hold the Department of 
Agriculture accountable for the nondiscriminatory participation 
of socially disadvantaged farmers and ranchers in programs of 
the department;
      (2) Amends Section 8(b)(5) of the Soil Conservation and 
Domestic Allotment Act by striking subparagraph (B) and 
replacing it with a modified subparagraph (B), which in 
addition to those things already required under current law: 
Requires that each solicitation of nominations for, and notice 
of elections of, a county, area, or local committee shall 
include the nondiscrimination statement used by the Secretary;
      (3) Sets forth procedure for the opening of ballots as 
follows:
      At least 10 days before the date on which ballots are to 
be opened and counted, a county, area, or local committee shall 
announce the date, time, and place at which election ballots 
will be opened and counted. Election ballots shall not be 
opened until the date and time announced. Any person may 
observe the opening and counting of the election ballots;
      (4) Requires that not later than 20 days after the date 
on which an election is held, a county, area, or local 
committee shall file an election report with the Secretary and 
the State office of the Farm Service Agency;
      (5) Requires that not later than 90 days after the date 
of the election, the Secretary shall complete a report that 
consolidates all the election data reported to the Secretary;
      (6) Provides that, if after analyzing the election data 
it is necessary, the Secretary shall promulgate proposed 
uniform guidelines for conducting elections;
      (7) Provides that the term of office for a member of a 
county, area, or local committee shall not exceed 3 years; and
      (8) provides that the Secretary shall maintain and make 
readily available to the public all the data required to be 
collected under this section. (Sec. 1057)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with amendments to require the Secretary to report 
participation rates of socially-disadvantaged farmers and 
ranchers by race, ethnicity and gender and in those instances 
when socially-disadvantaged farmers or ranchers are not 
adequately represented on a local or area committee, the 
Secretary may appoint one additional voting member to the local 
or area committee. (Sec. 10708)
(48) Animal Terrorism Penalties
      The Senate amendment amends title 18 U.S.C. 43 to revise 
and enhance criminal penalties and restitution for offenses 
against animal enterprises. Subsection (a) of existing law for 
offenses causing economic damages is revised to add a 6 month 
sentenceand/or fines for offenses involving less than $10,000 
in economic damages and increases the penalty for offenses causing more 
than $10,000 from one to three years, plus retaining fines.
      Subsection (b) is revised to increase the penalty for 
offenses causing serious bodily injury from 10 to 20 years, 
plus adding the possibility of a fine, or both, and for an 
offense causing death adding the possibility of a fine, or both 
a fine and criminal penalty, to the existing law penalties of 
life or a term of years.
      Subsection (c) is amended to allow restitution for ``any 
other economic damage resulting from the offense''. (Sec. 1058)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(49) Pseudorabies Eradication Program
      The Senate amendment amends Section 2506(d) of the Food, 
Agriculture, Conservation, and Trade Act of 1990 by striking 
`2002' and inserting `2006'. (Sec. 1059)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the Pseudorabies Eradication 
Program to 2007. (Sec. 10507)
(50) Transportation of Poultry and Other Animals
      The Senate amendment amends the FY 02 Treasury 
Appropriations measure which provides a provision allowing the 
Postal Service to require air carriers to accept as mail, day 
old poultry if the air carrier allows the shipment of any live 
animals as cargo. The Appropriations provision only covers the 
period through June 30, 2002. The Senate provision makes the 
provision in the Appropriations bill permanent. (Sec. 1060)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to include honeybees. (Sec. 10501)
(51) Emergency Grants to Low-Income, Migrant and Seasonal Farm Workers
      The Senate amendment amends Section 2281 of the Food, 
Agriculture, Conservation, and Trade Act of 1990 by specifying 
an authorization for appropriations at $40,000,000 for each 
fiscal year. (Sec. 1061)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize such sums as are necessary. 
(Sec. 10102)
(52) Preclearance Quarantine Inspections
      The Senate amendment adds a no comparable provision to 
the FACT Act to require the APHIS to conduct preclearance 
quarantine inspections at all direct departure and interline 
airports of persons, baggage, cargo and other items destined 
from Hawaii to the U.S. mainland, Guam, Puerto Rico, and the 
U.S. Virgin Islands, but provides this provision shall not be 
implemented unless the APHIS appropriation for inspection, 
quarantine, and regulatory activities is increased by 
$3,000,000 in a non-Agriculture FY 2002 appropriations act. 
