[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.