(Sec. 1063)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize appropriations in fiscal year 
2003. (Sec. 10811)
(53) Emergency Loans for Seed Producers
      The Senate amendment amended Section 253(b)(5)(B) of the 
Agricultural Risk Protection Act of 2000 regarding loans to 
seed producers who were unsecured creditors of a seed company 
that filed for bankruptcy in 2000. The provision changed the 
duration of these loans from 18 months to 54 months. (Sec 1064)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to change the duration of the loans from 18 
months to 36 months. (Sec. 10103)
(54) National Organic Certification Cost Share Program
      The Senate amendment directs the Secretary of Agriculture 
(acting through the Agricultural Marketing Service) to use 
$3,500,000 of Commodity Credit Corporation funds for each of 
the fiscal years 2002 through 2004, and $3,000,000 for fiscal 
year 2005 to establish a national organic certification cost-
share program to assist producers and handlers of agricultural 
products in obtaining certification under the National Organic 
Production Program established under the Organic Foods 
Production Act of 1990. Maximum federal cost share is 75% and 
the maximum amount of a payment made to a producer or handler 
under this provision shall be $500. (Sec. 1065)
      The House Bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment providing in fiscal year 2002, $5,000,000 to 
remain available until expended to (in a cost-share manner) 
assist producers and handlers of organic agricultural products 
in obtaining certification under the National Organic 
Production Program established under the Organic Foods 
Production Act of 1990. (Sec. 10606)
      The Managers urge the Secretary to assist producers, 
processors and firms interested in shifting production into 
organic products in making this transition and, to the extent 
possible, work to eliminate unnecessary, over burdensome and 
any other barriers to this process. As soon as practicable, the 
Secretary is urged to undertake a study to ascertain the 
availability of key inputs into organic production, including 
the availability of organically produced feedstuffs for the 
organic production of livestock and poultry.
(55) Food Safety Commission
      The Senate amendment establishes the Food Safety 
Commission composed of 15 members from consumer groups; food 
processors, producers, and retailers; public health 
professionals; food inspectors; former or current food safety 
regulators; members of academia; or any other interested 
individuals. The Commission shall make specific recommendations 
that build on and implement, to the maximum extent practicable, 
the recommendations contained in the report of the National 
Academy of Sciences entitled Ensuring Safe Food from Production 
to Consumption and that shall serve as the basis for draft 
legislative language to improve the food safety system; improve 
public health; create a harmonized, central framework for 
managing Federal food safety programs (including outbreak 
management, standard-setting, inspection, monitoring, 
surveillance, risk assessment, enforcement, research, and 
education); enhance the effectiveness of Federal food safety 
resources; and eliminate, to the maximum extent practicable, 
gaps,conflicts, duplication, and failures in the food safety 
system. Not later than 1 year after the date on which the Commission 
first meets, the Commission shall submit to the President and Congress 
a comprehensive report.
      The Commission shall terminate on the date that is 60 
days after the date on which the Commission submits the 
recommendations and report. (Sec. 1066)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment providing that members be appointed by the 
President, changing the eligibility standards for appointees, 
and requiring the Commission's recommendations to include 
descriptions of how each would improve food safety. (Sec. 
10807)
      The Managers expect that the Commission shall make 
recommendations to improve public health, help create a 
harmonized framework for managing Federal food safety programs 
(including outbreak management, standard-setting, inspection, 
monitoring, surveillance, risk assessment, enforcement, 
research and education), and enhance the effectiveness of 
Federal food safety resources (including the application of all 
resources based on risk, including resources for inspection, 
research, enforcement, and education).
      The recommendations should build on, to the maximum 
extent practicable, the recommendations contained in the report 
of the National Academy of Sciences entitled `Ensuring Safe 
Food from Production to Consumption'.
(56) Penalties for Violations of Plant Protection Act
      The Senate amendment amends criminal penalty provisions 
of the Plant Protection Act (7 U.S.C. 7734) to include felony 
and misdemeanor penalties. Violations involving plant pests, 
more than 50 pounds of plants, more than 5 pounds of plant 
products, more than 50 pounds of noxious weeds, possession with 
the intent to distribute items known to be in violation of this 
Act, or any fraud involving official documents issued under 
this act shall be subject to felony penalties (not more than 5 
years imprisonment and/or not more than $25000 fine). 
Misdemeanor penalties (not more than 1 year imprisonment and/or 
not more than $1000 fine) for violations involving less than 50 
pounds of plants, less than 5 pounds of plant products, or less 
than 50 pounds of noxious weeds. Felony and misdemeanor penalty 
limits are increased for second and subsequent violations. 
Violations involving intent to harm U.S. agriculture would be 
subject to not less than 10 years, nor more than 20 years 
imprisonments and/or a fine not to exceed $500,000. Finally, 
additional sections are added authorizing criminal and civil 
forfeiture for violations other than misdemeanors. (Sec. 1068)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to establish increased criminal penalties in 
cases of violations of the Plant Protection Act involving 
persons knowingly destroying records or moving pests in 
commerce for distribution. Criminal penalties are likewise 
increased in cases of persons who have committed multiple 
violations of the Plant Protection Act. (Sec. 10810)
      The Managers encourage the Secretary to consider the need 
for the post-harvest treatment of imported and domestic 
agricultural products, and for untreated agricultural products 
moving into or through the United States, for fruit flies and 
other plant pests and diseases to improve the protection of 
domestic crops from plant pests and diseases. Such facilities 
could be located in ports of entry on the border between the 
United States and Mexico from Nogales, Arizona to Galveston, 
Texas as well as in Wilmington, North Carolina, Atlanta, 
Georgia, Gulfport, Mississippi, and Seattle, Washington.
(57) Connecticut River Atlantic Salmon Commission
      The Senate amendment changes the effective period of the 
Connecticut River Atlantic Salmon Commission from 20 to 40 
years and authorizes $9,000,000 for each of fiscal years 2002 
through 2010 to the Secretary of the Interior to carry out the 
activities of the Connecticut River Atlantic Salmon Commission. 
(Sec. 1069)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend the compact and strike the 
authorization of appropriations. (Sec. 10812)
(58) Bear Protection
      The Senate amendment prohibits movement in interstate or 
foreign commerce of bear viscera--defined as the body fluids 
and organs, not including blood or brains, of any species of 
bear. Exceptions are made for wildlife law enforcement 
purposes, and nothing in this section affects state regulation 
of bear populations or any hunting of bears allowed under state 
law and establishes civil and criminal penalties for 
violations. (Sec. 1070)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(59) Family Farmer Bankruptcy Provisions
      The Senate amendment makes permanent Chapter 12 of the 
bankruptcy code effective, October 1, 2001, the date on which 
the section lapsed. Chapter 12 covers bankruptcies where the 
total debts can be no more than $1.5 million, where 50% of the 
income and 80% of the debts are farm related. (Sec. 1071)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to extend Chapter 12 Bankruptcy through 
December 31, 2002. (Sec. 10814)
(60) Packer Ownership
      The Senate amendment adds a new subsection to the Packers 
and Stockyards Act that prohibits meatpackers from owning or 
feeding livestock directly, through a subsidiary, or through an 
arrangement that gives the packer operational, managerial, or 
supervisory control over the livestock, or over the farming 
operation that produces the livestock, to such an extent that 
the producer is no longer materially participating in the 
management of the operation with respect to the production of 
the livestock.
      Exempts from prohibition:
      1. Arrangements entered into within 14 days before 
slaughter;
      2. A cooperative or entity owned by a cooperative, if a 
majority of the ownership interest in the coop is held by 
active coop members that own, feed, or control livestock and 
provide the livestock to the coop; and
      3. A packer that is owned by producers of a type of 
livestock, if during a calendar year the packer slaughters less 
than 2 percent of the head of that type of livestock in the 
U.S. (Sec. 1072 which amends Sec. 1043)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(61) Hass Avocados
      The Senate amendment (1) amends Section 1205 to require 
the Secretary to revisit the issue of seat allocation on the 
board; (2) amends subsection (h)(1)(C)(iii) by allowing 
importers to pay the assessment ``not less than 30 days after 
the avocado clears customs, unless deemed not feasible as 
determined by the Commissioner of Customs and the Secretary''. 
(Sec. 1073)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(62) Social Security Surplus Funds
      The Senate amendment expresses the Sense of the Senate 
regarding Social Security; that no social security surplus 
funds should be used to make currently scheduled tax cuts 
permanent or for wasteful spending. (Sec. 1074)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(63) Repeal of Estate Taxes
      The Senate amendment expresses the Sense of the Senate 
that the repeal of the estate tax should be made permanent by 
eliminating the sunset provision's applicability to the estate 
tax. That estate tax provision expires on Dec 31, 2010. (Sec. 
1075)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(64) Commercial Fisheries Failure
      The Senate amendment permanently revokes Northeast U.S. 
multi-species fishing permits using a ``reverse auction,'' 
method, a method developed to remove the maximum amount of 
capacity from the fishery at the lowest possible price to the 
taxpayers. The goal is to reduce the total number of days 
multi-species fishing is allowed in certain areas off the New 
England coast because of depletion of key fish species. $10 
million is provided in CCC funds for the purpose; USDA with 
consultation with the Department of Commerce would administer 
the program. The provision provides for expedited procedures 
under an existing rule but does not prevent alternative rules 
if developed. The provision remains in effect for 1 year. (Sec. 
1076)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to authorize such sums as necessary. (Sec. 
10107)
(65) State Meat Inspection Programs
      The Senate amendment (1) requires the Secretary not later 
than September 30, 2003, to conduct a comprehensive review of 
each State meat and poultry inspection program, to include--
      An analysis of the effectiveness of the State program;
      Identification of changes necessary to enable the 
possible transformation of the State program to a State program 
that includes the mandatory requirements of the Federal Meat 
Inspection Act and the Poultry Products Inspection Act;
      (2) Requires the Secretary to obtain comment from 
interested parties in carrying out the review and authorizes 
appropriations. (Sec. 1077)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The Managers recognize that it is the policy of Congress 
to ensure that consumers continue to have access to a safe, 
wholesome, abundant and affordable supply of meat and meat food 
products. The Managers further believe the goal of providing a 
safe, wholesome, abundant and affordable supply of meat and 
meat food products throughout the United States is achieved, in 
part, through the role played by both State and Federal food 
safety inspection systems. The State and Federal meat 
inspection programs should continue to function together to 
create an inspection system that ensures food safety and 
increases consumer confidence in the food supply in both 
intrastate and interstate commerce. The Managers recognize that 
these goals cannot be met in the absence of viable State meat 
inspection programs that help to foster the participation of 
smaller establishments in the food production economy. 
Therefore, the Managers intend that when the Secretary of 
Agriculture submits the annual report to Congress on the 
activities of the Food Safety Inspection Service, the Secretary 
should include a full review of State inspection systems. This 
review should also offer guidance about changes the State 
systems might expect should the statutory prohibition against 
the interstate shipment of state inspected product be removed.
(66) Agricultural Research and Technology
      The Senate amendment authorizes such sums as necessary 
from 2002 through 2006 for (1) studies on the transmission of 
spongiform encephalopathy in deer, elk, and moose and chronic 
wasting disease with results to be reported to the Ag 
Committees; (2) a research and extension grants program to 
develop prevention and control methodologies for infectious 
animal diseases of livestock and laboratory tests to expedite 
detection of infected livestock and presence of disease in 
herds or flocks; (3) a vaccine storage study to determine how 
much vaccine is needed, how much is available, and directing 
the Secretary to take action to correct any identified 
shortfall; and (4) a program of veterinary training to retain 
sufficient capacity of State and Federal vets in all regions 
well-trained in recognition and diagnosis of exotic and endemic 
animal diseases. (Sec. 1078)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to provide additional discretion to the 
Secretary with regard to implementation of the program and 
authorize the program through 2007. The research and extension 
grant program for livestock production is deleted. A new 
research and extension grant program for livestock production 
is established within the High Priority Research and Extension 
grants program [See Sec. 7208]. (Sec. 10907)
(67) Office of Science Technology Policy
      The Senate amendment authorizes the President to 
establish an SES position in the Office of Science and 
Technology Policy for a Veterinary Advisor. (Sec. 1079)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
      The U.S. Department of Agriculture holds primary 
responsibility for preventing,monitoring and responding to 
outbreaks of diseases that affect livestock and other animals used for 
agricultural purposes. Recent experiences in Europe with Bovine 
Spongiform Encephalopathy and with Foot and Mouth Disease, however, 
demonstrate that the technical expertise of other federal agencies will 
also be required if a similar outbreak ever erupts in the United 
States.
      The Managers are aware of successful efforts by the White 
House Office of Science and Technology Policy (OSTP) to pull 
together and draw upon the scientific and technical expertise 
of experts from across the federal government to evaluate 
solutions to emerging problems. When these or similar problems 
arise, the Managers expect that OSTP will draw heavily upon the 
expertise of veterinarians to provide similar leadership to 
facilitate multi-agency efforts to prevent, detect, and respond 
to outbreaks of animal diseases.
(68) Operation of Agricultural and Natural Resource Programs on Tribal 
        Lands
      The Senate amendment requires the Secretary of 
Agriculture with consultation of the Secretary of the Interior, 
to conduct a review on tribal and trust land. The review will 
address natural resource management programs, incentive 
programs and farm income support programs. The report will 
contain a plan to carry out actions found in this section and 
shall be submitted to Congress not later than 1 year after the 
date of enactment of this Act. (Sec 1079A)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate language with 
an amendment to include a report in consultation with the 
Secretary of the Interior and clarify that the report will 
apply to commodity supports, natural resource, credit and 
forestry programs. (Sec. 10910)
(69) Geographically Disadvantaged Farmers
      The Senate amendment, Subsection (a), (1) provides a 
definition of eligible entity, which includes community-based 
organizations with experience in serving geographically 
disadvantaged farmers, land-grant colleges, and national tribal 
organizations that have experience in serving geographically 
disadvantaged farmers; (2) defines geographically disadvantaged 
farmer as one in an insular area (as defined in 7 U.S.C. 3103); 
(3) requires the Secretary to carry out an assistance program 
to encourage and assist geographically disadvantaged farmers in 
owning and operating farms and participating equitably in USDA 
programs; (4) provides Secretary authority to make grants and 
enter into contracts with eligible entities to provide 
information and technical assistance; and (5) authorizes 
$10,000,000 each year to carry out the program. (Sec. 1079B)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate language with 
an amendment to require a report describing how to improve 
geographically disadvantaged farmers' participation in USDA 
programs. (Sec. 10906)
(70) Naming Ginseng
      The Senate amendment expresses the Sense of the Senate 
that the Commissioner of FDA should promulgate regulations to 
ensure that the name ``ginseng'' or any name that includes the 
word ``ginseng'' shall be used in reference to an herb or 
herbal ingredient that is part of the plant of one of the 
species of the genus Panax and is produced in compliance with 
U.S. law regarding the use of pesticides. (Sec. 1079C)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that the term ``ginseng'' may not be 
considered to be a common or usual name for any herb or herbal 
ingredient not derived from a plant classified within the genus 
Panax, including with respect to importation under section 801 
of the Federal Food, Drug, and Cosmetic Act. (Sec. 10806)
(71) Adjusted Gross Revenue Insurance Pilot Program
      The Senate Amendment amends Section 523 of the Federal 
Crop Insurance Act to require the Federal Crop Insurance 
Corporation to expand for the 2003 reinsurance year the 
Adjusted Gross Revenue Insurance Pilot Program into at least 8 
counties in the State that produces the highest quantity of 
specialty crops for which adjusted gross revenue insurance is 
not available. The language requires the Corporation to include 
those counties that produce a significant quantity of specialty 
crops. (Sec. 1079D)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to expand the Adjusted Gross Revenue 
Insurance Pilot Program for the 2003 reinsurance year to at 
least 8 counties in the State of California and at least 8 
counties in the State of Pennsylvania. The substitute language 
requires the Corporation to work with the respective State 
Departments of Agriculture to establish criteria to determine 
which counties to include in the pilot program. (Sec. 10004)
(72) Report on Specialty Crop Insurance
      The Senate Amendment amends Section 522(e) of the Federal 
Crop Insurance Act to provide additional mandatory funding to 
reimbursements made available under research and development; 
amends Section 524(a)(4) of the Federal Crop Insurance Act to 
provide additional mandatory funding to education and 
information programs established under paragraph (2) of that 
section; provides that the Secretary of Agriculture shall 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutrition, 
and Forestry of the Senate a report that describes the progress 
made by the Corporation in research and development of 
innovative risk management products to include cost of 
production insurance that provides coverage for various crops, 
the progress made by the Corporation in increasing the use of 
risk management products offered through the Corporation by 
producers of specialty crops, by small- and moderate-sized 
farms, and in areas that are underserved, as determined by the 
Secretary, and how the additional funding provided under the 
amendments made by the section has been used. (Sec. 169(h)(3))
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
pertaining only to the report with commensurate changes. The 
Senate language amending Section 522(e) and Section 524(a)(4) 
of the Federal Crop Insurance Act is deleted. (Sec. 10006)
      The Managers expect the Federal Crop Insurance 
Corporation to fully utilize contracting allocations for 
research and development of policies in underserved states 
under Section 522(e)(2)(B) of the Federal Crop Insurance Act.
      The Managers urge the Federal Crop Insurance Corporation 
to consider expanding its contract for research and development 
of a cost of production policy in order to cover as many 
commodities as is practicable. The Managers recognize the 
attraction of the cost of production plan currently under 
development and recommend that the current list of 12 crops be 
expanded over the next several years to include but not be 
limited to: alfalfa, apples, asparagus, avocados, bananas, 
barley, beans, beets, blueberries, boysenberries, broccoli, 
cabbage, canola, cantaloupes, carrots, cauliflower, celery, 
cherries, chicory, Christmas trees, coffee, cucumbers, dry 
beans, eggplant, escarole, flaxseed, floriculture, forest 
products, garlic, grain sorghum, grapefruit, grapes, guava, 
guar, grass seed, greenhouse and nursery agricultural 
commodities, hay, herbs, honeydew melons, lemons, lettuce, lima 
beans, limes, loganberries, maple, mango, mushrooms, mustard 
greens, okra, olives, oranges, papaya, peanuts, peas, pears, 
pecans, peppers, plums, pineapple, pistachios, potatoes, 
prunes, pumpkins, raspberries, rye, safflower, spinach, squash, 
strawberries, sugar beets, sunflower, sweet corn, sweet 
potatoes, tangerines, tangelos, tobacco, tomatoes, walnuts, and 
watermelons.
      The Managers recognize that there are several types of 
innovative insurance plans, such as whole farm revenue 
insurance, which have the potential to help farmers better 
manage the risks associated with agricultural production. 
Whether whole farm revenue insurance, commodity-specific cost 
of production plans, or other innovative approaches, the 
Managers encourage the development of actuarially sound 
policies that do not distort markets and that keep moral hazard 
and adverse selection problems to a minimum.
(73) Pasteurization
      The Senate amendment provides a common definition of 
pasteurization for ``any provision of federal law under which a 
food or food product is required to undergo a treatment of 
pasteurization'' which means ``any safe treatment that--
      (1) Is a treatment prescribed as pasteurization 
applicable to the food or food product under any Federal law 
(including regulation); or
      (2) Has been determined to the satisfaction of the 
Secretary of HHS to achieve a level of reduction in the food or 
food product of the microorganisms of public health concern 
that--
      (A) Is at least as protective of the public health as a 
treatment described in paragraph (1); and
      (B) Is effective for a period that is at least as long as 
the shelf life of the food or food product when stored under 
normal, moderate, and severe abuse conditions''. (Sec. 1079E)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment that clarifies the Food and Drug 
Administration approval process for claims of pasteurization. 
FDA is directed to revise as appropriate its existing 
regulation covering the labeling of foods. Pending the 
completion of such a review, such authorization is provided for 
any person to seek FDA approval of an irradiation-labeling 
claim. (Sec. 10808)
      The Managers have included a provision to require the 
Secretary of Health and Human Services to complete a rulemaking 
to review current Food and Drug Administration requirements for 
the labeling of irradiated foods. Since 1997, Congress has 
repeatedly urged the performance of such a review to ensure 
that any required disclosure statement in the labeling of 
irradiated foods should ``be of a type and character such that 
it would not be perceived to be a warning or give rise to 
inappropriate consumer anxiety.'' House Conference Report No. 
105-399, U.S. Code Congr. & Admin. News 1997, pp. 2,888-89. 
Pending completion of the rulemaking required by this 
provision, any person may petition the Secretary regarding the 
adequacy of proposed labeling for a particular irradiated food 
so that the person may receive from the Secretary a 
determination as to whether labeling inconsistent with current 
regulatory requirements is truthful and non-misleading and, 
therefore, permissible. If such petition is neither approved 
nor denied within 180 days of receipt (unless the petitioner 
and the Secretary mutually agree to extend this time frame), 
the petition will be deemed denied and the denial will 
constitute final agency action subject to judicial review.
      The Managers have included a provision to facilitate the 
use of effective food safety technologies. Specifically, an 
amendment to Section 403 of the Federal Food, Drug, and 
Cosmetic Act is included to recognize that the term 
``pasteurization'' or ``pasteurized'' may be uniformly used to 
advise consumers that a treatment or process, including a 
series of treatments or controls, may be used if it achieves 
the same food safety effect as currently recognized 
pasteurization methods. The intent of this provision is to make 
explicit that the term ``pasteurization'' is available to 
describe a food safety effect, regardless of the technology or 
process employed to achieve that result. Currently, regulations 
regarding milk and egg products recognize that technologies 
other than thermal treatment may achieve a food safety effect 
equivalent to pasteurization and, therefore, employ the term in 
product labeling. This provision provides for FDA to receive 
pre-market notification of the basis for use of this provision. 
Enactment of this provision should not be construed as a basis 
for regulatory action against any products that have borne the 
term ``pasteurization'' in a truthful and non-misleading manner 
prior to enactment of the provision or bear the term 
``pasteurization'' under other authority. Further, nothing in 
this provision mandates that products not required to be 
labeled, as ``pasteurized'' presently is required to be labeled 
as ``pasteurized'' solely for the fact that they could be 
labeled as ``pasteurized'' under this provision.
      The Managers encourage the Secretary in consultation with 
the Secretary of Health and Human Services, to pursue a 
comparable pasteurization labeling program for meat and poultry 
products. Such labeling could allow use of the term 
pasteurization for meat and poultry products treated by similar 
processing technologies such as irradiation.
(74) Report on Pouched and Canned Salmon
      The Senate amendment requires the Secretary not later 
than 120 days after enactment to submit to Congress a report on 
efforts to expand the promotion, marketing, and purchasing of 
pouched and canned salmon harvested and processed in the U.S. 
under food and nutrition programs administered by the 
Secretary. (Sec. 1081)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to increase the required amount of time for 
the report to be completed from 120 to 180 days. (Sec. 10902)
(75) Tobacco Settlement Agreement Report
      The Senate amendment requires the Comptroller General of 
the U.S. to submit to Congress not later than December 31, 2002 
and annually thereafter through 2006, areport that describes 
all programs and activities that States have carried out using funds 
received under all phases of the Master Settlement Agreement of 1997. 
(Sec. 1082)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision. 
(Sec. 10908)
(76) Report on GM Pest Protected Plants
      The Senate amendment requires the Secretary to report to 
the House and Senate Agriculture Committees within 90 days of 
enactment on the actions taken by USDA to implement 
recommendations made by the Committee on Genetically Modified 
Pest-Protected Plants of the Board on Agriculture and Natural 
Resources of the National Research Council in 2000 regarding 
food safety, ecological research, and monitoring needs for 
transgenic crops with plant incorporated protectants; and 
regarding enhancements to certain operational aspects of the 
regulatory framework for agricultural biotechnology, including 
improving coordination and enhanced consistency of review 
across regulatory agencies and clarifying the regulatory 
jurisdiction of APHIS. (Sec. 1083)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment accepting the Sense of the Congress provision 
of Senate Sec. 1083 and dropping remaining provisions. (Sec. 
7410)
(77) Study of Creation of Litter Bank by University of Arkansas
      The Senate amendment directs the Secretary to conduct a 
study to evaluate the creation of a litter bank by USDA at the 
University of Arkansas for the purpose of enhancing health and 
viability of watersheds in areas with large concentrations of 
animal producing units and report the results of the study to 
Congress. (Sec. 1084)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment changing the reference from ``litter bank'' 
to ``nutrient banking,'' deleting any reference to a particular 
institution, and providing the Secretary with discretion to 
carry out a study under this section. (Sec. 7411)
(78) Study of Feasibility of Producer Indemnification From Government-
        Caused Disasters
      The Senate Amendment requires the Secretary of 
Agriculture to conduct a study of the feasibility of expanding 
eligibility for crop insurance under the Federal Crop Insurance 
Act and noninsured crop assistance under section 196 of the 
Federal Agriculture Improvement and Reform Act of 1996 to 
agricultural producers experiencing disaster conditions caused 
primarily by Federal agency action. (Sec. 1085)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to clarify that the feasibility study shall 
focus on disaster conditions caused by Federal agency action 
restricting access to irrigation water, including any lack of 
access to an adequate supply of water caused by failure by the 
Secretary of the Interior to fulfill a contract in accordance 
with the Central Valley Project Improvement Act. (Sec. 10108)
      The Managers expect the study to include losses to 
farmers due to regulatory actions or inactions, which result in 
failure to meet water delivery targets as specified under the 
Calfed Record of Decision for agriculture service contractors 
who receive water from the Central Valley Project.
(79) Report on the Sale and Use of Pesticides for Agricultural Uses
      The Senate amendment directs the Administrator to submit 
to Congress a report on the manner in which the Agency is 
applying regulations of the Agency governing the sale and use 
of pesticides for agricultural use to electronic transactions. 
(Sec. 1086)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to increase the required amount of time for 
the report to be completed from 120 to 180 days. (Sec. 10909)
(80) Report on Birds, Rats and Mice
      The Senate amendment requires a GAO report on the 
implications of including birds, rats, and mice in the 
definition of ``animal'' under USDA's regulations under the 
Animal Welfare Act. (Sec. 1087)
      The House bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment for the National Research Council to submit 
this report to Congress. The report shall be completed with 
input from the Secretary of Agriculture, the Secretary of 
Health and Human Services and the Institute for Animal 
Laboratory Research. It shall contain an estimate of the number 
and types of entities that use rats, mice and birds for 
research purposes, and a description of the regulations to 
which these are subjected. It shall also contain an estimate of 
the rats, mice and birds used in research facilities and an 
indication of which of those facilities are currently under 
federal regulation. Further, the report shall include an 
estimate of the additional costs likely to be incurred by 
researchers resulting from additional regulations, 
recommendations for minimizing such costs, an estimate of the 
additional funding APHIS would require to ensure compliance, 
and recommendations for minimizing the regulatory burden on 
facilities already subject to federal regulations. (Sec. 10304)
(81) Task Force on National Institutes for Plant and Animal Sciences
      The Senate amendment requires the Secretary not later 
than 90 days after enactment to establish a task force of 8 
members (6 of them private or academic sector) to study review 
and evaluate publicly funded agricultural research activities 
and consider the merits of establishing 1 or more National 
Institutes for Plant and Agricultural Sciences similar to NIH. 
(Sec. 1088)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(82) Organic Products Promotion
      The Senate Amendment authorizes the establishment of a 
new organic research and promotion check off program, which 
must be proposed and approved by a majority of certified 
organic producers and handlers. This provision is designed to 
facilitate the establishment of one order covering a category 
of products (organic products) rather thanindividual 
commodities, requires that the composition of the check off board must 
reflect both regional distribution and differing scales of organic 
production, and requires the Secretary to conduct a referendum on 
whether the order should continue at least once every four years. 
Assessments under an order established under this provision would be 
voluntary (at the option of individual farmers). To avoid having 
farmers paying more than one check off assessment, the provision 
provides that producers choosing to contribute to the organic order 
would be entitled to a credit against assessments under another order. 
(Sec. 1091-1098G)
      The House Bill contains no comparable provision.
      The Conference substitute adopts the Senate provision 
with an amendment to allow a person that produces and markets 
only 100% organic products and does not produce any 
conventional or non-organic products, to be exempt from the 
payment of an assessment under a commodity promotion law with 
respect to any agricultural commodity that is produced on a 
certified organic farm. The Secretary shall promulgate 
regulations, not later than one year after the date of 
enactment of this Act, regarding eligibility and compliance for 
such an exemption. (Sec. 10607)
(83) Effect of Amendments
      The Senate amendment provides that amendments made by the 
Act do not affect Secretarial authority to carry out current 
price support or production adjustment programs as in effect 
before the date of enactment. (Sec. 1099A)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate amendment.
(84) CCC Funding
      The Senate amendment specifies that notwithstanding any 
other provision of the bill, any funds made available under the 
bill will be made available through the Commodity Credit 
Corporation. (Sec. 1099B)
      The House bill contains no comparable provision.
      The Conference substitute deletes the Senate provision.
(85) Implementation Funding and Information Management
      The Conference Substitute provides $55 million for 
administrative costs associated with the implementation of 
Title I. Of that amount, not less than $5 million nor more than 
$8 million is to be available for the development of a 
comprehensive information management system for programs 
operated by the Farm Service Agency and the Federal Crop 
Insurance Corporation. The Conference Substitute requires that 
the Secretary enter into agreements or contracts with outside 
entities to development information management system. The 
Conference Substitute also provides that the new requirements 
shall not interfere with or delay existing agreements or 
requests for proposals of the agencies regarding data mining or 
data warehousing. Such sums as may be necessary are authorized 
to be appropriated for each of fiscal years 2003 through 2008. 
(Sec. 10706)
      The Managers continue to be concerned about the lack of 
information sharing and progress toward a common information 
management system for the service agencies of the Department. 
The Managers believe that integrating information management 
systems at USDA will reduce the waste associated with the 
maintenance of duplicative systems and allow the agencies to 
operate more effectively and efficiently to the benefit of 
agricultural producers.
      In the Agricultural Risk Protection Act of 2000 (ARPA), 
the Farm Service Agency (FSA) and the Federal Crop Insurance 
Corporation (Corporation) were required to reconcile producer 
information. FSA and the Corporation serve the same producers 
with commodity and crop insurance programs, respectively; it is 
logical that both agencies should use a common information 
management system so that the collection of data is not 
duplicated, the integrity of the data collected is improved 
and, most importantly, customer service to producers is 
enhanced. The Managers believe that the development of a common 
information management system for FSA and the Corporation will 
demonstrate substantial efficiencies and serve as a first step 
toward broader, Department-wide integration. Valuable 
groundwork will be laid for further modernization of 
information technology systems of USDA agencies in the future, 
and for the incorporation of those systems into that developed 
for FSA and the Corporation.
      The Managers commend the work being done at the Center 
for Agribusiness Excellence at Tarleton State University in 
cooperation with the Corporation on crop insurance compliance 
as directed by ARPA. It is the expectation of the Managers that 
the Secretary of Agriculture will build upon the work currently 
being conducted at the Center for Agribusiness Excellence and 
through further contracting with the Center to develop the 
information management system for FSA and the Corporation.
      The Managers intend for funds provided to the Farm 
Service Agency under this Section to be used for salaries and 
expenses of county office personnel in implementing this Act.

                From the Committee on Agriculture, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Larry Combest,
                                   Bob Goodlatte,
                                   Richard Pombo,
                                   Terry Everett,
                                   Frank D. Lucas,
                                   Saxby Chambliss,
                                   Jerry Moran,
                                   Charles W. Stenholm,
                                   Gary Condit,
                                   Collin C. Peterson,
                                   Eva M. Clayton,
                                   Tim Holden,
                As additional conferees from the Committee on 
                the Budget, for consideration of sec. 197 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Jim Nussle,
                From the Committee on Education and the 
                Workforce, for consideration of secs. 453-5, 
                457-9, 460-1, and 464 of the Senate amendment, 
                and modifications committed to conference:
                                   Michael N. Castle,
                                   Tom Osborne,
                                   Dale E. Kildee,
                From the Committee on Energy and Commerce, for 
                consideration of secs. 213, 605, 627, 648, 652, 
                902, 1041, and 1079E of the Senate amendment, 
                and modifications committed to conference:
                                   Billy Tauzin,
                                   Joe Barton,
                                   John D. Dingell,
                From the Committee on Financial Services, for 
                consideration of secs. 335 and 601 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Michael G. Oxley,
                                   Spencer Bachus,
                                   John J. LaFalce
                                           (except for sec. 335),
                From the Committee on International Relations, 
                for consideration of title III of the House 
                bill and title III of the Senate amendment, and 
                modifications committed to conference:
                                   Henry Hyde,
                                   Christopher Smith,
                                   Tom Lantos,
                From the Committee on the Judiciary, for 
                consideration of secs. 940-1 of the House bill 
                and secs. 602, 1028-9, 1033-5, 1046, 1049, 
                1052-3, 1058, 1068-9, 1070-1, 1098, and 1098A 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Mark Green,
                From the Committee on Resources, for 
                consideration of secs. 201, 203, 211, 213, 215-
                7, 262, 721, 786, 806, 810, 817-8, 1069, 1070, 
                and 1076 of the Senate amendment, and 
                modifications committed to conference:
                                   James V. Hansen,
                                   Don Young,
                From the Committee on Science, for 
                consideration of secs. 808, 811, 902-3, and 
                1079 of the Senate amendment, and modifications 
                committed to conference:
                                   Sherwood Boehlert,
                                   Roscoe G. Bartlett,
                                   Ralph M. Hall,
                From the Committee on Ways and Means, for 
                consideration of secs. 127 and 146 of the House 
                bill and sections 144, 1024, 1038, and 1070 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Charles B. Rangel,
                                 Managers on the Part of the House.

                                   Tom Harkin,
                                   Patrick Leahy,
                                   Kent Conrad,
                                   Tom Daschle,
                                   Thad Cochran,
                                Managers on the Part of the Senate.

                                
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